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HOW TO AVOID BEING RIPPED OFF BY A CAR DEALERSHIP OR CAR SALESMAN, part 1.
Ever wondered what you should do if you are scammed by a car dealership or a car salesman?  What are the used car dealer tricks?  How do you avoid a car dealer lying to you about financing?
In order to be a victim you need to learn how to beat the salesman or dealership.

Below are a series of articles or links to various resources.  If you read them all you will see a pattern of lying, scheming and outright fraud.  Know their games before you are caught in their web of deceit.
Now don’t get me wrong – I really believe there are honest car dealers, but they are so few that they are painted with the same brush as all the bad ones.  Do your homework in order to avoid losing money, time and your senses.

Top Ten Consumer Scams (including auto scams)
Reprint from the Arizona Attorney General’s Office

1. Auto Purchases and Repair (details listed  below)
2. Work-at-Home Jobs and Business “Opportunity” Schemes
3. Certified Check Fraud
4. Charity Fraud and Scams
5. Internet Auctions and Fraud
6. Identity Theft
7. Mortgage Foreclosure “Rescue” Schemes
8. Payday and Other “Quick Cash” Loans
9. Prize Notification Scams
10. Telemarketing Rip-offs

Also included in this publication is a Resource Page and Important Information about Consumer Complaints
Buying a New or Used Car
Next to a home, an automobile is often the largest purchase consumers make. Consumers who are not aware of their rights often make bad deals. The Attorney General’s Office has a separate publication entitled Consumers’ Guide to Buying a Car: Steer Clear of Trouble! that is available on our Web site at www.azag.gov.
Red Flags
• A salesperson rushes you to sign paperwork without giving you a chance to review the contract terms.
• Advertised minimum trade-in amounts and free gifts. Dealers may raise the price of the car to offset a low value trade-in or the cost of the “gift.”
• A contract that has terms substantially different than what was advertised or what the salesperson promised.
• A salesperson suggests putting false information on your finance application, such as inflating your income. Providing false information to obtain financing is a crime and you could end up with a contract you cannot afford.
• A salesperson suggests you take the car home before financing is approved. This practice is designed to “lock you in” to a purchase. If you take a newly purchased car home and find out later you will have to pay more than expected for financing, you should be able to get your trade-in back and return the newly purchased car (A.R.S. § 44-1371). Auto Purchases and Repairs Protect Yourself
• Do your homework. Get information about car dealers from the Better Business Bureau (us.bbb.org). Research the car’s value before negotiating a price. Look up the value in the Kelley Blue Book (www.kbb.com) or at Edmunds.com (www.edmunds.com).
• Arrange financing with your bank or credit union before car shopping.
• Be skeptical of the claims made in car advertisements and read the fine print carefully. (Save copies!)
• Make sure all promises made by the salesperson or dealership are put in writing and that you get a copy.
• Request a free vehicle history report from the dealer before buying a used car.
• Read all documents and understand all terms before signing a purchase contract. Do not sign contracts with blank spaces.
• Make sure the financing is approved before turning in your trade-in vehicle or accepting the new car.
• If you are buying a used car, have a trusted mechanic inspect it before you buy.
• If you decide to finance through a dealer, negotiate the price first. Once the price is settled, then negotiate the monthly payment.
• With dealer financing, always ask the dealer if the interest rate being offered is their lowest rate, whether the rate includes any profit for the dealer, and if so, how much.
• REMEMBER: Arizona does not have a cooling-off period or three-day right to cancel a car sale.
Extended Warranties and Service Contracts
At the time of purchase, dealers may offer an extended warranty or service contract for an additional cost, but it can be expensive. In fact, extended warranties are often one of the most profitable aspects of car sales. Think carefully before purchasing a service contract. If the car model you have purchased has a record of reliability or you expect to own your car for five years or less, it may not be worthwhile to purchase an extended warranty.
If you are interested in a service contract, remember that cost and coverage vary greatly and may be subject to negotiation. Make sure you receive a copy of the terms and conditions of the contract from the provider.
If you pass on an extended warranty at the time you purchase your car, you may receive notices in the mail years later informing you that your original warranty is about to expire or has expired. These notices may not come from the dealership where you purchased your car, but instead may be sent by an independent service contract provider trying to sell you an extended warranty. Certain providers of service contracts or extended warranties must be registered with the Arizona Department of Insurance. Therefore, before responding to a solicitation, contact the Department of Insurance (www.id.state.az.us) to make sure the extended warranty provider is in compliance with state law.
Arizona’s Lemon Law New Car:
The Arizona Lemon Law (A.R.S. § 44-1261 et seq.) has some specific protections. Consumers should consult the law or an attorney if their new car does not operate in a reasonable manner.

Here are the basics:
The period covered by the Lemon Law is the same as the term of the manufacturer’s warranty or two years or 24,000 miles, whichever is earlier. The covered period begins on the date the consumer receives the vehicle.
During the covered period, if the manufacturer fails to repair the defect(s) after four attempts, or if the car is out of service by reason of repair for a cumulative total of 30 or more calendar days, the manufacturer must accept return of the car or replace it with a new car (contact your dealer).
Used Car: A used car is covered by the Arizona Used Car Lemon Law (A.R.S. § 44-1267) if a major component breaks within 15 days or 500 miles after the car was purchased, whichever comes first. You have to pay up to $25 for the first two repairs. The recovery for the consumer is limited to the purchase amount paid for the car.
Car Repairs

At some point, your car will need repairs. Knowing how your car operates and familiarizing yourself with the owner’s manual for your car will help you spot problems. It is best to find a trusted mechanic and auto repair shop before your car needs repairs. This will help you avoid making a last-minute or unnecessarily expensive decision.

Red Flags

• Aggressive scare tactics employed by repair shop personnel to pressure customers.
• Refuse to give you a written estimate.
• Failure to provide a warranty on parts and labor. Protect Yourself
• Ask for car repair recommendations from people you trust. Check with the Better Business Bureau to see if there are any complaints against the repair shop.
• If your car is under warranty, make sure that the repair shop is authorized to provide service for your car’s make and model. Work done by an unauthorized repair shop could void the warranty.
• If possible, get several written quotes from different repair shops before a major repair is done.
• Get a written estimate first. The estimate should identify the problem to be repaired, the parts needed and the anticipated labor charge. Make sure you get a signed copy of the estimate.
• Pay your bill with a credit card, if you can, to give you maximum flexibility to dispute the charge if something goes wrong. • Prepare for repairs by learning about your vehicle and preventa tive maintenance, before you experience a problem.
• Test drive your vehicle after having it repaired to make sure the car is fixed to your satisfaction.
• There is no such thing as a “standard warranty” on repairs. Make sure you understand what is covered under your warranty and get it in writing.

Click here for the entire article from the Attorney General’s Office

Link to part 2 of this series
The post How To Avoid Scams by Car Dealers & Salesmen, Part 1 appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.

By Emma G. Fitzsimmons

After a growing furor among Uber drivers in New York City in 2016 over plunging incomes, Uber relented and made a rare concession: It agreed to recognize a local driver group.

The group, the Independent Drivers Guild, was not quite a union, but it would meet regularly with Uber management and advocate for drivers. Still, there was lingering suspicion that the guild was a pawn for Uber since it accepts money from the powerful company.
But two years later, the guild is taking an increasingly confrontational stance toward Uber as it pushes for higher pay and a cap on new drivers.
Backed by veterans from the Barack Obama and Bernie Sanders presidential campaigns, the guild is drawing attention to the plight of Uber drivers struggling to make a living — just like taxi drivers.
After a taxi driver killed himself last month — one of six driver suicides since December — the Independent Drivers Guild called for new regulations in stark terms, saying city leaders had ignored “widespread exploitation.” While Uber as a corporate behemoth has eviscerated the yellow cab industry, front-line workers in both worlds share a common bond over their economic desperation.
“How many more of our families must be shattered before the city will act?” said Sohail Rana, an Uber driver and guild member.
Yet some continue to doubt the guild’s independence. Leaders will not say how much Uber pays the guild as part of its agreement to represent drivers or how many dues-paying members it has. But officials at Uber are hardly pleased by the group’s decision to go after its bottom line.
The guild’s campaign comes as New York City is considering stricter rules for Uber and other ride-hailing services that have flooded the streets with vehicles. Mayor Bill de Blasio and the City Council are under pressure to address several issues: setting fair wages for drivers, reducing street congestion and stabilizing the crashing values of taxi medallions.
Last Monday, Uber’s chief executive, Dara Khosrowshahi, visited City Hall as part of a global charm offensive to repair the company’s image. Mr. Khosrowshahi met with Corey Johnson, the City Council speaker, who said recently that it had been a mistake not to rein in Uber’s growth in 2015, when Mr. de Blasio tried unsuccessfully to institute a cap.
Uber has become hugely popular in New York, and its trips outpaced yellow taxis for the first time last year. There are about 65,000 vehicles affiliated with Uber in the city, which provide more than 400,000 trips per day, according to the Taxi and Limousine Commission. Lyft, its main rival, tallies about 112,000 trips per day. City law caps the number of yellow taxis at about 13,500; they typically make about 300,000 trips each day.
New Yorkers get cheap rides in nice vehicles — and a respite from the failing subway — while Uber is moving toward an initial public offering next year at a value of $48 billion. But many of the drivers who New Yorkers and Uber executives rely on are feeling hopeless.
Drivers are trapped in predatory car loans. The money they make from each trip is relatively paltry after fees, like sales tax, are deducted and after Uber takes its cut of more than 20 percent.
Pedro Acosta began driving for Uber shortly after the service arrived in New York in 2011. At first, he made a good living. Uber enticed drivers, promising they would make $5,000 during their first month. But then the app started reducing its rates.
“They dropped the price so much,” Mr. Acosta said at his apartment in East New York, Brooklyn, the day after he worked an 11-hour shift. “We have to work so many hours.”
Mr. Acosta made 4,457 trips for Uber last year, or more than 85 rides each week. He made about $30,000 after expenses, according to his tax returns, an amount that he said was difficult to live off in an increasingly expensive city. He has six children, and his wife works giving massages and facials.
His expenses add up quickly — a $750 monthly car payment, insurance, gas, oil changes, professional clothing. To buy his 2016 Mitsubishi Outlander SUV, Mr. Acosta took out a loan with an interest rate of 17.7 percent. He makes a point of wearing a tie in hopes of improving his rating as a driver and making his children proud.
A survey by the Independent Drivers Guild found that one-fifth of drivers had household incomes of less than $30,000 per year. A survey by a competing group, the New York Taxi Workers Alliance, which represents taxi and ride-hailing service drivers, found that about 44 percent of drivers made incomes between $20,000 and $39,000.
Mr. Acosta, a guild member, pays $18 in dues each month. The group has given him a voice, he said, like when it fought to allow passengers to tip from within the app — an idea Uber embraced last year. Most riders still do not tip, though. “They got used to not paying a tip,” he said.
The guild is now calling for change. It wants a minimum pay rate for app drivers, similar to the metered fare taxi drivers earn; a limit on Uber’s commission; and a halt to licensing additional drivers.
The City Council is considering a series of bills, including one that would restrict the number of for-hire vehicles. At the same time, the city’s taxi commission is studying driver pay and is planning to propose new rules this summer to address the problem.
Meera Joshi, the city’s taxi commissioner, said an influx of vehicles has made it much harder for drivers to find trips.
“The pay, from what we can see, has been declining, in part because of the competition among apps to offer the lowest passenger price,” Ms. Joshi said.
Alix Anfang, a spokeswoman for Uber, said the driver pay study was a good idea.
“We believe that all full-time drivers in N.Y.C. — taxi, limousine and Uber alike — should be able to make a living wage and support their families,” Ms. Anfang said.
The drivers who have taken their lives were from across the industry — men who drove taxis and for livery and black car services. The latest suicide was Abdul Saleh, a yellow taxi driver who leased his cab and died last week, according to the Taxi Workers Alliance.
In light of the taxi driver suicides, Mr. Khosrowshahi said he would support a fee on Uber trips to pay for a “hardship fund” to support taxi medallion owners who are struggling. Medallions once sold for more than $1 million and now go for as low as $175,000.
Bhairavi Desai, executive director of the New York Taxi Workers Alliance, slammed the “hardship fund” as a public relations stunt and an attempt to avoid new regulations. Ms. Desai is a frequent critic of the Independent Drivers Guild, arguing that its leaders cannot be trusted because they receive money from Uber. Ms. Desai says the guild’s attacks on Uber are meant to give the impression that it is not cooperating with the company.
“They have to create tension to have some level of credibility,” Ms. Desai said.
The taxi workers alliance, which was founded in 1998 and has about 4,000 dues-paying members, has also pressed for new rules, including a vehicle cap and minimum fare rate.
But the Independent Drivers Guild’s message is more polished. The guild, which is affiliated with a regional branch of the International Association of Machinists and Aerospace Workers, hired Revolution Messaging, the company behind Mr. Sanders’s digital campaign in 2016. It was founded by staffers from Mr. Obama’s 2008 campaign.
Last week, the guild’s executive director, Ryan Price, criticized Mr. Khosrowshahi’s “hardship fund” as another fee that would hit workers.
“Uber’s C.E.O. needs to address the widespread hardship faced by drivers for his own company before considering taking another cut from our sub-minimum wage pay,” Mr. Price said.
Facing low wages and long hours, some Uber drivers have quit. But Mr. Acosta keeps working for the company because he needs a job with flexibility. One of his sons has spina bifida and uses a wheelchair. He has to take him to many appointments.
“I don’t have any other choice,” Mr. Acosta said.
Copyright 2018 The New York Times Company.  All rights reserved.

The amount you are required to pay back to your general unsecured creditors in a Chapter 13 Bankruptcy Case depends on various factors.  It can range from only a few pennies on the dollar to a 100% of the debt. The amount required to be paid must be the higher of the "Means Test" (projected disposable income) and the amount of the chapter 7 liquidation test.Means TestThe amount you are required to pay back must be at least the amount of you "projected disposable income" as calculated by the "means test" used in Chapter 13.  Basically, your monthly income is calculated and your expenses are deducted, leaving the "projected disposable income."
For purpose of this test, your income is based on the income for the six months period prior to the filing of the bankruptcy case. If the income changes, higher or lower, the new figure may be required to be used. The expenses used in these test are not your actual living expenses, but they are amounts based on the IRS collection standards for certain items and actual mortgage and car loan debts.The amount of  expenses is deducted from the income leaving the monthly "projected disposable income." Debtor with income less than median income will only be required to pay for three years, but over-median income debtors are required to pay for five years.Chapter 7 Liquidation TestThe amount required to be paid back in a Chapter 13 case must be at least as much as the "chapter 7 liquidation test" which is the amount that could be received on a hypothetical chapter 7 liquidation of your property.Jordan E. Bublick - Miami Bankruptcy Lawyer - North Miami & Kendall Offices - (305) 891-4055 - www.bublicklaw.com

By Zack Friedman

It's one of the most intensely-debated student loan questions: Can you discharge your student loans in bankruptcy?
The short answer: normally, student loans are not dischargeable. However, that may change.

Here's what you need to know - and why.

Student Loans & Bankruptcy: Overview

First, a quick overview. As many borrowers struggle to repay ballooning student loan debt, bankruptcy is one option that gets floated.

According to Make Lemonade, there are more than 44 million borrowers who collectively owe $1.5 trillion in student loan debt in the U.S. The average student in the Class of 2016 has $37,172 in student loan debt.

Student loans are now the second highest consumer debt category - behind mortgages, but ahead of credit card debt.

Unlike other consumer debt such as credit card and mortgage debt, however, student loans traditionally cannot be discharged in bankruptcy.

Why? Some can't explain the rationale for the student loan "no bankruptcy" exception, but others say it grew from a concern that student loan borrowers could take advantage of bankruptcy laws, borrow a bunch of debt, earn a degree and then file for bankruptcy.

There are exceptions, however, namely if certain conditions regarding financial hardship are met.

The Brunner Test: Financial Hardship
Those conditions are reflected in the Brunner test, which is the legal test in all circuit courts, except the 8th circuit and 1st circuit. The 8th circuit uses a totality of circumstances, which is similar to Brunner, while the 1st circuit has yet to declare a standard.

In plain English, the Brunner standard says:

1. the borrower has extenuating circumstances creating a hardship;
2. those circumstances are likely to continue for a term of the loan; and
3. the borrower has made good faith attempts to repay the loan. (The borrower does not actually have to make payments, but merely attempt to make payments - such as try to find a workable payment plan.)

There are variances across federal districts, but that’s the basic framework.

How Do You Discharge Student Loans In Bankruptcy?

In order to have a student loan discharged through bankruptcy, an Adversary Proceeding (a lawsuit within bankruptcy court) must be filed, where a debtor claims that paying the student loan would create an undue hardship for the debtor.

Were Student Loans Ever Dischargeable In Bankruptcy?

Yes. Prior to 1976, you could discharge your student loans in bankruptcy.

Congress then changed the law: student loans were dischargeable if they had been in repayment for five years. Subsequently, that period was extended to seven years.

In 1998, Congress removed dischargeablility except if a debtor could show that paying back the student loans would create an undue hardship. In 2005, Congress extended this protection to private student loans.

So, What's Changed Now?

According to the Wall Street Journal, which spoke to more than 50 current and past bankruptcy judges appointed during both Democratic and Republican administrations, some judges may be more open to helping debtors.

Does that mean the floodgates are now open and student loans can be discharged in bankruptcy?

No.

That said, some judges are looking at ways to help alleviate the burden. Examples, per the Wall Street Journal, may include:

• encouraging bankruptcy attorneys to represent debtors at no cost
• potentially eliminating future tax bills that be linked to student loan debt relief or debt cancellation after 25 years through federal student loan repayment programs
• cancelling private student loan debt from unaccredited schools
• allowing student loan borrowers to make full payments during the Chapter 13 debt repayment period (which can last five years)

While these tactics may be welcomed by some student loan borrowers, critics may question whether judges should actively try to circumvent the existing law (suggesting that Congress, and not judges, should make the law).

Since the vast majority of student loan debt outstanding is comprised of federal student loans, any cancellation of federal student loan debt would be at the federal government's (and taxpayer) expense.

What Else Can You Do If Your Struggling To Make Student Loan Payments?

Here are two strategies:

1. Income-Driven Repayment: For federal student loans, consider an income-driven repayment plan such as IBR, PAYE or REPAYE. Your payment is based on your income, family size and other factors, and is typically lower than the standard repayment plan.

After a certain period of time (such as 20 or 25 years, for example), your federal student loans (not private student loans) can be forgiven. However, you likely will owe income taxes on the amount of your student loans that are forgiven.

2. Pay Off Other Consumer Debt: If you have other high interest debt such as credit card debt, consider paying off this debt first (particularly if the interest rate is higher than your student loan interest rate). This can free up cash that can be applied to student loan debt reduction.

You can also consider a personal loan to pay off your credit card debt. Credit card consolidation is the process of paying off your existing credit card debt with a single personal loan at a lower interest rate.

If you can borrow a personal loan at a lower interest rate than your credit card debt, you can save in interest costs and also potentially improve your credit score.

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