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Money Management International Moves to Sugar Land Texas

Money Management International (MMI) has decided to move its headquarters to Sugar Land, Texas. MMI is the largest non-profit, consumer credit counseling companies in the United States. This is a legitimate company, not like the so-called “debt settlement” companies that you see on late-night TV or on the internet. MMI’s web site is at http://www.moneymanagement.org.

MMI provides financial guidance and counseling, and if you qualify can put you on a debt management plan (DMP) to repay your debts over time. DMP’s don’t generally reduce your debt; they are “consolidation” plans, where you make one payment a month to MMI, and MMI pays your creditors for you.

For the people that can afford these DMP plans, they are fine. It can help you avoid bankruptcy. Many of my clients have consulted with credit counselors before they come see me, and legitimate ones like MMI will just tell them whether or not they can help them, or if they should consult an attorney about their debt problems, and possibly consider filing bankruptcy.

Most if not all of the “shady” debt settlement companies, are not even legally operating in Texas. To operate legally, they have to be registered with the Texas Consumer Credit Commissioner, and comply with the Texas Debtor Assistance Law, which almost none of them do.

To see if your debt settlement company complies, go to http://www.occc.state.tx.us/pages/searches.htm and click on “List of Debt Management Service Providers. If your company is not on that list, they are not operating legally in the State of Texas.

I just had a couple come in to the office this morning, that had paid a debt settlement company $9000 in fees, and the company had only settled one debt for them. Then they were sued for $19,000 by a creditor, and the debt settlement company told them they needed to file bankruptcy.

So the debt settlement company basically did them no good at all. We will likely put them into a Chapter 13 bankruptcy, paying $450 per month for 5 years. That will repay 30% of their $75,000 in unsecured debt, with the rest being discharged or cancelled. And no one can sue them or call them at work trying to collect, once they file Chapter 13.

If you are interested in consulting with me about your options, including filing a bankruptcy case, and you live in the Houston Texas area or surrounding counties, give my office a call at 713-772-8037 and make an appointment to meet with me. Or you can make an appointment on my website at http://www.jthomasblack.com. There is no charge for your first visit.

Anyway, welcome to Sugar Land, MMI. I’m sure you will be a good neighbor!

Posted in Bankruptcy, Debt Settlement, Lawsuits and Judgments, Save Money. Tagged with , , , , .

By Thomas Black
June 24, 2010

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Lenders Beginning to Pursue Foreclosure Deficiencies

The Washington Post reported today in a copyrighted story that lenders on a national level are beginning to pursue people for the money that is owed after a foreclosure occurs.

In my experience, that is not real common here in Texas, but it wouldn’t surprise me if it begins to increase. Particularly where there are second mortgages, or so-called “80-20″ financing.

Like you don’t have enough to worry about, if you are losing your house, to have the lender or a collection agency coming after you trying to collect. They could file a lawsuit against you for the rest of the money, the money that they did not recover from the foreclosure process. If they got a judgment, they could seize your non-exempt assets such as bank accounts, investments or possibly other property.

But one cause of the lenders beginning to pursue people, is the “strategic” foreclosures, where people are letting their houses go back, even though they could afford them if they want to do so.

Not so much here in Houston, but in other areas of the country, home prices have fallen precipitously in the past few years. And if you owe $50,000 or $100,000 more on your house than it is worth, it is understandable that some people would choose to just “walk away” from the house, rather than struggle to continue to pay it.

Particularly so if they have an adjustable rate mortgage or ARM, and their payments are high. That would be another reason for some people to just give up and walk away.

If you are considering walking away from your home, and letting the bank or mortgage company have it, you should consult with an attorney experienced in these matter such as myself. It could be that your lender will try to pursue you for the debt.

If so, filing bankruptcy is one option to eliminate any chance that they can collect a foreclosure deficiency from you. There may be other options in your situation. To call my office for an appointment, call 713-772-8037. Free first visits are available for residents of the Houston Texas metropolitan area and surrounding counties.

Posted in Bankruptcy, Foreclosure, Lawsuits and Judgments. Tagged with , .

By Thomas Black
June 16, 2010

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Govt. Agency Blasts Debt Settlement Companies

The Washington Post reported yesterday that a government investigation into the debt-settlement industry has found that many debt settlement firms misled consumers by claiming to be affiliated with federal stimulus programs and exaggerating their ability to reduce consumers’ loans .

The report by the GAO, the Government Accountability Office, was presented yesterday at a Senate Commerce Committee hearing, and it included recordings of salesmen describing their companies as “government approved” and linking settlements to the federal bailout of troubled banks.

Debt settlement companies charge a LOT of money, and they are heavily regulated in Texas.

In fact, it’s common for these services to not even be operating legally in Texas. In Texas, debt management or debt “pooling” services are regulated by the Texas Debtor Assistance Law, which is Chapter 394 of the Texas Finance Code. The Texas Finance Code is at http://www.statutes.legis.state.tx.us/Docs/FI/htm/FI.394.htm (See Chapter 394).
These services must be registered with the Texas Consumer Credit Commissioner in order to be operating legally. A list of those services that are registered is on the web site of the Texas Consumer Credit Commissioner at http://www.occc.state.tx.us/pages/searches.html. Click on “List of Debt Management Services Providers” to see if your service is listed.
If you are a Texas resident, and your debt management service is not listed on that page, or if they have violated other provisions of the act, you may have a right to recover from them: (1) all the money you’ve paid them; (2) any actual damages you’ve suffered as well as punitive damages; (3) attorney fees for enforcing your rights; and (4) injunctive relief (a court order stopping them from continuing to operate illegally).
Frankly, there is no real secret to settling your debts, if you have the money to do so (which many people that try to settle their debts, don’t). Debt settlement is one option that I discuss with my clients when they come in for a bankruptcy consultation with me, and sometimes it can be a viable option, usually if they have only one or two major creditors.
If you are having problems with debts, and live in the Houston Texas metropolitan area, call my office at 713-772-8037 for an appointment to meet with me. For more information, visit my web site at http://www.jthomasblack.com .

Posted in Bankruptcy, Debt Settlement. Tagged with , , .

By Thomas Black
April 24, 2010

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Will I Lose Everything If I File Bankruptcy?

A Rocky Mountain Trail Near Tucson, AZ

If you are a Texas resident, and file Chapter 7 bankruptcy, usually most or all of your property can be claimed as “exempt” or safe from your creditors, which are represented by your Chapter 7 Trustee.

Texas was settled by folks with debt troubles. Many of them came from Tennessee or other states, just one step ahead of their creditors. Some wrote “GTT” for “Gone To Texas” in chalk on their cabin doors, so their creditors would know not to bother to pursue them. So our laws are written so that most or all of what most people own, can be claimed as exempt.

For example, your Texas homestead can consist of 10 acres of land plus all improvements, if in an urban area. In a rural area, you can exempt up to 100 acres of land plus all improvements, or 200 acres if a family. You can claim as exempt up to $30,000 of personal property if single, $60,000 if a family. The property must be certain listed property in the law, but it consists of most everything that most people own, including furniture and household goods, clothes, vehicles (just the “equity” or value over any loans counts towards the exemption), even two guns.

Also, a Texans’ retirement plans, IRA’s, whole life insurance and annuities can be claimed as exempt. Frankly, you can exempt a lot of property in Texas. So much so that some people move to Texas to take advantage of our exemptions. This is limited somewhat now by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), which provides among many other things, that to use a state’s exemptions, you must live in that state for 2 years, and to exempt more than $136,000 in home equity, you must have owned the property for more than 1215 days (about 3 yrs and 4 months).

But to keep property, you must pay any valid liens on the property. If you have a mortgage on your house or a loan on your car, you must continue to pay those loans or the lienholder can eventually get permission to repossess or foreclose, after getting permission from the Bankruptcy Judge, or after the bankruptcy is over. You may also need to sign a “Reaffirmation Agreement” to keep such secured items.

If you are considering filing bankruptcy, hire a good lawyer. Hire a lawyer that is experienced in these cases. I have been practicing consumer bankruptcy law in Houston Texas since 1982. I am Board Certified in Consumer Bankruptcy Law by the Texas Board of Legal Specialization. You can look me up at www.tbls.org. To make an appointment, please call my office at 713-772-8037, or make an appointment at my web site at www.jthomasblack.com by clicking on the red button on the upper right-hand side of any page.

Posted in Bankruptcy, Exempt Property. Tagged with , .

By Thomas Black
February 15, 2010

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Does Someone Come In My House If I File Bankruptcy?

It's Rough Country Outside of Tucson, Arizona- But Beautiful

It's Rough Country Outside of Tucson, Arizona- But Beautiful

I hear this one quite a bit, people are afraid that a bankruptcy  Trustee or someone from the Court will come in their house, and take their TV or their furniture or their microwave. I’ve never had it happen yet here in Texas, and I’ve filed about 8,000 cases.

In Texas, it’s possible to claim as “exempt” or safe from creditors, up to $30,000 worth of personal property if you are single, or $60,000 if you are a couple. “Personal property” is everything that you own that is not land or real estate like a house. So it includes cars and trucks, but it only refers to the equity in your property.

So if you own a pickup truck or SUV, and it’s worth $15,000, but you owe $16,000, there is no equity in it at all that counts toward the $30,000/$60,000 exemption limits.

Very few people that come in to meet with me have any non-exempt personal property. And that makes sense; if you are having money problems, you will usually have already spent down your savings and investments, and sold your truly valuable items to raise more cash to pay down debts.

So generally, if you have lived in Texas for at least two years so that you can claim the exemptions that are available under Texas law, you don’t have to worry about a bankruptcy Trustee coming into your house.

Now I understand it is different in other state. I read once that in Florida, it is common for Trustees to go to people’s houses and take an inventory or inspect the property, and that is because (at least at that time) Florida’s exemptions were very low, like $1000. If you filed bankruptcy, all you could keep was $1000 worth of stuff.

You either had to let the Trustee take all the rest of your personal property like furniture and appliances, or you had to “buy back” your items from the Trustee. That just doesn’t seem right; you’re broke, and you are expected to live in an empty house or apartment? If the Florida exemptions are still that low, they ought to change them.

Posted in Bankruptcy, Exempt Property. Tagged with , .

By Thomas Black
November 21, 2009

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Should You Accept the Settlement of the Terri White Class Action?

For quite a while, when someone filed bankruptcy, credit bureaus took no action to update or correct the person’s credit file. Unless the bankruptcy person (the Debtor) asked for a reinvestigation or their file, by disputing the incorrect entries, oftentimes the individual “tradelines” or records of different accounts such as Citibank, Bank of America, Chase, etc. would still show that there was money owed, and if the Debtor was delinquent when he or she filed bankruptcy, it would show that they were delinquent.

The problem with that was, that unless the Debtor requested a reinvestigation, when they applied for credit years later, it still looked like they owed money to all these places. In fact, it looked like they had incurred new debt after the bankruptcy, and then not paid it, which I understand is even worse on your credit.

My firm has been doing a complimentary “credit clean-up” for clients for several years now, and it has worked rather well. We help our clients order a reinvestigation of credit from all the major credit bureaus, when each client receives a bankruptcy discharge. It requests that all the discharged debts show as a zero balance and that they were discharged in bankruptcy. I’m told it increases clients’ credit scores by anywhere from 25-150 points.

Anyway, for most people that go through bankruptcy, whose lawyer does not do a “credit clean-up” for them, having the old trade-lines still show up can be a major problem. It can keep them from getting credit, car loans, mortgages, all kinds of things.

Finally, someone brought a class action, and Terri White is one of the named plaintiffs.  The credit bureaus have agreed to fix your credit after bankruptcy now, apparently without being asked, and pay some money damages to certain consumers.

Who is covered? If you received a Chapter 7 discharge and your credit report was issued by one of the Defendants between March 15, 2002 and May 11, 2009 (or, for California residents in the case of TransUnion, between May 12, 2001 and May 11, 2009), and the credit report reported debts that were due and owing which were discharged in the bankruptcy.

If this is you, you may be due certain payments, from $20 to $750, depending upon if you can prove that you were denied a job, a mortgage, or other credit by reason of the erroneous credit report(s).

Should you take it? It’s a decision for you and your lawyer, if you have one. Of the $45 Million settlement, the lawyers for the class get $10 Million. Consumers split the remaining $35 Million.

For the official website that describes the settlement in detail, and provides a claim form, go to http://www.bankruptcydischargesettlement.com/.

For a web site that argues against the settlement, and suggests that you may want to object to it, go to http://stopthebankruptcydischargesettlement.com/.

Good luck!

Posted in Bankruptcy, Credit, Save Money. Tagged with , .

By Thomas Black
October 26, 2009

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Crime Victim Fund Tops $1 Billion

I have had bankruptcy clients in Texas that were put into bankruptcy by having been a victim of a violent crime. One young fellow in particular was beaten within an inch of his life, such that his brain was injured, and it was difficult if not impossible for him to hold a job, at least the responsible job that he had had previously.

If you have been a victim of violent crime in Texas, you may be entitled to a cash award from the Texas Crime Victim’s Compensation Fund. And it is flush! The total amount that it has for victimized Texans is now $1,000,000,000! That’s billion with a “B.”

You can be eligible for up to $50,000 if you are a violent crime victim in Texas, and another $75,000 if you are totally and permanently disabled.

An excerpt from the Texas Attorney General’s website reads as follows:

The Crime Victims’Compensation Program is administered by the Office of the Attorney General and is dedicated to ensuring that victims of violent crime are provided financial assistance for crime-related expenses that cannot be reimbursed by insurance or other sources.

State law requires that reimbursement first be sought from other sources, such as health insurance, Medicaid, Medicare, auto insurance, or Texas Workers Compensation. CVC program staff assists applicants in coordinating the use of all available resources.

Claims may be approved for benefits up to a total of $50,000. Individuals who suffer total and permanent disability as a result of the crime may qualify for an additional $75,000, which may be used for specific and limited expenses, such as lost wages, prosthetics, rehabilitation or making a home accessible, depending upon the law in effect on the crime date.

The financial assistance may be limited or unavailable depending on laws in effect when the crime occurred and is dependent upon the applicant providing necessary and required documentation.

For More Information

In your community, contact your local law enforcement agency’s Crime Victim Liaison or your prosecutor’s Victim Assistance Coordinator.

Or e-mail:crimevictims@oag.state.tx.us or Call (800) 983-9933 or (512) 936-1200 (in Austin) or Fax: (512) 320-8270.

Posted in Medical bills, Save Money. Tagged with , .

By Thomas Black
September 26, 2009

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Another Debt Settlement Company in Trouble – “Debt Relief Group” Sued In Class Action

The Sandia Mountains, Albuquerque, New Mexico

The Sandia Mountains, Albuquerque, New Mexico

There is a class action lawsuit pending in the U.S. District Court for the Western District of San Antonio against Debt Relief Group, LLC, and some alleged associates or associated entities including The Palmer Firm, PC, The Seideman Law Firm, PC, Epic Financial Management, Robert Ancel Palmer, III, Scott R. Seideman, Gregory M. Fitzgerald and Keith J. Waring (CIVIL ACTION SA09CA0637).

The gist of the allegations is that the Defendants operate a “debt settlement company” in violation of the Texas Finance Code, Chapter 394, Consumer Debt Management Services.

The suit says: the Defendants operate an elaborate nationwide scheme promoted by television and internet advertising to defraud debtors that are drowning in credit card and unsecured debt. By masquerading as attorney referral services, unregulated debt negotiators and exempt attorneys, the Defendants collaborate to evade strict state consumer protection regulations enacted to protect unknowing debtors.”

Folks, like I tell the prospective clients that come and consult with me, most if not all of these debt settlement companies are operating illegally in the State of Texas. And if they are operating illegally FROM THE GET GO, it’s not going to be a stretch for them to take your money and leave town, or file bankruptcy, both of which have happened.

In either event, you are likely out of luck. The law regulating these companies has strict requirements, including putting up a bond, being a non-profit organization, making detailed disclosures to consumers, and many others, which the shady ones are not going to comply with. The Texas law that regulates debt settlement companies is at: http://tlo2.tlc.state.tx.us/statutes/fi.toc.htm (see Chapter 394).

The law also requires that these companies register with the Texas Consumer Credit Commissioner, and the list of the few that are approved is at: http://www.occc.state.tx.us/pages/searches.html (see “List of Debt Management Service Providers). If you live in Texas, all of the others that you see advertising to you on TV and so forth are operating outside the law, if they are not on this list.

If you are in serious credit card debt, or other types of debt, come see an expert bankruptcy attorney such as myself. I discuss bankruptcy but I also discuss all of your options with you, as they relate to your particular circumstances.

One option that I talk to all my clients about is settling with your creditors, but it is only one option out of five options, and frankly, it has some bad points to it, which I will discuss with you if you come in to see me.

I offer a free consultation to consumers with debt problems that live in the Houston, Texas area or surrounding counties. To make an appointment, please call my office during working hours at 713-772-8037. Or you can make an appointment 24 hours a day at my main web site, http://www.jthomasblack.com. Just click on the red button on the upper right-hand side of any page.

Posted in Debt Settlement, Lawsuits and Judgments. Tagged with , .

By Thomas Black
August 26, 2009

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Older Folks in Debt – And Not Able To Pay

20090817 Photos 019In recent years a growing number of my bankruptcy clients have been older folks. Some a LOT older, say in their 70′s and even a few in their 80′s and 90′s. It just struck me this morning, as I was reading an AP article in the Houston Chronicle entitled “Retirees Find Taming Debt A Tall Order.” http://www.chron.com/disp/story.mpl/business/6584139.html

The article explains that even though it is not a must to be out of debt at retirement, it is an excellent idea. I have had a number of older folks come in recently that have a lot of equity in their home, but no money to pay the mortgage.

While I’m not usually a fan of “reverse mortgages,” that is one option if you are over 62, have a lot of home equity and either can’t pay the mortgage anymore, or just need the money, and don’t want to move.

I’m shocked by the number of people that come in that are in their 60′s and have just taken out a mortgage. And they are about to retire, or they’ve already retired. What are they thinking? In some cases, the folks had sizable retirement plans until the recent stock collapse changed their plans.

I think home ownership is overrated, particularly if you are older. Who needs the headache of lawn care, pest control, things breaking, having to clean a larger place, etc. I’m for renting after you reach a certain age, and not worrying about things. You can’t take it with you!

But a lot of the debt older folks get into is credit card debt. Some borrow it to help their children. Some use it for necessary medical bills or prescriptions. Others were working, but lost their jobs and have been using the credit cards to live on, until they find that new job.

Unfortunately, for some older folks, there may not be a new job, at least one like they had. And they’ll be lucky to get health insurance. They way the health care system is now, older workers just cost too much to insure.

My advice to older folks that find themselves in debt over their head: if there is no other reasonable option, go ahead and file bankruptcy.

Posted in Bankruptcy, Credit Cards, Foreclosure, Medical bills.

By Thomas Black
August 24, 2009

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Credit Cards Behind, But May Not Need Bankruptcy?

Flowers at Moody Gardens, Galveston Texas

Flowers at Moody Gardens, Galveston Texas

If your credit card debts are delinquent, backed up or behind, or about to get that way, and you think you may be able to pull things out WITHOUT filing bankruptcy, some of the major credit card banks just set up a website that may help you.

The new website is http://www.helpwithmycredit.org/index.php, and it appears to be a useful start at helping people who have credit card trouble. Of course in my opinion, the banks should have done this a long time ago, before the credit card delinquency rate was 10% like it is now, but I applaud them for doing it, anyway.

If you would, check it out and post a comment to tell me what you think of it, and whether it helped you or not.

Posted in Credit, Credit Cards. Tagged with , , .

By Thomas Black
August 19, 2009

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