Tips for Consumers in Debt Crisis

Yes! You Can Still File Bankruptcy! Bankruptcy relief is still available. You may have heard about a new law passed by Congress that went into effect in October 2005. While it is true that the new law makes the process much more complicated, the basic right to file bankruptcy and most of bankruptcy’s benefits still remain for most consumers. The cost of filing for bankruptcy also has increased, both in terms of fees you to have to pay the court and the fee you will have to pay your attorney.

Do not procrastinate if you are facing legal action. Often, even when people are in danger of foreclosure or car repossession, or are being sued, or are having their wages garnished – even then, they do not want to think about filing bankruptcy. It is very painful to think of filing bankruptcy – especially before the person understands bankruptcy. In most cases, once bankruptcy options are explained by an experienced attorney, people are greatly relieved to find that their problems can be resolved after all. Do not wait until after your house is foreclosed, your car is repossessed, or your wages are being garnished. Find out what bankruptcy relief is available to you sooner rather than later.

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Posted in Bankruptcy Information  |  By: Thomas McAvity

Class Requirements for Bankruptcy

As you may be aware, the new bankruptcy laws require that you attend a credit counseling session and receive a certificate from an approved counselor prior to filing your case. The certificate of completion of the credit counseling session must be filed with your bankruptcy case. Therefore, your attorney  must a have a copy of the certificate before your case can be filed. 

The new bankruptcy laws also require that you attend a Personal Financial Management session and receive a certificate from an approved counselor prior within a certain time period after filing your case. The certificate of completion of Personal Financial Management should be provided to your attorney prior to your Meeting of the Creditors. 

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Posted in Bankruptcy Information  |  By: Thomas McAvity

Will My Boss Find Out About My Bankruptcy?

Employers rarely find out about a chapter 7  filing. One exception to this rule would be if you were being garnished by a creditor, notice of the the bankruptcy would have to be sent to your payroll department in order to stop the garnishment from continuing. The reality is that your payroll department is likely to regard your filing as good news as they will no longer have to deal with the demands of the garnishing creditor.

If you file a Chapter 13 in Washington or Oregon, your employer or your payroll department is almost always going to find out about your case. This is so because, except under extremely dire circumstances, the court is going to require your plan payment to be paid through a wage order which is submitted to your payroll department. While exceptions are made to this rule, embaressment is not one of them.

Posted in Bankruptcy Information  |  By: Thomas McAvity

Rulers for Multiple Bankruptcy Filers

July 20, 2008
New York Times
By GRETCHEN MORGENSON

The collection agencies call at least 20 times a day. For a little quiet, Diane McLeod stashes her phone in the dishwasher.

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Posted in Bankruptcy Information  |  By: Thomas McAvity

Pay Days Loans in Oregon

 Oregon’s payday lenders all but gone
Quick cash - Consumer advocates claim a victory but fear residents will turn to such lenders on the Web
Sunday, July 06, 2008

BILL GRAVES
The Oregonian Staff
Oregon’s payday lending industry shrank dramatically in the year since the state cracked down on the short-term lenders’ soaring interest rates.

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Posted in Bankruptcy in the News  |  By: Thomas McAvity

Utilities and Bankruptcy Filing

If you owe a back balance to utilities providing gas, electricity, phone service or water to your home, they cannot stop providing you service because you have named them in your bankruptcy. Some utitlities, very few, will demand a deposit from you for future service in order to continue doing business with you and, if they do not receive it,  they can then turn off your service. Under no circumstances can they demand payment of a past due amount in order to continue to providing you with service.

Posted in Bankruptcy Information  |  By: Thomas McAvity

Busy Times for Bankruptcy Lawyers

Busy times for bankruptcy lawyers By Katie RyanInside Tucson Business  Much like the proverbial elephant in the room, bankruptcy is something that is thought about, but seldom discussed. According to U.S. Bankruptcy Court statistics, the number of bankruptcy filings rose by nearly 40 percent from 2006 to 2007. While many local businesses are feeling the toll of the sluggish economy, business is booming for bankruptcy lawyers.

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Posted in Bankruptcy in the News  |  By: Thomas McAvity

Obama Proposes Bankruptcy Law Changes

By AARON GOULD SHEININAtlanta Journal-ConstitutionPublished on: 07/08/08 Barack Obama moved Tuesday to paint the 2008 presidential election in stark terms of rich vs. poor, and fat cats vs. struggling families. 

In a 15-minute speech before 2,700 screaming supporters at McEachern High School in Powder Springs, Obama unveiled a pair of new proposals aimed at easing bankruptcy laws for military families and for seniors.

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Posted in Bankruptcy in the News  |  By: Thomas McAvity

Obama and Bankruptcy Reform

In Powder Springs, Ga., today, Democratic presidential candidate Barack Obama will propose “changing bankruptcy laws to ‘fast-track’ the process for military families, help seniors keep their homes, and protect people recovering from natural disasters,” the Associated Press writes.  Obama campaign spokesman Bill Burton has sent reporters this summary of what his boss will be suggesting:  • Reform bankruptcy laws to protect families facing a medical crisis. Half of all personal bankruptcies today are caused in part by medical expenses. That will change when Obama is president. If you can demonstrate that you went bankrupt because of medical expenses, you’ll be able to relieve that debt and get back on your feet.   • Support older Americans facing financial hardship. Obama will help our seniors who fall into bankruptcy keep more of the value of their homes by increasing the homestead exemption to the median value of a home in their state.   • Help victims of natural disasters recover financially. Obama will help families who are recovering from a natural disaster by streamlining the bankruptcy process for them and enacting a temporary moratorium so that these families don’t have to worry about collectors at a time when they’re just trying to rebuild their lives.   • Protect military service members and their families. If you’re protecting America, America should be protecting you from unfair bankruptcy laws. That’s why Obama will create a “fast-track” bankruptcy process for military families, simplifying the steps and offering greater safeguards.   • Enact a comprehensive consumer protection agenda. In November, Obama proposed a plan to help families who are mired in debt, including greater transparency in credit card lending and a Credit Card Bill of Rights that will protect consumers at a time when more and more are depending on credit cards to cope with rising prices.  

Posted in Bankruptcy in the News  |  By: Thomas McAvity

The IRS and the Automatic Stay

Even after the filing of a bankruptcy, the IRS can continue certain actions such as issuing a deficiency notice, continuing an audit, demanding the filing of a return and issuing an assessment. Filing a bankruptcy does, however, stop the IRS from issuing a lien, garnishing, your wages or seizing your assets or income.

Posted in Bankruptcy Information  |  By: Thomas McAvity