Solving Money Problems

Transcription

1 Solving Money Problems 14 th Edition Robin Leonard, J.D. Attorney Margaret Reiter

2 Chapter 1 How Much Do You Owe?... 1 Learning Objectives... 1 Introduction... 1 How Much Do You Earn?... 2 How Much Do You Owe?... 2 Review Questions... 4 Review Answers... 5 Chapter 2 If You re Married, Divorced, or Separated... 6 Learning Objectives... 6 Introduction... 6 Community Property States... 7 Who Owes What Debts?... 7 Who Owns What Property?... 8 What Property Is Liable for Payment of Debts?... 9 Separate Property... 9 Community Property... 9 Common Law States Who Owes What Debts? Who Owns What Property? What Property Is Liable for Debts? Review Questions Review Answers Chapter 3 Debts You May Not Owe Learning Objectives Introduction You Are the Victim of Misrepresentation or Other Fraud The Seller Breached a Warranty Your Car Is a Lemon Home Mortgage Contracts You Canceled a Contract Contracts Not Made at Usual Business Location Private Student Loan Contracts Home Equity Loan Contracts Contracts for Credit Repair Services Contracts You Can Cancel Under State Law Other Grounds to Cancel a Contract Canceling Mail, Phone, or Online Orders How to Cancel a Contract You Received Goods You Didn t Order Canceling Automatic Deduction Payments Review Questions Review Answers Chapter 4 Prioritizing Your Debts Learning Objectives Introduction Secured and Unsecured Debts Secured Debts Unsecured Debts High-Priority Debts Medium-Priority Debts... 33

3 Low-Priority Debts Review Your Worksheets Review Questions Review Answers Chapter 5 Finding Money to Pay Your Debts Learning Objectives Introduction Cut Your Expenses Cutting Expenses That You Don t Need Reducing Other Expenses Increase Your Income Get Some of Your Tax Refund Early Get Your Tax Refund Fast Sell a Major Asset Sell Smaller Items Withdraw Money From a Tax-Deferred Account Apply for Government and Agency Help Earned Income Tax Credit Unemployment Insurance Benefits Health Insurance Benefits Human Service Agencies Other Free or Subsidized Government Services Private Agencies Consider a Home Equity Loan Use the Equity in Your Home If You Are 62 or Older Reverse Mortgages Deferral Payment Loans Borrow the Money What to Avoid When You Need Money Avoid Consolidation Loans Avoid Tax Refund Anticipation Checks or Loans Avoid Pawnshops Avoid Car Title Loans Avoid Payday Loans Avoid Bank and Credit Union Prepaid Cards With Advances Avoid Easy Solutions to Debt Problems Review Questions Review Answers Chapter 6 Negotiating With Your Creditors Learning Objectives Introduction Prepare a Negotiating Plan Communicate With Your Creditors Tips for Negotiating With Creditors Rent Payments Mortgage Payments Utility and Telephone Bills Car Payments Purchase Payments Lease Payments Secured Loan Payments Insurance Payments Medical, Legal, and Other Service Bills Child Support and Alimony Payments... 74

4 Income Taxes Student Loan Payments Credit Card Payments If You Want to Keep Your Credit Card If You Want to Settle the Debt or Get Rid of the Card Charge Card Payments Reducing Your Minimum Payments Getting Help Negotiating When the Creditor Has a Judgment Against You Pay Off a Debt for Less Than the Full Amount Don t Write Postdated Checks Beware of the IRS If You Settle a Debt Review Questions Review Answers Chapter 7 What to Expect When You Can t Pay Your Debts Learning Objectives Introduction Eviction Repossession What Constitutes a Default? When You Have Defaulted Can You Get Your Property Back? Will You Still Owe the Lender? Deficiency Balances Tying Up Property Before a Lawsuit Prejudgment Attachment Lis Pendens Lawsuits Lawsuits Against Third Parties Who Hold Your Assets Liens on Your Property Jail Bank Setoff Intercepting Your Tax Refund Loss of Insurance Coverage Loss of Utility Service Review Questions Review Answers Chapter 8 Reducing Mortgage Payments and Dealing With Foreclosure Learning Objectives Introduction Foreclosure The Difference Between Judicial and Nonjudicial Foreclosure Loan Servicers Nonjudicial Foreclosure Judicial Foreclosures Right to Cure Default Right of Redemption The Sale Defenses to Foreclosure Watch Out for Deficiency Balances Alternatives to Foreclosure Barriers to Negotiation Tips for Negotiating With Lenders Short-Term Informal Payment Plans Federal Programs for Homeowners Facing Possible Foreclosure

5 Home Affordable Unemployment Program Home Affordable Refinance Program Home Affordable Modification Program Second Lien Modification Program Mortgage Workouts Refinancing Selling Your House Short Sales and Deeds in Lieu of Foreclosure Short Sales HAFA Short Sale Program Deed in Lieu of Foreclosure HAFA Deed in Lieu of Foreclosure Program Other Programs to Help Homeowners Review Questions Review Answers Chapter 9 Dealing With Debt Collectors Learning Objectives Introduction Creditor or Debt Collector? Negotiating Secured Debts Before Your Debt Is Sent to a Debt Collector When Your Debt Is Sent to a Debt Collector What to Expect How Debt Collectors Find You Collection Efforts Must Stop While You Verify Debt Asking the Creditor to Take Back the Debt How to Get a Debt Collector to Leave You Alone How to Handle Time-Barred or Zombie Debts Negotiating Unsecured Debts Can a Lawyer Help You Negotiate? When Collection Turns Into a Lawsuit Illegal Debt Collection Practices Federal Law State or Local Laws Prohibiting Unfair Debt Collections How to Fight Back If a Debt Collector Violates the Law Using Right to Verification Violations as a Bargaining Chip Bringing a Lawsuit Gathering Proof Review Questions Review Answers Chapter 10 Choosing and Managing Credit Cards Learning Objectives Introduction Avoiding Credit Card Traps Consumer Credit Card Rights Use Credit Card Disclosure Forms to Identify Traps Avoid Over-Limit Fees Limits on Penalty Fees Watch Out for Multiple Interest Rates High Cash Advance Interest Rates and Fees Introductory Teaser Interest Rate Offers Balance Computation Methods Beware of Balance Transfer Offers High Penalty Interest Rates

6 Avoid Deferred Interest Deals Annual and Other Fees No Grace Period The Minimum Payment Trap Trouble Paying Your Bill Should You Get Rid of Unnecessary Credit Cards? How to Close a Credit Card Account Shopping for a New Card Using Credit Cards Wisely Cards You Didn t Request Rejected and Blocked Cards Blocked Credit or Debit Cards Rejected Credit Cards Liability If Your Credit Card Is Lost or Stolen Unauthorized Use of Your Card by an Acquaintance To Dispute a Credit Card Bill Resolving Disputed Charges With the Credit Card Billing Error Process Resolving Disputed Charges With the Credit Card Claim or Defense Process Debit Cards Prepaid Cards Review Questions Review Answers Chapter 11 Understanding Loan and Other Credit Documents Learning Objectives Introduction Credit Disclosures Common Terms in Credit Agreements Acceleration Attorneys Fees Balloon Payment Confession of Judgment Cosigner or Guarantor Credit Insurance Mandatory Arbitration Prepayment Penalties Pyramiding Late Fees Right to Cancel Security Interest Wage Assignment Waivers of Exemptions Review Questions Review Answers Chapter 12 Student Loans Learning Objectives Introduction What Kind of Loan Do You Have? Federal Student Loans Private Loans State Loans Figuring Out Who Holds Your Student Loan Canceling Your Loan School Closure False Certification Unpaid Refunds

7 Permanent Disability Death Participation in a Volunteer Program, a Teaching Program, Military Service, or Another Public Service Postponing Payments Deferments Forbearances Changing Your Repayment Plan Repayment Plans Direct Loan Consolidation Getting Out of Default Filing for Bankruptcy When You Can t Pay Consequences of Ignoring Student Loan Debt Where to Go for Help Private Student Loans Review Questions Review Answers Chapter 13 Child Support and Alimony Learning Objectives Introduction How Child Support Is Determined Modifying the Amount of Child Support Legal Reasons That Justify a Support Change Step 1: Negotiate With Your Child s Other Parent Step 2: If Negotiations Fail, File Modification Papers When You Can Stop Paying Child Support If Paternity Is Disputed Enforcement of Child Support Obligations Your Income May Be Automatically Withheld Your Income Tax Refund Could Be Intercepted Liens May Be Placed on Your Real and Personal Property You May Be Required to Post a Bond or Assets to Guarantee Payment The Arrears May Be Reported to Credit Bureaus You May Be Publicly Humiliated You Might Be Denied a State License or U.S. Passport You Might Be Held in Contempt of Court and Jailed Your Wages May Be Garnished and Other Assets Seized The Arrears Might Be Sent to the State Enforcement Agency You Might Be Criminally Prosecuted Alimony Bankruptcy and Child Support or Alimony Debt Taxes, Child Support, and Alimony Review Questions Review Answers Chapter 14 If You Are Sued Learning Objectives Introduction How a Lawsuit Begins Should You Hire a Lawyer or Represent Yourself? Service of Court Papers Understanding the Complaint When Is Your Response Due? Should You Default? Negotiate

8 Lump Sum Settlement Settlement Involving Installment Payments If the Negotiations Hit a Sour Note Alternative Dispute Resolution Defenses and Claims Statute of Limitations Other Defenses Counterclaims What to Expect While the Case Is in Court Discovery Summary Judgment Settlement Conference Trial When the Creditor Gets a Judgment Against You Components of a Money Judgment How Long Judgments Last How Judgments Are Enforced Stopping Judgment Collection Efforts Review Questions Review Answers Chapter 15 Bankruptcy: The Ultimate Weapon Learning Objectives Introduction Chapter 7 Bankruptcy The Chapter 7 Bankruptcy Process Who Can File for Chapter 7 Bankruptcy Chapter 13 Bankruptcy The Chapter 13 Bankruptcy Process Who Is Eligible for Chapter 13 Bankruptcy? The Chapter 13 Plan The Automatic Stay Bankruptcy Exemptions Will Bankruptcy Solve Your Debt Problems? Which Debts Will Be Wiped Out Which Debts Will Remain What Only Chapter 13 Bankruptcy Can Do Getting Help With Bankruptcy Review Questions Review Answers Chapter 16 Property Creditors Can t Take Learning Objectives Introduction Property Subject to Collection Property You Own and Possess Property You Own but Don t Have on Hand Property You Have Recently Given Away Property You Are Entitled to But Don t Yet Possess Future Claims Property That Is Only Partially Exempt Your Share of Marital Property Types of Exemptions Is Your Property Exempt? List Your Property Value Your Property

9 Calculate Your Ownership Share List Liens Calculate Your Equity Determine What Property Is Exempt Claiming Exemptions Review Questions Review Answers Chapter 17 Rebuilding Your Credit Learning Objectives Introduction Avoid Overspending Figure Out Where Your Money Goes Make a Spending Plan Prevent Future Financial Problems Understand Credit Scores and Credit Reports What Is in Your Credit Report? Who Can See Your Credit Report The Three Cs Clean Up Your Credit Report Get Free Copies of Your Credit Report Regularly Additional Times You Can Get Free Credit Reports Review the Contents of Your Credit Report Dispute Incomplete or Inaccurate Information in Your Report How to Complain About a Credit Reporting Company Consider Adding a Brief Statement to Your Credit File Add Other Information to Your Report Add Positive Account Histories to Your Report Add Information Showing Stability to Your Report Your Credit Score How Credit Scores Are Calculated How to Get Your Credit Score Rebuilding Credit Without Getting New Credit Open Deposit Accounts Use Credit Cards Carefully Build Credit in Your Own Name Rebuilding Credit by Getting New Credit Get a Secured Credit Card Get an Unsecured Credit Card Work With Local Merchants Obtain a Credit Union or Bank Loan Avoid Credit Repair Organizations Review Questions Review Answers Chapter 18 Help Beyond This Book Learning Objectives Introduction Looking Up the Law State and Federal Laws Court Decisions Use Background Resources Online Legal Research Lawyers What Lawyers Can Do for You How to Find a Lawyer

10 What to Look for in a Lawyer How Much Lawyers Charge Debt and Credit Counseling Agencies Consumer Credit Counseling Service Shopping for a Credit or Debt Counseling Agency Finding Credit and Debt Counseling Agencies Through the U.S. Trustee Review Questions Review Answers Appendix A Where to Complain Appendix B Contact Information for Useful Agencies, Organizations, and Other Entities Appendix C Worksheets Glossary Index