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Peggy Tanous, former star of the television series “Real Housewives of Orange County” files for Chapter 7 bankruptcy protection. Known as a wealthy party girl to TV viewers, her financial liabilities include owing millions to a number of creditors including credit card companies, mortgage loans, and property taxes. Even though she reportedly owes millions, Tanous [...]
When you decide to work with us to determine if Arizona bankruptcy is the right choice for you, we will want to review all of your property (assets) and your debts. To read more about the kinds of information we will want, read our article on “Gathering All the Facts.” We will also want […]The post Determining Your Personal and Household Expenses in Arizona Bankruptcy appeared first on Tucson Bankruptcy Attorneys Trezza & Associates.
You may be able to settle your federal student loans.
You probably know that there are only two guarantees in life – death and taxes.
And you’ve also been told that when it comes to federal student loan debt, you’re on the hook for the full balance.
I can’t comment on the first (I pay my taxes but, to date, have not died) but I can tell you that settling the student loan beast isn’t a pipe dream.
Depending on your situation, it may or may not work out for you.
Federal Student Loan Settlement Guidelines
If you’re in default on your federal loans, the U.S. Department of Education explicitly allows debt collectors to settle your debt. If you’re current, that’s not going to happen.
Compromises are account settlements that involve a reduced overall payment to satisfy the federal student loan debt in full. Compromises are not to be offered as the first option in collection negotiations, and debt collectors are instructed to discuss it as an option after exhausting other negotiation opportunities.
Types Of Federal Student Loan Settlements
The U.S. Department of Education allows three types of settlement options:
- Standard compromises, which are as follows:
- You pay only the current principal and interest (waiver of projected collection costs/fees);
- You pay at least the current principal and half the interest (50%); or,
- You pay at least 90% of the current principal and interest balance.
- Discretionary compromises, which involve a payment of less than the standard compromise amount. All discretionary compromises require prior approval by U.S. Department of Education, so the collection agency can’t agree without some back-up documentation; and
- Nonstandard compromises, which are offered to only a very limited number of student loan borrower without approval by the U.S. Department of Education.
How A Federal Student Loan Settlement Gets Paid
If your settlement is approved, you’ll have to pay it by certified funds (cashier’s check, money order, certified personal check) or by credit card. The collection agency will not accept personal checks.
In addition, all settlement offers are valid for 90-days from the date of the date of approval. If you’re going to be making payment after the 90-day deadline, the collection agency will need to get approval from the U.S. Department of Education.
After Settlement, The Tax Man Cometh
When you settle a debt, you will get a Form 1099 in the mail. You may need to pay taxes on the forgiven amount of the loan, so be careful to factor that into your calculations before settling.
Get A Student Loan Lawyer Involved Or DIY?
I’ve had clients come to me after they tried to settle their federal student loan debts on their own, only to fail miserably. Some people have done themselves in by their words or actions, others can still be helped.
It all depends on you, your ability to negotiate on your own behalf, and the attitude of the debt collector.
But as far as I’m concerned, the risk of an unsuccessful negotiation is far larger than the cost of getting me involved. If you’re talking about $20,000 in federal student loan debt, settling it is going to make a huge difference in your life – why risk it?
Image credit: TiggerT
The Truth About Settling Federal Student Loans 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.
Bringing you the most up-to-date news, tips and blogs throughout the web. Here’s your Bankruptcy Update for June 11, 2013 Could BofA Still Toss Countrywide into Bankruptcy? National Envelope Hopes To Lick Bankruptcy Filing Arcapita’s novel sharia bankruptcy plan approved
Filing bankruptcy can give you the relief you need when the time is right to file. Some people are quick to say that the process may do more harm than good, but for many who have filed (including a long list of celebrities), it is the beginning of a getting your finances and your life [...]
This is part of our series on How To File Bankruptcy.
When you file bankruptcy, a failure to list all personal property may mean you don’t get to keep it.
When you think about property, you think of houses and cars. You’re not thinking about that junky sofa, a stack of CDs you abandoned years ago for an iTunes account, or that lawsuit you’re thinking about bringing.
Forget to list them on your bankruptcy schedules and you could find yourself giving it all up.
List All Personal Property
Under the bankruptcy laws, you’re required to disclose on your schedules all property you own.
That includes a laundry list of “stuff” you don’t ordinarily think about.
Everything from household furnishings to clothing, from bank accounts to potential lawsuits, from livestock to ammunition. It’s all got to be disclosed and valued.
How To List The Property
As with real property, you are required to describe the property with as much accuracy as possible. For example, you’ve got to provide the following information:
- description and location of the property;
- the nature of your interest; and
- the current value of the property.
How To Value Personal Property
The value of each item of personal property is the amount you could reasonably expect someone to pay for it. We’re not talking the cost to replace the items – we need to know how much would pay you for this particular item.
For musical instruments and jewelry think about, “pawn shop value”.
For collectibles, consider what a collector would pay.
Clothing and household furnishings? You’ll need to talk about Salvation Army valuation.
If you’ve got a pending lawsuit, we’ll need to talk with your lawyer and get a sense of what the case is worth.
Failure To Disclose
If you don’t list a piece of property, you lose the right to keep it.
The reason for this is that if you fail to list a piece of property, you can’t exempt any portion of the value. And given that all of your property becomes part of the bankruptcy estate when your bankruptcy case is filed, a failure to exempt the property means you haven’t kept it away from the estate.
This comes up most often in the case of a pending lawsuit for personal injury or money damages. If you don’t list it on your bankruptcy schedules, the other side will walk into court and get the judge to dismiss the case.
By failing to list it on your bankruptcy schedules, you’re effectively telling the world that you don’t own it.
That’s why I spend so much time with my clients talking about property. It’s important to protect you and cover all the bases.
How To File Bankruptcy: Listing Your Personal Property 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.
If your car has been repossessed and you live in California, your life may get a lot more difficult. Or not.
Most people think that if they don’t pay the car loan, the lender will come to repossess the vehicle. Once that’s done, they figure it’s all over.
That’s exactly what my client thought when the tow truck was hauling away his Ford Explorer. Fast forward a few months and he knows better.
Now, so can you.
When A Vehicle Can Be Repossessed
In the beginning, there’s a car loan. You miss a payment and figure that a delay of a few days won’t make a difference. With so many cars in California, it’s not uncommon to be late by at least a few days.
What you don’t know is that under California law, the lender can repossess your vehicle without any prior notice to you so long as you’re as little as one day late on payment.
In fact, the lender can repossess a car in California whenever there’s a default in the terms of the contract. That includes not only missing a payment but also an insurance lapse.
It’s a good idea to read the contract carefully so you can find the landmines.
Who Can Repossess A Vehicle
Under California law, the car finance company as well as a registered repossession agency can repossess your automobile.
In order to have authority to repossess the vehicle, the company must be licensed or registered with the California Department of Consumer Affairs, Bureau of Security and Investigative Services. You should always ask to see the license before surrendering your car to a repo agent, and verify that license with the California Bureau of Security and Investigative Services.
Place And Time Of Repossession (And The Shakedown)
A repossession agent in California can’t come into a private building such as a garage, nor can they enter a secured or locked area such as a gated driveway, without the permission of the owner of the premises.
Your car can, however, be repossessed from unsecured driveways, streets, parking lots, and other publicly accessible areas in California at any time of day or night.
You don’t need to be present when the vehicle is taken, so if you park on the street and go to sleep there’s a chance the car may be gone when you wake up.
If you happen to be present when the car’s being taken, you may be able to save the car by paying the balance due rather than losing your wheels. If that happens then you have the right to receive an itemized receipt, and the repossession agent is required to forward your payment to the car lenders.
Timeline After Repossession
Once the car is repossessed, the clock starts ticking.
California law gives the repossession agency 48 hours to give you a Notice of Seizure that provides you with the name and contact information of both the legal owner and the repossession agency.
You must also be given an Inventory of Personal Effects that includes a list of your personal property in the vehicle when it was taken, as well as information about how to recover your property and the amount of storage fees. The repossession agency must store your items for 60 days, after which all unclaimed property can be discarded.
One caveat about your personal property. Anything that’s been installed or affixed to the car such as that awesome audio system or custom rims – you’re not getting that back unless you negotiate with the lender directly.
Selling The Car After Repossession
Once the lender has taken the car back, they’ve got to take some action before they sell it.
Under California law, the lender needs to serve you (either personally or by certified or first-class mail) you at least 15 days’ written notice of intent to sell the vehicle.
This Notice of Intent to Sell must be served within 60 days of repossession, and gives you the right to ask that the lender delay the sale for 10 days.
Your Right To Get The Car Back
Not only do you have the right to get the car back and reinstate the loan when it’s repossessed, but California law gives you the opportunity to redeem the vehicle and reinstate your loan at any time prior to sale.
California Civil Code forces the lender to reinstate your loan if all past due amounts are paid, unless the legal owner can prove that you did one of the following:
- Provided false information on your loan application
- Hid the vehicle in order to avoid repossession
- Damaged, or threatened to damage, the vehicle in a way that reduces its value
- Committed, or threatened to commit, violence against anyone involved repossessing the vehicle
- Used the vehicle in the commission of a criminal offense
- Your right to reinstate your loan contract is limited to once every 12 months, and twice over the life of the contract.
What Happens After The Car Is Sold?
Theoretically, your lender could get more for the car at sale than you owe on the loan. I’ve never seen it happen, but anything’s possible.
If the sale of the vehicle results in a surplus, the surplus amount must be returned to you within 45 days of the sale.
If the sale does not net enough to fully satisfy your loan and other amounts due, you will be liable for the deficiency balance.
In order to collect the deficiency, however, the lender has to sue you for the balance due. They need to serve you with the Complaint, you get an opportunity to file an Answer, and you can fight it out in court.
Remember – Repossession Is Not The End
If you fall behind on your car payments, California law doesn’t leave you hanging.
You can cure the default and keep your car.
If you lose your car, you may not have to pay any deficiency.
And if you are sued for a deficiency, there are ways to defend the case.
So long as you’re proactive, things may not turn out so bad.
Image courtesy drbrain
Your Options for Dealing With Repossession Under California Law 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.
Filing for bankruptcy can be a responsible option for anyone looking to regain control of their financial obligations. Over 1,000,000 Americans sought bankruptcy protection in 2012 with many filing for legitimate reasons such as divorce, illness and job loss. The decision to file for many is a serious personal step that was a challenge to [...]
A new court opinion issued by the 8th Circuit Court of Appeals declares that alimony is part of the bankruptcy estate and can be liquidated by the Chapter 7 Trustee unless a specific state exemption protecting the alimony award exists. In re Mehlhaff, 2013 Bankr. LEXIS 944 (Bankr. D.S.D., Mar. 12, 2013).
Prior to filing bankruptcy in 2012, Laura Mehlhaff received an award of $200 per month alimony until her minor child reached age eighteen in 2014. The opinion does not state whether the alimony would terminate upon the death of Laura or her ex-husband or upon the remarriage of Laura, but most alimony awards terminate upon the occurrence of either event. However, it appears that South Dakota law provides that alimony is a property right and the Supreme Court of South Dakota in another case allowed a creditor to place a lien against an award of alimony.
if alimony is the kind of property right to which a lien can attach, it is the kind of property right that becomes property of the estate when a bankruptcy is filed. In re Mehlhaff.
The bad news is that Nebraska does not have a specific exemption law protecting alimony, and it appears that the 8th Circuit may have overruled a prior Nebraska bankruptcy opinion declaring that monthly alimony payments were not part of the bankruptcy estate. In re Loftus, Nebraska case number 97-82311. In that case Judge Mahoney ruled that:
A plain reading of the language of the divorce decree in question indicates that each month [the debtor] is entitled to the payments only if she is alive, her ex-husband is alive, and she is not remarried. . . .The Court finds that the alimony payments from [the debtor’s] ex-husband accrue each month.
In other words, since the alimony accrues each month, there is not a present right to receive the future payments and the alimony is not a property right.
The Nebraska Supreme Court has spoken on the issue of whether alimony is a property right. “This court on numerous occasions has held that alimony and allocation of property rights are distinguishable and have different purposes in marriage dissolution proceedings, but they are still closely related in the matter of determining the amount to be allowed.” McBride v. McBride, 211 Neb. 459 (Neb. 1982).
The question for Nebraska bankruptcy attorneys and Trustees is whether the 8th Circuit’s opinion in Mehlhaff overrules Judge Mahoney’s opinion in Loftus. What was once settled law in Nebraska is now no longer clear until a new opinion is issued or until the Nebraska legislature provides an alimony specific exemption law.
Until this issue is clarified, I would advise debtors holding significant alimony awards in Nebraska to avoid Chapter 7 and opt for the safer waters of Chapter 13.
Identity theft is an ever-growing issue in both Oregon and Washington, causing problmes with debt collectors and on credit reports. The criminals stealing your identity often open credit cards in your name and rack up massive charges, torching your credit score and barring your from making much needed future purchases . Bad credit scores can effect your ability to obtain insurance at a reasonable rate, oInsurance companies use lower credit scores to justify higher rates. You may even be denied employment or fired from your job because of false information in your credit history. And you could suffer serious harassment by debt collectors. Even after you discover the theft, corporate predators.
Signs of identity theft include the following
1. Mail or pre-approved credit offers with someone else’s name are arriving at your home or work
2. Unknown accounts are appearing on your credit report.
3. Companies that you have no relationship with have been looking at your credit report.
4. You are getting collection letters for accounts you do not have.
5. Your credit report includes a name or address for your that you have never used.
6. You are getting account information in the mail relating to accounts you didn’t open.
However, any of the above could have caused by error, so you Therefore, you won’t know if it identity theft is present until you get all the documents relating to the information that is wreaking havoc on your credit report.
The fact is that creditors routinely make errors regarding customer identity. Moreover, credit bureaus often get it wrong as well. Bureaus confuse consumers with each other, mix up credit information, and attribute credit history to consumers unrelated to an account.
Because your almost never really have definitive proof of identity theft, you should never sign an identity theft or fraud affidavit until you have actually seen the forged credit application. More importantly, you should never sign off on one of these affidavits without benefit of counsel.
If you are a victim of identity theft, you are entitled to several benefits under the revised Fair Credit Reporting Act. The FDCPA entitles you not only to copies of your credit report, but allows you to place a fraud block on your file. By placing a fraud block, you will be letting all potential creditors know that your identity has been stolen and warning them not to extend credit without absolute proof that they are actually dealing with you.
Sadly the damage done by identity theft can be so pervasive and time consuming that under certain circumstances(e.g. you are saddled with debt beyond the debt created by the identity theft) it might make more sense to simply seek relief under the bankruptcy code. More and more, we are filing Bankruptcy petitions in Washington and Oregon, not only to deal with real debts, but those created by identity theft.
If you have been a victim of identity theft and you want to get out of debt, contact our offices and set up an appointment at one of our Washington Bankruptcy and Consumer law in either Vancouver or Seattle, Washington or Portland or Salem, Oregon. We would be more than happy to help.
The original post is titled Dealing with Identity Theft in Washington or Oregon , and it came from Oregon Bankruptcy Lawyer | Portland, Salem, and Vancouver, Wa .
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