When you file for bankruptcy the filing information will stay on your credit report for up to ten years. Employers, loan institutions, and landlords are just some of the people who might check your credit report. If you have a bankruptcy on your credit report, you may have difficulty getting a job, renting an apartment or getting a loan.

This personal bankruptcy story was posted on the internet in April of 2011, “I filed Chapter 7 Bankruptcy in December 2008 and was completely discharged in April 2009. I have no debt in my name, and it is reflected on my credit report. My score is around 640. My wife’s credit score is 670 – 680. We are attempting to rent a home because we don’t qualify to buy (I don’t have 2 years of self-employed tax returns and my wife’s income doesn’t qualify her alone for a mortgage). It doesn’t matter if I make $1.00 or $50K a month, they won’t count my income. It doesn’t make a lot of sense. I’m less likely to fire myself than an employer is and I make way more than I did with a “job”. How hard is it to get a lease approved? We’ve been passed over for a “stronger” applicant twice. I’m getting frustrated because I’ve given bank statements showing over $20K on deposit, a letter of explanation, we have decent credit scores, and my wife has a full time job that pays her well. We want to take care of a nice house in a good neighborhood and pay someone more money than we should.” 

The debtor wonders why he is having trouble getting a lease after filing bankruptcy. The answer is simple. Landlords have the option of checking out your credit history before they will lease to you. Many lease companies have policies of not leasing to those who have bankruptcies on their reports, especially when they can get a renter who has no priors and who is a strong applicant. 

Even though the former debtor, now self-employed, is making more money than he did, he has sent a letter of explanation with the application, he has increased his credit scores, and he is doing everything right to rebuild his life, why should a landlord take an extra risk on someone when they have other less risky applicants? 

The former debtor is not only a credit risk, he is less than two years into a new business venture. Most landlords realize that small business ventures have a failure rate of 50% within a five year period. On top of that, the former debtor sent a letter of explanation about his bankruptcy. Even though the man was being honest, this letter might send a red flag to many landlords that the debtor is already having problems with other landlords getting leases, otherwise, why state his problem upfront? Finally, the man and wife’s credit scores, though improving, are still low compared to others. Maybe the former debtor needs to try and lease in an area where there is less competition. 

Maybe you, like the debtor in this story, need of a fresh new start. If you need relief from the stress of debt and you live in or around the metropolitan area of Ann Arbor, Michigan, contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area who can answer your bankruptcy questions.

A recent blog online dealt with a debtor who admittedly owes Chase Bank $75,000 for an SBA loan secured by business assets. He owes the Chrysler Corporation for a $7,500 loan on a repossessed Jeep, and he owes U.S. Bancorp $48,000 in unsecured visa credit card debt ($30,000 of which was business debt and the other $18,000 for personal debt). Each of the companies is filing lawsuits against the debtor, but none of these creditors have received a judgment to date.

The debtor is irate over the lawsuits because all three of three creditors were involved in the U.S. bailout in 2008 and 2009. Here are excerpts from his blog:

“I will go and represent myself as legal counsel. When the judge asks me to present my case, I will tell him how each creditor went bankrupt and received Federal bailout money financed in part by me. When this creditor needed mercy, the U.S. taxpayer stepped up to the plate and bailed them out. However, when I was only two months behind on my wife’s Jeep payment, without notice, Chrysler had it towed out of our driveway in plain view of our neighbors. I explained how each bailed out creditor overspent and went bankrupt by living lavishly beyond their means, and in so doing, they pulled down the economy with them. This in turn bankrupted my business and sent several of my long-term devoted employees home with layoff notices. I will tell the judge that this creditor would not even be in business today to sue me if we did not bail them out with our hard earned tax dollars. I will then submit Exhibit #A which will be a 5-page report of almost 1,000 large corporations and banks that received over half-a-trillion dollars in Federal bailout money. I will note to the judge that my business name is unfortunately not on that list, and that is why I am in court today.
I will also submit as Exhibit #B, a news story from the Washington Examiner in 2009 about how Chrysler purchased the most expensive Superbowl TV commercial in history right after they received over $15-billion in bailout money in tax dollars financed by me. I will make sure to mention that U.S. Bankcorp received $7-billion in bailout money and Chase Bank received more than $30-billion in bailout money.
I will remind the Judge that, although these banks did pay the money back to the government, I am still waiting for my bailout check. If I had received one, I wouldn’t be in court today. In addition, I am asking that you void out this debt based on the fact that if we didn’t bail these banks out, they wouldn’t have had the money hire an attorne and sue hard-working Americans.
Worst case scenario is the creditors get a judgment, and I file for Chapter 7 Bankruptcy the next day before they can get another court date to try to collect. Best case scenario is that the judge agrees with me and declares the debt non-collectable. My wife thinks I might be able to convince at least one of the judges to do this if it is within his power to do so. Even if I lose, at least I got to vent in a public hearing about these corrupt corporations and banks that got our bailout money while we all got the shaft in return. What do you think… is this idea insane or genius?”

Interesting concept, so I say go for it, especially if he can afford the court costs. It will be genius if he wins and a little crazy if he loses. If he loses, he will most likely need the services of a good bankruptcy lawyer who can help him understand how the complex bankruptcy laws might apply to his financial situation.

If like the debtor in this story, you need relief from the stress of debt and you live in or around the metropolitan area of Rochester, New York, contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.

Real estate data firm RealtyTrac found that foreclosures rose to a record 1.05 million last year, eclipsing the previous record of 918,000 a year earlier. That means 26% of all homes sold in 2010 were foreclosures. Those foreclosure numbers aren’t expected to wane anytime soon. RealtyTrac found that 2.9 million homeowners received foreclosure notices in 2010, with 20% more expected to be in trouble this year.

With the housing crisis, many homeowners are finding they are “upside down” on their mortgages. As a result, more people are filing for bankruptcy or allowing the lender to repossess their homes. There are some who opt to keep their homes, despite sound financial reasons for giving them up. This may be fine if you can afford it, but if not, don’t be a slave to your house. 

In America homeownership is a valued goal. Our homes contain years of memories; they make us feel secure. Losing our home can mean loss of cherished memories and security. Keeping your home may be a worthy goal, even if you owe more than it is worth, especially if there is great sentimental value in the home for your family, but if you cannot afford the house, do not be a slave to memories and security. Find a home or apartment you can afford. 

Filing for bankruptcy protection can give you permanent or temporary relief from home foreclosure. An automatic stay may give you temporary relief if you are unable to afford your home, but you may be able to restructure your mortgage payments by filing Chapter 13 Bankruptcy and keep your home. 

Chapter 13 Bankruptcy will only allow you to keep your home if you are making current mortgages payments and you have paid the arrears, if any, on the home. 

If you file Chapter 7 Bankruptcy you may be able to keep your home, but it will depend upon the homestead exemption for your state. If your payments are not in arrears when the bankruptcy is discharged, you most likely can keep your home by making the payments. If the payments are in the arrears after the automatic stay has been lifted, foreclosure will usually follow. 

Keeping a home after you file bankruptcy can be a very complicated issue. Talk to bankruptcy lawyer if you have questions. If you need of relief from the stress of debt and you live in or around the metropolitan areas of Sarasota or Bradenton, Florida, contact us at www.betterbankruptcy.com. We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.

Many people who are experiencing financial problems for the first time really do not understand the concept of bankruptcy. We all understand the concept of broke. Being broke simply means you do not have the money to buy anything, but bankruptcy means, not only are you broke, but you owe debts and you have a legal responsibility to pay your debts. 

As a general rule of thumb, you are completely financially bankrupt if your current sustainable income plus any cash reserves will not pay all of your living expenses, pay interest on outstanding loans, and reduce some of your principal on those loans (while paying on them for five years). Depending on the state, the formula should not include any of your retirement savings as cash reserves. 

This personal bankruptcy story was posted on the internet in April of 2011, “I am close to foreclosure. The last letter I got from the mortgage company said they would start the foreclosure process. I have not made a mortgage payment since October of last year. My loan is $127K. The second mortgage has already written off the $8K debt. My credit card company is suing me for $15K after 6 months of nonpayment, and they have been calling me every day. 

I decided to call the credit card company to attempt to settle. There was a cash advance for $2000 and I was only able to make a couple of small payments. They said they would settle for about 43% of the debt, which was $1200. I can make payments from my tax refund, but would this be a waste of money? 

I am not sure I will file bankruptcy. My main income is from Social Security and anyone who gets a judgment would get $100 a month. Plus after foreclosure my debt isn’t that huge. I’d rather be saving the money. I’m thinking that I’m probably going to get some 1099-Cs from the combined debt being written off, and I am now reading about filing insolvency. I have no assets so I think this would work for me. I’m worried the cash advance may appear to be fraud. What should I do?” 

Filing for bankruptcy is a legal proceeding designed to protect both creditor and debtor and may allow a business or debtor to recover from a financial crisis. Under some condition, bankruptcy may help the filer have a fresh start. 

The debtor in this personal bankruptcy illustration is right to be concerned about the perception of the cash advance, but in this instance his concerns are most likely misplaced. The worst case scenario is that the trustee will file an abuse petition concerning the cash advance, and the debtor will be responsible for paying all or a portion of it. The cash advance won’t affect the rest of the bankruptcy. 

If the debtor in our story decides that he is completely bankrupt, he really needs the counsel of a bankruptcy lawyer to help answer questions about bankruptcy laws. 

If you are considering filing for bankruptcy because you need relief from the stress of debt and you live in or around the metropolitan area of Houston, Texas, contact us at www.betterbankruptcy.com . We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.

The odds of winning a state lottery are low. The odds of winning Powerball, for instance, are one in 195 million. The odds are the same every time you play a new game. Someone wins every week, and you can’t win without buying a ticket, but if you are facing bankruptcy, I would not bet on winning the lottery. Nevertheless, statistics show people who play the lottery are the least able to afford it. The lottery offers hope for the bankrupt.

This personal bankruptcy story was posted on the internet in April of 2011, “I filed for Chapter 7 Bankruptcy and I thought that things were going to work out. I made a couple mistakes. I trusted the wrong people, and the people who had the answers were too far away to notice my choices. I took out a student loan, co-signed for a friend, and we no longer have contact with each other. I hope he started paying for his loan because I’m stuck with mine, even after filing for bankruptcy. Sometimes, I wish I could win the lottery and pay off my debts, and I would give what was left to others in need.” 

I agree with the debtor in this personal bankruptcy illustration. It would be nice if he won the lottery, and I hope he does, but winning is unlikely. He should not depend on the lottery. He should learn from his mistakes and take care of business. He had all his unsecured debts discharged (except for his student loan and possibly a friend’s student loan he co-signed). Now is the time to pay off his student loans. 

All student loans, whether private or government originated, are protected from bankruptcy proceedings. Private student loans were given preferential protection in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. The automatic stay of bankruptcy can postpone due dates for student loans until the bankruptcy is discharged, but a discharge cannot erase the obligation. 

Some private loans can compete with government loans with interest rates, but fees are often added that drive their loans much higher. Keep in mind that every 3% to 4% in fees is equivalent to about 1% in interest. The annual percentage rate (APR) can look smaller if the payout is longer, but the payments may be difficult to pay over time. Yes, the debtor in our illustration is stuck with his student loan even after filing for Chapter 7 Bankruptcy and receiving a discharge for his unsecured debts. 

If obtaining a student loan is the only way you can develop the skills you need to provide a living for yourself, I am all for it. I put myself through college on student loans and paid them back. Both my children used student loans to get their degrees, and I paid the loans when they graduated. The rules have changed, and it is different now. Make sure you are capable of paying off your loans. 

The lottery offers hope for the bankrupt, but winning is unlikely. Before filing for bankruptcy, make sure you understand bankruptcy laws. You may need to consider hiring a bankruptcy lawyer to help you. 

If you need relief from the stress of debt and you live in or around the metropolitan areas of Milwaukee or Waukesha, Wisconsin, contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.

Murphy’s Law states that if anything can go wrong, it will. In a bankruptcy adversarial proceeding, this rule seems especially true.

This personal bankruptcy story was posted on the internet in April of 2011, “We were hit today with 10 requests from the trustees’ attorney to provide statements going back 2 years. It goes to FRBP 2004, it cites tons of cases that I don’t understand anything about, wants taxes back 4 years, real estate commissions, pay stubs, reports and business books. Bank statements for 15 months so on and so forth. I’m stunned!”

In bankruptcy, adversarial proceedings are not unusual. They happen for a variety of reasons. The debtor in this personal bankruptcy illustration might think Murphy’s Law is at work, threatening his bid for a bankruptcy discharge, but most likely, given the debtor was self-employed, the trustee is concerned that certain assets could have been overlooked. For debtors who are self-employed this is not unusual.

If you decide to file bankruptcy without legal help (Pro Se) the situation may be more complicated. It is not the trustees or his lawyer’s responsibility to protect you from yourself. You have the right to be represented, and you have the right to go it alone. In adversarial proceedings it is probably not wise to go it alone. Remember what Abraham Lincoln once said, “When you represent yourself, you have a fool for a lawyer.” Filing Pro Se is fine for some people and situations, but it probably isn’t right for most adversarial proceedings.

Bankruptcy laws can be complicated, and many filers need legal help from a bankruptcy lawyer. If you need relief from the stress of debt and you live in or around the metropolitan area of Fort Lauderdale, Florida, contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.

Have you ever heard of that con before? These words were used around our house when I was growing up in Texas. This sales pitch was used by a charlatan who owned some worthless swamp land he wanted to sell for more than he had paid for it.

Of course today there are plenty of charlatans in the sales and collection world who will promise you anything to get you to take action. Some bill collectors may be considered charlatans when they try to get you to believe some of their sales pitches. In my experience, you cannot always believe what they tell you, especially when it is not in writing.

This story was posted on the internet in April of 2011, “I had an agreement in place with [the mortgage company] to enter into a repayment plan. It is not a modification but rather an agreement to pay a lump sum payment and then a couple hundred extra a month for 8 months to make my mortgage current. There is a single line disclosure in my paperwork that says the agreement is void if I file bankruptcy, but that was expected. Every person I spoke with at [the mortgage company] says they would honor this agreement even if I’m in bankruptcy. My first payment of $2K on this plan is not due until May 10th…Should I make that payment on May 10th as scheduled, or since I have now filed bankruptcy should I contact them and get some new agreement in place? I don’t want to give them $2K and then have them continue foreclosure proceedings. On the other hand, if they are willing to honor the existing plan, my intention is to stay in the house.”

The debtor in this personal bankruptcy illustration wants to believe the best about his loan company. After all, most mortgage companies are trustworthy. The debtor has been verbally reassured the bank will still honor the agreement and not foreclose on the house. The mortgage company says they will do this despite the debtor being more than several months in default, the contract is totally void the moment the debtor filed for bankruptcy, and the mortgage company is not voluntarily offering a new deal without mentioning bankruptcy.

Should she take the risk- probably not since she has no legal grounds to operate if the collectors decide not to honor their agreement. Recently, some people have become more willing to stretch the truth, especially when they are collecting money owed to them. They may be willing to present half- truths. Half-truths and broken promises are reasons many lawyers suggest not taking offers unless they are in writing.

Whether or not the debtor trusts his mortgage company to operate without a written agreement is up to him, but bankruptcies are often littered with broken promises. Mortgage loan departments are in the business of collections. The collector’s job is to get you to pay whatever and whenever you can.

If you have questions about legal issues when filing for bankruptcy, contact a bankruptcy lawyer. If you need relief from the stress of debt and you live in or around the metropolitan area of Fort Worth, Texas, contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area who can answer your bankruptcy questions.

According to the most recent Associated Press Economic Stress Index, “unemployment declined or remained the same in more than three-quarters of the nation’s 3,141 counties and in 43 states. Bankruptcies declined in more than half the counties and in 41 states, while foreclosures rose in more than half the counties and in 27 states”.

The AP’s index calculates a score from 1 to 100 based on their analysis of foreclosures, unemployment, and bankruptcy filings. A score of over 11 is considered to be in the economic stressed category. The average county’s stress score in February was 11, down from previous months. The only states which did not strengthen in February over January were Maine, Nebraska, New Jersey, New Mexico and Wisconsin. All of these states had higher or unchanged unemployment rates and, except for New Mexico, higher foreclosure rates in February. The economically healthiest states were in the Plains and New England: North Dakota (5.21), Nebraska (5.93), South Dakota (6.16), Vermont (6.54) and New Hampshire (7.47).

Stress levels fell in February even in the five states with the highest stress scores. Nevada remained the most stressed state with a score of 21.16. It was followed by California (16.24), Florida (15.2), Arizona (14.57) and Michigan (14.35).” (Note: the statistical excerpts above were taken from an AP article posted on the NPR website.)

If these figures are correct, we can draw a conclusion that the economy has leveled off and is starting to turn around. This is good news for all the unemployed and those of us who are just barely hanging on. A warning however, should be issued to look beneath the surface of the analysis to understand the time line for complete recovery.

First of all, although bankruptcies are going down, they have not plummeted. Bankruptcy filing have been at record levels, but they are declining, a good sign for recovery, but high bankruptcy filings will likely continue for some time.

Home foreclosures are also on the rise. Although most home owners who were on the brink of default have already defaulted, there are some remaining homeowners who are not making mortgage payments and who may soon face foreclosure. It could take years for the housing industry to fully recover. Some so called “experts’ predict a national housing recovery around 2021.

Given the statistics above, it appears the economy is doing better than it was a year ago. Recovery will come slowly, but barring any world catastrophe, it will come. Now might be a good time to start preparing for your future.

If you are facing a financial crisis and you would like to start over, you can file for bankruptcy protection. If you have had hardships during this current economy crisis, filing for bankruptcy may help you prepare for the future.

Bankruptcy laws can be complicated. If you need of relief from the stress of debt and you live in or around the metropolitan areas of Lansing or Detroit, Michigan, contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area who can answer your bankruptcy questions.

Chapter 13 bankruptcy, known as the wage earner’s plan, is available to individuals. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. If the debtor’s current monthly income is less than the applicable state median, the plan will be for three years unless the court approves a longer period “for cause”. If the debtor’s current monthly income is greater than the applicable state median, the plan generally must be for five years. In no case may a plan provide for payments over a period longer than five years.

After a debtor’s plan has been approved, the debtor can begin paying the trustee the debt payments outlined in the Chapter 13 debt repayment plan. Debts which arise after the initiation of the debt repayment plan are the responsibility of the debtor. Under certain circumstances, the debtor can file a motion to have the plan changed to reflect the new circumstances.

For example, a person who is paying child support will list the support payment on the proper schedule when filing for bankruptcy. The original support payments will be included in the approved plan and will be dispersed by the trustee. What happens if some other court raises or lowers the child support payments after the plan has been approved? The debtor can get the trustee to make an adjustment on the plan by petitioning the court for the change. The court most likely will not reduce the amount the debtor is paying to secured and priority creditors unless they can modify the underlying debt.

A more common example can occur when a debtor has unexpected car repairs. Debtors need their car to go to work to make their payment, but there are extenuating circumstances that might prevent them from getting the court to reduce the plan payment to reflect the large sum of money needed to make the car repairs.

When you make a debt repayment plan, you are asked to determine your disposable monthly income (DMI). Certain reasonable expenses are allowed in determining your DMI. For example, you are allowed an expense for operating two vehicles, including repairs. The expense should have been calculated in your DMI regardless of whether you own a vehicle or not. That means, theoretically, you have already been allowed an expense for any unexpected car repairs. Unless you can prove an unexpected hardship case, it is not likely the trustee will modify the payment plan. To avoid this situation, many people purchase a new car at the beginning of their plan. They build in the expense of the new car along with a warranty service agreement so they will have a reliable car for the duration of their plan.

If you are filing a Chapter 13 bankruptcy, you may need help from a bankruptcy lawyer. If you need relief from the stress of debt and you live in or around the metropolitan area of Orange County, California, contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area who can answer your bankruptcy questions.

Like many youngsters before him, Lenny Dykstra dreamed of someday playing in the major leagues. He wanted stardom and all the financial success that came with it. In 1981, when Dykstra was drafted by the New York Mets in the 13^th round, Dykstra’s dreams began to come true. 

After winning the starting center fielder position in 1986, the Mets fans soon nicknamed Dykstra “Nails” for his tough-as-nails personality and fearless play. In a career that included playing four years with the Mets and seven years with the Philadelphia Phillies, Dykstra was selected to the All-stars three times, was part of a team that won the World Series in 1986, and was awarded the Silver Slugger Award in 1993. 

Accused by the Mets as being on the “wild and crazy” side, Dykstra was traded to the Phillies. He became a huge Phillie’s fan favorite, but injuries eventually drove Dykstra to retire from baseball in 1997. After trying and failing to comeback in the spring of 1998, Dykstra retired from baseball for good. 

Like his peers before him, Lenny Dykstra mismanaged the fortune he earned playing baseball due to a variety of financial misadventures including a car wash, stock portfolio management, and other failed ventures. During the height of his career, Dykstra bought an $18.5 million mansion in Lake Sherwood Estates which was previously owned by hockey star Wayne Gretzky and his wife and a home in Westlake Village worth $5.4 million. 

In 2009, Dykstra filed for Chapter 11 bankruptcy protection listing $50,000 in assets against $10 to $50 million in debts. It was reported in August 2009 that Dykstra was living out of his car and in hotel lobbies. In April of 2011, the U.S. Attorney’s Office accused Dykstra of embezzling from his bankruptcy estate by selling and destroying more than $400,000 worth of assets from his $18 million mansion. 

A U.S. Attorney said, “according to court documents, after Dykstra filed for bankruptcy, he sold many items belonging to the bankruptcy estate for cash, as well as destroying and hiding other items. An attorney hired by the bankruptcy trustee estimated that Dykstra stole and destroyed more than $400,000 worth of property in the estate.” 

Bankruptcy fraud is a crime. Criminal actions under bankruptcy laws typically involve: concealment of assets, concealment or destruction of documents, conflicts of interest, fraudulent claims, false statements or declarations, and fee fixing. Falsifications on bankruptcy forms can often constitute perjury. The new bankruptcy laws which are more generous to honest debtors do not allow bankruptcy fraud. 

At this point Lenny Dykstra is only accused of bankruptcy fraud. In America, there is a presumption of innocence, and Lenny has not been tried or convicted of any crimes. Fans are hoping for the best for Lenny Dykstra. 

Lenny Dykstra was a baseball icon, and he displayed amazing skill playing the great American sport. Unfortunately, he has fallen on hard times, and he now faces one of his greatest challenges in life. Our hearts and prayers go out to him and his family in the days ahead. 

If hard times can come to a person like Lenny Dykstra, it can happen to anyone. Maybe you have fallen on hard financial times, and you need the advice of a bankruptcy lawyer. If you need relief from the stress associated with debt and you live in or around the metropolitan area of Philadelphia, Pennsylvania, contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.