Bankruptcy

Written by Risto


Forrepparttar average person that is suffering through mounds of debt, filing for bankruptcy isrepparttar 112241 only apparent way out. It seems likerepparttar 112242 easiest way to handlerepparttar 112243 load. The fact ofrepparttar 112244 matter is, when a person files for bankruptcy, they have announced to most creditors that they cannot afford to be leant any credit. A bankruptcy stays on your credit report actively for up to six months, but remains on your file forever. That means that you have permanently lowered your chances to buy a new home, or a new car, and many other purchases that require a payment plan,

Credit Damage: Getting Compensated for Your Loss

Written by Georg Finder


Until recently lawyers for victims of credit damage had little possibility to collect for damages beyond medical treatment, lost wages and property loss. Insurance companies threw up their hands in sympathy, claiming victims can only be compensated for what can be measured — tangible goods and services. But, what happens whenrepparttar victim has lost considerable time from work,repparttar 112240 family bank is broke and monthly payments on mortgages, car loans and credit cards payments are missed? Regardless ofrepparttar 112241 haggling between lawyers and insurance companies, it’srepparttar 112242 credit victim who ends up having to live with a bad credit rating.

Today, there are legally accepted means for measuring loss of credit throughrepparttar 112243 procedure of Credit Damage Measurement (CDM). CDM is fast becoming a potent tool for recoverable credit damage awards whenrepparttar 112244 damage is not self-inflicted. Previously, both judge and jury, and especiallyrepparttar 112245 insurance companies, refused to acknowledge CDM claiming it was speculative because they could not define it as tangible damage. However, in case after case, victims of credit damage who userepparttar 112246 CDM method are getting compensation for credit loss. Many factors are changingrepparttar 112247 old mindset including credit bureau technology improvements,repparttar 112248 application ofrepparttar 112249 Fair Credit Reporting Act (FCRA), risk scoring sophistication, andrepparttar 112250 development of CDM as an objective, repeatable method that measures out-of-pocket damage reliably.

Credit Ratings and Recovery

The impact of a bad credit rating is much more significant than most people think. Consider what poorly rated consumers face when they want to lease or buy vehicles, obtain credit cards, buy or lease or refinance their residence. In most cases, it’s an easy decision forrepparttar 112251 creditor:repparttar 112252 credit application is simply turned down orrepparttar 112253 borrower is charged a much higher down payment – maybe thousands of dollars more with monthly payments that are typically several hundred dollars more.

“A person with bad credit is viewed with suspicion and is charged significantly more for future extension of credit becauserepparttar 112254 lender feelsrepparttar 112255 need to protect against a greater risk or default,” says Tom Key, a civil litigator practicing in Tustin, CA.

“Overrepparttar 112256 years I have heard reports of financial damages from clients who have been wrongfully terminated, defrauded, injured in an accident or suffered losses from breach of contract,” Key says. “These victims were especially distraught overrepparttar 112257 fact that their prime credit reputation, carefully nurtured for years, is destroyed overnight. It seemed to me that there must be a way to compensate victims for that type of loss.”

Key has witnessedrepparttar 112258 reactions of many jurors who failed to award a victim of credit damage their rightful compensation simply because they could not quantifyrepparttar 112259 damages. “Jurors want a specific loss that they can count, hold and see,” says Key. “Their reasoning is that they need to know that it is genuine. They have a tough time awarding damages based on sympathy. In order for them to confirm authenticity of a claim, they want to see its quantification.”

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