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Author Topic: bad credit  (Read 1946 times)

:-)

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bad credit
« on: July 27, 2005, 05:45:36 PM »
I'm interested in law school, and I just heard from someone that having bad credit will make you fail the bar.  I joined a credit agency last year to help me pay for bills (outstanding credit card bills less than $3500).  I don't know how my credit will look once I'm done paying the bills, but if it is bad. will it keep me from passing the bar?

SassDiva2000

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Re: bad credit
« Reply #1 on: July 27, 2005, 06:09:30 PM »
I am not sure if bad credit will keep you from passing the actual bar exam but I believe it may be considered a factor for a determination of good character.

On the other hand, I am not sure if bad credit in and of itself will keep you from bar admission. For example, the bar may consider how long ago you acquired bad debt, what you're doing to take care it now, etc. I would suggest contacting the state bar in the state you plan on taking the exam and get the scoop from them.


I'm interested in law school, and I just heard from someone that having bad credit will make you fail the bar.  I joined a credit agency last year to help me pay for bills (outstanding credit card bills less than $3500).  I don't know how my credit will look once I'm done paying the bills, but if it is bad. will it keep me from passing the bar?


Brooklaw

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Re: bad credit
« Reply #2 on: July 27, 2005, 06:10:36 PM »
That's a good question, i'm interested in hearing any responses. I have terrible credit, and i could not get any private loans. I'm still going to law school though, and i hope that it won't affect me when i go for the bar. I plan on getting it mostly under control by the end of my second year though.


polyhymnia23

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Re: bad credit
« Reply #3 on: July 29, 2005, 08:47:45 AM »
Yeah I'd be interested in knowing this. I have tons of medical bills on my credit...hopefully it won't kill me later. Serious illness+ no insurance= bad credit. lol.

vixierat

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Re: bad credit
« Reply #4 on: July 29, 2005, 11:45:57 AM »
Declaring bankruptcy can make you fail the bar-if you declared it for dishonest reasons. As long as you're actively working on your credit, you should be fine.

jdohno

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Re: bad credit
« Reply #5 on: July 29, 2005, 11:56:47 AM »
You can start law school with bad credit. And pass the charcter and fitness test. If you have a judgement, you have to pay it and any outstanding bills to the government like tax liens or parking tickets. For the other bills, make some type of payment on a contineous basis for like 6 months to a year before you take the bar exam. You can tell the committee that you are making a honest commitment to paying your bills. Also you can send a letter to the credit agencies that can be attached to your credit report. In this letter, you can discuss any hardships such as illness, etc that has made it difficult for you to pay your bills. That way, anyone who pulls your credit report can read the letter and know that you have fallen on hard times.

You can't just fix your credit before law school. They update credit slowly like on a 6 month basis. And you have to balance it with good credit like secured credit cards, etc. Just plan to get some control over your credit before you take the bar. If you do well your first year, then you have a chance to get great summer jobs that pay well. One of the firms I prebid on for OCI has a salary that will allow me to cut down on a few bills with just 2 1/2 months of work.

Also like Schwing said, know what your state bar association wants. Some states like Florida are harsh on bankruptcy and other things. Other states like CA want you to pay any outstanding judgements and bills to state or county agencies and make an attempt to pay off your credit. As long as you haven't applied for bankruptcy you should be okay.

Like vixierat stated, as long as you're actively working on your credit, you will be fine. Also keep any documents or canceled checks that you have sent to bill collectors. They are notiously slow with reporting payment to credit bureaus so have your paperwork showing that the bill has been paid. Also request in writing from the bill collectors that if you pay the debt in full that they will report it positive to the credit agency. Make sure you have documents to cover yourself. Good luck.

angelus

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Re: bad credit
« Reply #6 on: July 29, 2005, 12:10:53 PM »
I am not sure if bad credit will keep you from passing the actual bar exam but I believe it may be considered a factor for a determination of good character.


In reality, bad credit is often caused by poverty and not the maliciousness of the individual. Most people don't wake up in the morning and decide to go into debt in order to hurt the credit companies. Most responsible and intelligent people, including examiners for the BAR, will realize that bad credit is usually caused by ignorance and a lack of understanding of how to manage ones money.

I.E. it has nothing to do with character. That it does is simply propoganda spread by the credit card companies.

Ivy Man

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Re: bad credit
« Reply #7 on: July 30, 2005, 11:31:02 PM »
easier said than done.

Dude, just fix your credit.

SassDiva2000

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Re: bad credit
« Reply #8 on: August 01, 2005, 04:03:01 PM »
I am not sure if bad credit will keep you from passing the actual bar exam but I believe it may be considered a factor for a determination of good character.


In reality, bad credit is often caused by poverty and not the maliciousness of the individual. Most people don't wake up in the morning and decide to go into debt in order to hurt the credit companies. Most responsible and intelligent people, including examiners for the BAR, will realize that bad credit is usually caused by ignorance and a lack of understanding of how to manage ones money.

I.E. it has nothing to do with character. That it does is simply propoganda spread by the credit card companies.

I fully agree that bad credit is not always an indication that someone has bad moral character. But credit is a factor that some state bars will consider for the good character determination. Someone posted more detail on this earlier: For example, some states like Florida are harsher will its comes to bankruptcies while other states may not be. Specific state bars may even have such information on the websites (California does, for instance).

Bad credit is probably used as an indication of character because there are some people who actually do rack up bills with no intention of ever paying them. But most people, I would agree, acquire bad credit from a combination of factors, none of them having anything to do with bad character. I mean, just think of all of the people that get into credit card debt in college. A lot of college students are just ignorant when it comes to money AND credit and don't realize facts about interest rates, etc.