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In over 19 years of being a bankruptcy lawyer I’ve heard – and been part of – both sides of the discussion about how smart it is to file for bankruptcy. After much consideration, I’ve concluded that it’s a stupid conversation.
There’s a lot of misinformation out there about bankruptcy.
Credit counselors and debt settlement companies will tell you it’s the worst thing for your credit, in spite of the fact that even the Federal Reserve Bank of New York (you know, the folks who run the banking system) says that’s untrue.
On the other side of the discussion comes the bankruptcy lawyers who think that a trip to bankruptcy court is the cure for what ails your financial situation.
And a recent article in Huffington Post includes a story of someone who, upon hearing that a friend was going to file for bankruptcy, responds with, “congratulations.”
If you’re in debt and don’t handle it, you’re putting yourself at risk financially. Retirement, after all, is one day closer every time the sun rises. Illness, job loss, family upheaval and an unexpected household repair can all cause calamities if you’re not on firm financial footing.
But the key isn’t whether bankruptcy is good or bad – it’s one of attending to your financial problems in the best manner possible.
And here’s what you should be doing instead.
Begin with Expenses
Start with looking at your budget and trying to figure out whether your debt problems are the result of a low income, poor budgeting, or both.
Take each expense and ask yourself whether you can live without something, or if there’s a less expensive option. View every dollar under a microscope, then start investigating options.
I’m not necessarily telling you to cut the Starbucks out of your life – that’s been beaten to a pulp by the personal finance pundits. But can you switch your cell phone service to a provider that may be less expensive without a reduction in call quality?
Can you cut out a few pay channels from your cable television service, or block the on-demand movies so the kids don’t rack up hundreds of dollar in extra fees each month?
If you’re paying student loans, have you investigated some of the federal programs that may bring down your monthly payments?
Move to Income
You’ve gone through your budget an slashed expenses – good work!
But the job’s not done. You need to look at your income to see if you’re making enough money at your job.
I’m not going to tell you to start delivering pizza at night to make more money. If you’re working full-time then you do plenty as is. You shouldn’t have to work 20 hour days just to make ends meet.
Look around and see what others are making in comparable positions with similar backgrounds and experience. If they’re making more, it may be time to think about a new employer or asking for a raise from your current boss.
Take a look at your family. Are the kids old enough to get part-time jobs so they can fund their own entertainment and cell phones? Is your spouse able to work outside of the house? If so, time for a family meeting about earning your fair share.
Is There Enough?
You’ve got your expenses down and your income up. Now take out the debts and add them up – all of them, even the ones you’re currently paying.
Is there enough left over at the end of the month to pay off the debts over the next 3-5 years? If so, that’s probably what you should do.
And if not, you’ve got some thinking to do.
If You Can Pay, You Probably Should (But Only If … )
Even if you can pay off all the debts over the next 3-5 years, you need to look at the rest of your world to see if it makes sense to do so.
If you’re expecting a massive change in your lifestyle such as retirement, you’ve got to make sure you’ll have enough money to make that change. If not, can you get there while paying off the debt?
Retirement isn’t the only change you may need to plan for. Kids head towards college, parents get older and need financial support, and more. Plan for those financial hiccups before making the decision to plow all your money into debt repayment – if you don’t, you may end up paying off all your debt only to dig yourself back in the hole later on.
Bankruptcy Is One of Many Options
If you can’t pay the debts then you can look into filing for bankruptcy.
But before you do, investigate all other options for debt relief.
That includes credit counseling and debt settlement.
You need to get the facts about all options so that you can choose the one that’s right for you.
Pick the Smart Option
Bankruptcy is the right choice when the others are wrong.
This isn’t a solution you pick in a moment of despair, and it’s not one that you avoid in the face of logic.
Choose the solution that works for you, and do it only after taking the steps you need to make the right choice.
In the end, that’s the only smart move to make.
The post Why Filing for Bankruptcy Isn’t Smart appeared first on Bankruptcy and Student Loan Lawyers - 866.787.8078.
Do you own and manage rental property in Walworth County? If so, this post could save you thousands of dollars. Most lost funds are incurred by landlords when a tenant moves out. Repairing and replacing household items adds up. There is normally a dispute between the landlord and the tenant over the property’s condition at the time of the tenant’s move-out. You can avoid this type of situation by clearly defining the condition of your property at the time of move-in and defining the condition your property should be left in when the tenant moves out. Learn how to withhold security deposits without complaints from your tenants.
6 Money Saving Tips for Landlords from our Walworth County Real Estate Attorney
1. Video the Tenant Walk-Through. It’s time to get out your camcorder, camera, or mobile phone and use the video feature. Be sure to include the date, time, and name of your future tenants. Video record the entire walk-through with your potential tenants. Try to get a 360 degree view of each room. Include the tenants in each room view. Have your future tenants and yourself comment on the condition of each room. You will take the video seriously. Your tenants will take the video seriously, especially when you have them state their names as listed on the lease agreement. This pre-move-in video will make it very difficult for any tenant to dispute the condition of your property at the time of move-in.
2. Take Photographs During the Walk-Through. If you do not have access to a video recorder, take photographs. Document the condition of each item inside and outside of your Walworth County real estate property. Your tenant will notice your documentation of the property and, in turn, should be more careful while occupying your property. Taking photographs during the tenant walk-through also allows you to easily compare before and after photos. If needed, you will have the proof you need of an item’s condition in case a dispute arises.
3. Take Your Time During the Walk-Through. This is not the time to rush. The walk-through with your tenant is one of the most important processes when renting or leasing your Walworth County real estate property. Be extremely thorough documenting anything that could potentially be damaged during the lease timeframe. Note the condition of items such as: the lawn, wall paint, trim, front door, screen, windows, roof, flooring, garage doors, fence, appliances, and more.
4. Create Room Condition Sheets and Have Them Signed. Create room condition sheets for each room in your Walworth County rental property. List items such as: condition of paint, condition of trim, condition of carpet, etc. with a place for comments. Complete the condition sheet for each room with the tenant as you walk-through the rental property. When the walk-through is complete, have the tenants sign the forms agreeing to the condition of the property.
5. Include a Replacement Cost List. During the lease signing, go over a replacement cost list of typical items that get replaced after a move-out. Layout the cost for replacing door knobs, filling holes in the wall, replacing light fixtures, repairing broken windows, cleaning the refrigerator, shampooing carpets, repairing tile floors, etc. When the tenant moves out, there should be no surprise when it comes to repair and replacement costs.
6. Execute a Pre-Move-Out Inspection. If you have the opportunity, perform a pre-move-out inspection at least one week before the tenant moves out. Take photographs. Bring your property condition sheets and your repair and replacement cost sheet. Leave copies with your tenant noting items that need to be cleaned, repaired, and/or replaced. Be sure your tenant understands the costs involved if you need to clean, repair, or replace items yourself. This gives your tenant a chance to fix items and save security deposit monies before moving out. It will also be less work on your maintenance team. Bring your maintenance crew during the pre-move-out inspection. They will know ahead of time what they may need to clean, repair, and replace, as well as any parts that need to be ordered.
Our Walworth County real estate attorney knows that no landlord wants to end up in court over a security deposit dispute. If you have a thorough and consistent plan in place, you should be able to avoid not only repair and replacement costs, but also court costs as well.
Contact our Walworth County Real Estate Attorney
If you have questions for our Walworth County real estate attorney regarding landlord tenant issues, feel free to contact our office at any time. Our Walworth County real estate law offices are conveniently located in Muskego, Salem, Delavan, and Lake Geneva, Wisconsin. You can reach our Walworth County real estate attorney by phone at 262-725-0175 or by email via our website’s contact page.
*The content and material on this web page is for informational purposes only and does not constitute legal advice.
"Post hoc ergo propter hoc" is Latin for the fallacy of reasoning of "after this, therefore because of this." In an episode of West Wing, President Bartlet challenged the 27 lawyers in the room that at least one of them should know the meaning of this Latin phrase. In an episode of Big Bang, Sheldon also mentions this logical fallacy.
Logical Fallacy"Post hoc ergo propter hoc" is a logical fallacy referring to questionable causation, that is, "since event Y followed event X, event Y must have been caused by event X." This example is given: "The rooster crows immediately before the sunrise, therefor the rooster causes the sun to rise." Even Ernie on Sesame Street falls victim to this fallacy of reasoning in this clip where he reached the conclusion that it is the banana in his ear that is keeping the alligators away.
5th and 11th Circuit
The Court in Huss v. Gayden, 571 F.3d 442 (5th Cir. 2009) refers to this logical fallacy in the determination of the admissibility of expert testimony. The Court in Huss reviewed that it "is axiomatic that causation testimony is inadmissible if an expert relies upon studies or publications, the authors of which were themselves unwilling to conclude that causation had been proven."
More Logical Fallacies to Avoid
- "Argumentum ad Hominen" - argument directed to the person - instead of attacking the opponent's argument, the character of the opponent is attacked.
- "Argumentum ad Misericordian" - an appeal to pity - the audience is asked to accept an argument not due to the strength of the argument but rather because of the speaker's piteous circumstances.
- "Argumentum ad Populum" - the appeal to emotion - the attempt to establish its conclusion with values the speaker's audience holds dear.
- "Ignoratio Elenchi" - proving an irrelevant conclusion - attacking the "straw man".
- "Petitio Principii" - a circular argument - begging the question.
The Beatles
It is now known that the Beatles' song were full, full, full of logical fallacies, such as: sweeping generalizations ("all you need is love"), ad agnorantium/appeal to ignorance ("no where man, please listen, you don't know what you're missing"), oversimplification ("it's easy"), straw man ("everywhere there's lot of piggies living piggy lives"), and a popular idea must be correct ("I get by with a little help from my friends"). But here Paul actually warns making logical fallacies: ("Think of what you're saying, you can get it wrong, and still you think that it's all right.")
Further
Here is an explanation of further logical fallacies and critical thinking that may help a lawyer. Here is more and more and more and more and more and finally the logical fallacy that has caused some much trouble: "Home prices have not fallen since the Great Depression. Therefore, home prices will not fall."Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
"Post hoc ergo propter hoc" is Latin for the fallacy of reasoning of "after this, therefore because of this." In an episode of West Wing, President Bartlet challenged the 27 lawyers in the room that at least one of them should know the meaning of this Latin phrase. In an episode of Big Bang, Sheldon also mentions this logical fallacy.
Logical Fallacy"Post hoc ergo propter hoc" is a logical fallacy referring to questionable causation, that is, "since event Y followed event X, event Y must have been caused by event X." This example is given: "The rooster crows immediately before the sunrise, therefor the rooster causes the sun to rise." Even Ernie on Sesame Street falls victim to this fallacy of reasoning in this clip where he reached the conclusion that it is the banana in his ear that is keeping the alligators away.
5th and 11th Circuit
The Court in Huss v. Gayden, 571 F.3d 442 (5th Cir. 2009) refers to this logical fallacy in the determination of the admissibility of expert testimony. The Court in Huss reviewed that it "is axiomatic that causation testimony is inadmissible if an expert relies upon studies or publications, the authors of which were themselves unwilling to conclude that causation had been proven."
More Logical Fallacies to Avoid
- "Argumentum ad Hominen" - argument directed to the person - instead of attacking the opponent's argument, the character of the opponent is attacked.
- "Argumentum ad Misericordian" - an appeal to pity - the audience is asked to accept an argument not due to the strength of the argument but rather because of the speaker's piteous circumstances.
- "Argumentum ad Populum" - the appeal to emotion - the attempt to establish its conclusion with values the speaker's audience holds dear.
- "Ignoratio Elenchi" - proving an irrelevant conclusion - attacking the "straw man".
- "Petitio Principii" - a circular argument - begging the question.
The Beatles
It is now known that the Beatles' song were full, full, full of logical fallacies, such as: sweeping generalizations ("all you need is love"), ad agnorantium/appeal to ignorance ("no where man, please listen, you don't know what you're missing"), oversimplification ("it's easy"), straw man ("everywhere there's lot of piggies living piggy lives"), and a popular idea must be correct ("I get by with a little help from my friends"). But here Paul actually warns making logical fallacies: ("Think of what you're saying, you can get it wrong, and still you think that it's all right.")
Further
Here is an explanation of further logical fallacies and critical thinking that may help a lawyer. Here is more and more and more and more and more and finally the logical fallacy that has caused some much trouble: "Home prices have not fallen since the Great Depression. Therefore, home prices will not fall."Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
A chapter 13 case is started by filing a petition with the Bankruptcy Court along with the schedules and statements that explain the person's financial situation. Under chapter 13, the debtor must submit a plan or reorganization to provide for his various classes of debt - priority, secured, and unsecured. A chapter 13 debtor is generally required to devote all of his "projected disposable income" to repay a percentage of unsecured debt over a period of three to five years.
A chapter 13 case is overseen by a chapter 13 trustee. The main duties of a chapter 13 trustee is to receive the monthly chapter 13 plan payments and to distribute them to the creditors pursuant to the chapter 13 plan.
A chapter 13 debtor receives a discharge after all payments required under the chapter 13 plan have been completed.Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
A chapter 13 case is started by filing a petition with the Bankruptcy Court along with the schedules and statements that explain the person's financial situation. Under chapter 13, the debtor must submit a plan or reorganization to provide for his various classes of debt - priority, secured, and unsecured. A chapter 13 debtor is generally required to devote all of his "projected disposable income" to repay a percentage of unsecured debt over a period of three to five years.
A chapter 13 case is overseen by a chapter 13 trustee. The main duties of a chapter 13 trustee is to receive the monthly chapter 13 plan payments and to distribute them to the creditors pursuant to the chapter 13 plan.
A chapter 13 debtor receives a discharge after all payments required under the chapter 13 plan have been completed.Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
When a person files for bankruptcy in Florida and owes a gambling debt in Nevada, which states' law apply in determining whether the claim on the gambling debt should be allowed or whether it is dischargeable or nondischargeable? A 2006 Florida bankruptcy ruling dealt with this issue.
The Bankruptcy Court reviewed that normally a federal court hearing a matter pursuant to diversity jurisdiction must apply the law of the state in which it sits, but that such rule does not apply to a bankruptcy court as it is not sitting as a court of diversity. The Bankruptcy Court reviewed prior precedent that noted that the choice of which state's law applies should in part be based on which state's law more logically relates to the claim and the "significant relationship" test.
Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
When a person files for bankruptcy in Florida and owes a gambling debt in Nevada, which states' law apply in determining whether the claim on the gambling debt should be allowed or whether it is dischargeable or nondischargeable? A 2006 Florida bankruptcy ruling dealt with this issue.
The Bankruptcy Court reviewed that normally a federal court hearing a matter pursuant to diversity jurisdiction must apply the law of the state in which it sits, but that such rule does not apply to a bankruptcy court as it is not sitting as a court of diversity. The Bankruptcy Court reviewed prior precedent that noted that the choice of which state's law applies should in part be based on which state's law more logically relates to the claim and the "significant relationship" test.
Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
Before your bankruptcy attorney pulls the trigger on an actual filing, you should undergo a thorough final review of your petition. You may discover that your monthly plan payment can change based upon your current circumstances. You may have assets that have shifted or otherwise transferred in the ordinary course of business. You also may+ Read More
The post Final Review Of Your Chapter 13 Bankruptcy Petition appeared first on David M. Siegel.
The issuance by the Floirda Third District Court of Appeals in Miami of the recent decision in Deutsche Bank Trust Company Americas, etc. v. Harry Beauvais, et al., Case No. 3D14-575, may be an appropriate time to review what actions a Miami homeowner that seeks to save their home from foreclosure. If upheld, the Court's decision may indicate that some notions of "foreclosure defense" may need to be reviewed.
A homeowner seeking to save their home from foreclosure may be better served on directing his or her efforts towards the modification of their mortgage instead of "winning" a foreclosure case. For example, it appears that in many or most cases, arguments regarding statute of limitations issues may not result in a "quiet title" judgment.
Present Modification Opportunities
If a homeowner seeks to save their home from foreclosure, focusing primarily on "foreclosure defense" is not likely to be the solution. The federal government, the mortgage lenders, and the general economic climate, present good opportunities to modify your mortgage that may not exist in years to come. For many, the after-tax benefit cost of paying a modified mortgage payment may not be significantly more than paying for a "foreclosure defense"
Chapter 13 Bankruptcy
A person may pursue a mortgage modification on their own or with the assistance of an attorney. In some cases, it may be appropriate to file for the mortgage modification as part of the Bankruptcy Court' Mortgage Modification Mediation ("MMM") program. If the second mortgage is wholly "underwater," the homeowner would often be able "lien strip" or avoid it as part of his chapter 13 plan.
Possible Rising Real Estate Price and Interest Rates
A homeowner may be making a error in not taking the opportunity to modify their mortgage based on present real estate values and interest rates. Real estate prices and interest rates may be rise, causing the new modification payment to be higher the longer a person waits to pursue a modification.
Also, if a person who has a first and second mortgage, it would be better to address their situation before there is a rise is in real estate prices. If the second mortgage is wholly "underwater", it may be avoidable in a bankruptcy case. If real estate prices go up enough that the second mortgage is not wholly "underwater," the second mortgage could not be avoided at all.
"Winning" Foreclosure
There may not exist much of a thing as "winning" a foreclosure case. For many, simply getting a foreclosure case dismissed, "with" or "without" prejudice may not be much of a "win". In most instances, a new foreclosure action may be filed on a new default almost immediately.
For example, "winning" a foreclosure case by getting the case dismissed may not be much of a "win" - it may only mean that the lender can simply file another case.
Statute of Limitations
Even if the statute of limitations has run to bring a foreclosure action on the mortgage note, generally the mortgage note remains valid and the mortgage and its liens remains valid. The continued validity of the mortgage and its lien is governed by the time period set forth in the statute of repose - which is different than the statute of limitations.
Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
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