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BANKRUPTCY LAWS ARE CHANGING: BEN'S CONSUMER-FRIENDLY ADVICE...SHOULDYOU GET READY TO STRAP-ON THE GRENADES AND GO TO WAR?
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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, then these are the same companies spending million 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 thegreediest [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 the 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 my 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? Then what are you waiting for? E-mail me for more information and how to contact my choice for the best consumer representation in Texas.
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: click here
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