How Long Does Bad Credit Stay on My Credit Report?

This is a question that comes up regularly in my office and it recently turned up on Credit.com. If you are bad with paying your debts on time, that history stays on your credit report for a full seven years. So Gerri Detweiler asked me that question.

Why seven years? It turns out that there is no particular reason other than a compromise between the Senate and the House when the Fair Credit Reporting Act was being drafted was back in the late 1960’s. It has nothing to do with the Bible or the Statute of Limitations for collection of a debt. It was just an arbitrary time period picked by elected representatives as a “reasonable” time.

Is it reasonable? The answer is that your history is in the past. If you do things to manage your debt better now and pay everything onetime, most lenders will take that inco consideration. While no one knows exactly what does into your credit score, time has to be a factor.

Can a Debt Collector Grab My Bank Accounts?

Recently, Gene Melchionne was interviewed by writers for Credit.com on the question of seizure of bank accounts. The interview was later picked up by MSN Money and Yahoo Finance because of the importance of the question.

When collecting delinquent accounts, collectors will many times claim to be able to seize bank accounts for the payment of the debt. It’s not so easy. But it is possible. In most cases, you need to be sued first, unless the bank account is with the same institution where the money owed. Read the article on
Credit.com for more.

Gene Melchionne Interviews Gerri Detweiler on Podcast

IF you aren’t listening to the Money Go Roundtable Podcast, you should. Recently, Gene Melchionne interviewed Gerri Detweiler of Talk Credit Radio and Credit.com about credit reports. IF you want to know about credit reporting, credit scores and what it all means, take a listen to this podcast episode.

Law School Grads Looking At Bankruptcy

This week, the Connecticut Law Tribune published an article on student loans, law schools and the current economy. It is no mystery that recent graduates from colleges are having a hard time finding a job. Compound that with the expense of attending graduate school for an advanced degree and then pile the time and money spent on something like law school. It is no small wonder that law school graduates are both having a hard time finding a job AND paying their student loans. The result? Yound lawyers looking at filing bankruptcy.

The author of the article turned to well-known
Student Loan Lawyer, Josh Cohen, and Attorney Melchionne for an insight on both the scope of the problem and the remedy. The sad end to this story is the same for most young people struggling with student loans; there is no escape in bankruptcy for any student loan. For more, see the story here.

NACBA Highlights Attorney Melchionne as Practice Partner

Based on random sampling of NACBA’s membership, the Member Profile strives to answer the question: Who are Consumer Bankruptcy Attorneys? It looks at a variety of economic and demographic characteristics, as well as, business practices and “war stories.” The National Association of Consumer Bankruptcy Attorneys recently introduced Attorney Gene Melchionne of Waterbury, Connecticut as “Practice Partner”.

Check out the full article
here.