A One-Stop Resource for Credit-Related Information

By Jacquelyn Lynn

Guide to Credit and Bankruptcy: Everything You Need to Know About the Law, Your Rights, and Credit, Debt, and Bankruptcy , The American Bar Association, Random House, 2006, $16.95.

Few things are more important to a real estate investor than good credit-and that applies not only to the investor, but also to the people to whom he or she sells and rents. Being knowledgeable about credit and related legal issues will keep your investing career on the fast track and prevent many finance-related problems.

The American Bar Association's Guide to Credit and Bankruptcy: Everything You Need to Know About the Law, Your Rights, and Credit, Debt, and Bankruptcy is a comprehensive yet easy-to-understand guide to credit issues. In Part One, the book begins with an explanation of the various types of consumer credit, your rights when it comes to credit, how to apply for credit, and credit records. It explains identity theft and how to protect yourself. (For more on the impact of identity theft on real estate investors, see Jordan Taylor's article "Identity Theft: the devastating impact it can have on real estate investors.") It discusses unfair lending, mortgage and home equity loans, auto financing and leasing, and tells you how to deal with debt. Part Two covers bankruptcy, and includes details of the Bankruptcy Reform Act of 2005. Each chapter includes a list of resources for more information. Informative sidebars throughout the book include questions presented to attorneys and their answers.

For people who have had credit problems, the book offers recovery strategies, including excellent advice on dealing with credit counselors and a warning about bogus credit repair organizations. It also explains what debt collectors can and can't do, and what your options for recourse are if the collector breaks the law.

Credit is critical to the American economy and to most consumers. Whether your interest is strictly as a consumer, as an investor, or as a businessperson, the more you know and understand about credit, the easier it will be for you to make the system work to your advantage. This is an excellent reference book to keep in your personal library.