College expenses add stress to the already strapped. Here are some ways to save.
Published Thursday, September 2, 2010 @ 10:39 am
Well, it’s fall. In terms of school, anyway. And if you have a kid heading off to college now or this time next year, it means all kinds of expenses, like dorm supplies, new clothes, a computer and of course, textbooks.
A student’s learning resources have become one of the most underrated expenses of the college experience. Parents today worry greatly about tuition and room and board (as they should) but tend to be quite surprised when another $1,000 is needed just so a student can do the required readings.
For parents in a tough financial spot but who managed to send a child off to college, textbook costs can become a unexpected economical pain-point. Thankfully, there are more options than ever before for saving on the rising costs of books and other published resources.
Apparently, a new law was passed recently (who knew?) that mandates colleges and universities post online the course materials per semester schedule. This means that you have more time to research the best financial avenues to explore for cheaper books because the cost and ISBN (International Standard Book Number, in case you’re curious) will be listed with the course.
Now, let’s get digging.
First—and this sounds obvious but you would be surprised at how rarely it’s used—go to the college library. Most schools buy textbooks for their library collections as well and voila, you have a free book! Sure, it’s going to need to be renewed a few times but hey, the early bird catches the worm.
One of your next best options is to rent your textbooks. Granted, this isn’t the best approach for long-term learning but at least you’ll have time to understand to what extent a professor uses a specific book and then decide, after the course, if its worth purchasing. And if it is not a book for a course in your child’s major, long-term ownership wouldn’t make all that much sense anyway.
Web sites like Chegg.com and CampusBookRentals.com rent textbooks. Be sure to understand their guidelines to avoid late or damage fees. Let’s kid ourselves, course books make great beer mug coasters.
Since this is college in the age of the Internet, don’t forget about the ever-growing collection of e-books. Without all the expensive printing and distribution costs, electronic versions are often substantially less and coincide perfectly with the level of comfort today’s college students have with the Web and reading things from laptop screens.
Web sites for your student to peruse for e-versions of their books include CourseSmart.com and Abebooks.com. There are also options for included course materials that commonly accompany a respective text. Once downloaded, there are a number of additional ways to make highlights and bookmark specific sections that need to be referred to later in the course. There is also a service called iChapters.com that allows for the download of individual chapters of specific books.
Like any expensive product, don’t forget the value of simply shopping around. A $10 difference per book can offer pretty nice savings to college parents on a budget, which includes just about everyone today. Remember that the books get updated quite often, so the ISBN is your friend when it comes to ensuring you have the latest version required for a course.
College costs are continuing to climb every year and the grants and scholarships available don’t seem to be keeping pace. Plus, more and more kids are attending college, so the competition is only increasing. Remember that federal college savings plans can remain intact after a bankruptcy, so plan early and contribute often.
Unfortunate Homeowners Face “Foreclosure Roulette”
Published Thursday, September 2, 2010 @ 10:36 am
Imagine for a moment that you’ve fallen on hard times. You’ve gotten one, two, or maybe more payments than you can count behind on your mortgage. Your bank or mortgage lender has contacted you over and over, threatening you with talk of a foreclosure. You’ve even been told to expect a foreclosure sale in the coming month. The odd thing is, nothing has happened.
You’re left scratching your head, with no clue what’s actually going to happen, without hearing a peep recently from the same lenders who’s been threatening to take your home for months.
According to real estate industry analyst Sean O’Toole, in this situation you may have had a lucky turn on what he calls the “Foreclosure Roulette.” What does this mean?
According to Arthur Delaney of The Huffington Post, “Banks don’t want to recognize losses by having to put homes on the market at foreclosure-sale prices, but they don’t want to encourage borrowers to quit making payments either, so, O’Toole believes, they randomly foreclose on some people to prevent widespread ‘moral hazard.’ The rest are left hanging with the help of the government’s “extend and pretend” approach to the collapse of the housing bubble.”
This type of property ‘purgatory’ is affecting many Americans, including those who have tried to work with banks to modify mortgages under the Obama administration’s Home Affordable Modification Program—a program meant to place eligible borrowers into a three-month trial period before making the modification “permanent” for five years. For some homeowners, this ‘trial period’ drags on much longer than the three-month window, only to followed by a unexplained rejection letter from banks and a great deal of anxiety as they wait for the bank’s next fateful move.
As Delaney reports, the anxiety may last a while. “The average foreclosure now takes 469 days, according to Lender Processing Services, whereas it took 319 days at the beginning of 2009. Many industry analysts say that is due to the Troubled Asset Relief Program, HAMP, and federal accounting-rule changes. ‘We weakened accounting standards to allow banks to keep non-paying mortgages in their books at full value,” wrote economist Dean Baker, co-director of the progressive Center for Economic and Policy Research. ‘Banks also know that they are looking at glutted markets right now, so they have little incentive to take possession of a home and then try to sell it. And, the HAMP and other programs mostly delay foreclosures and hand money to banks, instead of keeping people in their homes.’”
An additional offshoot of this treacherous tactic of delaying foreclosures is the additional expectation that home prices will drop and bank’s refusal to enact a “foreclose and sell” strategy may stall the market and add to the number of strategic defaults. These unseemly practices are causing many lawmakers to call for bankruptcy judges “to write down mortgage principal (a process sometimes known as ‘cramdown’).”
Until things turn around, don’t sit and wait for your own personal housing bubble to burst. Join the millions of American homeowners who have found immediate help to keep (or flee) their hard-hit homes. If you have been harmed financially by the lingering housing crisis, knowing a qualified bankruptcy attorney can help you to conquer your creditors and face your economic fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Bankruptcy and Baby Boomers
Published Thursday, September 2, 2010 @ 10:34 am
Baby Boomers and their cohorts born during the middle part of the 20th Century—between the years of 1946-1964—are a generation of active lifestyles, risk-taking rebellions, musical and cultural significance, and, as they come to represent one third of the population of North America, a group making significant demands on the societies in which they live. But now, Baby Boomers are adding one more superlative to the bunch: they’re also a generation of financial insolvency.
According to a recently-released study from the American Bankruptcy Institute’s ABI Journal, 42 percent of all debtors filing for bankruptcy were between the ages of 45 and 64 in 2007. In addition, these older Americans are filing for bankruptcy at an even faster rate than their younger counterparts.
So, what’s the reason for these rising rates of bankruptcy among our nation’s more mature Americans? Like so many individuals during these tough economic times, our country’s more Boomer populations are experiencing off-the-charts unemployment, staggering medical expenses, overwhelming consumer debts and credit card bills, underwater mortgages, and the subsequent siphoning of retirement funds.
But all of these terrible conditions—which are difficult at any age—are exacerbated for the Baby Boomer set. For example, with one job for every five people needing one, older Americans must also face age discrimination in an already competitive job market—whether they’ve been laid off or are attempting to re-enter the workforce following a not-so-tranquil attempt to retire in our not-so-fun financial era. With the average duration of Boomer unemployment running weeks or months longer than that of their younger peers, many older jobseekers are forced, more often than anyone, to turn to their remaining retirement funds, credit cards, or loans, just to stay afloat.
What’s worse is that with the loss of their job, Boomers face the loss of their health care insurance, a sometimes devastating scenario for a generation of older Americans often experiencing their first genuine medical conditions, illnesses, injuries and other medicinal needs. But these risks don’t simply relate to physical maladies: living without health insurance can mean financial ruin when an individual is faced with a medical emergency. These emergencies can also force older Americans to turn to home equity or retirement accounts in an attempt to repay lingering medical debts.
By drawing from their savings, retirement, equity, and credit cards, Baby Boomers create a vicious cycle of spending that, in time, can leave them with no nest egg for the inevitable rainy days when they are unable to work, unable to avoid medical maladies, and unable to turn to other sources of income for help. What’s worse is that as they age, these mature men and women are often targeted for payday loans and foreclosure scams that take advantage of their generational desire to carry their own weight and pay off their debts—albeit at unmanageable interest rates.
These scenarios, in which a Baby Boomer’s only recourse is to use their valuable assets or consumer credit to stave off creditors, is precisely why bankruptcy was created.
So, if you’re a Baby Boomer who’s been effected by the economy, and are now considering new ways to get out from underneath ever-increasing debt, knowing a qualified bankruptcy attorney can help you conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Five Quick Tips for A Second-Time Bankruptcy
Published Thursday, September 2, 2010 @ 10:32 am
Last year, one million people filed for bankruptcy, with 2010 on tap to top even that staggering figure. So what’s behind the big bankruptcy bump? A continuing housing crisis, higher health care costs, and unemployment hovering the double-digits. As a result, many people who have already filed in the past may be facing another round of tough financial times, and considering a second-time bankruptcy. But what considerations are there for someone considering a double-dip in the bankruptcy pool?
Well, under current bankruptcy rules, certain conditions apply for a second bankruptcy. In North Carolina, as is the case in all other states, you must wait 8 years between filing a Chapter 7 case and filing another Chapter 7 case; you must wait six years between a Chapter 13 and a Chapter 7, four years between a Chapter 7 and a Chapter 13, and two years between subsequent Chapter 13 filings.
Given these limitations, here are five quick tips to consider when contemplating a second bankruptcy filing.
Be Thoughtful
In this era of economic strife, many feel they have nowhere to turn but for the benefits of bankruptcy. A sudden medical expense or lay-off can leave you feeling financially destitute. A lot can happen in the years between bankruptcies. In these cases, multiple bankruptcy filings may feel like the only option. Be thoughtful about a second shot at bankruptcy. Be honest with yourself about whether or not this option is best. And, most importantly, don’t be afraid to use the helping hand that bankruptcy can provide—once or twice— if your home, health, or ultimate happiness are otherwise at risk.
Assess Debts
When you take a cold, hard look at your current debt, is it greater or less than the debts that prompted your first filing? What type of debt is it? Is your debt secured or unsecured? The answers to these questions can determine whether you need bankruptcy (i.e., less debt, more income); the particular bankruptcy that can help you most (e.g., Chapter 13 or 7); or whether bankruptcy can help at all (i.e., consumer debt vs. student loans).
Seek Financial Assistance
Considering multiple bankruptcies may signify a larger problem with spending, accumulating unnecessary debt, or other self-destructive traits. Just like you would seek a doctor for a continuing health problem, repeat brushes with insolvency may be a sure sign that you need the help of a financial advisor. Often, a low cost assessment can provide priceless insight into the persistent problems causing your financial failures.
Stop the Cycle of Spending
In most cases, Americans filing for bankruptcy today are merely the victims of the unexpected: layoffs, sudden injury or illness, or the fine print of consumer credit. That’s why, the second time around, it’s always important to look beyond the catastrophic event and to potential budgetary behaviors that may be contributing to the systemic problem. In short, curtail any spending habits that might have led you back to this financial place; shore up any spending on luxuries and non-essentials; and finally, and most importantly, because new bankruptcy laws can limit a third try, make this bankruptcy your last.
Get Good Legal Advice
If you’re considering another bankruptcy it’s time to turn to someone who’s got your back when you’re in the process of bouncing back a second time. That “someone” is inevitably a qualified bankruptcy attorney who can help you to conquer your another round of creditors and face your most recent financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond the bankruptcy. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Proper Income Disclosures in Bankruptcy
Published Wednesday, September 1, 2010 @ 10:07 am
In an era of meteoric unemployment rates, looming layoffs and job uncertainty, income can be a tough thing to talk about these days.
But for those men and women seeking the priceless protections of a bankruptcy—many for the same unfortunate economic reasons listed above—talking about income is at the very core of a successful bankruptcy filing.
Under current bankruptcy law, debtors just like you who are seeking bankruptcy must complete what is known as a Statement of Financial Affairs. On it, you are asked to disclose all earned income: from average employment pay to profits from the operation of a business. In addition, you must also share any income coming from other sources.
To clarify all of the sources that must be disclosed to the bankruptcy court, here’s what you should keep in mind when filling out your personal Statement of Financial Affairs to better assure an informed and effective bankruptcy:
Three Year’s Worth of Income
When considering a comprehensive disclosure for the purposes of your Statement of Financial Affairs, keep in mind you must reveal all income received during the year of your bankruptcy filing, as well as all income accrued two years prior to your bankruptcy filing. In this situation, if you were to file for bankruptcy this month (September 2010), in addition to providing income information for 2010, you would also need to share your earnings for the years of 2009 and 2008. In come can be proven by providing your tax returns, or what’s known as a profit and loss statement for those who are self-employed or own their own business.
The non-filing spouse’s income
If filing jointly with your spouse, both of your incomes will be included when determining your eligibility. If your spouse is not filing, you will probably need to provide some information about the non-filing spouse’s income. This is to make sure that your spouse’s contribution to the household, if any, is included in the total monthly income. If your spouse keeps his/her finances completely separate, it will be necessary to know exactly how much of the household expenses the spouse pays separately for items like mortgage payments, utilities, groceries, etc. Don’t let this easy requirement deter you. Even if you keep your finances completely separate, your attorney should be able to help you make a determination your spouse’s contribution.
Social Security and Child Support Payments
Income in the traditional sense isn’t the only “income” necessary for the purposes of the Statement of Financial Affairs. In addition, you must also include all income—even amounts that would normally be considered exempt for the purposes of your bankruptcy. For example, you must disclose Social Security and child support payments, as well as any cash or income considered “under the table” for the purposes of traditional personal income. In short, all incoming money should be considered fair game when consulting with your attorney about your personal bankruptcy filing’s Statement of Financial Affairs.
As a result of the intricacies of a Chapter 7, 11, or 13 bankruptcy—especially in a case where there are multiple parties’ incomes at issue—it is essential to consult with a qualified bankruptcy attorney. Your bankruptcy attorney is important during the bankruptcy process to help you navigate any uncertain waters and work in your best interests during the duration of your bankruptcy. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
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Washington Continues the Political Tennis Match while Jobless Grow Weary
Published Wednesday, September 1, 2010 @ 7:36 am
There was a time when a college diploma carried the promise of long, prosperous employment. Today, it’s as promising as a one of those silly motivational pictures of eagles and mountains.
As most people are coming to realize, it doesn’t matter how many initials are attached to the end of your name, you stand about as much chance as finding work today as the guy holding a sign at the intersection.
Earlier this week, President Obama stood in front the press corp and verbalized what everyone in America already knew: that far too many people are still out of work. As a result, foreclosures continue and personal bankruptcies are commonplace.
Of course, it’s all political, he says. Republicans are the problem. Well, in reality, everything is the problem. The longer Washington stands aisle to aisle pointing fingers, the longer people like you—our readers—are going to have to stand in unemployment lines and continue to need our help. And we’re here for you, of course; but wouldn’t you rather not have to make that difficult phone call?
The President called into question the Republicans lack of motivation to pass a bill targeted to incentivize small businesses. A couple of things stood out about his speech, however. One, election season is heating up and the Democrats need to attach the opposition to every verbal instance of economic duress as possible. Secondly, unless the bill has a good deal of bacon wrapped around it, most Republicans would support a truly business-centric piece of legislation.
Don’t get us wrong here, this isn’t meant to be a political post. But who are we kidding? Washington has found itself so wrapped up in its own well-being that the people it tries to serve have become nothing more than pawns in the two major parties’ efforts to win votes. There doesn’t seem to be a whole lot of intrinsic, domestic focus. It’s almost as if we need to wave a flag that says, “Hey, Congress, we’re over here! Remember us?” It’s time to put the swords away.
Last week, a report showed that economic growth has stalled. The timing for the President was anything but good, as it came during his 10-day stay in Martha’s Vineyard. After all, getting the country back on its feet is hard work.
Efforts to date have shown that there is no real magic fix to our country’s economic woes. All the creativity to date has fallen flat. So, wouldn’t one think that it’s time for some radical thinking? What about bankruptcy mortgage cramdown? How about some real relief for those stuck with high interest private student loans?
In his speech, President Obama said, “Every single day, I’m pushing this economy forward, repairing the damage that’s been done to the middle class over the past decade and promoting the growth we need to get out people back to work.”
Bold words.
And who doesn’t wish they were true?
If you’re struggling to make ends meet, real relief is just a phone call away. Call the experienced bankruptcy attorneys at the Law Offices of John T. Orcutt: 1-800-899-1414 or visit www.billsbills.com. Even if you’re unemployed, and think “I can’t afford an attorney”, give us a call. There are many options available under the bankruptcy code, some with very minimal up-front fees. Convenient offices in Raleigh, Wilson, Durham, Fayetteville and Lumberton.
What To Do When You Can’t Pay Your Credit Card on Time
Published Tuesday, August 31, 2010 @ 9:32 pm
The Obama Administration’s Credit CARD Act, meant to tighten the reins on credit card industry treatment of card customers—and thereby assist most average Americans— has slowly (but imperceivably?) begun changing our credit card rates, rewards, the appearance of our statements, and even the number of offers we receive.
But despite these significant changes in credit card law to this point, many Americans are still struggling to pay their bills on time, every time. Some can’t pay because they’ve taken a pay cut; in other cases, they’ve been laid off completely; in most they’ve simply lived beyond their means so long that the credit card interest is working far from in their best interest. If this sounds like you, for whatever the reason, you may be wondering what you can do if you can’t pay your bill on time.
First and foremost, it’s important to understand that you can attempt to work with your credit card company to get a stay on the payment until you can pay—especially if you can pay—only a little late. If at first you don’t succeed, ask for a supervisor. In fact, ask to be put through to the department that is responsible for negotiating debt workout arrangements. Often what one can’t or won’t do, another can (or is even designated to do).
If that doesn’t work, there’s now another light at the end of the tunnel. In fact, as of August 22, you now have even more solutions available to you if you find yourself late on your credit card payment. According to the Federal Reserve, if before August 22, you couldn’t pay your credit card bill you might have a late payment fee of $30. As a result, you would pay that $30, whether your minimum payment was $20 or $200. But as financial expert Michele Singletary reports, “Under the newly implemented rules for the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act, your credit card company cannot charge you a fee of more than $25 unless one of your last six payments was late — in which case your fee may be up to $35—or the credit issuer can show that the costs it incurs as a result of late payments justify a higher fee.”
What’s even better is that your credit card company can’t charge you a late payment fee that is more than your minimum payment. As Singletary put it, “For example, if your minimum payment is $20, your late payment fee can’t be more than $20. Similarly, if you go over your credit limit by $5, you can’t be charged an over-the-limit fee of more than $5.”
The end of outrageous fees is a bright spot for many facing the challenges of credit card debt during these tough economic times. Because, as everyone now knows at this point, there’s normally a heavy price to pay for playing with plastic. If you too have been effected by the economy and are wondering how to reduce your credit card debt and get back on track, knowing a qualified bankruptcy attorney can also help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Raleigh bankruptcy attorney. Durham bankruptcy attorney. Wilson bankruptcy attorney. Fayetteville North Carolina bankruptcy attorney. Lumberton bankruptcy attorney.
Health Care Costs Rise for Jobless Americans
Published Tuesday, August 31, 2010 @ 7:32 pm
Millions of Americans have been suffering from near double-digit unemployment—averaging at about 9.5 percent—for more than a year; unfortunately now news is coming to light that these very same jobless Americans are paying more than most when suffering from an illness, injury or basic medical conditions or assistance.
According to a recent report by The Huffington Post’s Laura Bassett, the average cost of health care plans for jobless Americans is steadily increasing. “Terminated workers are paying an average of $429 a month this year for individual HMO coverage, compared to $399 for the same coverage in 2009, according to a survey conducted by Aon Consulting. COBRA coverage for an entire family now costs an average of $1,251, up from $1,171 per month at this time last year. With COBRA costs on the rise and the average unemployment check totaling less than $300 a week, a growing number of jobless Americans are no longer able to afford their health insurance plans.”
The cause of these exorbitant COBRA costs is overuse: too many people turning to the system in too-tough economic times. “The increased frequency and duration of COBRA use is creating a significant strain on the program, leading to higher costs,” John Zern, executive vice president and Health & Benefits Practice director with Aon Consulting told HuffPost. “Those who are unemployed, and facing uncertainty about employment prospects and future COBRA availability, are utilizing the program more than we’ve traditionally seen to treat a variety of conditions prior to potentially losing coverage.”
As a result of these costs and uncertainties, laid off workers are struggling to afford COBRA with dwindling cash in their coffers. This sad scenario is made worse by when these same jobless Americans are found to suffer from preexisting conditions. These year-to-year increases come as the Obama administration ramps up their new health care reforms—reforms many of the aforementioned Americans are finding difficult to qualify for. HuffPost‘s Arthur Delaney recently reported that “only 1,200 people have been approved so far for the government’s Pre-Existing Condition Insurance Plan, whose steep premiums ranging from $140 to $900 a month make it no more affordable than COBRA for many unemployed Americans.”
To makes matters worse, even if you do find work in this anemic job market, you could face higher health care costs as well. Employed Americans can also anticipate employees their employer-subsidized plans to become more expensive in the next couple of years as employers shift the added expenses over to their workers. According to HuffPost, “65 percent of employers plan to increase cost-sharing in 2011 for deductibles, co-pays and out-of-pocket maximums, and 57 percent of companies polled said they will ask employees to contribute more for the overall cost of health care next year.”
In some cases, to take better care of their health care costs, many folks are missing mortgage payments, neglecting their car notes, and fudging on their credit card bills. But there is a better way. Whether you choose bankruptcy to dispense with unsecured debts keeping you from better medical care, or file a medical bankruptcy to alleviate the financial pain and suffering caused by an unexpected health care emergency, or both, the result is a clean slate that will help you better deal with these tough economic times—in sickness, and in health.
In a tough health care situation, especially one coupled with unemployment, contacting a qualified bankruptcy attorney can help you regain control of your family budget, conquer creditors and get back on a better budgetary track—yielding all with the right kinds of support, information and insights for a more fair financial future. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Getting Your House in Order to Get the House You Want Post Bankruptcy
Published Monday, August 30, 2010 @ 2:25 pm
Regardless of your current financial situation—from good credit to no credit—there’s no denying that we’re living in a tough housing market. So if you’re considering bankruptcy, you might think that if it’s a challenge to become a homeowner for those in the best financial times, it might be next to impossible to acquire your dream home if you’re currently recovering from a Chapter 7 or 13 bankruptcy filing.
The hard and fast truth is that getting your financial house in order following your bankruptcy, especially in order to qualify for a mortgage loan to get the home you want, is more possible than you think. That is, provided you follow a few essential steps to begin creating the proper financial foundation for building your own “home sweet home.”
Rebuild Your Credit
It’s always been important to pay your bills during and following your bankruptcy…and that’s especially true if you’re considering major purchases as your credit recovers. But building back your credit, by actions beyond paying your bills, can be the key to opening the door to home ownership yet again. While it’s not always simple to qualify, attempting to rebuild your credit potential through a secured credit card may be the quickest way to prove your financial capacity, responsibility and stability—even in tough economic times. While bad habits may have led to your bankruptcy, fiscal responsibility following your filing can pay dividends as you set your sights on home ownership.
Save All You Can
It’s vital to a more secure mortgage lending opportunity to not only rebuild the credit you have, but also to save money you need. In many ways—from relieving the burden of medical bills to curtailing credit card debt—bankruptcy can allow for the type of savings necessary to have a substantial down payment, and with it, a better shot at the home you want. Closing the gap between the value of your house and the amount your lender needs to provide makes their decision that much easier. You can build a better foundation in the future by being frugal now.
Take Your Time
While tough times might have called for tough measures, including your bankruptcy, it’s important to take a measured approach when trying to bounce back. Qualifying for a home loan post bankruptcy is a journey, not a destination, and can often take months, and more likely years. As a result, it is essential to be patient, and understand the process for generating the financial goodwill to get back in a mortgage lender’s good graces.
In short, financial problems do not represent a terminal condition when considering home ownership. And with the right economic outlook, planning and patience, you can construct a more than proper plan for making that house down the block your home post-bankruptcy.
Still unsure? Feel like you want someone to have your back when you attempt to build back credit post bankruptcy? Knowing a qualified bankruptcy attorney can not only help you conquer your creditors and face your financial fears, but also provide the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond the housing bubble. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Ten Years of High Unemployment Predicted (Are You Ready?)
Published Monday, August 30, 2010 @ 2:23 pm
Think the economic downturn is now only a temporary concern? Well, according to an authority on the history of financial crises—Carmen M. Reinhart, an economist at the University of Maryland—this country’s economy could suffer from super-slow growth and staggering unemployment for a full decade or more. This seemingly unending economic malaise remains a direct result of the collapse of the housing market and the economic turmoil that began some three years ago.
As a recent New York Times report explained, Ms. Reinhart’s paper (co-written with her husband, Vincent R. Reinhart, a former director of monetary affairs at the Federal Reserve) drew upon research she conducted with the Harvard economist Kenneth S. Rogoff for their book This Time Is Different: Eight Centuries of Financial Folly. “The Reinharts examined 15 severe financial crises since World War II as well as the worldwide economic contractions that followed the 1929 stock market crash, the 1973 oil shock and the 2007 implosion of the subprime mortgage market. In the decade following the crises, growth rates were significantly lower and unemployment rates were significantly higher. Housing prices took years to recover, and it took about seven years on average for households and companies to reduce their debts and restore their balance sheets. In general, the crises were preceded by decade-long expansions of credit and borrowing, and were followed by lengthy periods of retrenchment that lasted nearly as long.”
“Large destabilizing events…evidently produce changes in the performance of key macroeconomic indicators over the longer term, well after the upheaval of the crisis is over,” Ms. Reinhart writes. “Misperceptions can be costly when made by fiscal authorities who overestimate revenue prospects and central bankers who attempt to restore employment to an unattainably high level,” she warns.
If you don’t believe Ms. Reinhardt warning of continuing calamity with many financial leaders and policyholders as partly to blame, NYT also points to other economists who believe that consistent drops in inflation are causing economic deflation, a cycle of falling prices and wages, which could impact an already beleaguered economy in 2010.
So, what do these dire economic outlooks, conditions and trends mean for average families attempting to navigate their own uncertain financial times?
It means shoring up your financial foundation for the near (and possibly distant future):
Keep Your Day Job
While this may sound self-explanatory, doing what it takes to hold on to your job can be essential to keeping your head above water for the long haul. Working harder, longer, and even in multiple roles and jobs, is now the new norm of a not-yet-healthy economy. And, with one job available for every five people unemployed, if possible it pays to do what you can to keep your current paycheck.
Lessen Spending on the Luxuries
With back-to-school spending in full swing, and the holidays only months away, you may be considering some budget-breaking purchases. Take the time to reevaluate the essentials for your family’s budget, as well as more thoughtful gifts that may mean less wear and tear on your wallet.
Cut out Credit Cards
In addition to the traditional advice to stop using credit cards, in a tough economy it can also be a good idea to stop paying them. Spending hundreds, maybe thousands, a month on high interest consumer credit is money badly spent—funds that can’t be used to set up your savings for a rainy day (which in this economy could be “any day.”)
End the credit card cycle by joining the million Americans choosing bankruptcy this year, all to save themselves from another decade of debt. Your first step? Contacting a qualified bankruptcy attorney to help you regain control of your financial coffers, conquer creditors and get back on a better budgetary track—yielding all with the right kinds of support, information and insights during the coming years—come feast or famine. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Taking a Second Look at Third World America
Published Monday, August 30, 2010 @ 2:20 pm
In previous posts we’ve mentioned the findings of Third World America, Arianna Huffington’s new book taking an up-close-and-person and personal look at those hardest hit by the ongoing economic crisis: individuals, families and even whole communities.
In the process of capturing this unwelcome slice of American life, Huffington’s own news and information website The Huffington Post has “mapped the areas hardest hit by home foreclosure, unemployment and bankruptcy this year.”
To give you an idea of the depth and scope of the damage done by the financial meltdown, here’s an overview of how hard people are being in hit throughout a state like North Carolina.
Rocky Mount, NC
Named one of the “America’s Ten Most Impoverished Cities” by Forbes Magazine, Rocky Mount, NC, is a city where its citizens face unbelievably low median incomes, a crumbling infrastructure that means many pay more in utilities than their mortgages, and, according to HuffPost’s map, staggering 13% unemployment. Most surprisingly, these dramatic jobless figures existed even before the recent recession.
Cornelius, NC
In addition to recording the stats of a struggling nation, HuffPost is also accepting its stories. One of these telling tales hails from Cornelius, NC, where Army vet, Kent Walker shared, “I’m a 20 year Service Disabled Veteran with 2 lifetime benefits: (VA Disability and Army Combat Related Special Compensation (CRSC). After a[n] Army helicopter crash I was medically retired in 2004 and bought a house in Charlotte NC (Bank Of America headquarters) to complete that American Dream with my wife and 2 girls. Four years later, thanks to Wall Street, my Commercial Real Estate business was busted and I was in foreclosure. I paid into the HAMP program and was dragged along for almost 12 months before being denied last month. My two girls (age 4 and 8) and I sit here waiting for the Sheriff to show up with the “Notice of Eviction” while my wife is away deployed in the Army.” Unfortunately, the denial of this type of American Dream is common—even in places like Cornelius in Mecklenburg County, one of the wealthiest in a struggling state.
Youngsville, NC
In places like the tiny Triangle town of Youngsville, NC, citizens are facing their own unemployment and mortgage meltdowns. One anonymous victim of this uncertain economic era told HuffPost, “It feels as though the bank is doing whatever it can to move a foreclosure along. There is no working with us…homeowners who have been promptly paying the mortgage for 10 years.”
Do these stories sound familiar to you, your family and your friends? Have you been impacted by the financial crisis? In what ways are you bouncing back? What are you doing in your neck of the woods to keep from losing your shirt in “Third World America?” Click here to add your facts, figures and recent fortunes (or not) to The Huffington Post map.
Once you’ve shared your story—like so many others in North Carolina—it’s time to turn to someone who’s got your back when you’re in the process of bouncing back. That “someone” is inevitably a qualified bankruptcy attorney who can help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
New Reports Show a Slowing, if Non-existent Economic Recovery. So Where Does that Leave You?
Published Saturday, August 28, 2010 @ 8:17 am
Deciding to file bankruptcy requires that you take an honest assessment of your financial situation.
Now if our government would just approach our economy the same way.
News this week about an economic recovery that probably never was and a perpetuating recession are putting into a harsh perspective just how much time, energy and tax-payer money has been dumped into a financial revitalization effort that looks to have not just stalled, but pulled us backward.
What this shows is that perhaps Washington was simply too quick to react, moving forward with grandiose visions of another New Deal before they really knew what the deal was. From mortgage modification efforts to cash for old cars to homebuyer tax credits, nothing has done what it promised to do. People are still losing their homes and filing bankruptcy in record numbers.
In the interest of objectivity, the economy is growing, but at a rate that by historic standards typically characterizes an economy without any real strength behind it. And given what efforts have already been implemented, the numbers should invoke positivity and hope. Look around. Seeing any of that?
In an article on MSNBC.com, economist David Rosenberg said, “The fact that there has been no sustained response to all these efforts by the government to turn things around is testament to the view that this is not actually a traditional recession at all.”
Instead, the economy has responded in fits and starts, with each one creating an ever-deepening valley. Jobs are scarce, loans are very hard to get and people remain frustrated.
Making things worse is an upcoming mid-term election that will pit parties—and economic strategies—against one another that will be sure to only mask the severity of the country’s financial condition behind election rhetoric. People want to be elected, so things will be said and stats will be hurled around like carnival game slogans. In short, we won’t know who is telling the truth and the odds are very good the result will be the same regardless of which booth gets our money.
Strolling the country’s midway striving to detect the slightest pitch of sincerity within the din of disreputable discourse is a collection of the foreclosed, bankrupt and out of work being offered prizes of fixed mortgages, nicer credit card companies and gainful employment. To the surprise of only a few, the prizes are breaking before they can be put on the mantle.
The arguments as to why this recession is not improving are deep and thick, mired in hard-to-discern cable news arguments and a national media that only further divides the argument. The housing crisis, for example, is much worse than many thought. Others believe its the lack of employment. Maybe it’s the lack of credit available to growing companies. Who really knows?
According to the Fed (Federal Reserve) America’s total household asset value, which is home value, retirement funds available, savings and the like, has decreased by $11.4 trillion since 2007. Basically, that’s a complicated way of saying people have way less money than they did a few years ago.
So where does that leave you? Well, on an island for starters. That is, it’s time to do what is needed for you and your family. If you have a job, do whatever it takes to hang on to it. And don’t give another dime to the credit card companies. Consult a bankruptcy attorney today and find out how a properly planned bankruptcy can put you back in charge. Call today: In North Carolina, 1-800-899-1414
Take your time when replying to job postings. A shotgun approach to sending resumes rarely hits the mark.
Published Friday, August 27, 2010 @ 10:00 am
The job market is a tough, ugly and sometimes downright brutal place to have to spend time. Heck, July alone crammed well over one hundred thousand into an already really tight space.
The signs you see to help yourself out—job postings—are all over the place it seems. But who’s landing them? Well, maybe this post can help you be the next person who finds their way back into the world of the employed.
According to an article on CNN.com, employment experts agree that one of the most critical things a person can do when applying for a job is craft their resume to the specifications asked for on the job posting. Consider the position’s description as a proposal for a service needed. Your resume then, should become your answer to that need. And because all needs are different, you need to make sure you are not sending your square peg to fit their round hole.
In many instances, you may simply not have what it is they are looking for. Sure, some of it sounds familiar but in the end, it’s either work you haven’t done in years or are not at all qualified to do. So applying to these types of postings can become a serious time drag.
We understand that a current financial situation could have you pressed for time or that your Chapter 13 payment plan is starting to become a problem. Be confident that your time is best spend focusing on potential jobs for which you are a good fit. Do not use a shotgun approach. The time you spend researching an employer, discovering if you know anyone in the company and writing your materials to suit the need should be considered an investment. In time, it will pay off.
When working on your resume, re-use words that appear in the job ad. Do not go overboard. Connect the job’s keywords with responsibilities in your background. These words and terms are how human resource professionals scan through the hundreds of resumes they often receive for a single availability.
Do the same thing in your cover letter. You can use a common introductory paragraph format most of the time but make certain you address the job title. Consider:
“Please consider the enclosed resume for the available JOB TITLE position. I am a tenured industry professional with NUMBER OF YEARS IN INDUSTRY of experience and feel certain that I could provide a quick and positive impact to your organization.”
Your cover letter should be only a summary of your resume. The point of the cover letter is to get them to open your resume. So again, include related job terms, cite specific years of experience and lace it with persuasive language.
Most job needs today are being communicated online and asking for a resume to be attached. It is absolutely key that you use the e-mail itself as a marketing tool. Do not just type “resume attached” and hit send. Use the subject line to include the job title being applied for and unless specifically asked not to, consider inserting a quick one-liner. For example:
“Web site copywriter position – 8 years of experience.”
The body of your e-mail should be the same type of cover letter you would write if submitting on paper. This may sound like common sense to some people but you would be surprised at how many examples hiring professionals could cite where this is not the case. Candidates are in the screening process the moment their e-mail appears in the recipients inbox. Make it count.
Foreclosures May Have Peaked, But Mortgage Delinquencies Still Rise
Published Friday, August 27, 2010 @ 9:47 am
In the hard-hit housing market, there’s some good news and some bad news. First the good news: according to the Mortgage Bankers Association, for the first time since 2006, the number of loans in the process of foreclosure fell in the second quarter. But then there’s the bad news: even with these drops in default leading to foreclosure, still more early delinquencies are apparent all across the county as homeowners continue to struggle with high unemployment and job insecurity.
According to The New York Times, “The problem is no longer high-interest subprime loans, many of which have worked their way out of the system. The critical area now is prime loans, where defaults are driven by stubbornly high unemployment.” So while their home loan costs come as no surprise, without a steady paycheck, many Americans are falling behind on even the most predictable of expenses: their mortgage.
The new information about the detriments of early delinquencies is paired with a forecast that homeowners will have a tougher time selling the very homes that are draining their coffers. As the NYT reports, “Sales of existing homes in July fell by 26 percent from the same month last year. Sales of newly built homes dropped during the month by 32 percent from 2009. It was the slowest July for new homes in records stretching back to 1963.”
This bleak housing market means that millions could still lose their homes, with the associated impacts on consumers’ ability to spend, get loans from banks already beleaguered by another wave of defaults and be a part of a further kink in the chain of buying and selling large real estate assets that could have provide a much-needed shot in the arm to the wounded American economy.
Plus, the perils buying a home and falling into foreclosure only add to the inventory of homes at a time when there are already too many on the market. This situation spells a push down of already bargain basement housing prices that may force underwater borrowers to simply give up. As the NYT put it, “The reason people walk away from their loans in so-called strategic defaults is because they owe so much more than their home is worth. The more the market goes down, the more people are placed in this unhappy position.”
Fortunately, these “unhappy positions,” are precisely the scenarios for which bankruptcy was created. If you’re having trouble making your mortgage, living in a home that is hopelessly underwater, and/or residing in an area that is currently devalued and an eyesore for the foreseeable future, bankruptcy can help get you back on the right side of the proverbial tracks: allowing you to surrender your underwater home, negate your personal and financial liability, and move forward financially.
Don’t wait for your own personal housing bubble to burst. Join the millions of American homeowners who have found immediate help to keep (or flee) their hard-hit homes. If you have been hit hard by the lingering housing crisis, knowing a qualified bankruptcy attorney can help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Co-Ownership in Homestead Implications for Bankruptcy
Published Friday, August 27, 2010 @ 8:21 am
In the annals of bankruptcy law, special rules have come to dictate how certain property—from homes to cars to household items—is categorized and dispensed post-filing. Specifically, most states have some sort of homestead exemption that protects some or all of the equity in the debtor’s home from the clutches of creditor claims. The Bankruptcy Code provides debtors with a homestead exemption—an exemption that is doubled for joint owners.
But issues can arise in a bankruptcy’s homestead protections when a non-resident co-owns the home, such as when a parent co-signs with an adult child to help subsidize the child’s first home.
In this situation, where parents purchase a house for a child (not uncommon in these tough financial times) and are also on the deed as co-owners of their child’s home, and the child or even the child and parents then later face credit problems and are considering bankruptcy, questions can arise as to whether a Chapter 7 filing by one party would affect the other’s interest in the home.
In one particular case, the jointly-owned house qualifies for unlimited homestead protection under current bankruptcy rules. For example, if the child files for Chapter 7 bankruptcy placing his partial interest at issue, in most cases the bankruptcy trustee has no interest or rights relating to the parents’ interest in the home. In addition, the child’s ownership interest in the home, as his or her primary residence, is also protected under bankruptcy’s homestead exemption.
In the other scenario, wherein the non-resident, co-home owning parents are the insolvent party who file for bankruptcy, their bankruptcy trustee may have a claim against the their interest in a child’s home because the parents do not live in the home and are therefore not protected under the homestead exemption. While the bankruptcy trustee could not force the sale of the homestead while the child is using the home as his or her primary residence, the trustee could instead place a lien on the parents’ interest in the home, payable upon the sale or refinancing of the home.
Depending on whether the child pays all of the taxes on the home, all of the mortgage payments, takes care of all other home expenses and exclusively uses the property, the parents can attempt to keep the trustee’s hands off of the home altogether by arguing they have no equitable interest in the house subject to the bankruptcy estate; in short, all beneficial interest in the house has been transferred from parents to child. To further substantiate this “hands-off-the-home” argument, the parents can provide written evidence in the form of a gift tax return or other written documents supporting their intent to “gift” the homestead to the child.
Regardless of whether the parent or child is the bankruptcy bound party, the above scenarios provide further examples of why parties should tread cautiously when considering joint-ownership of assets.
Because of the intricacies of joint ownership, the homestead exemption and/or bankruptcy law, getting to know a qualified bankruptcy attorney is your first best step down the right path to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Need a Job? Industries That Need You NOW
Published Friday, August 27, 2010 @ 8:17 am
With the U.S unemployment rate holding steady at an unsettling 9.5% this past month— signifying more than 14.6 million out-of-work Americans—news that some of our nation’s industries are actually suffering from worker shortages may come as a surprise.
What’s to blame for the discrepancy between the near double-digit national unemployment rate and the dearth of workers to fill certain jobs? One word: qualifications.
In fact, according to CareerBuilder’s 2010 Mid-Year Job Forecast:
- One-in-five employers (22 percent) reported that, despite an abundant labor pool, they still have positions for which they can’t find qualified candidates.
- Forty-eight percent of HR managers reported that there was an area of their organization in which they lacked qualified workers.
- Health-care employers were the most likely to report a skills deficit with 63 percent of HR professionals in large health-care organizations stating they have a shortage of qualified workers.
Wondering what jobs are out there? Trying to figure where to focus your job training for the best shot at a new career? CareerBuilder shares the “employee-hungry sectors” currently in need of a ready, willing and able workforce, including:
Skilled Labor
According to a talent shortage survey conducted by staffing firm Manpower Inc., “skilled trade jobs (HVAC, electricians, plumbers, pipefitters, etc.) are 2010′s hardest jobs to fill.” In the current economy, skilled trade jobs are attractive because they often allow for on-the-job training, yielding a paycheck while you acquire necessary labor skills in the form of paid apprenticeships.
Transportation
Recent increases in manufacturing have created a rise in demand in warehouses to store goods and transportation to deliver them. According to a 2010 job outlook study done by online ad research firm Borrell Associates, “the transportation, warehousing and utilities industry is expected to see 31.6 percent more job openings this year than it did in 2009.” Not only is there a high demand, but also there are few obstacles to breaking into an industry which normally requires only that you to be of a certain age, have a Commercial Driver’s License, and a clean driving record.
Automotive
A rebounding auto industry is looking to hire back much of its workforce. And with automotive salaries topping most others in the manufacturing field, it pays to accelerate your job search in this industry.
Education
Despite budget cuts and layoffs, teachers are still needed, especially in the areas of special education, mathematics, bilingual teaching and foreign language. While low salaries and high stress are often culprits in low teacher retention, career changers are being heavily recruited into education with liberal teaching certification programs.
Healthcare
According to a December 2009 survey by AMN Health Care Services, “95 percent of hospital CEOs agreed that there was a shortage of physicians in the U.S.; and from 2008-2018, the BLS reports that 600,000 new jobs will be created in nursing alone.” As such, 10 of 20 of the fast-growing occupations is in the healthcare field.
Engineering
With many of its most qualified workers retiring, the engineering industry is in dire need of trained professionals able to take charge in jobs spurred by economic stimulus funds. These well-paid positions often require engineering degrees, but also can be filled by math or science majors.
Customer Service and Sales
Building client relationships and revenue remains a priority as the economy attempts to rebound. According to CareerBuilder’s Mid-Year Job Forecast, that means “25 percent of hiring managers surveyed said they plan to hire workers for customer service positions in the second half of 2010, while 22 percent said they’d be hiring more salespeople.” This is great news for an eager workforce looking for jobs requiring a strong work ethic and with no real educational requirements.
Why hiring a bankruptcy attorney is the best way to a positive financial future
Published Thursday, August 26, 2010 @ 11:54 am
So, like a very large number of Americans today, you think bankruptcy is your best route out of the financial doldrums. After all the credit counselors, self-help books and Craigslist charlatans, it’s likely that you’ve grown tired of the debt cycle. We understand. That is what brings a lot of clients to our offices.
However, how do you go about filing bankruptcy? And furthermore, is an attorney really necessary? Well clearly, we believe our role in the process is essential to people getting the most benefit possible out of filing. But sure, that’s our job, and we do get paid for it. Nevertheless, it doesn’t mean we are not sincere in wanting to help. Truthfully, today’s Bankruptcy Code is a tough one to navigate alone. The financial industry—the people to whom, generally, you owe money—have gone to great lengths to plant the trail to financial freedom with booby traps of legal jargon and pitfalls of prickly requirements.
Is it legally mandated that you hire a bankruptcy attorney? Nope. Is it wise to have one at your side? Absolutely. Here’s why:
The Bankruptcy Abuse and Consumer Protection Act of 2005 changed the entire landscape of personal bankruptcy, instituting, among other things, the Means Test, a standardized way to determine if you have enough “means” to qualify for a Chapter 13 instead of a Chapter 7. The difference, on a general level, between the two being that in a 13 filing, you pay your creditors a set amount each month for five years until the debts are reasonably settled.
By lobbying for this section of the reform bill, companies who lend credit were able to get government backing for getting paid. It also gave them additional freedom to more aggressively market credit products because they knew that after the bill’s passage, more people would be legally obligated to keep paying them. Even though most credit card companies have potential losses to bankruptcy and default built into their business plans, the new law meant fewer people could “abuse” (in their eyes) the bankruptcy system by running by large bills and egregiously refusing to pay them.
As you can imagine, the Means Test carries with it a host of paperwork and processes. An experienced attorney can walk you through it, explaining what it all means and how it fits into the overall plan. And truthfully, the entire legal system—lawyers and judges—still have trouble figuring out aspects of the 2005 reform. It’s largely considered a poorly-written bill that was largely crafted by financial industry lobbyists and executives, not lawmakers.
Before 2005, it was “easier” to file on your own. But still not highly recommended.
There are, without question, bad lawyers out there. We know a lot of them. In many cases, a person would be better off going with a “free” street service than a bad attorney. Given our longevity in the industry, which can be easily proven and supported, we like to think we’re not like many of the “other guys.”
A good attorney is willing to listen first, as not all cases fit all firms. So ask for a few minutes on the phone and don’t feel pressured by a hard sell. Also, don’t let yourself get bounced around from one paralegal to another without progress. You will deal with them, sure, but after you have entered the process, if you begin to feel less important than when you originally called, maybe it’s time to move on.
We can name a number of reasons why using an attorney is the best way to experience a healthy bankruptcy. But in the end, that’s up to you to decide. Look at our Web site, ask around and make a few calls. We hope we can help. If you decide that you’d like to know whether bankruptcy is the right choice for you, please give us a call to set up your free initial consultation at 1-800-899-1414.
Giving Back Where (and When) You’d Least Expect It
Published Thursday, August 26, 2010 @ 11:49 am
While it is well known that the United States is a nation of givers—with an estimated $227.41 billion sent to charitable organizations in 2009—what might be surprising is what groups are actually giving the most.
According to a recent New York Times article entitled The Charitable Giving Divide, “For decades, surveys have shown that upper-income Americans don’t give away as much of their money as they might and are particularly undistinguished as givers when compared with the poor, who are strikingly generous. A number of other studies have shown that lower-income Americans give proportionally more of their incomes to charity than do upper-income Americans. In 2001, Independent Sector, a nonprofit organization focused on charitable giving, found that households earning less than $25,000 a year gave away an average of 4.2 percent of their incomes; those with earnings of more than $75,000 gave away 2.7 percent.”
The fact that Americans are still giving, especially the poorest of our citizenry, is striking given the nation’s continuing economic malaise, high unemployment rates and ever-increasing number of bankruptcy filings. But, as the NYT reports, “Empathy and compassion appeared to be the key ingredients in the greater generosity of those with lower incomes. And these two traits proved to be in increasingly short supply as people moved up the income spectrum.”
As long as those facing the toughest financial times and feeling it the most, are also feeling the most empathetic and giving the most, it’s important to understand how declaring bankruptcy can affect your ability to give to your favorite charities. While, bankruptcy courts can find fraud in charitable donations if a debtor is perceived to be deliberately avoiding paying their creditors, courts will also take into account the timing of the gift, the payment amounts, and the circumstances surrounding these gifts. For example, if you’re a lifelong devout Catholic who has given an annual 5% donation to your local Catholic church, your donation will likely not be strenuously judged following a bankruptcy filing. Instead, bankruptcy will allow you to free up the savings to support your favorite charity in the near, and distant future.
Some simple tips for keeping track of your charitable donations before and during your bankruptcy filing, include:
Staying Informed About Charitable Organizations
Before giving money or time to any charitable organizations, it’s important to obtain written details, including the organization’s financial report, the amount of your donation that will go to overhead costs and the specific project your gift will support. This will give you the peace of mind that your piece of the financial pie is being eaten up by the right initiatives. Click here to find charities registered with the Better Business Bureau and meet their Wise Giving Alliance Standards.
Avoiding Cash Donations
To avoid being taken for a ride by a charitable solicitor, always make your donation by check: payable directly to the appropriate organization.
Protecting Your Personal Information
Avoid solicitor scams by resisting the urge to give credit card or other personal information directly to that person. Always request official organizational confirmation and materials for submitting individual donations.
Keeping Track When You Give Back
Like your mortgage payment or utility bills, it’s best to always budget for charitable giving in your monthly payment plan. In terms of keeping the right records, for gifts of less than $250, a cancelled check or credit card statement will meet IRS documentation requirements. For larger gifts, you will need to obtain a properly worded receipt from the charitable organization as proof of your tax-deductible contribution.
In these uncertain economic circumstances, it’s important to realize that you can decline a donation and give at a later time.
When in Doubt, Just Say “No.”
Want to find out more about how bankruptcy protects charitable givers—givers who may end up needing help themselves? Check it out with the Law Offices of John T. Orcutt. In North Carolina, call for a totally FREE consultation at 1-800-899-1414 or visit their website at www.billsbills.com.
Americans Looking to Other Options in Owning a Home
Published Thursday, August 26, 2010 @ 11:46 am
During the mid-2000s, housing prices reached stratospheric levels with mortgage lenders more than willing to be liberal with their loans, selling the idea of the “home as American Dream” to anyone who would listen—whether they were qualified or not. But, if the recent housing crisis has taught us anything, it’s that home ownership isn’t always what it’s cracked up to be.
So, after the recent mortgage meltdown, many are wondering: “where do we go from here?”
That’s the very question asked in a recent report by NPR. In it, correspondents found that after two decades of expansions in home ownership—fostered by government mortgage guarantees by the now much-maligned likes of Fannie Mae and Freddie Mac—many policymakers are looking at housing finance reform as a top priority to the nation’s prospects for economic recovery.
“The two mortgage finance giants made astonishing mistakes,’ Raj Date, executive director of a financial policy think-tank called the Cambridge Winter Center, told NPR’s Audie Cornish. Ultimately, Date said it might be time to rethink homeownership as an American ideal. ‘The world we live in today is not quite the world that existed in 1950,” he noted. “The nature of households and the rate at which they dissolve and reform, the nature of work and its transient nature across geographies are all things that suggest that maybe, just possibly, a middle-class American shouldn’t stake themselves to an illiquid, very large, concentrated, leveraged asset —- that is to say, a house.’”
As a result, many are revisiting (and reconsidering) the idea of the “white picket fence,” and turning to rental property as a way to prevent real estate from owning them—at least financially—instead of the other way around.
“Homeownership has gone from being pretty much an unmitigated good — something that would provide stability—and instead has thrown a huge cloud of doubt over the value of homeownership for a lot of people,” Alyssa Katz, author of Our Lot: How Real Estate Came To Own Us told NPR.
Unfortunately, for many Americans, alternatives to home ownership, namely renting property, means relinquishing that long-held sense of success and status that seems almost a birthright for many in this country. And beyond national sentiment, renting can be a precarious living scenario, reliant on landlords and leaseholderss for repairs, renewals and reliability that, in this uncertain economic era, is often a luxury. Between the social and socio-economic stigma and the relative lack of security, even in these tough financial times, renting can be many families’ last resort.
As a result, it’s important for homeowners with dwindling equity, underwater mortgages, or facing foreclosure to consider other options in attempting to save their shelter. Of these options, Chapter 13 bankruptcy can provide a tried and true alternative to moving onward and, in some cases, downward.
Don’t wait for your own housing bubble to burst or become a reluctant renter. Join the millions of American homeowners who have found immediate help to keep their hard-hit homes. If you have been hit by the hovering mortgage crisis, knowing a qualified bankruptcy attorney can help you conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
New home sales hit all-time low. But it’s no longer just about a tax break.
Published Thursday, August 26, 2010 @ 11:41 am
Just a few years ago, home ownership was something available to just about anyone—an economic reality that to an extent, contributed to where we are today. Nevertheless, the mortgage boom helped a lot of people realize that benefits of home ownership. It’s simply too bad that it came with so many hidden financial pitfalls, many of which have subjected sub-prime borrowers (and also those with standard mortgages) to serious, long-term hardships.
Today, almost the exact opposite has become reality. Mortgages are exceptionally more difficult to obtain and when they can be approved, the houses themselves don’t qualify because of drastically diminishing real estate values.
This week, reports surfaced that new home sales are at an all-time low. Well, at least since the government began keeping records in the early sixties.
Housing industry analysts and real estate professionals who are on the street trying to sell are waving their fingers at the expiration of a Washington-backed tax break for new home purchases, perhaps the federal government’s most successful economic resuscitation strategy.
Last year at this time, experts across the cable channels confidently predicting that by this summer, we would be breathing a sigh of relief at a blossoming economy. Instead, it appears we have stagnated at a new normal. Housing sales are down 32.4 percent from last July, which was a time widely thought of as the “heart” of the downturn.
For the last few decades, home ownership became the definition of financial stability. It was sold to people as a way to reach the “good life” that helped color America as the land of opportunity. The collective nationwide strive to qualify for a mortgage eventually became a target of the financial industry, from politicians on influential economic committees to Wall Street executives. Finally, houses became a real commodity, bought and sold as quick investments and wealth starters for people at all income levels, not just the upper middle class.
Today, home ownership is a stain on the financial records of families across the country. People are bitter, saddened and broke. A rising tide of personal and commercial bankruptcies can be attributed directly to the real estate crash. For citizens who once used home ownership as a goal on their way out of a separate financial setback, disappointment abounds.
There is more to the reported decline in housing sales than just the expiration of a tax break, according to industry watchers.
Chris Low, a chief economist with FTN Financial, a financial services and analyst group, believes there is a mindset problem in America relative to home buying. “A double-digit drop suggests to me that there wasn’t just a tax effect at work in July, but a change in sentiment, a change in the willingness to make such a big purchase. It is especially surprising given where mortgage rates were. It is just a reminder of how much work there is still left to do before housing can be deemed healthy again.”
Normally, factors like low interest rates spur home sales. That is simply no longer the case. People, in short, are scared. And there is also a very overt mistrust in the financial industry. The have-nots are seething at the haves, or at least those who are perceived to have.
The situation in the foreclosure world has become so brutal that houses are selling for pennies on the dollar to investors and families are able to remain in a home without paying for months before a back-logged bank official can make steps toward legal eviction.
It appears, that at least for the next few years, American home ownership isn’t going to carry the status it did just three or four years ago. Many believe it may never be again.
No Real Estate Boom Anytime Soon
Published Thursday, August 26, 2010 @ 9:27 am
Debtors attempting to avoid bankruptcy by waiting for housing prices (and equity) to increase may be waiting a long time. In fact, according to The New York Times, wealth-building via housing booms may have also gone the way of guaranteed pensions, free healthcare, and secure employment.
Per the NYT, “many real estate experts now believe that home ownership will never again yield rewards like those enjoyed in the second half of the 20th century, when houses not only provided shelter but also a plump nest egg. The wealth generated by housing in those decades, particularly on the coasts, did more than assure the owners a comfortable retirement. It powered the economy, paying for the education of children and grandchildren, keeping the cruise ships and golf courses full and the restaurants humming. More than likely, that era is gone for good.”
This rather bearish news on the state (and future) of the housing market is capped by the finding from Dean Baker, co-director of the Center for Economic and Policy Research, who “estimates that it will take 20 years to recoup the $6 trillion of housing wealth that has been lost since 2005. After adjusting for inflation, values will never catch up.”
Unfortunately, many Americans aren’t buying this news on the housing bomb. “In an annual survey conducted by the economists Robert J. Shiller and Karl E. Case, hundreds of new owners in four communities — Alameda County near San Francisco, Boston, Orange County south of Los Angeles, and Milwaukee — once again said they believed prices would rise about 10 percent a year for the next decade.”
In truth, the housing-as-investment ideal that arose post World War II hasn’t been on solid ground for decades–when inflation of the 1970s and favorable tax policies increased housing prices followed by a long decline in mortgage rates in the early 1980s. In the next decade, rates rose, allowing American homeowners to withdraw about $100 billion in home equity houses. These billions paid for a lot of luxury—luxuries that we’re now paying for, in spades, since the inflated home prices burst the housing bubble in the 2000s.
“The experience we had from the late 1970s to the late 1990s was an aberration,” said Barry Ritholtz of the equity research firm Fusion IQ. “People shouldn’t be holding their breath waiting for it to happen again.”
With substantial sums of money available from home equity in the 1990s now a distant memory, many homeowners in the new foreclosure-plagued, underwater American reality are fortunate to still be solvent. For others, the tumble in housing prices has taken it’s toll, leaving many wondering where to turn no that their own personal “home sweet homes” are leaving a sour taste in their moths.
Don’t wait for your own personal housing bubble to burst. Join the millions of American homeowners who have found immediate help to keep their hard-hit homes. If you have been hit hard by the lingering housing crisis, knowing a qualified bankruptcy attorney can help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Filing for Bankruptcy Saves Everyone Money
Published Wednesday, August 18, 2010 @ 7:44 am
With many experts predicting a protracted economic malaise with imperceptible growth and stubbornly high joblessness, bankruptcy filings appear to be in true recession-era form, rising in recent months, and, according to many analysts, increasing with no end in sight. In fact, during early summer, the American Bankruptcy Institute (ABI) validated these fears, reporting that personal bankruptcy filings increased in 2010 compared with only one year ago.
As bankruptcy figures continue to rise, many critics are charging insolvent Americans—seeking shelter from personal bankruptcy—as being responsible for raising interest rates, cutting consumer confidence and retail sales, and outfoxing creditors while other, less indebted Americans are required to pick up the slack…and the tab. In reality, though, Americans who have filed for bankruptcy are in many ways saving all of us money. And you could too, while also saving yourself years of bills, harassment and stress.
Don’t believe it? Are you considering bankruptcy, but feeling guilty about adding to broader socioeconomic burdens? Well fear not. The truth is that avoiding bankruptcy costs more, and here’s why:
Bankruptcy Avoids Expensive Creditor Litigation
Creditors can be an ever-present, and unwelcome, part of the lives of many debtors. And when consumers attempt to go it alone and avoid bankruptcy, they often find themselves embroiled in creditor lawsuits—battling banks and other businesses for returns on debts they cannot afford to pay in the first place. Because creditor litigation can be more expensive than the debts in question, often ending without a resolution and with the debtor still unable to pony up, these lawsuits act to siphon money from creditor accounts, wasting not only their money, but also draining resources from the business’s community: including its ability to keep people employed, and support the community of people on which it depends. By contrast, a debtor who files for bankruptcy not only avoids litigation and further creditor harassment, returning what they can to the creditor for a clean financial slate, but it preserves those business resources that can keep a broader community afloat in these tough financial times.
Bankruptcy Can Stop the Foreclosure Crisiss
With the economy in the gutter, underwater mortgages an everyday occurrence, and home equity not what it used to be, barring a bankruptcy filing, Americans are losing their houses to foreclosure in unprecedented numbers. But debtors who avoid bankruptcy and lose their biggest asset aren’t the only ones suffering from a loss: communities with high foreclosure rates lose their financial value, aesthetic value and are less safe than communities with homes that are filled to the brim with families. This ripple effect to the larger community could be solved with a bankruptcy filing—all from the safety and comfort of your own “home sweet home.”
Bankruptcy Can Mean Increased Productivity
If you’re reading this blog you are likely considering bankruptcy. And if you’re considering bankruptcy, you know the tremendous emotional and physical toll that being buried in debt can have on a person’s life. Overwhelming stress, doubt and even fear can result from having too much debt to handle and feeling there’s no way out. And this stress cannot only impact you, your family and your friends, but also your work, your co-workers and your ability to get the job done. In turn, bankruptcy can reduce stress and financial distraction, allowing a person to be more productive—at their job and in their community—for months and years to come.
If you are drowning in debt and creditors are harassing you, underwater in your mortgage and facing foreclosure, or succumbing to the stresses of your poor financial portfolio, bankruptcy can be the key to better financial future for you, and the people around you.
If you meet any of the above criteria, it’s never been more important to act now, seeking competent and experienced bankruptcy counsel from the very start. An experienced bankruptcy attorney knows the ins and outs of the bankruptcy process and can assist throughout your case.
The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Anxiety Grows as the U.S. Recovery Stalls
Published Tuesday, August 17, 2010 @ 9:43 pm
With joblessness on the rise, retail sales in a slump and the stock market on the skids this week, many experts are predicting more economic uneasiness with a coinciding side of protracted unemployment troubles.
According to a recent Los Angeles Times article, “The U.S. economy and stock market ended one of the grimmer weeks of the year, as disappointing retail sales figures released Friday combined with other dismal data to heighten fears that the nation’s nascent recovery is stalling. The retail report, which came only days after the Federal Reserve announced a new effort to prop up the economy, fueled growing concern that the U.S. is in danger of falling into a double-dip recession.”
The report comes as Washington debates the need for (and fiscal possibility of) a second stimulus infusion in order to spur economic growth and avoid further state and local layoffs and cuts. But while lawmakers stall, so does the economy. And even though economists with Goldman Sachs Group Inc. said in a report that a double dip recession is unlikely, they “nevertheless pegged the chance of one at 25% to 30%, which it termed ‘unusually high.’ The retail-sales numbers aggravated those fears. Though the Commerce Department reported a 0.4% rise in sales in July, the improvement was due entirely to rising gasoline prices and pent-up demand for cars. Sales would have fallen 0.1% without those items.”
As the LA Times reports, small businesses are among many American laborers feeling the pinch of the tepid economy, especially in terms of retail sales in luxury items and services—from cosmetics stores to fitness centers. “The government talks about helping businesses, but we’re not seeing one benefit of anything they’re doing, and neither are my friends and neighbors,” said Maurice Stein, owner of a Burbank, California retailer called Cinema Secrets. “We knew that the economy was bad. We never expected this to go so long.”
These sentiments about the economic malaise are echoed all across the country as well. Many individuals and small business owners—from Northern California to North Carolina—are facing layoffs or are already unemployed and drowning in debt, using dwindling federal benefits and credit cards just to get by.
So what can you do to make a new start as this recessionary climate continues onward?
If you’re like the majority of Americans, waiting on Washington to fix our financial woes is not an option. If you are already struggling financially and fear the further economic impacts of a widening recession, now may be the best time to make a guaranteed fresh start through bankruptcy. Discharging personal debt like credit card bills through bankruptcy is, in some cases, the only sure solution for so many Americans facing years without steady income or small business owners trying to hold to their hard-earned assets.
If this sounds like you and you’ve already found yourself in dire straits just as America faces what seems like one unending economic episode after another, knowing a qualified bankruptcy attorney is the first best step to help you regain control of your coffers, conquer creditors and get back on a better budgetary track—yielding all with the right kinds of support, information and insights at a low cost. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Surveying 20 Million People’s Social Security Safety Net
Published Tuesday, August 17, 2010 @ 7:43 pm
Just as Social Security seems to be running into the red—paying out more dollars than it’s taking in—it also appears the social welfare program has never been more important. In its 75th year, amid the worst economic crisis since the Great Recession, Social Security is acting as a financial lifeline to America’s most needy citizens. And without it, the consequences would be dire.
Based on a recent report by The Huffington Post, “If [Social Security] benefits were to be significantly cut, 19.8 million more Americans would be thrust in poverty, according to a recent report by the Center on Budget and Policy Priorities. In addition to supporting the elderly, Social Security is currently keeping more than 1 million children and more than 5 million adults below the age of 65 above the poverty line.”
The report also finds that cuts to Social Security would be especially debilitating for a nation composed of nearly 12% women over the age of 65 who currently live below the poverty line. Without Social Security nearly half of them would have no way to stay afloat. As a result, many of these mature women and millions of other Americans who depend on Social Security are, according to The Huffington Post, “watching closely as a bipartisan commission set up by President Obama mulls over the idea of cutting funds to the program to reduce the deficit. HuffPost‘s Ryan Grim reported that nearly 85 percent of American adults polled oppose cuts to Social Security, according to a recent survey conducted by GfK Roper, and 72% ‘strongly oppose’ the idea.” Within this AARP survey included a conclusion that flies in the face of conventional wisdom: half of all non-retired adults said that they would be willing to pay higher taxes to ensure that Social Security will be there for them.
Other themes revealed in the survey include:
Strong Desire to Have Social Security Despite Low Confidence in its Future
According to the survey, a strong majority of respondents not too or not at all confident of Social Security’s future as a program agreed that even if they didn’t need it, they’d like to know it’s there. A majority of respondents also agree that without Social Security, their families would be hard hit in the aftermath.
Protecting Social Security Trumps Dealing With the Deficit
Given their desire to have Social Security as a program available in later years, it’s not surprising that half of respondents surveyed would also be willing to pay more taxes to ensure the program’s existence in retirement. This contravenes the wisdom of many a politician’s election-year vote wrangling under the premise of dealing with the deficit at any cost, including cuts in Social Security spending which cover unemployment benefits as well as disability and retirement payments.
Even Younger Americans Support Social Security
According to AARP, “Nine in ten adults under age 30 believe Social Security is an important government program, and over nine in ten want to know it is there when they retire just in case they need it.” In short, while they’re not to confident that it will be there for them when the time comes, younger generations value this 75-year-old social welfare institution as much as the next person.
As The Huffington Post’s Ryan Grim concluded, “The strong support for the program isn’t ideological but personal and visceral. Cutting Social Security would bring real pain, survey respondents said. Just shy of two-thirds say that their family would be hit hard if Social Security were cut. Eighty percent of Americans say that Social Security alleviates the financial burden of taking care of parents. Prior to the enactment of Social Security, the elderly consistently drained the savings of their children in their waning days or were shipped off to homes known as ‘poor houses’ — a phrase that survives today as a cliché disconnected from its original use.”
If you’re struggling with dwindling benefits, knowing a qualified bankruptcy attorney is the first best step to help you regain your own “social security.” Chapter 7 or 13 can help get rid of unsecured debt payments and let you focus on what really matters. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Using Bankruptcy to Stop Your Eviction
Published Thursday, August 12, 2010 @ 2:06 pm
In this underwater housing market, the old adage that renting a home is the same as throwing your money away can be grossly inaccurate. In many cities, from San Francisco to Dallas to New York, “price to rent” ratios make leasing property a no-brainer. But now, even smaller cities like Omaha, Oklahoma City and Kansas City appear on top ten lists of places better to rent than own.
Yet, even in a period where renting can be financially friendlier than owning, many renters continue to face this tough economy head-on, with no chance of home equity to afford them a substantial bailout. In turn, some are turning to bankruptcy in the hopes of getting back on their financial feet and avoiding eviction from their “Rental Sweet Rental.”
If you too are considering bankruptcy as a way to avoid being evicted from your apartment or property, here are a few fast facts that you should consider:
Better Safe Than Sorry: Continue Paying Your Rent
While a bankruptcy filing will trigger an “automatic stay” which protects debtors and their property from creditor actions, it is recommended that you continue paying your rent for as long as you can. The reason is simple: if you fall behind on your rental payments your landlord will have the right to start the eviction process—a process that’s easier to avoid than to stop.
The Power of the Automatic Stay
In the alternative, if you are already behind on your rent, but your landlord has not proceeded with an eviction or won an order to evict you, your bankruptcy filing will trigger the automatic stay and stop the eviction.
When the Automatic Stay Won’t Work
In some cases, the court will afford a landlord an exemption to the power of the automatic stay. In this scenario, your landlord can evict you despite your bankruptcy filing. If you are considering bankruptcy to stop your eviction, talk with an experienced bankruptcy attorney to understand the possibilities of your landlord being granted this exemption from bankruptcy’s automatic stay.
Bankruptcy and Back Rent
Even if your landlord is granted an exemption from the automatic stay and allowed to proceed with your eviction, a bankruptcy is still a powerful tool through which you can erase any missed rent payments in the weeks and months leading up to your bankruptcy filing. Removing these obligations can be your first best step to saving for your next place to live.
Landlord Negotiations
In addition to the powers of bankruptcy to stop an eviction or, at least, discharge back rent obligations; your bankruptcy attorney may also be able to negotiate a settlement with the landlord that will allow you to remain in your rental. While this type of plan will normally force you to pay any missed rental payments with interest and charge you with staying current on future payments, like a Chapter 13 repayment plan that allows homeowners to keep their property, you can also avoid what can sometimes be a substantial hassle of moving elsewhere.
As thousands of American renters search for more immediate and steady help to stay in their apartments and rental homes, many are turning to bankruptcy to stop their own rental recessions. If you too have been effected by the economic crisis, knowing a qualified bankruptcy attorney can also help you to conquer your creditors and face your landlord, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
How Congress’ Election Year Fears Could Affect Your Wallet
Published Thursday, August 12, 2010 @ 2:04 pm
Political satirist P.J. O’Rourke once said, “Politicians are interested in people. Not that this is always a virtue. Fleas are interested in dogs.”
This quote could be said to ring true today as ever, since not yet a week after the Obama Administration pushed for more economic stimulus spending meant to benefit “the people,” Congress refuses to act, distracted by election-year anxiety about the deficit.
According to this weekend’s The Washington Post, “Congress has delivered only about a quarter of the $266 billion in “temporary recovery measures” the president sought in his February budget request and ignored much of the rest. There is unlikely to be another ‘recovery’ check for Social Security recipients. Come December, Obama’s “Making Work Pay” tax credit — the signature initiative he regularly touts as a tax cut for 95 percent of Americans — will probably be gone.”
Now, economists are warning that Congress’ election year deficit fears could plunge the nation into a second Recession.
Yes. That’s right. Another one of those. Specifically, while Congress is focused on as exploding federal budget deficit, it is thought that if Capital Hill doesn’t act—instead spending more on the economy—America may face another lengthy period of astronomical unemployment and, what’s worse, subsequent recessionary status.
One continuing strike against a vote in favor of stimulus spending in this election year is the fact that Americans appear on-board with some forms of fiscal conservatism. In fact, polls reveal most folks don’t believe the President’s first go at a stimulus package worked and continue to vacillate on whether job spending or paying down deficits is the greater priority.
Despite this, The Washington Post reports, “Administration officials are forging ahead, theorizing that voters would be even angrier if Washington skipped the additional spending and unemployment began to climb again. The White House is also trying to do a better job of selling the original $862 billion stimulus package, enacted last year, which has gotten high marks from many economists. ‘This is an environment in which there’s a great deal of jaundice about government and government spending,” White House senior adviser David Axelrod. ‘But it’s foolhardy to suggest that we should walk away from the things we need to do to continue recovery efforts as a way to deal with our fiscal problem.’”
Regardless of how you feel about the current politics of federal spending, Axelrod’s words ring true when considering ways to perpetuate your own personal financial bailout. In times of staggering unemployment, rising medical costs, and a crippled housing market full of underwater mortgages, it is more important that ever to do the things you need to do to continue your own economic recovery efforts and deal with your personal fiscal problems.
One way millions of Americans are moving forward with their own efforts to stimulate savings, security and a better financial future is through bankruptcy. No longer the forbidden fruit of the financial recovery world, bankruptcy has helped many an American avoid creditor hassles, foreclosures, eviction, loss of a vehicle or tools of a trade, and even divorce—all beginning with the acknowledgement that you need a long-term solution to your lingering financial woes.
So, are you one of the many beleaguered individuals attempting to take things into your own hands to address financial woes and take back their fiscal freedoms? Consider making a fresh start through bankruptcy. Knowing a qualified bankruptcy attorney can help any Recession-weary debtor to conquer their creditors and face their financial fears, yielding the right kinds of support, information and insights—at a low cost— to start anyone on their way to a more viable and secure future. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
The mentality of overspending and how to avoid it after bankruptcy
Published Thursday, August 12, 2010 @ 10:40 am
Realizing we are in debt is a lot easier than figuring how it happened. Unless you can pinpoint one central reason, like the loss of a job or long-term medical issue, it can be hard to retrace your steps to financial crisis. Plus, who even wants to? The more important exercise is to figure out how to not let it happen again. And that means determining why you overspend so you can change your habits in your life after bankruptcy.
Countless consumer studies have been done about why we spend. From psychological influences to marketing, music and social pressure, there are far too many things impacting our spending decisions. But, you don’t have to go that deep to keep yourself above water. All it takes is the ability to recognize a situation and take control. It’s really pretty simple.
It’s pretty obvious that if you have access to money, you’re going to have an impulse to buy something. Why do you think credit cards are so often at the root of a family’s financial problems? Credit cards grant us access to a spending club into which we would normally never have received an invite. Credit card approvals have become a standard for social acceptance and its chic to have a wallet bursting with different colors of plastic. Yet, here you are, in debt and unable to pay them back. So do you really have a lot of money?
We probably don’t need to remind you, but: don’t use the credit card if you don’t really need to. After your first year or two out of bankruptcy, just use them for an emergency, like a roadside breakdown or major home repair.
Another reason we overspend is music. Odd, right? Well, music plays into the psychology of spending. The right song can make us feel positive, relaxed and okay about spending some money. The next time you stop into a Best Buy or appliance store, stop and listen to what’s booming through the speakers. It’s not as random as you may think. And, even more surprising is the fact that instrumental and classical music have been demonstrated to have more impact on impulse buys than heavy or upbeat music. And in restaurants, music is often used to make you eat faster, which leads to you leaving sooner and thus, another table gets open for another customer. And so on.
Here’s one the folks at Sam’s Club won’t like to hear: buying in bulk can lead to overspending. Yeah, we know: “But I thought buying in bulk was a way to save money?” The facts are there, bulk shopping does indeed lower your per unit cost. So yes, you get more Twix bars per dollar in the warehouse club than you do at Food Lion. However, the mentality of bulk purchasing leads us to buy that extra box of Twix bars, which then pushes the grocery budget much higher than you planned. Sure, you have more, but now you have less. Get it? And once you’re home, you have a lot of candy to eat. And that’s never a good thing.
Want another hint on grocery shopping? Always do it with a list. Going to the store without knowing exactly what you need can lead to guessing, random selections and impulse buys. A list keeps you on track, providing you with a sense of purpose; in turn, allowing you to watch your items accumulate and your list grow smaller. Thus, something as simple as a trip to the store becomes an accomplishment. Just like moving on from bankruptcy.
The experienced attorneys at the Law Offices of John T. Orcutt can help you get a fresh start with bankruptcy so that you can move on to a new chapter of financial responsibility. Call 1-800-899-1414 to schedule your FREE consultation now.
Our Great Recession 2.0: The Dwindling Middle Class
Published Thursday, August 12, 2010 @ 10:22 am
If you’re reading this, odds are you may be suffering through a tough financial time. Yet, what might make you feel a bit better about your current ordeal is the knowledge that you’re not alone. Millions of average Americans just like you are facing a shared financial circumstance as they struggle to stay afloat in the wake of this decade’s Great Recession—facing foreclosure, job insecurity, and, in some cases, insolvency.
In the series, Our Great Recession 2.0, we’ll delve into some of the more unique stories of this decade’s unprecedented economic downturn, allowing you to see familiar faces and dire places people are going in order to handle our collective financial meltdown head-on.
In part four of this ongoing series, we meet the LaRochelles, an average American couple bearing witness to what some are calling an end to the middle class.
A couple of years back, David and Debbie LaRochelle owned a couple of houses: one home in Southern Florida and a mobile home in Georgia, near Debbie’s parents. They both worked full-time with a combined income of $100,000 a year. Things were great. And they were living the middle class dream.
According to The Huffington Post, today times have certainly changed for the LaRochelles. “Two years and a recession later, the 60-year-old couple are both unemployed, have drained their savings and 401Ks, are depending on Social Security, unemployment benefits and COBRA health insurance to stay afloat and are in the process of losing their Florida house in a devastating short sale. Their dilemma is an increasingly common one: they can no longer afford to make their mortgage payments without an income, but they can’t sell their house because they now owe more on it than it’s worth….The LaRochelles are two of the nearly 2.4 million Americans who are seriously delinquent on their mortgage payments, thanks to plummeting property values and lingering unemployment. And according to the Center for Responsible Lending, a nonprofit research and policy group, as many as 9 million homeowners could go into foreclosure in the next two years.”
It turns out the LaRochelles didn’t know their property had dropped in value from 139K to 49K. “It’s been such a nightmare,” David LaRochelle told HuffPost. “I tried to work something out with Wells Fargo, but they wouldn’t even talk to me until I was 30 days past due. We tried a deed in lieu three times because they ‘lost the paperwork’ twice, and then they turned it down because they said we hadn’t advertised our property at fair market value.”
This very type of lender indifference, mortgage delinquency and underwater living is a situation tailor-made for bankruptcy. If you’re like the LaRochelles: having trouble making your mortgage, living in a home that will never accrue equity, and/or residing in an area that is currently devalued and an eyesore for the foreseeable future, bankruptcy can help get you back on the right side of the tracks. A Chapter 7 bankruptcy will allow you to surrender your underwater home, negate your personal and financial liability, and move forward financially. Or, if you so choose, keep your home while using Chapter 13 to catch up your delinquency and pay your mortgage through a Chapter 13 plan.
Because it’s all about using all of the tools at your disposal during our own Great Recession.
Bankruptcy could have worked for the LaRochelles. It could work for you too. If you’ve been affected by the economy and are wondering how to get back on track, knowing a qualified bankruptcy attorney can also help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Our Great Recession 2.0: Sandwich Board Job Hunting
Published Thursday, August 12, 2010 @ 10:18 am
If you’re reading this, odds are you’re considering bankruptcy. As such, you have a lot on your plate. Yet, what might make you feel a bit better about being bankruptcy bound is the knowledge that you’re not alone. Millions of average Americans just like you are facing desperate circumstances as they struggle to stay afloat in the wake of this decade’s Great Recession—facing foreclosure, job insecurity, and, of course, insolvency. In the series, Our Great Recession 2.0, we’ll delve into some of the more unique stories of this decade’s unprecedented economic downturn, allowing you to see familiar faces and dire places people are going in order to handle the financial meltdown head-on.
In part three of this ongoing series, we meet Paul Nawrocki, best known as the “sandwich board job hunter.”
In 2008, amid a crumbling economy, Nawrocki took to Manhattan streets wearing a sign emblazoned with “almost homeless.” Shortly thereafter his mustached face could be seen on news channels like CNN and shadowed by photojournalists, followed by more than 100 television interviews. Unwittingly, the laid-off toy company executive unwittingly became the face of out country’s economic troubles and a symbol for how even the mighty and well-connected could fall.
And fall he did. As The Huffington Post’s Samantha Gross reported, “even though the attention faded, his troubles did not. Having the eyes of the world on him didn’t land the then-59-year-old any viable job interviews. His wife was sick, and keeping his health care was a struggle. He began to decide between the doctors and the mortgage.”
Fortunately, the man who was once the face of the economic downturn may once again wield a “sign” that happier days are here again. That’s because last month, after collecting almost two year’s worth of unemployment, Nawrocki found a job. As The HuffPost reported, “He’s not the only one. While unemployment remains high, the nation added 162,000 jobs last month – the first significant job growth since the downturn began. ‘It was good. It felt good,” the Beacon, N.Y., resident told Gross of his first day back at an office – 25 months after he was asked to leave his old one. ‘It felt like all new again because it had been so long.’”
The bad news remains: two years of unemployment still dealt a tremendous blow to Nawrocki’s financial portfolio. He remains behind on his mortgages, and, after months of food stamps, food banks and relying on handouts from family, he and his wife were forced to declare bankruptcy.
Despite the ups and downs of Nawrocki’s experiences, his weeks of joblessness provide many lessons for many of the would-be employed. The former executive didn’t get his new job from his stint in the limelight, but rather “through old-fashioned networking. He went to a toy-industry fair, and a friend introduced him to the man who would become his boss. Nawrocki believes the tales of his sandwich-board days helped him land an interview. His paycheck is nearly half the size; he had made almost $100,000 a year. And his title is a little less grand. But the job still seems a wondrous, unlikely rescue – as though a hand had descended from the sky at the last possible moment. ‘I had reached the limit, the last week,’ he recounted. “And they called and had me start the next week. … Through this whole experience it’s been like that. We get right to the edge, and then …’”
And then…for the long-time unemployed like Nawrocki, it’s all about re-finding our greatness during our own Great Recession.
Bankruptcy helped Paul Nawrocki. It can help you too. If you’ve been affected by the economy and are wondering how to get back on track, knowing a qualified bankruptcy attorney can also help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Automated Debt Collection Lawsuits on the Rise
Published Thursday, August 12, 2010 @ 10:12 am
In this tough economy, it may seem like your creditors are an ever-present part of your life…showing up where and when you least expect, or need, them. You’re not alone. It turns out that millions of Americans have fallen behind on paying their bills, and an unfortunate result is that debt collection law firms are now heading to court in record numbers in order to collect.
In addition to this tough economy making past-due debtors out of many Americans, the rise in unprecedented debt collection cases is also being blamed on the wonder of automated debt collection.
According to a new The New York Times article by Andrew Martin, many debt collection law firms are now relying on “computer software to help prepare its cases. While many of the cases represent legitimate claims, critics say the lawsuits are too often based on inaccurate or incomplete information about the debtor or the amount owed.”
In response, state legislators and judges have attempted to rein in collection lawsuits, and on Monday, the Federal Trade Commission issued a formal report on the need for reform in debt collection litigation and arbitration, finding the current system for resolving disputes over consumer debts to be broken and in need of “significant reforms.” With debt collection topping its list of consumer complaints, the commission is proposing that states mandate collection services to provide more transparency in the debts owed, including the current debt balance, interest and fees; and discourage defaults by encouraging debtors to defend themselves in court.
Yet, while much of the FTC’s report appears to put the responsibility of limiting collection litigation on the debtor, Martin reports, “The litigation boom has been propelled by fundamental changes in the way debts are collected, particularly for credit cards. In recent years, credit card companies have increasingly sold off debt they have considered uncollectible to debt buyers, usually for 5 cents or less on the dollar. The debt buyers, in turn, may try to collect the debt themselves using traditional practices like sending letters or making phone calls to a consumer to try to arrange a payment plan. Increasingly, they are choosing to sue instead. Collection law firms are able to handle such large volumes of cases because computer software automates much of their work. Typically, a debt buyer sends a law firm an electronic database that contains various data about consumers, including name, home address, the outstanding balance, the date of default and whether interest is still accruing on the account.”
This automation can means more errors, abuses and more litigation; none of which is good for debtors already facing tough economic times and an endless array of economic challenges.
In this environment, it’s important to keep in mind that bankruptcy can be your best weapon against these kinds of debt collections. Bankruptcy can stop secured creditors cold, as well as unsecured creditors, the ones at the bottom of the proverbial food chain, who are more likely to be the ones contacting you via phone, sending you letters, and generally harassing you for cash, any cash, where and when they can.
If you too have been effected by the economy and are wondering how to reduce debt and get back on track, knowing a qualified bankruptcy attorney can also help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Wells Fargo deliberately multiplied overdraft fees, cleared larger customer checks first. Judge orders it to pay $200 million in restitution.
Published Thursday, August 12, 2010 @ 10:07 am
Well, this may come as a surprise: a bank was deliberately charging customers for banking errors they did not make.
Shocker, huh?
Okay, well, maybe that kind of snark is a bit uncalled for. There are plenty of banks out there doing the right thing. But the timing of a California judge’s ruling that Wells Fargo must pay back more than $200 million to customers for egregiously fat-fingering their adding machines when calculating overdraft fees could not have come at a worse time.
News that the economic recovery is slowing (also quite the shock, huh?) and that unemployment continues to punish the nation has only exacerbated the nation’s mood toward the financial industry, largely considered the source of our current economic woes.
United States District Court Judge William Alsup ruled that Wells Fargo used an accounting tactic that literally multiplied one personal banking mishap into several, sometimes even 10. So, a $35 overdraft fee would wind up costing a customer $350 once totaled. What’s worse, the bank actually created a shroud around the practice, hiding it from customers and regulators.
Specifically, the bank would process checks for higher amounts first, regardless of when they were written. That means they would re-order the timeline of entry, resulting in more overdraft fees. In its defense, the bank said that larger checks are often the more important ones, like car payments and mortgage dues.
A banking and finance writer for the San Francisco Business Times described an industry conference years ago where banking executives were told that waiting on larger checks and then clearing them first was a sound way to increase bank revenue through overdraft fees. The speaker even mentioned that the tactic worked particularly well on military bases because customers in that demographic are often “struggling financially.”
All told, customers could have been bilked for much more, considering that the bank collected $1.8 billion in overdraft fees between 2005 and 2007. That’s billions. Now might more people understand the role some banks play in our nation’s personal debt pile?
These sorts of things tend to happen to people on or close to the edge of a serious financial headache. Checking accounts get hard to balance when jobs go away and kids still need shoes. More over, in today’s world of online banking and debit accounts, it has become even harder to track expenses, as some purchases record as debits in our accounts faster than others. We move so fast at check-out counters and Web sites that many people completely forget they purchased something until days later.
Our time is precious, to be sure, so we move faster. But isn’t our financial livelihood precious too?
Without argument, banks are a business. And, there are ways to not have to use a bank. But let’s be honest, the rest of the business world does not make it very easy. However, one would think that a business in the business of saving, growing and handling money would have a higher regard for the value of it to their customers. Perhaps that’s not the case anymore.
A financial analyst with an investment banking firm called FBR Capital Markets, said that Wells Fargo’s “method” of calculating overdrafts fees has been questionable for some time, illustrating that it has been “going on for years.”
With sweeping financial reform making its way around Washington and soon to a bank near you, overdraft fees, ATM charges, late fees and many other banking charges will be handled and disclosed in a much more overt fashion, according to those in the know. Basically, that just means it will become more expensive for you to use a bank.
Americans Seek Social Security Where They Can Find It
Published Thursday, August 12, 2010 @ 10:06 am
As Baby Boomers age into their rightful place at the retirement table, Social Security appears to be running into the red—literally paying out more dollars than it’s taking in—even after decades of prosperity and pay-outs.
According to a recent article in CNNMoney.com, this could leave many who do (and will) depend on Social Security in a rough economic spot during already tough financial times. “For the first time in nearly 30 years, the system will pay out more benefits than it receives in payroll taxes both this year and next, the government officials who oversee Social Security said on Thursday,” reports Annalyn Censky of CNNMoney.com. “And while Social Security cash flow will likely head back into the black for a few years after that, starting in 2015 it looks to stay in the red for the long haul, the trustees said in their annual report.”
As a social program funded by American payroll taxes since its rollout during the New Deal, Social Security encompasses many social welfare and insurance programs, including unemployment benefits, Medicare, and precious payments to the retired, disabled, and other disadvantaged groups. In short, people who work pay in and withdraw when they can’t or don’t.
Yet, as mentioned, according to industry experts, during the next couple of years the Social Security system will reach a tipping point: paying more benefits to dependent Americans than it can collect in taxes, diminishing the fund and benefits for the nation’s neediest people. While the Social Security drain could begin to reverse itself for a few years following 2011, some fear the fund could be depleted by 2037.
What’s to blame then for this severe Social Security shortfall? Like everything else: the Recession. Surging unemployment rates, at near double-digit levels, have meant that fewer Americans can contribute to the Social Security pot, with more people withdrawing in the form of unemployment benefits. In addition to the strain of unemployment benefits, less work means many more Americans are simply foregoing the job hunt for an early retirement, meaning another payment drain on the Social Security gravy train. Finally, stimulus needs have meant higher than usual Fed borrowing from insecure Social Security coffers.
So, you might wonder, what does this Social Security insecurity mean for you? In essence, it’s just another sign that average Americans can’t depend on Federal programs to get them through this lingering financial downturn. As another in long-line of government “in-the-red” red flags—ones that have also included warning signs of dwindling unemployment funding and stagnant stimulus spending—Social Security concerns mean you should avoid depending on social welfare programs as you plan your retirement. This leaves personal retirement savings and investments as your sole, [guaranteed] source of stability in your later years.
Unfortunately, if you find yourself facing financial insecurity, with no real income, drowning in debt, and/or suffering from a lapse in benefits, it may seem nearly impossible to start saving for your own social safety net. Yet, this is the exact circumstance for which bankruptcy exists: allowing Americans just like you to clean and clear their financial slate to begin putting money where you need it—out of the clutches of your creditors and instead accessible in your own accounts.
Knowing a qualified bankruptcy attorney is the first best step to help you regain your own “social security,” conquer creditors and face these exact financial fears, yielding—with the right kinds of support, information and insights—at a low cost— a viable and secure future. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Bankruptcy and You: Recognizing Reaffirmation Agreements for What They Are
Published Wednesday, August 11, 2010 @ 9:22 am
If you are considering bankruptcy or are already bankruptcy bound, you likely understand some of what there is to know about the benefits of a bankruptcy filing, including the ability to discharge certain types of debt. What may be lesser well-known in the bankruptcy process is the need (or not) for reaffirmation agreements and their relationship with your debt, collateral and holding on to (or restoring) much-needed property.
In essence, a reaffirmation agreement is a voluntary contract between you and your creditor that promises you will pay all or a part of a debt that would otherwise be discharged in your bankruptcy. Despite the bankruptcy filing, you, the debtor, reaffirm certain debts, and in return, a creditor promises that, as long as your payments are made on time, they will not repossess certain property secured by the prior reaffirmation. In short, any debt that is reaffirmed is not eliminated in the bankruptcy filing, but rather voluntarily paid back by an agreeable debtor.
Understanding that bankruptcy is a means to remove unwanted debt to get you back on a path to a better financial future, you might be wondering, “why in the world would I want to agree to reaffirm my debts with any of my creditors?”
Here are a few reasons reaffirmations may be appealing to even the most beleaguered borrowers:
(1) Holding on to Collateral that Secures Your Debt
If your creditor included language in the contract that declares you to be in default upon the filing of a bankruptcy, you may need a reaffirmation agreement to prevent repossession. An experienced bankruptcy attorney will look for this language in your contract before it is present to ensure that a reaffirmation agreement is really needed.
(2) Keeping Existing Credit
In some cases, creditors may be more likely to extend credit to a debtor who agrees to reaffirm a portion of their existing debt. A downside of accepting this new credit is that the reaffirmation amount essentially becomes a service charge for receiving a new opportunity to pay for an expensive loan. In addition, it’s important to remember that getting new credit following your bankruptcy isn’t that difficult in the first place. As a result, this particular justification is rarely recommended as a reason to reaffirm an existing debt.
(3) A Lender seeking Reaffirmation May Offer Better Terms Than your Original Contract
Sometimes, in seeking a reaffirmation, a lender may reduce your interest rate and/or monthly payment. Especially if your lender has included the bankruptcy default language in the contract, it may be a good idea to accept the better terms.
As a result of the intricacies of the debtor-creditor relationship, it is essential to consult with a qualified attorney before entering into a reaffirmation agreement. A qualified bankruptcy attorney is important during the bankruptcy process to help you navigate any uncertain waters and work in your best interests during the duration of your personal bankruptcy. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
How to Know When You’re Ready for Bankruptcy
Published Tuesday, August 10, 2010 @ 9:53 am
In the wake of the worst economic conditions since the Great Depression, millions of people are finding themselves bankruptcy bound. And with so many people forced to find relief in the protections a bankruptcy filing can provide, gone are the days of societal stigmatization and shame.
Yet, many debtors enduring tough financial times are still stuck in an old mindset that bankruptcy is a measure of last result. This often leads people just like you to wait months and even years after they should have started the bankruptcy process, often wasting endless time and money to just stay current during an unprecedented era of unemployment, rising health costs, and housing woes.
Instead of waiting for things to get better, take your financial future into your own hands with these four easy indicators that you’re ready for bankruptcy—right now.
Creditors are Calling and Lawsuits are Pending.
It’s one thing to occasionally miss a credit card payment. You might pay late or forget altogether, resulting in higher interest rates, calls from your credit card company, and a possible end to your credit line. But, more and more often, people are simply unable to pay their bills at all, handcuffed by joblessness, medical bills, or other unexpected budgetary burdens. In this case, you may be facing creditor lawsuits, whereby your lenders are using the law to win judgments and eventually get the power to seize your assets. If this is the case, bankruptcy is a clear choice, allowing you to stop these types of proceedings cold and get you on a financial course that will allow you to meet your ongoing obligations and the needs of you and your family.
Creditors are Garnishing your Paycheck.
Wage garnishment is a sure sign that creditors have not only sued you, but the creditors are winning. Wage garnishment is limited under North Carolina law, but certain entities such as taxing authorities and student loan creditors may garnish your wages. Other judgment creditors may be able to garnish your wages if your employer’s main office is located outside of the state of North Carolina. Bankruptcy is the best way—and often the only way—to end such wage garnishments, saving your income from creditors, and for the things you need most.
Tax Liens Have Been Levied Against You.
Tax liens are liens imposed by law upon a property to secure the payment of taxes. If you cannot afford to pay your taxes and tax liens have been levied against you, bankruptcy can help. A personal bankruptcy can discharge unsecured debt, freeing up resources to pay taxes, and avoid losing much-needed personal and real property. In many cases, you may be able to satisfy your tax lien by paying the total amount of equity in all your property to the IRS or state taxing authority through a Chapter 13 bankruptcy plan.
You are Behind on Your Rent Or Mortgages and are Facing Eviction
As you already know, keeping a roof over your head is a priority, and, with millions facing foreclosure in 2010, the potential to lose the security of shelter is real for many Americans. While bankruptcy will not wipe away your requirement to pay rent or your house note for an apartment or home you intend to stay in, it can keep you in your home or apartment and wipe out other debts that might have forced you into eviction in the first place. In the case where your mortgage is untenable, bankruptcy can discharge what you owe, allowing you to walk away from one house to walk into another that you can actually afford.
If you meet any of the above criteria, it’s never been more important to act now, seeking competent and experienced bankruptcy counsel from the very start. An experienced bankruptcy attorney knows the ins and outs of the bankruptcy process and can assist throughout your case.
The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Relief on the way due to new regulation of misleading “debt-relief” companies
Published Tuesday, August 10, 2010 @ 9:46 am
A number of good things have emerged from the economic situation of the last several years. Recently enacted credit card reform will hopefully change the way we are treated by the industry responsible for so much of our country’s collective personal debt.
Mortgage modification, even with all its warts and scars, should eventually become an industry with real benefits to struggling homeowners. The quick roll out of federal plans and the pressure on banks to quickly create similar programs obviously led to a lot of frustrations. Still, when things iron themselves out, consumers stand to benefit.
Another recent instance of positive regulation has stemmed from the offices of the Federal Trade Commission (FTC). The News & Observer reported that last week, the organization ruled that as of October 27 of this year, companies operating in the rather unregulated “debt-relief” industry must now be a great deal more clear about to what extent they can actually provide assistance. Specifically, the new law states that any company offering to alleviate your standing debt is not allowed to request payment until the “benefits” of their efforts reach fruition. In other words, they don’t get paid until they do what they said they would. Quite a notion, huh?
The last couple of years has seen a tremendous rise in the number of organizations offering “debt-relief.” From shaky, hand-written signs on the side of the road promising to rebuild your credit to more formal companies with Web sites and 1-800 numbers, the number of ways you can “start over” has exponentially multiplied. Unfortunately, hundreds of thousands of Americans have found that that is not really the case.
Typically, the industry model has been to request fees from customers upon engagement of service, a strategy that hardly seems reconcilable with common sense. To sell this goofy model, companies peddle panic. They target not the completely destitute but the people somewhat close to the edge of a serious financial dilemma, those considering a bankruptcy but still looking for alternatives. This anti-sell tactic works wonders. The practice has sky-rocketed.
More over, many industry players instill confidence by telling customers to cease paying their credit cards. “We’ll handle it,” the operator says with a smile and headset.
The longer you go without paying any obligated debt without formal legal protection (bankruptcy), the worse off you are going to be.
The new guidelines will require companies to tell you how long it is expected to take to realize the results they present to you and a good faith estimate of your total costs. Previously, companies often asked you to create a separate account with them to hold money that you should be using to pay your credit cards as way to ensure they get paid everything they are “owed” after they decide your account is done be serviced.
Come this fall, any money you are asked to set aside must be held in a separate financial institution under your name.
So let’s recap this for a second: Debt-relief companies tell you to stop paying your credit cards so that you will have the money needed to pay us. Moreover, they can make absolutely no promise that your debt will be alleviated or what it is you will need to pay them. And, since they know what it is you owe every month, might their total fee just happen to be close to whatever it was you were supposed to be paying to your credit card debt?
See how that works?
The most certain way to ensure long-term relief from your debts is through filing bankruptcy. It’s not always the answer for everyone but it is certainly far better than what what private “debt-relief” companies are offering. Call the Law Offices of John T. Orcutt today for your FREE initial consultation: 800-899-1414
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http://www.newsobserver.com/2010/08/08/618265/ftc-reins-in-debt-relief-practices.html
Drawing a Picture of the Dwindling Middle Class
Published Tuesday, August 10, 2010 @ 9:30 am
What was once a white picket fence is now a potential foreclosure; what used to be some measure of Social Security is now using retirement just to get by; what would have been the expectation of (and ability to) send your kids – all of them — to college, is now in question, along with all of the other trappings of a now-fleeting American Dream.
Like so many insights and incomes in these tough economic times, the middle class is shrinking—short-changed by everything from the fiendish financial industry to a hobbled housing market.
According to Arianna Huffington’s new book, “Third World America”, our country’s middle class is facing an onslaught from all sides, including several surprising facts average American’s should remain mindful of—and attempt to prepare for—as they forge ahead into a new reality:
Increases in Income Inequality
In the middle of this decade, the bottom 20 percent of household earners made an average income of $10,655 while households in the top 20 percent made almost $160,000. This disparity of 1,500 percent is the biggest gap between “haves” and “have-nots” on record.
States Cut Services
Between redirected bank bailouts and state budget shortfalls, Americans can expect severe shortages in state-supported services. “According to a report by the Center on Budget and Policy Priorities, at least twenty-nine states have made cuts to public health programs, twenty-four states have cut programs for the elderly and disabled, twenty-nine states have cut aid to K–12 education, and thirty-nine states have cut assistance to public colleges and universities. America’s states faced a cumulative budget gap of $166 billion for fiscal 2010. Total shortfalls through fiscal 2011 are estimated at $380 billion—and could be even higher depending on what happens to unemployment. These are massive numbers. But when you remember that we spent $182 billion to bail out AIG ($12.9 billion of which went straight to Goldman Sachs), you realize that this amount alone would be more than enough to close the 2010 budget gap in every state in the Union. Toss in the $45 billion we gave to now-making-a-profit Bank of America and the $45 billion we gave to now-making-a-profit Citigroup, and we would be well on the way to ensuring that no state’s vital services are cut through 2011.” -Arianna Huffington, Third World America
Corporate Tax Evasion
Unfortunately, average Americans are paying much more in taxes each year than their corporate counterparts. “According to the White House, in 2004, the last year data on this was compiled, U.S. corporations paid roughly $16 billion in taxes on $700 billion in foreign active earnings— putting their tax rate at a paltry 2.3 percent.
Infrastructure in Ruins
Think dilapidated roads and potholes can’t be deadly? “In studying car crashes across the country, the Transportation Construction coalition determined that badly maintained or managed roads are responsible for $217 billion in car crashes annually – far more than headline-grabbing alcohol-related accidents ($130 billion) and speed-related pile-ups ($97 billion)”, Huffington writes in Third World America. And of the 42,000 road fatalities each year, more than half (53%) are at least partially due to poor road conditions.
Failing Grades for Education
Unlike previous decades, America’s educational system is leaving more and more children behind. Arianna explains in Third World America, all across the country, more and more students are failing with no end in sight: “In Alabama, only 20 percent of eighth graders are proficient in math. In California, it’s just 23 percent. In New York, it’s 34 percent.”
Foreclosures in Full Force
“Barry Bosworth and Rosanna Smart of the Brookings Institution found that the catastrophic collapse of the 2008 sub-prime mortgage market resulted in the disappearance of $13 trillion in American household wealth between mid-2007 and March 2009… on average, U.S. households lost one quarter of their wealth in that period,” cites Huffington. As a result, Third World America characterizes the housing crisis as “Katrina for the middle class,” with more and more Americans pumping money they don’t have into underwater mortgages and lost assets.
Sickening Health Care Costs
“The vast majority of people who file for bankruptcy are middle-class folks who can’t pay their bills because they’ve lost their jobs or been hit with high medical bills. In fact, a 2009 study by researchers at Harvard and Ohio University showed that health-care problems were the root cause of 62 percent of all personal bankruptcies in America in 2007. When the same researchers did this study across five states in 2001, health-care problems caused only 50 percent of bankruptcy filings. According to the American Bankruptcy Institute, America had 1.4 million personal bankruptcies in 2009, a 32 percent increase over the previous year. Put another way: Every thirty seconds, someone in this country files for bankruptcy in the wake of a serious illness.” – Arianna Huffington, Third World America.
If you’ve been affected by the economy and are wondering how to get back on track, knowing a qualified bankruptcy attorney can also help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Forget Foreclosure. Property Taxes are the New Recession-Era Problem
Published Tuesday, August 10, 2010 @ 9:26 am
You can’t turn on a television or read a newspaper today without hearing about the housing crisis, with foreclosure remaining the focus of many a homeowner’s worst nightmare. Yet even in areas where banks aren’t repossessing Americans’ biggest assets, the real estate market meltdown is still having its way with local politics and policymaking, haunting many communities—in the form of skyrocketing property taxes—for years to come.
As PBS Newshour’s Dante Chinni found, many long-term residents in some of America’s more attractive areas are facing unprecedented property taxes as newcomers move in and make themselves at home in houses (and communities) that have ballooned in value—even amid the mortgage meltdown.
As Chinni reports, “Fueled by many out-of-staters looking for a second home with views of the glacier-carved Mission Mountains and only miles from Glacier National Park, property reappraisals including land and home soared to as much as $10,000 per foot of shoreline along the lake. Those increased values helped push Flathead County, which abuts the lake into the Monied ‘Burb county classification in Patchwork Nation. And like other communities that experienced rapid growth in real estate assessments those ballooning values came with other costs. On Flathead Lake, the complicating factor has been rising property tax bills. For the new residents who had dropped $1 million for a home, the bill was no shock, but for the residents who had owned their home for 20 years, the new levy threatened to tax them out of their homes.”
Still, the potential for being taxed out of house and home has become routine for many in areas that have witnessed meteoric increases in property assessments over the past several years (such as the Northwestern Montana example above). In some areas, these levies have hit so hard in some towns, “that some neighborhoods have seen special assessments that cut values across the board designed to make home values more realistic and more current.”
In the state of Montana, the average household income is a bit under $44,000. In some counties it’s a bit more, and some a bit less, but in places like Lake County, affected by the reappraisals and rising levies, the average family brings home $38,505. But, as Chinni says, “with property appraisals soaring along some parts of the lake, the average family can only afford so much in terms of land and taxes. But any reappraisals will shrink an already anemic tax base and that could mean trouble for communities trying to keep their services running and financial house in order.”
Until the housing market levels the playing field for many American homeowners, it’ll be a hard many to avoid rising mortgage rates, foreclosure fights, and now, the possible escalation of property taxes—especially during taxing times.
Chapter 13 bankruptcy can provide for the payment of past-due real property taxes and can help you catch up on your house payments, among many other things.
Don’t wait for your own housing bubble to burst. Join the millions of American homeowners who have found immediate help to keep their hard-hit homes. If you have been affected by the mortgage crisis, knowing a qualified bankruptcy attorney can help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Having trouble understanding your credit card agreement? Don’t worry, so do four in five Americans.
Published Monday, August 9, 2010 @ 4:03 pm
Without insult, you should accept the fact that you read at a ninth grade level. It’s okay, four out of five adults do. It doesn’t mean you like the “Twillight” series, it means that the depth of your vocabulary and comprehension skills are at the most efficient level needed to succeed in today’s society. In short, it’s fine. And that’s not really the point of this post anyway.
It should come to no surprise then, that credit card companies create their agreements, notices and paperwork at a reading level on par with the comprehension and reading skills of only one in five Americans. Why do you think they do that? Never mind, you know why.
Roy Peter Clark, a recognized writing skill level specialist and a senior scholar at the Poynter Institute, explains succinctly why the credit card industry does this. “So that the customer will not be able to understand it … I may be cynical, but I don’t think their writing strategies are accidental, the collateral damage of a bureaucratic mindset. I think those writers know exactly what they are doing.”
What else is not accidental is the industry’s overall marketing strategy, which appeals to status and our most base level of wanting, an emotion with which infants can identify. Thus, you have the ultimate bait and switch. They market to us on a broad, simple-to-grasp level but apply rules to their product that are deliberately arcane. To think this contradiction doesn’t contribute to the country’s incredible debt situation would be foolish. But that’s what they want us to believe.
The industry collectively spends billions to learn how the human psyche works so they can get inside it to sell us things and then skirts culpability when, lo and behold, it actually works!
New credit card laws are supposed to make the entire process of overseeing your credit cards a bit easier. The big rules may be in place about interest rate notifications and cancellation options and the like but no hard and fast regulations are in play about making agreements easier to understand. Some companies are trying to make an effort with separate forms that explain clearly the terms of an agreement. However, that sheet is typically coupled with a more traditional version that contains all the fine print and confusion.
In fact, little has changed with the new laws in this regard and in some cases, the sense of simplicity that many assume is now inherent because of the new laws can lead to false sense of confidence that the credit card companies are now on the straight and narrow. Hardly.
One may think that Visa and Mastercard don’t want you to read the fine print. The truth is, that is exactly what they want you to do. The language, terms and figures serve are great distractors. They are textual sleights of hand, taking our eyes away from what really matters, leaving us dumbfounded when the monthly balance sheet arrives. “Did I agree to this?”
Creditcards.com performed an analysis of more than 1,200 credit card agreements that are now required to be made public as part of the new legislation. What they found was an array of vexing terminology and financial language that actually read almost four levels higher than the average citizen.
Among many other astounding characteristics, they found that the Visa and Mastercard agreements for Fifth Third Bancorp contained 20,799 words and is written at a 14.5 reading level. The United States Constitution has just over 4,000 words.
Our Founding Fathers would be so proud.
Creating a Realistic Chapter 13 Repayment Plan: Paying Your Minimums
Published Monday, August 9, 2010 @ 2:58 pm
Chapter 13 bankruptcy can be a great way to clear your financial slate, while, at the same time, entitling you to hold on to your precious property even in the most precarious economic situations. To do so, Chapter 13 bankruptcy allows you to construct what is hopefully a realistic financial reorganization plan that allows you to pay back all of your debts over the course of three to five years.
In part one of the series “Creating a Realistic Chapter 13 Repayment Plan,” we discussed how an unrealistic Chapter 13 repayment plan (i.e., one that is poorly designed, doesn’t account for unexpected expenses, and one that doesn’t keep your lawyer in the loop, combined with the debtor’s inability to stay inside a repayment ‘budget’), can lead to Chapter 13 failure. In the second part of the series, we’ll look at the importance of going beyond the bare minimum when considering a Chapter 13 repayment plan.
Under most Chapter 13 plans, debtors are expected to pay either nothing or only pennies on the dollar of their remaining unsecured debts, which are often a huge draw for people wanting to save their homes or hold on to their vehicles in bankruptcy. However, Chapter 13 does require you to pay what is required under the Means Test (usually nothing, if you have an experienced attorney knowledgeable in means test planning). There are some things you’ll have to pay through your Chapter 13 plan, regardless of your Means Test result. Included in these are: arrears on domestic support obligations (alimony, child support, etc); back mortgage payments for homeowners attempting to save their shelter; certain nondischargeable taxes; and the value given to non-exempt assets.
It is important to note that these minimum payments, based on what they are, when they are, and where they are, can get you into trouble, such as:
The lengthy duration of your plan.
Your entire plan must be paid within five years. As a result, plans lasting the full five years create a situation where debtors must be accountable for a certain amount for an entire 60-month period. At first blush this might sound feasible, even preferable, to extend your plan for the entire duration allowed; but given the preponderance of incidences whereby unexpected expenses have caused Chapter 13 debtors to miss payments and fail their extended plans, it is advisable to look for a reasonable plan in the shortest period possible.
The poor timing of your largest payments.
In addition, it is also recommended that you avoid a plan that includes a schedule beginning with relatively low payments and an obligation to then increase payments toward the plan’s end. Why? The same old “unexpected expenses” scenario: a job loss, an underwater home, a new medical emergency paired with a repayment plan that puts the meatier payments at the end makes for a dangerous situation where the coffers are bare when the planned increased payments comedd calling.
Because of these two basic repayment plan pitfalls, many Chapter 13 cases are dismissed or converted into Chapter 7 liquidation bankruptcies, causing debtors to lose assets and their payments up to that point. As a result, when considering the benefits of Chapter 13, it’s also important to mindful of the basics of the repayment process, giving you the right kinds of ammunition to avoid an unrealistic plan while on the path to a better financial future.
As a result of the intricacies of Chapter 13, it is essential to consult with a qualified attorney before entering into your bankruptcy filing. A qualified bankruptcy attorney is important during the bankruptcy process to help you navigate any uncertain waters and work in your best interests during the duration of your personal bankruptcy. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Consumer Confidence Fades As Unemployment Figures Remain
Published Monday, August 9, 2010 @ 2:01 pm
In these tough economic times, good news can be hard to come by—especially hard for the economic recovery itself. This remains true at the midway point of 2010, as a major indicator of the strength of the America’s economic machine is showing that we’re still in the throes of our own Great Recession.
According to a report by Daily Finance, the Consumer Confidence Index fell to 50.4 in July, its lowest mark in five months driven by fears about unemployment. “The consensus of economists surveyed by Bloomberg had been that the closely watched index would dip to 51 in July from a revised 54.3 in June, and 63.3 in May. The index hit a record low of 25.3 in April 2009. As they did in June, every index component dropped in July, and it was clear what was weighing on the minds of consumers: job market conditions and the outlook for business conditions in the near future. The percentage of survey respondents who said jobs are “hard to get” increased to 45.8% in July from 43.5% in June, while those claiming jobs are “plentiful” was unchanged at 4.3%. The percentage of those expecting there to be fewer jobs increased to 21.8% from 20.1%. Those expecting more jobs to become available in the months ahead declined to 14.3% from 16.2%. In addition, those expecting an improvement in business conditions over the next six months decreased to 15.9% from 17.1%, while those expecting business conditions to worsen increased to 15.7% from 13.9%.”
So, what do these consumer confidence figures have to do with you? In the real economic world, falling consumer confidence can have many impacts, including:
Retail Sales
As Daily Finance reported, the director of the Conference Board’s Consumer Research Center, Lynn Franco, said the recent drop in consumer confidence could have a negative impact on consumer activity, including back-to-school business. “Consumer confidence faded further in July as consumers continue to grow increasingly more pessimistic about the short-term outlook. Concerns about business conditions and the labor market are casting a dark cloud over consumers that is not likely to lift until the job market improves,” Franco said in a statement. “Given consumers’ heightened level of anxiety, along with their pessimistic income outlook and lackluster job growth, retailers are very likely to face a challenging back-to-school season.”
As a result, if you’re a retailer, this news could mean another season of lost sales lower profits, and an overstock of inventory with nowhere to go. More directly, floundering business can mean layoffs, contributing to a ever-more unemployment, and even less consumer spending.
Slow Economic Growth
This endless cycle of no confidence, no business, no jobs, no confidence, doesn’t seem to be changing anytime soon. As Franco said, “[c]oncerns about business conditions and the labor market are casting a dark cloud over consumers that is not likely to lift until the job market improves.”
And, since consumer spending is one of the most important part of our nation’s economy—accounting for nearly 70 & of the country’s total GDP—a drop in consumer confidence is always a bad sign for America’s economic health. Plus, while experts don’t agree whether this slow growth will lead to a second (or “double-dip”) Recession, the longer the economy languishes the longer American families will likely do the same.
Bankruptcy
As the economy continues its “slow-to-no” recovery and consumer confidence fads, confidence in the benefits of bankruptcy continues to rise. If your own economic house is shaken due to credit card debt, repossessions or foreclosure, it may be time to take your financial future into your own hands.
The first step is knowing a qualified bankruptcy attorney who can help you regain your power, conquer creditors and face your financial fears, yielding—all with the right kinds of support, information and insights—at a low cost— for a viable and secure future. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Marriage and Money: The “I Do’s” (and Don’ts) of Debt
Published Monday, August 9, 2010 @ 2:00 pm
This unrelenting economic downturn has been tough on all Americans—whether they be single, dating, engaged, married or widowed. But, as anyone who has ever been married already knows: money (or lack thereof) can be the main cause of many couple’s marital strife. As a result, in this especially difficult economic climate—full of job insecurity, foreclosures, and slow economic gains—many have been pushed to the brink of bankruptcy, and, along with them, the people who love and wanted to marry them.
So what should you do if you are preparing to marry someone drowning in debt?
While as a general rule, you are not liable for your spouse’s debt, in some cases the debt follows the “I Do’s” and you may end up paying that debt anyway. For example, consider your new spouse (or future spouse) has $70,000 in credit card debts and other unsecured, consumer debts. He/she has an income of $35,000, below average median income levels. Based on his/her income alone, he/she could easily solve his or her insolvency issues with the benefits of a personal bankruptcy through Chapter 7. By comparison, your income is nearly $80,000 and you have no unsecured debts. This second, higher income could “mean” bad news under bankruptcy’s “Means Test.”
Bankruptcy’s “Means Test” is a formula for determining a debtor’s ability to pay back their debts. An inability to pass this test disqualifies someone from Chapter 7 bankruptcy, making Chapter 13 (or 11 for those with extremely high amounts of income and/or debt) the debtor’s only option. Because income for purposes of the “Means Test” includes “family income,” a new spouse’s income must be considered in determining the debtor-spouse’s “Means Test,” even when the new spouse has no stake in, or need to file for, bankruptcy.
In the above example, the new spouse’s relative affluence can make the debtor-spouse ineligible for the benefits of Chapter 7 bankruptcy. Without the option of a liquidation bankruptcy under Chapter 7, as mentioned, the debtor’s only option is now Chapter 13—a peition requiring a three to five year repayment plan. As a result, the new spouse “marries into” his or her debtor-spouse’s debt, and the higher salary is forced to subsidize repayment of that debt when the Chapter 7 bankruptcy cannot.
Because of this consideration, couples considering marriage, and bankruptcy, should consult with a qualified bankruptcy attorney when determining the timing of either decision. In some cases, filing for Chapter 7 prior to marriage (or prior to a couple cohabitating in one household), can mean a better result for the debtor under the “Means Test.” In other cases, marriage can increase a household size, thereby qualifying the household for Chapter 7. Other considerations include the fact that marriage can act to bind personal property, real property and other financial assets, making them exempt from the bankruptcy process. In short, a little planning before the nuptials, and your bankruptcy, can pay dividends for the beginning of a lifetime together on the road to financial freedom.
If you are considering filing for bankruptcy to strengthen your union, as well as your finances, knowing a qualified bankruptcy attorney can also help you make the right spending decisions, yielding the right kinds of support, information and insights—at a low cost— for a fiscally viable and secure portfolio. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Looking for a Quick Stimulus? Some Look to Local Stores.
Published Sunday, August 8, 2010 @ 9:04 am
You might have seen reports that federal stimulus funding has stemmed the tide of school layoffs, has caused a marked increase in roadside construction projects, or has brought about broadband to areas preciously unable to get it; but many of the beleaguered masses are searching for more direct benefits from stimulus spending.
Well, now it seems your local retailers aren’t waiting around for an economic rebound, they’re taking the concept of economic “stimulus” into their own hands with programs poised to get you spending in their stores, while providing more substantial savings for your trouble.
As The New York Times is reporting, “Stores like Sam’s Club, Target, Toys “R” Us, Staples and Office Depot are offering unconventional promotions meant not only to attract visitors to stores, but also to get them feeling profligate. Sam’s Club is introducing a program in which it facilitates loans for shoppers of up to $25,000, backed by the Small Business Administration. Target will give its credit card holders 5 percent discounts. Toys “R” Us is instituting a holiday fund program where it adds to shoppers’ savings, and Staples and Office Depot are giving away office products for a penny or at no cost. ‘A lot of the government programs have come to an end,’ said David Bassuk, a managing director in the global retail practice at AlixPartners, a financial consultancy. “So retailers are taking it upon themselves to do everything they can to get the consumer to spend, even opening up their own wallets to give money back to the consumer.’”
But getting consumers to spend right now isn’t a simple prospect; unemployment remains at double-digit figures in many states across the country, with the economy unable to keep up as millions remain jobless and hundreds of thousands lose their unemployment benefits.
Still, retailers remain hopeful following news that personal income and savings are on the rise in the past several months. As such, stores are hoping consumers will part with some of their hard-earned cash when offered major over-the-counter offers, including the aforementioned enhanced discounts, giveaways and, in the case of Sam’s Club, even loans.
According to The New York Times, “Sam’s has done only a small test of the S.B.A. loans, and so far about 200 people have applied, with about 45 percent being approved, said Tim Jochner, chief executive and founder of Superior Financial. Sam’s is considering offering other financial products through third parties to help ease customers’ finances, like working-capital loans or peer-to-peer loans, said Hiren Patel, director for financial services at Sam’s….Of course, smart shoppers can take advantage of these programs without necessarily improving the stores’ revenues.”
In fact, some heady shoppers are taking retailer’s like Sam’s up on their low-interest loans, without using the money they save for anything but more savings. Yet, while a low-interest loan may be a good thing for someone struggling with a small business, more loans, discounts and giveaways that entice greater consumer spending—while great for the economy and retailers—can lead average Americans down the path to more debt in very uncertain economic times.
If you find yourself struggling financially, your next best bet is not to take out loans or spend more on retail sales, but to find permanent relief from your economic woes. In fact, if you’re drowning in debt and looking for a way out, knowing a qualified bankruptcy attorney is the first best step to help you regain your power, conquer creditors and face your financial fears, yielding—all with the right kinds of support, information and insights—at a low cost— for a viable and secure future. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Key Steps to Make it Through a Medical Emergency
Published Saturday, August 7, 2010 @ 8:45 am
The Obama Administration’s recent landmark health care laws will mean exciting changes for Americans seeking better medical insurance and/or facing crushing medical debt. But for many, these changes can’t come quickly enough. And for some the changes may come late—especially for already beleaguered and bankruptcy bound individuals facing unexpected illnesses, injuries or surgeries.
So what can you do to minimize the financial impact of an unexpected a medical emergency?
Step One – Assess the Damage
In the case of a medical emergency, you rarely have time to weigh the pros and cons of health care costs. Nevertheless, an important step once the bills are a foregone conclusion is to take some time to calculate the costs. What’s the final total of all of your medical bills? Has your injury or illness left you unable to work—either temporarily or for the long haul? Will you be able to keep your job, or a steady income, despite your disability?
Once you’ve assessed your fiscal (and physical) conditions, you can determine how the bills will balance with your budget, and how your medical condition will ultimately affect your ability to pay back those bills.
Step Two – Keep in Contact with your Creditors
Even amid injury or illness, it is of the utmost importance to stay connected with your medical creditors. Find out if your creditors would be willing to put off your payments while you’re out of action. Some creditors will acquiesce to your request for two or three month reprieve while you get back on you feet, always with the understanding that you will ultimately begin the repayment process once your deferment has ended. Keep in mind, this type of reprieve is only temporary; if you’re facing a long-term disability or an extended loss of income, your options may be limited to default or a discharge of this type of unsecured debt through the benefits of bankruptcy.
Step Three – Pay for the Priorities
Even if you’re bankruptcy bound due to overwhelming medical bills, it’s important to continue to pay what you can on secured debts like your home, car, etc. Even if you choose to dispense with your unsecured medical bills via bankruptcy, you’ll still want to pay for the things you’ll attempt to keep post filing. In short, if you’re able redirect available funds to keep your precious property versus paying down unsecured medical or consumer debts.
Step Four – Weigh Your Options, Including the Benefits of Bankruptcy
In some cases, when facing mounting medical debt without insurance, talking to your hospital’s billing department can help to reduce the damage. But the reality is, in most cases, emergency medical costs are a lingering problem leaving one easier option: bankruptcy. According to recent reports, medical bills played a role in 62% of personal bankruptcies filed in 2007, up 7% from 2001. Shockingly, 78% of these filers actually had health insurance.
If you are suffering from illness, injury and out of control debt, and considering filing a medical-related bankruptcy, it is important to remember that as unsecured debt, medical bills can be discharged entirely under Chapter 7 or Chapter 13 bankruptcy. Indeed, bankruptcy may be just what you need to help you get back on your financial feet again.
The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button and let these experts smoke out your next best financial steps.
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Creating a Realistic Chapter 13 Repayment Plan: The Problems
Published Friday, August 6, 2010 @ 12:38 pm
Chapter 13 bankruptcy involves the facilitation of a financial reorganization plan that allows you to pay back your expenses over the course of three to five years. As a result, a Chapter 13 bankruptcy also requires that you look ahead three to five years in order to construct a realistic and sensible plan that can work for you.
Unfortunately for many people who are bankruptcy bound, the future is far from unclear. And, just as many circumstances can occur that exacerbate your financial present and force you into bankruptcy, the same unexpected scenarios—from a job loss to a medical emergency—can cause your Chapter 13 reorganization place to fail.
In part one of this series, we’ll explore why so many Chapter 13 repayment plans fail for one (or several) reasons, including:
Poor Design
A house with a bad foundation can last a while without problems; but the smallest storm, wind, or water can ruin the entire structure. The same is true with a poorly designed repayment plan. A plan that doesn’t take into consideration potential problems over the long-term is destined to fail from day one. Working with a qualified bankruptcy attorney can help you craft a stronger and more sensible plan that takes into consideration even the smallest obstacles to success.
Unexpected Expenses
Even a good Chapter 13 plan can be stymied by unexpected expenses. Just consider today’s economy, for example: Many experts could not have predicted the record joblessness, housing crisis, and unprecedented economic downturn plaguing much of America for the past three years. Similarly, many debtors entering a financial reorganization plan post bankruptcy will likely face an uphill battle if they do not take into account unexpected medical bills, unemployment, the possibility that they owe more on their home than it’s worth, and other catastrophic changes in their economic well-being during the entire course of their bankruptcy. If these changes occur, it is possible to modify your plan and keep your bankruptcy alive. It’s important to inform your attorney of any changes immediately so that a timely modification can be made.
Inability to Live Within the Repayment “Budget”
Oftentimes, many consumers fall victim to the same budgeting woes that may have created their financial mess. Instead, our clients are encouraged to use their reasonable repayment plans (emphasis on “reasonable”) as a type of bankruptcy-sanctioned “financial planning,” that allows them to follow a schedule that alleviates debt while providing room to save and spend wisely.
Keeping Your Lawyer Out of the Loop
In what can be considered to be the worst case scenario, one or more of the above reasons is compounded to cause the debtor to get potentially fall behind in their Chapter 13 repayment strategy. What’s worse however is when the debtor fails to alert their bankruptcy lawyer to these facts. It is of the utmost importance to advise your lawyer of this change in circumstances so that the problem can potentially be dealt with before it gets too out of hand.
As a result of the intricacies of a financial repayment plan, it is essential to consult with a qualified attorney before entering into Chapter 13 bankruptcy. A qualified bankruptcy attorney is important during the bankruptcy process to help you navigate any uncertain waters and work in your best interests during the duration of your personal bankruptcy. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
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Americans are Digging Deep During a One-and-a-Half Dip Recession
Published Friday, August 6, 2010 @ 8:55 am
Have you heard from many experts and economists that the country’s headed for a double-dip recession—a second downturn that results from recent limits on economic stimulus? Well, take heart…we’re apparently only in a “one-and-a-half dip” recession.
That’s right. According to Robert Reich, Former Secretary of Labor, we’re in a one-and-a-half dip recession, with the worst is yet to come and politicians and other people in power should take note. With retail spending on a downturn, home sales in the dumps, and the average work week in decline, Reich argues the only thing that’s actually piling up in this economic climate is unsold goods, fallow homes and default loans.
As Reich writes, “The 1.5 dip recession should be causing alarm bells to ring all over official Washington. It should cause deficit hawks to stop squawking about future debt, blue-dog Democrats to stop acting like Republicans, and mainstream Democrats to get some backbone.
The 1.5 dip recession should cause the president to demand a large-scale national jobs program including a new WPA that gets millions of Americans back to work even if government has to pay their wages directly. Included would be zero-interest loans to strapped states and locales, so they didn’t have to cut vital services and raise taxes. They could repay when the economy picked up and revenues came in. The national jobs program would also include a one-year payroll tax holiday on the first $20,000 of income.”
Reich argues the recent job benefits extension is only a Band-Aid on a bigger unemployment issue. Instead he encourages the Obama administration to focus on an enhanced jobs bill that can help get Americans back to work and get consumer confidence back on track. As he put it, “Jobless benefits are humane but they alone don’t get jobs back.”
In anticipation of what Reichs predicts may be tougher economic times just around the corner, many aren’t waiting for government action but rather are taking their own financial futures in their own hands by furthering their education, shoring up their expenses, and, in some cases, taking on second and third jobs, where and if they exist.
But what if you’re already unemployed; or drowning in debt; or both? What can you do to make a new start before the recessionary weather returns?
If you are already struggling financially and fear the further economic impacts of a double-dip recession, now is the time to take on your financial woes and take back your fiscal freedoms by making a fresh start through bankruptcy. Discharging personal debt through bankruptcy now is, in some cases, the only solution for so many Americans—especially unemployed persons facing years without steady income—to keep their personal lives financially afloat and creditors at bay. In short, what policy makers can’t do for you, you can do for yourself.
If this sounds like you and you’ve already found yourself in dire straits just as America faces another economic downturn, knowing a qualified bankruptcy attorney is the first best step to help you regain your power, conquer creditors and face your financial fears, yielding—all with the right kinds of support, information and insights—at a low cost— for a viable and secure future. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Triangle Foreclosures Down for June, up for First Half of 2010
Published Wednesday, August 4, 2010 @ 7:11 pm
In the Triangle, an area known for entering recessions later and exiting them earlier, foreclosures continue to be a problem, as the rate dipped a tad in June but on the whole, remains above where it was last year at this time. For a market like ours, that’s not a good sign.
Foreclosure and bankruptcy are often wound tightly together. In most cases, if a person can’t pay their mortgage, a number of other bills are remaining unpaid as well. A lot of times it comes down to hard economic decisions. If it came down to a medical bill for a child or a mortgage payment, it’s a safe assumption that the mortgage is going to be late this month.
Surprisingly, and most likely out of fear of the unknown, very few people actually call their bank when they realize that the mortgage is becoming a burden too difficult to bear. More often, the first step is to pay late or not at all and then wait for a notice to arrive to begin the discussion about what comes next. Sometimes, your bank could help you before needing you to enroll you in a mortgage modification program, at which point you become just another number to the bank on a call queue and another statistic to the evening news. Being proactive, just like in bankruptcy, can help you tremendously when it comes to getting your mortgage under control.
The News & Observer reported that foreclosure filings in the counties of Durham, Johnston and Wake totaled 4,433 for the first half of 2010, a 24 percent jump from the same point in 2009. That’s a healthy spike, to be sure. Even with Wake County reporting only 443 foreclosures (a 20 percent decrease from last year’s June count) the county as a whole is higher than it was for the January to June period of 2009. Durham County’s foreclosure rate is higher by 10 percent for June and experienced a 35 percent increase for the first six months of 2010 in comparison with the first half of 2009.
The N&O notes that a foreclosure filing is only the start of the foreclosure process and that not every filing equals an official foreclosure. However, it still means that somewhere, a family is having a very hard time making ends meet, which is not a good sign for an economy believed to be in recovery. And it’s even worse for a regional economy that on a national basis is believed to be healthier than most.
In many real estate markets across the country, foreclosures are what lead the housing sales market. More agents are fielding calls from parties, either families or investors, looking to get in on the bottom of the housing cycle. Buying a foreclosure is not a real simple process often requiring a good deal of cash. Thus, it’s a niche market. In the end, real recovery in the housing market is going to take mainstream, mass-market buyers. That is, families with jobs. And today, there are just too few of them.
If you’re facing foreclosure, call a Bankruptcy attorney today. A Chapter 13 can help you stay in your home and possibly lower your monthly payment. Call 1-800-899-1414 today for a free consultation.
New Tricks of the Credit Card Trade
Published Wednesday, August 4, 2010 @ 6:55 pm
Last year’s Credit Card Accountability Responsibility and Disclosure Act was put into law to improve transparency between credit card companies and consumers, making card issuers not only provide their customers with more notice about increases in their interest rates, but also limiting below-board billing practices that inevitably left many in deep debt. But just months after this historic legislation was enacted to protect Americans, card companies have come up with all-new ways to con their customers.
According to The Wall Street Journal, major card providers from Discover to Citigroup to Chase are working to limit their lost income by working around the new rules—in ways that, in some cases, violate the new Credit Card Act directly—by replacing old, outmoded fees with new ones. As WSJ reporter Jessica Silver-Greenberg wrote this week in her article, “The New Credit Card Tricks,” “[T]he banks are getting aggressive. According to a July 22 report from Pew Charitable Trusts, a nonpartisan research group, the industry’s median annual fee on bank credit cards jumped 18% to $59 between July 2009 and March 2010. At credit unions, annual fees soared 67% to $25. During the same period, the median cash-advance and balance-transfer fees jumped by 33%.”
All of these tactics are meant to wipe out a $390 million a year shortfall in card company fee revenue caused by the Credit Card Act, according to David Robertson, the publisher of industry newsletter Nilson Report. But, as Silver-Greenberg reports, “some banks may be going too far. In a July 7 letter to the Office of the Comptroller of the Currency, which regulates many of the biggest U.S. banks, a coalition of consumer groups including the National Consumer Law Center, the Consumer Federation of America and Consumer Action flagged several “potential violations of the Credit Card Act.”
As a result, consumers must be ever more vigilant, in spite of new protections the Credit Card Act provides. Things to look out for include:
Late Payment Fees for Sunday or Holiday Due Dates
The Card Act stipulates that late-payment fees shouldn’t be triggered on a Sunday or holiday, when there is no mail delivery. This is so debtors won’t be hassled when they make a reasonable payment on the following business day. Unfortunately, card companies, especially ones who allow for online payments seven days a week, are using this as a loophole to charge excessive late fees when debtors don’t pay on the exact due date.
Rebate Card Offers
The Card Act also stipulates that card companies can’t hike rates on existing balances unless a cardholder is at least 60 days late. But, as The Wall Street Journal reports, “there is a creative maneuver around that: the so-called rebate card….Rebate-card offers to some of its customers last fall, offering to refund up to 70% of finance charges when customers pay on time. The problem: Rebate offers aren’t governed by the Card Act, and an issuer can revoke them suddenly and hit cardholders with high charges.”
Shortened Billing Cycles
While the Card Act requires companies to provide a window of at least 21 days from when a statement is mailed and when payment is due, it pays to check your statement, as many are finding credit card issuers are being far from compliant, pushing up billing dates and surprising consumers.
In addition to these added credit card costs, the report finds that card companies are reinstating Inactivity Fees, raising Balance-Transfer Fees and pushing for more Minimum Finance Charges.
As everyone now knows, there’s normally a heavy price to pay for playing with plastic. If you too have been effected by the Credit Card Act “fallout” and are wondering how to reduce your credit card debt and get back on track, knowing a qualified bankruptcy attorney can also help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Creating a Realistic Repayment Plan: Paying Your Creditors
Published Wednesday, August 4, 2010 @ 6:54 pm
Chapter 13 bankruptcy can be a great way to clear your financial slate, while, at the same time, entitling you to hold on to your precious property even in the most precarious economic situations. To do so, Chapter 13 bankruptcy requires you to construct what is hopefully a realistic financial reorganization plan that allows you to pay back all of your debts through a monthly repayment plan, much like your car note, credit card bill or house note.
In part one of the series “Creating a Realistic Chapter 13 Repayment Plan,” we discussed how an unrealistic Chapter 13 repayment plan (i.e., one that is poorly designed, doesn’t account for unexpected expenses, and one that doesn’t keep your lawyer in the loop, combined with an the debtor’s inability to stay inside a repayment ‘budget’), could lead to Chapter 13 failure. Part two explored the importance of going beyond the bare minimum payments when considering and constructing a worthwhile Chapter 13 repayment plan. In the third part of the series, we’ll review how exactly you pay creditors under a Chapter 13 repayment plan.
Chapter 13 repayment plans are commonly composed of an even number of payments, doled out over the course of three to five years. Despite this even disbursement of payments, all creditors may not receive the same amount of payment at the same time. Under your Chapter 13 plan, debts are prioritized, with high priority, secured debts such as taxes and mortgage payments getting paid off first; and unsecured, lower priority debts such as credit card bills and payday loans receiving lower priority.
Keep in mind, the repayment plan amount remains the same throughout the Chapter 13 schedule, even when priority creditors are paid off. In these cases, unsecured or lower priority creditors will receive more when higher priority debts are satisfied.
In some cases, when the property secured by the loan is worth less than the debt itself, Chapter 13 installments are split, with some portions covering secured debts and others handling unsecured debt. For example, when a Chapter 13 bankruptcy case includes the salvaging of a vehicle with a $20,000 debt and the car is only worth $10,000, the other $10,000 portion of the loan is not considered secured. As a result, debts paid out will be both secured and unsecured. Once the Chapter 13 Bankruptcy is completed, the unsecured portion of the car loan will be discharged.
These types of scenarios are precisely the reason it is essential to pay all portions of your repayment plan on time. If, for example the debtor does not fulfill all of the requirements of the Chapter 13 repayment plan or neglects even one payment during the course of the schedule—even a single payment following the completion of secured, high priority payouts—the debtor is seen to have failed in the Chapter 13 repayments, leaving unpaid these same unsecured debts attached to semi-secured assets. In the case of a car, these missed unsecured payments could lead to forfeiture of the entire asset and means the debtor could lose their vehicle to repossession, even after paying off the secured portion. In these scenarios where your finances change and Chapter 13 payments are in doubt, it is vital to consult with a bankruptcy attorney who can help you plan your next best steps including a possible conversion to a Chapter 7 liquidation bankruptcy.
As a result of these very intricacies and requirements of a financial repayment plan, it is essential to consult with a qualified attorney before entering into Chapter 13 bankruptcy. A qualified bankruptcy attorney is important during the bankruptcy process to help you navigate any uncertain waters and work in your best interests during the duration of your personal bankruptcy. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
High Income Debtors and Bankruptcy
Published Wednesday, August 4, 2010 @ 6:52 pm
In these tough financial times, finding people with a steady job, much less a job that provides a higher income, can be difficult. As a result, it may be surprising to find a lot of these high-income debtors are currently considering bankruptcy. But in this economic downturn, many of these men and women are suffering from unexpected challenges to their steady income and business, and, as a result, joining millions of other Americans by seeking the safe harbors of bankruptcy to protect what they’ve worked for.
If you happen to be one of these high-income debtors, you may be wondering what bankruptcy can offer and if you’re even eligible. Well, take heart, high incomers, there’s a bankruptcy solution for you, compliments of the Bankruptcy Code.
The Bankruptcy Code seeks to encourage higher-end entrepreneurs to take risks in their business dealings. To do so, the Code was written in a way that allows individuals with mostly non-consumer debts accumulated during the course of business to be able to discharge their debt in Chapter 7 bankruptcy. In this way, high income individual can receive the same bankruptcy relief as individual debtors seeking a personal bankruptcy to dispense with their consumer debts without fears that they would not pass the “Means test.”
Bankruptcy’s “Means Test” is a formula for determining your ability to pay back your debts. Your inability to pass this test limits your bankruptcy options from both Chapter 7 and Chapter 13, to simply being able to file under a Chapter 13 plan. As a result, while a traditional Chapter 7 personal bankruptcy liquidation may not be available for some high-income debtors, the Code has made allowances so that these same debtors can, in turn, qualify to liquidate their debts if the majority of these debts are non-consumer debts.
The next logical question then is what is non-consumer debt? A couple of examples include:
Credit Card Debts Stemming from Business Purchases
Did you use a credit card to purchase computers, printers or other office supplies for your business? Use plastic for business repairs or additions? If you’re a high-income debtor and have credit card debt incurred to buy equipment and supplies for your business, you may be able to discharge those debts in Chapter 7 bankruptcy. Conversely, due to “means test” problems, high income debtors may not qualify to discharge debts from credit card purchases of personal computers, furniture or to remodel their home.
Loans Related to Business Expenses or Inventory
High-income debtors can also discharge debts like personal loans if they are used to purchase inventory for a business or provide for other related expenses. As before, the means test would prohibit discharge of similar personal loans if they were used to help with a home mortgage or other personal costs.
Don’t wait for your own entrepreneurial bubble to burst. Join the millions of American who have found immediate help to keep their lives on track while retaining their hard-earned cash. If you are a high income debtor who has been affected by the economic crisis, knowing a qualified bankruptcy attorney can help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Healing Your Debt Settlement Sickness
Published Wednesday, August 4, 2010 @ 9:01 am
Say you sought the help of a doctor to cure some ill in your life. However, instead of helping you heal, your physician actually makes you sicker. Realizing this, you would likely not only move on to a different doctor, but also report the offending physician—a professional, like many others, whose misconduct could mean malpractice, serious sanctions and a loss of licensure.
Unfortunately, this same kind of accountability hasn’t been as much a part of the debt settlement industry. In recent years, the lengthy recession has delivered to them an abundance of debt-saturated “patients,” suffering from the ills of unemployment and sliding toward the brink of bankruptcy; and until recently no one had really monitored the industry’s activities.
This lack of regulation is shocking considering that settlement companies typically harvest fees reaching 15 to 20 percent of the credit card balances carried by their customers, and they tend to collect upfront, regardless of whether a customer’s debt is actually reduced. State attorneys general from New York to California and consumer watchdogs like the Better Business Bureau say the industry’s proceeds come at the direct expense of financially troubled Americans who are fleeced of their last dollars in an effort to avoid bankruptcy. But these same people rarely emerge from debt settlement programs with their credit card balances eliminated and many end up worse off, with severely damaged credit, unending threats from bill collectors and lawsuits from creditors.
Even this week, Illinois Attorney General Lisa Madigan announced the Illinois Debt Settlement Consumer Protection Act, arming Illinois consumers with the strongest protection in the nation against the abuses and unfair treatment from these companies. Madigan said she was prompted by “the drastic increase my office has seen recently in complaints against dishonest debt settlement operators. Since 2009, my office has filed seven lawsuits against firms using abusive and deceptive means to take money from Illinois consumers whom they promised to help through their financial woes.”
Like people in Illinois, customers all over the country have bought into bankruptcy alternatives like debt settlement—and by doing so, face the real possibility that before they know it, they’re paying the company thousands of dollars of non-refundable fees up front. And while customers are told to stop paying their credit cards as the firms negotiate a settlement, often the settlement never actually happens. As a result, Madigan says, “About two-thirds of consumers drop out of these programs before their debts are settled. They not only lose the thousands of dollars in non-refundable fees, they are often deeper in debt than when they started thanks to penalties and late fees imposed by the credit card companies due to the lack of payments.”
In short, debt settlement firms are bad medicine: financial quacks trying to sell their customers a quick and easy cure for the economic ills of our Great Recession. Unfortunately, not all states have enacted protections against these charlatans, leaving many open to the tricks of the debt settlement trade.
So, if you are considering bankruptcy alternatives due to mounting credit card debt balances, it’s advised that you instead address your debt with a knowledgeable attorney and a proven solution to insolvency: bankruptcy. Knowing a qualified bankruptcy attorney can also help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
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Working Together With Your Bankruptcy Trustee
Published Wednesday, August 4, 2010 @ 8:08 am
Many see bankruptcy as a lonely journey into a new financial frontier; but in reality there are many people available to walk you down your new path to fiscal freedom, including family, friends, your trusted bankruptcy attorney, and, finally, the bankruptcy trustee.
Your bankruptcy trustee not only administrates your bankruptcy case, she is also the means to your bankruptcy end—the lynchpin to a fresh new start that only bankruptcy can provide. As such, if you want to feel the full benefits of your bankruptcy filing, it’s all too important to be conscientious about keeping your bankruptcy trustee content and cooperative.
So, you might be asking: how do I stay on my bankruptcy trustee’s good side?
Here are a few simple ways you can improve your chances at creating a “smooth sailing” situation with the trustee assigned to your fresh bankruptcy:
Continued Cooperation is the Key (and the Law)
It may sound obvious, but continuing to be cooperative with your bankruptcy trustee throughout your bankruptcy case is (1) the best way to keep your bankruptcy on track and (2) is required by bankruptcy law. By law, any failure to provide all of the requested documentation, forms, and records, with your bankruptcy trustee could result in the dismissal of your bankruptcy case.
Taking Care of Tax Requests
In terms of keeping records to keep your trustee happy, your most recent tax returns will be a good first step in doing the trick. Your bankruptcy trustee must inspect your tax records for information about the efficacy of your filing. Don’t have your tax returns to offer? Request a copy from the IRS so that your bankruptcy trustee can research your returns to authenticate your financial status and keep your bankruptcy moving forward. Your bankruptcy attorney will undoubtedly ask for your most recent returns before your case is filed, so be prepared.
Keep a Wealth of Income Records
In addition to keeping your tax returns at the ready, it also pays to provide your bankruptcy trustee with your most recent pay stubs from your job upon their request. If you, like many Americans in the current economic downturn, are unemployed without recent pay stubs to provide, your bankruptcy trustee can also use a record of unemployment benefits, alimony and other spousal support, and disability benefits. If you own your own business or are otherwise self-employed, be prepared to provide bank or financial statements showing income and profits from your endeavors.
Post-Divorce Presentations
If the current economic situation took its toll on your marriage and you are recently divorced, it’s important to present your bankruptcy trustee with records illustrating divisions or liquidations in your marital assets. You bankruptcy attorney can help you navigate this process, determining the hows, whens and whys of presenting divorce-related windfalls during the bankruptcy process. Keep in mind though, once you have filed for bankruptcy transparency with your trustee is a must.
Accumulating Asset Records
If you’ve sold or otherwise transferred property or other assets to another person or company within a year before filing bankruptcy, your bankruptcy trustee can request records that attest to the transfer. Having these records at the ready will be another way to keep your bankruptcy trustee happy and working toward your financial goals.
As mentioned, knowing a qualified bankruptcy attorney is the first best step to not only face your financial fears but also address the needs of your bankruptcy trustee, yielding—all with the right kinds of support, information and insights—at a low cost— for a viable and secure future. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
The Best Credit Cards Right Now
Published Tuesday, August 3, 2010 @ 7:08 pm
Following several years of the worst economic downturn in recent history, economists, commentators and financial experts have recently been heartened about prospects for economic growth and recovery this year as industries increasingly report better profits and the additions of new jobs. Yet, as the economy emerges from the doldrums, consumers understandably remain skiddish—avoiding non-essential expenditures in lieu of financial introspection. In fact, if history is any guide, Americans are likely to spend (no pun intended) the next several years trying to reduce their debt.
But what about those people who want to spend, but spend more wisely?
For them, it might be finding the right credit card for these tough financial times. Unfortunately, a recent online report from msnbc saw a rise in all types of credit card offers in the first quarter of 2010 alone tells the tale, as banks sent out 481.3 million card offers, according to Synovate Mail Monitor.
With so many options, how should you choose?
As the song goes, “if you’re gonna do it, do it right.” And according to a recent report from The Huffington Post by consumer educator and advocate Curtis Arnold, there are some safer options out there for people who can’t go without credit. These cards, by category, include:
Best Airline Credit Card:
Citi Premier® Pass/Expedia.com Card
If flight is your fancy, Arnold recommends this credit card with a terrific travel rebate program. “Start off with a $100 statement credit with your first eligible purchase. You get awards roughly equivalent to 1% of purchases as credit toward future flights on partner airlines. You also earn one point per dollar spent on the card and one point for every three miles flown. Expedia runs the rewards redemption program, allowing customers to track low fares using points instead of dollars. Earn up to 100,000 points per calendar year with no annual fee.”
Best Travel Credit Card:
PenFed Premium Travel Rewards American Express® Card
If you’re on the go and need a card that can travel with you, Arnold gives the thumbs up to another great travel rewards credit card for members of the Pentagon Federal Credit Union. “PenFed rewards its cardholders with special deals on hotel upgrades and discounted access to airport executive lounges worldwide. Aside from the fabulous rewards, you also get the excellent customer service that credit unions are known for. Enrollment in the National Military Family Association qualifies any American to join this credit union, not just veterans.”
Best Low Interest Rate Credit Card: Simmons Visa® PlatinumR
While many banks hiked card interest rates following the reforms of 2009’s Credit CARD Act, Simmons kept their rates low. So, for those with excellent credit, the Arkansas bank offers excellent customer service along with a regular 7.25% APR.
Best Low Introductory Interest Rate Credit Card:
Citi® Platinum Select® MasterCard®
For many, balance transfer is a delicate game of cat and mouse, often leaving the debtor with multiple cards and high interest payoff. Not so says Arnold of this Citi Card with its introductory 0% APR on balance transfers and purchases for 18, 12, or 7 months, depending on your credit history. “There’s a 3% balance transfer fee, but it’s still a great way to transfer a balance and pay no interest for up to 18 months. Once the introductory period is over, you still get a great rate. The regular variable APR is 9.99 – 19.99%.”
Best Cash-back Credit Card: Chase Freedom (SM) Card
Another card for those with excellent credit is this good cash-back credit option. As Arnold writes, “You get 5% cash back in rotating categories such as groceries, gas, and home improvement, and 1% cash back on all other purchases. Another great feature of this card is that you can get 20% cash back when you shop online from selected merchants. And if all that isn’t enough, you don’t have to worry about your cash back rewards expiring or about reaching the spending tiers that some cards have.”
Best Reward Points Card: Citi Forward® Card
If, for you, spending on credit is all about the rewards, Citi’s “Forward,” fits the bill. “Sign up for paperless statements and spend $250 in purchases during the first three months after opening your account and earn up to 8,500 points. Do you enjoy dining out? Get five ThankYou points for every $1 you spend on restaurants and entertainment. And you still get one reward point for every dollar spent on other purchases.” Not a bad way to be green while you’re spending it.
As with all new credit cards, it’s still vitally important to read the entire card agreement before committing, keeping in mind the best offer for your next piece of plastic may come from diligent online research rather than snail mail solicitations.
And, as everyone now knows at this point, there’s normally a heavy price to pay for playing with plastic. If you too have been effected by the economy and are wondering how to reduce your credit card debt and get back on track, knowing a qualified bankruptcy attorney can also help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
The U.S. Economy Can’t Seem to Recover Fast Enough. Can You?
Published Monday, August 2, 2010 @ 9:00 am
Despite a continuing overseas economic crisis, the U.S. saw a fourth consecutive quarter of economic growth. This good news is tempered by another economic prediction: with stimulus spending on the decline and the economic recovery sputtering, experts are warning of a troubling new pattern—an economic upturn too slow to put Americans back to work and get the nation back in business.
In fact, according to a recent Washington Post article, “growth was below the long-term trend rate at which the U.S. economy expands and is not strong enough to drive down unemployment. And more worrisome, many of the details of the report point to a continued slowdown of expansion this year…. The new numbers — and the spreading realization that sluggish growth may be a lasting trend rather than a one-quarter phenomenon — hang over the political world heading into November’s midterm elections. The House of Representatives left for its August recess Friday without resolution of policies meant to boost the economy, including legislation to support small-business lending.”
Americans are spending more on goods and services. But in the wake of staggering unemployment, leveling incomes, and staggering debts that linger from pre-recessionary spending, we can’t seem to spend fast enough to help the economy. A weak economy can’t create jobs. And the cycle of tough economic times, low consumer spending, and “too-small-to-help” growth continues. “The problem is it looks like the consumer was really weakening in June, so you’re starting the third quarter in a position of weakness,” David Shulman, senior economist at the UCLA Anderson Forecast told The Washington Post. “The components of this report are ugly.”
And with the imminent end of certain factors that had helped buttress the U.S. economy over the last year, including boosts from businesses building their inventories, surges from the home-buyer tax credit and the results of federal spending, economy growth is expected to come in the form of “an ongoing sluggish recovery.”
If you feel your own economic recovery is sluggish at best, and you’re continuing to drown in personal or even non-consumer debt, it might be time to take your own financial matters into your own hands and join the millions of people who have already found financial relief in Chapter 7 or Chapter 13 bankruptcy throughout our “Great Recession.” By discharging personal or business debt through bankruptcy you could solve many of your most pressing financial problems—righting your course for a better financial future…just as the country attempts to do the same. This will put you in the right fiscal place at the right time to hit the ground running as the nation tries to right itself, allowing you to start over in a better position than most.
Specifically, a personal bankruptcy through Chapter 7 or 13 bankruptcy will automatically stay creditor action and harassment, including those annoying collection letters, phone calls and repossessions; as well as dispense with much, if not all, of your secured and unsecured debt, either via an exchange of collateral, property or other assets, or through a personally-tailored payment plan that you can afford.
The first step is knowing a qualified bankruptcy attorney who can help you regain your power, conquer creditors and face your financial fears, yielding—all with the right kinds of support, information and insights—at a low cost— for a viable and secure future. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
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How to Fight Back With Bank Fees
Published Monday, August 2, 2010 @ 12:57 am
In the current economic environment, where lawmakers are setting their sights on tighter restrictions on the financial industry’s abusive practices—from excessive overdraft charges to out-of-control interest rates— banks appear to be fighting back with higher fees.
According to The Wall Street Journal, “industry leaders like Bank of America Corp., Wells Fargo & Co., HSBC Holdings PLC’s HSBC North America, Fifth Third Bancorp and others are experimenting with new ways to nick their customers, from imposing maintenance fees on checking accounts to rolling out new charges for services like fraud alerts, debit cards and credit reports.”
This news should matter to anyone with a bank account. Even though new rules mean banks must fully share any new fees with their customers, these institutions can do so in what WSJ calls “the ordinary-looking correspondence that most consumers toss in the trash without reading. The result: Many people will learn of the new charges only after opening their monthly statements.”
Customers should remain vigilant. Even customers who keep low balances and manage their accounts responsibly can be hit with so-called “penalty fees.” Here are some things to look out for and things you can do to fight back against excessive banking fees
Checking Fees
In this new wave of banking fees and costs, free checking may be the first to go. Instead, some banks are implementing monthly fees for keeping an account open, ending what has been years of free checking options for millions of customers and a major bank enticement meant to persuade people to do more types of business with their bank. If your free checking goes the way of the dinosaur, one way to get a better deal on checking fees is to do a lot of business with your bank—from mortgages to car loans. For some banks, this added activity will be an incentive for your bank to waive your checking fee. If worse comes to worst, there’s always the option to move your money. Shopping around for a better banking experience can not only mean free checking but also a better ongoing relationship with a community bank.
In addition to checking fees watch out for those fees related to checking account woes, including:
Maintenance Fees
As mentioned, checking account maintenance fees are becoming the new banking standard. In addition to doing more types of business with your banks, sometimes banks will waive these maintenance fees when you keep a minimum balance, combined balances in several accounts, or even when you use direct deposit.
Debit Fees
Often banks will require you to use your debit card a certain amount of times in order to avoid debit card fees. To offset this, often banks will match these transactions with cash back, often deposited directly into a separate savings account. Check into your bank’s options.
Interest
Historically, bank accounts with low fees don’t pay any interest. This give and take is typical. Keep this in mind when setting you accounts for the long haul. Often, your money is better housed in a different account.
Rewards
Similarly, accounts with the lowest fees typically don’t offer rewards. Check with your own bank about different rewards; but always read the fine print as often in the financial world, “reward” is bank code for “to the customer’s ultimate detriment.”
Minimum Deposits
The Wall Street Journal also warns that banks may raise minimum initial deposit requirements to encourage people to keep more of their money in their coffers. Again, when opening a bank account in this tough economic climate, it’s best to do your research and shop around.
And, as always, a little due diligence now can go a long way later. Happy banking.
Americans FICO Scores are at an All Time Low. So What?
Published Friday, July 30, 2010 @ 8:42 pm
It seems that in today’s difficult economic weather, just about everyone is a risk for a lender.
Earlier this month, FICO, Inc. (the company that develops credit risk metrics) reported that America’s collective credit score is at an all-time low. Close to 43.4 million consumers have a credit score at or below 599, which is the risk benchmark for the majority of lenders. This means that more than 25 percent of us are likely to not get a car loan, new credit card (really?) or a mortgage.
FICO arrived at their conclusion through an analysis of April’s consumer credit reports. Historically, only 15 percent of all “credit-active” consumers fell below the 599 mark. That statistic alone should demonstrate the impact of what is currently happening with our economy. In other words, it’s been a long time since our country has been in this type of situation.
One of the reasons for today’s poor credit scores is the widespread availability of credit in the last few years. Quite literally, credit spread like a virus. Neighbors saw neighbors move into bigger houses, buy faster cars and take extended trips and wanted the same. Financial conservation became a virtue of past generations, like butterfly collars and 57 Chevys. In 2007, that’s just how you lived. Equity lines. Sub-prime mortgages. Rewards programs.
In response, personal bankruptcies are continuing to climb, and probably will for quite some time. As we have said in previous posts, often those most in need of bankruptcy code protections don’t file, perpetuating their issues. Our hope is that many of our clients will be in an ideal position to reclaim their financial livelihood when our country gets to a point where economic recovery can be legitimately proven and not just faintly derived from confusing figures talked about on business stations.
In light of this news, we are reminded that we tend to put a lot of pressure on a number. This becomes a recurring topic on the blog because we have been taught that a solid credit report is a sign of success, a mark of “making it.” We’re told we can’t have things and can’t go places. None of which is really true. As we have said numerous times in this space, wealth is relative. Pursue only what you need, and try to need very little. And if your obligations are forcing you to choose between paying back an aggressive creditor and putting food on your family’s table, it’s time to think about bankruptcy. Call the experienced bankruptcy attorneys at the Law Offices of John T. Orcutt for your free consultation. 1-800-899-1414. Call today. Offices in Raleigh, Durham, Wilson, Fayetteville and Lumberton North Carolina.
Are You One in a Million?: A Million Homes Facing Foreclosure in 2010
Published Friday, July 30, 2010 @ 2:58 pm
More bad news for those facing tough financial times: mortgage foreclosures are likely to top the one million mark in 2010. As The Associated Press reported in the last week, “Nearly 528,000 homes were taken over by lenders in the first six months of the year, a rate that is on track to eclipse the more than 900,000 homes repossessed in 2009, according to data released Thursday by RealtyTrac Inc., a foreclosure listing service.”
By comparison, according to RealtyTrac, in an average year the United States only sees about 100,000 homes in foreclosure. So, with the country on track to face ten times that amount of foreclosures this year, with 1.7 million U.S. homeowners already getting some kind of foreclosure-related notice between January and June of this year, that means one in every 78 homes is facing foreclosure already.
Given these staggering figures, you might be wondering: Are you one in a million?
Understanding the ins and, most importantly, the outs, of foreclosure can prevent you from being hurt by the lingering home crisis. Here are steps in the foreclosure process, including what causes a bank to repossess your home and what you can do to prevent it:
Step 1: Delinquent Payments: If you are delinquent on a mortgage payment by 30 days or more, your mortgage lenders may send a notice that your house is in foreclosure—the first sign of the foreclosure process. If missing a payment is unavoidable and you receive notice of a pending foreclosure, your first best step is to notify your bank about your financial situation, followed by a quick call to a qualified bankruptcy attorney who can help stop the foreclosure, not to mention help you to keep your home, through a Chapter 13 filing.
Step 2: More notices and notifications: While procedures vary from state to state, if missing mortgage payments becomes the norm, your lender will likely follow up their initial notice with more contact via phone and mail that foreclosure proceedings are officially under way. In this case, again, it’s best to contact a bankruptcy attorney as soon as possible. Your bankruptcy filing can stop lender harassment and contact, and get you back on the road to financial recovery.
Step 3: Eviction: One of the toughest parts of the foreclosure process is an eviction. Even though it can take more than a year for a bank to repossess your property, an eviction means you’re out in the cold, stripped of a home of your own. Chapter 13 bankruptcy can prevent eviction, allowing you to stay in your abode not only during your bankruptcy, but throughout the three to five year repayment process, and depending on your jurisdiction’s laws, possibly bring your mortgage payment down.
Step 4: Foreclosure auction or sale: Barring a bankruptcy or a modification from your lender, your home will likely be repossessed. The bank then owns your house and is entitled to sell it at a foreclosure auction or using a short sale. As such, any proceeds from these sales remain with the bank, leaving you with no roof over your head and no equity for your troubles.
Don’t wait for your own housing bubble to burst. Join the millions of American homeowners who have found immediate help to keep their hard-hit homes. If you have been effected by the mortgage crisis, knowing a qualified bankruptcy attorney can help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
The Dangers of the DIY Bankruptcy
Published Friday, July 30, 2010 @ 8:38 am
Given the popularity of channels like HGTV and all of those televised extreme home makeovers , it’s more than apparent that America is a nation full of “do-it-yourselfers:” people drawn to the idea of going it alone in order to get it done right—their way, the first time.
As a result, it’s not surprising that in this self-supported culture there are so many services available online and offline that, for a fee, offer any DIY inclined consumer the opportunity to file their own bankruptcy. In fact, in these tough financial times, DIY bankruptcy petition “farms” are becoming increasingly popular for cash-strapped debtors who know that they need bankruptcy protections but don’t believe that they can afford an actual bankruptcy attorney. Using these services could spell trouble for your self-perpetuated petition and your already beleaguered budget. Here’s why:
Lack of Adequate Information
When you begin a DIY project for the first time like installing a light or fixing a leaky faucet or even building a home addition, it’s often helpful to have someone there to do more than just sell you the materials. A little instruction can go a long way in making the project a success. The same is true in bankruptcy. Unfortunately, many DIY bankruptcy mills advertise self-serve bankruptcy forms that a debtor may purchase with no instruction manual on how to fill in the forms, much less get the most out of their bankruptcy petition. In the end, mistakes in the bankruptcy forms and filings can cost already insolvent debtors more time and money, including problems with keeping creditors at bay in the future, and possible criminal action if you have omitted an asset or mis-categorized a transaction.
Not Taking Earned Exemptions
In addition to confusion about forms and filings, a lack of instruction can lead to debtors missing out on much needed bankruptcy exemption—often the difference between saving your precious property or losing it to a circling creditor. When dealing with a bankruptcy trustee or creditor claims, a bankruptcy attorney’s experience can be invaluable in determining which of your remaining assets are exempt from their ongoing demands and how to properly claim exemptions.
No Protections From Creditor Attacks
If you’re trying to save your home or car, your bankruptcy petition can be that much more important. However, debtors that go it alone for DIY petitions, face an uphill battle in enacting and enforcing automatic stay protections that help end creditor harassment, foreclosures and repossessions. In the alternative, a personal bankruptcy filing that is accurately filed as Chapter 7 or Chapter 13, and closely monitored by an experienced bankruptcy attorney can quickly and easily save real and personal property that would otherwise be at the mercy of a trustee anxious to pay off debt and creditors anxious to reclaim what they claim to be theirs.
As a result of the intricacies and nuances of a modern bankruptcy filing, it is essential to consult with a qualified attorney. In most cases, the up front fee for filing is minimal, as little as $338.00. Why go through the headache of doing this on your own? A qualified bankruptcy attorney is important during the bankruptcy process to help you navigate any uncertain waters and work in your best interests during the duration of your personal bankruptcy experience. The bankruptcy attorneys at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Mortgage Modification and Bailouts Fail. It’s time for Something New to Help the Economy.
Published Thursday, July 29, 2010 @ 2:27 pm
People are often deterred from filing bankruptcy by a nagging sense of pride that tells them that asking for financial help is somehow admitting defeat. Well, in this type of economy, it couldn’t be further from the truth. And if you need more evidence of that, consider the state of the federal bailout effort, which, while lacking in headlines, continues to be more aggressive today then when it was initially introduced.
It is true that the big bailout, the one for Wall Street, is in view of the finish line. Yet, federal support (tax money) is still being distributed to countless organizations, according to the highest official on the subject, Neil Barofsky.
The special inspector general for the Troubled Asset Relief Program (TARP) issued a report that showed federal spending in support of private financial institutions is currently at $3.7 trillion, an increase of $7 billion from last year. A large amount of the money is coming from the Federal Reserve and FDIC. The housing sector is seeing its fair share as well.
In his report on the state of TARP, Barofsky commented on the Obama Administration’s federal mortgage modification program, citing its slow progress and the substantial gap between the current number of homeowners helped and its goal of assisting three to four million. While this fact makes for easy political debate, its relative failure hardly falls on the lap of the President. It’s simply another example of big government inefficiency.
With all of the corporate bailouts going on, where is the bailout for the taxpayer? Where is your bailout? Congressional efforts to help Americans who are flailing in the economic deep end are simply not working. The mortgage modification program has only helped a fraction of homeowners, and more homes are being lost to foreclosure every day. It’s time for you to consider real economic relief- it’s time to consider bankruptcy. With the power of federal law, you can stop foreclosure, stop harassing creditors, and even stop the IRS. Preserve your family’s future and contact a bankruptcy attorney today!
Brought to you from the Law Offices of John T. Orcutt, providing real debt relief to thousands of North Carolina residents. Call 1-800-899-1414 to schedule your free initial debt consultation.
In the midst of trying to collect all these spilled marbles, more of us fight to find jobs and pay our bills. If your struggling and need a
TANF Tanks, Affecting Thousands of American Workers
Published Thursday, July 29, 2010 @ 7:25 am
In order to assist the millions of jobless Americans during our recent “Great Recession,” Congress used stimulus funding to buttress Temporary Assistance for Needy Families programs (or TANF) in states across the country aimed at assisting them to provide work for people with children. Unfortunately, if you or someone you know has been helped by the TANF Emergency Fund, not unlike the hundreds of thousands of other families across the country, your support is about to run out.
According to a report by The Huffington Post, “Congress is set to increase unemployment by not reauthorizing a fund for a subsidized jobs program that will expire on September 30, jeopardizing 240,000 jobs in 37 states ‘Unless Congress extends the fund, tens of thousands of people across the country will lose jobs — potentially raising the unemployment rate in places with particularly large programs, such as Illinois and Los Angeles,’ writes LaDonna Pavetti of the progressive Center for Budget and Policy Priorities. In May, the House approved a bill that would have reauthorized funding for the TANF Emergency Fund program, but the “tax extenders” measure crumbled in the Senate over deficit concerns from the right. Senate Democrats eventually dropped the TANF funding, as well as $16 billion in Medicaid assistance to states, in an effort to pass an urgent reauthorization of unemployment benefits, which lapsed for 2.5 million people before Democrats finally succeeded in breaking a Republican filibuster last week.”
As a result, the irony is that a win for many jobless Americans in terms of unemployment benefits extensions is now a loss for many others who may now need them. And not unlike Congressional justifications for dragging feet on unemployment benefits extensions, many are touting that the end of TANF is important to prevent a situation where the poorest citizens have incentives not to work.
But for many hardworking Americans, simply trying to scrape by, and many politicians outside of an election-year Congress, this justification for reducing stimulus while the economy continues to sputter, simply doesn’t add up. In fact, state leaders and lawmakers are advocating for a TANF program they believe is a silver lining to the dark cloud of stimulus failures, creating local jobs precisely when and where people most need them. As San Francisco Mayor Gavin Newsome wrote about TANF, as accounted for in America’s largest economy in California, “The new jobs bill is an enormous opportunity for lawmakers to give a boost to a program from the stimulus that LA and San Francisco are using to create thousands of jobs.”
Still, many can’t wait for the legislative branch to right the wrongs of a three-year recession. As a result, many are taking things into their own hands to address their financial woes and take back their fiscal freedoms through the benefits of bankruptcy. These people—whether employed or jobless— know that bankruptcy is their only shot to discharge personal debt and other lingering financial problems such as foreclosures, repossessions and evictions.
If this sounds like you and you’ve already found yourself in dire straits just as America faces another stimulus shortfall, knowing a qualified bankruptcy attorney is the first best step to help you regain your power, conquer creditors and face your financial fears, yielding—all with the right kinds of support, information and insights—at a low cost— for a viable and secure future. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Many Americans Don’t Have Enough Savings to Cover Job Loss
Published Wednesday, July 28, 2010 @ 9:16 pm
A recent insurance company survey highlights the fact that a large percentage of Americans are not financially prepared for a sudden loss of employment. Saving an “emergency fund”, as the financial advice columnists and radio show hosts like to call it, is far easier talked about during afternoon drive time than done. Heck, it’s the emergencies that pop up while trying to save for an emergency that prevent us from being able to squirrel away enough cash to prepare for the worst. Have a few hundred bucks to put away? Oops, there go the brakes on the minivan.
MetLife’s report shows that close to half of all Americans would be unable to pay their bills if they lose their job. In total, 65 percent said they could maybe cover a month or two, but not three, which is the coveted benchmark. In today’s tough job market, even a 6 month emergency savings account is probably an inadequate safety net.
Now, this is a wake-up call readers. Stop and look around at your situation. It’s time to start saving.
Take this opportunity to find every instance of money heading out and shut down the leaks. And if a significant portion of your income is going to pay unsecured debt, call a bankruptcy attorney today. Discussing your options with a bankruptcy attorney will give you one more perspective on your situation. Maybe bankruptcy isn’t your best option, but you don’t know until you’ve taken a hard look at your financial situation and talked to an attorney.
Look, we know you’ve probably heard this all before. But if you’re still reading about it, what have you done about it? Digging out of a financial hole is no easy job. Rest assured, it will take time. And by all means, let us know if we can help.
From the Law Offices of John T. Orcutt, with offices in Raleigh, Durham, Fayetteville, Wilson, and Lumberton North Carolina. Call us today for sound financial advice.
Long-Term Unemployment Takes its Toll
Published Wednesday, July 28, 2010 @ 6:16 pm
It may come as no surprise that long-term unemployment has a greater effect on layoff victims compared with shorter spells of joblessness. What you may not know is that this impact has far-reaching implications for family, friends and feelings about oneself.
According to a new Pew Research Center survey, more than four in ten (44 $) of people out of work for six months or longer said unemployment had led to “major changes” in their lives, compared with 31 percent of people jobless for less than six months. Forty-three percent of long-term unemployed said they lost contact with close friends, and 38 percent said they lost some self-respect. “Few significant differences are evident between workers who were unemployed less than three months and those who were jobless for three to five months,” according to Pew. “But among those unemployed for six months or longer, experiences with emotional problems increased dramatically.”
Pew’s employment data illustrates how lengthy periods of joblessness –not unusual during these tough economic times—can “strain household budgets, test personal relationships, force changes in career plans and erode self- confidence.” The analysis includes the following trends:
Reduction in Finances
Not surprisingly, more than half of people surveyed (56%) who were unemployed six months or longer say their family income has declined during the recession, compared with 42% who were jobless less than three months and 26% of adults who have not been unemployed since the recession began nearly three years ago. Overall, the long-term unemployed are also more likely to say they are in worse shape financially now than before the recession.
Frayed Relationships With Friends and Family
Think high unemployment rates only affect the people who are unemployed? In truth, almost half (46%) of the long-term unemployed say being unemployed has put an increased strain on their relationship with family, compared with 39 percent of those who were out of work for less than three months. Even friendships have been affected as 43 percent of those unemployed more than six months say they have fallen out of touch with even close friends.
Bad Feelings
Nearly four- in-ten (38%) long-term unemployed report they have lost some self-respect while out of work, compared with 29% who were jobless for shorter periods of time. The long-term unemployed also are significantly more likely to say they sought professional help for depression or other emotional issues while out of work (24% vs. 10% for those unemployed less than three months).
Career Changes
More people appear to be thinking of jobs, even ones they’ve never had, as their unemployment continues. In addition to 43 percent of the long-term unemployed say the recession will have a “big impact” on their ability to achieve their long-term career goals, more than 70 percent of long-term unemployed say they changed their careers or job fields or seriously thought about doing so.
Job Dissatisfaction
For many in this current economic environment, new jobs pay less and have worse benefits than old ones, with 29 percent of long-term unemployed saying their new job is worse than the one they lost, compared with only 16% of re-employed workers who had been jobless for less than six months.
Pessimistic for New Work
Pew reports that “among adults who are currently unemployed, those who have been jobless for six months or longer are significantly more pessimistic than the short-term unemployed about their chances of finding a job as good as the one they lost.”
If you feel pessimistic about finding a job anytime soon, knowing a qualified bankruptcy attorney might be the first best step to help you regain your power, conquer creditors and face your financial fears, yielding—all with the right kinds of support, information and insights—at a low cost— for a more viable and secure future. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
WeCar, now in Raleigh, and Other Car Sharing Programs can help you Save Money when Rebuilding from Bankruptcy
Published Friday, July 23, 2010 @ 8:00 am
Life after bankruptcy can be a challenge. It will take commitment, a new mindset and an entirely fresh set of budgeting habits.
People are surprised to find that when they look around, there really are countless ways for you to save, establish credit and rebuild the economic life you once had.
For a some filers, bankruptcy meant giving up a car payment you could no longer afford. With the new change, getting around town to run errands or schedule job interviews can be pretty frustrating. However, alternative modes of transportation are becoming more abundant. One example is the WeCar program, an idea already popular in larger cities and on college campuses.
The membership program allows people to rent a car on a short-term basis for an hourly rate. You can register online at www.wecar.com to get your membership started. After you get a card, you can reserve your car online when you need it and then use a “swipe card” to activate the car via a computer built into the vehicle. The keys are stored in the glove box.
The costs associated with WeCar are pretty reasonable, especially when compared to the cost of owning a car. And public transportation, while an even more affordable option, does have its drawbacks in some instances, especially if you need to be somewhere in a timely manner and don’t have the time it often takes to travel by bus. And, WeCars are available at all hours, unlike mass transit. Plus, Raleigh doesn’t exactly have a large population of taxis darting around its streets and avenues.
The annual membership is $50; the application fee is $20. After that, it’s $10/hour, which includes gas, insurance and mileage. So, in total, you can have access to a nice, dependable car for $70 in year one, and $50/year after that. If your transportation needs are minimal, or you generally have a short commute, this can be a good option.
Granted, this program isn’t as helpful for you readers in the suburbs or in Durham. However, rest assured that it will not be long before an hourly car rental program is within your reach. Hertz has launched its own version of a car share program in Manhattan.
ZipCar, which was started a few years ago, is another hourly car rental company that has been expanding quite rapidly but primarily targets the college crowd. It already has college locations in Chapel Hill, Elon and at Wake Forest University.
Raleigh is one of only three cities to have a non-college version of WeCar, making it stand out as an area that could attract additional car sharing businesses. Currently, WeCar has two Honda Civics but will add more as demand grows. One car is located at Enterprise’s office on South McDowell Street and the other at the West Condo building on Harrington.
So as we mentioned, it can be easier than you might think to save when you are coming out of bankruptcy, thanks to programs like WeCar. Keep coming back to this blog for more consumer and money management tips for life before, during and after bankruptcy.
Durham bankruptcy. Cary bankruptcy attorneys. Raleigh bankruptcy.
State of Texas Rangers Ownership is Still a Pop-Up. Nolan Ryan’s Ownership Team May not Catch it After All.
Published Tuesday, July 20, 2010 @ 5:57 pm
The bankruptcy of a major sports franchise is usually pretty big news.
In Texas this season, Major League Baseball’s Rangers have been subject to an ongoing bankruptcy case that seemed close to being solved just a few weeks ago. After the monumental contracts offered to players like Alex Rodriguez a number of years ago, on which the team still pays, the team just couldn’t stay on the field, financially speaking.
Enter Rangers, Texas and baseball legend Nolan Ryan and his money partner, Pittsburgh attorney Chuck Greenberg. A few months ago, these two (and a couple of other minority parties) seemed all set to buy the team out of bankruptcy, sign its major prospects and restore order to Houston baseball. But they saw a curve ball in court this week.
A gentleman named William Snyder, the court-appointed Chief Restructuring Officer (CRO), submitted a motion to the court against the auction process, which prompted the Rangers franchise to pull their motion for the auction, which would have concluded the bidding on July 16. Confused yet? Well let’s sort it out.
Essentially, it was as close to a done deal as possible for the Ryan-Greenberg purchase. But, Mr. Snyder changed his mind and wanted to adjust the rules of the auction process, which opened the door to another interested buyer, Houston’s own Jim Crane.
Snyder still wants an auction process but with different rules. He agreed to earlier in the week a process that branded the Ryan-Greenberg team with the status of “stalking horse,” which means that any new bidder would have to beat them by $20 million.
Of course, the league would have to approve the new ownership group, which is what made the Ryan-Greenberg bid such a home-run, as Ryan’s presence within the league’s ownership milieu is what’s really driving the league’s preference.
Upon release of the news that the CRO had changed his mind, Ryan expressed doubt to the Houston media.”It’s a good possibility that it might not happen,” he said. “The way they’ve invited Crane back into the picture, they seem to be more concerned with him than anyone else.”
That is probably not true. Nevertheless, it’s a good public relations statement to garner additional support (as if he needed it) for his group, especially with the Rangers playing some serious playoff baseball heading into the All-Star break.
The 50-35 Rangers currently lead the NL West (thanks in large part to the hitting display of Raleigh’s Josh Hamilton), making their shaky financial status somewhat of a mystery. Still, one look at the contract decisions of current owner Tom Hicks, and the reasons become abundantly clear. Apparently, reports are surfacing out of the NHL that his efforts with his hobby, the Dallas Stars may be leading to similar results.
We’ll keep you posted.
Are You Prepared for a Third Depression?
Published Tuesday, July 20, 2010 @ 10:10 am
Are you buying forecasts of an economic recovery? Don’t believe a “Third Depression” is possible? Just ask Nobel Prize winning economist and New York Times columnist Paul Krugman. On the heels of the G-20 meeting in Toronto, where world leaders pledged to cut their country’s deficits in half by 2013, Krugman warned that worldwide austerity will curb the necessary stimulus needed to encourage economies and deter another downturn.
As Krugman wrote, “We are now, I fear, in the early stages of a third depression. It will probably look more like the Long Depression than the much more severe Great Depression. But the cost—to the world economy and, above all, to the millions of lives blighted by the absence of jobs—will nonetheless be immense. And this third depression will be primarily a failure of policy. Around the world — most recently at last weekend’s deeply discouraging G-20 meeting—governments are obsessing about inflation when the real threat is deflation, preaching the need for belt-tightening when the real problem is inadequate spending.”
And Krugman isn’t the only one threatening more economic troubles for a world of struggling nations. Joining the columnist’s analysis, The Wall Street Journal noted that “members of the Federal Reserve are in private planning for the possibility of a double-dip recession in America—a concern shared by MarketWatch’s in-house economist.”
All of this news comes as long-term unemployment is skyrocketing; unemployment benefits have stalled in Congress during election year wrangling; and consumer spending flags. As a result, Krugman argues that economies all over the world, in various stages of collapse, are trying to balance job support and creation with the competing goal of decreasing deficits. But trying to reduce deficit spending to the detriment of those trying to find work, Krugman argues, will actually work to the detriment of “tens of millions of unemployed workers, many of whom will go jobless for years, and some of whom will never work again.”
You heard right: “never work again.” So, if you are already struggling financially and fear the further economic impacts of a third depression or double-dip recession, now is the time to take on your financial woes and take back your fiscal freedoms by making a fresh start through bankruptcy. Discharging personal debt through bankruptcy now is, in some cases, the only solution for so many jobless Americans—especially unemployed workers facing years without steady income, and, now, exhaustion of government unemployment benefits—to keep their personal lives financially afloat and creditors at bay. In short, what policy makers can’t do for you, you can do for yourself.
As Krugman writes, “It’s almost as if the financial markets understand what policy makers seemingly don’t: that while long-term fiscal responsibility is important, slashing spending in the midst of a depression, which deepens that depression and paves the way for deflation, is actually self-defeating.”
Don’t be defeated. If you already find yourself in dire straits as America faces another economic downturn, knowing a qualified bankruptcy attorney is the first best step to help you regain your power, conquer creditors and face your financial fears, yielding—all with the right kinds of support, information and insights—at a low cost— for a viable and secure future. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Divorce and Debt: Balancing the Differences with Bankruptcy
Published Wednesday, July 14, 2010 @ 5:12 pm
For many people, divorce can cause a huge financial strain in already tough economic times. In others cases, it’s the crushing weight of debt that leads to the dissolution of a marriage. Whatever the ultimate cause, and effects, when considering bankruptcy amid a divorce it’s important to know a few basics.
Divorce Decrees and Bankruptcies
Because your bankruptcy only includes debts in existence at the time of your bankruptcy filing, a subsequent divorce decree (i.e., a divorce decree following the date of your bankruptcy petition) remains intact and won’t be included in the debt dispensed by your bankruptcy. While few attorneys would urge you to continue in a bad relationship for money, some good advice might be to time your bankruptcy filing so that it follows (and includes) the divorce decree or separation agreement. Keep in mind that only Chapter 13 bankruptcy discharges debts and equitable distribution obligations, as long as they are not considered alimony or child support or in lieu of either kind of domestic support. Sometimes, obligations to pay the other spouse’s attorney fees related to the separation or divorce might sometimes be considered domestic support obligations and therefore non-dischargeable.
All obligations under a separation agreement remain intact and enforceable after a Chapter 7 bankruptcy, as Chapter 7 does not afford the debtor a discharge of any separation or divorce-related obligations.
Preparing for Property Divisions
When a divorce court awards you property or other assets, it remains your property even if your ex-spouse files for bankruptcy. However, in a case where the divorce court orders property transferred to you but your ex does not follow through with the transfer prior to his or her bankruptcy, your ex may be able to evade that debt through bankruptcy. As a result, timing is of the essence and incredibly important to keep in mind—especially if you are considering divorce at the same time your spouse is considering bankruptcy.
180-Day Rule
Short and sweet: if you are entitled to a part of the property divided between you and your ex-spouse, within 180-days of your bankruptcy, you may be forced to forfeit it to the bankruptcy trustee.
Bankruptcy Courts Trump Divorce Court Considerations
A bankruptcy court looks at your actual financial situation and makes determinations about your ability to discharge any and all of your debt. As a result, obligations that may be deemed non-dischargeable debt by a state court or your spouse (or even you) are not necessarily binding in your bankruptcy result. Ultimately, the bankruptcy judge will decide who owes what and when post-bankruptcy. As mentioned before, Chapter 13 discharges most non-domestic support obligations that are part of a separation agreement or divorce order. A Chapter 7 will not discharge any obligations incurred as part of the separation or divorce.
Spousal Support Remains Exempt Even When Property Does Not
As mentioned, if you’re in the midst of a divorce and are awarded property in the divisions, it is possible that some of the property you are entitled to receive won’t be exempted when creditors come calling following your bankruptcy. A good bankruptcy attorney will help you with exemption planning – finding legal ways to protect your property with available state law or federal exemptions. Conversely, if you’re entitled to spousal support when you file, most, and possibly all of that cash, is off-limits to creditors clamoring to take what they can get in your insolvency.
When considering the balance of divorce and bankruptcy, it is essential to let good timing, and better temperament, prevail. If debt does you part, remember to plan ahead and reduce tensions between you and your soon-to-be-ex-spouse; work toward a settlement that is in both of your best interests, including those of the bankrupt party; and explore your financial obligations now—to avoid complicating your divorce with arguments over child and spousal support, insurance, retirement accounts and attorney’s fees.
Most importantly, if you have been affected by the financial downturn, are facing a divorce or separation and are wondering how to get back on track, knowing a qualified bankruptcy attorney can also help you to conquer your creditors, the costs of your marriage dissolution and face any other financial fears, yielding the right kinds of support, information and insights—at a low cost. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Americans Vote to Help the Unemployed
Published Wednesday, July 14, 2010 @ 2:54 pm
Everywhere you look it seems there are people affected by Congress’s failure to authorize and extend unemployment benefits to jobless Americans. And everywhere you turn there are reports of politicians accusing laid-off laborers of resting on their laurels and depending on these federal same governmental subsidies instead of following through with their job searches. As a result, millions of unemployed workers might be wondering how to pay their debts as Congress tries to trim the deficit during an election year.
Despite Congress’s current apathy to the plight of the unemployed, voters appear to be feeling much more sympathetic as illustrated by two national polls (ABC News and CBS News) released just this week showing that registered voters believe it to be more important to help the unemployed than to reduce the national debt.
More than half of voters (52%) participating in the CBS News poll said that Congress should extend unemployment benefits “even if it means increasing the budget deficit.” A greater margin (62%) of registered voters told ABC that Congress should extend benefits despite concerns that doing so “adds too much to the federal budget deficit.”
According to The Huffington Post, “During the past several weeks, Democrats in the Senate have been unable to muster the 60 votes they need to break a Republican filibuster, failing by just one vote in the most recent attempt. Senate Majority Leader Harry Reid (D-Nev.) said Wednesday that Democrats will try again on Tuesday, after the swearing-in of a replacement for the late Sen. Robert Byrd (D-W.Va.). The poll results suggest that most voters agree with economist Mark Zandi, a former adviser to Sen. John McCain, who has argued that helping the unemployed is more important than deficit reduction in the short-term, and that nickel-and-diming the unemployed now could jeopardize the economic recovery.”
Are you personally feeling nickel and dimed during this tough economic time? Are you out of work and looking for a way to make ends meet despite a devastating amount of debt? Well, instead of hoping that the halls of Congress will provide a much-needed monetary lifeline, it might be time to take your economic matters into your own hands and join the hundreds of thousands of people who have already found financial relief in Chapter 7 or Chapter 13 bankruptcy this year.
By discharging personal debt through bankruptcy you could solve many of your most pressing financial problems—problems that are an ever-present worry for so many jobless Americans, including those facing months and even years without a steady income and no federal assistance in sight.
A personal bankruptcy through Chapter 7 or 13 bankruptcy will automatically stay creditor action and harassment, including those annoying collection letters, phone calls and repossessions; as well as dispense with much, if not all, of your secured and unsecured debt, either via an exchange of collateral, property or other assets, or through a personally-tailored repayment plan.
It’s your choice: cast your vote for a better tomorrow. Help yourself with a fresh financial start through bankruptcy.
The first step is knowing a qualified bankruptcy attorney who can help you regain your power, conquer creditors and face your financial fears, yielding—all with the right kinds of support, information and insights—at a low cost— for a viable and secure future. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
The Pro Se Option- For Serious Gamblers Only
Published Tuesday, July 13, 2010 @ 6:28 am
One thing you may already know about most court proceedings, is that parties usually have the option to represent themselves without the aid of an attorney. This is called appearing ‘Pro Se’, which, in Latin means “for oneself”. In a bankruptcy proceeding, when money is tight, the thought of saving money by cutting out attorneys and their fees can be pretty tempting. But there are many reasons this is a bad idea.
Bankruptcy can be complicated and bankruptcy judges are a picky bunch. They expect that the preparation of the voluntary petition, schedules, or other documents will be done accurately and on time. A bankruptcy attorney can usually prepare the documents in much less time than it would take for you to figure it out on your own. He or she knows what items of personal property should or should not be included on the petition to avoid a dismissal of your case, and how to apply the Means Test to your situation.
Some courts may give pro se applicants some minor concessions or leeway so that the case can be moved along, but they are careful to avoid crossing the threshold of what may arise to the level of the Court doing the job that a litigant – or his or her counsel – should be doing. Also, many different communications are exchanged between a party and the court, the trustees reviewing the petition, as well as the creditors. Your actions, or lack thereof, during this time, can seriously affect the outcome of your petition, and may even lead to the worst outcome- a dismissal of your case.
Normally, when you retain an attorney to handle a bankruptcy, the attorney will contact creditors on your behalf and attempt to stop any embarrassing, annoying, or even harassing debt-collecting activities. Usually this stops the behavior, even though legally, the creditor still has the right to contact you. He or she can also give you advice on seemingly innocuous activities that could negatively impact your case, such as drawing on retirement funds to pay bills.
Then there is the significant issue of knowing the law. Since there are several sets of rules governing bankruptcy proceedings, trying to navigate all the rules at once can get very confusing. All parties to any bankruptcy proceeding must comply with the Local Bankruptcy Rules, the U.S. Bankruptcy Code and the Federal Rules of Bankruptcy Procedure. Failure to do so will result in dismissal of the case, or other sanctions. Other important aspects of law can come into play at any time during this process as well, such as statutes of limitations, transfer of assets, or tax issues that can have a big impact on your proceedings as well.
Finally, many bankruptcy proceedings are entangled with other legal issues, such as divorce, civil court action, or foreclosure, which could affect the outcome of your bankruptcy proceeding, and vice versa.
Before deciding to gamble with your future, talk to an experienced bankruptcy attorney about it. You will find the cost well worth it.
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Bankruptcy Can Save Your Home. So Take Care of it
Published Tuesday, July 13, 2010 @ 1:25 am
No one likes surprise expenses, especially when we’re already struggling to get by.
Countless bankruptcies can be attributed to the use of credit to handle an emergency, especially when they involve our homes. Sure, emergencies involving the home are why we have home insurance but you still have to pay a deductible and more than likely, there are always extra costs you won’t expect.
Plus, there is a ripple effect to having to take care of major home repairs. What if you have to stay home from work one day to meet contractors but your boss just doesn’t want to hear about another one your personal issues impacting your monthly quotas? Think that doesn’t cost you in the long run? Or, what if the roof damage led to rain and debris in your closet, making that outfit set aside for tomorrow’s job interview look more like a dust rag than a job winner?
While there is very little you can do to combat the Wrath of God being inflicted on your home, you can engage in a number of fundamental tasks to prevent standard maintenance issues from becoming bankruptcy-worthy budget crushers.
Spending money on your home is a tough sell for those experiencing debt problems. There have been a number of studies released recently that suggest when it comes down to choosing what bills to pay when under financial duress, the majority of people opt to pay credit cards before their mortgage. However, since you can almost always save your home in a bankruptcy, it makes great sense to do all you can to preserve its value, especially in today’s market.
For starters, get up on a ladder and clean those gutters.
Gutters? Really?
Clogged gutters lead to more roof and siding damage than fallen trees or other forms of direct weather damage. If water is forced to go elsewhere other than the downspouts, it will carve a path under the fascia and behind the siding. Water will find its way down and when it discovers a new path, it tends to follow it frequently. And in case you’re not convinced of the damage water can do, Google “The Grand Canyon.”
Poor drainage around your home can also lead to pest infestations, as termites and other critters like to be around things that are rotting, like the wood in your foundation, and also corpses. Provided you’re not moonlighting as a coroner, then wet wood under your home should be your primary concern. Even if you have a crawlspace, put on some old clothes and as best you can, poke around under there to just check on things.
You don’t need to be a home inspector to use a broom handle to knock on support beams to check their strength. Get a Maglight and scan under the house for anything that looks unusual. If you do suspect something, then it helps to spend a couple of hundred dollars on an expert’s opinion. And even those with ongoing pest control installations are surprised to learn they have an infestation of some kind, so don’t think a few cans of pesticide around the house make you immune to wood-destroying insects.
It’s important to look for mushrooms, moss or other weed build-up along the sides and corners of your house. If water is collecting, the moisture augments the growth of such plants, possibly indicating poor drainage.
If you’re not afraid of heights and can stay safe, poke around at the vents on your roof for damage, paying close attention to the runner “boots” and seals that surround their base. If cracked, they can become another source of water getting into places where it doesn’t belong.
From the Law Offices of John T. Orcutt. Call today, 1-800-899-1414 for a free initial consultation.
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Dealing with the Repo Man
Published Monday, July 12, 2010 @ 9:21 pm
If you’ve ever tuned in to reality television shows like “Operation Repo,” or the like, you may see repo men (and women) as a bloodthirsty lot, who’ll stop at nothing and use any means necessary to take back cars and trucks, and even boats and planes. In recent episodes, it’s common to see delinquent debtors of all walks of life confronted, assaulted, and even pepper sprayed in an effort to repossess their past due property. While it might be argued that there’s more fiction this fact in these terse depictions of confrontational repossessions, it’s still a good idea to be prepared when repo men may come calling. To get you in the right place for this tough time, here are a few quick tips to keep in mind when expecting encounters with repossession representatives.
Keep Your Cool
Avoid the urge to confront, harass or in any way prevent a repo man from recollecting your property. While repo men should not be presumed to be confrontational or violent, in many cases the repossession industry is far from regulated and monitored, and trying to verbally or physically stop a repo man from removing a car or other vehicle from your home or land can lead to a quick trip to jail or the hospital. In this case, like many, let cooler heads prevail.
Know Your Rights
Even before a repo man or woman shows up at your door, forcing you to deal with the plain truth that your property will be taken—whether you like it or not—it’s best to understand your rights. Does your state allow for repossession after one missed payment or several? Will your creditor take your property now or can they be negotiated with? Contacting your creditor prior to repossession and asking them about their policies and your predicament can fill in the blanks on many of your repossession problems—before they happen.
Know When Not to Negotiate
On television, debtors often rush out of their homes, catching repo men and women in the act of repossessing their property where they either confront the unwanted repo or attempt to negotiate with the repo professional directly. Unfortunately, even if you run out with your full vehicle payment in tow, in this instance the repo man has no choice but to still tow your car, truck or boat away. Talking to a repo man does no good. Instead, contact your lender and work out a settlement if you want to get your car back.
Contact Someone Who Can Help
If you are unable to stay current on your car payment due to tough financial times, a bankruptcy attorney can help. Once you file for bankruptcy, it’s important to note that any further creditor action is stopped by the Bankruptcy Code’s automatic stay. While the automatic stay also means that the creditor cannot sell a repossessed car once you file, it does not assure the return of your vehicle. But take heart: for a pre-petition repossession, most bankruptcy courts have procedures by which a debtor whose car was repossessed may be allowed to get the vehicle back once the bankruptcy case is filed, including the potential that the debtor will be required to pay back possession and storage fees accrued in the interim, provide proof of car insurance, and have money on-hand to pay the various court and repossession fees. In all cases, though, the process is neither cheap, nor easy: something the bankruptcy bound individual may always want to avoid.
So, to avoid any headaches, hassles or hardships the best rule of thumb is, if you are going to file bankruptcy, do so before your car gets repossessed. In short, knowing a qualified bankruptcy attorney can also help you not only conquer your creditors and face your financial fears, but also keep a much-needed car, yielding the right kinds of support, information and insights—at a low cost— to keep you moving (literally and figuratively) in your fiscally-viable future. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button and let these experts take the wheel to so you can start down the road to your next best financial steps.
Count on 700,000 Census Takers Out of Work
Published Monday, July 12, 2010 @ 5:20 pm
Every 10 years, the U.S. Census Bureau takes a demographic snapshot of the American population, determining how many people reside within our country’s borders, who they are, and where they live. The results help determine our representation in government, as well as how federal funds are spent in our communities on things like roads, parks, housing, schools, and public safety.
And during some of the harshest economic conditions in American history, the federal government set out to take the latest U.S. Census, and, in the process created an unlikely stimulus package for thousands of Americans who were out of work: over a million census takers hired to help compile the 2010 figures. As such, census-related hiring had an immediate impact on America’s staggering unemployment rates.
But following months of creating much-needed jobs for a struggling workforce, the Census Bureau is ending its decennial work, and with it, the employment of hundreds of thousands of workers. According to The New York Times, “the Census Bureau is shedding hundreds of thousands of workers — about 225,000 in just the last few weeks, enough to account for a jot or two in the unemployment rate, say federal economists. Most of those remaining will be gone by August; a few will last into September. In past decades, the bureau faced a challenge just keeping workers around to close up shop, as most dashed for new jobs that might pay better. Not this time around. Jobs remain scarce. In Rhode Island, the unemployment rate stands at 12.3 percent, higher than a year ago. The national rate, too, has not budged. As most census workers have nowhere to go, rushed farewells are rare. Self-reflection, and a touch of anxiety, mark the mood. ‘Typically, at this point in the process, we’re losing a lot of people because they’re taking jobs,’ said Kathleen Ludgate, the regional director in Boston. ‘I wish we had that problem now.’”
Many of the men and women of the Census teams represented mature or middle-aged recently laid-off workers, who saw Census work as a way to make ends meet during these tough economic times. And while the door-to-door Census work didn’t pay much (averaging $15 dollars an hour), it was more than enough to give a beleaguered bunch of previously jobless Americans the much-needed confidence of applying their minds and bodies to a collective goal. Now, that the jobs have ended many are being forced back into the uncertainty of unemployment.
But it’s not all bad news on the homefront. As the Times reported, “Many departing census workers will be eligible for unemployment, although by no means all of them. Some census employees, particularly those who knocked on doors — known as enumerators — worked in fits and starts. They were dispatched intensively, then laid off, then rehired. Unemployment rules are a crazy quilt, with no two states quite the same.”
The desperation of many of these workers, and others like them, often depends on both job prospects following their temporary jobs and how much debt they may have accrued while looking for more permanent employment.
If you’re recently out of work and debt has got you down, qualified bankruptcy attorney can assist proud, but jobless, citizens just like you to conquer your fears of losing more than you bargained for. Specifically, the bankruptcy attorneys at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Average HAMP Homeowner Owes $1.50 for Every Dollar Their Home is Worth
Published Wednesday, July 7, 2010 @ 8:53 am
News just moved from bad to worse for many homeowners seeking shelter under the Obama Administration’s Home Affordability Modification Program (otherwise known as HAMP).
Recent government figures show that the average beneficiary of the administration’s flagship homeowner-assistance program owes their mortgage lender more than $1.50 for every dollar their home is currently worth. As a result, many more homeowners than expected are underwater (owing more than their homes are valued), facing foreclosure and will likely be forced to walk away from their mortgages in the near future.
As The Huffington Post reports, “A recent study by Federal Reserve economists shows that underwater homeowners are, not surprisingly, much more likely to default on their mortgages. Moreover, borrowers who are deeply underwater — like those in HAMP, who average negative 50 percent home equity — are far more likely to default willingly; that is, to give up on trying to overcome their growing mountains of debt, and just stop paying at all. This revelation underscores the problems with the path taken by the Treasury Department to help homeowners, who merited federal attention only after the government gifted the banks and Wall Street with hundreds of billions of taxpayer dollars to survive a financial meltdown largely of their own making. Rather than designing a program exclusively focused on homeowners, the administration chose to set up an initiative that seeks to balance the needs of homeowners with the interests of lenders and investors. Thus, while the average homeowner in the program is saving more than $500 a month, 28 percent more homeowners have been bounced from the program than have been helped. Homeowners that receive permanent reductions in their monthly mortgage payments end up deeper underwater than they were before they were ‘helped.’ Meanwhile, lenders and investors continue to foreclose on properties at a record pace.”
This result is shocking considering the HAMP’s costs and the fact that the $75 billion plan was recently reworked in an attempt to help those hardest hit by the housing crisis—targeting homeowners who were unemployed; underwater in their mortgages; or even those homeowners who are bankruptcy bound.
Coincidentally, as American homeowners search for more immediate and steady mortgage help, many are instead turning to the simplicity of bankruptcy to stop their impending foreclosure and other creditor actions. In fact, unlike HAMP, bankruptcy seems tailor-made to help beleaguered mortgage holders to hold on to their homes if they can afford to pay their arrears through a Chapter 13 bankruptcy plan; or, instead, walk away without fear of lender reprisal (via either Chapter 13 – in most circumstances - or Chapter 7). So, if you’re having trouble making your mortgage, living in a home that will never accrue equity, and/or residing in an area that is currently devalued and will be nothing by a blight on your budget for the foreseeable future, bankruptcy can help get you back on the right side of the proverbial tracks. A bankruptcy will allow you to surrender your underwater home, negate your personal and financial liability, and move forward financially in a new, and most importantly, affordable place.
Your first best on the road to an effective bankruptcy is knowing a qualified bankruptcy attorney who can help you to conquer your mortgage creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond a recession that has “HAMPered” many a homeowner. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
A Student Loan’s Undue Hardship Just Got Easier to Grade
Published Wednesday, July 7, 2010 @ 8:48 am
For most recent college and post-college graduates, the hot summer months are a chilly reminder that student loan repayment deadlines are mere months away. These impending debts arrive at some of the toughest economic times ever for the newest round of job seekers, as the nation, and especially its youngest workers, continue to face record unemployment and mounting consumer debt. So what happens when poor economic conditions coincide with mandatory payback timelines for budget-busting student loans? Two words: loan defaults. Now, the countdown is on as many recent grads will soon exceed the 270-day window for paying back their educational debts, beginning a bad precedent for staying current in an economy that may or may not be heading into another recession.
As a result, many student loan borrowers are left wondering: can bankruptcy help?
Normally big debts, high interest rates and no job would be the perfect equation for making a new financial start using bankruptcy. Unfortunately, in most cases, student loans debts are exempted from the list of debts absolved during the bankruptcy process. In fact, student loans must be found to create an “undue hardship” in order to be eliminated or reduced in bankruptcy court—creating a high standard for making a dent in a debtor’s often most astronomical debts.
Well, now there’s a little more bankruptcy light at the end of the student loan tunnel. In a recent case, the 8th Circuit Federal Bankruptcy Appellate Panel upheld a bankruptcy court’s decision to discharge $300,000 in student loans. The court in In re Walker found that the debtor’s inability to work due to family circumstances justified a discharge of her student loans. In this particular scenario, the debtor had taken on a large amount of student loans pursuing a bachelor’s degree and several postgraduate degrees while raising five children, two of them with autism. As a result, the student-mom was unable to maintain high-paying employment that would allow her to repay her massive student loan debts.
Ironically, in most bankruptcy cases, the same $300,000, if placed on a credit card or wrapped up in a bad mortgage, could be easily discharged in bankruptcy—automatically expunged under Chapter 7 and significantly reduced in case of Chapter 13 bankruptcy.
However, the liberal decision in In re Walker to forgive the debtor’s student loan debt due to her family circumstances should hearten many recent grads struggling to balance family, low-paying jobs and whopping educational debts. In addition, the tide also seems to be turning at the legislative and executive levels, as the Obama administration and Congress consider making it easier for debtors to discharge private student loan debt.
In short, relieving financial burdens early in your adult life and career can pay dividends later: allowing you to rebuild credit as you build your career and repay your educational loans earlier in the game. As a result, if you too have been affected by the economy and are wondering how to reduce student loan debt—and stress— knowing a qualified bankruptcy attorney can also help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Getting to Know Your Bankruptcy: The 341 Meeting
Published Saturday, July 3, 2010 @ 5:29 pm
If you’re considering bankruptcy, you may be wondering about the nuts and bolts of the bankruptcy process. One part of this process is the 341 meeting. After filing your Chapter 13 or Chapter 7 bankruptcy, you are REQUIRED to attend a meeting of your creditors, otherwise known as a “341 meeting.” Named for section 341 of the bankruptcy code that mandates a meeting between a bankruptcy bound debtor and creditors, it normally occurs three to six weeks after your bankruptcy filing. If you fail to attend the 341, it may result in the dismissal of your case.
Purpose of the 341
Despite the fact that the 341 meeting is not attended by a judge, nor conducted in a courtroom, it is part of the bankruptcy legal process, meant to ensure that you openly and honestly represented your assets, debts, and disposable income in your bankruptcy petition. Your appointed bankruptcy trustee presides over the questioning during which he or she joins the creditors (that show up) to ask you questions, under oath, concerning all of your property and your financial situation before and since your bankruptcy filing.
During the 341 Meeting
Since the 341 meeting is part of a legal procedure, you will answer questions under oath after a swearing in. As part of the formal bankruptcy process, the 341 meeting will be recorded as the trustee asks you questions about business interests, debts, income and the assets that you have listed in the petition. Since the 341 meeting is about fact finding, the trustee may require added information on anything you have listed in the bankruptcy petition.
In the case of a Chapter 13 bankruptcy, your trustee may reiterate repayment plan provisions.
Other than the usual fact finding questions, here are just some standard questions that the trustee might ask:
- Your name, address and your social security number?
- Whether you understand your bankruptcy as read or described by your lawyer?
- Any modifications to your payment schedules?
- Did you read all the schedules prior to signing them?
- Did you list all of your assets?
- Did you list all of your debts?
- How did you value the property listed in your petition?
- Have there been any significant changes since you filed for bankruptcy?
- Are the schedules accurately represented?
- Have you lived outside of this state for the past 2 years?
Rest assured the 341 meeting is brief and informal. In many cases, the 341 is the only hearing you’ll ever need to attend as part of your bankruptcy. As a result, it is important to understand the questions that are asked and what exactly the Trustee is looking for.
Purpose of Questions During the 341 Meeting
While the 341 meeting is considered a fact-finding opportunity for the bankruptcy trustee and creditors, the purposes of some of the questions in a 341 meeting may vary based the type of bankruptcy you’re seeking. In a Chapter 7 for example, the trustee is attempting to determine what assets are available for sale. In a Chapter 13, the trustee attempts to solidify the debtor’s repayment plan.
Creditors and the 341 Meeting
For debtors, one of the more nerve-wracking parts in anticipating the 341 meeting is facing creditors. Keep in mind that while your creditors are invited to the meeting, they are not required to attend to challenge the discharge in a Chapter 7 bankruptcy or to object to a payment plan in Chapter 13. As a result, they are normally absent for a 341 meeting. Even if creditors do attend, so does your bankruptcy attorney. As a result, seeking legal assistance in your bankruptcy is not only smart, but good for added peace of mind.
As you can see, a qualified bankruptcy attorney is important during the bankruptcy process to help you navigate any uncertain waters and work in your best interests during the duration of your personal bankruptcy. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Questions to Retire By
Published Saturday, July 3, 2010 @ 8:27 am
In the recent “Great Recession” more and more Baby Boomers were found to be delaying retirement in order to hold onto few and far-between jobs and hold tight to their incomes. But even in tough economic times some are weighing the pros and cons of calling it a day…and a career.
To help those close to retirement figure out whether now is the time in both age and budget, The Chicago Tribune has put together a list of questions to determine your next best steps. Answer affirmatively, retire away; but if most of the answers are “no,” consider taking a bit more time to firm up your finances and plan for a future unfettered with economic worry and woes—one way or another.
Focus on the following:
If you were to withdraw 4 percent of your retirement portfolio,
would it equal half your annual pay?
If it doesn’t, then maybe you should consider holding off on retirement. Put another way, if you have not saved 12.5 times your current annual salary you might not have enough to live on for the long retirement run. As a rule of thumb you should try to live on 75 percent of your current salary when you retire, with 50 percent coming from your savings and 25 percent from Social Security. If you know you don’t have it now, even for basic expenses, consider waiting.
Have you discussed your retirement with your children and partner?
Kids today…from college-age to middle age, are also struggling, putting aging parents in a precarious position to aid their offspring at, quite literally, their own expense. So, if your children might be relying on your financial help (or vice versa), let them know your retirement plans now. The same is true with your husband, wife or partner. You want the whole family on the same financial page before you turn it.
Have you calculated basic, occasional and catastrophic costs?
While it might be easy to account for basic costs of retirement, the need for a new vehicle, water heater, or a catastrophic medical bill could be right around the corner. Budget for more than the basics to figure out whether your retirement money is for better…and for worse.
Do you understand where your retirement income comes from?
Understanding the risks related to investments for retirement is a crucial part of keeping that cash in your coffers for the long run. Even if you have a financial planner, get acquainted with your retirement accounts so your money can continue working for you…even when you have stopped working for it.
Have you figured how to avoid withdrawal penalties?
As the Chicago Tribune puts it, “If you retire or lose a job in your 50s, it may make sense to leave your 401(k) plan with your employer instead of rolling it into an IRA, because company plans in general allow penalty-free withdrawals at age 55, more than four years earlier than an IRA.” Keep that in mind if your retirement is “forced,” or otherwise earlier than you expected.
Do you have means for health insurance?
While this may be a no-brainer, it’s easy to forget to take care of yourself fully after decades of employer-subsidized care.
Does your plan reflect your true life expectancy?
No one knows what the future brings. You may have budgeted for a medical emergency, but have you accounted for a long, healthy life? According to the Tribune article, retirees tend to underestimate how long they will live. Don’t be one of those people.
Do you have a back-up plan?
The Chicago Tribune also suggests keeping your options open. And in this tough economy, one of those options to keep retirement accounts intact, and creditors at bay, is bankruptcy. Avoid tapping into retirement to stay afloat. If you’re an older American who’s considering new ways out from underneath ever-increasing debt, and get back on track, knowing a qualified bankruptcy attorney can also help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Four Quick Tips to Save Yourself From Subprime Lenders
Published Friday, July 2, 2010 @ 8:14 am
Bankruptcy Myth #1: You won’t receive credit offers after your bankruptcy.
Don’t be surprised to receive many credit offers following your bankruptcy. Car lenders, mortgage financiers, credit card companies and more, often line up for the chance to provide post-bankruptcy debtors with all types of consumer spending opportunities.
Bankruptcy Myth #2: Taking creditors up on all of their offers is a good thing.
These same lenders and card companies are also coming forward to capitalize on the clean financial slate your bankruptcy provided. Unfortunately, many of these so-called “helpful” creditors are actually subprime lenders targeting average Americans just like you who are attempting to improve their credit and get back on their financial feet.
As a result, post-bankruptcy beware quick credit offers and avoid subprime lenders by following a few easy tips to stop the cycle of debt and get back on a better budgetary track:
Remain Vigilant About Your Credit Report
It may sound obvious, but in the months following your bankruptcy, your credit report should accurately show that the debts you discharged in bankruptcy are fully discharged. If discrepancies appear in your report, rectify them by contacting your credit bureau and calling attention to the errors. The power of an accurate credit report post-bankruptcy cannot be understated: fewer debts; higher credit scores; attracting higher quality lenders for better credit offers.
Pay Your Bills
Improving your credit post bankruptcy is as easy as paying all of your bills, all of the time, on time. From house notes to car loans to utility bills and more; anything that you kept and continue paying for, on time, post bankruptcy reflects a positive payment history and a better credit report. These small fiscal steps can improve your credit rating and provide more wiggle room to work with better lenders in the long-run.
Be Choosy With Your Credit Cards
In many cases, credit cards are the culprit in necessitating a bankruptcy filing in the first place. Don’t make the same mistakes twice. Seek out a secured credit card that can reflect positively on your payment history and show early signs of responsible credit use. In addition, keep up your credit card payments and keep in mind that credit does not equal cash, but merely a way to keep up appearances that you are an accountable consumer and worth lending to. As such, use credit cards infrequently.
Read Everything
Even infrequent use of credit cards can cause serious financial woes if you don’t read the fine print. To avoid unwieldy interest rates and fees, carefully read all terms and conditions when applying for credit. While new credit card legislation was enacted to minimize the amount of surprises and confusion when dealing with creditors, it’s important to be your own best watchdog when warding off predatory lenders.
Even if you haven’t been through a bankruptcy yet, , understanding the tips listed above can help you avoid bad lenders and bad debt. If you’ve already succumbed to subprime loans, there’s never been a better time to contact a qualified bankruptcy attorney that can help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure fiscal future. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
The reaffirmation agreement and keeping your car after bankruptcy.
Published Thursday, July 1, 2010 @ 1:54 pm
Despite the rumors, stigmas and innuendo, there are a number of things you can keep after filing bankruptcy. Your car, for example, is something that you may be able to keep, provided your debt issues running up to your bankruptcy did not result in a repossession and the equity in your car can be protected with available exemptions.
If you were financing (purchasing) a car when you filed Chapter 7 but did not plan to surrender the vehicle in your bankruptcy, and you continued to keep current on the debt through filing your case and afterwards, you will need to fill out and sign something called a “reaffirmation agreement.” This legal document certifies that you will agree to repay all or a portion of that particular auto loan debt since it would otherwise be discharged along with your other debt. Confusing? A little.
Basically, the reaffirmation says that you agree to re-assume the balance still owed on your vehicle. The reaffirmation is necessary because most auto financing contracts have a clause that enables the creditor to repossess the vehicle because filing for bankruptcy is considered a default on your loan. Reaffirmation stops the creditor from asking the court to lift the automatic stay in order to repossess your vehicle prior to your discharge in bankruptcy.
Granted, it seems odd that in the midst of filing bankruptcy that you would want to keep some of your debt, but there are a few good reasons, especially when it comes to you car. Primarily, you may need it to get to your job. Sure, public transportation is cheaper but what if you drive a lot for your job? Sales professionals, consultants and real estate agents often need a personal vehicle as much as an accountant needs a calculator. Construction professionals often conduct all of their business out of their truck and need it to visit sites and haul equipment. So, the affirmation agreement allows you to keep the collateral that secures the specific debt you want to keep.
However, reaffirmation is not always a beneficial process. Some lenders get pretty huffy about it. It’s possible that even though you move forward with your payments, they won’t be reported to the credit agencies. Plus, you walk quite a tight rope with the lender. Fail to make a payment, and that car may end up repossessed before you can get your favorite CD out of the player. In addition, the creditor almost always has the upper hand in proposing the terms of the reaffirmation agreement. There is no real negotiation of the terms between the creditor and the debtor, and often creditors demand payment at the original contract terms when the loan balance may far exceed the present value of the vehicle. The debtor often feels they have no choice but to agree to the creditor’s terms.
One reason to reaffirm a car loan or lease is to help your credit standing with that particular lender. It demonstrates a tremendous amount of good faith on your part to move forward with your obligations with a particular lender who down the road may be much more willing to extend you another loan. Keep in mind that this doesn’t mean you should jump at the first chance to get a new car or accept credit from that particular lender. The fact is you filed bankruptcy. Thus, you are still not going to get the same type of loan terms as someone who hasn’t, despite your reaffirmation.
Ultimately, after your complete and sign the reaffirmation agreement, the court must also decide if the reaffirmation would result in an undue hardship and that it’s in your best interest to reaffirm the debt.
In the Bankruptcy Court in the Eastern District of North Carolina, which includes the cities of Raleigh, Wilson and Fayetteville, the court sometimes will disapprove reaffirmation agreements on the basis that reaffirming the debt would impose an undue hardship on the debtor. Often, even though the debtor has remained current up to the point of the reaffirmation hearing in court, the debtor really can barely afford to maintain the monthly vehicle payment, and has often squeezed his/her budget to great extremes just to make the car payment. Under these circumstances, if the debtor and the debtor’s attorney can demonstrate undue hardship to the court, the judge will often allow the debtor to keep the car and continue to pay for it as long as they can afford to do so, and allow the underlying balance of the loan to be discharged with the rest of their debt. Under this scenario, if something unfortunate were to befall the debtor or the debtor’s vehicle, they would be able to surrender the car to the lender with no consequences. However, if the court approves the reaffirmation agreement, based upon a finding that the reaffirmation is NOT an undue hardship – that the debtor can afford the liability on the full balance of the auto loan, the debtor will be able to keep the vehicle and continue to make payments, but would owe a deficiency to the creditor if the car were repossessed, damaged, or otherwise surrendered to the creditor. This is because the creditor sells the vehicle, usually at auction, for a price that is less than what is owed on it. Whatever the difference between the balance owed on your auto loan and the amount the creditor gets when they sell your repossessed vehicle is called the deficiency.
Navigating the reaffirmation process requires a skilled bankruptcy attorney. The Law Offices of John T. Orcutt offers FREE initial consultations to North Carolinians living in the Raleigh, Durham, Wilson, Rocky Mount, Fayetteville and Lumberton areas. Call 1-800-899-1414 to schedule your free consultation now. One of their experienced bankruptcy attorneys will review your information to decide whether bankruptcy is the right option for you.
Bankruptcies Will Continue to Rise, With Many Reasons Why
Published Thursday, July 1, 2010 @ 12:04 pm
While some experts are calling 2010 the year of the economic recovery, bankruptcy filings are in true recession-era form, rising in recent months, and, according many analysts, increasing with no end in sight. In early June, the American Bankruptcy Institute (ABI) validated these fears, reporting that personal bankruptcy filings for the month of May 2010 increased compared with a year ago (May 2009).
According to the ABI findings, in May 2010, 136,142 personal bankruptcy cases were filed, a nine percent increase from May 2009, when 124,838 cases were filed. Based on figures collected so far in 2010, most sources estimate that personal bankruptcy filings this year will total about 1.6 million, a 10 percent increase over the 1.44 million filed in 2009, and taking the numbers to, or above, where they were prior to bankruptcy reforms in 2005.
The reasons behind the bankruptcy bound bursting at the proverbial economic seams—now and in the not-so-distant future—are indicative of a continuing economic crisis that includes:
Foreclosures in Full Swing
Our Great Recession’s mortgage crisis continues to hit close to home, typing families to underwater houses and seemingly endless and adjustable payments. To help these same beleaguered homeowners avoid foreclosure, many have insisted the only solution is to force banks to modify mortgages in ways that are affordable or provide mortgage deferments while recently laid off mortgage holders hone in on new jobs. However with more failed foreclosure prevention programs than you can shake a stick at, the number of homeowners facing foreclosure has steadily increased throughout country’s real estate woes. In turn, many of these same homeowners who are having difficulty making their mortgages may be considering filing for Chapter 7 or 13 bankruptcy protection.
Discerning Creditors
In the heyday of high spending and budgetary booms in the early 2000s, many took out major mortgages and proceeded to make even more personal purchases, leading to more debts being covered by home equity, credit cards and educational loans; and no end to lenders willing to give more to get more. In the wake of the economic meltdown, however, these wells of consumer credit are drying up, leaving many forced to make due, and make up for years of more going out than in. For these folks, bankruptcy provides the right track on the road to healthier spending habits.
A Morose Job Market
In these tough economic times where there are more job reductions than employee raises, many are finding sudden unemployment to be the leading reason to head into the safe harbors of bankruptcy protection. And for the millions unemployed for more than a year, mounting debts paired with dwindling savings and a lack of realistic bankruptcy alternatives, leads many to the doors of the nearest bankruptcy attorney—especially with recent apathy towards extending much-needed unemployment benefits.
So, if you’re one of the millions struggling with unwieldy debt, long-term unemployment, or an unmanageable mortgage, bankruptcy can work for you as it has for so many this year, and last.
Knowing a qualified bankruptcy attorney can also help you to save money, time, and make you more self-sufficient in an uncertain future, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Bankruptcy and You: The Bankruptcy Audit
Published Thursday, July 1, 2010 @ 10:09 am
A typical tax time stressor is the idea of an IRS audit, during which the IRS reviews your previous year’s tax return for discrepancies. Similarly, the IRS can do the same in the case of bankruptcy, assessing the information offered during your bankruptcy case.
While many bankruptcy bound individuals might recoil at the idea of setting themselves up for a second potential audit, it is important not to panic or consider this possible evaluation as a deterrent to heading down the road of removing or reducing your debts through bankruptcy.
In actuality, the chances of an audit are extremely low; and, if you are audited, your liability is easily minimized (or rendered non-existent) by maintaining as much transparency as possible during the bankruptcy process; and by not willfully withholding important details about your particular bankruptcy case.
Speaking to the former point of the unlikelihood of a bankruptcy audit, it’s important to understand that there are much fewer bankruptcy audits than IRS audits. For example, in 2009, one of every 583 bankruptcy cases received an audit; this can be compared to one in 100 tax returns that the IRS audited that same year.
In essence, approximately half of bankruptcy audits are randomly selected from the pool of bankruptcy filings in a given year. The remaining 50 percent receive an audit as a result of a “red flag” or irregularity in a bankruptcy case, leading the bankruptcy court to clarify a case and determine that the information provided is honest and accurate.
So what happens if you roll the dice and do receive a bankruptcy audit? In the unlikely event you are tapped for a bankruptcy audit, you and your attorney will be notified within 10 days of filing your bankruptcy petition. As a result, if your bankruptcy filing has already occurred some weeks, months or years ago, you are in the clear and need not worry about an audit at all.
However, if you do receive a notice of selection for an audit, a private audit firm is hired to assess your case. This independent firm will explore your bankruptcy, examining the debts, assets, income and expenses in your particular bankruptcy filing, including a comprehensive search of any additional assets not listed in your initial filing. Once your case has been evaluated, the results are distributed to the relevant bankruptcy court.
In a very few cases, the private audit firm will determine that a bankruptcy case includes a “material misstatement”—an omission in the filing or an inaccurate piece of information that could impact the court’s assessment of your bankruptcy claim. Don’t be alarmed. In many cases, these “material misstatements” are unintentional: simple clerical errors in accounting for your income or your understanding of assets in your bankruptcy estate. As a result, it’s important to take care in your estate assessment, working with a bankruptcy attorney to dot every “i” and cross every “t” in your bankruptcy case. Most importantly, it’s vital to be truthful about all relevant assets and income as a finding that your misstatement was intentional can result in a dismissal of your case or possibly charges of fraud.
As a result of the need for precision and accuracy, it’s important that you seek competent and experienced bankruptcy counsel from the very start. An experienced bankruptcy attorney knows the ins and outs of the bankruptcy process and the audit process and can assist throughout your case.
The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Five Times the Homeowners Pushed Out of HAMP Than In
Published Monday, June 28, 2010 @ 6:52 pm
Only three months ago, the President Obama reworked his $75 billion foreclosure prevention plan. Part two of the Home Affordable Modification Program (or HAMP), put into play new incentives to help those hardest hit by the housing crisis, targeting homeowners who were unemployed or underwater in their mortgages (i.e., folks owing more on their loans than their homes are worth).
Unfortunately, a month later, data showed that more than twice as many homeowners were kicked out of HAMP as were granted permanent relief.
Now, The Huffington Post is reporting that “More than five times as many homeowners were kicked out of the Obama administration’s primary foreclosure-prevention program last month than were granted new relief, new data released Monday show[s]. Nearly 155,000 homeowners were bounced from the administration’s Home Affordable Modification Program in May versus about 30,000 who were offered new temporary trial plans of lower monthly payments. About 48,000 more homeowners were granted five-year plans of lower payments compared to April, with an undisclosed amount offered five-year plans that have yet to complete the paperwork.”
When it’s all said and done, that means that in May alone about twice as many homeowners were kicked out of HAMP—a program that “promised to help struggling families hurt by the firms at the heart of the worst financial crisis and subsequent economic downturn since the Great Depression.” This while those same firms received hundreds of billions of dollars in taxpayer cash and guarantees as incentives to work with beleaguered homeowners.
And while this happens, more than a year since President Barack Obama told a crowd in Mesa, Ariz. of his plan to “help between seven and nine million families restructure or refinance their mortgages so they can afford—avoid foreclosure,” almost 436,000 have been pushed from the program—a program meant to aid the very same mortgage-holders and that has only been able to give 340,000 applicants permanent relief.
And the banks don’t appear to be helping. As HuffPost reports, “Wells Fargo, the nation’s fourth-largest bank by assets, put 40,759 of its borrowers in five-year HAMP plans, data through May show. However, the bank kicked 59,910 homeowners out of trial plans through April, according to Treasury. The number of homeowners bounced from the program also likely rose in May. Put another way, the number of homeowners Citigroup and Wells Fargo have tossed from HAMP trial plans is 60 percent greater than the total number of homeowners they’ve granted permanent relief.”
Since the banks aren’t helping, you may be wondering what can? If you’re having trouble making your mortgage, living in a home that will never have equity, and/or residing in an area that is currently devalued and an eyesore for the foreseeable future, bankruptcy can help get you back on the right side of the tracks. A bankruptcy will allow you to surrender your underwater home, negate your personal and financial liability, and move forward financially.
So, as American homeowners search for more immediate and steady mortgage help, many are instead turning to the simplicity of bankruptcy to stop their impending foreclosure and other creditor actions. If you too have been effected by the housing crisis, knowing a qualified bankruptcy attorney can also help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Why Chapter 13 Bankruptcy Trumps Debt Consolidation
Published Thursday, June 24, 2010 @ 9:27 am
You may already understand some of the dangers of debt settlement: the fact that Americans rarely emerge from debt settlement programs with their credit card balances eliminated; the fact that many wind up worse off than when they started their consolidation; and that many emerge from these plans with severely damaged credit, ceaseless threats from collection agents and lawsuits from creditors.
But, you may be wondering, why is bankruptcy any better than debt consolidation?
Well, it turns out there are many reasons.
While debt consolidation and settlement firms have done a great job at selling their side of the bankruptcy alternative story, Chapter 13 bankruptcy needs no sales pitch. In the majority of cases, Chapter 13 completely eliminates your debt, without you having to pay a dime to your unsecured creditors. What’s more, Chapter 13 will allow you to get current on your secured debt, like your mortgage and car payment. There is no debt consolidation or settlement company in the world who can do the same.
Not convinced? Here’s more to make you understand the benefits of bankruptcy:
Bankruptcy is Backed by the Power of the Federal Law
Personal bankruptcies like Chapter 13 are enforced by the Federal Bankruptcy Code. The rule of law. The final word in your bankruptcy filing and others. Debt consolidation firms have no such infrastructure to enforce the legality of their sometimes haphazard and loosely constructed payment plans. They cannot force creditors to cease harassing you, stop them from taking your home or your car, or reduce, forgive or consolidate your debt. Yet when an average American just like you files for Chapter 13 bankruptcy, creditors have no choice: they must automatically “stay” their phone calls, letters, and repossessions and comply with the specific orders of the bankruptcy trustee and judge to accept what you can give.
Bankruptcy is the Comprehensive Choice
Think your debt consolidation will include everything you need to get back on financial track? Wrong. Debt consolidation companies don’t cover things like tax debts, child support or debts such as speeding tickets. While these categories of debt are generally non-dischargeable, a Chapter 13 bankruptcy allows you to repay these debts over time. At the same time, while you repay these non-dischargeable debts through your Chapter 13 plan, your unsecured credit card debt is simply eliminated.
Bankruptcy Cures Biggest Creditor Woes
As mentioned, bankruptcy is like garlic to vampiric creditors waiting to harass you with late night calls, harassing letters and litigious dispositions. Debt consolidation may leave you high and dry with no legal backing to back up creditor claims against you.
In the alternative, Chapter 13 bankruptcy not only prohibits creditors from contacting you, but imparts severe penalties in the form of sanctions if they violate judge’s orders.
Bankruptcy Gets You a Much-Deserved Debt Discharge
Debt consolidation or settlement plans leave no room for any sort of debt discharge. If some of your creditors don’t agree to settle with you, you could get sued. Bankruptcy forces creditors to accept your Chapter 13 bankruptcy plan. Once you complete the plan, your debt is extinguished, often without you having to pay a dime to unsecured creditors. Try that with a debt consolidation firm.
So think twice before contacting a debt consolidation or settlement company. Knowing a qualified bankruptcy attorney can also help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
New Poll Shows People Still Stressed About the Economy
Published Monday, June 21, 2010 @ 2:30 pm
While those that analyze esoteric financial trends and market conditions seem to think that the recession is easing, a large portion of the country aren’t so quick to agree. With foreclosures still prevalent and personal bankruptcies at a level close to that of 2005’s pre-code change flood, there are plenty of reasons for Americans to still be on edge about their finances.
A recent survey by the Associated Press and its polling partner Gfk indicated that 46 percent of families are still not confident in the status of their economic situation.
The sense of financial stability in the country can be compared to the local weather forecast. With the heat and humidity here in North Carolina, an actual temperature of 90 degrees could actually feel like 96. The “real feel” temperature they call it. And in the end, isn’t that the only thing that matters? After all, the numbers are subjective, just like economic stats. If a person doesn’t have a job and is on the verge of bankruptcy, what difference does a spike in the consumer confidence index make? In fact, what the heck is a consumer confidence index? Who comes up with this stuff?
What is clear is that the job market still stinks. Compounding the job issue is the foreclosure epidemic. The two factors are tightly bound to one another. And the statistics in the housing market are just about as confusing and erratic. New home starts are up but sales are down. Agents keep talking about how great a market it is to buy but fail to mention how difficult it is to secure a mortgage. Man, lots of conflicting information about there, huh?
Ultimately, polls like the one conducted by AP-Gfk are as equally nonsensical. A person’s outlook on the economy is completely independent of the condition of the country as a whole. There are many people who have found a way to succeed in this economy and are making more money than they ever have. Therefore, a poll is going to find them fairly confident about their odds of avoiding bankruptcy and the economy in general. Heck, pretty much anyone who has a job right now is going to respond positively.
There are some benefits to the ongoing fear of the country’s economic status: more people are remaining aware of the pitfalls of long-term debt. Penny-pinching is becoming chic and credit cards are no longer yanked out of wallets like a six-gun sidearm.
Nevertheless, people are still pretty worried about what’s going on out there. If you’re having trouble keeping your head above these troubled economic waters, talk to a bankruptcy attorney today. A Chapter 7 bankruptcy will help you eliminate all of your unsecured debt, freeing up your money for more important things. A qualified bankruptcy attorney can also discuss whether a Chapter 13 bankruptcy might be a better option. A Chapter 13 can help you get caught up on your house and car, and keep you out of foreclosure. In North Carolina, John T. Orcutt has the experience you need to get a fresh start. Call 1-800-899-1414 today to set up your free initial consultation, or visit www.billsbills.com to fill out our debt questionnaire. Don’t wait another day.
The Dangers of Debt Settlement Firms
Published Monday, June 21, 2010 @ 8:30 am
Imagine it: Oceanfront resorts. Leis around necks. Succulent buffets. Steel drum music in the distance. Beautiful hostesses serving plentiful drinks. Tanned clientele all around.
For many beleaguered Americans these images evoke a distant and faraway vacation-land entitled for only the endlessly rich and privileged few. But this background of tropical bliss isn’t only for elite individuals. They’re the type of settings now home to industry trade associations like the United States Organizations for Bankruptcy Alternatives, a group that recently convened in Palm Beach, Florida, amid the oceanfront confines of the Four Seasons Resort, to forge deals and plot strategy. And for these types of companies that are currently promising relief to Americans confronting overwhelming credit card debt, business is booming.
In fact, according to a recent New York Times article, for the debt settlement industry, happy days are here again. As Peter S. Goodman reported, “The long recession has delivered an abundance of customers—debt-saturated Americans, suffering lost jobs and income, sliding toward bankruptcy. The settlement companies typically harvest fees reaching 15 to 20 percent of the credit card balances carried by their customers, and they tend to collect upfront, regardless of whether a customer’s debt is actually reduced. State attorneys general from New York to California and consumer watchdogs like the Better Business Bureau say the industry’s proceeds come at the direct expense of financially troubled Americans who are being fleeced of their last dollars with dubious promises. Consumers rarely emerge from debt settlement programs with their credit card balances eliminated, these critics say, and many wind up worse off, with severely damaged credit, ceaseless threats from collection agents and lawsuits from creditors.”
In short, if you buy into bankruptcy alternatives like debt settlement, the possibility is real that before you know it, the three, four, five, maybe even a dozen different credit cards you are trying to pay and protect are now simply a revenue builder for a burgeoning industry duping you out of much-needed money. You send them money up front, they take their cut off the top, and, unlike bankruptcy, they leave you with little to no protection from the credit card companies coming after you for more on their end.
And keep in mind, the debt settlement pitch on television and radio is, in most cases, just that, making lofty promises to spare people from bankruptcy and eliminate her debts. As the industry grows, so do its aggressive strategies and unfair practices. As the Times reports, “Since 2004, at least 21 states have brought at least 128 enforcement actions against debt relief companies, according to the National Association of Attorneys General. Consumer complaints received by states more than doubled between 2007 and 2009, according to comments filed with the Federal Trade Commission. ‘The industry’s not legitimate,’ said Norman Googel, assistant attorney general in West Virginia, which has prosecuted debt settlement companies. ‘They’re targeting a group of people who are already drowning in debt. We’re talking about middle-class and lower middle-class people who had incomes, but they were using credit cards to survive.’”
So, if you are considering a bankruptcy due to mounting credit card debt balances, it’s advised that you instead address this fact with a knowledgeable attorney. Knowing a qualified bankruptcy attorney can also help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Congress Withdraws Health Assistance for Those Who Need it Most, Forcing Many to Make Tough Financial Decisions
Published Friday, June 18, 2010 @ 8:28 am
The times they are a’ changing.’ But are they really getting better for the unemployed?
Back in the 1980s, laws like COBRA were enacted to protect laid-off workers from losing their precious health care immediately following their job loss. COBRA allowed, and currently allows, for unemployed Americans to keep their former employer-provided health care benefits for up to 18 months, assuming those same employees pay the full amount of their premiums along with additional administrative charges.
But fast forward to the recessionary 2000s, when family premiums average about $13,500—economically out of range for many, if not most, of the millions of today’s unemployed.
Taking into account the astronomical cost of health care, a 2009 stimulus bill, with subsequent expansions, tried to changed all that, providing a reprieve in the form 65 percent federal subsidy on health insurance for up to 15 months. According to a recent article in The Huffington Post, “Workers laid off through May 31 [could] qualify for the benefit through their former employer. ‘It has been a significant program and it has helped many middle-class families to keep their health insurance at a time when maintaining health insurance was difficult because of the high rate of job loss,” said Alan Krueger, the Treasury Department’s chief economist. Official statistics on how many people were helped have yet to be compiled, but Krueger estimates that as many as one-third of eligible unemployed workers enrolled in subsidized coverage.’”
However, this good news is tempered by the fact that Congress is now allowing this emergency health care assistance for unemployed workers to officially expire on May 31, with little willingness to renew it despite pleas from President Obama. And with the unemployment rate still at staggering levels (at just under 10 percent) and with 15 million people looking for work, this post-recession withdrawal of health care assistance is being touted as premature at best.
According to the same The Huffington Post article, “on Saturday night, the White House released a letter Obama sent to congressional leaders of both parties asking for nearly $50 billion in emergency aid to state and local governments to fend off ‘massive layoffs of teachers, police and firefighters’ and to prevent a possible double-dip recession. ‘We are at a critical juncture on our nation’s patch to economic recovery,” the president warned. “It is essential that we continue to explore additional measures to spur job creation and build momentum toward recovery, even as we establish a path to long-term fiscal discipline. At this critical moment, we cannot afford to slide backwards just as our recovery is taking hold.’”
But for some, this experience hardly represents a recovery at all. And from teachers to police to factory workers, this latest economic setback is just one in a long line forcing people to make tough financial decisions. In Marietta, Ohio, for example, “boiler operator Neil Davis is facing the loss of his job as the coal-burning power plant he works at prepares to shut down for good. Davis, 33, has marketable skills but he’s unsure how quickly he’ll be able to find comparable work. His wife is a stay-at-home mom raising two elementary-age children. ‘Being able to have coverage at an affordable rate, we wouldn’t be afraid to take the kids to the doctor if they get sick,’ said Davis. “The economy might be getting better some place, but I don’t know where at.’”
For many, the quickest route to recovery comes from bankruptcy. Instead of giving up health insurance, bankruptcy allows average Americans to surrender consumer and medical debts that have been keeping them down, while allowing them to devote the dollars they do have to the important work of keeping their families healthy—even if (and when) they’re out of work.
If you too have been effected by the employment crisis, knowing a qualified bankruptcy attorney can also help you to face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Could You Withstand a Second Recession?
Published Thursday, June 17, 2010 @ 10:15 am
Following the last several years of the worst economic downturn in recent history, economists, commentators and financial experts have recently been heartened about prospects for economic growth and recovery this year as industries increasingly report better profits and the additions of new jobs.
Yet, as the economy emerges from the doldrums, consumers aren’t the only ones feeling hesitant.
Federal Reserve Chair Ben Bernanke said warned Congress recently that the economic recovery “won’t feel terrific.” That may be because, as The Huffington Post reports, “there’s still a significant risk of America falling into a second recession. According to the Wall Street Journal, the latest round of economic news has raised concerns among the Federal Reserve’s board of governors that the chance of a double-dip recession is increasing.”
The Wall Street Journal echoes this dismal news with more bad news from the Fed on the unemployment front. “I would be surprised if the national unemployment rate were to fall below 9% before the end of 2010 or below 8% by the end of 2011,” Narayana Kocherlakota, Minneapolis Fed president, said Friday. And with May 2010 marking the first monthly decline in retail sales since last Fall, “CNN Money spoke to a handful of market insiders, all of whom agreed that the chances of a double-dip were rising. The experts put the chances of a double-dip recession between 20 and 30 percent.”
So how do you plan for a so-called “double-dip recession?”
Savings
While advice to “save more” may sound obvious, in a financial meltdown it can be tougher than you think to put money away and tighten your belt. According to US News and World Report, “During the worst days of the recession, Americans boosted their savings to about 5 percent of their disposable income, as they built (or rebuilt) nest eggs and rainy-day funds. But the savings rate has now fallen to 3.4 percent, and that’s not high enough. Economists believe the savings rate needs to be somewhere between 6 and 10 percent, for several years, for the nation to rebuild all the wealth lost in the housing and stock market busts. That might sound high, but the historical average after World War II was about 12 percent. Few households today can match that.”
Side Income and Connections
In this tough economy, there’s no excuse for not harnessing the entrepreneurial spirit. In order to shore up your savings or make a backup plan for your business, try accruing side income and professional connections via freelance or consulting work, starting an online business, or putting together a website showcasing your marketplace acumen. A little hard work now can pay dividends in a “double-dip.”
Self-Sufficiency
As federal deficit balloons and Congress become more reluctant to spend, there will be a lot less aid from government coffers to spurn the economy and help Americans, including fewer tax breaks, unemployment benefits, stimulus-sponsored jobs, or other government aid. As such, the quicker we realize we’re on our own the easier it’ll be to make preparations for an uncertain future: save more; work harder; and plan better…for rainy days and beyond.
Consider Bankruptcy
Knowing a qualified bankruptcy attorney can also help you to save money, time, and make you more self-sufficient in an uncertain future, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
More People Filing for Bankruptcy This Year Than Last
Published Thursday, June 17, 2010 @ 8:17 am
Just when you thought it was safe to call it an economic recovery, the American Bankruptcy Institute (ABI) pointed to a continuing recession with reports last week that personal bankruptcy filings for the month of May 2010 have increased compared with a year ago (May 2009). In this data also reveals figures finding that total bankruptcies dropped slightly in May 2010 versus the previous month of April 2010.
According to the ABI findings, in May 2010, 136,142 personal bankruptcy cases were filed, a nine percent increase from May 2009, when 124,838 cases were filed. May’s total marked a six percent drop from April of this year, when 144,490 cases were filed. Of the cases filed, 26 percent were under Chapter 13 of the U.S. Bankruptcy Code, and most of the remaining 74 percent were under Chapter 7. Based on figures collected so far in 2010, most sources estimate that personal bankruptcy filings this year will total about 1.6 million, a 10 percent increase over the 1.44 million filed in 2009.
While May marked a decline in filings from the previous month, the ABI data is still illustrative of a severe economic crisis—especially the recent year-to-year increase in insolvency.
While the reasons for the rise in personal bankruptcy, and specifically Chapter 7 bankruptcy, aren’t always clear, other economic forecasts in recent months shed some light on the ongoing issues.
First and foremost, an increase in total bankruptcy filings from this time last year could be one of the offshoots of consistent borderline double-digit national unemployment. This persistent joblessness means many average Americans who have been out of work for several months to a year or more are now exhausting their savings and turning to bankruptcy to get a better economic foothold. In addition to pushing people into bankruptcy, unemployment seems to responsible for the fact that Chapter 7 cases outnumber Chapter 13 cases nearly two to one. This data reveals that widespread unemployment may mean many people have too little money coming in to even consider a Chapter 13 bankruptcy repayment plan. As a result, Chapter 7 may be their only hope in an uncertain economic environment.
And there appears to be no help on the home front for those in over their heads and underwater in their mortgages. In addition to long-term unemployment affecting bankruptcy filings, mortgage costs may be pushing more filers toward Chapter 7. As has been well reported, despite efforts from the Obama Administration’s Home Affordable Modification Program (HAMP), millions of Americans with astronomical mortgages and facing foreclosure have not been able to have their loans modified and still owe more than their homes are worth. Stuck with expensive home loans that they can’t afford, many are willing to walk away from the underwater lifestyle using Chapter 7 (versus salvaging their homes through Chapter 13).
So, if you’re one of the millions struggling with unwieldy debt, long-term unemployment, or an unmanageable mortgage, bankruptcy can work for you as it has for so many this year, and last.
Knowing a qualified bankruptcy attorney can also help you to save money, time, and make you more self-sufficient in an uncertain future, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Feeling Poor? Become What You Eat: Healthy and Nutrient-Rich
Published Wednesday, June 16, 2010 @ 2:18 pm
In these tough economic times, eating healthy doesn’t have to mean eating expensively; in fact, it can often mean the opposite. As any nutritionist worth his or her salt can tell you, eating in often means eating better; and as any economist will tell you, eating out can starve your wallet. Plus, while you’re staying in and choosing healthier supermarket or sustainable options, you can also pick the fit-friendly food choices that will keep you strong, out of the doctor’s office and away from injury and illness that—as many a medical bankruptcy shows—can ultimately break the bank.
So, if getting fit, healthier and slimmer isn’t incentive enough to seek preventative measures like improved diet and exercise, look no further than a nutrient-rich diet that won’t leave you cash-poor with staggering medical bills.
So, where do you begin? Don’t know what’s cheap, easy and healthy in your grocer’s shelves and freezers? Well invest in these simple standbys that are easy on the wallet while making it harder to succumb to expensive conditions like diabetes and hypertension:
Bananas
This potassium powerhouse is a filling, fiber-rich breakfast and snack favorite that usually cost less than a dollar a pound. Use a bunch for a week-long punch of fruit or grab a few for a fruit smoothie option that will leave you full and fitter.
Beans
Chickpeas, black beans, pintos, kidneys, navies, no matter what the bean, you’ll never break the bank. While canned beans are low-cost and super convenient, dried beans can be bought in bulk and provide an even lower-cost option. Use beans as a meat-replacement to give you a more cholesterol-friendly choice that is also better for the environment…and your wallet!
Blueberries
While they can be a bit more expensive, if you can only afford one fruit per week, a basket of blueberries can be your single best food powerhouse. With just 80 delicious calories per cup and virtually no fat, blueberries offer us many important nutrition and health benefits. Mix them with oatmeal (see below) for a low-fat breakfast, or eat them alone for snack stored up with vitamin c, fiber, and disease-fighting antioxidants.
Carrots
This carotene-packed veggie is an excellent source of antioxidant compounds, and the richest vegetable source of the pro-vitamin A. In addition to promoting better vision, this convenient snack is great for kid and adult lunches, alone or with your favorite low-calorie dipping sauce.
Frozen spinach
It worked for Popeye and it can work for you too. Spinach is a green machine that supplies a necessary nutrient boost in the time it takes to microwave a meal…and for less.
Oatmeal
Cheaper than cereal, this old kid-friendly staple is a great source of fiber that can cut cholesterol and can even prevent diabetes and reduce the risks of heart disease.
Peanut butter
This ain’t your mother’s jelly companion anymore. A low-sugar version of your favorite texture of peanut butter is a cheap, filling option that is loaded with good fats.
Sweet potatoes
Skip the pie and load up on the source: sweet potatoes are a power and nutrient packed alternative to its starchier potato counterpart.
And if you’re fed up with your current financial situation, here’s some more food for thought: knowing a qualified bankruptcy attorney can also help you face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Blockbuster on Brink of Chapter 11; Movie Studios Rejoice.
Published Wednesday, June 16, 2010 @ 8:23 am
There is no shortage of bright, shiny signals alerting us that the world of technology is changing faster than we can measure. At one time, shopping on the Internet was considered a decision that could put your entire financial wherewithal at risk. Now, if a company doesn’t have an online shopping cart, it’s outdated. Cell phone cameras were thought of as intrusive, unnecessary accessories that no one is going to care to own. Today, a palm-sized phone has auto-zoom, manual focus and 5-megapixel imaging.
The latest sign of technology’s preponderance is the presence of Blockbuster video on the ever-crowded edge of corporate bankruptcy.
The once de-facto choice of entertainment for family movie nights and awkward first dates everywhere, the home-video stalwart has been muscled out of its marketplace by the Internet. Having already taken out Hollywood video, online movie services have successfully capitalized on America’s lust for convenience. As scary as it is to admit, we have now reached a point where leaving the house to return a movie has become too cumbersome. We are now officially a culture obsessed with remaining insular and micro-local. The more we can get without having to see the sun, the better.
Pardon the digression.
Many years ago, the movie industry launched a very major, very public tirade against film piracy. The ads touting the evils of stealing a studio’s work played as preamble before major releases and took up full color pages in entertainment publications. While there is no question that bootlegging and streaming direct from a studio server is indeed stealing, the legalities of the issue were not what concerned the studio. The amount of money piracy costs studios is only a fraction of what they claim it to be. Most pure cinema lovers would much rather pay $10 to see a film in its all glory on the big screen instead of paying $6 for a blurry, poorly filmed replica. And, until recently, the majority of Americans didn’t have the bandwidth or the screen quality (hello HD!) to make downloading a stolen film worthwhile. And those who could and then sell it were taking only fractions of cents on the whole from the box office.
Instead, the studios real concern was that they did not want to get beat to market. The threats of penalties and jail time simply provided a convenient way to delay their competition until things fell into place.
Today, some movies make it to the consumer market only weeks after theatrical release. Netflix, Blockbuster and iTunes all offer legitimate, direct downloads of movies for the same amount they once cost to physically pick from the shelf. Cable and satellite television service providers offer “on-demand” services that play a recent release with the push of a button and an easy add-on to your monthly bill.
At one time, Blockbuster and Hollywood video lived and died by the sale of VHS and DVD player manufacturing. After all, the entities were useless without one another. Walk into a Wal-Mart or Best Buy today and you’ll notice that Samsung, Sony and Panasonic are much more friendly with your local Internet service provider than your neighborhood video store, as more video players are connecting, via WiFi of course, to the Web to download movies directly to your television.
You see, there was really no concern with what piracy was costing the folks at Warner Brothers, Paramount and MGM. Ultimately, the pirate market was simply one they couldn’t control. But it’s not an issue anymore because technology has caught up to their plans. They now know how to make money on Web-based content.
Now, about those video cell phones …
North Carolina Among States With Longest Unemployment Rates
Published Tuesday, June 15, 2010 @ 2:13 pm
As has been widely reported, whether you feel the country’s moving toward a great recovery or still floundering in a great recession is still largely determined by where you live and whether you can find a job there. And along with the highest rates of unemployment in a generation, current economic conditions are also typified by astronomical levels of long-term unemployment.
According a recent article by the Economic Policy Institute (EPI), “In April, the median length of unemployment in the United States was 21.6 weeks, up from 15.1 weeks in 2009 and well over double the median unemployment spell of 8.4 weeks at the start of the recession in December 2007.” The EPI’s new “median length of unemployment” map reveals “that job searches were taking the longest in Michigan and South Carolina (19.4 weeks), followed by Florida (18.1 weeks), and Rhode Island (17.0 weeks).” North Carolina was among the worst, revealing average job searches topping out at 16.5 weeks. All this despite recent figures finding that some North Carolina cities join Texas towns as rising to the top of the heap in terms of hiring. “States where job searches were shortest include Alaska, North Dakota, and Wyoming, where the median length of unemployment was slightly less than eight weeks in 2009.”
Unfortunately, the April figures don’t take into account the fact that the typical length of unemployment nationwide has increased by five-and-a-half weeks since 2009; as a result, it’s safe to say, that the long and winding road to gainful employment in most states now takes even longer than the EPI figures suggest.
And, if that’s not bad news enough, the EPI reported that a “even in the states with the shortest median length of unemployment, the typical worker is still taking close to two months to find a job. In terms of unemployment duration at the national level, this recession is much worse than any other since at least 1967, the earliest year for which data are available. The previous peak of 12.3 weeks reached in May 1983 is dwarfed by the April 2010 length of 21.6 weeks, the highest ever recorded. Finally, while the median duration of unemployment represents the typical job search, it also means that the wait is longer for half of all unemployed workers. This suggests that many workers will exhaust their standard 26 weeks of unemployment insurance before finding a job. The American Jobs and Closing Tax Loopholes Act currently before Congress would extend unemployment benefits through the end of 2010, benefiting about five million long-term unemployed.”
Unfortunately, Congress seems to be less empathic and more apathetic than in months past, in some cases scoffing at the notion of extending monthly benefits because of the appearance that these subsidized sums encourage people to exit the job search. As a result, many are taking things into their own hands to address their financial woes and take back their fiscal freedoms to make a fresh start through bankruptcy.
So, if you too have been affected by the economy and are wondering how to reduce debt, knowing a qualified bankruptcy attorney can also help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Keeping Your Car Insured In Bankruptcy
Published Tuesday, June 15, 2010 @ 12:16 pm
In an era of extreme economic downturns and job insecurity, having a car at your disposal has never been more necessary for work, job interviews and providing other basic fiscal needs…even as you consider a personal bankruptcy. Fortunately, in most places a regular car, as in one single car, is usually exempt from bankruptcy to allow average Americans just like you to get to work, school and make runs for basic needs and necessary family errands.
However, if you do find yourself seeking the financial benefits of bankruptcy, it’s important to avoid putting the brakes on regular car maintenance, including basic car insurance and automobile upkeep.
In short, in bankruptcy, it’s important to keep what you do have intact. So, when you file for a personal bankruptcy, under Chapter 7 or Chapter 13, you are required to keep your vehicle insured even if that personal property is deemed exempt from the bankruptcy coffers; even if the vehicle has been completely paid off; and even if you, as the bankruptcy debtor, do not currently use or drive the vehicle.
Why, you might ask? You must keep your car insured because, upon filing for bankruptcy, your property automatically becomes a part of the larger bankruptcy estate; as such, the bankruptcy estate could be held liable for any claims against you, as the owner of the vehicle; more so, if that vehicle is, you guessed it… uninsured.
In practice, you file for bankruptcy and several days later you find yourself in a fender bender with no car insurance. This triggers a unique situation where the opposing driver can sue you and possibly could sue the bankruptcy estate. And when someone goes after property in the bankruptcy estate it jeopardizes those assets for the purposes of your bankruptcy, creating a situation whereby non-exempt property (property that can be liquidated for the purposes of paying your creditors) could be reduced by a third party and, in the end, reducing the amount of money the creditors receive.
This scenario can trigger a few possibilities.
Stay Uninsured and Face the Consequences
For example, assume you are using a car that you’ve completely paid for with no insurance. You have an accident involving that same car several days after filing for bankruptcy; your part of the property and personal damages is $10,000. Assume also that your bankruptcy estate is filled with non-exempt assets worth a total of approximately $30,000. In this case, your accident involving your uninsured vehicle could literally cost your bankruptcy estate that same $10k, leaving on $20,000 to pay out to hungry creditors.
Stay Insured and Feel Protected
If, in the alternative, you heed this warning and stay insured throughout your bankruptcy, the insurance can absorb any related damages costs from a car accident, limited your liability both to another driver and the creditors seeking your bankruptcy estate. In a case where you are willing, but unable, to get the required car insurance, a bankruptcy trustee will sequester that car, and store it, for the purposes of avoiding any potential liability during the bankruptcy process and repayment plan.
So, to avoid any headaches, hassles or hardships the best rule of thumb is, if you are going to file bankruptcy, do so with insurance…and before your car gets repossessed.
Got more questions about property exemptions in bankruptcy? Well, knowing a qualified bankruptcy attorney can also help you not only conquer your creditors but also keep a much-needed car, yielding the right kinds of support, information and insights—at a low cost— to keep you moving (literally and figuratively) in your fiscally-viable future. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button and let these experts take the wheel to so you can start down the road to your next best financial steps.
What Can You Do If You Can’t Pay Your Student Loans?
Published Friday, June 11, 2010 @ 10:10 am
The summer months are shaping up to be tough times for recent college graduates. This newest round of job seekers continues to face record unemployment and mounting consumer debt. So what happens when these poor economic conditions coincide with mandatory payback timelines for astronomic educational loans? One word: defaults. In fact, many recent grads will soon exceed the 270-day window for beginning paying back their student loan, triggering a default on their mounting student loans—loans that often have high interest rates.
So what can you do if you can’t pay your student loans or have already defaulted?
Categorize Your Loan: Private or Federal
In these default scenarios, the type of student loan can make all the difference. Determine whether your student loan is federal or private. Federal student loans often offer more flexible repayment programs, economic deferments, or temporary forbearances. Alternatively, private student loans can afford less flexibility and fewer repayment options; yet in some cases have ready lenders willing to negotiate repayment with an economy-weary public.
Seek Unemployment Deferments
If you are unemployed and hold a federal student loan, you can qualify for an economic deferment or forbearance. These deferments can provide recent college graduates with precious time to get on their feet, search for steady employment, and pad their coffers for a more fruitful financial future. For those with private student loans, unemployment status can be a negotiating tool to temporarily lower loan repayment payments and possibly negotiate a deferment of the loan similar to that of federal programs.
Income Contingency Plans or Payment Reductions
What if you do have a job, but your paycheck can’t support your student loan payment? If the money you’re making can’t float the money you owe, federal student loans offer income contingent repayment plans that can more appropriately pair pay to loan payments, giving you a bit of breathing room to work your way up. While most private lenders don’t offer income contingent repayment plans, its in your best interest to try negotiating a temporary reduction in monthly payments. In the world of private loans (amid this economy), it can pay to ask.
Making Breathing Room with Bankruptcy
While bankruptcy [currently] can’t be used to automatically wipe away your student loan debts, what it can do is erase massive credit card debt and other consumer debt loads that are keeping you from repaying your student loans. As a result, bankruptcy can allow you to redirect your paycheck from paying out “bad” consumer debt to repaying “good” educational loans. Further, while it’s difficult, if its found that your student loans create an “undue hardship,” bankruptcy can alleviate student loan woes. Either way, relieving financial burdens early in your adult life and career can pay dividends later: allowing you to rebuild credit as you build your career and repay your educational loans earlier in the game.
As a result, if you too have been effected by the economy and are wondering how to reduce student loan debt—and stress— knowing a qualified bankruptcy attorney can also help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Personal Bankruptcies at Highest Rate Since October 2005.
Published Wednesday, June 9, 2010 @ 7:23 pm
Despite faint signs of recovery in the business world, bankruptcy courts in America are busy handling more personal bankruptcies. Really busy.
In the last month of the first quarter of this year, more individuals filed for bankruptcy than in any month since last 2005. Back then, there was a last minute rush to seek financial protection because of the soon-to-be-enacted Bankruptcy Abuse and Consumer Protection Act, which made bankruptcy laws what they are today.
March saw 35 percent more people file bankruptcy than in February, when a total of 158,141 petitions were filed. Prior to that, October 2009 held the record but was still 19 percent less than March’s total. And, in at least 12 states in the first quarter alone, personal filings increased by double-digit amounts compared to their 2009 totals.
Impressive, huh?
These numbers indicate a few things. Primarily, they show that the current recession will have a much longer tenure than what the evening news may be figuring. With more people just now filing, that means it will be at least a couple of years before the people behind those numbers can reach their full spending potential within the economy. And even then, they will most likely be living under a “save more, spend less” mindset.
The increase in filings also demonstrates that fewer people view bankruptcy as a sign of financial insecurity or weakness and more as a suitable, legal way to begin anew.
Surprising to many in the industry is that even in states where bankruptcy numbers were already high, the numbers continue to climb. The figures, compiled by Automated Access to Court Records, show that California, Arizona and Florida citizens are still leading the nation in filings after months of suffering the most from the collapse of the real estate market.
The explanations for so many bankruptcies are many, from unemployment to housing trouble. However, personal borrowing is said to be powerful driver of how so many of us wound up in debt. According to a law professor at the University of Illinois, Robert Lawless, the rate of borrowing is 10 times what it was in 1960, when adjusted for inflation. When at one time most people would simply borrow more to stave of creditors, the credit freeze has made re-financing and loan adjustments all but impossible.
The trends are also pointing to a rather steep drop in the number of Chapter 13 bankruptcies, which involve paying a portion of your debt, consolidated, in a series of monthly installments. Now, the vast majority of personal bankruptcies are Chapter 7, which involve complete liquidation of debts and sometimes a loss in personal assets. Essentially, Chapter 7 enables a quicker turn-around. People are able to start fresh, although with not much of a credit rating. At least for a couple of years.
A law professor at UC Berkeley, Katherine Porter, reported that since 2005, Chapter 13 filings are down 35 percent, accounting for only 25 percent of all personal filings. “Systemically,” she said, “that’s a big change.”
Relative to home ownership, the numbers also show that more people are walking away from their mortgages instead of continuing to pay them as part of a Chapter 13 plan. Plus, with the foreclosure rate growing almost as quickly, it’s often the better route.
While there was at one time debate about a mortgage cram-down bill, which would allow bankruptcy judges to reduce mortgage terms to make payments easier for those filing, no such proposal has been passed, leading, in part, to the current state of American home ownership.
If you think you may become part of these statistics, please consider calling us. The sooner, the better.
Still Behind on Your Mortgage? You’re Not Alone
Published Tuesday, June 1, 2010 @ 12:11 pm
Are you struggling to stay current with mounting mortgage costs or finding yourself already in arrears? Well, you’re not alone. According to a recent Reuters article by Lynn Adler, a staggering one in seven households were behind on mortgage payments or is in foreclosure in the first quarter of 2010. And while the rate of new foreclosures has slowed, the sheer number of delinquencies and foreclosure actions still occurring, some two years following the beginning of the recession, is a clear sign that the U.S. housing market remains on a rocky foundation.
This first quarter data from the Mortgage Bankers Association also shows that the nation’s foreclosures rate rose to 4.63 percent, up from 4.58 percent in the fourth quarter of 2009—almost a point higher than the foreclosure rate this time last year (3.85 percent).
While these figures signify we’re a long way from a housing recovery, the diagnosis isn’t all bad: as the unemployment rate peaks, repayment pains will likely subside a bit, yielding fewer new foreclosures. But for those in the midst of foreclosure, and searching for immediate mortgage assistance, these positive forecasts can seem very distant indeed.
“It’s like shutting off the oil leak,” said Jay Brinkmann, chief economist at the Mortgage Bankers Association told Reuters. “You still have a lot of oil in the Gulf to deal with.” Home loans that are 90 plus days overdue or are facing foreclosure remain at historically high levels and represent 68 percent of what Adler characterized as “problem mortgages.”
This is occurring just as the Obama administration reworked its troubled $75 billion foreclosure prevention plan. The revamped Home Affordable Modification Program (or HAMP) put into play an attempt to help those hardest hit by the housing crisis, targeting the mutinies who remain unemployed or underwater in their mortgages (owing more on their loans than their homes are worth) by creating incentives for lenders to lend or modify existing loans to them. Yet, even as some lenders are adjusting some loans to help make mortgages more manageable for borrowers, unemployment continues the pressure of making any payments and saving many a happy home.
“Some might take comfort from the apparent topping out in the number of foreclosures started, but the inventory of foreclosures continues to rise — in other words, this headwind will linger,” said Tom Porcelli, senior economist at RBC Capital Markets in New York told Reuters.
If you’re behind on your mortgages and facing foreclosure like so many other Americans, take heart: bankruptcy can be just what you need to rebuild your budget and protect your biggest asset immediately. In fact, bankruptcy can provide an array of options appropriate for your personal situation—helping you to keep your home—especially if your inability to pay is temporary and you still have a steady form of income. With this arsenal of information in hand, you can feel more comfortable beginning a discussion with your lender, calculating the costs of keeping your home, and planning for your financial future.
So, as most American homeowners search for more immediate and steady mortgage help, you can take your best first steps to stop foreclosure in its tracks through bankruptcy. And knowing a qualified bankruptcy attorney can also help you to more quickly and easily conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— to help keep your home your own. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Texas and North Carolina Top the Heap in the 10 Best Cities for Jobs
Published Tuesday, June 1, 2010 @ 8:10 am
While millions of struggling Americans still working hard to find employment might disagree, economists are heartened about prospects for growth this year as industries increasingly report better profits and add new jobs.
In fact, job growth is said to be at its fastest pace in 10 months. In recent surveys, American employers were found to have added 162,000 jobs in March 2010, the most in three years. Wages and salaries also are improving. And, obviously higher salaries bode well for the recovery, since consumer spending accounts for as much as 70 percent of our nation’s economic activity.
So, are you still looking for work? Well you’ve come to the right place. Or, at least, the place where you can find the best “places” to find work as The Milken Institute, a nonpartisan economic think tank, released its annual Best Performing Cities Index earlier this week.
And where are these bastions for hiring and employment boom towns? Would you believe deep in the heart of Texas?
The 2009 top 10 performers (with 2008 rankings) of the 200 largest metros:
1. Austin-Round Rock, TX (4)
2. Killeen-Temple-Fort Hood, TX (13)
3. Salt Lake City, UT (3)
4. McAllen-Edinburg-Mission, TX (7)
5. Houston-Sugar Land-Baytown, TX (16)
6. Durham, NC (21)
7. Olympia, WA (9)
8. Huntsville, AL (5)
9. Lafayette, LA (14)
10. Raleigh-Cary, NC (2)
Yep, that’s right, the Lone Star state as it happens made up four of the top five cities in the Milken report. In it, the index editors suggested that these large Texas towns rose to the top of the employment heap, along with a notable pair from North Carolina, due to their resources and technology sectors, in addition to the “state’s favorable business climate and its ability to attract jobs and corporations away from higher-cost states”:
“Regional economic factors also strongly influenced the rankings this year, with the oil and gas sector, technology and alternative energy providing stability among metros in Texas, North Carolina, Washington and Louisiana, which also benefited from low dependence on housing/construction. Austin in particular has been helped by its strong tech industry. It is the first metro to ever be ranked number one twice on the index, the last time being in 2000.”
For many of the cities, rising to the top of the rankings was a matter of not losing ground, and, as The Huffington Post put it “sidestepping the worst pitfalls of the recession in order to maintain the status quo.”
As the Milken reported found:
“‘Best performing’ sometimes means retaining what you have,” said Ross DeVol, director of Regional Economics and lead author of the report. “In a period of recession, the index highlights metros that have adapted to weather the storm. As we move forward in a recovery that still lacks jobs, metros will be further tested in their ability to sustain themselves.”
Cities in the index were also ranked based on how well they create and keep jobs, illustrating reflected both long- and short-term measurements of employment, wages, salaries and the aforementioned tech growth. But whether you’re in Texas or the Tar Heel state, these rankings aren’t definitive….and, in this lingering economic recession, neither is job certainty.
In tough times, why not turn to something that is definitive: a smart move to a better financial future through bankruptcy. If you have been effected by the economy and are wondering how to get back on track, knowing a qualified bankruptcy attorney can also help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
The Latest Card Affected by the New Credit Card Act? The Gift Card.
Published Sunday, May 30, 2010 @ 1:41 pm
The Obama Administration’s recent Credit CARD Act, meant to tighten the reins on credit card industry treatment of card customers—and thereby most average Americans— has slowly and steadily begun changing our credit card rates, charges and rewards, the appearance of our statements, and even the number of offers we receive.
But one lesser-known and publicized piece of the CARD legislation is its effect on companies who issue gift cards. The rules, which won’t be fully enacted until August 2010, will affect you if you’re one of the whopping 95 percent of Americans that have used a gift card. From online iTunes stores to the brick-and-mortar department store, there is seemingly a gift card for everything, with gift card purchases now accounting for an impressive portion of all purchases, especially during the holiday season.
Yet despite the one-size-fits-all popularity of today’s gift cards, gift card companies made plenty of money making these cards indispensable for the average consumer, and like its credit card cousin, a commodity that lost value as soon as you bought into it.
The reason? Gift card companies used credit card company tactics to made gift cards the gift that keeps on taking: adding on activation and maintenance fees to the cost of the cards, while in some cases making sure the more time you held on to them, the less value they had until they eventually expired. In short, you bought their card, and, depending on when the card was used, the gift card companies never paid.
While many states took action against gift card companies even before the CARD Act was passed, after August 22, 2010, the new legislation extends additional protections across the nation, including:
Expanding Expiration Dates
With the new CARD Act, now you don’t have to worry about your gift cards collecting dust or being misplaced. Gift cards with an expiration date of less than five years can no longer be sold.
Checking the Charges
Card companies may not charge refund fees for fees for replacing an unexpired card. Additionally “inactivity fees” will be come more “inactive,” as new regulations only allow them to be issued after the card is a year old, and even then a fee may only be charged once per month.
The Gift That Keeps on Giving: Transparency
As of August, gift card issuers must be more actively involved in notifying and educating consumers about fees, charges or expiration dates, as well as providing contact information regarding their ongoing practices.
And remember: If you purchase gift cards or happen to be the lucky recipient of a gift card, take full advantage by using the card in a timely manner and using the full amount. While gift cards don’t affect your credit score like its credit card cousin, it can cause you to lose money without due shopping diligence.
As everyone now knows, there’s normally a heavy price to pay for playing with plastic: the card that’s less of a gift and more of a curse. If you too have been effected by the economy and are wondering how to reduce your card debt and get back on track, knowing a qualified bankruptcy attorney can also help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Hundreds Of Thousands To Have Unemployment Benefits Cut Off
Published Sunday, May 30, 2010 @ 8:00 am
While lack of confidence in the recent economic recovery led employers to shed an unanticipated 85,000 jobs in December 2009—even as many long-time unemployed Americans gave up looking for work to keep the unemployment rate steady at 10 percent—the qualification dates for existing tiers of unemployment benefits were extended for an additional two months. That two-month bump in benefits was again renewed at the end of February 2010.
Now another deadline may leave millions of average Americans bewildered and without any money coming in to their coffers. In fact, without Congressional action to extend these benefits, this latest look at the state of unemployment means an unprecedented number of jobless workers will lose their benefits and become ineligible to get more by June 2010.
As The Huffington Post reported this week however, politics and partisanship mean the latest round of benefit renewals is far from a slam-dunk. “This week Congress will consider legislation to reauthorize extended unemployment benefits for the rest of the year. It’s gonna be an epic fight: Republicans in the Senate will likely do everything they can to stand in the way of a bill projected to add $123 billion to the deficit, forcing Dem leadership to round up a supermajority for a last-minute Friday vote before Congress adjourns for its Memorial Day recess.”
But even if legislation passes extending unemployment benefits, it comes as very little consolation to the hundreds of thousands of long-term jobless Americans, seeking the hopeful “hand-up” of being hired into a job versus the alternative federal “hand out” while they continue their lengthy search. In fact, in many states across the country, unemployed workers can receive checks for 99 weeks, with no option for a 100th. This group, now dubbed the unfortunate “99ers” by some in the media, isn’t even considered in the latest proposals for extending benefits.
“What’s frustrating is that our government doesn’t seem to think this is an important issue,” said Christy Blake, a 35-year-old mother of two in Fruitland, MD, told HuffPost. “We didn’t put ourselves here. It wasn’t our choice. I have been diligently looking for work.”
Unfortunately, Congress seems to be less empathic and more apathetic than in months past, in some cases scoffing at the notion of extending monthly benefits because of the appearance that these subsidized sums encourage people to exit the job search. Case in point, Rep. Kathy Dahlkemper recently told the Washington Post that few laid off workers in her district were applying to hiring businesses because of a steady stream of unemployment checks. “Now, whether that’s true or not, I’m still trying to decipher,” said Dahlkemper. “But I think it’s something we really need to look at.”
But for average folks like Christy Blake, the situation is clearer: “I think it really stinks,” Blake told HuffPost. “It’s beyond stinking.”
As a result, many are taking things into their own hands to address their financial woes and take back their fiscal freedoms to make a fresh start through bankruptcy.
In fact, knowing a qualified bankruptcy attorney can also help any unemployment person to conquer their creditors and face their financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Self-storage and Bankruptcy. Is There a Connection?
Published Saturday, May 29, 2010 @ 8:38 am
In the last ten years, self-storage centers have infiltrated America faster than a bad singer on YouTube. From basic storage sheds with individual bays to climate-controlled multi-story complexes, we have become a nation obsessed with storage. Heck, you can even invest in a garage condo today.
Now, let’s juxtapose our need for storage with the general financial position of so many American families right now. There is really no more proof of our collective love of useless consumer products than the need to pay $100 month just to store it.
And if it’s not in a storage facility, it’s pushing the car out of the garage. Take a walk some evening and glance into some of your neighbors’ garages. Many of them will be floor to door opener in boxes, old bikes, broken furniture, unused plastic playhouses and a healthy collection of old electronics. You may also see a nice clean path that’s been blazed to the house entry. At least, that’s where we hope it leads.
There is little question that in the last number of years, our country has been filing bankruptcy because of what’s in our backyard sheds, garages and expensive storage facilities. We’re well aware that many of you have filed because of unemployment, medical hardships and crushing home debt. However, we do see a good number of folks who simply spent too much on pretty much nothing. Nevertheless, they deserve our help too, and that’s why we’re here.
A big part of your rebound from bankruptcy is learning how to avoid the same mistakes—and the desire to have the latest and greatest of everything is a big one. One way to help rid yourself of the ghost of all those “things” that led you to bankruptcy is to sell all the junk cluttering your life. Thankfully, there are a number of great ways to do it.
Your church is a terrific place to start unloading some of your unwanted financial baggage. The upcoming rummage sale or fundraiser is a great reason for you to clean out your garage.
Ebay can be helpful in selling things but can be cumbersome at times and requires more work than just a simple, outright sale.
Look into Craigslist.org, too. The site is narrowed down by category quite nicely and allows for direct communication. If you have some luck with a buyer, go meet them in a public place with your goods; don’t have them come to you. Use the parking lot of a local fast food restaurant to make the sale and be sure to tell someone where you’re going or bring a friend with you.
Lastly, never forget the old fashioned garage sale. Some people live and die by these weekend rituals and will be at your door before dawn. So be ready early.
Remember, the point isn’t to make money on these items, it’s to simply get them out of your life. If you focus on profit, you’ll find yourself too concerned with price and convince yourself that something is worth more than it is. Before you know it, you’ve shined it up again and stuck it back on the shelf.
The Big Easy: How Bankruptcy Can Mean Music to Your Ears.
Published Friday, May 28, 2010 @ 5:38 pm
In the new HBO series Treme, viewers follow the lives of New Orleans residents a mere three months following the physical, emotional and economic devastation of Hurricane Katrina. The cast of characters represents a cross-section of ordinary New Orleanians—from police to piano players—trying to rebuild their lives, their homes and their unique culture in the aftermath of the 2005 storm. Like a bellwether for our nation’s tough financial times, Treme captures the proverbial “perfect storm” that led to one city’s economic fallout, full of stark imagery of people losing everything and attempting to rise from the ashes in any way they can.
Prominently featured in this series are New Orleans musicians, a subgroup especially hit hard by the city’s downward spiral—a situation that increased crime, dropped tourism, and seemingly attempted to steal the heart and soul of the city: its music. In many scenes, we see these musicians desperately seeking gigs, moving on from traditional venues, and, in some cases, literally losing the tools of their trade: their prized musical instruments.
Unfortunately, the sights and sounds of Treme have become all-too-familiar in recent years in many parts of the country, with many inside and out of The Big Easy, finding it none-to-easy to keep their heads above water. Like a devastating hurricane, a wave of financial difficulties can come quickly and unexpectedly, leaving average Americans wondering where they can turn for help.
For those who have been hardest hit in the working class—like Treme’s musicians, teachers, and restaurateurs—bankruptcy can provide the most effective way to pack back debts and pay it forward on the road to financial freedom. But, in some cases, bankruptcy seems like a quick ticket to losing personal property, a prospect that can seem difficult to those who rely on the aforementioned “tools” to continue their “trade.”
Take for example, the musicians featured in Treme. Whether you’re the show’s “Annie,” a savvy sidewalk violinist or a traditional trombonist like the character Antoine Baptiste, your instruments (or other personal property) are your lifeblood. As such, many worry that bankruptcy means losing your stuff, including expensive instruments, and, in turn, losing your livelihood.
But bankruptcy isn’t necessarily the legal equivalent of singing the blues. In reality, rather than the court striking the chord to carrying away all of your possessions like a legally-sanctioned storm, you are in fact legally entitled to claim much of your property as exempt. This can include cars, furniture, and even your precious musical instruments.
In fact, under bankruptcy law in many states, you can claim musical instruments and equipment as a component of your “household items.” And, if you are a professional or semi-professional musician, you may claim a certain amount of equipment as necessary for your occupation.
But, of course all of this depends on the particulars of your unique situation. From New Orleans to Northern California to New York, bankruptcy can affect people of all backgrounds and walks of life, in many different way. As a result, many need to turn to the assistance of an experienced bankruptcy attorney to hit the right note as they play for a better financial future.
As a result, if you’re an average working class American looking to hold on to your priceless personal property, knowing a qualified bankruptcy attorney can yield the right kinds of support, information and insights—at a low cost. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
One Year Later, And Still Unemployed
Published Thursday, May 27, 2010 @ 8:11 am
While many economists and financial experts are now saying that this decade’s Great Recession ended in the middle of 2009, millions of struggling Americans who have been working diligently for a year or more to find meaningful employment would definitely disagree.
In fact, a new report has found that just one in five people who were out of work at this time last year have found meaningful employment since then. According to The Huffington Post, “of more than a thousand unemployed people surveyed by Rutgers University researchers last August, just 21 percent had landed a job by March, a follow-up survey reveals. Two-thirds remained ‘unemployed’ according to the government’s definition — the rest gave up looking for work altogether, either going to school or retiring early.
And, of the fortunate folks who did find meaningful work, a paltry 13 percent found full-time jobs; whereas 61 percent said their current work was merely “something to get you by while you look for something better.” A small consolation indeed.
“It’s a pretty grim study,” Cliff Zukin, one of the authors of the report at the John J. Heldrich Center for Workforce Development at Rutgers told HuffPost. The survey also found that an additional 70 percent searched for work longer than six months, up from 48 percent in the summer. To deal with the deficits of not having a steady income, “70 percent dipped into retirement funds, 56 percent borrowed money from family or friends and 45 percent turned to credit cards. Forty-two percent skimped on medical care, 20 percent moved in with family or friends and 18 percent visited a soup kitchen.”
Not surprisingly, the pain of extended unemployment appears to be wreaking the most havoc with more mature Americans. The survey showed that only 12 percent of those over 50 years old had found jobs since August 2009, with many believing age discrimination was to blame. “Although there is nowhere on a CV/resume that you state your age, employers can tell how many years you have worked,” wrote one older American surveyed. “I have been interviewed for positions requiring experience by managers more than half my age, and they can barely contain their disdain—despite the fact that my work experience is far greater than theirs.” According to AARP, in total, unemployment for older Americans—those over 55—rose by 331 percent over the last ten years. At the same time, age-discrimination complaints filed with the Equal Employment Opportunity Commission office have been higher since the current recession began than in any two-year period prior.
In short, times are tough, with everyone from the nation’s oldest citizens to recent college grads looking for a way to make ends meet. Instead of supplementing income by turning to your retirement funds or savings, borrowing cash from friends and family, running up credit cards, or even missing medical visits, the lesson may be that it’s finally time to clean your fiscal slate with the financial freedom of bankruptcy.
In fact, knowing a qualified bankruptcy attorney can help any unemployment person to conquer their creditors and face their financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
Potential Protections for Employees, Including Those Who Are Bankruptcy Bound
Published Wednesday, May 19, 2010 @ 8:20 am
In a move that, as The New York Times described it, “will affect most American corporations,” the Labor Department has announced its latest mandates for company compliance with plans to end wage violations, increase workplace safety and adhere to equal employment laws.
As The New York Times’ Steve Greenhouse reported, “The effort, aimed in part at reducing the incidence of employers not paying overtime and improperly classifying workers as independent contractors, will require them to document many of their decisions and share that information with their workers and the government. In announcing the department’s intentions on Thursday, Deputy Labor Secretary Seth Harris said his department wanted to foster a culture of compliance among employers to replace what he described as a ‘catch me if you can’ system in which too many companies violated employment laws.”
Within these broader strategies for corporate compliance is the potential for added protections for employees considering the benefits of bankruptcy.
The broader strokes of this literal “work-in-progress” are two-fold:
(1) Workplace Safety. New Labor Department rules would require employers to stop “planning” and start “doing,” by developing formal policies for eliminating safety and security hazards in the workplace and directly engaging in these plans in order to evaluate their effectiveness.
(2) Worker Classification. In this effort, the Labor Department is targeting companies who avoid paying workers their due overtime pay and improperly classifying employees to avoid providing proper benefits. In doing so, these changes will require these same companies to document these classifications, providing written explanations of the reasons behind that classification and sharing those explanations with workers and government agencies.
Like clockwork, business interest groups are fighting these Labor Department plans, arguing the new rules mean new burdens on already beleaguered employers without “necessarily improving compliance with labor laws.” And with these proposed changes still in the development stages—giving big business another opportunity to attack the finalized plans—experts say it’s likely to be a year before the changes can be implemented.
Despite these challenges, as Greenhouse reports, “Department officials say they hope the plan will greatly reduce problems in industries with widespread wage violations, like restaurants and discount retailing, and those with widespread safety violations, like coal mining and construction.”
Labor Department Benefits and Bankruptcy. In addition to activating more transparent corporate compliance of internal safety practices and classification policies, this new plan may also extend to employment law protections, reinvigorating enforcement of workplace anti-discrimination policies aimed at protecting employees who have bad credit or are bankruptcy bound. Currently, federal bankruptcy law contains some provisions which prevent unfair treatment of employees who have filed for bankruptcy.
While some employers can run a credit check on prospective employees, under federal law, these same companies must actually get written permission from applicants in order to run their credit check. In the meantime, consumer advocacy groups are showing their support for legislative bans on these types of credit checks, pointing out that credit reports can also contain inaccurate information.
While credit checks are sometimes used in the hiring process, your decision to file bankruptcy should never affect your employment status with an employer.
Until these worker-friendly benefits are in place, consulting with a qualified bankruptcy attorney when facing concerns about your bankruptcy impacting your employment, could be your next, best step.
A qualified bankruptcy attorney can assist jobless and employed citizens with even the worst credit histories to conquer their fears of losing it all. Specifically, the bankruptcy attorneys at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
More Move Into Foreclosure Than Out in HAMP
Published Tuesday, May 18, 2010 @ 10:17 am
Just two months ago, the Obama administration reworked its troubled $75 billion foreclosure prevention plan. The revamped Home Affordable Modification Program (or HAMP), put into play an attempt to help those hardest hit by the housing crisis, targeting homeowners who were unemployed or underwater in their mortgages (owing more on their loans than their homes are worth).
While only 170,000 homeowners to that point had completed loan modifications under the President’s plan—out of 1.1 million who began the government’s HAMP last year—the current effort was designed to help a total of three million to four million homeowners avoid foreclosure by the end of 2012.
But new data released this week shows that more than twice as many homeowners were kicked out of HAMP just last month as were granted permanent relief.
According to The Huffington Post’s translation of the data by reporter Shahien Nasiripour, “More than 123,000 homeowners were bounced from the administration’s Home Affordable Modification Program in April versus about 60,000 who were offered five-year plans of lowered monthly payments. This is the first month since the administration started reporting cancellation figures that the number of canceled modifications outpaced the number of new permanent modification offers. The number of canceled modifications skyrocketed 82 percent in April compared to March.”
The data shows that more homeowners were booted from the program in April, merely one month after the new “improvements,” than there were new permanent and trial modifications combined. According to the Treasury Department, cancellations were approximately 27 percent higher than the number of new trial and permanent modifications.
“I think it’s great to take these numbers in context… with the broad efforts to stabilize the housing market,” David Stevens, chief of the Federal Housing Administration told The Huffington Post, pointing out that home prices and the number of new foreclosures have started to level out with news of the economic recovery. Steves credited President Obama’s continued support of keeping interest rates down with more homeowners being able to refinance their mortgages into lower rates, as well as lower payments, and less folks in the throes of foreclosure. In the meantime, trial modifications have been offered to more than 1.2 million homeowners during the program’s year-long run.
“You know, while enabling eligible homeowners to modify their mortgages is vital to addressing the housing crisis with HAMP, it’s also extremely important to keep this in context that this is just one part of the administration’s comprehensive approach to assisting homeowners and stabilizing the housing market,” said Stevens.
“We don’t claim that the housing market is totally out of the woods, but it’s certainly showing signs of stabilizing,” Herbert M. Allison Jr., assistant secretary for financial stability at the Treasury Department reported to HuffPost. Allison cautioned that “perhaps” more mortgage holders would be kicked out of HAMP before it gets better, allowing new rules to level the current home ownership playing field.
As American homeowners search for more immediate and steady mortgage help, many are turning to bankruptcy to stop their impending foreclosure and other creditor actions. If you too have been effected by foreclosure, knowing a qualified bankruptcy attorney can also help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.