Modesto Bankruptcy Lawyer Blog

A new lawsuit, filed in a California federal court seeking class action status, accuses credit score company Experian of falsely marketing its credit report and credit monitoring services.

The Red Tape Chronicles reports that California consumers are often being defrauded in their search for a credit report. The suit accuses Experian of intentionally confusing costumers through false advertising and failure to provide customers with the service they pay for. Experian operates the popular sites FreeCreditReport.com and FreeCreditScore.com.

"It's a classic consumer fraud case," said David Woodward, one of the lawyers who filed the case. "The law is designed to prohibit exactly this kind of egregious advertising practice. ... The defendant is profiting from deception."

A Modesto bankruptcy lawyer should be quick to inform you that many aspects can affect your credit score: credit cards, bad debt, medical bills, foreclosures. By law, you are allowed one free report from each credit report agency each year. As freecreditreport.com is not a bad service for those who are trying to rehab their credit, it is also not a necessary service.

Late payments have trashed the credit ratings of most consumers by the time they seek bankruptcy protection. In many cases, they may also have been preyed upon by credit counseling or debt management services. Consulting a bankruptcy attorney is the best course of action for getting your financial house in order.

Credit report companies, including TransUnion, Equifax and Experian, are producing credit scores with the formula from FICO. Those scores are then reported to lenders. The federal suit, filed against Experian, accuses the company of fraud because the Experian PLUS score is not the same score shown to lenders.

The Federal Foundation for Credit Counseling offers answers to some FAQ's about bankruptcy and debt:

-Can I be terminated from my job for filing for bankruptcy? The Bankruptcy Code typically prohibits termination, or discrimination, because an employee has not paid a discharged debt, filed a bankruptcy case or has been insolvent before the case was filed.

-Is professional credit counseling for me and worthwhile? If your credit is going down the tubes and you're looking to try and solve the problem, then professional credit counseling could be for you. Professional credit counselors can offer you knowledgeable advice on how to repair your credit. They can also provide you with help because they are familiar with what kinds of habits and patterns to look for in a suffering client. However, you may also expose yourself to predatory companies that charge high fees for "counseling services." And if your overall problem is an insurmountable level of debt, these agencies may not be able to help you get your financial house in order.

-Am I able to keep my credit cards after filing for bankruptcy? Typically no, unless you don't file bankruptcy on a given card. Then you may keep the card -- however the company may close the account anyway. Typically, clients are able to reestablish a good payment history through secured and non-secured credit cards within a few years.

-Will I need to hire an attorney to file for bankruptcy? While you are not required to be represented by an attorney, is it highly recommended as they can provide you with advice to help you understand your rights and the consequences of your bankruptcy case.

Continue reading "Credit Report Lawsuit Illustrates Risk of Predatory Services when Dealing with Bankruptcy in Modesto" »

Lenny "Nails" Dykstra, former Mets and Philadelphia Phillies outfielder, is accused by federal authorities of bankruptcy fraud after he allegedly removed items from his $18 million California home, without trustee consent. He is also facing charges of Grand Theft for allegedly buying vehicles through fraudulent means, according to Fox Business. He was arrested late last week.

Dykstra filed for bankruptcy back in 2009 and is accused of destroying and selling property, without consent from the bankruptcy trustee, that was part of his bankruptcy in California. The former baseball star bought his home from hockey star Wayne Gretzky for $18.5 million.

While bankruptcies can be filed without a lawyer, it is a federal court case and can be much more complicated than many realize. A Modesto bankruptcy lawyer can help make sure you stay on the right side of the law. As importantly, you will be unable to file bankruptcy for years after your case is disposed -- failing to include a creditor in a bankruptcy filing can also be devastating.

Dykstra was held on a $500,000 bail. The items he allegedly sold from his bankruptcy estate included various memorabilia and furniture. He's also accused of ripping out a $50,000 oven and cooktop after he filed for bankruptcy protection, according to the Las Angeles Times.

"The federal charges stem from a bankruptcy case that Dykstra filed on July 7, 2009," the statement said. "The criminal case filed in U.S. District Court alleges that Dykstra removed, destroyed and sold property that was part of the bankruptcy estate without the permission of the bankruptcy trustee.

Accusations are that Dykstra removed, without consent, more than $400,000 from the estate. If convicted of the charges filed by the Department of Justice, Dykstra could do up to five years in a federal prison.

Dealing with a less than reputable attorney or taking on the system alone can often make matters much worse. It is also important to be truthful about your situation, don't try to lie to the courts or falsely file for bankruptcy, which can result in additional legal problems.

Continue reading " Lenny "Nails" Dykstra Arrested and Charged with Grand Theft and Bankruptcy Fraud in California" »