Not only have I seen spending temptation in my own life, but also in the lives of clients; you can spot it almost instantly as soon as you see a bank statement or credit card bill, daily charges at restaurants, a long list of small transactions at 7-Eleven, the bottle of wine or 6 pack of beer at the liquor store, or daily trips to the grocery store (sound familiar). Such miscellaneous spending can add up to hundreds of dollars per month and thousands of dollars per year. If you spent $8 per day on lunch for 5 days, that is $2,080 per year, put in some compounding interest and you have $12,896 at the end of 5 years, not chump change. But, I know, you have heard this before.

I have a fairly strong personality and conviction, but even I have a hard time with spending temptation. We all say it to ourselves, what is another $2 here, or $5 there. I deserve that glass of wine after work, or I just don’t feel like making dinner. Well, it does add up. My “excuse” is convenience. As an attorney, I am very sensitive to time and I value every minute and try to be as efficient and effective as possible. But in reality, if I don’t spend the time now to conserve money, I may have all the time I want in the future, but no money.

The Solution

Remove the ability, remove the temptation. It really is true that common sense is not all that common. The solution is surprisingly simple. Don’t carry with you any means to pay for anything; it’s the only way I found that actually works. When you get home tonight, remove all your credit cards, debit cards, ATM cards from your purse or wallet. If you have more than $20 cash, deposit it back into your checking account. If less than $20, just spend it down; sort of ease into going cold turkey on spending. This exercise may be a real eye opener and will test you; it is very likely you may feel the psychological symptoms of withdrawal. On the weekend, feel free to put back the cards and run your errands, but during your work week, leave your spending ability at home.

Now, if you truly are addicted to miscellaneous spending, this exercise may require further changes. If you eat out for lunch every day, you will need to start preparing lunches and bringing lunches and snacks with you. But other than that, most of the miscellaneous day to day spending is lifestyle fluff and certainly not a necessity. Also, you will need to give a little forethought to buying gas for your car when you notice fuel getting low.

One final point, if your first instinct is to scoff at this solution and you start coming up with excuses not to do it, that is called denial. So, if you say something like, “what about emergencies;” you more than anyone need to try this exercise for a week.

By Jane Roberson

The post HOW TO CURB IMPULSE SPENDING? appeared first on Roberson Law, LLC.

Bankruptcy Rule of Procedure 4004 addresses this question. Generally a discharge will be granted once the time for filing objections has expired; that time is usually 60 days from the date of your “first scheduled” Trustee Meeting (The 341 Meeting of Creditors). Rule 4004 outlines reasons why the entry of discharge may be extended.

The majority of the time when a discharge is not timely entered, it is due to a clerical oversight either by the Bankruptcy Trustee or the Court Clerk. If you used an attorney to file your case, contact your attorney and inquire as to the status of your case. If you did not use an attorney (or used a cheap attorney that abandons you have the trustee meeting) contact the Bankruptcy Clerk of Court where your bankruptcy petition is filed and inquire as to the reason why no discharge has been entered. If lack of discharge was due to a clerical oversight, the Court Clerk can fix that in a matter of days.

By Jane Roberson

The post 60 Days Since My 341 Meeting, and Still No Bankruptcy Discharge? appeared first on Roberson Law, LLC.

I think we all have heard the horror stories which led to our current financial meltdown as to mortgages. In the recent past, some predatory lenders were giving home loans to people who could not afford them, were offering loans with outrageous interest rates, and were discriminating against certain racial and ethnic groups. Under a new law called The Home Ownership and Equity Protection Act, (HOEPA) certain abusive lending practices have been abolished.

To qualify as a HOEPA loan, several criteria must be met. I would refer you to the bureau’s web site for complete details on these criteria as they spell these out in greater detail than I can here. If your loan does qualify (what the bureau calls a section 32 loan – after section 32 of HOEPA,) then there are certain actions by the lender that are required to be disclosed such as: state the interest rate, even if it’s an adjustable rate loan, telling you that the loan does not have to be finalized and that you have 3 days to decide to take the loan or not after the lender provides you with required disclosures and that by entering into a mortgage agreement, if you fail to make payments, you could lose the home. All of this may seem obvious but in the past borrowers were not always aware of the type, cost, and amount of the loan and consequences of not making payments.

Under HOEPA, certain lending practices are banned. For the most part, balloon payments are not allowed except under strict guidelines, default interest rates over the pre-default amount, “due on demand” clauses (with some exceptions,) and calculation of interest rates other than accepted accounting or actuarial practices are not allowed. Certain considerations for making loans by lenders have been tightened up as well. The ability to pay must be considered and your personal financial information such as income must be verified. Mortgage loans cannot be disguised as home equity lines of credit and subject to higher interest rates if no other transactions (such as borrowing from the line of credit) are expected to occur. Also, if there is a violation of these HOEPA rules, the borrower may sue for damages along with cancelling the loan up to three years after the closing.

These changes are long overdue and if you are considering a mortgage, a thorough review of your rights under HOEPA is required. Still remember the watch word with any complex financial transaction is “buyer beware. “ However, at least someone is now on your side.

For any additional information contact our friends at :

Dale Davis with First Option Lending

2000 S. Colorado Blvd.* Suite 2-250 * Denver, CO 80222

Phone: 303-803-1908

ddavis@firstoptiononline.com

The post A STEP IN THE RIGHT DIRECTION FOR MORTGAGES appeared first on Roberson Law, LLC.