tag:blogger.com,1999:blog-7917821717667716922024-03-13T20:47:37.680-07:00Speckman Law FirmSpeckman Law Firmhttp://www.blogger.com/profile/09553882190804763072noreply@blogger.comBlogger37125tag:blogger.com,1999:blog-791782171766771692.post-39153485755677990032014-06-02T08:32:00.001-07:002014-06-02T08:32:52.258-07:00Bankruptcy vs. Debt Settlement
<br />
<span style="font-family: "Arial","sans-serif"; font-size: 13pt;">I am often
asked about debt settlement and whether it is a better option than filing
bankruptcy.<span style="mso-spacerun: yes;"> </span>Before we go any further, it
may be useful to talk about what bankruptcy is and what a debt settlement is.<o:p></o:p></span><br />
<br />
<span style="font-family: "Arial","sans-serif"; font-size: 13pt;">Bankruptcy
is a legal proceeding where a petition is filed with a bankruptcy court.
After certain proceedings through either a chapter 7 or chapter 13 filing
(typical for most consumer debtors), debts are often discharged meaning that
you are no legally obligated to pay those debts. Your case is monitored
by a bankruptcy judge and the court’s orders can be enforced through various
means.<span style="mso-spacerun: yes;"> </span>Your creditors are prohibited
from contacting you and the process is generaly well organized.<o:p></o:p></span><br />
<br />
<span style="font-family: "Arial","sans-serif"; font-size: 13pt;">A debt
settlement is a voluntary arrangement between you and a creditor where the
creditor will accept less than full payment usually in a lump sum payment or in
a limited number of payments. If an agreement is reached, the creditor
will cancel or forgive some portion of your debt while you pay other portion.
One thing to remember about debt settlement is that it is a <u>voluntary</u>
agreement. The creditor does not have to accept your settlement
offer. The process may take many months, is often stressful for the
borrower as collection call and letters will continued to be received, and
there is little organization in the process.<span style="mso-spacerun: yes;">
</span><o:p></o:p></span><br />
<br />
<span style="font-family: "Arial","sans-serif"; font-size: 13pt;">One other
point about debt settlement is that if a debt is settled, the creditor will
most likely issue a Form 1099 for the balance of the debt forgiven or
cancelled. This will be reported to the IRS as income to you and it could
affect your tax liability. But see </span><a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=5c6072ae5dbb4f6ebea6784d238f6bd1&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3bHPnz9R3naha0A%26b%3dR.cKj49_IU9JWC0xOCVnRg" target="_blank"><span style="font-family: "Arial","sans-serif"; font-size: 13pt;"><span style="color: blue;">Form
982</span></span></a><span style="font-family: "Arial","sans-serif"; font-size: 13pt;">
and instructions.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span><br />
<br />
<span style="font-family: "Arial","sans-serif"; font-size: 13pt;">There is
also a significant difference in the professional fees associated with the two
approaches. With bankruptcy, legal fees and court costs are generally agreed
upon and know up front.<span style="mso-spacerun: yes;"> </span>For a Chapter 7,
one may expect to spend int eh neighborhood of $2,000 plus filing fees.<span style="mso-spacerun: yes;"> </span>A Chapter 13 will be a bit more, but generally
less than $4,000.<span style="mso-spacerun: yes;"> </span>By contrast, the fees
for debt settlement are generally set on a percentage basis, which 15% being
the industrial norm.<span style="mso-spacerun: yes;"> </span>Because of this,
bankruptcy cases are generally far less expensive than debt settlement. <o:p></o:p></span><br />
<br />
<span style="font-family: "Arial","sans-serif"; font-size: 13pt;">Let’s use an
example case for comparison of the two approaches. Let’s assume a consumer has
accumulated $90,000 in unsecured debt, including credit card debt, medical
bills, etc. Assume further that the consumer’s assets are all “exempt”
(state and federal law allow consumers to “exempt” certain types and amounts of
assets in a bankruptcy so that the debtor may retain those assets.<span style="mso-spacerun: yes;"> </span>For most people in bankruptcy, all of their
assets will be “exempt”)<o:p></o:p></span><br />
<br />
<span style="font-family: "Arial","sans-serif"; font-size: 13pt;">In a
bankruptcy, the consumer would pay attorney fees of between $2,000 and $4,000
plus about $300 in court costs.<span style="mso-spacerun: yes;"> </span>At the
end of the case, the debts are gone and there are no tax consequences.<span style="mso-spacerun: yes;"> </span>The consumer most likely never had to go to
court and the collection calls stopped immediately.<span style="mso-spacerun: yes;"> </span>A Chapter 7 case is often over in as little
as 4 months.<span style="mso-spacerun: yes;"> </span>When the case is complete,
the consumer’s credit will usually begin to improve.<o:p></o:p></span><br />
<br />
<span style="font-family: "Arial","sans-serif"; font-size: 13pt;">If the
consumer elected to settle her debt, the consumer will likely pay about 40% of
what is owed.<span style="mso-spacerun: yes;"> </span>In this example, that
would equate to $36,000.00. In addition, the consumer will be taxed on
the $54,000 charged off, thereby resulting in significant tax liability.<span style="mso-spacerun: yes;"> </span>Next, the professional fees will run from $8,000
to more than $10,000, depending on how the relationship was structured.<span style="mso-spacerun: yes;"> </span>During the process, which may take many
months to over a year to complete, the consumer’s credit is being dragged
through the mud.<span style="mso-spacerun: yes;"> </span>When the debts are all
settled and “off the book”, the consumer will be sad to learn that the damage
to the credit from the process will be long lasting and often worse than a
bankruptcy, which has a clear ending point.<span style="mso-spacerun: yes;">
</span><o:p></o:p></span><br />
<br />
<span style="font-family: "Arial","sans-serif"; font-size: 13pt;">So, in the
end, the bankruptcy costs around $2,300 (Chapter 7) while the debt settlement
cost over $44,000, plus the added tax liability.<span style="mso-spacerun: yes;"> </span>So, which option makes the most sense?<span style="mso-spacerun: yes;"> </span>Of course, each person’s situation is
different and, believe it or not, there are time in which debt settlement makes
sense.<span style="mso-spacerun: yes;"> </span>This is your financial
future.<span style="mso-spacerun: yes;"> </span>Do risk it on a catchy radio add
or late night television spot advising against filing bankruptcy.<span style="mso-spacerun: yes;"> </span>The right advise will lead to the right
solutions.<span style="mso-spacerun: yes;"> </span>Please feel free to call us to
go over your options so that you may selected a course which would be most
beneficial and cost-effective.<o:p></o:p></span><br />
Speckman Law Firmhttp://www.blogger.com/profile/09553882190804763072noreply@blogger.com0tag:blogger.com,1999:blog-791782171766771692.post-47276461576291543702013-12-09T12:30:00.001-08:002013-12-09T12:32:30.019-08:00Running on Empty: “What If I Can’t Make My Chapter 13 Payments?”<span style="font-size: large;">Chapter 13 bankruptcy is about payments. After all, it’s a “payment plan
bankruptcy.” But what if you just can’t make the payments?<o:p></o:p></span><br />
<span style="font-size: large;"><em><b><br /></b></em></span>
<em><b><u>A moratori…what?</u></b></em><o:p></o:p><br />
A motion for moratorium of payments is a motion you can file to suspend your
plan payments for a period of time.<o:p></o:p><br />
Practice from bankruptcy district to bankruptcy district is very
different. Here in the Southern District
of California, it can be challenge to get a moratorium, but not impossible. We
are often able to obtain orders suspending payments for up to three months –
although it is wise to use only one or two months if you need it, because you
never know when you’ll need another order.
There is usually more flexibility if the plan is otherwise scheduled to
complete in less than five years since a bankruptcy may not extend beyond its
fifth anniversary. <span style="font-size: large;"><o:p></o:p></span><br />
<br />
<em><b><u>Tell your lawyer if you’ll have problems making your plan payments</u></b></em><o:p></o:p><br />
Going on maternity leave? Getting laid off for a few weeks? Having surgery?
These are all income interrupters. If you’ll be experiencing an income
interrupter, let us know well ahead of time so that we can timely prepare and
file your motion with the (hopefully) legitimate reasons you have to suspend
your payments.<o:p></o:p><br />
Your creditors and the bankruptcy trustee have the right to object to the
motion, but usually (let’s say almost always) the only person you need to
“sell” your cause to is the trustee.<span style="font-size: large;"><o:p></o:p></span><br />
<span style="font-size: large;"><em><b><br /></b></em></span>
<em><b><u>But my trustee’s a real jerk!</u></b></em><o:p></o:p><br />
My official position is that there are no Chapter 13 trustees who are real
jerks. None. Unofficially, let’s say you really do have a jerk for a trustee.
Keep in mind that even if the trustee objects, you have the right to be heard
by the judge. And the likelihood of your bankruptcy judge <em>and </em>your
bankruptcy trustee being a jerk is pretty slim, statistically speaking.
If you really do have some legitimate reason to suspend your
payments–through no fault of your own–the judge will grant your motion.<span style="font-size: large;"><o:p></o:p></span><br />
<br />
<em><b><u>Don’t keep your attorney in the dark</u></b></em><o:p></o:p><br />
With any problems in any type of bankruptcy, let us know immediately so that
we can take necessary steps to keep your case on track. <o:p></o:p><br />
<br />
<span style="font-size: large;">Chapter 13 cases are designed to help everyone – even you! So, keep us informed of changes in your
circumstances and lives so that we can continue to protect your interests. </span><o:p></o:p><br />
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<span style="font-size: large;"><br /></span>Speckman Law Firmhttp://www.blogger.com/profile/09553882190804763072noreply@blogger.com0tag:blogger.com,1999:blog-791782171766771692.post-18058490778794958912013-11-22T09:41:00.003-08:002013-11-22T09:41:29.570-08:00How to file bankruptcy – What are Executory Contracts and Unexpired Leases in bankruptcy?List your executory contracts and unexpired leases on your bankruptcy
petition and declare your intention either to accept or to reject those
contracts. Contracts that are not timely assumed are rejected and the parties
are released from further performance under those contracts.<o:p></o:p><br />
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<br />An executory contract is an agreement that has not been completed. A
contract is an agreement between two or more parties to perform certain
specified actions. Once the parties complete all contractual obligations the
contract becomes fully executed and the parties to that contract have no
further obligation to act under that contract. An example of an executory
contract is an agreement to sell property in which the buyer and seller agree
to perform certain actions including inspecting the property, making certain
repairs, obtaining financing, transferring title, delivering possession and
making payment. Until all contractual requirements are met, the contract
remains open to be executed.<o:p></o:p><br />
<br />
An unexpired lease is a form of contract for the use of certain specified
real or personal property that has a specified length of time remaining on the
length of the contract. An example of an unexpired lease is a rental agreement
for the use of a car or a house where the owner agrees to provide the property
to the lessee for a set number of months or years and the lessee agrees to make
payments for using that property. For bankruptcy purposes, a timeshare falls
into this category.<o:p></o:p><br />
<br />
Bankruptcy code section 11 U.S.C. 365 requires that assumption of an
executory contract or unexpired lease in a chapter 7 liquidation case within 60
days of filing the case; and in all other chapters of bankruptcy before
confirmation of a plan. The court may extend the time to assume such agreements
for cause. In the case of non-residential real estate agreements, the time to
act is extended to 120 days or longer by court order.<o:p></o:p><br />
<br />
<br />
If you have any questions regarding your open contracts or leases, call us
today for a free consultation.<o:p></o:p><br />
<br />
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<span style="font-size: large;"><b>Speckman Law Firm</b></span></div>
<div class="separator" style="clear: both; text-align: center;">
<i><b>Attorney David L. Speckman</b></i></div>
<div class="separator" style="clear: both; text-align: center;">
<i><b>619-696-5151</b></i></div>
<br />Speckman Law Firmhttp://www.blogger.com/profile/09553882190804763072noreply@blogger.com1tag:blogger.com,1999:blog-791782171766771692.post-58534747839088617662013-11-15T09:23:00.002-08:002013-11-15T09:23:32.301-08:00Should You Use A Debt Settlement Company? Be Aware! Be Very Aware!<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgOzkbPyXZ_FkbKUuZsiuXZfj05_NIm-B0VA7OH6ydHcRSUSkkAbOjTR7Dr0V4FHMMnvUjBI4Def0u-OUE_T08PxwWlIxVReBLurrcuKm7SuHWK_u6inQ88-Q1NHL-eaLd7-ACRMG1kwNCc/s1600/stopsignrgb.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgOzkbPyXZ_FkbKUuZsiuXZfj05_NIm-B0VA7OH6ydHcRSUSkkAbOjTR7Dr0V4FHMMnvUjBI4Def0u-OUE_T08PxwWlIxVReBLurrcuKm7SuHWK_u6inQ88-Q1NHL-eaLd7-ACRMG1kwNCc/s200/stopsignrgb.jpg" width="200" /></a></div>
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<br />
<span style="font-family: Times, Times New Roman, serif; font-size: large;">I was recently in court and saw two different consumer debtors attempting to
navigate a collections action, in pro per. They had
been sued by a credit card company after they had sought help from a debt
settlement company. The debtors had been sued even after having been
assured by the debt settlement company that it would assist the debtors
somewhat with the creditors. Of course,
the only thing the debt settlement company provided by way of assistance was
some worthless “cut and paste” pleadings that made no sense and actually
violate the prohibition on practicing law without a license. Needless to say, the debtors found themselves
in court having to explain things before the judge by themselves.<o:p></o:p></span><br />
<span style="font-family: Times, Times New Roman, serif; font-size: large;"><br /></span>
<span style="font-family: Times, Times New Roman, serif; font-size: large;">These companies are typically a scam.
Indeed, across the county, these outfits have been investigated and sued
by various governmental agencies and prosecutors, including for engaging in the
unauthorized practice of law. Other entities have had similar experience
with one debt settlement firm in particular. But, the fact that people
still sign up for these “services” raises the question why do people believe
the junk they are selling?<o:p></o:p></span><br />
<span style="font-family: Times, Times New Roman, serif; font-size: large;"><br /></span>
<span style="font-family: Times, Times New Roman, serif; font-size: large;">I think the real reason is twofold. First, people generally want to
pay their debts and they reason that payment of some of the debt is better than
none at all. The second reason is fear of bankruptcy. People are
afraid of losing property and of the damage to their credit. While these
are legitimate concerns, it does not explain why folks do not seek out a
competent professional to advise on financial issues yet they fall hook, line
and sinker for some fast-talking snake oil salesman over the telephone.<o:p></o:p></span><br />
<span style="font-family: Times, Times New Roman, serif; font-size: large;"><br /></span>
<br />
<span style="font-family: Times, Times New Roman, serif;"><span style="font-size: large;">If you are facing financial issues, seek out a competent bankruptcy attorney
in your area. Just because you seek advice, it does not commit you to
filing bankruptcy. But, because we are experienced in all aspects of the
debt collection process and alternatives including bankruptcy, we can offer you
meaningful solutions to your financial problems.</span><o:p></o:p></span><br />
<span style="font-family: Times, Times New Roman, serif; font-size: large;"><br /></span>
<div style="text-align: center;">
<span style="font-family: Times, Times New Roman, serif; font-size: large;"><u>Call <i>Speckman Law Firm</i> and Set Up your FREE Consultation</u></span></div>
<div style="text-align: center;">
<span style="font-family: Times, Times New Roman, serif; font-size: x-large;"><u>TODAY!</u></span></div>
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<span style="font-size: large;"><br /></span>Speckman Law Firmhttp://www.blogger.com/profile/09553882190804763072noreply@blogger.com0tag:blogger.com,1999:blog-791782171766771692.post-31809784333529221772013-11-13T10:24:00.002-08:002013-11-13T10:24:39.922-08:00Are You Too Far Behind on Your Mortgage for Chapter 13? Chapter 11 May Help!<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiiZ9eO9TWsftsowqPyg1Y6lvTUarm_9IIR0JDCUJJ2xurn1diCeFIxf7M06nxbXlKRjEzRbsod5YiYMeqkmygwoHbeuMfbvQPcTTZuYClWuobUPoNf7o0MeQsxDzf76hvBYZ6b8WUvBCKq/s1600/Foreclosure.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="212" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiiZ9eO9TWsftsowqPyg1Y6lvTUarm_9IIR0JDCUJJ2xurn1diCeFIxf7M06nxbXlKRjEzRbsod5YiYMeqkmygwoHbeuMfbvQPcTTZuYClWuobUPoNf7o0MeQsxDzf76hvBYZ6b8WUvBCKq/s320/Foreclosure.jpg" width="320" /></a></div>
<br />
Mortgage lenders have been delaying foreclosures for people all over the
country. Ask any bankruptcy attorney–they've seen cases where people haven’t
made a mortgage payment for two, three, or even four years, and the mortgage
company hasn't even started the foreclosure process. Loan modifications can
stretch on, court proceedings are scheduled and canceled, an unsuccessful Chapter
13, can all delay things. As a result, the mortgage arrearages–the amount
you’re behind on your mortgage–can add up to a lot of money.<br />
<o:p></o:p><br />
When you go to most consumer bankruptcy attorneys to file for a Chapter 13
repayment plan, you’re told that the plan payments will be too high for you to
afford, since the full amount of the arrearage must be paid over a maximum of
five years. If the arrears are $60,000, for example, this would require at least
a $1,000 per month payment on top of resuming the regular monthly payment. Most
people just can’t afford it.<o:p></o:p><br />
This may result in many people thinking that they have no alternative other
than losing their home. But there may be another alternative: an individual
Chapter 11.<o:p></o:p><br />
Most people don’t even know that individuals can file for Chapter 11; they
think that it’s just for businesses. This is not true. In a Chapter 11 case,
there is no five-year limit on the repayment term for mortgage arrearages. In
some Chapter 11 cases, it is possible to obtain repayment terms of up to 30
years, without interest. In the example above, instead of a $1,000 per month
payment, my client is looking at a monthly payment of $166.67. This is far more
doable for most people.<o:p></o:p><br />
Of course, Chapter 11 is not for everyone.
These cases tend to be far more complex and expensive than a Chapter 13,
and there are not many consumer bankruptcy attorneys who know how to steer you
through an individual Chapter 11.
However, we do. Indeed, we have
successfully managed several individual Chapter 11 cases. Give us a call today to discuss your
situation and learn whether a Chapter 11 bankruptcy may be the correct answer. <o:p></o:p><br />
<br />
<br />Speckman Law Firmhttp://www.blogger.com/profile/09553882190804763072noreply@blogger.com0tag:blogger.com,1999:blog-791782171766771692.post-69631175755025225292013-11-01T14:42:00.002-07:002013-11-01T14:42:13.514-07:00Fourth Circuit Holds Inheritances Are Estate Property In Chapter 13 CasesRecently, the <a href="http://clicks.aweber.com/y/ct/?l=7jOcg&m=3ZDI_pJD2jaha0A&b=IvVkceMaOPsCoJIbOENBZw" target="_blank">Fourth Circuit Court of Appeals</a> issued an opinion in <a href="http://clicks.aweber.com/y/ct/?l=7jOcg&m=3ZDI_pJD2jaha0A&b=GmPpABfHrZy1YlDX3QOrGQ" target="_blank">Carroll v Logan</a>. This will have an impact for future
chapter 13 cases in this circuit.<o:p></o:p><br />
<br />
In <a href="http://clicks.aweber.com/y/ct/?l=7jOcg&m=3ZDI_pJD2jaha0A&b=GmPpABfHrZy1YlDX3QOrGQ" target="_blank">Carroll</a>, the debtors filed a chapter 13 case in 2009.
The Carrolls’ plan provided for a payment to unsecured creditors of
approximately 3.8%, that is, each unsecured creditor who filed a claim would
receive approximately 4% of what they claimed was owed.<o:p></o:p><br />
<br />
A little over three years after the debtors’ filed bankruptcy, Mr. Carroll
notified the court that he would receive $100,000.00 from an inheritance.
Upon such notice, the chapter 13 trustee moved to modify their plan to provide
for the $100,000.00 to be paid through the plan toward unsecured
creditors. The debtors’ objected to the trustee’s motion.<o:p></o:p><br />
<br />
At issue were two provisions of the Bankruptcy Code: Section 541 and
Section 1306. <a href="http://clicks.aweber.com/y/ct/?l=7jOcg&m=3ZDI_pJD2jaha0A&b=5EE0nLjElFJm3xey6edIfg" target="_blank">Section 541</a> defines what property interests come into the
bankruptcy estate upon filing for bankruptcy protection. In particular,
Section 541(a)(5) states that any property that the debtor acquires or is
entitled to within 180 days after filing bankruptcy by <em>bequest, devise or
inheritance </em>becomes property of the bankruptcy estate. A reason for
this provision is so that if a debtor knows that a family member is going to
pass on soon and the debtor has lots of debts, the debtor won’t file bankruptcy
immediately before the family member passes to discharge his debts and then
have the full inheritance. If a debtor inherits property within 180 days
after filing, the trustee can get those assets to pay creditors.<o:p></o:p><br />
<br />
In the Carrolls’ case, they had filed for bankruptcy in 2009 and did not
become entitled to inherit anything until well after the 180 days since filing
had passed. As such, the debtors’ argued, they should not have to submit
their inheritance to the chapter 13 trustee.<o:p></o:p><br />
<br />
The trustee countered and the Fourth Circuit agreed that Section 1306 allows
the trustee to reach the inheritance. <a href="http://clicks.aweber.com/y/ct/?l=7jOcg&m=3ZDI_pJD2jaha0A&b=hmXqtvz2_sapmU5LLNWUBw" target="_blank">Section 1306</a> states that property of the bankruptcy estate <span class="ptext-">includes, in addition to the property specified in Section 541
(see above), all property that the debtor acquires </span><em>after</em><span class="ptext-"> commencement of the case but before the case is closed,
dismissed, or converted to a case under a different chapter. As such,
under Section 1306, even though the debtor did not acquire the property within
180 days after his bankruptcy filing as set forth under Section 541, Section
1306 states that the after acquired property does come into the bankruptcy
estate until the case is closed, dismissed or converted. Therefore, the
debtors would be required to pay the $100,000.00 inheritance into the plan
(less their </span><a href="http://clicks.aweber.com/y/ct/?l=7jOcg&m=3ZDI_pJD2jaha0A&b=1MX6UfbpOCht0S3qYozJEQ" target="_blank">exemptions</a><span class="ptext-">, if any).</span><o:p></o:p><br />
<span class="ptext-"><br /></span>
This can create another factor to carefully consider before choosing a
chapter 7 case or a chapter 13 case. If you do not stand to inherit much
from family members, it may not be much of a factor. If you do stand to
inherit something, a chapter 13 case can go on for up to five years and any
inheritance acquired could go to paying your creditors. At the same time,
if you do not qualify for a chapter 7 case because you “flunk” the means test
or if you must file a chapter 13 to cure mortgage arrears or other reasons,
there may not be any other bankruptcy options.<o:p></o:p><br />
<br />
<br />
A skilled bankruptcy professional such as those on this website can help you
navigate the world of bankruptcy. If you are facing financial issues,
contact one of us today.<o:p></o:p>Speckman Law Firmhttp://www.blogger.com/profile/09553882190804763072noreply@blogger.com0tag:blogger.com,1999:blog-791782171766771692.post-57118665350212297282013-10-30T13:38:00.002-07:002013-10-30T13:38:48.752-07:00What is a Chapter 12 bankruptcy and do I qualify?<div class="MsoNormal">
<span style="font-family: "Lucida Bright","serif"; font-size: 12.0pt; line-height: 115%;"> Chapter
12 of the Bankruptcy Code is designed to protect family farmers and
fisherman. Southern California has
plenty of both. Still, this is a very
uncommon form of bankruptcy.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "Lucida Bright","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: "Lucida Bright","serif"; font-size: 12.0pt; line-height: 115%;"> An
individual or married couple who farm can file Chapter 12, but so can a farm
corporation, LLC or partnership. There are some requirements to file a
successful Chapter 12. You must have regular annual income, your debts cannot
exceed $4,031,575 (adjusted yearly), and over 50% of your debts must have been
related to the farming operation. In addition, if you are an individual or
couple, over 50% of your gross income must come from farming operations.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "Lucida Bright","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: "Lucida Bright","serif"; font-size: 12.0pt; line-height: 115%;"> Farm
Bankruptcy was first added to the Bankruptcy Code in 1986. In the 1980’s, there
were many bank failures, and credit all but dried up for farmers. The result
was a farm crisis. Chapter 12 Farm Bankruptcy was supposed to be a temporary
emergency response, but was periodically extended. In 2005 when Congress passed
a major overhaul of the Bankruptcy Code, making it harder and more expensive
for consumers to file for bankruptcy, they actually strengthened Chapter 12 and
made it permanent.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "Lucida Bright","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: "Lucida Bright","serif"; font-size: 12.0pt; line-height: 115%;"> The
most powerful tool found in a Chapter 12 is the ability to re-do, or modify any
secured debt. This includes mortgages and loans on livestock, crops and
equipment. All aspects of the loans can be modified into what is effectively a
new loan. The interest rate can be lowered. The principal balance can be
decreased down to the value of the collateral. The term of the loan can be
increased. Any arrears will disappear into the new modified loan.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "Lucida Bright","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: "Lucida Bright","serif"; font-size: 12.0pt; line-height: 115%;"> This
ability to modify ANY secured loan in Chapter 12 is one of the major advantages
of Chapter 12 over Chapter 13. Others include: There is no required “means
test” in a Chapter 12; you do not have to get a Court Order extending the
automatic stay beyond 30 days if you were in a previous Chapter 12; The
eligibility limits are greater than in a Chapter 13.<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "Lucida Bright","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: "Lucida Bright","serif"; font-size: 12.0pt; line-height: 115%;"> Family
farmers in America are a dying breed. The continued access farmers have to
Chapter 12 bankruptcy has allowed many farms to get through tough economic
times and continue their family farm business and way of life.<o:p></o:p></span></div>
<br />
<div class="MsoNormal">
<span style="font-family: "Lucida Bright","serif"; font-size: 12.0pt; line-height: 115%;"> If you
feel you may qualify for this powerful and effective bankruptcy, call us for a
free consultation. The call just might
“save the farm”.<o:p></o:p></span></div>
Speckman Law Firmhttp://www.blogger.com/profile/09553882190804763072noreply@blogger.com2tag:blogger.com,1999:blog-791782171766771692.post-31821525009150873272013-09-06T13:37:00.000-07:002013-09-06T13:37:15.131-07:00Bankruptcy is not a “Dirty Word”I spend a lot of time talking to clients (and prospective clients) about the
social stigma of filing bankruptcy. That is probably the primary reason
that people who need the protection bankruptcy offers wait too long to file, or
don’t file at all. Many people struggle with overwhelming debt for far
too long, exhausting their resources (and often the resources of family members
as well) because of their perception of bankruptcy.<o:p></o:p><br />
<br />
So I was struck by something the Seventh Circuit Court of Appeals said in a
recent decision involving NBA great Scottie Pippen. Pippen had sued
several media outlets for defamation because they reported, erroneously, that
he had filed bankruptcy. The three-judge panel found that such a report
was not defamation <em>per se.</em> Defamation <em>per se</em>
essentially means someone says something so bad about you that you don’t
have to show that it damaged you–we assume that damage occurred. (Think
of it like the playground taunt that is so bad you don’t get in trouble if you
sock the person who said it.) In the Pippen case, the court said.<o:p></o:p><br />
<br />
A similar taint does not attach to the reputation of people who go bankrupt.
Many innocent reasons lead to financial distress. Readers of the defendants’
statements who mistakenly believe that Pippen is insolvent readily could
conclude that his advisers bear the blame.<o:p></o:p><br />
<br />
Some people need bankruptcy because of bad financial advice, others because
of an illness and resulting bills, or because of the loss of a job, or a
divorce, or a combination of those things. Some people need bankruptcy
simply because their income has dropped, or just hasn't kept pace with the cost
of living. Given that there are so many factors that are out of your
control, why should the perception that bankruptcy is a dirty word keep you
from seeking the protection that you need?<o:p></o:p><br />
<br />
I think of bankruptcy like surgery. I don’t know anyone who wants to
have surgery. (From that statement you will conclude, correctly, that I
don’t know any celebrity plastic surgery addicts. Thankfully.) But
if you are sick, or in pain, and surgery will correct a problem, or give you a
better quality of life, or save your life, how many of us would refuse?
Bankruptcy is financial surgery. You eliminate the bad stuff, and
start over fresh without a financial tumor weighing you down. Without the
stress of bill collector calls. Without trying to decide which bill to
pay when your paycheck just won’t stretch anymore. Without worry over
foreclosure or repossession.<o:p></o:p><br />
<br />
No, bankruptcy is not a dirty word.<o:p></o:p><br />
<br />
<br />
<br />
<br />
Speckman Law Firmhttp://www.blogger.com/profile/09553882190804763072noreply@blogger.com0tag:blogger.com,1999:blog-791782171766771692.post-63766375022543276192013-08-30T14:00:00.003-07:002013-08-30T14:00:50.226-07:00Should I File a Chapter 7 or a Chapter 13 BankruptcyWhile some of my clients know what bankruptcy chapter they should file
under, most look to me to advise them whether to file for <a href="http://clicks.aweber.com/y/ct/?l=7jOcg&m=3XYGxcST6qaha0A&b=6Pa6l9CDq2v5GWEH9xwOWA" target="_blank" title="Chapter 7">Chapter 7</a> or <a href="http://clicks.aweber.com/y/ct/?l=7jOcg&m=3XYGxcST6qaha0A&b=CQTTY.uaRMUNuxl4zqsAQg" target="_blank" title="Chapter 13">Chapter 13</a> (or <a href="http://clicks.aweber.com/y/ct/?l=7jOcg&m=3XYGxcST6qaha0A&b=yMHKDeG7fCCY.HbydoNSNg" target="_blank" title="Chapter 11">Chapter 11</a> or <a href="http://clicks.aweber.com/y/ct/?l=7jOcg&m=3XYGxcST6qaha0A&b=E0Z1YAdSCpSdKMK2dHCwRA" target="_blank" title="Chapter 12">Chapter 12</a>, the topics of a later blog).
What do I look at in deciding which chapter to recommend?<br /><o:p></o:p><br />
My “default” setting is Chapter 7. This is the least expensive, fastest and
simplest chapter of the <a href="http://clicks.aweber.com/y/ct/?l=7jOcg&m=3XYGxcST6qaha0A&b=ftinyOsHvvbQWsbjahWpJw" target="_blank" title="Bankruptcy Code">Bankruptcy Code</a>. Unless there is a
significant reason to file under a different chapter, I will normally recommend
that the client file for Chapter 7.<o:p></o:p><br />
<br />
What happens in a Chapter 7? The answer depends on the type of debt.
Generally, there are three kinds of debt: priority, secured and general
unsecured. <strong>Priority debt</strong> consists of recent tax debt and
domestic support obligations such as alimony and child support. Priority debt
is not dischargeable in a Chapter 7. Unless it’s paid in full during the case,
you still owe it after you get a <a href="http://clicks.aweber.com/y/ct/?l=7jOcg&m=3XYGxcST6qaha0A&b=vapNgROEcCpG3kkuZAFvjw" target="_blank" title="Bankruptcy Discharge">discharge</a>. Most <strong>secured
debt</strong>, that is, debt where you pledge something as collateral, such as
mortgages and car loans, are changed from “recourse debt” to “non-recourse
debt.” What does this legalese mean? It means that if the lender could sue you
for a deficiency or shortfall after a foreclosure or repossession if the sale
of the collateral doesn’t bring in enough to pay the debt in full, the
bankruptcy discharge stops them from going after you. All they can go after is
the collateral, and if it doesn’t bring in enough to pay the debt in full,
tough. You’re off the hook. This means that you can walk away from the house or
car <em>if you want to. </em>If you don’t want to, just keep the
payment current and you’ll be fine. Upon the entry of a <a href="http://clicks.aweber.com/y/ct/?l=7jOcg&m=3XYGxcST6qaha0A&b=vapNgROEcCpG3kkuZAFvjw" target="_blank" title="Bankruptcy Discharge">discharge</a>, most <strong>general
unsecured debt</strong>–credit cards, medical debt, personal loans, old taxes,
tax penalties, foreclosure and repossession deficiencies, unpaid rent, unpaid
HOA and condo fees, unpaid utility bills, etc. (but not student loans)–are
wiped out. You don’t need to pay these debts at all.<o:p></o:p><br />
<br />
A typical Chapter 7 lasts about 4 months from filing to discharge.<o:p></o:p><br />
<br />
Why would you want to file a Chapter 13? Several main reasons:<o:p></o:p><br />
1. You aren’t eligible for a Chapter 7. You fail the means test, or have too
much disposable income to qualify for a Chapter 7. Or you might have filed a
Chapter 7 case in which you received a discharge within the last eight years.
None of these are problems in a Chapter 13<o:p></o:p><br />
2. You are behind on your mortgage and need time to catch up. A Chapter 13
gives you up to five years to spread these payments out to bring the mortgage
current, without interest.<o:p></o:p><br />
3. You owe more on the first mortgage on your home than it’s worth, and have
a second or third mortgage. A Chapter 13 lets you “strip off,” or wipe out,
wholly unsecured second and third mortgages.<o:p></o:p><br />
4. You’re behind on your tax or domestic support payments and need time to
catch up. A Chapter 13 gives you up to five years to spread these payments
out to bring them current.<o:p></o:p><br />
5. You owe a domestic support property distribution and want to discharge
it. A Chapter 13 “super discharge” allows you to do this.<o:p></o:p><br />
In these circumstances, I would normally advise my clients to consider a
Chapter 13.<o:p></o:p><br />
This decision is not always easy or straightforward. It requires a detailed
analysis of your assets, debt, income and expenses, and an in-depth knowledge
of the Bankruptcy Code. An experienced bankruptcy attorney is the best person
to advise you.<br />
<br />
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<br /></div>
Speckman Law Firmhttp://www.blogger.com/profile/09553882190804763072noreply@blogger.com0tag:blogger.com,1999:blog-791782171766771692.post-41824327725670266632013-07-16T14:52:00.001-07:002013-07-16T14:52:33.415-07:00Forcing the Mortgage Holder to Take Back a Home through Chapter 13Using bankruptcy to surrender a home that has become unaffordable is nearly as common as using bankruptcy to stop a foreclosure so that a home can be retained. The question whether to keep a home when filing bankruptcy is usually answered by comparing the amount of the home’s monthly mortgage payments with the income the debtor is able to devote to housing payments. If the payments are no longer affordable, the debtor might choose to surrender the home as part of either a chapter 7 or chapter 13 bankruptcy filing.<br />
<br />
However, in practice this is sometimes more difficult than it would seem at first glance. Mortgage companies are often slow to foreclose on homes that are surrendered to the lender in bankruptcy, leaving the home vacant, and still technically under the ownership of the bankruptcy debtor, for months or even years after the bankruptcy was filed.<br />
<br />
The slow-to-foreclose mortgage company can create a host of problems for the surrendering-the-home bankruptcy debtor, who could be held liable for post-bankruptcy homeowners association fees, property assessments, other ownership related financial obligations (but not the monthly mortgage payments, the personal obligation for which the debtor was discharged in the bankruptcy), or property owner liability for injuries occurring at the vacant home.<br />
<br />
However, a recent ruling from a Hawaii bankruptcy court approved an ingenious solution to the problem of the non-foreclosing lender. This chapter 13 decision, <em>In re Rosa</em>, No. 13-00630 (Bky. Hawaii July 8, 2013), approved over the objections of the chapter 13 trustee a chapter 13 plan which contained a provision designed to solve this problem by conveying the home back to the first mortgage holder.<o:p></o:p><br />
In the <em>Rosa</em> case, the debtor’s chapter 13 plan stated that title to the real estate “shall vest in City National Bank/OCWEN Loan Service upon confirmation, and the Confirmation Order shall constitute a deed of conveyance of the property when recorded at the Bureau of Conveyances.” The chapter 13 trustee objected, arguing that a “surrender” under the bankruptcy law did not transfer ownership of the surrendered property until the lender actually foreclosed.<br />
<br />
The court disagreed with the trustee and pointed out that here, the debtor had gone beyond merely “surrendering” the property in the chapter 13 plan. Rather, the chapter 13 plan plainly stated that confirmation of the plan by the court would transfer ownership to the lender, and that the order confirming the plan would be recorded like any other deed of conveyance. The lender had been served with this plan and it had not objected to the plan in court. The plan was therefore confirmed over the objections of the chapter 13 trustee.<br />
<br />
The result of this strategy for this debtor was a prompt solution to the potential foot-dragging behavior by the lender in foreclosing, which otherwise might have led to years of wrangling by the debtor over unpaid future property assessments.<br />
<br />
If you feel “stuck” with a house you no longer desire to keep, call us today to discuss your options and whether a Chapter 13 makes sense for you. <o:p></o:p><br />
<br />
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Speckman Law Firmhttp://www.blogger.com/profile/09553882190804763072noreply@blogger.com0tag:blogger.com,1999:blog-791782171766771692.post-52684538602282370522013-07-10T11:10:00.001-07:002013-07-10T11:10:53.980-07:00Over Median? - Get Creative to Fit into Chapter 7<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgxPeRv4R4bQjNn7BAdVBcI8vSc023HN27_o6IVOyV6kUF80OzX2m1rC9bHuJ0ZO7Jd4YENA0y34A5VlXrNpsWyGTYi903KT7WBIlp1L4erV7JmjHFMlZgCgpFH99aeLwqqi-6yVDqOn5p5/s1600/chapter-7-300.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="205" nya="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgxPeRv4R4bQjNn7BAdVBcI8vSc023HN27_o6IVOyV6kUF80OzX2m1rC9bHuJ0ZO7Jd4YENA0y34A5VlXrNpsWyGTYi903KT7WBIlp1L4erV7JmjHFMlZgCgpFH99aeLwqqi-6yVDqOn5p5/s400/chapter-7-300.jpg" width="400" /></a></div><div style="border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none;"><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Chapter 7 offers many advantages over Chapter 13:<o:p></o:p></span></div><ul style="border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none;" type="disc"><li class="MsoNormal" style="line-height: normal; margin: 0in 0in 10pt; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">faster process – 3 months vs. 5 years <o:p></o:p></span></li>
<li class="MsoNormal" style="line-height: normal; margin: 0in 0in 10pt; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">lower cost <o:p></o:p></span></li>
<li class="MsoNormal" style="border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none; line-height: normal; margin: 0in 0in 10pt; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">more complete relief from debts <o:p></o:p></span></li>
</ul><div class="MsoNormal" style="border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none; line-height: normal; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">When I meet with a prospective client, I start my evaluation by by asking “can this person fit into a Chapter 7?”<o:p></o:p></span></div><div class="MsoNormal" style="border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none; line-height: normal; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">By contrast, the Bankruptcy Code is designed to push debtors into Chapter 13, where they repay some or all of their debt. This issue – how much, if anything, should a debtor pay back to creditors – underlies most of the conflict (and litigation) that can arise in a bankruptcy case.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">As an advocate who works on behalf of debtors, my goal is to help my clients obtain a fresh start – that is, complete their bankruptcy cases as quickly as possible and with as little residual debt as possible.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">One hurdle that appears in just about every bankruptcy case is the means test. Designed to bar Chapter 7 relief from debtors who have the means to pay back their debts in Chapter 13 or Chapter 11, the means test uses a clunky, mechanical series of calculations to predict future earnings capacity based on past performance. How ironic that federal securities laws require sellers of investments like stocks and mutual funds to specifically disclaim that past performance is no guarantee of future results.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">In any case, an astute bankruptcy lawyer should view the means test as a flexible structure and not a monolith. There are numerous angles to argue that the means test should not apply in a particular case or that the results in a particular case should be ignored. A nice example of good lawyering in this regard was published by my BLN colleague Jay Fleischman in his law firm blog, where he points out that a student loan incurred for a business purpose may make a Chapter 7 case non-consumer in nature and this eliminate the means test requirement entirely.<o:p></o:p></span></div><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">In cases where the means test does apply, it is important to look for every possible may be possible to end up with the result that you are eligible to file Chapter 7 if you wish. If you are an above-median debtor the first draft of your means test may yield the result that you cannot file Chapter 7 but you and your attorney must dig deeper. <span style="mso-spacerun: yes;"> </span>Contact us today to discuss several tactics that may help you qualify for Chapter 7, even when the means test suggests that you may not be eligible.<o:p></o:p></span></div><div align="justify"></div>Speckman Law Firmhttp://www.blogger.com/profile/09553882190804763072noreply@blogger.com0tag:blogger.com,1999:blog-791782171766771692.post-73240783781583180732013-06-06T09:07:00.000-07:002013-06-06T09:07:45.029-07:00Experience Debt Relief Through Bankruptcy (not against it)<div class="MsoNormal" style="margin: 0in 0in 10pt;">
<o:p><span style="font-family: Calibri;"> </span></o:p><em><strong>Answer this question: Should you file bankruptcy?</strong></em></div>
<div class="MsoNormal" style="margin: 0in 0in 10pt;">
Yes, if you owe more now than you did last month. This test is easy and the answer is simple to understand. It is your best way to tell whether your finances are headed in the right direction or whether you are digging deeper into debt. If you ignore this one piece of expert advice you will undoubtedly follow the false promise of what appear to be quick easy painless debt collection schemes, schemes that are stacked against you.<br style="mso-special-character: line-break;" /></div>
<strong><o:p></o:p></strong><div class="separator" style="clear: both; text-align: center;">
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<em><strong>Do not ignore these warning signs.</strong><o:p></o:p></em></div>
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As one struggles with bills one typically faces a series of common phases – ill-advised attempts to fix the problem. You pay as much as you can on your bills, and when that is not enough you move into phase one. First, one uses savings, until none is left, leaving nothing for emergencies. You are taught early in life to save for a rainy day. Your savings account is your safety net. It is there to protect you and keep you out of financial trouble. Using up your emergency fund is your first warning sign that financial danger lies ahead.<o:p></o:p></div>
Next, one borrows money, usually in one or more of the following four ways.<br /><span style="mso-tab-count: 1;"> </span>1.<span style="mso-tab-count: 1;"> </span>By credit cards, until the account limits max out and the bank declines to issue further credit;<br /><span style="mso-tab-count: 1;"> </span>2.<span style="mso-tab-count: 1;"> </span>By long term debt consolidation, based on one’s ability to get a loan;<br /><span style="mso-tab-count: 1;"> </span>3.<span style="mso-tab-count: 1;"> </span>By short term high interest payday type loans;<br /><span style="mso-tab-count: 1;"> </span>4.<span style="mso-tab-count: 1;"> </span>By begging money from family and friends.<o:p></o:p><br />
When you find yourself in a hole, stop digging. Borrowing money to get of debt is the same as digging the hole deeper. If you cannot pay your bills today, you will not be able to pay more debt tomorrow. When no one will loan you more money, you have used up all your credit, and you have spent all the money you do not have. When you have no more credit to spend, stop digging. This is the second warning sign that you need real help.<o:p></o:p><br />
Finally you realize your ways do not work and you start to ask for advice. The one word you keep hearing is bankruptcy. That is a word you have been conditioned to avoid, because banks tell you it is bad. The same people that stopped loaning you money do not want you to file bankruptcy. Why, because they tell you they will not give you loans in the future. But they already stopped giving you loans and you cannot pay the debt you already have. It is time to get a fresh start, a do-over. It is time to take back control of your life. In reality, contacting a bankruptcy lawyer is the first step to achieving debt relief, but for many people it is often the last resort. The third warning sign is thinking you can solve this problem yourself.<o:p></o:p><br />
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<em><strong>See an expert.</strong><o:p></o:p></em><br />
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You tried it your way. Now is the time to listen to the expert. A bankruptcy lawyer brings years of experience and thousands of cases to your problems. A lawyer will listen to your problems and present you with options to get out of debt. The lawyer can offer debt consolidation or debt settlement and can explain whether those options are suitable to your situation.<o:p></o:p><br />
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<em><strong>Follow advice.</strong><o:p></o:p></em><br />
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Bankruptcy lawyers are trained to find solutions. An experienced bankruptcy attorney can predict whether your case: <o:p></o:p><br />
-Probably will succeed;<br />-Might have a chance at success; or<br />-Is a loser.<o:p></o:p><br />
It is time to follow advice. Keep an open mind and let the lawyer work for you. Accept the advice, take the recommendations. Do not insist on another scheme that “is a loser”. You ignored all the warning signs leading to falling in debt. Now is the time to let the experienced bankruptcy lawyer help you out of debt.<o:p></o:p><br />
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<em><strong>Still not convinced?</strong><o:p></o:p></em><br />
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Walk into the lawyer’s office. Proudly announce that you do not want to file bankruptcy. Shout that you have excellent credit. Scream that you want to pay your bills. Then, … Remember the test: Do you owe more money today than you did yesterday? Remember how you drained your savings accounts. Remember how you borrowed every penny that you could borrow.<br />Remember how everything you tried did not work. Now, let the experienced bankruptcy lawyer bring you to your goal of real debt relief.<br />
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Speckman Law Firmhttp://www.blogger.com/profile/09553882190804763072noreply@blogger.com0tag:blogger.com,1999:blog-791782171766771692.post-9985269704401435192013-05-17T12:35:00.001-07:002013-05-17T12:35:11.598-07:00“Chapter 20″ Lien Stripping Allowed by Fourth Circuit Appeals Court<div class="separator" style="clear: both; text-align: center;">
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The U.S. Court of Appeals, Fourth Circuit, has become the first U.S. Court of Appeals to approve “chapter 20″ lien stripping. Although virtually all U.S. bankruptcy courts allow the “stripping” (vacating and eliminating) of completely unsecured junior mortgages on homestead real estate, the Fourth Circuit is the first circuit-level appeals court to approve lien stripping in a chapter 13 which follows closely on the heels of a chapter 7 bankruptcy filing. <em>In re Davis (Branigan v. Davis),</em> No. 12-1184 (4th Cir. May 10, 2013).<o:p></o:p></div>
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“Chapter 20″ is a colloquial term for a chapter 13 bankruptcy filed within four years of a chapter 7 case.<o:p></o:p></div>
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A junior mortgage is the second, third, or any other mortgage which is junior to the first mortgage upon homestead real estate. Although junior mortgages cannot be stripped or otherwise modified in a chapter 7 bankruptcy (although the Eleventh Circuit has allowed this practice in an unpublished opinion), junior mortgages can indeed be stripped off in a chapter 13 bankruptcy, if the junior mortgage is entirely unsecured.</div>
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An example of an entirely secured junior mortgage would be where the home’s value is $200,000 and the first mortgage has a balance of $250,000; if the home is also subject to a second mortgage in the amount of $50,000 the second mortgage is not secured by any actual value of the real estate. To think of this example in another way, if a foreclosure sale were to occur on this underwater home, the first mortgage would receive only $200,000 (the home’s value) and the second mortgage would get absolutely nothing. This is what the bankruptcy code means when it categorizes a junior mortgage as entirely unsecured.</div>
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“Chapter 20 junior mortgage lien stripping” means stripping an entirely unsecured junior home mortgage in a chapter 13 bankruptcy case which is filed within four years after a chapter 7 filing by the same debtor. The question whether this is permissible arises because the debtor is not eligible for a discharge of debts in a chapter 13 filed within four years of a chapter 7 discharge.</div>
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Many are surprised that someone can file chapter 13 bankruptcy within four years of filing chapter 7 — isn’t there a mandatory eight year waiting period between bankruptcy filings? The answer is no. A debtor can file chapter 13 at any time, it’s just that a chapter 13 debtor cannot receive a discharge, in the new chapter 13 case, if the case is filed within four years of a previous chapter 7 case.</div>
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Mortgage banks have raised the argument that even if junior mortgage lien stripping is allowed in chapter 13 bankruptcy cases, it should not be allowed in a no-discharge chapter 20 case. If the debtor cannot receive a discharge of debts, the argument goes, then how can the chapter 13 filing strip off a junior mortgage?<o:p></o:p><br />
In <em>In re Davis,</em> the appeals court noted that lower courts have been split on the question of chapter 20 lien stripping, although one Bankruptcy Appellate Panel had approved this practice in <em>In re Fisette</em>, 455 B.R. 177 (8th Cir. BAP 2011).<o:p></o:p><br />
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Speckman Law Firmhttp://www.blogger.com/profile/09553882190804763072noreply@blogger.com0tag:blogger.com,1999:blog-791782171766771692.post-16293979671385868132013-05-13T10:47:00.001-07:002013-05-13T10:51:08.222-07:00Who gets Lower Rates? Wall Street Banks or Student Loans?<h2 style="text-align: center;">
<em>Wall Street Banks Get Lower Rates Than Student Loans AND Can Bankrupt Their Loans From The Government</em></h2>
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<em>…Fair?</em></h2>
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<span style="font-size: large;">Bankruptcy remains a source of financial relief for most borrowers. Most debts are discharged in bankruptcy and folks receive a “fresh start”. However, there is one huge exception that is not discharged automatically in any bankruptcy - student loans.</span></div>
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<span style="mso-spacerun: yes;"></span><span style="font-size: large;">Both government and private loans are not discharged in bankruptcy. Student loans are dischargeable in bankruptcy cases only if the student can prove that the loans cannot be repaid without undue hardship, now or at any time in the future.<span style="mso-spacerun: yes;"> </span>Providing undue currently hardship would seem to be easy — after all, bankruptcy means broke, right? The difficult part is proving that the hardship will continue indefinitely into the future.<span style="mso-spacerun: yes;"> </span>Absent a permanent disability, this standard is seldom met. So, the practical consequence is that student loans are largely considered “non-dischargable.”</span></div>
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<span style="font-size: large;">There may be some relief in the future – at least with private student loans.<span style="mso-spacerun: yes;"> </span></span></div>
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<span style="font-size: large;">A meaningful push to revamp the current loan is being made by Elizabth Warren, a former Democratic Senator from Massechusetts.<span style="mso-spacerun: yes;"> </span></span></div>
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</o:p><span style="font-size: large;">There, Elizabeth Warren served as the interim potential head of the Consumer Financial Protection Bureau, but her permanent appointment was blocked by partisan politics. Undeterred, Elizabeth Warren ran for Senate shortly thereafter. Warren now serves on the Senate Banking Committee, where she has introduced her first piece of legislation: “The Bank on Students Loan Fairness Act.” Ms. Warren proposes a radical change: to give individuals the same interest rate that the big Wall Street banks obtain, an interest rate of about .75% on loans they obtain from the government. The interest rate for Stafford (government backed) student loans is currently set at 3.4% and is set to double to 6.8 percent in July.<o:p></o:p></span>
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<span style="font-size: large;">As Warren explains, this student loan problem is a quiet but growing problem. She explains that taxpayers are investing in the big banks and that taxpayers should invest in our students. America should not be “drowning our students in debt while we give a great deal to the banks.” She points out that economists have stated that defaulted student debt poises a problem and barrier to the recovery of our economy. She concluded with a call to action and a reminder that students have only their voices, not lobbyists, to ask Congress for equal treatment.</span></div>
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<span style="font-size: large;">Why should our government make it so easy for Wall Street to skip out on debt while requiring students, our future, to jump hurdles and hire attorneys to obtain financial relief?</span></div>
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<span style="font-size: large;">Ms. Warren, a former Harvard law professor, understands the financial pressure faced by most Americans as she came from a working-class background, becoming a waitress at age 13 (after beginning as a babysitter at age 9). Ms. Warren has authored 9 books, including two best sellers.<span style="mso-spacerun: yes;"> </span>Let’s hope her efforts produce some meaning change.<o:p></o:p></span></div>
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<em><strong><span style="font-size: x-large;">If you are struggling with student loan debt, call us today to schedule a free consultation with attorney David L. Speckman.</span></strong></em></div>
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Speckman Law Firmhttp://www.blogger.com/profile/09553882190804763072noreply@blogger.com0tag:blogger.com,1999:blog-791782171766771692.post-82170636068603780722013-04-04T10:56:00.004-07:002013-04-04T10:57:32.890-07:00Catch David Speckman on Air!<div class="separator" style="clear: both; text-align: center;">
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Speckman Law Firmhttp://www.blogger.com/profile/09553882190804763072noreply@blogger.com0tag:blogger.com,1999:blog-791782171766771692.post-86993731538857991882013-04-03T14:24:00.003-07:002013-04-03T14:24:41.795-07:00Biggest Tax Time Mistake Is Not To File You Return<div class="separator" style="clear: both; text-align: center;">
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There are a lot of mistakes one can make at tax time. One of the leading mistakes, in fact it is absolutely the biggest, is to fail to file a tax return on time. That particular mistake can also cost a person plenty, especially if the person is in bankruptcy or needs to file bankruptcy.<br />
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The temptation not to file a return is sometimes great.<span style="mso-spacerun: yes;"> </span>One may know that s/he owes taxes, but is faced with a situation in which the money to pay the taxes is simply not available.<span style="mso-spacerun: yes;"> </span>This common situation may leave one confused as to how to best proceed.<span style="mso-spacerun: yes;"> </span>Unfortunately, the option often selected is to not file the return at all.<span style="mso-spacerun: yes;"> </span>This is in fact exactly the wrong way to proceed.<br />
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You see, the IRS penalizes you TEN TIMES as much for not filing a return as it does for just failing to pay the taxes owing! Ten times. The penalty for failure to file a return is 5% of the amount you owe; if you file the return but can’t pay the tax, the penalty is 1/2 of 1%.<br />
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Now, that this little fact impact a bankruptcy? Well, if you are considering a bankruptcy filing<span style="mso-spacerun: yes;"> </span>your bankruptcy attorney and bankruptcy trustee will require a copy of your most recently filed tax return.<span style="mso-spacerun: yes;"> </span>Delay in filing a tax return can (and usually does) result in delay in obtaining a bankruptcy discharge and may case a dismissal of the bankruptcy altogether.<span style="mso-spacerun: yes;"> </span>Moreover, a bankruptcy may actually help address the unpaid taxes.<span style="mso-spacerun: yes;"> </span>For instance, a Chapter 13 case will give the taxpayer up to five years to pay off the taxes, usually with no interest or penalties.<span style="mso-spacerun: yes;"> </span><br />
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So, file those tax returns – even if you do not not have all of the money to pay the taxes.<span style="mso-spacerun: yes;"> </span>If you have any questions and need help, call us to arrange a free consultation. <o:p></o:p><br />
Speckman Law Firmhttp://www.blogger.com/profile/09553882190804763072noreply@blogger.com0tag:blogger.com,1999:blog-791782171766771692.post-14752027081079421762013-04-03T14:03:00.001-07:002013-04-03T14:03:05.543-07:00Considering Filing Bankruptcy? Maybe You’re A Popular Celebrity<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">In the mid 80′s to early 90′s, a television show, “Lifestyles of the Rich and Famous” was one fo the most popular television shows, with its host, Robin Leach.<span style="mso-spacerun: yes;"> </span>The show trumped the everyday American how the rich and famous lived - often on exotic vacations. The “Rich” and Celebrities are often admired, imitated and fawned over in our society. But when you look closely, at those individuals, they are not any different from the average <span style="mso-spacerun: yes;"> </span>person on the street. <span style="mso-spacerun: yes;"> </span>Just like the average person, celebrities often find it beneficial to file for bankruptcy relief. While the celebrity lifestyle may be quite different then yours or mine, financial distress has the same effect on everyone. And everyone is entitled to a fresh start, no matter how many parapazzi stalk them. <span style="mso-spacerun: yes;"> </span>Listed below are a few (but certainly not all) bankruptcies of film and television stars as well as a partial list of other celebrities who have filed for bankruptcy protection..<o:p></o:p></span></div>
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<b><span style="font-family: 'Times New Roman','serif'; font-size: 18pt; mso-fareast-font-family: 'Times New Roman';">Film and Television Industry<o:p></o:p></span></b></div>
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<a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3dWXYMlCnRalnFpweeJsKiHw" target="_blank" title="Real Housewives of New Jersey"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Real Housewives of New Jersey</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">: Terese and Joe Giudice, Danielle Staub, Chris Manzo (his company)<o:p></o:p></span></div>
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<a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3dAY7Z07olOCKVsnNXrL8iSQ" target="_blank" title="Real Housewives of New York"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Real Housewives of New York</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">: Sonja Morgan<o:p></o:p></span></div>
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<a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3dasyCCsmHScYUkFd7XsyHgA" target="_blank" title="Real Housewives of Orange County"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Real Housewives of Orange County</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">: Alexis and Jim Bellino, Simon Barney, Tammy Knickerbocker, Lynne and Frank Curtin<o:p></o:p></span></div>
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<a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3dS3GZs_ZHAl_uMomoR6dQNg" target="_blank" title="Real Housewives of Atlanta"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Real Housewives of Atlanta</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">: Lisa Wu Hartwell<o:p></o:p></span></div>
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<a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3d0Yjwy5csPaJvLgB94X4deA" target="_blank" title="Real Housewives of Beverly Hills"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Real Housewives of Beverly Hills</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">: Taylor and Russell Armstrong<o:p></o:p></span></div>
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<a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3d9ITFrnSG2VqkP0mAq6Ek9A." target="_blank" title="Real Housewives of D.C."><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Real Housewives of D.C.</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">: Michaele and Tareq Salahi<o:p></o:p></span></div>
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<a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3d8oaadeSDBjStn2C1nyGOtg" target="_blank" title="Stephen Baldwin"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Stephen Baldwin</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">, one of the Baldwin brothers/acting family, featured in an article by </span><a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3dWB8HTxfSnSfQgrDmAhM8Yg" target="_blank" title="Carmen Dellutri"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Carmen Dellutri</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">,.<o:p></o:p></span></div>
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<a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3daY2L60pKTIot4R.8nAD8Jw" target="_blank" title="Gary Busey"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Gary Busey</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';"><o:p></o:p></span></div>
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<a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3dbBz4YOh_7Z.w3dMylD5dDw" target="_blank" title="Kim Basinger"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Kim Basinger,</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';"> who bought a town for $20 million right before she was sued for more than $8 million (breach of contract case)<o:p></o:p></span></div>
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<a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3da4lJYKKDKDc48g9BoOMjaQ" target="_blank" title="Lorraine Bracco"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Lorraine Bracco</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">, who admitted when interviewed that bankruptcy is a humbling experience.<o:p></o:p></span></div>
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<a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3dwj74QT5NPPZ97DAZupugpA" target="_blank" title="Tia Carrere"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Tia Carrere</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">, who was accused of filing bankruptcy to get out of her contract with ABC.<o:p></o:p></span></div>
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<a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3dlDfEOAjInAvmhEdGAlAdnQ" target="_blank" title="Gary Coleman"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Gary Coleman</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">, now deceased, but who was once the highest paid child actor in his era.<o:p></o:p></span></div>
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<a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3do12T3fw43_eWcrMj9iapdg" target="_blank" title="Francis Ford Coppola"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Francis Ford Coppola</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">, who had many box office successes, also had failures that put his studio at risk.<o:p></o:p></span></div>
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<a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3d54cOdj63LrQFhSFxWyoxrg" target="_blank" title="Walt Disney"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Walt Disney</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">, who created </span><a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3dY_q_OebQGHT0EpcBY8VuhQ" target="_blank" title="Mickey Mouse"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Mickey Mouse AFTER his bankruptcy</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';"> and went on to fantastic success as explained by </span><a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3dcG8cw8FcZ_8uoeU8iWkzSg" target="_blank" title="Rachel Foley"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Rachel Foley</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">, our Kansas attorney<o:p></o:p></span></div>
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<a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3d5GzGvaR_AdxA.l52pKr5Pg" target="_blank" title="Burt Reynolds"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Burt Reynolds</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">, whose bad investments caused his financial distress.<o:p></o:p></span></div>
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<a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3dQyS4b.ApJb1lkFslsXcWRg" target="_blank" title="Zsa Zsa Gabor"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Zsa Zsa Gabor</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">, who filed bankruptcy after losing a libel suit filed by </span><a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3dkJAO_7uajocVCbojm0eUzw" target="_blank" title="Elke Sommer"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Elke Sommer</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';"><o:p></o:p></span></div>
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<a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3dxYDpVunLKbgmg13brAi9JA" target="_blank" title="Mickey Rooney"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Mickey Rooney, </span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">who also became a </span><a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3dvKhr6878ajQvG2sIVMX9.Q" target="_blank" title="Elder Financial Abuse"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">victim of elder financial abuse</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';"> after his bankruptcy<o:p></o:p></span></div>
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<a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3dNbtVfUcTFwN4JTQWBm8AjQ" target="_blank" title="Corey Haim"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Corey Haim</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">, now deceased, filed for </span><a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3dENOiG0erXg42Suqu3U.StA" target="_blank" title="What is a Chapter 11"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Chapter 11 bankruptcy</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">. Haim was best known for his roles in Lost Boys and Lucas, both 80s films.<o:p></o:p></span></div>
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<a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3drTnXdW5SIK2rGTCPCwpkpQ" target="_blank" title="Don Johnson"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Don Johnson</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">, another actor who rose to success in the 80s.<o:p></o:p></span></div>
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<a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3dvs3vNl_mjwUdvPMg83tF1w" target="_blank" title="MArgot Kidder"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Margot Kidder</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">, actress, whose illness amplified the financial turmoil in her life in the late 80s and early 90s.<o:p></o:p></span></div>
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<a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3dIBzlh9N._pdYBBOIia.Hvw" target="_blank" title="Randy Quaid"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Randy Quaid</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">, another 80s star, who filed for bankruptcy in 2010s.<o:p></o:p></span></div>
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<a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3dOfJCUUF4J66Eob8cD5cNEA" target="_blank" title="Debbie Reynolds"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Debbie Reynolds</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">, who liquidated some of her memorabilia during the bankruptcy process.<o:p></o:p></span></div>
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<a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3deeu3urmcDlBLLQ9rBqurIA" target="_blank" title="John Wayne"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">John Wayne,</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';"><o:p></o:p></span></div>
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<a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3dxeJ1XJey6GSD0cQSwUpDtw" target="_blank" title="Brett Weiss"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Brett Weiss</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">.<o:p></o:p></span></div>
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<b><span style="font-family: 'Times New Roman','serif'; font-size: 18pt; mso-fareast-font-family: 'Times New Roman';">Famous for being Famous Celebrities<o:p></o:p></span></b></div>
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<a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3dS8RxWJqmVblM9ixvXueKvw" target="_blank" title="Nadya Shulman"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Nadya Shuleman</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';"> (who ended up dismissing her bankruptcy as explained by our Georgia member, Jonathan Ginsberg)<o:p></o:p></span></div>
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<a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3dz5Cwn_EAEEyy_I_X7k1Iqg" target="_blank" title="Heidi Fleiss"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Heidi Fleiss</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">, aka the Hollywood Madam.<o:p></o:p></span></div>
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<a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3d_2zYQGyUNYzTAIMgIiGUdg" target="_blank" title="John Wayne Bobbitt"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">John Wayne Bobbitt</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">, whose angry wife dismembered him, filed for bankruptcy, went on to become a<a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3dReCJuxD7VTIz5rIT4_O6Ng" target="_blank" title="John Wayne Bobbitt"><span style="color: blue;"> adult film star. </span></a><o:p></o:p></span></div>
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<a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3dEGzQj76OKkBYnJ1lJf0WJA" target="_blank" title="Casey Anthony"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Casey Anthony</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">, who was found not guilty for the murder of her child while most of America believes that the wrong verdict was reached.<o:p></o:p></span></div>
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<a href="https://mail.ex1.secureserver.net/owa/redir.aspx?C=63ddc354619e4204a13f3e6241e518fd&URL=http%3a%2f%2fclicks.aweber.com%2fy%2fct%2f%3fl%3d7jOcg%26m%3d3XUC_sn0t8aha0A%26b%3dGvew.3wMsdO.obi.9XCVlQ" target="_blank" title="Anna Nicole Smith"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Anna Nicole Smith</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">, whose real name was “Vicki Lynn Marshall”, rose to fame as the 1993 Playboy Bunny of the Year. In 1994, she married J. Howard Marshall, a wealthy 89 year old. In 1995, Marshall died. <o:p></o:p></span></div>
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Speckman Law Firmhttp://www.blogger.com/profile/09553882190804763072noreply@blogger.com0tag:blogger.com,1999:blog-791782171766771692.post-46513828158184899752013-03-21T15:59:00.002-07:002013-03-21T15:59:45.105-07:00Want to Meet Speckman Law Firm?!<div class="separator" style="clear: both; text-align: center;">
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Speckman Law Firmhttp://www.blogger.com/profile/09553882190804763072noreply@blogger.com0tag:blogger.com,1999:blog-791782171766771692.post-38666140751875866182013-03-21T15:54:00.001-07:002013-03-21T15:54:54.441-07:00Got your bankruptcy discharge? Great! You’re on your way to a fresh start.<br />
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Now you’ve got work to do.<br />
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◊ <strong>List the debts that didn’t get discharged.<span style="mso-spacerun: yes;"> </span></strong>Family support, recent taxes, student loans, or taxes for years for which you haven’t filed bankruptcy are not dischargeable in bankruptcy. The discharge order does not say which debts survive the process – or ask your attorney.<br />
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◊ <strong>Verify lien balances</strong> The discharge eliminates your personal liability for dischargeable debts; liens survive. If you plan to keep a house or car encumbered with liens, find out what you owe and resume payments. Otherwise, the creditor can enforce its lien by foreclosure or repossession.<br />
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◊ <strong>Rearrange banking </strong>Online banking and automatic bill pay may have been disabled while you were in bankruptcy.<br />
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◊ <strong>Set up automatic savings </strong>Bankruptcy probably brought home to you how little net worth you have and how thin the safety net is. Arrange for automatic savings for both an emergency fund and for retirement.<br />
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◊ <strong>Save your bankruptcy papers</strong>- You’re nearly certain to encounter efforts by buyers of zombie debts to collect debts that have been discharged in your case. You need to be able to show that the debt was scheduled in your case. Creditors with notice, and those they sell their worthless accounts to without notice, were discharged.<br />
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◊ <strong>Join a credit union </strong>Credit unions are owned by their members. They are in business to make loans to members. Rates are usually better than the banks, and the profits flow to members. About the only kinds of credit I’m enthusiastic about are car loans and home loans. Plan to be eligible to apply for a loan by joining now.<br />
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◊ <strong>Check insurance coverage</strong> If you elected to surrender property through the bankruptcy that still stands in your name, make sure that you are insured for liability. Liaibility insurance covers you for claims of anyone injured on your property. Electing to surrender property doesn’t take you off title til someone else goes on title. Don’t let post bankruptcy claims arising from property you’re trying to get rid of spoil your fresh start.<br />
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◊ <strong>Pull a credit report</strong> Several months after your discharge, check your credit report to make sure all discharged debts reflect a zero balance. The ugly history can properly remain, but you are entitled to a showing that you now owe nothing.<o:p></o:p><br />
Take advantage of the opportunity that bankruptcy has provided, and go forth and prosper. <o:p></o:p><br />
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Speckman Law Firmhttp://www.blogger.com/profile/09553882190804763072noreply@blogger.com0tag:blogger.com,1999:blog-791782171766771692.post-21479477458759894622013-03-21T15:41:00.001-07:002013-03-21T15:43:16.338-07:00CAN THE IRS IGNORE A BANKRUPTCY?The bankruptcy stay is the first major benefit for the debtor when a bankruptcy is commenced. Immediately after the filing fee is paid and a petition is filed, virtually every type of collection activity is called to a halt. An order is entered by the bankruptcy court under 11 USC Section 362 prohibiting nearly all creditors from taking any type of collection action. After months or even years of calls, letters and perhaps wage garnishment the automatic stay of the bankruptcy court is a welcome relief indeed. But does it stop everyone? Does it stop even the Internal Revenue Service?<br />
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While there are few exceptions to the protection a debtor in bankruptcy is given by the automatic stay, collection by the IRS is not among them. That is to say, even the IRS is prohibited from collecting after the petition has been filed. While the IRS can continue to audit tax returns during a bankruptcy proceeding, and may even determine that a tax is due, it cannot start or continue enforced collection. The IRS must stop any wage levy and if it files a tax lien after the bankruptcy petition has been filed, it must withdraw the lien.<o:p></o:p><br />
What happens if the bankruptcy automatic stay is violated? Well, as a general principal, if a creditor violates the automatic stay by accident, it must return the money or stop the collection action as soon as it learns about the bankruptcy. However, if the stay violation is done willfully (ie., on purpose), then the creditor faces serious penalties as federal law provides strong remedies for the debtor. After a willful stay violation, the debtor can not only recover the money or property that was wrongfully taken, attorney fees and even punitive damages may be available.<br />
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The IRS instructs its collectors to stop all collection activities when they learn of a bankruptcy. In spite of these instructions, there are times when an overzealous tax collector violates the automatic stay on purpose. While some statutory remedies are available, the debtor cannot recover punitive damages against the government. Special rules apply and, based on 26 USC §7433 (d)(1) an aggrieved taxpayer in bankruptcy must first go through IRS administrative process to fix the problem. Treasury Regulation 301.7433-2(d)(1) sets out a procedure that must first be followed before any damages can be recovered from the IRS. <o:p></o:p><br />
Despite the additional requirements of IRS regulations, the bankruptcy stay remains powerful protection from the tax collector. There are few other situations in which the debtor can tell the IRS to stop collections and count on the court to back them up. If you are being harassed by the IRS, call us today for a free consultation.<o:p></o:p><br />
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Speckman Law Firmhttp://www.blogger.com/profile/09553882190804763072noreply@blogger.com0tag:blogger.com,1999:blog-791782171766771692.post-37465003225153504622012-12-27T08:32:00.002-08:002012-12-27T08:32:26.158-08:00Can Bankruptcy Be A Part Of Wise Financial Planning?In short, YES.<span style="mso-spacerun: yes;"> </span>There are basic commonalities that seem to flow through all financial planning advice – such as, live within your means and save for the future. <span style="mso-spacerun: yes;"> </span>The path to reach those goals, however, can be vary greatly depending upon who is giving the advice.<br />
<span style="mso-spacerun: yes;"> </span><o:p></o:p><br />
As a bankruptcy attorney who holds an MBA degree and who formally worked as a CPA, I spend many hours a week counseling clients on how to develop a household budget, foster proper spending habits, and develop realistic saving goals.<span style="mso-spacerun: yes;"> </span>In working with clients, I try to look at each situation broadly and realistically.<span style="mso-spacerun: yes;"> </span>More often than not, the main inhibitor to saving for the future is overbearing debt.<span style="mso-spacerun: yes;"> </span>Simply put, once a person sheds their debt, the individual/family will see an immediate increase in disposable income.<span style="mso-spacerun: yes;"> </span>Disposable income can then be put to work to build a stronger financial future. <br />
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So, why is bankruptcy not on the usual list of discussion topics of financial planners? Well, because these professionals are typically not attorneys and they are prohibited from giving legal advice.<span style="mso-spacerun: yes;"> </span>Further, they often lack a solid understanding of how bankruptcy can be used as a positive tool to move someone toward financial freedom.<span style="mso-spacerun: yes;"> </span>Lastly, for some, they simply have a financial incentive to steer people away from bankruptcy and into more costly and complex work-out solutions.<br />
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To be sure, bankruptcy is not a proper option for everyone.<span style="mso-spacerun: yes;"> </span>However, when used appropriately, bankruptcy is an inexpensive and effective tool in well-rounded financial planning.<span style="mso-spacerun: yes;"> </span>Consider that Donald Trump, Thomas Edison, Walt Disney, and Benjamin Franklin all filed personal bankruptcy. Where these individuals financially unsuccessful? <span style="mso-spacerun: yes;"> </span>Not by any measure.<span style="mso-spacerun: yes;"> </span>So, why should you (or anyone) be treated differently?<span style="mso-spacerun: yes;"> </span><br />
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My focus as a bankruptcy attorney is to find the best solution(s) for my clients.<span style="mso-spacerun: yes;"> </span>In doing so, I will regularly consider many different legal and non-legal options, including non-bankruptcy options. <span style="mso-spacerun: yes;"> </span>I look at my role as a bankruptcy attorney to include putting the client on the right track once the case is over so that s/he will have a brighter financial future and be able to reach those long term goals of living within one’s means and saving for the future.<span style="mso-spacerun: yes;"> </span><br />
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If you feel a bit overwhelmed by your debt, act now by giving us a call.<span style="mso-spacerun: yes;"> </span>We’ll have a frank and candid discussion of all your financial planning options.<span style="mso-spacerun: yes;"> </span>The sooner you act the sooner you can map out a plan to get yourself on track for a brighter financial future. <br />
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Speckman Law Firmhttp://www.blogger.com/profile/09553882190804763072noreply@blogger.com0tag:blogger.com,1999:blog-791782171766771692.post-20145333245318669532012-10-26T08:14:00.003-07:002012-10-26T08:14:31.377-07:00CONSUMER ALERT<div style="text-align: center;">
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiTuAdbe9_nT5ksoSinXm4jAIWhc1sVlx1e_L15n6ljyhcQlzeD_p3QAdN4O2hTo8NOa_inKTyO3VyvnCECYPdvNgXdvghm0e8KdkbQfnXNlAGTKGJFWz3402akRAXRDUPVCYYyXwymvruv/s1600/nacba.png" imageanchor="1" style="clear: left; cssfloat: left; float: left; height: 135px; margin-bottom: 1em; margin-right: 1em; width: 179px;"><img border="0" height="135" oea="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiTuAdbe9_nT5ksoSinXm4jAIWhc1sVlx1e_L15n6ljyhcQlzeD_p3QAdN4O2hTo8NOa_inKTyO3VyvnCECYPdvNgXdvghm0e8KdkbQfnXNlAGTKGJFWz3402akRAXRDUPVCYYyXwymvruv/s200/nacba.png" width="200" /></a><strong>CONSUMER ALERT </strong></div>
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<strong>THE DEBT SETTLEMENT TRAP: </strong></div>
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<strong>THE #1 THREAT FACING </strong></div>
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<strong>DEEPLY INDEBTED AMERICANS </strong></div>
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<strong>October 2012 </strong></div>
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Already struggling with home foreclosures, harsh bank and credit card fees, and other <br />major financial challenges, America’s most deeply indebted consumers are now falling <br />victim to a major new threat: so-called “debt settlement” schemes that promise to make <br />clients “debt free” in a relatively short period of time. Unfortunately, most consumers who <br />pursue debt settlement services find themselves facing not relief but even steeper financial <br />losses. </div>
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Even the industry acknowledges – though not in its ever-present radio and online <br />advertising–that debt settlement schemes fail to work for about two thirds of clients. <br />Federal and state officials put the debt-settlement success rate even lower – at about one in <br />10 cases – meaning that the vast majority of unwary and uninformed consumers end up <br />with more red ink, not the promised debt-free outcome. </div>
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There is now widespread documentation of the danger that debt settlement schemes pose to <br />consumers. The Better Business Bureau has designated debt settlement as an “inherently <br />problematic business.”1 Similarly, the New York City Department of Consumer Affairs <br />called debt settlement “the single greatest consumer fraud of the year.” Across the country, <br />the U.S. Government Accountability Office (GAO),2 the Federal Trade Commission (FTC), <br />41 state attorneys general,3 consumer and legal services entities,4 and consumer. Comments of Consumer Federation of bankruptcy attorneys have all uncovered substantial evidence of abuses by a wide range of debt settlement companies. <o:p></o:p></div>
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<strong><u>KNOW THE HALLMARKS OF DEBT SETTLEMENT TRAPS </u></strong></div>
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Debt settlement companies are for-profit entities that offer to negotiate with creditors to <br />reduce the amounts owed by a debt-strapped consumer. They typically charge steep fees for <br />every settlement they achieve. In some cases, they charge very high fees even without <br />obtaining any settlements. </div>
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Here are the “red flags” that consumers need to know about when dealing with debt-<br />settlement firms: </div>
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<strong><em>Debt-settlement schemes encourage consumers to default on their debts. </em></strong>Because creditors frequently will not negotiate reduced balances with consumers who are still current on their bills, debt settlement companies often instruct their clients to <br />stop making monthly payments, explaining that they will negotiate a settlement with funds the client has paid in lieu of their monthly debt repayments. Once the client defaults, he or she faces fines, penalties, higher interest rates, and are subjected to increasingly aggressive debt-collection efforts including litigation and wage garnishment. Consequently, consumers often find themselves worse off than when the <br />process of debt settlement began: They are deeper in debt, with their credit scores severely harmed. </div>
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<strong><em>Debt settlement often makes a bad problem even worse.</em></strong> When a consumer defaults on his or her debt, the overall debt burden can rise quickly. As accumulating penalties and interest charges inflate the consumer’s debt-load, creditors begin <br />collection efforts and many eventually sue. This is why debt settlement is always a gamble: If any of the creditors refuse to settle, the consumer is left worse off than when they started. </div>
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<strong><em>The painful bottom line is that most consumers lose the debt settlement gamble.</em></strong> In most cases, the consumer loses the gamble: The debt settlement company is unable to settle with all the consumer’s creditors, so the consumer’s unsettled debts rapidly grow out of control. Even debt settlement companies acknowledge that only about a third (34.4 percent) of debt settlement clients have at least 70 percent of their debts <br />settled after three years in the program.5 The industry acknowledges that debt settlement is unsuccessful for two-thirds of their clients. According to a Government Accountability Office investigation of debt settlement, even the industry’s extremely low success rate is overly optimistic.6 The FTC and state attorneys general found that less than 10 percent of consumers successfully complete these programs.7 </div>
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<strong><em>Even “successful” debt settlements can come with a high price.</em></strong> The few consumers who are successful in debt settlement may find themselves with another unexpected bill: tax liability. Depending on the consumer’s financial condition, the amount of savings realized from debt settlement can be considered taxable income. Credit card companies and other creditors may report a debt reduction to the IRS. Unless the consumer is considered insolvent, the IRS considers it income and the consumer will be on the hook to pay taxes on it. </div>
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<strong><em>The problem is not limited to “bad actors” since the debt-settlement approach itself is flawed.</em></strong> Debt settlement schemes are a trap for most consumers because inherent in the industry’s standard business model is the requirement that clients breach their contractual obligations with creditors. </div>
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<u><strong>CASE STUDIES OF DEBT-SETTLEMENT VICTIMS </strong></u></div>
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When Cipriano and Shelia, of Vallejo, CA, approached a Florida-based debt settlement company, the couple had approximately $60,000 in credit card debt. While grossly <br />miscalculating the couple’s monthly expenses and income, the firm advised them that they need only pay a total of $31,200.00, including the firm’s fees, and that they’d save <br />approximately $28,800 as a result. The firm took an initial service fee of $6,900 and continued collecting monthly “set-aside” funds in payments of $460 and later $230. The firm’s method of evaluating the couple’s ability to participate in a debt repayment plan not only was flawed, but the firm never provided any information to prove that they could secure more favorable terms from the settlement than the couple might obtain on their own or through bankruptcy. Ultimately they could not afford to save enough money to settle their debts and received none of the benefits from the debt settlement <br />program that they expected. </div>
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Sewnarine, of Newark, NJ, is a hardworking immigrant limo driver who owns his house and rents out rooms to make ends meet. When he lost his job for a short period, Sewnarine saw an ad by a debt settlement company and called. Sewnarine had limited literacy skills and could not read and understand the agreements he signed. Even though he was unemployed and had no income other than his rental income, the debt settlement company took $1,200 from his account and eventually lowered his payments to $567 per month. Sewnarine paid a total of $5,152 to the debt settlement company. He quit the debt settlement when he was sued by his creditors for debts of $13,000 and $5,000. Despite having paid over $5,000 to the debt settlement company, Sewnarine was told he didn’t have enough funds to settle either debt. The debt settlement company kept over $5,800 in fees when Sewnarine quit the program, despite having settled none of his accounts. Shortly after, the debt settlement company filed for bankruptcy, leaving Sewnarine with no recovery whatsoever. </div>
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Perry of Highland Lakes, NJ, is a union glazier who started out with $60,000 in unsecured debt. Although he was current on all of his debts, Perry saw an advertisement for a debt-settlement company in November 2009, and jumped at their <br />offer that for $500 per month he could be debt free in three to four years. He started paying into their “savings account” and was immediately sued by two large credit card companies. Although Perry paid $9,510 to the debt settlement company, they told him he didn’t have enough money in his “account” to settle so he’d have to have a default entered or file an answer. Perry is now filing a Chapter 13 bankruptcy. His credit has <br />been ruined as a result of his dealing with the debt-settlement company. </div>
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<strong><u>WHAT TO AVOID</u></strong> </div>
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Steer clear of any companies that: </div>
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<strong><em>Make promises that unsecured debts can be paid off for pennies on the dollar.</em></strong> There is no guarantee that any creditor will accept partial payment of a legitimate debt. Your best bet is to contact the creditor directly as soon as you have problems making payments. </div>
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<strong><em>Require substantial monthly service fees and demand payment of a percentage of what they’ve supposedly saved you.</em></strong> Most debt settlement companies charge hefty fees for their services, including a fee to establish the account with the debt negotiator, a monthly service fee, and a final fee-- a percentage of the money you’ve allegedly saved. </div>
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<em><strong>Tell you to stop making payments or to stop communicating with your creditors.</strong></em> If you stop making payments on a credit card or other debts, expect late fees and interest to be added to the amount you owe each month. If you exceed your credit limit, expect additional fees and charges to be added. Your credit score will also suffer as a result of not making payments. </div>
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<strong><em>Suggest that there is only a small likelihood that you will be sued by creditors.</em></strong> In fact, this is a likely outcome. Signing up with a debt settlement company makes it more likely that creditors will accelerate collection efforts against you. Creditors have the right to sue you to recover the money you owe. And sometimes when creditors win a lawsuit, they have the right to garnish your wages or put a lien on your home. </div>
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<em><strong>State that they can remove accurate negative information from your credit report.</strong></em> No company or person can remove negative information from your credit report that is accurate and timely. </div>
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<strong><u>HOW TO GET REAL HELP FOR DEBT RELIEF </u></strong></div>
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Many different kinds of services claim to help people with debt problems. The truth is that no single solution will work for everyone. Bankruptcy is an option that makes sense for <br />some consumers, but it’s not for everyone. For example, the National Association of Consumer Bankruptcy Attorneys and its individual consumer bankruptcy attorney members do not encourage every person who looks at bankruptcy to enter into it. What makes sense for each consumer will depend on their individual circumstances: </div>
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If you have just a single debt that you are having trouble paying (a single credit card debt for example) and you have cash on hand that can be used to settle the debt, you may be able to negotiate favorable settlement terms with the creditor yourself. Creditors typically require anywhere from 25 to 70 percent on the dollar to settle a debt so you will need that much cash for a successful offer. Be sure to get an explicit written document from the creditor spelling out the terms of the debt settlement and relieving you of any future liability. Also be prepared to pay income taxes on any of the forgiven debt. </div>
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If, like most people, you owe multiple creditors and do not have the cash on hand to settle those debts, you may want to consult a non-profit credit counseling agency to see <br />if there is a way for you to get out of debt. But make sure to check it out first: Just because an organization says it’s a “nonprofit” there is no guarantee that its services are <br />free, affordable or even legitimate. Some credit counseling organizations charge high fees (which may not be obvious initially) or urge consumers to make “voluntary” <br />contributions that may lead to more debt. The federal government maintains a list of government-approved credit counseling organizations, by state, at <a href="http://www.usdoj.gov/ust">www.usdoj.gov/ust</a>. <br />If a credit counseling organization says it is government-approved, check them out first. </div>
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Consult with a bankruptcy attorney about your options. Bankruptcy is a legal proceeding that offers a fresh start for people who face financial difficulty and can’t repay their debts. If you are facing foreclosure, repossession of your car, wage garnishment, utility shut-off or other debt collection activity, bankruptcy may be the <br />primary types of only option available for stopping those actions. There are two primary types of personal bankruptcy: Chapter 7 and Chapter 13. Chapter 13 allows people with a <br />stable income to keep property, such as a house or car, which they may otherwise lose through foreclosure or repossession. In a Chapter 13 proceeding, the bankruptcy court approves a repayment plan that allows you to pay your debts during a three-to-five year period. After you have made all the payments under the plan, you receive a discharge of all or most remaining debts. For tax purposes, a person filing for bankruptcy is considered insolvent and the forgiven debt is not considered income. Chapter 7 also eliminates most debts without tax consequences, and without any loss of property in <br />over 90 percent of cases. To learn more about bankruptcy and whether it makes sense for you, go to <a href="http://www.nacba.org/Home/AttorneyFinderV2.aspx">http://www.nacba.org/Home/AttorneyFinderV2.aspx</a>. </div>
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<br /><u><strong>ADDITIONAL RESOURCES: </strong></u></div>
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Center for Responsible Lending: Debt Settlement <br />(<a href="http://www.responsiblelending.org/other-consumer-loans/debt-settlement/">http://www.responsiblelending.org/other-consumer-loans/debt-settlement/</a>) </div>
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Federal Trade Commission: Debt Relief Services <br />(<a href="http://ftc.gov/bcp/edu/microsites/moneymatters/dealing-with-debt-relief-services.shtml">http://ftc.gov/bcp/edu/microsites/moneymatters/dealing-with-debt-relief-services.shtml</a>) </div>
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National Association of Consumer Bankruptcy Attorneys </div>
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(<a href="http://www.nacba.org/">http://www.nacba.org</a>) </div>
Speckman Law Firmhttp://www.blogger.com/profile/09553882190804763072noreply@blogger.com0tag:blogger.com,1999:blog-791782171766771692.post-6088914296357028032012-10-17T09:53:00.003-07:002012-10-17T09:53:57.500-07:00What does the "do nothing" option mean?When facing insurmountable debt and the stress that comes with it, one option is to do nothing at all. I call this the “do nothing” option.<o:p></o:p><br />
To understand the “do nothing” option and to consider whether it is a viable choice, one must understand a little about collections law—that is, how does a judgment creditor go about collecting money owed.<o:p></o:p><br />
Typically, collection begins with “informal” efforts against the debtor.<span style="mso-spacerun: yes;"> </span>These efforts include a barrage of telephone calls, letters, contacting others, such as employers, family members, and friends.<span style="mso-spacerun: yes;"> </span>If these efforts fail, the lender will likely file a lawsuit.<span style="mso-spacerun: yes;"> </span>When that occurs, the debtor will be faced with the choice of defending the case or defaulting.<span style="mso-spacerun: yes;"> </span>Defending the lawsuit will require money – and lots of it.<span style="mso-spacerun: yes;"> </span>Defaulting will result in a judgment being entered roughly 60 days later. <o:p></o:p><br />
Once the creditor obtains a judgment against the debtor, a judgment lien will be filed, which attaches automatically to any real estate that the debtor owns in the county in which the judgment is docketed – this applies to all property the debtor owns at the time or may acquire in the future!<span style="mso-spacerun: yes;"> </span>In addition, a creditor can have a sheriff’s deputy “execute” or “levy” on certain personal property – including bank accounts, investment accounts, vehicles, motorcycles, boats, etc.<span style="mso-spacerun: yes;"> </span>If the attached asset is cash or funds from a bank account, the money will be handed over to the creditor.<span style="mso-spacerun: yes;"> </span>If the item is a vehicle, boat, or other non-monetary asset, the property will be sold at a public auction and the net proceeds delivered to the creditor up to the full amount of the debt owing.<o:p></o:p><br />
In most states, a debtor is allowed to exempt a limited amount of property. For example, in California, a debtor is allowed to claim a homestead exemption in his/her primary residence.<span style="mso-spacerun: yes;"> </span>The amount of the homestead depends on several factors, including one’s age and how title is held. With a few other exceptions, however, most property owned by the debtor is subject to levy and/or attachment.<span style="mso-spacerun: yes;"> </span>To be sure, there is little to no warning that an attachment order and usually the seizure of the assets comes as a complete surprise to the debtor.<span style="mso-spacerun: yes;"> </span>For instance, when the debtor try to withdraw some cash from an ATM and leans that his bank account has been wiped or when the debtor gets ready to leave for work and sees that her can has been taken.<span style="mso-spacerun: yes;"> </span>Ouch! <o:p></o:p><br />
The debtor’s income is also at risk.<span style="mso-spacerun: yes;"> </span>The creditor can obtain a garnishment order so that a large amount of money will be taken directly from the debtor’s pay-check pay period.<span style="mso-spacerun: yes;"> </span>Having one’s pay-check cut by a third with no prior warning can create some serious problems when it comes to paying rent, a mortgage, a car or food for the family.<span style="mso-spacerun: yes;"> </span><o:p></o:p><br />
Bankruptcy will stop ALL collection efforts in their tracks.<span style="mso-spacerun: yes;"> </span>Once the debtor has filed a voluntary bankruptcy petition, creditors are prohibited by federal law from taking any further collection actions.<span style="mso-spacerun: yes;"> </span>No wage garnishments, no levies, no attachments of bank accounts.<span style="mso-spacerun: yes;"> </span>Creditors are even prohibited from contacting the debtor by phone or mail.<span style="mso-spacerun: yes;"> </span>Depending upon the nature of the debt/judgment, the odds are high that the entire obligation will be wiped out and discharged by the bankruptcy.<span style="mso-spacerun: yes;"> </span>There is no doubt that for most people facing a debt problem, bankruptcy will save the debtor significant money, return peace-of-mind, and help avoid a surprise attack by the creditor. Filing bankruptcy may also eliminate judgment liens against real and personal property.<span style="mso-spacerun: yes;"> </span><o:p></o:p><br />
The “do nothing” option rarely works out well for the debtor.<span style="mso-spacerun: yes;"> </span>Ignoring a financial problem does not make the problem go away.<span style="mso-spacerun: yes;"> </span>When the alternative is to do nothing, bankruptcy is the far more responsible way of handing a debt problem.<span style="mso-spacerun: yes;"> </span>For yourself and your family, you deserve to get out of debt and to have an opportunity to begin building a better financial future. Call us today to arrange a free confidential consultation with an experienced attorney to discuss the pros and cons of filing bankruptcy. <o:p></o:p><br />
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Speckman Law Firmhttp://www.blogger.com/profile/09553882190804763072noreply@blogger.com0tag:blogger.com,1999:blog-791782171766771692.post-61325534386130565412012-09-24T14:22:00.004-07:002012-09-24T14:22:57.280-07:00Don't give up the fight to save your home!<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
<b><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">The fight to save your home is not easy.<span style="mso-spacerun: yes;"> </span>To help, we have gathered some relevant links and points of contact.<span style="mso-spacerun: yes;"> </span>Don’t give up.</span></b><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';"><o:p></o:p></span></div>
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<b><span style="font-family: 'Times New Roman','serif'; font-size: 13.5pt; mso-fareast-font-family: 'Times New Roman';">HAMP<o:p></o:p></span></b></div>
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<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">HAMP stands for Home Affordable Mortgage Program. The federal government offers the </span><a href="http://money.cnn.com/2012/01/27/real_estate/hamp_program/index.htm" target="_blank" title="CNN article on recent changes to HAMP"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">lenders financial incentives to modify mortgage</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">s and even reduce principal.<o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Eligibility starts with home loans with principal balances under $729,750 on single family homes that is your principal residence. Not all lenders participate, and not all loans qualify. Here’s the </span><a href="http://www.bankruptcylawnetwork.com/home-mortgage-first-aid-kit/hamp-for-homeowners-in-bankruptcy-faqs-english/"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">HAMP FAQ</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';"><o:p></o:p></span></div>
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<b><span style="font-family: 'Times New Roman','serif'; font-size: 13.5pt; mso-fareast-font-family: 'Times New Roman';">FHA HAMP<o:p></o:p></span></b></div>
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<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">If your loan is insured by the Federal Housing Administration, there’s a </span><a href="http://www.makinghomeaffordable.gov/programs/lower-payments/Pages/fha-hamp.aspx" target="_blank"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">separate program for loan modification</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">. Call FHA’s National Servicing Center at (877) 622-8525 for more information.<o:p></o:p></span></div>
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<b><span style="font-family: 'Times New Roman','serif'; font-size: 13.5pt; mso-fareast-font-family: 'Times New Roman';">National Mortgage Settlement<o:p></o:p></span></b></div>
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<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">This isn’t a program so much as a requirement that the five biggest servicers provide billions in concessions to borrowers to atone for their misdeeds. The settlement has its own </span><a href="http://www.nationalmortgagesettlement.com/" target="_blank"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">website</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';"> and a</span><a href="https://www.mortgageoversight.com/" target="_blank"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';"> court appointed monitor</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';"> to make sure the banks do what they are required by the settlement to do. The monitor wants to hear about difficulties the public has with the banks involved. Here’s where to</span><a href="https://www.mortgageoversight.com/where-can-i-find-help/" target="_blank"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';"> lodge a complaint</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">. If your servicer is one of these banks, you may be eligible for help.<o:p></o:p></span></div>
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<li class="MsoNormal" style="line-height: normal; margin: 0in 0in 10pt; mso-list: l1 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><a href="https://www.gmacmortgage.com/finform/hhstart.htm" target="_blank"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Ally/GMAC</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';"><o:p></o:p></span></li>
<li class="MsoNormal" style="line-height: normal; margin: 0in 0in 10pt; mso-list: l1 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><a href="http://homeloanhelp.bankofamerica.com/en/index.html?cm_sp=CRE-Mortgage-Refi-_-Home%20Loan%20Assistance%20Q3-_-MR16000S_marketing%20strip_%20ooo-123_hp_lahUmbrella-o" target="_blank"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Bank of America</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';"><o:p></o:p></span></li>
<li class="MsoNormal" style="line-height: normal; margin: 0in 0in 10pt; mso-list: l1 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><a href="https://www.citimortgage.com/Mortgage/displayHomeOwnerAssistance.do?page=overview" target="_blank"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Citi</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';"><o:p></o:p></span></li>
<li class="MsoNormal" style="line-height: normal; margin: 0in 0in 10pt; mso-list: l1 level1 lfo2; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in;"><a href="https://www.chase.com/chf/mortgage/keeping-your-home" target="_blank"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">JPMorgan Chase </span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';"><o:p></o:p></span></li>
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<b><span style="font-family: 'Times New Roman','serif'; font-size: 13.5pt; mso-fareast-font-family: 'Times New Roman';">Fannie & Freddie<o:p></o:p></span></b></div>
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<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">The settlement does not extend to loans owned by Fannie Mae and Freddie Mac, the giant buyers of home loans. They are now in government receivership.<o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Fannie maintains a </span><a href="http://www.knowyouroptions.com/" target="_blank"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">site listing options for Fannie Mae loans.</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';"><o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Freddie followed suit with its </span><a href="http://www.freddiemac.com/singlefamily/service/standard_modification.html" target="_blank"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">resources for modify Freddie Mac loans.</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';"><o:p></o:p></span></div>
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<b><span style="font-family: 'Times New Roman','serif'; font-size: 13.5pt; mso-fareast-font-family: 'Times New Roman';">If your loan doesn’t qualify for any of the above:<o:p></o:p></span></b></div>
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<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">The mortgage modification programs above focus on owner occupied homes with mortgages under a certain limit. Banks have their own modification programs for loans that do not qualify for a “standard” modification. Contact the lender directly for loss mitigation or foreclosure prevention programs.<o:p></o:p></span></div>
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<b><span style="font-family: 'Times New Roman','serif'; font-size: 13.5pt; mso-fareast-font-family: 'Times New Roman';">Getting the runaround?<o:p></o:p></span></b></div>
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<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Trouble with lenders and servicers seems to be everywhere. The new Consumer Financial Protection Bureau wants to hear </span><a href="https://help.consumerfinance.gov/app/mortgage/ask" target="_blank"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">complaints about servicers.</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';"><o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Some people have had some success asking their Representative in Congress and our US Senators for help getting the attention of the lender.<o:p></o:p></span></div>
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<b><span style="font-family: 'Times New Roman','serif'; font-size: 13.5pt; mso-fareast-font-family: 'Times New Roman';">Free counseling<o:p></o:p></span></b></div>
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<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">The federal government’s Housing and Urban Development Department certifies counselors who can help you understand your options for your home. Their services are free and reliable.<o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">Find a</span><a href="http://portal.hud.gov/hudportal/HUD?src=/i_want_to/talk_to_a_housing_counselor" target="_blank"><span style="color: blue; font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';"> housing counselor near you.</span></a><span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';"><o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-fareast-font-family: 'Times New Roman';">The bitter truth about loan modifications is that lenders are largely indifferent to the borrower’s troubles and grossly inefficient in processing applications. Success requires dogged determination. Do not take no for an answer. Reapply, seek help from your governmental representatives, and consider whether a Chapter 13 case and the supervision of a judge would even the odds – it usually does.<span style="mso-spacerun: yes;"> </span>In fact, loan modifications are often easier to obtain inside of the protection of a Chapter 13 bankruptcy than outside.<span style="mso-spacerun: yes;"> </span>Call us today to learn more.<o:p></o:p></span></div>
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Speckman Law Firmhttp://www.blogger.com/profile/09553882190804763072noreply@blogger.com0tag:blogger.com,1999:blog-791782171766771692.post-47796903916902810152012-08-29T12:42:00.001-07:002012-08-29T12:42:30.016-07:005 Positive Things That Filing Bankruptcy Can Do For You<div class="MsoNormal" style="margin: 0in 0in 10pt;">
<span style="font-family: 'Arial','sans-serif';">I am often asked about the pros and cons of filing for bankruptcy protection.<span style="mso-spacerun: yes;"> </span>I tell them simply that I can name 5 positive things right off the top of my head that bankruptcy can do.<span style="mso-spacerun: yes;"> </span>Of course there are more and this list is not exclusive:<o:p></o:p></span></div>
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<span style="font-family: 'Arial','sans-serif';">1. The Automatic Stay – Hands down the leading benefit of <span style="mso-spacerun: yes;"> </span>filing for bankruptcy protection is the automatic stay, which immediately stops most creditors and collection actions in their tracks.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
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<span style="font-family: 'Arial','sans-serif';">2. Debt Relief – A key goal of a bankruptcy filing is often to obtain a Discharge from one’s debts.<span style="mso-spacerun: yes;"> </span>A Discharge acts as an injunction to prevent a creditor (or most any other debt collector) from attempting to collect on any dischargeable debt included in the bankruptcy.<o:p></o:p></span></div>
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<span style="font-family: 'Arial','sans-serif';">3. Stripping a Second Mortgage from One’s Home – The process of “lien stripping” is reserved for Chapter 13 cases – although a recent decision by the 11th Circuit Court of Appeals may pave the way for stripping second mortgages in Chapter 7 bankruptcies as well.<o:p></o:p></span></div>
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<span style="font-family: 'Arial','sans-serif';">4. Repay Creditors Over Time – Chapter 13 bankruptcy allows debtors the opportunity to repay all or some portion of their debts in a reasonable fashion.<span style="mso-spacerun: yes;"> </span>Typically, the Chapter 13 payment is equal to the debtor’s disposable monthly income.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
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<span style="font-family: 'Arial','sans-serif';">5. Rebuild Credit – Yes, bankruptcy can actually improve one’s credit worthiness.<span style="mso-spacerun: yes;"> </span>Many people may be surprised to learn that obtaining credit after a bankruptcy is easier to obtain than shortly before the filing.<span style="mso-spacerun: yes;"> </span>Why? The answer is simple.<span style="mso-spacerun: yes;"> </span>First, one may file bankruptcy to discharge debt only once every 8 years (4 years following a Chapter 13 discharge).<span style="mso-spacerun: yes;"> </span>As such, a creditor making immediately after a bankruptcy discharge stands a much better chance getting paid in full.<span style="mso-spacerun: yes;"> </span>Second, bankruptcy sheds the debtors of overburdening debt, thereby freeing up disposable income to pay new obligations.<span style="mso-spacerun: yes;"> </span>Bankruptcy is often the financially responsible step to take and can be a key part of building a strong financial future. <o:p></o:p></span></div>
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<span style="font-family: 'Arial','sans-serif';">Call us today to learn more about the bankruptcy process.</span></div>
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<span style="font-family: 'Arial','sans-serif';">619-696-5151<o:p></o:p></span></div>
Speckman Law Firmhttp://www.blogger.com/profile/09553882190804763072noreply@blogger.com0