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Attorney’s fees are always a big issue for my clients, because money is tight and they are worried about how they can afford a bankruptcy attorney. It is important you to understand how attorneys’ fees work in chapter 7 bankruptcy.
I charge a flat fee for chapter 7 bankruptcy. This is because a flat fee is the easiest and fairest way to setup a client’s case. With a flat fee bankruptcy, the cost is predictable for the client and there aren’t any surprises. It also makes it easier to get the chapter 7 case filed, because a bankruptcy attorney can’t file a case when there are fees are due and owing. With an hourly rate, you run the risk of a big bill before the case is filed. With a flat fee, you know exactly how much is required to file the case and can plan accordingly.
So how much should you pay for a chapter 7 bankruptcy? Seattle Tacoma area you may see ads for bankruptcy attorneys that charge as little as $600 – $700 for a chapter 7 bankruptcy. That is the low end of the market, and you should be careful. You get what you pay for; and if you low rates, you should expect low quality. My chapter 7 flat fee is in the middle of the range. I charge from $1,200 to $1,500 for most chapter 7 cases, more if you are self-employed.
Why is my chapter 7 flat fee in the middle of the range? I believe in providing quality representation. Quality representation means taking the time to talk with my clients, return phone calls, exchange emails, and carefully analyze their case. It takes time. Additionally, I don’t have any hidden fees. I’m not going to quote you a lowball price, and then tell you that there are a bunch of extra fees. I don’t charge top of the market rates, because I believe in making bankruptcy accessible to my clients. That means I set my prices at a level where I can provide you the best representation money can buy, but the prices are still fair and affordable.
Are there every any extra costs on top of the flat fee? Rarely. Litigation is not included in the flat fee, because litigation is rare and the cost is hard to predict. The majority of my clients will not have any litigation in their cases. Typically, we can spot litigation before the case is filed and plan accordingly. Either we budget for it in the flat fee or we figure out how to avoid it. If you fill out the questionnaire completely and participate in the petition review process, then the risk of litigation is small and all you’ll pay is one simple flat fee for your chapter 7.
A Federal Trade Commission report released this month revealed that it received nearly 370,000 reports of identity theft in 2012, nearly 90,000 more than in 2011. Identity theft was the number one complaint reported to the Federal Trade Commission, with debt collection issues coming in at a distant second. This was the highest total ever reported by the agency.
Identity theft not only hurts victims regarding their immediate finances, but it also has the potential to ruin one’s credit rating. It seems there are endless ways identity thieves are stealing and using information. This is ever the more reason to be vigilant about your credit and prepared for what may, unfortunately, be the inevitable—having your identity stolen.
Controlling Damage from Identity Theft
Make sure you check your credit report and score regularly. Being vigilant about your credit can help you catch problems before they create more serious damage. Check to see if your insurance provider, bank, credit card provider, etc. provides an identity theft program to help protect you or minimize damage in case you become a victim. If you suspect there may be some problem with your credit report, consider placing a fraud alert on your credit reporting with the reporting agencies.
Handling Identity Theft
If you do find fraudulent activity, the first thing you need to do is alert any of your creditors that are involved. This will help contain the damage. Next, report the crime to the police. This cannot hurt you, and it very well may help you down the line. After contacting the police, contact the FTC. While the FTC does not resolve individual complaints, your report may help the FTC spot a pattern of violations requiring law enforcement action. Once you have reported the fraudulent activity to the above groups, go through your credit reports with a fine-toothed comb. You can retrieve them online from all three credit reporting agencies. Look for any suspicious personal information or any credit event that you do not recognize.
Do not forget to keep track of all of your actions. You want to be able to review the entire process, from when you discovered the issue until you hopefully find some resolution. A clear and accurate record of everything you do, who you talk to, what is said, and when it occurred will not only keep you on top of things, but it may be useful in any possible lawsuit in the future.
Your Credit Report Following Identity Theft
- Following identity theft, some of your rights include the right to:
- Block fraudulent information from your credit report,
- Dispute fraudulent or inaccurate information on your credit report,
- Stop creditors and debt collectors from reporting fraudulent accounts,
- Get copies of documents related to the theft of your identity, and
- Stop a debt collector from contacting you.
Ideally, your credit report will eventually reflect only accurate information. Unfortunately, that may not occur. Inaccurate information can not only cause you to be denied credit, refused insurance, and denied employment, but it can also lead to higher fees and interest rates for credit that you do receive. It is your right to have an accurate credit report and to be fairly evaluated based on that information. If you believe your rights have been infringed, contact an experienced attorney.
See Related Blog Posts:
Reports by the FTC and by 60 Minutes Spotlight Deficiencies in Credit Reporting
Report Says 1 in 5 Consumers Know Their Credit Score
The post Credit Rating Beware: Identity Theft at All-Time High appeared first on AKB.
When you have a security clearance, financial problems are even more stressful because you worry about your security clearance. For most people, bankruptcy seems like an obvious solution to financial trouble. If you have a security clearance, you worry about whether the bankruptcy will affect your security clearance. Here’ what you need to know about your security clearance and bankruptcy.
- Bankruptcy does not mean that you will automatically lose your security clearance.
- Financial problems are grounds for revocation or denial of a security clearance.
- Failing to take care of your financial problems, increases the risk that you will lose your security clearance.
- Bankruptcy is provided for in the United States Constitution and is established at federal law as a means for dealing with financial problems. However, you need to go into a bankruptcy with open eyes and all the facts.
No lawyer can guarantee an outcome. That is particularly true when it comes to security clearances, because the basis for revoking or denying a security clearance is discretionary and includes a review of your entire background. I won’t make a guarantee that your security clearance won’t be affected; however, I can give you the guidance to minimize the risk to your security clearance.
- Security clearance reviews are exercises in trust. Can the United States government trust you with its secrets? Make sure that you are absolutely truthful with your bankruptcy lawyer.
- The reviewing officer will see your financial problems on your credit report, whether its repossessions, lawsuits, missed payments, or foreclosure. Bankruptcy is a method of dealing with your financial problems. It is better to show the reviewing officer that you are handling your problems than it is to just act like the problems don’t exist of don’t need to be handled.
- The circumstances of your financial distress are critical. The reviewing officer is going to be a lot more understanding if you are filing bankruptcy because of the financial toll from multiple deployments, divorce, a spouse’s unemployment, or because you made some financial mistakes years ago that you just can’t get on top of without a bankruptcy.
- Debts from gambling or substance abuse are high risk, because problem gambling and substance abuse are by themselves grounds for denial or revocation of your security clearance.
If you are experiencing financial distress and you have a security clearance, then you need to take action to address your financial problems. I offer a free confidential consultation, where you can openly discuss your financial situation, and I can offer possible solutions.
Legislation introduced in Congress,The Fair Access to Credit Scores Act of 2013, proposes to amend the Fair Credit Reporting Act. The bill calls for the inclusion of credit scores with the free credit report available to consumers every year. The two members of Congress who introduced the bill, Rep. Steve Cohen, D-Tenn.; and Sen. Bernie Sanders, I-VT, cited concerns about consumers paying credit agencies for inaccurate credit scores and for credit monitoring services that consumers are lured into by false promises of “free” reports.
Free Credit Score with Your Report
By federal law, consumers are allowed a free copy of their credit score after being refused credit, receiving higher interest rates on loans, or being given unfavorable terms on credit cards. Additionally, all consumers, regardless of such circumstances, have access to a free credit report each year. The Cohen/Sanders bill would expand upon these rights. The proposed bill mandates that consumers receive not only a free credit report, but also a free, reliable, accurate credit score every year.
Errors on Your Credit Report
As we have previously explained, material errors in credit reports are far from rare, with tens of millions of consumers paying for those errors. To make things worse, reports estimate that between only one-fifth to one-half of Americans know their credit score. That means there are a lot of people out there who are suffering from their credit score without even knowing what it is. Get your credit report, get your credit score, and if you have a mistake on your credit report, do not ignore it—your credit score will thank you.
Effects of Credit Report Mistakes
Employers run credit checks on applicants all the time. According to one survey, one in seven job applicants with poor credit were informed they were not hired because of their credit. (Keep in mind that employers may not necessarily admit to all applicants that they were not hired because of poor credit, even though, by law, they are required to do so.) Many find themselves in a cycle of poor credit, financial struggle, and unemployment. Do not fall into that cycle because of credit reporting mistakes.
Of course, poor credit can also negatively impact interest rates on car loans, student loans, and mortgages. It can prevent you from signing a rental agreement, securing insurance, or getting a decent credit card rate. Anything credit-related can suffer from a poor credit score, and your credit score is based on your credit report. So, a healthy credit report leads to a higher credit score, and a higher credit score generally leads to lower interest rates. Basically, the higher your credit score, the less you pay for loans. It is obvious why you want to ensure that your credit report is accurate.
Protect Your Credit Score
If The Fair Access to Credit Scores Act of 2013 is successful, you will be better equipped to protect your credit score. You will not have to pay to see your credit score or wait until you are negatively impacted by it. You will, like your credit report, be able to view your credit score for free once a year.
This means you can better understand what affect the information on your credit report has on your credit score, because you will see it rise or fall as your credit report changes over time. While understanding the changes will not be that simple, a drastic plummet of your score will surely tip you off to serious mistakes or even identity theft. Stay on top of your credit report, dispute any errors, and if need be, contact an attorney for help.
See Related Blog Posts:
Reports by the FTC and by 60 Minutes Spotlight Deficiencies in Credit Reporting
Report Says 1 in 5 Consumers Know Their Credit Score
The post Free Access to Your Credit Score with Your Credit Report? appeared first on AKB.
This is the time of year when families across both Oregon and Washington are eagerly awaiting tax refunds. It is also a time when many of these same families are considering seeking the protection of the Bankruptcy Court. Unfortunately these goals, keeping the refund and getting bankruptcy protection, are often at odds in the state of Oregon.
First the good news. If any part of your refund is going to be Earned Income Credit, the portion that is EIC is completely protected; you keep it all. Also keep in mind that just because you currently live in Oregon doesn’t mean the Oregon exemptions apply. If you have lived here for less than two years, the Oregon exemptions most likely do not apply and, depending on the largess of your former home state, your refund may be protected in full. If, however, the Oregon exemptions do apply and you are expecting non-EIC refund money, some words of warning are in order.
Lets use the 2012 potential refund as an example. First, the trustee does not care that you really need the money. Second, the fact that you have not yet filed is not going to help. The Trustee is patient and will track on the fact that you are not filing until September. Ultimately, the best way for you to protect the 2012 refund is to file your return, get the refund and spend it in a reasonable and fully documented manner prior to filing bankruptcy. For example, pay off your attorney and filing fees prior to filing. You will obviously need to talk to your attorney about strategies regarding the way you spend down the refund before heading down that path. Additionally, if you want to save your EIC and spend down unprotected part of your refund, talk to your attorney about strategies for isolating the protected funds so that no portion of them can later be claimed by the trustee.
Beyond the issue of retaining your 2012 refund in bankruptcy, do keep in mind that the longer you wait in 2013 to file your bankruptcy, the larger the proportional share of your 2013 potential refund will be put at risk. Currently nearly twenty-five percent of 2013 has already gone by so count on losing twenty-five percent of your next refund and the percentages get worse with every month that goes by. Talk to your attorney about strategies for reducing your withholding before you file so that you don’t unnecessarily create asset an asset for the trustee to take away.
Finally, if you absolutely must file prior to getting your hands on your refund(you are getting garnished, property is in foreclosure, etc.) consider Chapter 13 Bankruptcy. Under certain circumstances, a Chapter 13 bankruptcy filer can often keep in upwards of $3000 of an upcoming refund without having to surrender it to the Chapter 13 Bankruptcy attorney. While the ability to retain a large part of a refund is rarely reason in and of itself to file Chapter 13, the advantage of doing so when coupled with other factors can argue for a Chapter 13 filing rather than Chapter 7.
Call the Northwest Debt Relief Law Firm today to go over strategies for filing bankruptcy and keeping your refund.
The original post is titled Oregon Bankruptcy and Keeping Tax Refunds , and it came from Oregon Bankruptcy Lawyer | Portland, Salem, and Vancouver, Wa .
Can you reinstate the automatic stay? No, but you can get the same protection through injunctive relief. Some background will help make this clearer.
The automatic stay goes into effect when a bankruptcy is filed, and it prevents all actions to collect on a pre-petition debt. There are only a few exceptions to the automatic stay, for example it doesn’t stop a criminal prosecution. For the average client, the automatic stay puts a full stop to all creditor harassment.
If you have filed bankruptcy in the last year, then you will lose the automatic stay after 30 days if your bankruptcy attorney doesn’t take steps to keep the automatic stay in place. If you have filed multiple bankruptcies in the last year, then the automatic stay may not go into effect at all. However all is not lost.
First, you may not need the automatic stay reinstated. If you are in a chapter 13, then your creditors will be bound to the plan; and, the plan will prevent your creditors from harassing you. If you are in a chapter 7, the discharge will enter roughly 90 days after you file, and the discharge injunction will stop creditors from harassing you. In these cases, you probably do not need to worry about having the automatic stay reinstated.
Second, even though the court cannot reinstate the automatic stay, the bankruptcy judge can give you the same kind of relief that you would get from reinstating the automatic stay. This is because the bankruptcy court has the authority to enter an injunction that is the functional equivalent of the automatic stay. The only difference is that an injunction has to be targeted at a specific creditor or creditors and cannot simply be a blanket injunction. This isn’t a problem, because most of my clients have a whole bunch of creditors; but only one or two that are actively harassing them.
If you have had a bankruptcy dismissed without a discharge and need to file again, you need to make sure that you and your bankruptcy attorney work out a plan for dealing with the automatic stay. If you need to get the automatic stay, make sure that you attorney understands that they have the ability to seek a specific injunction against a creditor. A specific injunction is not the same thing as reinstating the automatic stay, but it has the same protective function.
Today a prospective client asked me whether or not her filing bankruptcy would negatively affect her spouse. This is a common question. A spouse's bankruptcy will not affect the non-filing spouse in terms of credit. It will not have an adverse effect on the non-filing spouse's credit. However, there is a possibility that assets that were once only his or hers, could now be considered as joint assets, so possibly there could be an effect as to assets. Also, there are income limitations in bankruptcy, so the non-filing spouse's income does have be counted and accounted for in the spouse's bankruptcy. Adam Brown is a bankruptcy attorney for Dexter & Dexter, a debt relief agency helping people file for bankruptcy.
The Chapter 13 Discharge
The bankruptcy law regarding the scope of the chapter 13 discharge is complex and has recently undergone major changes. Therefore, debtors should consult competent legal counsel prior to filing regarding the scope of the chapter 13 discharge.
A chapter 13 debtor is entitled to a discharge upon completion of all payments under the chapter 13 plan so long as the debtor: (1) certifies (if applicable) that all domestic support obligations that came due prior to making such certification have been paid; (2) has not received a discharge in a prior case filed within a certain time frame (two years for prior chapter 13 cases and four years for prior chapter 7, 11 and 12 cases); and (3) has completed an approved course in financial management (if the U.S. trustee or bankruptcy administrator for the debtor's district has determined that such courses are available to the debtor).
The discharge releases the debtor from all debts provided for by the plan or disallowed (under section 502), with limited exceptions. Creditors provided for in full or in part under the chapter 13 plan may no longer initiate or continue any legal or other action against the debtor to collect the discharged obligations.
As a general rule, the discharge releases the debtor from all debts provided for by the plan or disallowed, with the exception of certain debts referenced in 11 U.S.C. § 1328. Debts not discharged in chapter 13 include certain long term obligations (such as a home mortgage), debts for alimony or child support, certain taxes, debts for most government funded or guaranteed educational loans or benefit overpayments, debts arising from death or personal injury caused by driving while intoxicated or under the influence of drugs, and debts for restitution or a criminal fine included in a sentence on the debtor's conviction of a crime. To the extent that they are not fully paid under the chapter 13 plan, the debtor will still be responsible for these debts after the bankruptcy case has concluded. Debts for money or property obtained by false pretenses, debts for fraud or defalcation while acting in a fiduciary capacity, and debts for restitution or damages awarded in a civil case for willful or malicious actions by the debtor that cause personal injury or death to a person will be discharged unless a creditor timely files and prevails in an action to have such debts declared nondischargeable. .
The discharge in a chapter 13 case is somewhat broader than in a chapter 7 case. Debts dischargeable in a chapter 13, but not in chapter 7, include debts for willful and malicious injury to property (as opposed to a person), debts incurred to pay nondischargeable tax obligations, and debts arising from property settlements in divorce or separation proceedings.Jordan E. Bublick, Miami and Palm Beach, Florida, Attorney at Law, Practice Limited to Bankruptcy Law, Member of the Florida Bar since 1983
Making the Chapter 13 Plan Work
The provisions of a confirmed plan bind the debtor and each creditor. Once the court confirms the plan, the debtor must make the plan succeed. The debtor must make regular payments to the trustee either directly or through payroll deduction, which will require adjustment to living on a fixed budget for a prolonged period. Furthermore, while confirmation of the plan entitles the debtor to retain property as long as payments are made, the debtor may not incur new debt without consulting the trustee, because additional debt may compromise the debtor's ability to complete the plan. .
A debtor may make plan payments through payroll deductions. This practice increases the likelihood that payments will be made on time and that the debtor will complete the plan. In any event, if the debtor fails to make the payments due under the confirmed plan, the court may dismiss the case or convert it to a liquidation case under chapter 7 of the Bankruptcy Code. The court may also dismiss or convert the debtor's case if the debtor fails to pay any post-filing domestic support obligations (i.e., child support, alimony), or fails to make required tax filings during the case.
Jordan E. Bublick, Miami and Palm Beach, Florida, Attorney at Law, Practice Limited to Bankruptcy Law, Member of the Florida Bar since 1983
The Chapter 13 Plan and Confirmation Hearing
Unless the court grants an extension, the debtor must file a repayment plan with the petition or within 14 days after the petition is filed. A plan must be submitted for court approval and must provide for payments of fixed amounts to the trustee on a regular basis, typically monthly. The trustee then distributes the funds to creditors according to the terms of the plan, which may offer creditors less than full payment on their claims.
Types of Claims. There are three types of claims: priority, secured, and unsecured. Priority claims are those granted special status by the bankruptcy law, such as most taxes and the costs of bankruptcy proceeding. (3) Secured claims are those for which the creditor has the right take back certain property (i.e., the collateral) if the debtor does not pay the underlying debt. In contrast to secured claims, unsecured claims are generally those for which the creditor has no special rights to collect against particular property owned by the debtor.
The plan must pay priority claims in full unless a particular priority creditor agrees to different treatment of the claim or, in the case of a domestic support obligation, unless the debtor contributes all "disposable income" - discussed below - to a five-year plan.
If the debtor wants to keep the collateral securing a particular claim, the plan must provide that the holder of the secured claim receive at least the value of the collateral. If the obligation underlying the secured claim was used to buy the collateral (e.g., a car loan), and the debt was incurred within certain time frames before the bankruptcy filing, the plan must provide for full payment of the debt, not just the value of the collateral (which may be less due to depreciation). Payments to certain secured creditors (i.e., the home mortgage lender), may be made over the original loan repayment schedule (which may be longer than the plan) so long as any arrearage is made up during the plan.
The plan need not pay unsecured claims in full as long it provides that the debtor will pay all projected "disposable income" over an "applicable commitment period," and as long as unsecured creditors receive at least as much under the plan as they would receive if the debtor's assets were liquidated under chapter 7. In chapter 13, "disposable income" is income (other than child support payments received by the debtor) less amounts reasonably necessary for the maintenance or support of the debtor or dependents and less charitable contributions up to 15% of the debtor's gross income. If the debtor operates a business, the definition of disposable income excludes those amounts which are necessary for ordinary operating expenses. The "applicable commitment period" depends on the debtor's current monthly income. The applicable commitment period must be three years if current monthly income is less than the state median for a family of the same size - and five years if the current monthly income is greater than a family of the same size. The plan may be less than the applicable commitment period (three or five years) only if unsecured debt is paid in full over a shorter period.
Payments. Within 30 days after filing the bankruptcy case, even if the plan has not yet been approved by the court, the debtor must start making plan payments to the trustee. . If any secured loan payments or lease payments come due before the debtor's plan is confirmed (typically home and automobile payments), the debtor must make adequate protection payments directly to the secured lender or lessor - deducting the amount paid from the amount that would otherwise be paid to the trustee.
Confirimation Hearing. No later than 45 days after the meeting of creditors, the bankruptcy judge must hold a confirmation hearing and decide whether the plan is feasible and meets the standards for confirmation set forth in the Bankruptcy Code. Creditors will receive 28 days' notice of the hearing and may object to confirmation. While a variety of objections may be made, the most frequent ones are that payments offered under the plan are less than creditors would receive if the debtor's assets were liquidated or that the debtor's plan does not commit all of the debtor's projected disposable income for the three or five year applicable commitment period.
If the court confirms the plan, the chapter 13 trustee will distribute funds received under the plan "as soon as is practicable." If the court declines to confirm the plan, the debtor may file a modified plan. The debtor may also convert the case to a liquidation case under chapter 7. If the court declines to confirm the plan or the modified plan and instead dismisses the case, the court may authorize the trustee to keep some funds for costs, but the trustee must return all remaining funds to the debtor (other than funds already disbursed or due to creditors).
Plan Modification. Occasionally, a change in circumstances may compromise the debtor's ability to make plan payments. For example, a creditor may object or threaten to object to a plan, or the debtor may inadvertently have failed to list all creditors. In such instances, the plan may be modified either before or after confirmation. Modification after confirmation is not limited to an initiative by the debtor, but may be at the request of the trustee or an unsecured creditor.Jordan E. Bublick, Miami and Palm Beach, Florida, Attorney at Law, Practice Limited to Bankruptcy Law, Member of the Florida Bar since 1983
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