Credit report accuracy may not be that accurate. Consumers often rely on credit reports and scores to establish credit. Mortgages, car loans and credit card accounts are some of the more common examples or creditors who look to consumers' credit scores to extend credit. The better the credit score of potential creditors, the more likely loans will be made. Perhaps more importantly, the better the credit the less those loans will cost.

Creditor input and public records provide primarily for credit report accuracy. But creditor input is not always so reliable, nor are all public records. This summer credit reporting agencies will begin relying on public records to evaluate credit worthiness. That's good. Given the many inaccuracies of credit reports in the past, this should be a positive move on behalf of consumers. This LA times story pinpoints the potential problem with credit reports, as well as the measures taken to make the reports more accurate.

Bankruptcy is a negative on your credit, but your debt is often worse. This is particularly so if you cannot afford your current debt. Not paying your debt on time, or paying it at all, can undermine your credit severely. Lawsuits can be even worse. So although on its own a bankruptcy is bad, its effect is positive on your credit. Credit report accuracy often understands this. So although you may have a bankruptcy on your record, your debt is gone.

Balancing your debt, and whether to file bankruptcy, is different for everyone. The issue often is which is worse, bankruptcy or debt? Though it is unique to each, those even considering bankruptcy are usually in better shape filing bankruptcy and eliminating their debt. It is better to file bankruptcy and eliminate your debt, especially if your debt is growing. Remember, credit report accuracy considers your debt-to-income ratio as much as other information in your credit history. That's why bankruptcy works. It eliminates your debt.

If you are evaluating options to deal with your debt here in Sacramento, and are considering bankruptcy, contact my office for a free consultation. The only thing you have to lose is your debt! 

Debt is on the rise. This recent Bloomberg article reflects the mounting consumer debt in America. Sacramento consumer debt is no different. The Bloomberg article portrays trends in consumer debt. It analyzes debts aside from mortgages, and the trend is clear. Consumer debt is up. It is up in Sacramento the same as it is in the rest of the country.

The alarming part of the story is that income is not keeping up with the mounting consumer debt. This debt is primarily credit card debt, personal loans and payday advances. They are high interest loans. If this trend continues, something has to give. Consumers, likely, will be left holding the bag. But how?

Mounting consumer debt does not pose a problem if income is up. But it is not. At least not to the degree debt is up. When income cannot keep pace with debt, defaults result.

For those living with increased debt, bankruptcy can help. Bankruptcy is a legal process to eliminate debt. Credit card debt and personal loans are often the cause of filing bankruptcy. Payday loans only makes matters worse, and there are a lot of those loans out there. The common denominator to these consumer debts is interest. Interest rates on all these loans are high. If you can't afford the cost of these loans bankruptcy is an option.

Filing bankruptcy is detrimental to your credit, but your debt can be worse. With mounting consumer debt in Sacramento and elsewhere, bankruptcy affords financial relief. For most bankruptcy filers, bankruptcy actually improves their credit. Why? Because debt you cannot afford is worse on your credit than a bankruptcy filing, and it can only get worse over time. Bankruptcy discharges, or eliminates, debt your can't pay.

If you can personally vouch for mounting consumer debt,contact my office of a free bankruptcy consultation to evaluate your options. 

Abbey Lee, the reality TV star of "Dance Moms," filed for bankruptcy several years ago. And the Dance Moms bankruptcy did not go well. Why? She didn't disclose all her assets when she filed for bankruptcy. That's bad!

Filing bankruptcy provides protection from creditors. It allows you to eliminate debt you cannot afford. And that's good. But you must follow the rules to receive the bankruptcy benefits. One of the most important rules is to disclose your assets when you file for bankruptcy. Dance Moms bankruptcy did not do this. She tried to hide nearly a million dollars in assets from the bankruptcy court, and then lied about it. Again, this is bad.

Dance Moms bankruptcy is a cautionary tale. Her plight is now in the hands of the bankruptcy court. And she is going to jail. See for yourself. She's not the first. Nor will she be the last to suffer such fate.

As a former football player, I've often likened bankruptcy to the fair-catch. It's simple. Wave your hand in the air when you catch a kick and you can't be tackled. In exchange, you can't run. Filing bankruptcy is waving your hand in the air. Your creditors can't tackle you. But you cannot run from your legal obligations. Disclosing your debts is one obligation. So is disclosing your assets. Dance Moms bankruptcy did not do this. She may have disclosed her debts, but not her assets. She lied about it, too.

I have seen Dance Moms. My daughter was a fan. Not bad for reality television. When I saw a news teaser of her bankruptcy problems, I stayed tuned. She spoke of learning from the process. Learning from her mistakes. And, at 51, of growing up. Guess so. Prison sentences of a year and a day will do that. At the end of her ABC News interview, though, she cautioned against filing for bankruptcy. But the bankruptcy did not fail her. She did. Guess she tried to run!