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Have you made all your payments under your Chapter 13 plan?  You can still lose your discharge—unless you file your §1328 Certification. Why is that?  You cannot get a chapter 13 discharge if you were one of the people who caused the housing crisis back in 2007 and 2008.  Or if you’ve been convicted of [...]The post Chapter 13: Don’t get disqualified at the finish line appeared first on Robert Weed.

We often forget about the emotional toll that being in debt takes on us.
Once, about a decade ago, I was in debt. Deep, deep in debt.
My credit score was wrecked, and my credit cards were all worthless pieces of plastic.
For years, I struggled to get out of debt. It cost me a lot of money, but that was a drop in the bucket compared to the other costs associated with being in debt.
The Emotional Costs Of Being In Debt
My debt problems were caused by a rapid expansion of my practice that came to a screeching halt as the nation felt the aftereffects of 9/11.
I was young, exceptionally inexperienced in running a business of any sort, and had begun doing work that I didn’t find compelling. My staff was bloated, my systems inefficient, and my energy too low to care about the financial aspects of the practice.
When it fell apart, I felt like an idiot. I’d been duped by the promise of the American Dream, and now I was an absolute failure.
My wife was in school pursuing her career goals, and I was selling used compact discs online to pay the rent.
Each morning I looked in the mirror and hated the failure I saw reflected back at me.
Every night I tossed and turned for hours before falling asleep. Once sleep came, it was filled with nightmares.
Debt Slavery
When you’re in debt, you’re a slave to your financial problems. You work to pay your debts, cut costs so you have more money to pay debts, and all of your activities reflect that reality.
You’re not free anymore because no matter what you do, the benefits flow to someone else.
That loss of control over your financial destiny beats you down over time. You’re wearier than you would be otherwise, and your nights are bereft of rest.
Climbing Out
My financial problems came and went well over a decade ago, and I climbed out of the hole only by making some significant changes in my life and my practice.
I recognize that those changes may not be within your reach, and that my situation was a little different.
I was able to slash my business costs to the bone.
My income rose because I was more focused on a single type of work – consumer bankruptcy law – that I enjoy. That enjoyment was reflected in the quality of the work I did, and in the satisfaction my clients felt at the end of the case. That translated into more referrals.
My wife finished school and got a job.
I regained control by deciding to live without credit cards no matter how good my financial situation became.
You Get A Choice
I didn’t file for bankruptcy when I was in debt. I knew my options, worked them all as hard as I could, and made some really hard choices when it came to my financial problems.
You have choices as well.
You can choose to remain in debt slavery.
Or you can find another path.
Which way will you go?
Image credit:  Collin David Anderson
The Emotional Costs Of Being In Debt was originally published on Consumer Help Central. If you're seeing this message on another site, it has been stolen and is being used without permission. That's illegal, a violation of copyright, and just plain awful.

Written by: Robert DeMarco
United States Bankruptcy Laws – The Nelson Act
It would not be until 1898 that the next federal bankruptcy statute would pass Congress and become law. The Bankruptcy Act of 1898, Nelson Act, ch. 541, 30 Stat. 544, amended by Chandler Act, ch. 575, 52 Stat. 840 (1938), repealed by Act of Nov. 6, 1978, Pub. L. No. 95-598, 92 Stat. 2549. With the arrival of the Bankruptcy Act of 1898 came permanent federal bankruptcy legislation. As was often the case with bankruptcy legislation, the driving force behind the 1898 Act was creditors. Local creditors, via the “National Convention of Commercial Bodies of the United States,” pushed for a federal bankruptcy law throughout much of the 1880s and 1890s. Many believed federal bankruptcy legislation would put an end to the perceived interstate discrimination amongst creditors under various state insolvency statutes. Southern and western states opposed the notion for fear of governmental intrusion and the negative impact upon farmers. The 1898 Bankruptcy Act, as is the case of most legislation, represents a compromise of both positions.
Initially, the Bankruptcy Act of 1898 authorized the filing of voluntary bankruptcy petitions by any person who owes a debt, except a corporation. In 1910 the Bankruptcy Act was changed and amended, and the language used in the Bankruptcy Act of 1867 was restored thereby allowing corporations to file voluntary petitions for relief. 36 Stat. 839, Sec. 4 (Comp. St. Sec. 9588). The act extended eligibility for voluntary bankruptcy to “[a]ny person except a municipal, railroad, insurance, or banking corporation. . . .”
As a condition precedent to the filing of an involuntary petition under the Bankruptcy Act of 1898, creditors needed to present evidence of an act of bankruptcy, such as: (1) fraudulent conveyance or concealment of property; (2) preferential transfer, (3) suffering or permitting any creditor to obtain a lien through legal proceedings; (4) fraudulent or collusive assignment for the benefit of creditors; or (5) a written admission of inability to pay debts and willingness to be adjudged insolvent. A sixth was added in 1903: appointment of a receiver while insolvent. Under the 1898 Act, creditors retained the authority to elect trustees and the federal District Courts remained the courts of bankruptcy. The commissioners under earlier Acts and the registers under the Bankruptcy Act of 1876 were replaced by “referees” (the predecessor of today’s bankruptcy judges).
DATED:  July 9, 2013
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Debt collectors don’t have to stop calling you just because you ask them to leave you alone. Here’s what you need to know.
If you owe money, you’re probably getting calls from debt collectors.
Though some debt collectors can be fairly pleasant people, the reality is that most of these phone calls don’t go well.
When you try to get the calls to stop, they keep coming.  Same debt collector, same debt.  Same demand to pay.
You get angrier, the situation escalates, and things soon spiral out of control.
Why won’t they stop calling, and what do you need to do to make the phone stop ringing?
Phone Calls Don’t Stop Based On Your Say-So
People who call me about debt collection harassment typically start off by telling me that the phone calls didn’t stop in spite of their best efforts.
I hate to burst your bubble, but in many cases the debt collector hasn’t done anything wrong by calling.  There are limits to time and place of phone calls, but a call in and of itself isn’t illegal.
True, it’s a waste of time to keep dialing your phone once you say you’re not going to pay.  But there’s no law against wasting time.
How To Stop Phone Calls From Debt Collectors
Under the law, a debt collector must cease communications with a consumer only when the consumer notifies a debt collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector to cease further communication with the consumer.
It’s also illegal for debt collectors to call you if they know or have reason to know that you’re represented by a lawyer.
Your voice means nothing, and won’t stop the calls.
If The Calls Continue …
… then you may have the ability to sue for a violation of the Fair Debt Collection Practices Act as well as under state laws.
When you sue a debt collector for violating your rights under the collection laws, you can collect money if you win. You can also collect legal fees and costs in connection with bringing the lawsuit.
The way I handle cases like that is by agreeing to be paid a portion of the financial recovery.
You get the calls to stop, plus some money for damages. I get paid a portion of the award for my legal fees.
Of course, we’d both rather just the calls stop. So write the letter, keep proof that you sent it along with a copy of the letter, and let’s hope the calls stop.
If not, you know where to find me.
Image credit:  coreycam/Flickr
How To Stop Debt Collector Phone Calls was originally published on Consumer Help Central. If you're seeing this message on another site, it has been stolen and is being used without permission. That's illegal, a violation of copyright, and just plain awful.