As I mentioned in my June 21, 2001 column in The Dallas Morning
News, there could some positive fall out from Vermont Senator Jim
Jeffords' switch from the Republican side of the aisle to
"Independent" status.
According to an article in Business Week on June 7, 2001: "The
legislation is ``starting to unravel,'' says Robert D. Manning, an
economic sociologist who testified during Senate hearings on the bill
earlier this year. "Conservative support is unwavering, but the
moderate support is starting to unravel,'' he says. Manning, a
professor at the University of Houston Law Center and author of Credit
Card Nation, applauds those second thoughts about the legislation
because it "really needs to be rethought and re-calibrated."
JUMPING THE GUN. For the consumer, one of the
most onerous sections of the legislation was the imposition of a
"means test" to determine who would be eligible to liquidate
debt, including credit-card debt.
Nationwide, both consumer and small-business bankruptcy filings
have risen this year. Individual filings for April were up about 30%
vs. the same period last year, and small-business bankruptcies are
running about 20% ahead of last year. Much of the increase is due to
the economic downturn and rising consumer debt loads, say bankruptcy
lawyers, who also attribute some of the filings to fears that the
pending legislation will make filing in the future more difficult.
Now, like the insolvent, the legislation looks ripe for
reorganization.
By the way: You can keep on top of the breaking news
about the potential changes in the [federal] consumer bankruptcy laws;
bookmark the American Bankruptcy
Institute's website and stay in the loop on the latest posturing
of the pawns in Washington, courtesy of America's biggest credit card
companies and banks.
BANKRUPTCY REFORM UPDATE: March 2001
What's about to happen to the American public is ugly and
it's wrong and it's happening in broad daylight. Under the guise
of "reforming" the bankruptcy laws, the banks and credit card
companies have successfully spent over $100 million to insure future
profits by buying hundreds of votes from your Senators and Congressmen
across the country. (At least Texas Senator Kay Bailey Hutchison
didn't sell out! Too bad [Texas] Senator Phil Gramm did!!!)
I think it's humorous to hear the banks/credit card
crying crocodile-tears about irresponsibility, when these are the same
companies spending millions of dollars a year soliciting
already-insolvent consumers for their credit card business. It
takes two to create a credit transaction, and I'm stunned by the blatant
sell-out by our lawmakers to one of the greediest [legal]
industries ever operating in plain view. If lawmakers really give
a rat's a** about making "consumers responsible for their
actions" then shouldn't they make the companies responsible for
THEIR actions or business practices?
If they're going to make credit card debt more difficult
to discharge in bankruptcy court, then why don't they protect the
consumers by forcing he credit card companies to cap their interest
rates at 12%? Why don't they limit the amount of late fees/service
charges they routinely load up consumers with? Why don't they
restrict the ability the credit card company can increase a consumer's
interest rate (like 1-2% increases annually or every-other-year)?
Don't you think it's a bit strange that consumers would
be forced to go to credit counseling once they file for bankruptcy?
Hmmmmm, isn't that like closing the barn door once the horses have
gotten out? How about teaching Americans about money/credit/debt
when they've got time to learn and before it's too late: like in junior
or senior high school or college? Do you find it ironic that the
credit counselors have written their own ticket to financial success by
making it the law to require beaten-down consumers to
deal with their agencies, which by the way, are nothing more than
glorified collection agencies?
Simply put: If the final law comes down
to what we all believe it's going to be and President Bush signs it,
there's going to be a mad rush by hundreds of thousands of Americans to pull
the pin and throw the bankruptcy grenade before it's too late.
If you could be one of these consumers that might need to flush before
the law takes effect, then read on for some empowering advice.
If you're looking for a bankruptcy attorney that will
help you survey your own situation and determine whether you need to
begin planning to take the big bankruptcy plunge,
let
me know and I'll try to refer you to someone in your area that can
help you assess your situation before it's too late.
Keep your chin up. This too shall pass.
Tired Of The Threatening
Phone Calls?
Wanna Try To Re-Trade Your Creditors And Settle?
Think That You Might Be A Candidate For Bankruptcy?
The circumstances surrounding your financial distress are all too
familiar:
– You lost your job.
– You lost your health.
– You lost your marriage.
– You lost your sense of responsibility.
– You lost your sense of mind, self-respect, and now you feel like you're losing your
mind.
Does it really matter? No. Whether you've always paid
your bills on time or haven't made a timely payment in your life, now it doesn't matter.
Like the Janet Jackson song "What Have You Done For Me Lately," your creditors
(or their debt collectors) don't care about what once was. All they care about is right
now. Where's my money?
As the inevitable end of the road draws near, many consumers have no
idea that they're living in a semi-delusional state...hoping and praying that something
dramatic will change their life and save them from what they believe to be financial ruin.
But it's not financial ruin anymore. The rules of the game have
dramatically changed over the last few years. Filing for personal bankruptcy used to be a
drastic, last ditch move that left consumers with the proverbial scarlet letter on their
"permanent record" for the rest of their lives. No more.
Consumer installment debt has continued to rise dramatically in the
United States. It started with the mad rush of "gold" cards in the late 70's,
accelerated with the advent of platinum cards in the 80's and then really spread like a
cancer as competition for your credit card business skyrocketed with those 2.9%
"introductory" interest rates that invited consumers to move their business to
the lower rate card.
The hunger driving the big banks to deliver huge profits through the
lending of billions of dollars to millions of consumers at rates in excess of 15-18% has
created a surge in consumer bankruptcies over the last few years, with some experts
projecting over 1.5 million personal bankruptcies by the end of 1999.
So are you really surprised that the banking lobby has been working hard
to get Congress to revise the bankruptcy laws of the land? The last time the laws relating
to consumer bankruptcy were updated was in 1978...about the same time the first
"gold" card burst onto the plastic scene.
Thinking About Using A Credit Counselor?
Who's Going To Protect YOU From Them?
"I owe the money so I've gotta pay it back." Sound familiar?
How many times have you thought that? How many times have you said that? No
surprise...Americans are an honest group that try their best to pay back the monies they
owe under the terms originally agreed upon. But what about the credit card bought by
another company with new rules? What about the credit card company that changes the rules
halfway through the game and decides to hit you with higher interest rates if you're late
with a payment?
What happens if you lose your job because your company
"downsizes?" What happens if you are in an accident and the other person doesn't
have insurance but you've got enormous medical bills? What happens if you simply use bad
judgment and screw up and there's no real way out?
You either admit that you're in deep doo-doo and take aggressive action
to save your home, your car and your family from financial ruin, or you sink like a rock
to the bottom of the ocean of red ink.
Wanna try credit counseling? Is it really counseling,
or is it simply another form of a debt collection agency designed to give you a warm and
fuzzy feeling? There's all types of credit counselors out there to choose from today:
There's the most familiar of the group of credit counselors that
advertise heavily on television, on the radio and on billboards. You know the ones that
love to thump their chests and brag about being a "non-profit" agency.
Many of their representatives (when cornered by anybody with a wisp of
knowledge about how they work) tout that they're supported by "tax deductible
donations" from companies in your town or from across the country. Tax deductible,
huh? If you work for a company and they pay you a salary or commission, that's a tax
deductible expense, too. It's smoke-and-mirrors, folks. They're debt collectors and they
want you to let them collect your debts. Sounds like the wolf in sheep's clothing.
There are credit counseling agencies that tout religious affiliations.
There are counseling agencies that sound like a newer version of some of the older
organizations. There are credit counselors popping up like toadstools after a spring rain.
And there's a reason. It's a profitable business that's growing exponentially thanks to
the sloppy lending practices of a bunch of extremely greedy banks. Have you figured out
that non-profit doesn't mean it's a charity?
An Aggressive Consumer Strategy For the Next Century
An article in The Dallas Morning News on November 29, 1998 summed the
situation up pretty succinctly:
"Although 1 percent of all households files for bankruptcy each
year, University of Michigan economics professor Dr. Michele J. White believes a
significant percentage of American households "would benefit from filing for
bankruptcy and the actual figure could be several times higher if most households plan in
advance for the possibility of filing."
In other words, only a small percentage of the households that would
benefit from having their debts discharged actually take the legally acceptable
remedy."
That's right folks, if you do a little planning to take full advantage
of the laws protecting debtors, laws that have been in force for a long time, you can
emerge in better financial shape with a second chance at not allowing yourself to ever get
into the same predicament. A second chance at getting your act (and keeping your family)
together. A second chance at getting the proper education and knowledge that will allow
you to make better decisions and plan for the rest of your life. A second chance, period.
My advice? Know what your options are...
The Wildcard Factors and Frequently Asked Questions
Do you have any IRS problems? Child support debt problems? Student loan
problems? Any of these can complicate a straight Chapter 7 bankruptcy and slow the process
down to a crawl.
IRS: If you are a non-filer or have other IRS debts and
difficulties, depending on the depth of your situation it may be necessary to consult with
either a qualified tax attorney, certified public accountant or enrolled agent. My choice
for solving these challenges quickly and to the advantage of the consumer? This is a
no-brainer: Give Jay Schlichting a call at The Schlichting Group: (972) 385-8182 or
toll-free: (877) 590-2500...or check out their website: www.slicktax.com
[Tell Jay I sent you and he'll give you a free half-hour consultation. By the way, no
matter where you're located across the nation, The Schlichting Group can handle your mess
with the IRS; they represent consumers in all 50 states!]
Child Support: Don't think you're going to skate free
if you owe back child support. If you owe, you're going to pay, and there's not a
bankruptcy court in the land that will let you out of this responsibility.
Student Loan Problems: You're not going to be freed
from these obligations either, in most circumstances. However a bankruptcy can many times
be an effective tool to renegotiate these obligations as well. What about your retirement
monies or investments? Do you have funds invested in the stock market through an IRA, SEP,
401K or Keogh? Do you have cash-value life insurance policies?
Do you own a home? With proper foresight and planning,
most--if not all--of these assets can be protected from your creditors and remain your
property after the bankruptcy is completed.
Are you about to lose your home to foreclosure? If
you're behind on your house payments, there's a chance that qualified legal counsel can
help you re-negotiate and avoid filing for bankruptcy. However, if you're broke and owe
more money than you can get your hands on to cure your defaulted mortgage (making a
bankruptcy the only option to avoid foreclosure), this is your signal to engage the
services of a qualified attorney that will protect your home by filing for a Chapter 13
bankruptcy.
Learned enough?
Ready to get on with the rest of your life? Don't want to risk getting
buried under the upcoming bankruptcy law revisions? E-mail
me for more information and how to contact my choice for the best consumer representation
no matter where you live across the nation. However: If
you write to me for some direction, you must be sure to include
your city/state of residence.Then what are you waiting for?
Remember: You might not even need to go the bankruptcy
route, but many times the threat of taking refuge in the bankruptcy laws is enough to get
your creditors to deal with you. Good luck!
Ben's Bonus.....The Certified Letter/Harassment Tourniquet:
One of the most frequent requests I receive is for my famous "Cease &
Desist" letter featured in my #1 bestseller Back Off! Let me first urge you to get
your hands on a copy of the book....you can get ordering information by clicking here:
www.bendover.com/back_off.asp
But in the mean time, here's some valuable information that will not only show you how to
write the Cease & Desist letter, but give you a little extra breathing room while
you're waiting for your book to arrive: www.bendover.com/debradebt.asp |
