The bankruptcy judge assigned to the Detroit bankruptcy questioned the secrecy surrounding a database containing financial information about the city. Judge Steven Rhodes asked city attorneys to explain the need for such secrecy. He wanted to know why creditors must sign a confidentiality agreement to gain access to the financial information. City attorneys claim the scenarios contained within the data are not meant for the general public. Judge Rhodes was not completely satisfied with the … [Read more...]
How long do credit card judgments last?
August 21, 2013 by Leave a Comment
The state that you live in determines how long a credit card judgment is valid. Depending on your state laws, a credit card judgment can be collected for as long as 10 to 20 years. Credit reports usually show credit card judgments for seven years from the date of the judgment or longer depending on your specific state law regarding judgments. It is best not to ignore the collection efforts of a creditor as they could sue and obtain a judgment that will stay on your credit. For more … [Read more...]
IRS offering more help for innocent spouses
August 21, 2013 by Leave a Comment
The IRS is making it a little easier for innocent spouses to prove their case for relief regarding jointly filed tax returns. Last year, the IRS acknowledged spousal abuse as being more than just physical abuse. Notice 2012-8 now recognizes abuse in the forms of sexual, emotional and psychological in addition to physical abuse. No the IRS is proposing rules that would lengthen the time for a spouse to apply for relief from two years to ten years. To read more about requesting for innocent … [Read more...]
Getting a mortgage is hard for even a rich person
August 20, 2013 by Leave a Comment
After the 2008 real estate crash, people found that banks were a lot stricter when it came to giving out money. Even wealthy individuals were having trouble obtaining mortgages, as automatic approvals were a thing of the past. Unfortunately, just as the real estate market is improving, new proposals in Washington are aimed at limiting mortgage amounts to a percentage of the individuals’ income. Another problem faced by wealthy individuals is lower property assessments as appraisals are using … [Read more...]
IRS looking for underreported income
August 20, 2013 by Leave a Comment
About 20,000 small business owners have received a letter from the IRS entitled “Notice of Possible Income Underreporting” as the IRS tries to crack down on underreported income by small business owners. This comes as the IRS promises to step up audits of small businesses. You will have 30 days to review your tax returns for errors and respond to the letter. The key is not to panic or ignore the letter. Simply review your returns and if you find errors, follow the directions for reporting and … [Read more...]
Americans paying credit cards on time but abandoning financial resolutions
August 19, 2013 by Leave a Comment
Americans may be paying their credit cards on time; however, a recent survey shows that they are not following through with their financial resolutions. Credit card payments that are over 90 days past due are the lowest they have been in almost 20 years. However, according to a survey by TransUnion, almost 25% of Americans have already given up on their New Year’s financial resolutions and almost 33% have not accomplished even one-half of their goals for the year. For more read, “Credit … [Read more...]
Build credit without credit cards
August 19, 2013 by Leave a Comment
If you are not convinced by the advice that to build your credit score you must have at least a couple of credit cards, you can try some alternatives to build your credit score. Try to build your credit score without using credit cards can be more challenging. However, if you are proactive and look for other ways to improve your credit score it is possible to do without running up credit card debt. One rule that remains – you must pay your debt on time or nothing you do to increase your credit … [Read more...]
Patriot Coal and mine workers reach settlement
August 17, 2013 by Leave a Comment
The United Mine Workers and Patriot Coal have been battling over heath care agreement and retiree benefits in the Patriot Coal bankruptcy case. In an earlier ruling in May, Bankruptcy Judge Kathy Surratt-States allowed Patriot to enforce significant reductions in benefits on workers and retirees. Under the new settlement reached by UMW and Patriot, UMW officials state they were able to improve the terms regarding “wages, health care benefits, paid time off, pension and more.” The settlement … [Read more...]
What does my homeowner’s insurance cover?
August 16, 2013 by Leave a Comment
If you are planning to purchase a home, you will need to purchase a homeowner’s insurance policy if you plan to have a mortgage. The mortgage company will require the policy to protect its interest if the home was destroyed. However, homeowner’s insurance policies do not cover all loses even though premiums are increasing. The amount of the premium and the coverage will depend on the insurance policy and the type of contract you purchase. For more information about what homeowner’s insurance … [Read more...]
Consulting fees are the latest explosive topic in Detroit bankruptcy case
August 16, 2013 by Leave a Comment
A former Detroit employee that was laid off alleges that the consulting fees being billed to the city “confirms people are making money off of Detroit’s demise.” Some may agree when they see consulting fees of $275 per hour for a 22-year old financial analyst that just graduated college last year. The consulting firm employing this analyst billed the city $288,671 for a two-week period in July alone. Even more shocking is the bankruptcy firm representing the city - - billing up to $1,000 … [Read more...]
