May 5, 2008

• The World's Worst Credit Card

  The Money, Matter, and More Musings blog reports that it has found the world's worst credit card. (…)

May 3, 2008

• Proposed Federal Reserve Regulations Would Restrict Arbitrary Practices of Credit Card Issuers

  The Federal Reserve Bank has issued proposed rules that will place extensive limits on common practices of credit card issuers. (…)

April 14, 2008

• Alternatives to Bankruptcy if Your Debt is Less than $20,000

  On a fairly regular basis, I get calls from potential bankruptcy clients who don't really have enough debt to justify the time and expense of bankruptcy.  For example, if your only debt is a delinquent $7,500 credit card bill, it hardly makes sense to spend $1,500 to $2,000 for a Chapter 7 case.  Similarly, it makes no sense to spend $3,500 to $4,000 for a Chapter 13, especially if you would end up paying back 100% of the debt anyway. (…)

March 29, 2008

• Pre-Bankruptcy Balance Transfer - the Debtor Wins…This Time

  My Bankruptcy Law Network colleague, Wendell Sherk, recently posted a very helpful case study about a case called In re Brumbaugh in Ohio involving credit card use prior to bankruptcy.  Although Wendell's case study looks to 6th Circuit law (whereas cases filed in Georgia would look to 11th Circuit precedent), I think that the reasoning used by the judge in the Brumbaugh case can give you some insight as to how bankruptcy judges deal with real life situations. (…)

• CNN and Fortune Magazine Explain The Many Repurcussions of the Sub-Prime Meltdown

  A lot has been written about the housing and mortgage finance crisis in the United States.  You may be wondering how and why you would be affected by the failure of a mortgage company that issued high interest loans to borrowers who were not credit worthy.  Although it may not be obvious, a rising delinquency rate among sub-prime borrowers can and has impacted:

  housing prices (the value of homes in most places in the country has gone down) interest rates inflation the stock market our trade imbalance with other countries the decline of the dollar oil prices the stability of the stock market and commodities markets employment foreclosures

  CNN and Fortune Magazine have produced a television program called "Busted - Mortgage Meltdown" that explores all of the implications of our mortgage crisis.  I suspect that the show will end up on-line but for now, you can visit the multi-media online companion to the show. 

  Thanks to Paula Wethington from the blog Monroe on a Budget for writing about the CNN/Fortune program on her blog. (…)

March 20, 2008

• Can I Lose My Job if I File For Bankruptcy and My Boss Finds Out?

  Recently I received an email from a prospective client who works for a banking institution.  His income is partially commissioned based and with the downturn in the real estate market, he has seen a significant decrease in take home pay.   With the pay reduction he is not able to pay his bills and wants to file a bankruptcy. (…)

March 13, 2008

• Georgia Legislature Considers Home Foreclosure Relief Bills

  Today's Atlanta Journal-Constitution reports that the Georgia state Senate has approved two bills designed to help stuggling homeowners avoid foreclosure.  Senate Bill 519 would increase the pre-foreclosure notice to homeowners from the current 15 days to as much as 60 days. (…)

March 4, 2008

• What Happens to Your Car Accident Claim Rights if the Defendant Files Bankruptcy?

  Imagine that you are involved in a car accident that was not your fault.  You hire a lawyer who files suit against the negligent driver asking for damages.  Thankfully the other driver has insurance, so if you win your case, there will be a source of recovery.  Now imagine that right in the middle of this process, the negligent driver files a Chapter 13 bankruptcy.  What are your rights?  Can you still pursue insurance proceeds.  Does the negligent driver’s insurance company get leverage over you because of the bankruptcy filing? (…)

February 29, 2008

• Math Proves Credit Card Debt Almost Impossible to Repay

  My colleague, Houston attorney Pamela Stewart, recently posted on her blog this interesting table that shows just how long it would take to pay off credit card debt if you make only minimum payments.  If you have been sending in only minimum payments and you have a hunch that you have paid your debt two, three, even four times over, you may just be right. (…)

February 19, 2008

• Fictional Web Site Illuminates the Sad Truth About Payday Loans

  I recently ran across a very enlightening blog describing the activities of a fictional group called the Predatory Lending Association.  A tounge in cheek creation of a legitimate organization called the Center for Responsible Lending, the PLA web site includes the following mission statement:

  The Predatory Lending Association is dedicated to extracting maximum profit from the working poor by increasing payday loan fees and debt traps. (…)

January 14, 2008

• "Credit Freeze" Now Available in Georgia

  As of this past November, 2007, all three credit bureaus will permit you to impose a "credit freeze" on your credit report so that you can stop or limit the damage caused by identity theft.  There is no charge to victims of identity theft and a $10 charge for those who want to place or remove a credit freeze. (…)

December 18, 2007

• Credit Card Offers Being Mailed to You at Accelerating Rates

  I read in this week's issue of the Consumer Bankruptcy News (a trade publication for bankruptcy lawyers) that during the 3rd quarter of 2007, credit card companies mailed 1.29 billion (that's billion with a "B") credit card offers to U.S. (…)

November 12, 2007

• Should Bankruptcy Judges Be Given the Power to Rewrite Mortgages

  The United States Congress is currently considering legislation that would allow bankruptcy judges to rewrite some of the terms of a mortgage to reflect the value of a homeowner's property and the current mortgage investment climate.  My colleague Wendell Sherk of the Bankruptcy Law Network notes the following about the legislation currently before Congress:

  The legislation now pending in Congress would allow homeowners in Chapter 13 to rewrite their mortgages to reflect current market value with market interest rates for the long haul. (…)

October 26, 2007

• "How Do I Recover from Bankruptcy" - Some Thoughts from the Trenches

  "How do I recover from bankruptcy?"  This question comes up in every new client interview or client meeting that I conduct.  There is no no universal answer to this question, but here are a few thoughts:

  Become a more educated consumer.  Bad financial decisions often lead to debt problems that can overwhelm you, thereby leading to a bankruptcy filing.  If you are filing or if you are close to filing, take a few minutes to step back and think about how you ended up in your financial predicament.  What would you have done differently?  Moving forward take advantage of the financial resources on the Internet, most of which are free. (…)

August 20, 2007

• When Should You Allow a Third Party to Automatically Tap Your Checking Acccount?

  My colleague, Kevin Gipson, a bankruptcy lawyer in the New Orleans area, has written an important blog post on the Bankruptcy Law Network blog called "When is it Alright to Give a Debt Reduction Company your Bank Account Number?"  Not surprisingly, the answer to this question is "never."  Let me repeat - you should never give a debt reduction company your checking or savings account number and authorization to deduct anything from your bank account. (…)

March 14, 2007

• Is Husband of a Disabled and Judgment Proof Wife Liable for Her Debts?

  My wife has about $13,000 in debt from a credit card that she held before we were married (no joint use, etc.).  She is now disabled and has not paid on this account for over 4 years.  Creditors filed a civil suit just yesterday for repayment and legal fees of over 3k.  Am I liable for this debt?  What can she do to discharge the debt since she is disabled and will not earn an income?  She is not a joint account holder on any family accounts (mortgage, other ccs, etc.)  Thanks for your insight! (…)

March 7, 2007

• Social Security Benefit Checks are Exempt from Garnishment, but….

  My husband has been given benefits but we are being advise a judgement will be placed for medical procedures that insurance should have covered but didn't. (…)

February 13, 2007

• Understand the Psychology of Debt Collection Tactics and Avoid Being Manipulated

  My colleague, Boston bankruptcy attorney Nick Ortiz, has written a helpful post on his Massachusetts Bankruptcy and Consumer Protection blog summarizing your right to refuse to speak with a debt collector under the Fair Debt Collection Practices Act. (…)

February 7, 2007

• Debt Settlement Services - Buyer Beware!

  My colleague, California bankruptcy lawyer Cathy Moran, has written an interesting blog post about debt settlement companies.  I regularly meet with clients who pay debt settlement services fairly hefty fees to "negotiate" debt settlements. (…)

January 24, 2007

• Myths About New Bankruptcy Law

  Although bankruptcy filing numbers are still down in Atlanta, I am starting to see more and more activity on my web site and in email inquiries from potential clients.  Nevertheless, there is still a great deal of misinformation in the general public about bankruptcy. (…)