OvationLaw's Blog

Our largest competitor does, and they use it to spy on you.  If you are searching on our website, www.ovationlaw.com, and an advertisement for one of our competitors pops up, it is because they are utilizing controversial and malicious software known as Adware and Spyware.    

Adware and Spyware, also called "Malware", are software programs installed on your computer by publishers that allow them to snoop on your browsing activity, see what you purchase and send you numerous unsolicited "pop-up" ads.  In most cases, the software is installed on your computer through a variety of unfair and deceptive practices without your knowledge or consent. At a minimum, the software can slow down your computer and even cause it to crash, as well as slow down your internet access, while it is recording and reporting on your computer and internet use.    In more extreme cases, adware users have abused the information unknowingly collected from the users to commit crimes including identity theft.

The bottom line is that companies that utilize adware and spyware are spying on you through the internet, which is no different that peeking through your windows at night or listening in on your telephone conversations.   Can you really trust a company that so egregiously violates your privacy? You deserve more respect than that. 

Ovation Law vehemently objects to companies that attempt to solicit your business by spying on you.   Ovation Law proudly refuses to use any type of adware software to unethically gain information about you and we strongly recommend that you avoid any contact with companies, especially credit repair law firms, which stoop so low.  You will know who they are if their advertisements “pop up” on your screen when searching our website.

Bankruptcy is a federal court process designed to help consumers and businesses eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies can generally be described as "liquidations" or "reorganizations."

Chapter 7 bankruptcy is the liquidation variety -- property is sold (liquidated) to pay off as much of your debt as possible, while leaving you with enough property to make a fresh start. Chapter 13 is the most common type of "reorganization" bankruptcy for consumers -- you repay your debts over three to five years.

Both kinds of bankruptcy have numerous rules -- and exceptions to those rules -- about what kinds of debts are covered, who can file, and what property you can and cannot keep.  Bankruptcies, of any kind, stay on your credit report for 10 years.  All decisions regarding bankruptcy should be considered very carefully and not taken lightly.

Liquidation (Chapter 7)

Liquidation bankruptcy is called Chapter 7, and it can be filed by individuals (a "consumer" Chapter 7 bankruptcy) or businesses (a "business" Chapter 7 bankruptcy). A Chapter 7 bankruptcy typically lasts three to six months.

In a liquidation bankruptcy, some of your property may be sold to pay down your debt. In return, most or all of your unsecured debts (that is, debts for which collateral has not been pledged) will be erased. You get to keep any property that is classified as "exempt" under the state or federal laws available to you (such as your clothes, car, and household furnishings). If you don't own much, chances are that all of your property is exempt and you have what is known as a "no asset" case.

If you owe money on a secured debt (for example, a car loan, where the car is pledged as a guarantee of payment), you have a choice of allowing the creditor to repossess the property; continuing your payments on the property under the contract (if the lender agrees); or paying the creditor a lump sum amount equal to the current replacement value of the property. Some types of secured debts can be eliminated in Chapter 7 bankruptcy.

Not everyone can file for Chapter 7 bankruptcy. For example, if your disposable income is sufficient, after subtracting certain allowed expenses and monthly payments for certain debts (including child support and debts that secure property), to fund a Chapter 13 repayment plan, you won't be allowed to use Chapter 7.

Bankruptcy doesn't work on some kinds of debts. Though bankruptcy can eliminate many kinds of debts, such as credit card debt, medical bills, and unsecured loans, there are many types of debts, including child support and spousal support obligations and most tax debts that cannot be wiped out in bankruptcy.

Reorganization (Chapter 13)

Chapter 13 bankruptcy is also known as "wage earner" bankruptcy because, in order to file for Chapter 13, you must have a reliable source of income that you can use to repay some portion of your debt. And to qualify for Chapter 13, your secured debts must be less than $922,975 and your unsecured debts less than $307,675.

When you file for Chapter 13 bankruptcy you propose a repayment plan that details how you are going to pay back your debts over the next three to five years. The minimum amount you'll have to repay depends on how much you earn, how much you owe, and how much your unsecured creditors would have received if you'd filed for Chapter 7.

If you have secured debts, Chapter 13 gives you an option to make up missed payments to avoid repossession or foreclosure. You can include these past due amounts in your repayment plan and make them up over time.

Six out of ten Americans suffer from a "bad credit rating." Bad credit starts with imprudent choices, maxed-out credit cards, exhausted savings, overdue bills ... then a letter from a collection agency.

This is followed by more letters and phone calls every day. Now each time you submit an application for credit or even a job, you will be troubled and humiliated by the specter of late payments on your credit rating.

Credit grantors tend to view any kind of collection account, whether paid or not, as negative. These negative entries can stay on your report for seven years and in the case of bankruptcy, ten years.

Here are some scenarios that can put black marks on your credit:
• You go through a divorce and your spouse maxes out your joint credit cards
• An unpaid bill from your college years comes back to haunt you
• A creditor fraudulently places a black mark on your report
• A contractor you employed places a black mark on your credit report because you refused to pay him for incomplete or substandard work
• You were late with your credit card payment.

Things happen in life: layoffs, poor health, unplanned crises that can have consequences on your credit report.

Divorce and separation can also cause bad credit. This does not mean you have to give up on dreams that you may have, such as owning a home. If the bank turns down your mortgage application, many brokers and lenders may consider you an "A" buyer.
Several companies offer mortgage loans to people with less-than-perfect credit ratings, because homes are very secure collateral. The rates and fees might be outrageous, but even people in bankruptcy and foreclosures can apply.

Automotive credit also plays a part in re-establishing your good credit standing because an automobile is an asset that can be repossessed if things go wrong.

There are two ways you can have bad credit: one is where you can't buy anything on credit, and the other is where you have a bad credit report, but you may still be able to buy on credit. There are also varying degrees of bad credit. Much depends on what you are purchasing and who the creditor is.

If you've reached the end of your tether, filing bankruptcy instead of trying to pay your bills in dibs and drabs can also decrease your ability to purchase on credit.

On March 14, 2006 the nation’s three main credit bureaus sent out a press release announcing that they have adopted a new credit scoring system.  This new scoring system is not a whole lot different then the old FICO scoring system, but there are differences.  The FICO scoring system had a different algorithm to compute the credit score for each bureau.  The FICO scoring system also had a different range of scores for each bureau. 

This was what the credit bureaus were looking to standardize with the new VantageScore system.  The VantageScore uses the exact same algorithm to compute the score for all three credit bureaus.  Also, the score scale is exactly the same for all three bureaus. 

Here is a brief explanation of the VantageScore system.  The VantageScore system will be on a scale ranging from 501-990 (the lower the score the higher the risk to potential lenders).  The VantageScore also has adopted the classical academic scale to make it easier for consumers and lenders alike to understand where they rank with their score.  This academic scale is grouped by the following:

A- 901-990
B- 801-900
C- 701-800
D- 601-700
E- 501-600

The VantageScore just like the FICO score will be based off the information that is reported on the credit report.  It will reflect how often a consumer borrows money, how responsible borrowers are at paying back their debt on time, as well as other file content.  Unfortunately the credit bureaus did not divulge how these factors would be weighted in the new VantageScore.  The new VantageScore will also be more accurate when rating a consumer who has a limited credit history.  This is one area in which the FICO scoring system was not very accurate.

The FICO scoring system will not be done away with; in fact it will still be used by many borrowers to evaluate those who are looking to get a line of credit.    It will be up to the credit industry and the individual enders to decide which score they use.  In fact the rate of adoption of this new score will be set primarily by lenders themselves.  As new information is presented about the new VantageScore system, we will make sure to keep you updated.  If you have any questions regarding this or any other credit matter, please contact us at 1-866-639-3426 or you can email us at questions@ovationlaw.com. 

It's easy to think that bad credit is no problem from the advertisements in the media. However, have you ever examined the fine print on those "easy credit" ads? You'll discover that people with bad credit and bankruptcies are paying twice, three times, even four times the amount of interest that a person with good credit pays.

By getting the lowest possible interest rates, you save a substantial amount of money.
It is estimated that consumers with compromised credit pay billions in additional costs per annum. Credit grantors, fueled by credit reporting, advance strong competitive advertising campaigns for the most desirable borrowers.

Lower interest rates, reduced annual fees, toll-free customer service centers, customer recognition programs and purchase protection plans are some of the benefits of this rivalry.

Buying a home is the biggest single investment most people will ever make. Your credit history is one of the several important factors used in determining whether you can get a mortgage or not.

One of the details that lenders evaluate when you submit an application for a mortgage is your payment record on things such as credit cards, car loans, rent and related commitments.

If you intend to start a business, credit review and scoring is important as a means for your financers to evaluate your capability to handle the related risk and the possible losses resulting from charge backs and fraud. You will make the decisions for your business and have control of the credit card processing, and your good credit is an indication of your financial responsibility.

Blemishes on your credit record can have an effect on not only your ability to get a job, but also to lease an apartment or purchase a car.

Making numerous requests for credit, paying credit card bills late, and having a great deal of debt could lower your credit score.

Learn to keep track of how much you spend and on what. Try to find any area that's way out of line - it may be something as noticeable as eating out or as surprising as dry cleaning bills - where you can curtail spending and save some cash.

Make a budget - it is the first step to your financial freedom. Before you can devote yourself to increasing your money, you need to know where it goes.

In addition, you can be eligible for all kinds of 0% interest, low interest, cash back and rewards credit cards if you have a good credit record. You can in fact make money off the credit card companies with a first-rate credit rating.