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.

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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

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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.

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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.

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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.

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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.

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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.

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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.

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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.

Durham loan modification. Durham debt relief. Raleigh bankruptcy attorneys. Greenville NC bankruptcy attorneys. Wilson bankruptcy attorneys. Sanford bankruptcy lawyers. Fayetteville bankruptcy attorneys.

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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.

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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.

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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.

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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.

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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.

North Carolina debt settlement. Durham debt settlement. Fayetteville debt settlement. Raleigh debt settlement. North Carolina bankruptcy lawyers.

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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.

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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.

Cary bankruptcy attorneys. Durham bankruptcy attorneys. Apex bankruptcy attorneys. Raleigh foreclosure relief.

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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.

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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.

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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.

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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

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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.

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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.

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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.

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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.

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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.

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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.

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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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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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 100^th. 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.

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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.

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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.

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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.

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Published Saturday, May 8, 2010 @ 8:23 am

Sometimes, 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. While options like bankruptcy can stop most creditors cold, in the interim, unsecured creditors, the ones at the bottom of the proverbial food chain, 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.
In the first part of the four-part series, “Creating a Barrier to Bill Collectors,” we debunked many unsecured debt collecting strategies. Now, we’ll explore the many ways you can actually use Federal law to stop the harassment altogether.

Unlike home, car and other secured lenders, unsecured creditors and their hired goons, the collection services, only have veiled threats “to take further action” if you do not pay your bills.

While these collection services have little to show for their threats, they can be a real source of stress, inconvenience, and sometimes, an invasion of privacy.

So what can you legally do to stop their constant and continued abuse?

Fortunately, the Fair Debt Collection Practices Act (or FDCPA) is here to help. Passed by Congress in 1977, this Act formerly protects you from abusive collection strategies, specifying when, where and how debt collectors can contact you about your debts. Knowing the law, and, more importantly, letting debt collectors know you know the law, is your first best step on the road to being harassment-free.

While the law does not apply to the actions of the original creditor, the FDCPA can put an end to the overt bullying by their bill collectors—normally the primary culprits in the harassment. For example, under the law, debt collectors cannot contact your before 8 AM or after 9 PM, without your permission; make you accept collect calls; send you postcards; publish your name or anything about your debt; threaten to take action, like wage garnishment, lawsuits, and arrests, unless, of course, they tend to follow through; deposit post-dated checks; or collect an amount greater than the debt than the amount authorized.

To report a bill collector under the FDCPA, contact the Federal trade Commission Correspondence Branch, 600 Pennsylvania Northwest, Washington, DC 20580. If you believe a debt collector has acted egregiously in pursuit of your debt, you may also have legal grounds to file a lawsuit within one year of he violation, recovering actual damages, punitive (or symbolic “punishment”) damages up to $1000, and attorney’s fees.

In the alternative, you can always square your debts directly with your creditor or consider your other options; coming up in this series we’ll discuss other ways to call collectors on their intrusive practices, and using bankruptcy to not only erase unsecured debts, but also the hassles of debt collection.

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.

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Published Friday, May 7, 2010 @ 8:06 am

Facing everything from retirement woes to cash-strapped kids, it has been well-reported that older Americans are some of the hardest hit by a lingering recession and rising health care costs.
And now, according The Huffington Post’s Laura Bassett, things just got a little worse for mature Americans looking for work. The reporter blogged in her article “Older Jobseekers Face An Uphill Climb” about the staggering 2 million unemployed people in the U.S. who are over the age of 55.

The “Uphill Climb” of Unemployment

“Although the unemployment rate for people 55 and older dropped from 7.1 to 6.9 percent in March, the AARP Public Policy Institute reported that the average duration of unemployment for older jobseekers was almost three weeks longer in March than it had been in February, and was substantially higher than the 31.1 weeks for the unemployed under age 55,” reported Bassett.

Deborah Russell, director of workforce issues for AARP, told Bassett that “older jobseekers are facing a number of challenges that their younger counterparts are not. ‘Many older unemployed people we’ve talked to have found themselves unemployed for the first time in a really long time,” Russell said. “The job search process has changed significantly. Jobs are now being posted online instead of in newspapers, so you have to post your resumé online, and that’s a challenge for older job seekers. And let’s not forget that there continues to be bias out there with respect to the capabilities of older workers.’”

In fact, according to the latest statistics released by the U.S. Equal Employment Opportunity Commission, “more than 45,000 charges of age discrimination were filed in 2008 and 2009, up from about 30,000 in 1999 and 2000.” What’s more, these surprisingly numbers don’t include the many cases in which mature citizens were immediately disregarded because of their age during the interview process.

This discrimination is compounded by other sources of this modern, yet mature, financial meltdown, including:

Retirements on Hold
The stock market meltdown of 2008 continues to stifle retirement and other investment savings, and, in today’s job market, returning to full-time work as a retiree is no longer a dependable option.  As a result, devastating debt burdens pile up quickly for jobless seniors no longer receiving regular income.
Humbling Health Care Costs
Even with recent health reforms, the combination of ailments of aging and present drug costs creates a perfect storm of ballooning bills for seniors already facing inflated prices.

Multiple Mortgages and High Home Equity Loans

Merely refinancing during the real estate boom can now mean massive mortgage debts for aging Americans suffering from depleted resources in this abysmal housing and job market. 

Peak Predatory Lending

Seniors are often targeted for payday loans and foreclosure scams that take advantage of their traditional desire to pay off their debts—albeit now at unmanageable and exploitative rates.

Worse-Off Offspring
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. Add that with the high costs of college, and there’s little left in senior nest eggs.

So, if you’re an older American who’s been effected by the economy,  and are now 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.

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Published Tuesday, May 4, 2010 @ 8:22 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. But creditors with real teeth (i.e., car lenders, mortgage holders, and landlords) don’t need to make harassing calls or threaten you in order to get what they want. They can just take your stuff: cars in default, homes in foreclosure, rentals in eviction. While bankruptcy can stop secured creditors cold, in the alternative, unsecured creditors, the ones at the bottom of the proverbial food chain, 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.

So what are you to do when these sneaky solicitors become too much?

In this four-part series, “Creating a Barrier to Bill Collectors,” we’ll debunk unsecured debt collecting strategies, explain how to use Federal law to stop the harassment, explore the limits of when creditors can contact you, and finally, show you how bankruptcy can solve everything.

We’ll start with a basic understanding of how much (or little) creditors can actually hurt you.

Unlike home, car and other secured lenders, unsecured creditors and their hired goons, the collection services, only have vague threats “to take further action” if you do not pay your bills. These actions could include, canceling your account, reporting you to credit unions, or threatening to get a judgment against you.

In actuality, (and the more likely scenario in this tough economy where defaults are the norm, not the exception), your creditor may already have canceled your account, already reported you to a credit bureau and is likely telling you they’re considering legal action. None of this is necessarily bad news or should cause you to worry.  There are worse things than having an unsecured account, like a credit card, canceled—especially one that you couldn’t afford to pay in the first place. Once your account is canceled, your interest rates don’t rise and you can begin the work of paying down your bill or getting the debt expunged with bankruptcy. Assuming they’ve already reported you to the credit agencies, that removes one more piece of leverage for getting you to pay. And, finally, keep in mind that debt collectors may threaten lawsuits, but are always looking for the cheapest way out…and that’s to harass you for your money, not hiring a lawyer. So, don’t give in, or give up.

What debt collectors can’t do is report your delinquency to your employer or otherwise publish your debt to the public; nor can they take your property prior to suing and obtaining a judgment against you.  Regardless, the process of gaining a judgment is complex, time-consuming and costly, leaving many lenders using traditional, aggressive tactics to try and get back at you and your money.

In short, it’s better to give bill collectors nothing than even a small amount that will keep them coming back for more. You can always square your debts directly with your creditor or consider your other options; coming up in this series we’ll discuss how to use federal law to keep bill collectors at bay, the ways to call collectors on their intrusive practices, and using bankruptcy to not only erase unsecured debts, but also the hassles of debt collection.

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.

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Published Monday, May 3, 2010 @ 9:21 am

Could the food industry be the latest bellwether of a better economy and returning consumer confidence? Some industry experts seem to think so.

According to William Neuman’s report in his recent New York Times article, “The Tables Turn,” “Restaurants all over the country are beginning to see signs of a potential recovery after a dismal 2009. Sales at some restaurants have risen in the last few months, and the industry has hired thousands of additional workers.  “There’s no question about this,” said Harry Balzer, chief industry analyst at the NPD Group, a market research firm that tracks sales at 47 restaurant chains with a total of 103,000 outlets. ‘There’s a recovery going on.’ Mr. Balzer said that March sales at restaurants open for at least a year were up 1 percent compared with March of last year. While that might not seem like much, it broke a string of 10 months of negative sales. He cautioned that while the sales trends were uneven across the industry, almost half the chains he tracks — mostly fast-food and family dining restaurants like Denny’s — had begun showing gains. Still, many restaurant owners and executives said they expected the rebound to be slow and halting.  ‘Right now, we’re starting to see a few more people come in,’ said Larry Reinstein, chief executive of Fresh City, a chain that sells sandwiches, salads, burritos and stir fry dishes at 18 outlets in the Northeast. But he quickly added, ‘The typical consumer is still cautious of what they’re spending.’

Because restaurants remain consumer-driven pursuits, industry executives are looking at the nation’s staggering overall employment as another indicator of how much this contraction really means. Obviously, if people remain unemployed, they’ll be eating out less…and that means the restaurant industry will remain cautious, if not cautiously optimistic.

Fortunately, this optimism extends to hiring practices, as restaurant owners bring on more employees now than at any time during the recession.  As Neuman reported, “In the first three months of 2010, the restaurant and food service industry added 42,500 jobs, adjusted for typical seasonal hiring patterns, according to the Bureau of Labor Statistics.” Even with this hiring trend, the restaurant industry appears to be merely “re-loading,” still with overall 251,000 fewer jobs now than it did in December 2007, around the time our “Great Recession” started.

Neuman found that among fast-food restaurant chains, local favorite Sonic took some meteoric hits during the extended economic downturn. “The drive-in burger chain, known for its roller-skating car hops, said sales at its approximately 3,500 stores declined 13 percent from December through February, compared with the same period a year ago. The chain said the drop was partly caused by harsh winter weather, but the ailing economy also played a major role. Buddy McClain, who owns 71 Sonic stores in the South, said that while sales were not growing, they had finally stopped falling in March at his Mississippi and Alabama outlets.”

“Everybody’s working harder and making less money, which is not what we call the American way,’ Mr. McClain told Neuman, who has owned Sonic franchises for 32 years. “We’ve been through four so-called recessions since I’ve been in Sonic, and nothing has been near to this.”

If you have been effected by the economy like so many business owners, or are facing unemployment like so many Americans, 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.

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Published Wednesday, April 28, 2010 @ 8:23 am

While millions of struggling Americans still working hard to find meaningful employment might disagree, economists are heartened about prospects for growth this year as industries increasingly report better profits and add new jobs, though they still expect the recovery to remain slow, a new survey shows.

As The Huffington Post reported this week, 70% of those recently surveyed by The National Association for Business Economics believe real Gross Domestic Product (GDP)—the measure of our country’s overall economic output— will “grow by more than two percent this year, up from 61 percent who said the same in January. Twenty-four percent are predicting real GDP will grow by more than 3 percent in 2010, up from 14 percent earlier this year. ‘Industry demand moved higher compared to results in the January 2010 report, pointing to stronger growth in 2010,’ said William Strauss, a senior economist at the Federal Reserve Bank of Chicago. ‘After more than two years of job losses, job creation increased in the first quarter of 2010, suggesting a better outlook for hiring over the next six months.’ The NABE forecast…shows fewer jobs are being shed, more are being created and more companies are making money.”

Similarly, HuffPost said that recent growth is said to be at its fastest pace in 10 months.  “American employers March added 162,000 jobs, the most in three years. Wages and salaries also are improving. Respondents reporting higher pay more than doubled to 26 percent, while those reporting a decline in wages slipped to 6 percent from 7 percent in January. The net reading for wages and salaries – planned increases minus planned cuts – was 20, the highest reading since January 2008. Higher salaries would bode well for the recovery, since consumer spending accounts for as much as 70 percent of U.S. economic activity.”

More jobs and higher wages were met by rise in bankruptcy rates last month. In fact, March 2010 marked the highest amount of personal and commercial bankruptcies since 2005. According to data compiled by the Automated Access to Court Electronic Records, there were 158,141 bankruptcies petitions filed this past month—an increase of 20 percent from March 2009.
Thus far, these figures represent the highest number of reported Chapter 7 bankruptcies since 2005, when new laws, including the “means test,” caused a dramatic reduction in bankruptcy cases.

With jobs and wages rebounding in 2010, the record filings are being attributed to the lingering housing crisis, responsible for millions of underwater mortgages, in which the homeowner owes more than the home is now worth. As has been well reported, many are simply allowing banks to foreclose on their houses and filing Chapter 7 in the process, considered the quickest and most common of all bankruptcy, especially for allowing one to “walk away,” from looming debt.  Many are using recent tax returns to sweeten the deal, paying experienced attorneys to help them begin on a path to more a healthy financial future.

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.

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Published Tuesday, April 27, 2010 @ 10:22 am

The main thrust of 2005’s Bankruptcy Reform Act (unceremoniously known as “BARF”), is a bankruptcy deterrent called the “Means Test”—a formula for determining your ability to pay back your debts. Your inability to pass this test limits your options to filing a Chapter 13 bankruptcy plan, which still discharges your unsecured debt, but takes longer to complete.

With March 2010 figures yielding the highest number of reported Chapter 7 bankruptcies since 2005 (the year the “Means Test,” caused a dramatic reduction in bankruptcy cases), the efficacy of this apparent obstacle to Chapter 7 protections may be of particular interest to many considering personal bankruptcy. Just in time for your filing, here are few fast facts about the “Means Test,” and its actual effects (or lack thereof) on your ability to file for personal bankruptcy.

Means More of a Pain than Preventative
In actuality, unless you fail the so-called “Median Test”—a precursor to the Means Test—you probably won’t have to face the Means Test at all. If your income for the six months preceding your bankruptcy filing is less than the median income for your state, you’ve officially passed the so-called “median,” and thereby bypassed the Means Test altogether. Chances are, you probably are not even subject to the means test.

Dealing in Primarily Consumer Debts
According to the Bankruptcy Code, the Means Test applies only to debtors whose debts are “primarily consumer debts.” Based on the language of the Code, these specific debts include those incurred by an individual for personal, family, or household purchases; including mortgages, but not tax liabilities.

Even if you have a means test problem, an experienced bankruptcy attorney may be able to navigate the issues and get you passing with flying colors.
The justification for the Means Test is simple: it seeks to disallow people who earn more than the median income from simply discharging their debts through Chapter 7 if they can instead afford to be in a Chapter 13 payment plan. Applying these rules to your advantage is the job of your bankruptcy lawyer. In turn, your important role is to provide all of the necessary information your lawyer needs to make the appropriate calculations, including adding up forms of income like:

• Wages, salary, fees, commission, and bonuses
• Compensation for illnesses or injuries
• Gifts and inheritances
• Retirement Income (IRA, 401(k), etc.)
• Tax Refunds
• Scholarships
• Insurance Payments
• Prizes, Awards, Gifts
• Inheritances

Where There’s a Means, There’s a Way
In addition, there are loopholes to the Means Test. For example, you can time your bankruptcy filing so that your average income is as low as possible. So, if you’ve lost your job, an attorney may suggest you delay your filing so that your income for the past six months falls below the “Median,” and thereby bypassing the Means Test.

Whether you’re interested in Chapter 7 or Chapter 13 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— 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.

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Published Sunday, April 25, 2010 @ 8:08 am

With rising foreclosure rates, escalating health care costs, recent credit card company schemes and unprecedented unemployment, most people would think they’ve seen it all in this unprecedented economic downturn.

But wait, there’s more.

In these tough financial times, scam artists are coming out of the woodwork to prey on the most hard hit by this decade’s Great Recession: persons needing the benefits of, or having already filed for, bankruptcy.

First and foremost, scam artists are in the habit of targeting debtors who are willing to do whatever it takes to avoid bankruptcy.  According to the Center for Responsible Lending, common predators prior to your bankruptcy include even legal payday lenders and debt settlement agencies. Most experts agree, even in a financial meltdown, the fastest way to go broke is through payday loans. For example, if you’re like many Americans, you may be facing the economic crisis head-on, and whether that looks like a missed mortgage payment or hovering health care costs, a payday loan might seem like an easy way to weather the storm. But the opposite is true and the reason is simple: exorbitant interest. With interest rates equaling as much as 400%, these types of loans are a recipe for disaster, leaving desperate borrowers unable to repay.

In addition, you also have to mindful of other “credit repair” scams, including debt consolidation scams, mortgage modification scams, and foreclosure prevention scams in addition to outright identity theft through stolen credit cards and identities. Keep in mind, people who are in financial fix and seeking a commensurate “quick fix”—but who have not sought the advice of a bankruptcy attorney—tend to be most vulnerable to these scams and debt payment plans.

Also, many financial experts warn against “Nigerian 419″ scams (email request to help get money from Nigeria into the United States, by accepting money into your own bank account in exchange for a share of the financial rewards) and common “Chain Letter” scams (a modern re-envisioning of a pyramid scheme).

Next, be wary of offers for a “free” credit report. In order to get these predatory reports, you are required to enter your credit card number, which opens the door to identity theft.  Even in cases where an actually credit report is sent, sometimes charges can begin appearing for things you agreed to in the reporting site’s fine print.  Remember, the only truly free reports come from the credit bureaus themselves and do not require a financial placeholder in the form of your credit card.

Unfortunately, you can find scam artists seeking your business  even after your bankruptcy has been filed and fulfilled. These scam artists are often looking to provide benefits that are more difficult to find for bankrupt people. In addition to predatory “credit rebuilding services,” post-bankruptcy scammers will often offer low-balance credit cards to debtors emerging from bankruptcy, sometimes with activation and membership fees that can push borrowers over their credit limits before they’ve even had a chance to use the new card.

To avoid the pitfalls and pratfalls of scammers, the key is knowing resources that can actually help. A qualified bankruptcy attorney can assist proud, 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. We’re here to help.

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Published Friday, April 23, 2010 @ 1:05 pm

Since the Great Recession began in 2007, small businesses across the country have been squeezed.  Exacerbated by the flagging economy, small business owners everywhere are not only facing high employee health care costs and lagging consumer and commercial spending, but also fewer credit options. And while loans have always been the lifeblood of the small business, all across our great nation, mom and pop endeavors with even the most solid credit histories face tremendous obstacles in qualifying for much-needed capital. And because small business accounts for some 65% of employment in a nation already facing off-the-charts job losses, any squeeze on small firms is a serious matter—with last year’s disconcerting lending figures illustrating just how serious—for the long haul.

As The Huffington Post reports in their recent article, “Small Business in Debt Rescued by Loyal Customers,” the small businesses situated in the tiny town of Point Lookout, on Long Island, are no exception. “Like many small towns, Point Lookout is served by family-run businesses that struggle to compete with chain stores and suppliers. In the recession this struggle becomes even harder. Point Lookout’s Merola’s grocery store found itself deeply in debt and on the brink of bankruptcy, despite being beloved by town residents.”

HuffPost refers to a recent The New York Times article featuring one such town resident named Dana Conklin, who stepped in to save the struggling grocery store. Conklin, a loyal Merola customer and Point Lookout native, “suggested a one-time fund-raising drive so that customers could help pay the bills and keep the store going until business picked up in the spring and summer. And one by one, customers trooped in with checks or mailed them in — at last notice, more than 150 of them covering almost half of the store’s $100,000 debt to the supplier.”

While these altruistic acts show the unique importance of small business in tiny hamlets like Point Lookout, NY, many small businesses haven’t been so lucky, with many “overhauling their practices to get a leg up in the recession.” For the family-run Merola grocery store, that means operating “smater and tougher — probably fewer jobs for local kids, employees paying for part of their health care, and the market aggressively seeking new niches, like, say, delivering food to people on the beach.”Regardless of changes the business itself makes, as The Huffington Post rightly points out, “customer loyalty and commitment will be an invaluable asset in the fight.”

And based on last year’s anemic lending figures and the continuing trend of evaporating loans for small business, many mom and pop endeavors are also seeking shelter through the benefits of bankruptcy. The truth remains, if you are no longer able to sustain or expand your business in your current financial situation, filing for bankruptcy may be your best bet. And, in this case, the best move a beleaguered small business owner can make is to consult an experienced bankruptcy attorney who specializes in small business cases. Skilled bankruptcy attorneys like those at The Law Offices of John T. Orcutt can get to work early, navigate any uncertain waters of bankruptcy court and work in your best interests during the duration of your small business bankruptcy. The 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.

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Published Friday, April 16, 2010 @ 5:31 pm

When President Obama signed landmark health care legislation into law, it meant unprecedented changes for Americans seeking better medical insurance and facing crushing medical debt. For many, these changes can’t come quickly enough. Even amid surging unemployment and a national housing crisis, health care expenses have quickly become the primary budget buster for millions of beleaguered Americans. According to a Harvard study recently reported in the LA Times, 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.

As these staggering numbers reveal, medical expenses are a primary reason many average people just like you end up filing for bankruptcy. While filing for bankruptcy is never an easy option, sometimes it feels like no amount of insurance appears to fully “insure” that bills will be covered in the event of an unexpected injury or illness. And, as many of you already know, medical bills are rarely small, with any preexisting condition exacerbating even the ability to get paltry coverage for these prior and future physical and mental ills.

So, in this already tough economic environment, what’s the best way to attempt to avoid mounting medical costs?

Employer Plans
Well, if you’re fortunate enough to be employed or considering a new career, your obvious first step is seeking coverage from employer sources.  Inquire about what types of health benefit plans exist for employees like you, including health subsidies, co- or partial payments, health reimbursement and savings accounts, and deductibles. While even the most basic employer plans can be expensive, and all insurance seems to have its limits, they can provide much-needed peace of mind for families facing minor illness and injury.  Also, health care reforms will yield more employee-coverage as employers receive incentives for keeping workers insured; and, at the same time, citizens will have more health care options, driving costs down and providing additional and available coverage.

Health Insurance Transition Plans
If you are currently unemployed like so many, today you currently have the option of coverage while in health insurance transition, such as a COBRA plan. While these plans are normally more costly than employer-based plans, they can provide coverage for up to 18 months after being laid off. In addition, recent health care legislation will mandate uninsured citizens to sign up for more available insurance plans, with the strategy that more buy-in will lower costs and help pay for better health care options in the future.

Parental Coverage and Preexisting Conditions
While some of these positive changes are years away, more immediate reforms mean groups long discriminated against for their age, gender, and health, can now brief a bit easier. In the coming months, parental insurance will be extended to young adults (up to age 26), preventing medical bills from taking young people to the financial brink in an especially unfriendly job market for recent grads. And, one of the more groundbreaking reforms is that insurance companies can no longer use preexisting conditions to deny individual coverage or charge higher rates based on preexisting conditions, gender, or other formerly exacerbating factors. Without preexisting conditions standing in the way, many Americans will now have access to insurance like never before, creating one less barrier to affording the very hefty medical bills that would normally lead directly to bankruptcy.

Medical Bankruptcy
However, as mentioned, some of these reforms are months, if not years away. And many insured and uninsured people need more immediate financial help. If you are suffering from illness, injury and out of control debt, and considering filing a medical-related bankruptcy, it is important to understand that medical bills are considered unsecured debt and can be discharged entirely under Chapter 7. If you are instead filing a Chapter 13 bankruptcy, your medical bills can be significantly reduced with a payment plan over time. In either situation, 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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Published Wednesday, April 14, 2010 @ 5:31 pm

As we’re all aware, this decade’s Great Recession has dealt, and continues to deal, a significant blow to the budgets of many American families, leaving millions in debt, out of work, underwater in their mortgages, and looking for any means necessary to get back on a financially-healthy course.  Now, we’re finding that tax time 2010 is also yielding it’s own unique set of challenges for some cash-strapped citizens who may have had some of their debt forgiven or settled a debt for less than the full amount in 2009.

Have you had some of your considerable student loans forgiven? Have you recently reached a debt settlement with your credit card company?  Have you had a car loan settled or the debt forgiven? Well, what might have been great news then means tough economic times this time of year as that amount is now considered income by the IRS. And if you’re not declaring bankruptcy or if your personal liabilities do not outweigh your assets, then you will have to pay taxes on the amount of debt that was forgiven.

What might this rule mean for you and your budget as tax season closes in? For example, if you had $600 of debt forgiven on a credit card balance and you’re in a 10% tax bracket; that’s an additional $60; for a 15% tax bracket, your tax obligation would increase by $90; and so on and so on. Rest assured your creditors and other debt collectors will indeed file paperwork with the IRS if they have reduced your balance by $600 or more. And so should you. But it’s up to you to include this on your personal income tax return. Play it safe and report any amount you’re forgiven.

Reporting is the easy part. Your creditors and debt collectors will provide you with a 1099-C, or a cancellation of debt form. The filing of this form proves that your creditor reported your forgiven debt and that your debt was actually settled. As such, it’s a must to include with your own tax filing. If there is any dispute about the amount reported on the form, contact the creditor or debt collector immediately to resolve the matter. The more of your debt that is settled, the more you’re taxed, so make sure the 1099-C form is accurate and ask for a corrected 1099-C form to include in your tax return if there are discrepancies.

If you own a home and had debt forgiven, the news is a bit better. Since many homeowners are just struggling to stay current with their mortgages, this tax season (and until 2012), you do not have to report debt forgiveness for a home loan as long as it amounted to less than $2 million on your principal residence. Remember, this reprieve only applies to a principal residence. So, if you had a loan modification or a short sale on a vacation home, you will have to report the debt as forgiven, and, as such, taxable.

But remember, you do not have to pay taxes on debts settled in bankruptcy. So, in these taxing times, a qualified bankruptcy attorney can help you conquer your creditors and get you back on track for a better financial future.  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.

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Published Friday, April 9, 2010 @ 7:27 am

While many economists say this decade’s Great Recession ended in the middle of 2009, millions of struggling Americans still working hard to find meaningful employment would definitely disagree…and now, the figures do too.

According to the latest U.S. Bureau of Labor Statistics employment report, more than 40% of the nation’s 14.9 million unemployed workers have been out of a job for at least 27 weeks, with an average member of this beleaguered club having been unemployed for 29.7 weeks. For those keeping count, that’s nearly seven months.

And with each passing month, it becomes more and more clear that finding new jobs isn’t getting any easier, with leading economists speculating that not only is the nearly 10% unemployment rate not likely to fall anytime soon, but also that the actual number of workers seeking full-time jobs is on par to grow. As Matthew Scott reported for AOL’s DailyFinance.com, “in the worst-case scenario, more than 26 million people could be battling each other for the few available jobs.”

A Shift in American Industry Yields No Available Jobs

The reason: a general decline in certain American industrial mainstays such as construction and manufacturing that may never return. Add that to the fact that few industries will likely be in a position to pick up the slack from these hard-hit construction and manufacturing sectors, unable to accept large numbers of new workers in the next few years, with all signs pointing to more unprecedented joblessness during that time.

More facts and figures are against us when you consider that many of the job cuts companies made during the recent economic downturn may remain permanent unless any purported recovery leads to genuine expansion in American industry—not, as Scott reports, “just the moderate 3% to 4% annual growth that has been projected through 2012.” In short, if job cuts become permanent, it could cause real upheaval in some industries, forcing many workers to retrain when they can to find work in different industries where they can.

A Shift in Part-Time to Full Time Yields Few Openings

Even when hiring does begin to pick up, the unemployed have to compete against an unexpected pool of qualified applicants: part timers. As Scott reported, “Employers have been filling full-time schedules with part-time workers until companies feel more confident about their future growth prospects. People in those part-time positions will likely be hired full-time before employers look at other workers.”

Even when part timers become full timers, Scott says, “the 2.5 million workers who are discouraged and have stopped looking for work — and as a result don’t show up in the unemployment statistics — will begin returning to the labor market. Add them to the 14.9 million unemployed already counted and the part-timers, and that’s at least 26.4 million people potentially looking for work. The nation would need double-digit gross domestic product growth to absorb that many workers.”

A Shift in Perception Yields Positive Growth in New Fields

But it’s not all bad news on the homefront. Some predict that within the next eight years, millions of job openings could appear in education, health care, government and nonprofit.

In the meantime, qualified bankruptcy attorney can assist proud, but jobless, citizens just like you to conquer your fears of losing it all. If you are in North Carolina and receiving unemployment benefits, call a bankruptcy attorney today. The upfront fees for a Chapter 13 bankruptcy can be as low as $338.00. 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.

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Published Thursday, April 8, 2010 @ 3:19 pm

While the current economic forecast is considered by economists to be less dismal than in past months, many of the same economists are predicting unemployment will stay high over the next several years—noting that recession-scarred employers are likely to stay conservative in their hiring practices even as recession-scarred citizens continue their search for a dwindling number of jobs. Recent unemployment figures show that North Carolina unemployment grew to 11.2% in the month of February.

So, what if you’re one of the unfortunate many facing job cuts or recently suffering from unemployment? Here are five easy steps to get you back on track when time is short.

Apply for unemployment benefits
If you lose your employment, now is the time to apply for unemployment benefits. While you may think it’s too late, (and it may be), put the decision in the hands of the unemployment office. And apply as soon as you can. Don’t wait.

Begin Your Budgeting
Initiate an accurate accounting of all necessary expenses, including your monthly debts and other potential income (e.g., part-time jobs, temporary employment, unemployment benefits, child support, etc.). This accurate list of expenses, debts, and capital will give you a new understanding of how much you have, how much you owe, and how much you can afford while you look for a new job.

Forge Ahead with a Forbearance
When you lose your job, it’s normally best to do all you can to “stop the bleeding,” eliminating as many deficits in your monthly budget as possible.  As a result, do what you can to get a forbearance on as many debts as possible by contacting your creditors, explaining your situation, and requesting a stop to your bills. Some may give you at least a 30 day forbearance on your debts, buying you precious time to plan your next best steps. But remember, get any forbearance in writing: it will protect you in the long run if your creditors later cry, “default.”

Drop Anything Considered “Decadent”
While you’re in the process of budgeting for your future and dealing with your current debts, it goes without saying that it is essential to “trim any fat” from your monthly expenditures. Whether it means foregoing major purchases over the holidays or simply passing on that morning latte, losing a job in this economy is easily the best way to simplify for a more financially sound fiscal future.

Sometimes You Can’t Beat Bankruptcy
If you’re a debtor who has lost their job it may be next to impossible to continue paying your debts and a 30-day reprieve ends quicker than you think. Debts mount; bills roll in; expenses remain; and all of this with little to no income infusing the process.

Every week bankruptcy attorneys continue to meet with dozens of people in financial distress due to these very employment woes.  In each case, these same unemployed people come into law offices feeling hopeless and at the end of their rope, perceiving no alternatives to their continuing fiscal problems.  Almost every time, however, it seems when these same clients leave these offices, they finally feel some sense of relief for the first time since the job recession started; they are reassured that the bankruptcy laws and the bankruptcy system offers them the possibility of a new start—at an affordable cost—and with it a financially viable and secure future. In short, bankruptcy relief ends worry and stress for many jobless Americans living on the financial brink.

If you are in North Carolina and receiving unemployment benefits, call a bankruptcy attorney today. The upfront fees for a Chapter 13 bankruptcy can be as low as $338.00. That’s not much to get rid of all of your credit card debt. For reliable bankruptcy advice that you can trust, contact The Law Firm of John T. Orcutt. And to find out more about your bankruptcy options, visit The Law Offices of John T. Orcutt’s “Things to See and Hear” information.

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Published Thursday, April 1, 2010 @ 10:48 am

Are you feeling too broke to break out of debt? For those ready to end the cycle of debt, it is important to understand that bankruptcy is not a one-size-fits-all solution, and bankruptcy filings are complex cases catering to your individual economic needs.

Bankruptcy, like so many areas of the law, is in a constant state of evolution, having been refined and redefined over the decades and through several important pieces of legislation. The first major bankruptcy legislation since the Chandler Act of 1938— Bankruptcy Reform Act of 1978—brought some of the most significant changes to the U.S. Bankruptcy Code. Within this Act, there were a host of important changes that the Act brought to the U.S. Bankruptcy Code—changes that can help you in these tough financial times:

(1) The Bankruptcy Reform Act of 1978 introduced Chapter 13 bankruptcy protection. Referred to as a wage-earner reorganization bankruptcy, this new type of bankruptcy can now stop foreclosure on your home or restructure your consumer debt into a more manageable payment plan— allowing debtors to pay back what they owe over time, often at a percentage of the cost.

(2) For the first time, this act also allowed married couples to file a joint bankruptcy. Because husband and wife file a single bankruptcy case pursuant to these rules, only one filing fee is paid to the Clerk. These days, considering the fact that the filing fee for Chapter 7 and Chapter 13 bankruptcy can be hundreds of dollars, and attorney fees ranging even higher, this results in major savings. Married couples should consider filing jointly filing when most debts are jointly held between as is often the case of credit card debts, mortgage loans and automobile loans.

(3) The legislation also introduced additional exemptions for filers, allowing individuals, for the first time, to keep most, if not all, of their property. Assets you can keep in bankruptcy can include certain retirement plans, education funds, and even real property under homestead exemptions.

(4) The act reorganized various chapters of the Bankruptcy Code. Specifically, Chapters 5, 6, & 7 were changed to Chapter 11 bankruptcy. For the first time, businesses filing for bankruptcy after the act began using Chapter 11 bankruptcy. Today, Chapter 11 bankruptcy is a form of bankruptcy reorganization available to individuals, corporations and partnerships. It has no limits on the amount of debt and is the usual choice for large businesses seeking to restructure their debts.

With the legislation Bankruptcy Reform Act of 1978 bankruptcy reforms were highly substantive and substantial, shaping the law to the needs of a public eager to get a fresh financial start. These specific efforts and exemptions are the primary reason that it is important to have a good bankruptcy attorney on your side; someone who is familiar with the process and knows precisely how the latest laws can assist you.

Well, it’s finally time to halt the hesitation, dismiss the deterrents, and suffer no more; because, in fact, the opposite can be true in the world of bankruptcy law. Days, weeks, and months wasted without speaking to a qualified bankruptcy expert can actually add up to higher bills, increased interest and greater stress—creating a costly cycle of creditor-debtor “cat-and-mouse”—that you continue to pay for—with the constant risk of losing even more.

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.

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Published Thursday, April 1, 2010 @ 10:18 am

As we’re all aware, this decade’s Great Recession has dealt, and continues to deal, a significant blow to the budgets of many American families, leaving millions in debt, underwater in their mortgages, and looking for any means necessary to get back on a financially-healthy course.  Now, tax time can  yield a long-term solution for some cash-strapped citizens.

With tax deadlines just a few weeks away, many people just like you are expecting significant refunds, with the average being several thousand dollars. Some of you may consider using this money for major purchases or down payments on a new car. Many more may even want to pay off credit cards and other debts. But if you’re in significant debt, like so many average Americans in this tough economy, if may be better to use that sudden influx of cash to ease your financial situation and erase your debt permanently through bankruptcy.

Here are a few warning signs that you should use your tax refund for the benefits of bankruptcy:

(1) If you’ve are currently out of work and have been unemployed for at least a few months (the average currently being seven months), it might be best to use that tax refund to begin a bankruptcy filing. Unemployment is the primary reason that many Americans are filing for bankruptcy; and your tax refund is just the infusion of capital you need to hire a competent bankruptcy lawyer to help you on a path to a better financial future.

(2) While many people already use their tax refunds to pay off debt, if you are currently unable to make the minimum monthly payment on your credit card or cards, or you are behind on your credit card payments, chances are you should seek professional help in erasing your consumer debt by using that money to instead file for bankruptcy. Credit card companies go after delinquent cardholders quickly in the new economy; your tax refund is the best way to do the same, seizing the opportunity to protect your assets before credit card companies can seize your assets.

(3) And speaking of creditor lawsuits: If you already find yourself embroiled in one, your tax refund-sponsored bankruptcy can be a major asset available to prevent creditors from seizing current and future property.  Once you file for bankruptcy, the benefit of an “automatic stay” kicks in, forcing creditors to cease and desist harassments and other collection actions against average Americans just like you. As such, that annual cash infusion can be just what you need to get the ball rolling on your bankruptcy…and ultimately a better life.

In short, your tax refund may look like quick cash that can be used to pay off some short-term debt; but if you’re like the average debtor, it isn’t nearly enough to garner the peace of mind of erasing all of your debt. You’re better off using that money for a long-term solution like filing for bankruptcy—a solution that will discharge debts and put you on the course to a real financial recovery—especially during these taxing times.

If you’ve been effected by the economy and are wondering how to make your next move, 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. 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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Published Thursday, April 1, 2010 @ 10:12 am

Exacerbated by the recent “Great Recession,” small business owners everywhere are not only facing lagging consumer and commercial spending and fewer credit options, but also high employee health care costs. While health benefits have been a goal for most employees seeking work, all across our great nation, mom and pop endeavors with even the most solid histories face tremendous financial obstacles in giving their employees the coverage they need. With lack of quality, low-cost health care options for employees being an exacerbating factor in many a recent businesses’ decisions to cut staff and sometimes, close shop, bankruptcy has been the only option for many a small company.

The recent health care legislation with amendments—nearly 2600 pages—leave many unsure of the implications for small businesses needing to employee coverage.

Here are a few fast facts for that can provide a health reform overview to the benefits for beleaguered business owners:

Employer’s Obligation to Provide Insurance

Generally speaking, the new health care legislation does not require an employer to provide insurance for any employee (though starting in 2014, large companies will pay a penalty if a full-time worker gets a public subsidy to buy insurance individually). Nor does it mandate that employers contribute anything toward their employees’ premiums. However, in order to take advantage of new small-business tax credits, a company must pay for at least half of the employees’ premium cost.

Penalties for Not Providing Insurance

With some exceptions, any penalties for not covering employees apply for a business with 50 or more full-time employees. These larger businesses must pay a penalty if at least one full-time employee requires a public subsidy for insurance. When an employee must find his own coverage because the business does not provide any options, the penalty is $2,000 for each full-time employee in the company, albeit with a 30-employee deduction. When the business does offer coverage but it is considered under the legislation to be “unaffordable,” the penalty is $3,000 for every employee taking a subsidy. This specific penalty is capped at the total penalty the company would pay if it did not offer insurance at all.

Small-Business Tax Credits

From 2010 through 2013 a smaller business will receive a tax credit to offset some 35 percent of its insurance costs, provided the business contributes at least half of their employees’ premiums. At the point, the business begins buying insurance through a health insurance exchange, the credit increases to 50 percent.

Health Insurance Exchanges

So, what exactly are health insurance exchanges? In addition to establishing an exchange for individuals to purchase insurance in 2014, states must simultaneously set up a so-called “small-business health options program” by which small employers can purchase insurance. Plans offered on the exchange will have to be standardized for easy comparison and offer minimum levels of benefits established by the bill. Starting in 2017, a state can open exchanges to large employers (101+ employees).

Pre-existing Conditions

Beginning in 2014, people with preexisting conditions will be able to purchase insurance on an exchange. In the meantime, each state will have to create a new, temporary program, such as a high-risk pool, to provide coverage to people with pre-existing conditions.

The truth remains, if you are no longer able to sustain or expand your business in your current financial situation, filing for bankruptcy may be your best bet. And, in this case, the best move a beleaguered small business owner can make is to consult an experienced bankruptcy attorney who specializes in small business cases. Skilled bankruptcy attorneys like those at The Law Offices of John T. Orcutt can get to work early, navigate any uncertain waters of bankruptcy court and work in your best interests during the duration of your small business bankruptcy. The 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.

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Published Wednesday, March 31, 2010 @ 7:52 am

If the NHL’s Phoenix Coyotes can bounce back from bankruptcy, anyone can. Well, any sports franchise, that is.

After more than a year of backdoor dealings, personal vendettas and one of the most back-and-forth bankruptcy fiascoes to burden a modern major sports franchise, the Phoenix Coyotes have made the playoffs for the first time since 2002.

Managerially broken and in the financial penalty box for the majority of its existence in Arizona, few gave the desert-based ice hockey team much of a chance to rebound into relevancy, especially after the way its bankruptcy proceedings transpired. Most believed the team would eventually fold or be moved to a more hockey-friendly market.

The hassles all started after the team’s owner tried to enter the team into bankruptcy in an attempt to create the ideal sales position for Canadian billionaire, Jim Balsillie, who is intent on having a third team in Ontario. It became quite obvious that the two were cohorts in the deal; one wanted to rid himself of a financial boat anchor and the other wanted to set sail back east. However, league rules state that a team’s ownership entity cannot file bankruptcy without board approval. So league officials stepped into the bankruptcy proceedings. That’s when things became a real mess.

Prior to the filing, the team was struggling with poor attendance and even worse performance. To put it mildly, it didn’t look good for the NHL’s most risky large-market experiment. Add to that the NHL Board of Commissioner’s general dislike for Balsillie and the Coyotes looked doomed.

After a number of court battles, the league itself won the bid of ownership out of bankruptcy court just before the start of this season. The league installed a new head coach after one-time part owner and coach, Wayne Gretzky, did not have interest in returning to the bench.

Needless to say, the puck has slid in favor of professional hockey’s desert dogs. New coach Dave Tippitt has taken one of the league’s smallest payrolls with little offensive prowess and created a tough-minded testament to the importance of a stout defense. Last year’s young and generally inexperienced shifts were bolstered by solid mid-season veteran pick-ups and a commitment to not letting the other team establish an offensive rhythm.

Now with a dense crowd of loyal fans eager to part with their recession-weakened paychecks howling for victory, the Phoenix Coyotes are more than just another feel good sports story—they’re a darn good hockey club.

Tony Gallagher, sports writer for The Province, a newspaper in British Columbia, believes Tippitt should be considered for league coaching awards, writing that Tippitt’s work ” … should not only earn him coach-of-the-year honours, but may well go down as one of the best single-year coaching jobs of all time.”

However, Tippitt is quick to wave off any real differences between he and the Great One, who captained the team during its formative years. He simply believes the change in focus from young and aggressive to experienced and stout behind the blue line is what’s making the difference.

“This notion that I’m great and Wayne isn’t a good coach is wrong,” says Tippett. “They were just too young last year.”

Whatever the reason for Gretzky’s team not winning, it was probably a good thing he didn’t return. Sometimes, all it takes to return a team to winning is a complete reset. And just like in the financial personal lives of millions of Americans, it seems bankruptcy was the ideal way to start over.

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Published Sunday, March 28, 2010 @ 2:30 pm

For all the political uncertainties about health care reform, at least one thing seems clear: when President Obama signed landmark health care legislation into law this week, it marked real changes for Americans facing medical debt.

And, as such, these changes couldn’t come at a better time. Even amid surging unemployment and mortgages underwater, health care expenses have become the primary financial breaking point for millions of Americans. According to a Harvard study recently reported in the LA Times, medical bills played a role in 62% of personal bankruptcies filed in 2007,  up 7% from 2001. Most striking, a vast majority (78%) of these Chapter 7 filers actually had health insurance.

As a result, the Obama Administration is banking on a plan that extends health insurance to 32 million uninsured Americans in order to protect more people from becoming medically bankrupt in several ways:

First, parts of the plan will end co-pays for preventative health services like physicals or mammograms, making it easier and less expensive to ward off injury and illness in the long-run.

Second, other aspects of the plan prohibit lifetime and annual restrictions on benefits, providing unlimited, or, at least, less limited access to cheaper health care when and where you need it.

Third, large businesses are required to insure their employees or face possible fines until they do so.  This added employer coverage may protect many Americans from the perils of being uninsured, including unexpected and acute maladies that can have lasting physical effects and financially devastating consequences for employees and the businesses that rely on them.

Fourth, the legislation will mandate that all Americans citizens have health insurance or they will be forced to pay penalty fees. While this comes as an economic imposition to some, the requirement means that not only will the insured help pay for the new plan, keeping the reforms “budget-neutral” in an already damaged economy, but also this type of comprehensive buy-in can also keep costs down for all Americans—and help keep bankruptcy at bay.

Fifth, children are no longer dropped from their parents’ plans at age 19 or at the end of college. These parental health benefits are now extended until the child’s 27^th birthday; covering even more young adults and preventing medical bills from taking young people to the financial brink in an especially unfriendly job market for recent grads.

Finally, with these reforms, insurance companies can no longer use preexisting conditions to deny individual coverage or charge higher rates based on preexisting conditions, gender, or other formerly exacerbating factors.

Even though many of these reforms will take years to roll out, fortunately, the latter two reforms will go into effect this year.

And while many Republicans argue that this legislation will mean higher taxes for the wealthiest Americans, the plan is being touted as a framework for universal health care in America, giving all citizens a fair shot at avoiding insolvency due to medical matters.

Unfortunately, disease, illness and other health problems can occur suddenly and may not wait for reforms to go into effect. Regardless, health insurance is no guarantee that injuries or illness won’t turn into a bracing financial burden.

If you are suffering from illness, injury and out of control debt, and considering filing a medical-related bankruptcy, it is important to understand that medical bills are considered unsecured debt and can be discharged entirely under Chapter 7 and Chapter 13. 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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Published Monday, March 15, 2010 @ 6:27 pm

Exacerbated by the recent “Great Recession,” small business owners everywhere are not only facing high employee health care costs and lagging consumer and commercial spending, but also fewer credit options. While loans have always been the lifeblood of the small business, all across our great nation, mom and pop endeavors with even the most solid credit histories face tremendous obstacles in qualifying for much-needed capital.

In a recent McClatchy article entitled “Too small to succeed? Firms still can’t get loans they need,” small businees owners—from California to the Carolinas—share their personal struggles behind the credit crunch.

“Jim Collins, co-owner with his wife Arlene of Quantum Energy Solutions, has been in business in Sacramento, California, since 1974. He has a $50,000 line of credit, backed by the U.S. Small Business Administration, through US Bank, owned by US Bancorp. He has a solid credit history and $30,000 in untapped credit. Yet when Collins approached the bank about borrowing at least $500,000 to expand his 12-employee firm — which retrofits buildings with energy efficient technologies — he was rebuffed, told that his company lacks resources and collateral. US Bancorp declined comment. Collins, 70, can’t get the money he needs to hire five additional workers and ramp up marketing, even as the Obama administration promotes the “green jobs” of the future. ‘The credit crunch is still there. It really impedes our ability to grow,” he said. “I’d put five more people to work tomorrow.’”

Because small business accounts for some 65% of employment in a nation already facing off-the-charts job losses, any squeeze on small firms is a serious matter—with last year’s disconcerting lending figures illustrating just how serious—for the long haul.

According to the Federal Deposit Insurance Corp, the United States economy made 7.4 percent fewer loans in 2009, the largest lending drop since 1942 and marking an estimated $1.5 trillion lending deficit. As McClatchy reports, “corporations are issuing bonds again, and large companies have access to bank loans, but it’s still an uphill climb for the little guy. ‘There’s a big gap in access to credit for small firms now, and it’s a huge problem,’ Karen Mills, the head of the Small Business Administration, told McClatchy. ‘We have a sense that the banks are not back to lending the way that they need to be, going forward.’”

Another victim of the credit crunch—this time on the East Coast—is North Carolina’s Bob Kingery, co-founder of Southern Energy Management in Morrisville, NC. While Kingery’s firm normally makes a good living installing solar photovoltaic panels for businesses throughout the Southeast, “in the past two years, about 15 projects have been scratched or delayed indefinitely as customers scramble for financing options. The tight credit market has tied up about $30 million in business, Kingery calculates.”

Based on last year’s anemic lending figures and the continuing trend of evaporating loans for small business, many mom and pop endeavors are seeking shelter through the benefits of bankruptcy.

The truth remains, if you are no longer able to sustain or expand your business in your current financial situation, filing for bankruptcy may be your best bet. And, in this case, the best move a beleaguered small business owner can make is to consult an experienced bankruptcy attorney who specializes in small business cases. Skilled bankruptcy attorneys like those at The Law Offices of John T. Orcutt can get to work early, navigate any uncertain waters of bankruptcy court and work in your best interests during the duration of your small business bankruptcy. The 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.

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Published Thursday, March 11, 2010 @ 2:40 pm

Currently unemployed and getting unemployment benefits?
Then, this message is for you.

In this horrible economy, there is no guarantee that you will get another job or…even if you do…when.

And…those life-saving unemployment benefits? They are going to run out and when they do…that’s it.

Imagine the worse…no job…and no more unemployment benefits.

What would (will) you do? Will you look back and wish you had saved some of these benefits for your “rainy day”?

When you are sitting there with no job and no more unemployment benefits…when you are not able to put food on your table or pay your rent or mortgage…or put gas in the car…will you look back and wish you had done something more to make those unemployment benefits stretch a lot further?

Will you look back and kick yourself?

Will you look back and wonder what you were thinking…now that you can’t even pay your essential monthly bills…when you were using those precious unemployment benefits to pay on non-essential items like credit cards and medical bills…especially when you find out that there was something huge you could have done…when you find out that…in these dire straits…in this horrible economy…with no end in sight…you could have filed bankruptcy and gotten rid of all those debts?

Without doubt…you are a good person and good people do their best to pay all their bills. That’s what makes you honest.

But…when it comes down to having made a choose to pay on credit cards and medical bills, rather than having made a choice to save up some of that money to keep a roof over your family…and you ask yourself…in retrospect…which was more important…your creditors or your family…what will be your answer?

Your family of course.

Well…you already lost one or more jobs.

What makes you so sure that you will get another job…or get another soon enough to avert disaster?

And…even if you do get another job…maybe even one as good as you used to have…what says you won’t lose that job too?

The fact is that this economy is the worst that any of us have ever seen and…for as much as we all want to believe otherwise…there is no end in sight.

Quite the contrary! We have all dug ourselves a huge hole and it could well be 10 years before we dig out.

You have a chance here…if you will grab it…to look back and know that you make the tough choice and filed bankruptcy and gotten rid of all those debts…and…more importantly…put yourself in a position to keep some of those precious unemployment benefits in your pocket as a hedge against running out of money before, if and when things pick back up for you and your family.

Think about it. Are you on unemployment? Are you paying out any of this precious…one-time-only…money on credit card debt, medical bills and other “unsecured” debts?

If things don’t work out for you…if things don’t pick up and quickly…won’t you need this money to…make sure that your family survives…no matter how bad things get?

Filing bankruptcy NOW…before your unemployment benefits run out…may be the smartest thing…looking back…you ever did. It could well be the difference between your family surviving…when other families do not.

This is your chance to invest in your future…by making sure you don’t keep dragging along with you debts you know are sucking up money that you may well need to take care of your family.

Do you really want to chance it…by not filing bankruptcy?

Wouldn’t it at least make sense to find out how this whole bankruptcy thing works and what all it could do for you…to take away the guesswork and find out for sure from a lawfirm that does this stuff for a living 24/7/365?

You certainly don’t want to be looking back later, wishing you had taken the time to find out more and thinking “That was dumb.”…or worse.

And the best thing is…you can find out all about bankruptcy and what it can do for your family…for FREE…and at NO-RISK.

Find out answers & options for FREE!

Why? Because we offer a totally FREE ANALYSIS of your entire financial situation.

This means you can come in, sit down, get all the answers, and find out all your options (bankruptcy and othewise)…and do it for FREE. GUARANTEED!

Our 10 EXCLUSIVE GUARANTEES!

And…that’s not all. To make you feel more willing and less hesitant to come see us…know that we offer 10 different GUARANTEES. We just want you to get this valuable information…and to know that you can do so…AT ABSOLUTELY NO-RISK.

Want to find out about our 10 GUARANTEES? (Click Here)

If you know us at all, you know that we are not high-pressure. That’s just not who we are or how we work. The truth is…we don’t need to “sell you” on anything. If you need it…the help and relief the bankruptcy laws provide sells itself.

Trust me on this…when I say “You will be amazed when you find out…not what you have always heard but…how bankruptcy really works”…we’re not kidding and we’re not exaggerating.

The truth is the Bankruptcy Laws are the biggest secret there is…right in plain view.

You see, what happens is that you have heard so much bad about bankruptcy that…if you are like most people…you turn off at the mere mention or thought of filing bankruptcy.

But…even though you don’t know me…do me one favor. Don’t believe it. Don’t believe what you have heard. It does not work at all the way you have been told.

There is a good reason why 1.5 million families filed for bankruptcy last year…and it wasn’t because bankruptcy was so bad. Think about it…Maybe it was because…in reality…bankruptcy was so GOOD.

Maybe filing bankruptcy is right for you…maybe not.

But with a totally FREE ANALYSIS available to you…you have nothing to lose.

So, don’t wait. Call today!

Better yet, call now because every dollar of your hard earned unemployment benefits you spend on bills and debts you could get rid of…is…arguably…a dollar wasted…and a dollar wasted is a dollar no longer there to take care of your family.

During normal business hours…call toll free 1-800-899-1414

The Law Offices of John T. Orcutt
Offices in Raleigh – Durham – Fayetteville – Wilson

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Published Sunday, March 7, 2010 @ 8:10 am

Before you begin the bankruptcy process, it’s important to understand a few helpful hints to make it a more painless process:

(1) Remember: You are not Alone.
Maybe you think of bankruptcy as something for “other people.” But the days of bankruptcy as a means of financial respite for the perpetually poor are no more: everyone from the solidly middle class to formerly wealthy Americans are being forced into bankruptcy more than ever before. Because of steady declines in real estate values, and rises in health care costs, credit card interest and unemployment in all sectors, more than 8% of bankruptcy filings in 2009 came from people who made over $60,000. So, begin by dispensing with any preconceived ideas of bankruptcy in lieu of a successful strategy for setting off on a sound path to personal financial freedom.

(2) Personal Bankruptcy Puts You in Control
While people who drown in debt remain at the mercy of their creditors, bankruptcy can actually be a better way to take control of your financial future. If you file for Chapter 13 bankruptcy, you play an integral role in determining how you’ll pay off your debt, including a trusty payment plan that works for you. Even Chapter 7 bankruptcy can buy precious time to halt creditor harassment, save money and plan your next best fiscal moves.

(3) Bankruptcy Can Be a Key to Better Credit
As counter-intuitive as it may seem, bankruptcy could potentially improve your credit scores in the long run. Obviously, the immediate effect of bankruptcy is a lowering of your credit scores. However, filing can be the better option for your long-term credit than enduring late payments on credit cards for years in an attempt to stave off what is more than likely inevitable: default. Because some 35% of your credit score is based on your payment past, it is vital to your financial future to avoid missed payments and establish new credit as soon, and as much, as possible. Even though bankruptcy stays on your credit report for 7 to 10 years, it does not necessarily follow that your credit score will be low for that entire time. If you take steps to rebuild after your bankruptcy, your FICO score can quickly be restored to where it was prior to your filing.

(4) With Bankruptcy, Timing is, in Fact, Everything
When you’re facing insolvency, timing can be especially important. And that’s also the reason it’s the best time to talk to a qualified bankruptcy lawyer. But just because you’ve consulted a lawyer does not necessary mean that bankruptcy is the next step. While it’s hard to believe, it is sometimes your best move to hold off on your filing until the worst of your financial situation is over. For example, if you are facing impending medical costs, you may want to wait to file until you’ve recovered fully before filing for bankruptcy, simply to avoid accruing more medical expenses during the process. In the alternative, some situations demand that you file sooner than later, such as if your car’s been repossessed and you need it back immediately. As a result, consulting a bankruptcy expert is your best bet to making your bankruptcy work for you.

(5) With Bankruptcy, You Never Have to Go it on Your Own
Bankruptcy isn’t a cakewalk, but you never have to go it alone. In fact, knowing a qualified bankruptcy attorney can also 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. 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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Published Saturday, March 6, 2010 @ 1:05 pm

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 held steady at 10 percent—the qualification dates for existing tiers of unemployment benefits were extended for an additional two months.

But that two-month bump in benefits will expire at the end of February 2010, leaving millions of average Americans bewildered and without any money coming in their coffers.  Now, 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 be ineligible to get more by June 2010.

In fact, the National Employment Law Project (NELP) released a new report last week about this very long-term unemployment crisis, revealing that:

“1.2 million jobless workers will become ineligible for federal unemployment benefits in March unless Congress extends the unemployment safety net programs from the American Recovery and Reinvestment Act (ARRA). By June, this number will swell to nearly 5 million unemployed workers nationally who will be left without any jobless benefits….Currently, 5.6 million people are accessing one of the federal extensions (34-53 weeks of Emergency Unemployment Compensation; 13-20 weeks of Extended Benefits, a program normally funded 50 percent by the states).”

Of the nearly 1.2 million workers facing a cut off of benefits in March alone: “380,000 workers will exhaust their 26 weeks of state benefits without accessing the temporary EUC extension program or the permanent federal program of Extended Benefits. Another 814,000 workers will not be eligible to continue receiving EUC past their current tier of benefits.”

“’Congress must swiftly act to maintain the lifeline for millions of jobless Americans caught in the
undertow of record long-term unemployment in this ongoing downturn,’ said Christine Owens, Executive Director of the National Employment Law Project. ‘At the end of last year, Congress wisely agreed that our hardest hit workers and our economy were not yet out of the woods, and reauthorized the jobless benefits and health care subsidies from the ARRA. It is critical for Congress to renew these unemployment provisions through the end of the year before its Presidents Day recess for the millions workers again facing the end of the line—and to avoid missing the boat on this timely and effective economic jolt.’”

Under intense pressure from the public, Congress is currently considering a qualifying unemployment benefits extension period of another three months.  But for many, remaining jobless, even with an added lineup of benefits, is no consolation. As one in 10 Americans remain unable to find work and President Obama has established job creation as his “number one focus” this year, according to some economists, the legislative proposals being seriously discussed in Washington don’t even come close to addressing the problem.

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 your 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.

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Published Friday, March 5, 2010 @ 4:30 pm

Life after bankruptcy is beautiful thing. Your stress levels go down and you become more confident with money. Now that things are back on track, maybe it is time to take a whole-life approach to changing the way you live. For some, it’s a new, but smaller, home; a more economical car; or a strict monthly budget. For others, re-starting your life may include relocating. Boy, that sounds like a big decision, huh?

So if you have a new financial outlook on life and think it’s time to move, where would you go? Thankfully, our friends at Forbes.com have researched a list of the best cities in America for “getting ahead.” Their research was based primarily on areas that have good job growth and income growth and a relatively affordable cost of living. Call U-Haul, because here are some of your options, in no particular order:

Like Winter? Well, if so, point the GPS toward Delaware County, Ohio. The home county of Columbus has a three-year income growth of 11 percent and is the fastest growing county of the state. Forbes tells us it has a wide variety of jobs and a number of grounded, family-oriented neighborhoods that help prop-up a stable workforce.

If you don’t mind the rooting for the Texans over the Cowboys, Fort Bend County, Texas, outside of Houston, realized 10 percent job growth between 2007 and 2008 and added just under 6,000 jobs since the middle of 2007. A large portion of employees can be found working in energy companies but it’s diverse enough for people to find opportunity in education and hospitality. Many members of Forbes’ 400 Best Big Companies reside in Fort Bend County.

Another relocation is near Frank Sinatra’s kind of town. No, not Vegas. Chicago. Outside of where the wind blows is Kendall County, an area that experienced a 90 percent population increase from 2000 to 2008 and as a result, a seven percent jump in income. You can find another attractive option near Chicago in Will County, Ill., which in 2007 and 2008 saw its residents’ income climb by seven percent.

A bit north, you can settle in balmy Carver County, Minnesota where income jumped by five percent for the same two years. Carver is close to Minneapolis, one of the Twin Cities along with St. Paul which are consistently present in many “Best Places to Live” lists.

If the Midwest or Lone Star State do not appeal to you, head just north of the Triangle to Hanover County in Virginia, an area which saw its per capita income also grow by five percent.

Drive by an ever-expanding government, other regions in Virginia that made the list include Loudon and Alexandria Counties. However, even with the income growth, these areas are very expensive in which to live. Thus, their presence on the list is somewhat questionable because for the most part, to get ahead in Alexandria County, you need to already be ahead.

Relocating can be an expensive endeavor. If you are lucky enough to have a new employer cover some costs, then terrific, you are already on your way. The key is to start planning early and do not rush. After all, it’s not like the real estate deals are going anywhere.

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Published Wednesday, March 3, 2010 @ 7:25 pm

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, rising costs 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 one of this ongoing series, we meet GM autoworker Michael Hanley.

Hanley, who recently shared his plight with The Huffington Post’s Sharon Cohen, is known to commute 530 miles in a day, from his home in the rolling hills of Wisconsin to his job in Kansas—all to keep a paycheck rolling in. As Cohen reminds us, “It’s one heck of a haul:” more than 1,000 miles roundtrip, 16-plus hours of driving, every week. “I like to say I gave up an eight-minute commute for an eight-hour commute,” he tells Cohen wearily.

Hanley’s commute is representative of not only one man’s tough choices in a tougher job market, it reveals the near-death of the American auto industry as a whole.

After his GM plant shut down a little over a year ago, Hanley could’ve chosen to stay close to home, and his family and search for an autoworker’s salary ($28 an hour) in his Wisconsin county “where more than 40 percent of its manufacturing jobs disappeared from 2006 to 2009.”  Instead the 23-year veteran of the auto industry chose to hang on to a better GM paycheck and his family’s health insurance, following the job to Fairfax, Kansas.

Even before his factory went idle, Hanley took steps to make himself a stronger candidate in a shrinking employment market, getting the college credits he needed to complete his accounting degree. But when Kansas came calling, along with the health insurance to keep his wife on chemotherapy, Hanley “didn’t hesitate. Auto work these days is like playing musical chairs. You grab an opening where you can.”

“There’s no way I could possibly go through one treatment without him having insurance,” Hanley’s wife told HuffPost.

Balancing his family’s financial security at his coveted job and the lonely existence of being away from home is hopefully a temporary sacrifice for Hanley. He plans to commute for an additional 18 months, at which point he turns 50 and hopes there will be a retirement package waiting.

“There are those people who worked there who have lost something they thought would be around forever and provided them with a real good lifestyle,” he adds.

For Hanley, it’s all about riding out his own Great Recession.

If you’ve been driven out of your job and are in serious 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.

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Published Wednesday, March 3, 2010 @ 12:24 pm

Are you angry at banks that are supposedly too big to fail? But you haven’t withdrawn your money because you think your account is too small to matter?

Well, one media matriarch has some alternative advice. 

Started by Arianna Huffington, The Huffington Post is an American news website and aggregator for a host of blogs, columns, stories and moderated comments. The site, through its founder, is now taking a stand against America’s oversized financial institutions—from JP Morgan to Bank of America—and urging you to do the same.

HuffPost’s “Move Your Money” campaign urges you—the bank customer—to withdraw your money out of the big banks and into smaller community-oriented ones.  The reason is simple: a post-recessionary payback of another color. Huffington argues that following their bailout these same big banks have done nothing to help small business or to drive lending to the average American. As a result, the economy can’t thrive nor begin producing the much-needed jobs so many taxpayers—who footed the bill for said bailout—so desperately need. And she’s hoping we’re not going to take it anymore.

And she’s not alone in her gripes with the banking industry.

Robert Johnson of the progressive think tank the Roosevelt Institute helped craft the “Move Your Money” campaign. “All of us collectively do have money and when we move our money, we’re voting with a different currency, and one that businesses pay attention to,” he said to CBS News’s Jim Axelrod.

By entering your zip code into the Move Your Money website, a list of nearby small banks pops up all of which have received a rating of ‘B” or better by independent reviewers.

According to the Independent Community Bankers of America, community banks “focus attention on the needs of local families, businesses, and farmers” and “channel most of their loans to the neighborhoods where their depositors live and work, helping to keep local communities vibrant and growing.”

While many of these smaller banks provide a more personal touch to your banking experience, they too have fallen victim to this decade’s Great Recession, with hundreds closing in the past several years. As such, any movement of money should come with some research that your new, smaller bank has some staying power.

Move Your Money recommends that you stop in and see what they’re about. Talk to an employee to see what services they offer and how they treat you. For some tips and questions to ask visit Solari or see this article from the Dallas Morning News. You can also use FindABetterBank to calculate annual fees based on how you bank (note: their list of banks is incomplete).

If you truly are without any money to move—and your assets, in the bank or otherwise, are less than your debts—your gripe may be with your creditors, which, in many cases, are the same bailed-out banks targeted in the Move Your Money campaign.

Well, you too have the power to take back your money.

In fact, knowing a qualified bankruptcy attorney can help you conquer these creditors and wipe away your debts, 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.

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Published Tuesday, March 2, 2010 @ 11:52 am

As we’re all aware, this decade’s Great Recession has dealt, and continues to deal, a significant blow to the budgets of many American families, leaving millions in debt, underwater in their mortgages, and looking for any means necessary to get back on a financially-healthy course.  Now, we’re finding that tax time is also yielding it’s own set of challenges for some cash-strapped citizens.

In his recent New York Times article, “Paying the Price for Survival Tactics,” Charles Delafuente reports on how the I.R.S. treats many kinds of written-off debts, some distressed home sales, and many emergency withdrawals from retirement accounts as taxable income.

Debt Forgiven By A Lender
In his timely piece, Delafuente introduces the concept of “phantom income:” an amount a lender forgives but for which the debtor still owes tax. In your case, this taxable amount becomes essentially the difference between what the lender would have received from you and what it will receive under your new agreement. As Delafuente explains, “These taxes are imposed even if only the interest rate, not the amount of principal, is reduced. That happens, for example, to consumers who renegotiate credit card debt. A lender is supposed to issue a 1099-C form reporting forgiven debt, but that doesn’t always happen if the principal is not reduced.”

As is normally true in the tax world, there are exceptions to the forgiven-debt rule. Keep in mind, forgiven debt is not taxable income if it is discharged by bankruptcy, or if you are considered insolvent—whereby your liabilities exceed the fair market value of your assets—when the debt is forgiven.

Mortgage Debt
While recent bailout measures enacted to help homeowners generally won’t trigger the forgiven-debt tax on a principal home, “foreclosures, short sales and other loss-of-home scenarios could bring on capital gains tax.” For example, if your home is worth significantly more than a mortgage and is repossessed and sold by the lender, you are entitled to the difference. As Delafuente explains, “The difference is a taxable profit, which will cause a capital gain. Fortunately for the masses, the first $500,000 on gains on a main home for couples ($250,000 for single taxpayers) may be covered by a tax exclusion. Further, nonrecourse mortgages, in which the lender can’t touch any assets other than the property, generally don’t cause such a gain.”

Retirement Withdrawals
Aside from your mortgage, if you withdraw money prematurely from their retirement accounts because of a job loss or a reduction in hours, you will also face extra taxes.  Holders of traditional I.R.A.’s and I.R.A. rollover accounts must pay 10 percent of any amount withdrawn before they reach 59 1/2 as a penalty on top of the traditional taxes on money taken out, which must be paid regardless of your age.

If you have a Roth I.R.A., you’ll face different rules. Your contributions—but not the account earnings—can be withdrawn without penalty after five years.

If you have an employer-sponsored plan, like 401(k)s and 403(b)s, you face yet another set of rules. For you, withdrawals are penalty-free if you left the employer that set up your plan after you turned 55. However, money rolled over to an I.R.A. from a former employer’s plan is subject to the 59 1/2-age rule.

Most 401(k) and 403(b) plans do not allow current employees to make withdrawals; instead they often have loan provisions. But another tax nightmare occurs if you have an outstanding loan and lose your job. In that case, you must repay the loan quickly or have the balance treated as a withdrawal, making it subject to tax and to the 10 percent penalty if you’re under 55, unless an equal-payment plan is used.

But remember, before borrowing from your retirement accounts, one of the best debt forgiveness plans comes from a personal bankruptcy. In these taxing times, a qualified bankruptcy attorney can help you conquer your fears before 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.

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Published Tuesday, March 2, 2010 @ 10:09 am

Developed to slow the rate of Chapter 7 bankruptcy filings, the Means Test helps determine whether or not someone qualifies to file Chapter 7, and in a Chapter 13 bankruptcy, to what extent you might be able to pay back some of your creditors. It’s become a very frustrating part of the bankruptcy process because it implies, “Hey, you just don’t want to pay your bills.”  Not only that, it also subjects filers to additional frustration, confusion and widens the gap between citizens and the law in place to protect them.

However, there are ways to overcome the restrictions and complications of the Means Test.  Of course, this is where the insight of an experienced bankruptcy attorney is especially beneficial, as it can take some time and expert handling.

Called “special circumstances,” a judge may grant you permission to file Chapter 7 in spite of failing the Means Test. (Failing, in this context, indicates that you have some ability to pay and that you would have to file under Chapter 13 and pay your monthly disposable income to your unsecured creditors through a Chapter 13 plan.)  If you are a member of the Armed Forces and a call to duty dramatically alters your income and there is no reasonable alternative money source, the results of the Means Test can be rendered non-applicable.

You can also be granted a special circumstance for a sudden, serious illness that will take you out of your job or further damage the economic viability of your family.  Job loss, in some cases, can lead to ability to file under the “special circumstance” exception to means test applicability.  However, the job loss would have to be sudden, proven legitimate (you can’t be found to have provoked it) and the income from that particular job itself would most likely have to had been the reason you failed the test.

There are other ways the results of the Means Test can be put aside. However, it is very important for you to understand that these are actual, legal strategies, not encouraged methods by which to circumvent the court. That’s called fraud, and you’ll be nailed for it.

The means test uses an average of your income over the six months prior to filing your case.  That being said, you have the ability to time your bankruptcy filing according to a period in time when your income will be at its lowest. If you know bankruptcy is on the horizon but can sustain a few months without employment, you can file down the road to ensure your last six months of income fall below the state median, which is a major factor in the Means Test.

Additionally, expert bankruptcy attorneys can advise you on a number of ways that you can reduce the amount you will have to pay through a Chapter 13 plan.  This is what bankruptcy professionals call “means test planning.”  Need health insurance? Purchasing a plan for you and your family before your bankruptcy is a good way to add expenses and reduce income. The code allows you to deduct what you pay for health insurance. The same applies for disability insurance.  Been wanting to put away more for retirement?  You can increase your 401(k) or 403(b) contributions through your employer and take the contributions as a deduction against your six-month average income in the means test.

You may not realize it, and in fact, they may be a reason for your having to file, but your rising mortgage and car payment may contribute to your passing the means test. Or, if you are expecting an increase in any of the interest rates on those loans, considering waiting until they kick-in to file.

The term “household” does not mean family. It means, quite literally, how many your “house holds.”  This means relatives, children who have moved back in after the backpacking trip around Europe and even that weird guy that rents the storage loft in the garage. And since the reform act in 2005 bases the median incomes for the means test on “household” and not family, the size of your household can have a serious impact in your favor.  The more people who live in a house, the higher the threshold of income required to qualify for the means test.

It can be scary thing, the means test. It literally changed the benefits of bankruptcy for thousands and thousands of Americans. If you are worried about it or just have additional questions, don’t hesitate to contact us.  We have helped over 40,000 North Carolina families through the process of bankruptcy and our attorneys know the means test inside and out.  Call The Law Offices of John T. Orcutt to schedule your FREE consultation at 1-800-899-1414.

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Published Monday, March 1, 2010 @ 7:27 am

No one needs to tell you times are tough.

Too often, Americans just like you, already suffering under the intense strain of rising mortgage costs, consistent credit card debt, mounting medical bills, employment woes, and other blights on your bank accounts, are also looking for ways to further trim shrinking household budgets.

And since the lingering financial downturn has affected all socio-economic sectors of the country—even the upper-middle class and wealthiest Americans—dealing with sudden bills or a loss of income can be even more difficult for people used to a certain lifestyle.

So, whether you’re facing extended unemployment, are bankruptcy bound or just trying to salvage your savings, taking a long, hard look at your family’s budget can make a big difference. And even if you haven’t lost your job, in this uncertain economic era it’s important to explore the financial cutbacks you could make in case you were suddenly land unexpectedly aid off.

The good news is, by cutting a few corners, small changes can save you hundreds per month.

Television.
I know, I know. TV is tough to cut. Especially if you rationalize that by watching television you’re staying home and saving money you would normally spend finding entertainment elsewhere. But, if you currently get a lot of channels, you could conceivably drop to a package with fewer bells and whistles (possibly dropping those 50 plus channels that you didn’t watch anyway?). And if you already have a relatively small television setup, consider contacting your provider for negotiations. You’d be amazed at what a satellite or cable company will offer in terms of lower rates when consumers like you threaten to quit them.

Phone and Internet.
Again, negotiating with your provider (or trying to) is always an option. Plus, downgrading your service or eliminating a landline could be all it takes to save you dough for other basic essentials.

Subscriptions.
You can stay informed and save money. If you keep your Internet, why spend more on newspapers, magazines or a book of the month club? The good news is that most reading materials are, at least for now, available for free online.

Fast Food.
That morning latte, breakfast burrito or fast food lunch may seem inexpensive once a day, but those days quickly add up and can become the fastest way to deplete a monthly budget. Consider taking a brown bag and a brewed coffee with you on the go and enjoy the benefits of a better food choices and a fuller wallet.

Groceries.
Not only cut out eating out, but take in the grocery stores many comparable generic brand. Many store-brands are actually produced at the same factories as the name brands—and come at a significant discount.

Clothing.
As a lot of professionals know, dry cleaning can be incredibly expensive. Try to avoid it. But just because your clothes have a little more wear and tear doesn’t meant you can run out and shop for new ones. Resist the prevalent sales permeating the malls in this tough economy—just because it’s a sale doesn’t mean its less expensive than shopping at one.

Not only does planning ahead like this give you an idea of what steps you’ll need to take in case of a financial emergency, it also provides ways to start saving money quickly.

Yet, if cutting corners just isn’t enough to keep you afloat, knowing a qualified bankruptcy attorney can also 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.  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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Published Friday, February 26, 2010 @ 4:19 pm

Everyone—from the halls of Congress to the many channels of media—is paying a ton of attention to those Americans who have lost their homes in the seemingly endless mortgage meltdown. Virtually ignored have been the millions who continue to pay their mortgage every month, even when they really can’t afford to. As a result, most homeowners are losing big on what used to be their biggest investment.

Which begs the question: Is the best solution to stop paying your mortgage?

For homeowners around the country who haven’t skipped their mortgage payments—but are seriously struggling—there are several reasons why homeownership is going less than swimmingly:

You’re Trying to Staying Afloat While You’re Underwater
Many of you are struggling to pay off a mortgage balance that is significantly higher than the value of your home. As a result, selling your home is simply not an option, since you would ultimately have to come up with the difference to settle with your lender.

You’re Drowning in the Deep End of Debt
Many homeowners just like you are spending down their savings, taking cash advances and/or relying on credit cards to buy bare necessities. Why? Because you’re using every actual dime that’s coming in to keep up with your mortgage payments. The result is millions of Americans who are not only underwater on the their mortgages, but who are also drowning in debt.

While staying current on your home commitment is admirable, and very much the American way, it’s also a quick and easy way to drain your savings, retirement, or nest egg, while also accumulating enormous debt, simply to avoid the dreaded “F-word.”

Consider Foreclosure
While it can be scary, this particular “F-word” can be your first, best step to a pair of “F” positives: financial freedom. If you are now hundreds of thousands of dollars underwater and go into foreclosure, your losses are essentially erased. In most cases, your lender can take the house, but not your future earnings with the only real financial consequence being trouble getting a loan for almost a decade (in an era when getting a loan isn’t easy even for those with stellar credit).

Unfortunately, most foreclosure alternatives are simply bad ideas. Let’s take, for example, the short sale. In a short sale, the lender is agreeing to accept less than what is owed to satisfy your loan. Assuming you find a buyer, you will then have run the offer by your lender. Even if they decide to go along with it, you could still be stuck with the deficiency if you’re not careful. That’s not to mention the tax implications of the forgiven debt. Why go through the hassle of a short sale, if it’s just as likely to hurt your credit, and may lead to even more debt.

Another foreclosure alternative, the loan modification, would be an option if lenders were granting permanent modifications. The problem is, most lenders are understaffed, behind on applications, and you’re likely to get lost in the shuffle. As of 9/1/09, over 362,000 loans have been granted a trial modification. Of those trial modifications, only 1,711 have been approved for permanent modifications.

And Then There’s Bankruptcy
If your credit score is going to suffer anyway, why not create a completely clean slate? As a hurting homeowner, 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.  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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Published Friday, February 26, 2010 @ 7:15 am

For most bankruptcy bound individuals, a discharge of all individual debts is considered the Holy Grail of any bankruptcy filing, yielding a permanent injunction that prevents creditors from collecting on debts. However, any good discussion of debt dischargeability also tackles the primary exceptions to look out for when considering any bankruptcy filing.

Exceptions to the power of a bankruptcy discharge, include:

Certain Tax Obligations
Withholding taxes are not dischargeable in bankruptcy, although you may be able to use a Chapter 13 case to pay these over time (notwithstanding any accrued penalties and interest).  Similarly, sales taxes are not dischargeable, but again, Chapter 13 can establish a payment plan for lessening the load and paying this out over the long haul.

The question of whether your income tax can be discharged ultimately depends on how old the tax debt is and when you filed the tax return.  In order to be dischargeable, your tax debt for the tax year in question must meet the following conditions: the due date for filing your tax return is at least three years ago; your tax return was filed at least two years ago; the tax assessment is at least 240 days old; your tax return was not fraudulent; and you are not guilty of tax evasion.

For example, in a 2009 bankruptcy filing:

• Taxes from 2006-2008 are not dischargeable;
• Taxes from 2004 and before are eligible for review; and
• Taxes from 2005 are potentially dischargeable if the return was filed by the debtor on or before April 15, 2006. If the return was filed under an extension, then the 2005 taxes are not eligible for the following review unless the debtor files after October 15, 2009.

Fraud and Certain Credit Usages Before Filing
Fraud is a valid creditor objection to a bankruptcy discharge. To find fraud, a creditor must prove: (1) a statement made under false pretenses; (2) a material fact; (3) designed to deceive the creditor; (4) that does in fact deceive the creditor; (5) the creditor reasonably relies on the statement; and (6) the creditor suffers actual damages resulting from the reliance.

The general rule here is this: if you’re considering bankruptcy it’s best to avoid maxing out (or in some cases simply using) consumer credit, credit cards, or loans. Bankruptcy law now demands that bankruptcy bound debtors like you do not take cash advances or purchase luxury items on credit 90-days prior to your filing bankruptcy. If you do purchase large or luxury items through these means, creditors may challenge you (and these discharging these debts) in Court if they believe that you have acted in bad faith in using credit excessively.

Domestic Obligations
Alimony, child support and spousal maintenance debts are not dischargeable in either Chapter 7 or Chapter 13 bankruptcy. Additionally, the first prong of bankruptcy, the automatic stay, does not act to stop most collection efforts for these claims. An exception to this exception comes in the second type of domestic asset splitting known as equitable distribution. While equitable distribution—a dividing of martial property as a result of dissolution of the marriage—is no longer dischargeable in a Chapter 7 bankruptcy, the same is not true in Chapter 13. Chapter 13 bankruptcy, in what is called as its “super discharge,” can aid a former spouse having trouble paying their bills to eliminate this type of burden. These issues are complex, and it is important that you speak with a bankruptcy expert if you have these types of issues.

Student Loans
In an effort to protect the education lending industry, and allow student loan money for almost anyone who wants it, Congress has made virtually every advance in connection with education non-dischargeable in bankruptcy. To that end, these loans are non-dischargeable “unless excepting such debt from discharge…would impose an undue hardship on the debtor.” While the definition of “undue hardship” is ultimately to the discretion of your bankruptcy judge, if precedent is any “judge,” this is a high hurdle to surmount. As a result, if you’re considering a bankruptcy filing simply to discharge a large student loan bill, don’t lose hope, it may just be best to wait: the tide appears to be turning in Congress to loosen this exemption as the costs of education skyrocket and more and more Americans face insurmountable educational tabs.

Because of the complexities of bankruptcy law, a qualified bankruptcy attorney is a necessary tool in your financial toolbox to help you conquer your creditors and face your fiscal  fears, yielding the right kinds of debt relief—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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Published Thursday, February 25, 2010 @ 3:09 pm

While many economists argue that the economy is steadily rebounding, whether you’re in a recession or recovery seems to largely depend on where you live, if you have a job, if you can pay your bills, or if you still have your home.

The Huffington Post reported this week that facing an economic meltdown in their personal lives, many formerly middle-class families have had to find “creative ways to cope with the sudden loss of their jobs and homes.” In her article, “Rattlesnake for Breakfast, Wedding rings on Craigslist: Families Cope With Falling Out of the Middle Class,” Laura Bassett describes how the American dream, for many, has turned into a surreal nightmare.

Take Arkansas’s Jeff Falk, 51, for example. After losing his family business selling auto parts, and finding himself no longer able to afford the house he had built for his family, his wife Jill, and their two boys, ages 3 and 8, packed their 40-foot camper and headed to Arizona for the winter.

“Jill found a part-time job waiting tables, and Jeff found occasional work repairing old boats, but they struggled to feed and home-school their young boys. Occasionally, Falk says, he feeds his children rattlesnake that he caught near his camper. While Falk, his wife and his children have managed to stay positive throughout their financial hardships, he says the hardest part of falling out of the middle class is losing the respect of those around him. ‘There are two kinds of people,’ he said. ‘Those that turn and look the other way and don’t even wanna look at you, and those that reach out and help you, and it seems like there’s no in-between.’”

The Falk family isn’t alone. Bassett also found Illinois’s Stephen Mooney.  Laid off in 2008 from a job he had held for 10 years, his severance pay ran out a few, short months later, leaving he and his wife Marianne unable to pay their bills.

“’Our gas was shut off,’” Mooney told HuffPost. ‘We were taking showers with water that we would heat up in the rice cooker and microwave. It was very depressing. Going to a job interview, you may be wearing a shirt and suit, but you don’t feel clean. I looked unkempt all the time, and corporate America’s not an easy place. There were some places where I knew I didn’t have a job as soon as they saw me sitting in the lobby.’ To make matters worse, the Mooneys’ house was recently foreclosed, and they have been asked to leave by March 1. ‘I don’t know how we put all the pieces back together,’ Mooney said. ‘Where do we live? Where does all our stuff go? It’s going to be very strange.’”

As Bassett reports, many families are making similarly difficult decisions just to stay afloat.

Kimberly Rios of Maryland sold her wedding ring on Craigslist last weekend just to cover utility bills.  “‘This is no joke, please be a serious buyer,’ Rios wrote in her ad. ‘It is too cold for us to be without electric and heat so if you have been looking consider my deal.’ She told HuffPost that she sold the ring on Valentine’s Day. She is trying to decide whether to use the money to pay for a few weeks of electricity or to buy a cheap car so that she and her family of six will have a place to go when the foreclosure happens.”

In spite of it all, Rios remains positive about her family’s future: “At least we have each other.”

Unfortunately, in this new era of financial insecurityy, stories like these are common in articles, reports and blogs all across the World Wide Web. Fortunately, no matter how dire your financial situation and how extreme your sacrifice, you can find strength in the numbers of families—all across the country—facing the same tough choices.

Yet, even if major sacrifices just aren’t enough to keep you afloat, 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.  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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