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Archives for June 2009

Debt Settlement Company Files Bankruptcy, Leaves Consumers in the Lurch

Posted on June 26, 2009 Written by

The debt settlement company, Debt Relief USA of Addison, TX, which several of my clients have had the unfortunate experience of signing up with, filed for Chapter 11 bankruptcy relief today in Dallas with about $5 million in debts owed to thousands of consumer debtors it was supposed to be helping.  They took in payments from consumers and were supposed to be negotiating and settling debts.  The company was being investigated by the Federal Trade Commission and Attorneys General in several states.

This illustrates why the Kansas Legislature saw fit to outlaw debt settlement in Kansas except by licensed Kansas attorneys as part of their private law practice.  Debt settlement companies you find on the Internet or television advertising are not a viable alternative for resolving your financial problems.  Read good advice from my colleagues on the Bankruptcy Law Network, Wendell Sherk‘s “nine questions to ask a debt negotiator” and Steve Otto’s “billed as bankruptcy alternative, but are they really?”

Filed Under: Bad Outcomes, Fraud, Crimes, Financial Help

Shawnee County Scores 7.56% Financial Stress Rating, Up 2.20% from Year Ago

Posted on June 26, 2009 Written by

Here is an interactive map that shows financial strain in every county in the United States by the Associated Press.  It measures the impact of the economic recession and recovery by showing the rates of unemployment, foreclosure and bankruptcy.  Shawnee County, Kansas, has a 7.56% stress rating, 5.6% unemployment, 0.65% foreclosure and 1.4% bankruptcy rating.

Filed Under: Kansas Bankruptcy News

What Will the Trustee Ask Me at My Bankruptcy Hearing?

Posted on June 24, 2009 Written by

Here are the standard questions that the bankruptcy trustee asks debtors at chapter 7 and chapter 13 bankruptcy hearings also called a meeting of creditors or a 341 hearing.  The bankruptcy trustee is required to ask all debtors the first group of questions.  The second group of questions are suggestions at the trustee’s discretion.  These questions are printed in the trustee handbooks by the Executive Office of the U.S. Trustee.

REQUIRED STATEMENTS/QUESTIONS[1]

1.         State your name and current address for the record.

2.         Please provide your picture ID and Social Security number card for review. [Read more…]

Filed Under: Chapter 13, Chapter 7

Eron Law Offices Opened in Wichita

Posted on June 21, 2009 Written by

Attorney David P Eron

David P. Eron left his post with the Region 20 U.S. Trustee and opened his private law practice last week.  Eron will represent individuals and businesses in bankruptcy and business transactions.

He has three years experience as trial attorney with the U.S. Trustee, litigating substantial abuse and fraud issues and other matters in the U.S. Bankruptcy Courts in Kansas. [Read more…]

Filed Under: Kansas Bankruptcy News

Kansas Bank Seized by Regulators

Posted on June 21, 2009 Written by

The First National Bank of Anthony in Harper County near the Oklahoma border was seized by bank regulars Friday.  The bank will reopen as a branch of the South Hutchinson-based SNB Bank of Kansas.

The bank has branches in Wichita, Olathe, Overland Park, Anthony, Harper and Mayfield.  SNB Bank of Kansas is part of  Southwest Bancorp. of Stillwater, OK.

This is the fourth failure of a Kansas financial institution in recent times.  The Columbian Bank and Trust of Topeka, Teambank of Paola and Central Federal Credit Union of Lenexa failed in 2008.

Filed Under: Kansas Bankruptcy News

Income Tax Calculator

Posted on June 20, 2009 Written by

Here is an income tax calculator from the Internal Revenue Service. Remember, this doesn’t include Social Security (7.65% or 15.3% if self-employed), Medicare, or state income tax.  The IRS website includes a section for itemizing deductions.

Filed Under: Financial Help, Means Test

Bankruptcy Help for Farmers

Posted on June 18, 2009 Written by

Chapter 12 is a provision of the Bankruptcy Code that permits financially distressed family farmers to reorganize debts in a simple and efficient manner and save their farms.  It is limited to debtors who qualify as a family farmer with debts under the allowed limits.  Kansas, not surprisingly, has more chapter 12 bankruptcy cases filed than most states.  Attorneys who represent family farmers in chapter 12 bankruptcies in Kansas include:

  • Tom Barnes of Topeka
  • Bob Baer of Topeka
  • JB King of Topeka
  • Dan Forker of Hutchinson
  • David R. Klaassen of Marquette
  • Bill Zimmerman of Wichita

    • Eric Rajala of Overland Park and Ed Nazar of Wichita serve as the chapter 12 bankruptcy trustees in Kansas.  The attorneys at the Bankruptcy Law Office represent people who have farm debt from time to time in chapter 7 or chapter 13 bankruptcy cases, but we do not file chapter 12 bankruptcy cases for family farmers.

    Filed Under: Filing Bankruptcy, Financial Help

    Yes, You Can File Bankruptcy on Credit Cards

    Posted on June 18, 2009 Written by

    Here we are four years since the bankruptcy law was changed and people are still telling me you can’t file bankruptcy on credit cards.  Nothing could be further from the truth.  Yes, you can file bankruptcy on credit cards!

    It just goes to show you the power of propaganda.  Creditors want you to believe that you can’t get rid of credit card debts in bankruptcy.  They want you to believe that bankruptcy is too difficult.  They want you to believe you can’t file bankruptcy.  They don’t want you to know the truth.

    The truth is that most of our clients are able to get debt relief in bankruptcy as before.  The bankruptcy law has some new steps, mostly a credit counseling briefing to give you information about your options, an income test, and lots more paperwork, but most honest, middle-class Americans are able to get the financial fresh start they desperately need.

    So, if you need bankruptcy help, don’t be scared off by the myths and false rumors.  Call Topeka, Kansas, bankruptcy specialists Mark Neis and Jill Michaux at Bankruptcy Law Office for the truth.

    Filed Under: Filing Bankruptcy

    Watch Out for Mortgage Modification Scams

    Posted on June 17, 2009 Written by

    Watch out for all the mortgage modification scams out there preying on good people who desperately want to keep their home mortgage out of foreclosure. Many of the mortgage brokers who formerly got people into subprime loans are now calling themselves mortgage modification agents.

    “You should not have to pay someone to help you with mortgage modification”, Jackie Blaesi-Freed of Topeka’s Housing and Credit Counseling, Inc., told the Topeka Capital-Journal last week. Help is available through your lender, the government’s Making Home Affordable program or a U.S. Department of Housing and Urban Development (HUD)-approved housing counselor such as HCCI, she said.

    An excellent source of reliable information about mortgage loan modification programs is the non-profit National Consumer Law Center website.

    Filed Under: Foreclosure, Mortgages

    Yes, You Can File Bankruptcy on Medical Bills

    Posted on June 16, 2009 Written by

    There is a myth floating around that you can’t file bankruptcy on your medical bills. Nothing is further from the truth. In fact, a study published in the June issue of the American Journal of Medicine reports that 62% of bankruptcy cases involve medical debt, a 50% increase in medical bankruptcies. Most people were middle class and 78% had health insurance. With the high cost of medical care and less and less health insurance benefits, most Americans are one illness or accident away from financial distress or ruin because of medical bills. Bankruptcy help is still available for medical bills.

    Filed Under: Filing Bankruptcy, Financial Help

    Often Overlooked Expenses

    Posted on June 15, 2009 Written by

    OFTEN OVERLOOKED EXPENSES

    The first step to analyzing your finances is to write down all your income and all your expenses for your household.   The local credit counseling office recommends using a fritter finder,  writing down every penny you spend for several weeks to discover how much money is being frittered away.  Most people have never done this before. Documenting your finances is an eye opening experience.  Once you have all the information gathered, you can prepare a budget and determine whether bankruptcy relief may be an option for you to consider.

    Here is a list of often overlooked expenses when preparing a household budget:  [Read more…]

    Filed Under: Financial Help

    Bankruptcy Without Attorney is Bad Idea

    Posted on June 14, 2009 Written by

    Think again before you decide to represent yourself in bankruptcy.  Bankruptcy is a technical area of law full of traps for the unwary.  As the old saying goes a person who represents himself has a fool for a client.

    Seriously, many people who have attempted to represent themselves in bankruptcy have gotten themselves into big trouble, have lost property they didn’t have to lose, and have cost themselves more time and money than a bankruptcy attorney would have cost.

    If you do file your own bankruptcy and mess it up, [Read more…]

    Filed Under: Bad Outcomes, Fraud, Crimes, Filing Bankruptcy

    Can They Take My Home Away from Me if I File Bankruptcy in Kansas?

    Posted on June 14, 2009 Written by

    Kansans in financial distress often ask, “Will I will lose my home if I file bankruptcy?“  The simple answer is that most Kansans do not lose their home if they file for bankruptcy.  We are lucky in Kansas to have a homestead law that protects one acre of land in the city and 160 acres of land in the country from forced sale. There is no limit on the dollar value of the homestead.

    The longer answer to the question, though, is that some Kansans filing for bankruptcy relief will lose their homesteads to mortgage foreclosure, but probably not to the bankruptcy. Occasionally, bankruptcy filers lose their homes in bankruptcy because their home does not qualify for Kansas homestead protection or other exception to the general rule.

    Kansas homesteads are not exempt for debts [Read more…]

    Filed Under: Exemptions & What You Get to Keep, Foreclosure, Mortgages

    Mark Neis Recertified as Consumer Bankruptcy Law Specialist

    Posted on June 13, 2009 Written by

    Bankruptcy Specialist Mark Neis

    Topeka attorney Mark W Neis has been recertified as a consumer bankruptcy law specialist by the American Board of Certification.

    You expect certification from your doctor – expect it from your lawyer too. Board certification means that Neis has met rigorous, objective standards and has demonstrated knowledge in consumer bankruptcy law.  Mark Neis and his law partner, Jill Michaux are the only Topeka attorneys board certified in consumer bankruptcy law.

    The American Board of Certification is the nation’s premier legal specialty certification organization – certifying attorneys as specialists in business bankruptcy, consumer bankruptcy and creditors’ rights law. Only eight Kansas attorneys are board certified in consumer bankruptcy law.

    Mark Neis has been helping consumers and small business proprietors in chapter 7 and chapter 13 bankruptcy cases for 31 years.  He was board certified in 1993 and has been recertified every five years since. Call Mark today for bankruptcy help at 785-354-1471.

    Filed Under: Kansas Bankruptcy News

    Kansas City, Kansas "Till" Rate

    Posted on June 3, 2009 Written by

    The trustee’s discount rate (“Till rate”) paid on secured claims in chapter 13 bankruptcy cases filed in Kansas City, Kansas, is 4.75% for cases filed in June 2009.

    Filed Under: Chapter 13

    Bankruptcy: Mortgage Meltdown Melodrama at Attorney Seminar

    Posted on June 2, 2009 Written by

    Mortgage Meltdown Melodrama – Tied to the Railroad Track:  A Story of Villains, Heroes, and Happy Endings will be featured at the 20th annual conference of the Kansas Women Attorneys Association in Lindsborg in July.

    Kansas Chief Bankruptcy Judge Robert Nugent, Chapter 13 Standing Bankruptcy Trustee Laurie Williams and Chapter 7 Interim Trustees Patricia Hamilton and Jill Olsen will present the continuing legal education in bankruptcy.

    Pulitzer prize winning columnist Ellen Goodman of the Washington Post is the keynote address speaker.

    More information about the Lindsborg conference may be found on the KWAA website.

    Filed Under: Mortgages
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