Durham Bankruptcy Law Blog

3 ways to prevent an account out of collections

On behalf of Wootton & Wootton, P.C. on Wednesday, September 19, 2018.

Most people pay a bill late or fall behind on monthly expenses from time to time. It is not unusual, but when it happens habitually, it can be seriously detrimental to your credit and finances. This is especially true if the account goes into collections. If you go long enough without making a payment on an account that has a balance, the account will eventually be sold to a collections agency.

A collections agency typically buys delinquent accounts for less than their initial value and attempts to collect payment from debtors. When an account goes into collections, it can be detrimental to your credit and trigger aggressive collection tactics. The following are three ways to avoid this:

Is your home at risk of foreclosure?

On behalf of Wootton & Wootton, P.C. on Tuesday, August 21, 2018.

Although there is a lot of talk about the economic crisis and the recession being over, many people still face significant debt and financial trouble. If you are unable to make your mortgage payments, you may worry that the bank will foreclose on your home.

It is critical that you understand the risk of foreclosure and ways you may be able to avoid it. The following information can help you assess your risk and determine your next steps if you fear that a home foreclosure may be in your future.

3 ways to avoid excessive student debt

On behalf of Wootton & Wootton, P.C. on Monday, July 23, 2018.

Student debt is one of the biggest financial problems facing millennials. Young people are not the only ones dealing with the burden, though. People of all ages have been saddled with tens of thousands of dollars in debt, and the solution is often not immediately clear. According to USA Today, the average North Carolina college graduate will have $25,849 in student loan debt upon completion of a degree.

If you are a student, here are some tips for minimizing the amount of loans and debt you must take on to graduate.

How to recognize debt settlement scams

On behalf of Wootton & Wootton, P.C. on Thursday, June 21, 2018.

If you, like many people across North Carolina, are finding it hard to dig your way out of ever-growing debt, you may be considering different debt relief methods while trying to determine what option might be best for you. You may have heard about debt settlement companies, which typically lure you in with promises of paying off your debts while collecting only a portion of what you owe to your creditors.

If the offers these for-profit companies make to help you settle your debt sound too good to be true, however, they may well be, and regrettably, debt settlement scams are not at all uncommon. Sometimes, these companies prey on the fact that you may be feeling helpless when it comes to your finances, and they may utilize aggressive tactics to get you to sign on. They may, too, tell you to stop paying your credit card and other bills immediately, but this is not always a good idea and can end up coming back to bite you. Furthermore, just because a debt settlement company tells you they can settle your debt for a certain percentage of what you owe, your credit card company has no obligation to accept the proposed settlement amount. So, what are some signs of potential debt settlement scams?

3 steps to take if you are behind on your credit card payments

On behalf of Wootton & Wootton, P.C. on Wednesday, May 23, 2018.

It is scary when you are unable to make even the minimum payments on your credit card bills. If you are a few months late on multiple payments, you may be panicking. You may not think you will ever be able to catch up.

However, you do not need to give into the fear. There are various actions you may be able to take to address your credit card debt. Here are some steps you may want to consider if you are falling behind on your credit card payments.

The zombie outbreak in North Carolina – zombie homes, that is

On behalf of Wootton & Wootton, P.C. posted in blog on Tuesday, April 24, 2018.

It has been several years since the worst of the foreclosure crisis affected North Carolina, but residents are still facing foreclosure. In some cases, banks that own vacated homes across the state have yet to finish the foreclosure process. When a homeowner abandons a house with an imminent foreclosure, yet the bank fails to repossess it, this is known as a zombie foreclosure. A zombie home might not only cause problems for you years down the road, but can threaten the property values of the surrounding neighborhood.

In years past, North Carolina was among the top 10 states for having zombie foreclosures. Things are looking better in the state now, although Property Wire notes that foreclosures went back up by 4 percent in the first few months of 2018. You may be interested to learn that currently, foreclosures in North Carolina reportedly hover above the average of the months preceding the recession.

Top bankruptcy mistakes to avoid

On behalf of Wootton & Wootton, P.C. posted in blog on Tuesday, March 27, 2018.

Filing for bankruptcy can alleviate a great deal of the financial stress you feel. However, if you want to fully reap the benefits, you may want to watch out for some common mistakes many people make in this process.

Both Chapter 7 and Chapter 13 petitions have advantages as well as potential pitfalls. While this overview can help you understand some issues that often come up, speaking with an experienced attorney is the best way to get a full picture of your own situation.

What to do if you fall behind on your car loan

On behalf of Wootton & Wootton, P.C. posted in blog on Wednesday, February 21, 2018.

If you are like most people, having a reliable form of transportation is as crucial as shelter and food. You need your car to get to school or work or both. Without a vehicle, it would be hard for you to make a living and get around. When you get in trouble with your auto loan, you may fear losing your car.

Fortunately, you have options if you start falling behind on your car payments. Here are some tips for getting back on track and avoiding involuntary repossession.

5 ways to get rid of credit card debt

On behalf of Wootton & Wootton, P.C. posted in blog on Monday, January 22, 2018.

Many people in Durham struggle to pay their credit card debts. Some of them are not sure how they can afford the minimum payments and continue to use them. If you rely on your credit cards to help pay your monthly living expenses, you could end up digging a financial hole for yourself. Though credit cards can help you pay for things when you are low on cash, you should not rely on them if you cannot afford to pay them off within a few months.

If your credit card debt is causing you to lose sleep at night, and you are having trouble paying it off, it might be time for you to change tactics and develop a better repayment strategy. Here are some ways to make your credit card bills more manageable.

3 ways to delay student loan payments

On behalf of Wootton & Wootton, P.C. posted in blog on Tuesday, December 26, 2017.

Young people are often told that a college degree is the only way to get a good job, and getting a good job is the only way to succeed in life. With stakes this high, it is no surprise that many students take on massive loans without thinking twice. Unfortunately, the reality of such debt often becomes clear when it comes time to start making payments. The monthly bill is often simply too high to handle.

According to The Institute for College Access and Success, the average student debt amounts to $23,450. If you are dealing with student loans and struggling to pay the bills, you may be looking for ways to delay payments. There are several options available, and these are three of the most common.

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