I get calls from people who have established their own asset protection plan using self-settled trusts in states such as Nevada, Delaware, and Alaska. These states have enacted statutes which protect from creditors a debtor’s beneficial interest in a trust which the debtor sets up for his own benefit- a “self settled trust.” A self-settled trust protected by state law is referred to as a domestic asset protection trust (“DAPT”) Florida does not have a DAPT law, and generally speaking a self-settled trust in Florida does not protect the debtor’s beneficial interest even when the trust has standard spendthrift clauses.
I have written before, but it needs repeating, that general conflict of interest law principals hold that Florida courts will not recognize or enforce the DAPT statutes enacted in other states. A Florida debtor who transfers his assets to a Nevada trust or a Delaware trust will probably find that the Florida courts will permit his creditors to levy upon his interest in this trust. Bankruptcy court Read more…
Many folks come to us to discharge their debts in Massachusetts bankruptcy and get a fresh start. Often we see payday loans on their credit report. Massachusetts has very strict laws regarding payday loans. There are no actual payday lenders in Massachusetts, so folks often use the internet. However, in Massachusetts, payday loans require full documentation, the due date of the loan must be in writing, there cannot be any pre-payment penalties, the whole transaction must be complete within 14 days, and there are strict rules on how unpaid loans can be collected against. Of significance, interest rates cannot exceed 23%. These consumer protections are why we don’t see as many payday loans: they just are hard to get in Massachusetts. On the other hand, many of our clients have worked in other states, where the loans have become onerous.
In any event, payday loans are loans pledged against a worker’s next paycheck. Seventeen states allow payday loans, which have, to date, been so under regulated that some interest rates exceed 400%.
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A friend from high school visited me last weekend and we got to talking. Her salary is solid but not high in comparison to some of our other friends. She loves what she does and she’s great at it. And despite making a somewhat modest salary, she has a cute apartment, a cool wardrobe and the lifestyle she wants. How does she do it?
• She lives in an affordable city. My city, on the other hand, is pretty cha-ching. We compared notes and she pays $500 less in rent than I do for about the same square footage. Wow. • She takes good care of her car. A special fund for ongoing car maintenance keeps her older bmw on the road. No monthly payments on a shiny new model for her. And since its older, her insurance is lower too. • She gets a produce box and cooks in. She found a community produce organization that sells organic weekly produce boxes for cheap. Each week, she uses the goods to make large batches of soups, curries, pastas and stirfrys—then she takes them to work. •
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Life can be accompanied by a large amount of debt. A person’s accumulation of fees usually starts right at college. Once a person has started to make a decent income after school, he or she can then start paying off this student debt. As time goes on, people go into further debt in order to make housing and vehicle payments. People then establish a pattern of borrowing and debt accumulation that can haunt them for the remainder of their lives.
People should realize that there are ways to do credit repair on one’s financial records. This type of plan can be executed by an independent individual or by a company that specializes in the amending of credit. These two methods are effective and defective in their own ways and a person must understand these discrepancies before deciding upon an eventual method.
If an individual chooses to repair his or her credit without the assistance of a company then there are several steps that must take place. A credit bureau should be contacted in order to gain access to one’s financial reports. Read more…
Dont let your credit stand in the way of your own personal self growth. Your life can and will seriously improve when you get your credit troubles in order. There is no reason to wait on this. Dont procrastinate!
I want to give you a little pep talk here! I hope you dont mind! You might need it if you are suffering with credit issues. Getting turned down for a loan or a mortgage is not the end of the world. In fact it can be a great time for self improvement and growing up. Or a great time for self awareness. Dont let it be a moment of despair. It doesnt need to be because there are solutions available to you. You need to focus. Write down your problems and the solutions to those problems. Make a check list and start crossing off the items on the list as you accomplish them. That is how I get things done. I have a lot of little lists and I love the feeling when I strike through something on that list because I finished the task.
Credit repair is on that list for you if you are reading this.
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— Levi Krefft @ 12:33 am — 
February 3, 2012