Tools of Trade for Bankruptcy Lawyer - Bankruptcy Lawbooks

It’s ironic isn’t it, that some of these debt settlement companies, that claim that they can keep you out of bankruptcy, end up filing for bankruptcy themselves? According to the Texas Attorney Generals’ office, the Office of the Attorney General filed a lawsuit against the now bankrupt Debt Relief USA, a Dallas-area debt settlement company, on August 29, 2009.

Debt Relief USA has been out of business since 2009. A settlement has been proposed to the bankruptcy court that will refund over $4 million to consumers who had a balance in their savings account with Debt Relief USA. But most consumers will still lose money on the dea. For information about the refund process, refer to the Frequently Asked Questions section of the Attorney General’s website. The nationwide toll-free number to call is (800) 806-2092.

Folks, beware of signing up with these debt settlement or debt negotiation companies. First of all, many of them are operating illegally in the State of Texas. That’s a bad sign! If they don’t care if they are operating illegally, they won’t care whether or not they steal your money. Or overcharge you. Or just vanish, as I have seen some of them do.

As I explain in an article on my main website about debt settlement companies at http://jthomasblack.com/sk_links-php/is-your-debt-settlement-company-legal, these companies often operate without registering with the State of Texas as they are required to do, they don’t comply with the legal requirements, they don’t post a bond to protect you, and they often charge far too much for their services.

However, there are some legitimate companies that have registered with the state and do comply with the law. 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/Debt_Management.html. Click on “List of Debt Management Services Providers” to see if your service is listed, and you can find those that are properly registered.

Or, if you have serious debt problems, or are facing a repossession, foreclosure, or IRS problems, you may want to consider consulting an attorney that is experienced in these matters. Attorneys are fiduciaries, which means that they are required to explain all of your options to you and act in your best interest. It may be best to know all of your options, including the options that you have to file Chapter 7 or Chapter 13 of the U.S. Bankruptcy Code.

Tools of trade for bankruptcy lawyer

A client came in for his signing appointment recently, to sign his Chapter 13 bankruptcy petition and plan, and afterwards said it was an “unbelievable relief.” He said it worked out better than he thought it would, and was better than he bargained for.

Chapter 13 can work very well for some people. In his case, he owes the IRS about $6,000, $12,000 on a truck and about $35,000 in credit card debt. By using Chapter 13 to combine all his debt together, reducing what is paid back to the credit card debt, and stretching it all out over 5 years, his monthly payments are reduced from about $1475 per month to $450 per month. And at the end of 5 years, he will be totally debt-free. And that includes all of my attorney fees and costs; he only had to pay $400 upfront for the costs to get the case started.

Chapter 13 doesn’t work as well for everyone, everyone’s case is different. But if you live in the Houston Texas area or surrounding counties, I offer a free first visit to review your situation and show you how the various options work. For an appointment, call my office at 713-772-8037, or go to my main website and you can make an appointment by clicking on the red button labeled “Schedule An Appointment Today.”

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.

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.