Houston-Based Law Firm, Busby & Lee, P.C. Launches Toll-Free Consumer Hotline to Address Confusion over new Bankruptcy Laws
Houston, TX (ContentDesk) July 12, 2006 -- The Bankruptcy Abuse and Consumer Protection Act, also known as BACPA, not only changed the bankruptcy law, it created a significant amount of confusion and misinformation among consumers, the media and even creditors. In an attempt to help clarify the confusion, the Houston, Texas based law firm of Busby and Lee, P.C. set-up a new consumer bankruptcy hotline number, 1-888-422-6423, to answer general questions about the Act.The hotline addresses the issues and concerns of individuals facing lawsuits, foreclosure, and/or repossession, particularly individuals who may be contemplating bankruptcy due to debt problems. The hotline was the brainchild of attorneys Michael G. Busby, Jr., and Ricardo Contreras, who along with a dedicated staff of professionals, spent several weeks in the summer of 2005 attending various national seminars in preparation for the implementation of the reform act. Many consumers are complaining about collection agencies stating that the consumers cannot file for bankruptcy or that the consumer will not qualify as a result of the new act, according to Michael Busby, a partner with the firm that specializes in consumer bankruptcy, family law and criminal law, The truth is that simply may not be the case. While the Act has definitely added to the complexity of the situation, it has not eliminated options for consumers faced with debt-related problems, he added.
About 80% of those consumers contemplating bankruptcy fall under the median income for their state. Median income is issued by the U.S. census bureau, and it is determined by the household size and income. If the debtor falls below the median income then the debtor will likely qualify for chapter 7. Chapter 7 versus Chapter 13Attorney Ricardo Contreras adds, For those debtors who fall into the 20% of the above-median income, this doesnt mean that you are barred from filing a bankruptcy; instead, a test called the means test must be performed. Under the means test, the debtors income is determined by the last six months of income received and guidelines establish whether or not a Chapter 7 filing is applicable or if a Chapter 13 debt consolidation is required. Many variables factor into the determination of Chapter 7 versus Chapter 13 eligibility, Contreras continues.
The new regulations point to the need for professional advice for anyone seeking bankruptcy protection. For most debtors the paperwork is the same. However, one constant is that every debtor must undergo credit counseling before the case can be filed. The policy behind the credit counseling requirement is to encourage the debtor to attempt a debt management plan or a consolidation of their credit cards with a non-for-profit entity. The entities approved to conduct the counseling are, for the most part, undergoing a budget analysis, which concludes that filing bankruptcy is the only option. Busby & Lee, P.C., provides the debtor with a list of authorized providers.Even if a debtor cannot file a Chapter 7, Busby & Lee, P.C., would still recommend a Chapter 13 bankruptcy vs.
a private consolidation. Generally, the repayment plan proposed in a Chapter 13 is easier for the debtor to budget than the consolidation payment. Also, many times in a Chapter 13, the debtor will not pay 100% of the credit cards back. Most of the time there is no interest paid on the credit cards, and no issue exists in trying to negotiate lower interest rates, as with the a private consolidation. At the same time, penalties and over the limit fees are no longer assessed against the debtor.
Finally, the debtor may consolidate secured debt in the Chapter 13, which cannot be done in a private consolidation.For more information on Bankruptcy Abuse and Consumer Protection Act, personal bankruptcy, family or criminal law, contact Michael Busby at 713-974-1151 (toll free: 888-422-6423) or visit their website www.busby-lee.com..
Will Rod Stinson, Self-Made Multimillionaire & Top 20 Marketer, Do it Again?
Federal Way, WA (ContentDesk) March 9, 2006 -- Rod Stinson, a home based direct marketing entrepreneur spent the first 13 years of his working career as a machinist in the aerospace industry. He followed in the footsteps of his father who did it for 44 years. He craved change. After spending 4 years attempting his hand at the home based marketing industry, Rod found himself standing before a San Bernardino bankruptcy judge and lost his house, two cars, and even his wife's salon business. He became part of a growing statistic of 15 to 20 million Americans now trying to make money from their home.
Although the home based business direct sales industry has been around for 50 years, the sad commentary on the industry is that 97% of those who get involved fail; and many people these days are just 7 days away from bankruptcy. This means that if they miss a paycheck they are in serious financial trouble. For this reason many are trying to generate additional income with a home based...
Will Rod Stinson, Self-Made Multimillionaire & Top 20 Marketer, Do it Again?
Bankruptcy > Will Rod Stinson, Self-Made Multimillionaire & Top 20 Marketer, Do it Again?
Florida?s Middle Class Being Forced Into Bankruptcy
In the past, being Middle Class meant a comfortable secure life. Now many in the middle class are finding themselves swamped in debt and facing financial problems.
Many of these middle class people are finding that bankruptcy is sometimes the only option. Florida's middle class used to live a secure and comfortable life.
Florida had no income taxes, housing costs were low and the quality of life was great.
In the past ten years things have changed for Florida's middle class and they are struggling to make end's meet.
What is most shocking is that Florida's middle class makes between $40,000 to $120,000 dollars per year.
While some people in America would say that Florida's middle class is well off?.they are still being forced to file bankruptcy in record numbers.What is forcing Florida's seemingly well off middle class people into bankruptcy?
These financial pressures can be attributed to three factors:
1) The Middle class...
Bankruptcy > Florida?s Middle Class Being Forced Into Bankruptcy
Smart Landlords Use Very Smart Leases
The longer you are a landlord the more you strive to create the perfect lease/rental agreement. Landlords learn in the school of hard-knocks that some tenants are certified trouble makers and we try our best to protect ourselves with a carefully structured restrictive lease.
That's just good business.... but be careful you don't include any provisions in your lease that may not be legal. For example...
It would be illegal to include a provision that states the resident agrees not to include his or her lease (the lease on your property) in their bankruptcy filing...
should their bankruptcy become necessary.
Bankruptcy laws are Federal.. lease law is state law.
Anyone can file for bankruptcy and invoke all protections afforded to them by the U.S. Bankruptcy Code... including not making lease payments... at least temporarily.
Here's another caution...
It would be illegal for your lease to require...
Bankruptcy > Smart Landlords Use Very Smart Leases
Individual Voluntary Arrangement Can Prevent Bankruptcy
(ContentDesk) July 16, 2006 -- Bankruptcy is on a steep rise in the UK. Part of the problem is a misconception that going bankrupt represents a soft option when dealing with serious debts and insolvency, say debt help experts The Debt Counsellors, who are urging people with serious debts to consider the Individual Voluntary Arrangement as an alternative.