Over the last few months in my bankruptcy consultations I’ve noticed a pretty steady increase in the number of small claims lawsuits that people are getting served with from credit card companies. I don’t know if this is an actual trend on the part of the credit card companies or if I just happen to be meeting with people who happen to be dealing with the issue. Either way a lawsuit, even a small claims lawsuit, must be dealt with or you could face garnishment of your wages and/or bank account. [...]
There comes a point in every bankruptcy consultation when we get to “The Question”. I know what they are thinking: “This all sounds great, I need to file bankruptcy, but what is this going to cost me?” I always try and be up front with the legal fees I charge. I am one of the few attorneys out there that actually list what I charge right there on my website. If you don’t believe me, Google “bankruptcy attorney” and check out their sites. See if any of them will tell [...]
Some debts will just not die. In my bankruptcy practice I pull my client’s credit reports to make sure that I am getting a thorough picture as to what debts are owed and who the creditor is. In reviewing the credit report with my clients often they are astounded at the debts that are still reporting or that are even still calling them. Often these debts were incurred nearly 10 years prior. Old debts that keep coming back from the dead are sometimes referred to as “Zombie Debts.” It used [...]
Many people I meet with for bankruptcy consultations are terrified that their wages are going to be garnished because they have missed a payment or two on their credit cards. First, it is important to understand that if you are behind a payment or two on your credit card your wages will not be garnished. Credit card debts are unsecured – meaning that there is no property or collateral securing the loan. In comparison, a house loan or a car loan is a secured loan where the loan is secured [...]
When meeting with people to discuss a bankruptcy filing it is clear that for most that they are in what they view as a very low point in their lives. Many view their bankruptcy filing as the end of their life as they know it. However, in several ways your life will improve after your bankruptcy filing. #1 – Collection Calls Will Stop Most people contemplating bankruptcy are being harassed by creditors day and night. Further, you may be having your wages garnished or are even being sued. One way [...]
If you have ever opened your own business you quickly learned that business credit for a small business simply does not exist. Sure, banks will loan your business money and landlords will allow you to put a lease in the company name, but none of it will take place without you personally guaranteeing that payment will be made. The personal guarantee exposes all of your personal assets, wages, bank accounts, or other property if things don’t work out with the business and you end up defaulting on your business obligations. [...]
No one wants to file for bankruptcy. But sometimes, the situation requires it. And sometimes the situation requires that hit happen right now! A bankruptcy case typically takes anywhere from one week to a month to prepare. The bankruptcy court requires a lot of information from you, including information on income, assets, debts, monthly expenses, and financial transactions that have occurred over the last couple of years. All of this generally takes time to pull together. However, often clients will come in and they don’t have a lot of time [...]
Today it was announced that the Los Angeles Dodgers filed for chapter 11 bankruptcy protection, proving that no matter how much money you have, you can always go broke. The Dodgers were reportedly running extremely low on cash and were at risk of not being able to meet their obligations and thus filed to hold off creditors while the organization regrouped. So what can individuals like you and me learn from a large multi-million dollar organization filing for bankruptcy? Below are a couple of things we can learn: Sometimes Bankruptcy is [...]
When you fall behind on your bills you feel helpless. Like it is you against the world. The first thing that happens is the phone calls. The phone rings off the hook night and day. After a while you stop answering because you realize there is no purpose. The collector is there to get you to pay money and could care less about the reasons that got you into this position. Next, you face lawsuits, repossessions, and even foreclosure. After filing hundreds of bankruptcies for clients I understand that bankruptcy [...]
No one wants to file for bankruptcy. Bankruptcy is the last option for most people, and probably rightly so. By the time people come to my office to meet with me most have looked into other options as they struggled along trying to keep up with monthly minimum payments. There are alternatives to bankruptcy and believe it or not I do go over them with clients and have in fact sent clients away because bankruptcy was not their best option. There are really three alternatives: debt settlement, debt modification, and [...]
