Clayton Hildreth being congratulated by his niece

I like to think I am a pretty tough hard nosed guy, but I have to admit I got a little teary when I read this Omaha World Herald article about Clayton Hildreth.  Clayton just got his Eagle Scout badge. Only 3 percent of boys who start Scouting earn Boy Scouts’ highest rank.  If that is not special enough, Clayton earned his Eagle Scout badge even though at the age of 3 he was severely burned in a house fire. He survived, but was left with one eye, one ear, only one thumb and no fingers, and no toes.  What an inspiring story of courage by a remarkable young man.  I feel a little guilty about getting down when I experience a set back or difficulty.

Hoping to make my bankruptcy clients feel a little better about their difficult circumstances, I sometimes make a weak joke saying don’t worry, it’s just money. After reading about Clayton I can say, truthfully and emphatically say, really, it’s just money.  Clayton Hildreth has defied all odds since he was 3 years old.  He has never given up, never quit, never given in.   There are things more difficult to overcome than loosing your job, or your car or even your home.  Clayton Hildreth has faced adversity all his young life and time after time he has just gone out did what needed to be done.  I will always be empathetic to my clients difficult financial problems, but will try to remember it is after all “just money”.  Young or old, rich or poor it is never too late to start over.

At Feller Law Office we are all about second chances and starting over.  Contact Feller Law Office today at 1-800-457-9680.

Other than not being able to break your leg or do other violence third-party collectors can still be pretty darn nasty.  The Fair Debt Collection Practices Act (FDCPA), a federal law that applies to third-party debt collectors prohibits what it refers to as “harassment.”  A debt collector can’t use obscene language or threaten violence, but can still make a debtor feel pretty bad.  Even with the possibility of a FDCPA lawsuit plenty of collectors still cross the line.   If a debtor feels harassed or threatened,  it may be necessary to hire a lawyer familiar with the FDCPA to stop outrageous conduct by third-party collectors.  Lots of good people get behind on their bills.  Some may even need to file Chapter 7 or Chapter 13 Bankruptcy, but nobody deserves to be disrespected by bill collectors.

Contact Feller Law Office today at 1-800-457-9680 to STOP HARASSMENT NOW.

Just read What Used to be a Crime is now just Banking by Al Lewis in the Denver Post online.   This kind of confirms what I have thought for a long time.  In the article Terry Smiljanich who was an Assistant U.S. Attorney in Tampa, Fla., in the 1970s, prosecuting loan sharks was interviewed.  Smiljanich opined that “Bank of America doesn’t break your legs, but they will ruin your credit and they will hound you to death.”  As we are all aware, banks from Citigroup and Wells Fargo on down have raised interest rates on some of their credit card customers to as high as 36 percent.  Al Lewis explains that at that rate, an unpaid balance nearly doubles in two years. “These are rates that the mob was afraid to charge,” Smiljanich complains in the article.

Just read What Used to be a Crime is now just Banking by Al Lewis in the Denver Post online.   This kind of confirms what I have thought for a long time.  In the article Terry Smiljanich who was an Assistant U.S. Attorney in Tampa, Fla., in the 1970s, prosecuting loan sharks was interviewed.  Smiljanich opined that “Bank of America doesn’t break your legs, but they will ruin your credit and they will hound you to death.”  As we are all aware, banks from Citigroup and Wells Fargo on down have raised interest rates on some of their credit card customers to as high as 36 percent.  Al Lewis explains that at that rate, an unpaid balance nearly doubles in two years. “These are rates that the mob was afraid to charge,” Smiljanich complains in the article.

Tony Soprano never had it so good.  Credit was free and easy, but oh what a price.  It is no surprise that relatively small charges snowball for some families.  Many times the charges were made to bridge debtor(s) over a rough spot financially.  Eventually the bridge turns into an insatiable monster that demands more and more of the household budget.  Reforms may be on the way, but there are lots of people that need help now.  Debt consolidation may work for some if done soon enough, but studies show that relatively few of the consolidation plans are effective and may leave debtor(s) worse off than before the plan.  Chapter 7 or Chapter 13 Bankruptcy may be the only way out in severe cases.  Sorry Tony, no more strong arm tactics allowed.

STOP CREDIT CARD DEBT, call Feller Law Office at 1-800-457-9680 or e-mail us to discuss your situation in more detail.  We want to help – contact us today

Some debtors filing a Chapter 7 or Chapter 13 Bankruptcy lost a job or got a divorce.  Other debtors had to file because they spent money beyond their means.   But all too often, they filed simply because they, or their children, got sick.  So says the New York Times article From the Hospital to Bankruptcy Court.

It is admitted that statistics are elusive, but suggests there is a general sense among bankruptcy lawyers and court officials, that the share of personal bankruptcies caused by illness is growing.  President Obama, in addressing a joint session of Congress in September, called on lawmakers to protect those “who live every day just one accident or illness away from bankruptcy.

Although criticized as using a too broad definition of  ”medical bankruptcy”, Harvard researchers published a paper that concluded that illness or medical bills contributed to 62 percent of bankruptcies in 2007, up from about half in 2001. More than three-fourths of those with medical debt had health insurance.

What is certain, however, for the families described in the Times article getting sick or injured sapped their fiscal health as well as their physical health.  I would say that in our practice health care expenses are a significant contributing factor in at least a third to one half of the Chapter 7 and Chapter 13′s that we file.  And of those cases more than half have health insurance coverage.

I cannot understand what good credit counseling does in these cases.   How can credit counseling prevent accidents or illness?   I also don’t know why a cramdown of undersecured loans should not be allowed.  I really don’t think people are going to get sick or injure themselves to avoid paying their obligations.   I doubt we will see any changes in the Bankruptcy Code to address these problems.  Maybe a new health bill from Congress will remedy some of these problems.  We can always hope, but I won’t hold  my breath.

Contact Feller Law Office today at 1-800-457-9680 to get back your FISCAL HEALTH.

Last week we looked at items 1 thru 5 of 10 Things Bankruptcy Court Won’t Tell You from  SmartMoney.  Here is a my run down of items 6 thru 10.

6. “Don’t settle with Mom first or fudge the condo in Boca.”  It is oh so tempting to pay debts owed to friends and family prior to filing.  You just can’t do it.  An even worse mistake is trying to hide assets.  You can loose your discharge or worse go to jail.  Don’t think you won’t get caught.  Ex spouses, angry creditors, and nosey neighbors can and will turn you in.

7. “Better save up before you file.” Most lawyers will not file a Chapter 7 unless the $1,200 or more attorney fees are paid in full.  This is because unpaid fees can be discharged with a debtor’s other debts.  Filing fees of $299 also have to be paid up front.  Usually part of the attorney fees in a Chapter 13 can be paid through the plan, but the filing fees of $274 needs to be paid in advance also.

8. “Just because your bills stop coming doesn’t mean you shouldn’t pay them.” When your Chapter 7 or Chapter 13 is filed all creditors receive a notice of filing and are prohibited from taking further steps to collect from the debtor until allowed to do so by the Bankruptcy Court.  That does not mean that a Debtor should stop making payments on certain debts.  For instance if a debtor intends to keep the family home payments must continue on the mortgage regardless of the bankruptcy filing.  Every debtor needs to consult with their attorney to make sure that payments continue on certain key debts.

9. “Timing is everything.” File in haste and repent in leisure.  Generally, you don’t want to file until the financial bleeding has stopped.  If the debtor is out of work and more debt is going to accrue filing prematurely will prevent the new debt from being discharged.  Also, a filing may be delayed to get additional time to make use of secured property.  Of course if there are pending garnishments or executions immediate action may be required.

10. “Bankruptcy doesn’t have to be the end of the world.” I believe in second chances.   A Chapter 7 or Chapter 13 filing can be a very traumatic experience, but it also can be part of a new beginning.  As bad as things may look at the beginning of the process most debtors see rapid improvement in their situation.  Many people recover full financial health.

There you go.  Just something to think about.

Call Feller Law Office at 1-800-457-9680 or e-mail us to discuss your situation in more detail.  We want to help – contact us today

I love lists, and here is a new one from SmartMoney.  Here is a quick run down of the 10Things Bankruptcy Court Won’t Tell You.

1. “Personal Bankruptcy’s not just for the poor.” The old saying about the bigger they are the harder they fall is certainly true.  Take a look at Celebrity Recession: Who Lost It All In 2009 Anybody can get in financial difficulty and they do!

2. “When it comes to bankruptcy, one size doesn’t fit all.” You don’t go to the shoe store and ask for the same size shoes as your brother-in-law got yesterday.  Same holds true for bankruptcy.  There are differences in the way debt gets handled in personal bankruptcy, often depending on which kind you file for, either Chapter 13 or Chapter 7.  And each has pros and cons.  In the shoe store you need a knowledgeable salesperson to measure your foot and find the size just right for you.  Likewise, to find the right course of action in bankruptcy you need to consult a knowledgeable attorney to find the Chapter just right for your circumstances.

3. “We don’t want your house if we can’t get good money for it.” There is an old saying that warns “be careful what you wish for you may get it.”  Secured Creditors sometimes make loud noises about taking back their collateral, but often times they really don’t want your car or your house.  Especially when there is no equity or has big exemption protecting equity.

4. “This could actually improve your credit score down the road.” You heard it right, filing a bankruptcy could actually start you on the way to a much improved credit score.  Whenever you find yourself in a hole the first thing to do is to stop digging!  Filing a Chapter 7 or Chapter 13 Bankruptcy certainly will lower your score, but at least then you can start back on the road to recovery.  Continuing delinquencies on credit cards will doom you to perpetual FICO hell.  Starting with a clean slate gives you the chance to make rapid improvement in your score.

5. “Debt-settlement firms may do more harm than good.” Trying to get multiple credit card companies to get in line and agree to meaningful debt-settlement is kind of like herding cats.  It just does not work.  Unless you can come up with a cash settlement for creditors debt-settlement is doomed to failure.  If you don’t qualify for a Chapter 7,  making payments per a Chapter 13 Plan is a much better option.

(See my take on items 6 thru 10 in my next post)

Contact Feller Law Office today at 1-800-457-9680 to get back on track.

]]> http://nebraskabankruptcyhelp.com/263/another-top-10-bankrupcty-list/feed/ 0