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Richard E. West & Associates Attorneys
Debt Relief Newsletter
Drowning in Debt? New Law is No Problem! Help is still available for those who need it.
Some people think the new law means you can’t wipe out debt in bankruptcy. NOT TRUE! I have heard some say they think that all your debt must be repaid after you file a bankruptcy. NOT TRUE! Others think that everyone has to file a Chapter 13 re-payment plan, and that Chapter 7 has been eliminated. NOT TRUE!
The truth is that bankruptcy relief continues to be a safety net for those who are drowning in debt and simply cannot pay their bills. There are some new forms to fill out, and some additional steps for everyone to complete under the new law. But, and this is the good news that more people need to know, bankruptcy relief is still here!
In my office, we are filing the same Chapter 7 and 13 cases we always have, and getting mostly the same results we always do for our clients. To those who believe that there is no more bankruptcy, I can assure them that it is simply “NOT TRUE!”
Record number of foreclosures filed in Montgomery County – most since recordkeeping beganTimes are tough, and the number of foreclosures filed in February, 411 cases, proves it. In 2005, the county had 4,050 foreclosures, up 207 percent from 1997. Clerk of Courts Foley said in a news release, "We need to loudly and consistently encourage the public to reach out and try to get some help if you're either in an active foreclosure situation, or if you may be in danger of facing a foreclosure."
If you are behind in your mortgage payment, call us. We can help get you the time you need to catch up, and save your home. We can save your home up to the day before the sale.
Beware of “Workout Companies” who promise they can arrange a deal with your mortgage lender. Many of these are scams. Once behind, a bankruptcy is often the only way to save a home from foreclosure.Happy Holidays, but spend wisely
Four out of ten people said that they would use credit cards to pay for holiday spending, and many of these only hoped that they could pay off their debts soon after the beginning of the new year.
For many of these folks, bills from Christmas spending will push them over the limit, in more ways than one.
The way to avoid this crisis is to set out a holiday budget, and stick to it. Write down the names of everyone on your list and write down the gift(s) you would like to buy for them. Total the amount and compare it to your disposable income and/or any Christmas accounts you have available for use during the holidays. If the two numbers do not come very close together, consider cutting back.
Many people end up in bankruptcy because their hearts are bigger than their wallets. Do not sacrifice your financial safety by overspending on the holidays. Enjoy your friends and family and purchase items that fit your budget. You may not be giving out the best or biggest gift this year, but you will be a much happier person when you get that credit card bill in January.
DO NOT allow debt to keep lurking after the Holidays
Richard West Advises the Miami Valley
During the rush to file cases under the old law, news outlets were curious as to the actual affect the reform would have on consumers’ ability to file bankruptcy. Many of them turned to Richard West for the truth.
He was the featured bankruptcy expert on DATV’s “You and the Law.”
Fox 45/ABC 22 news filmed a bankruptcy reform segment in our Springboro office while interviewing Mr. West.
He was asked to speak on Bankruptcy reform topics at various seminars to assist educating attorneys on the intricacies of the new law.
The Dayton Daily News interviewed Mr. West frequently during their numerous articles on the increase in Bankruptcy filings and the reform law changes.
What about my credit? Will I get credit again?
Yes, you can! In fact, filing a bankruptcy is often the first step to restoring your credit, after a job loss or medical problem has caused you to get so far behind that you can’t possibly pay your bills.
The way to restore your credit is simple, and effective, and I show every one of my clients how its done as part of my services in helping them back to financial health. You see, its not enough to wipe out the debt, you must also restore your credit. Some people may be able to live a “cash only” life, but, this is America, and credit cards are a necessary part of life for most people. Try to rent a car, get a hotel room or buy an airline ticket with cash and see how far you get! Even if its only to be used in emergencies, a credit card is something everyone needs.
We show you how to restore your credit quickly after bankruptcy.
How to protect yourself from credit card abuse?
After getting out of debt, I recommend that you only have two credit cards, and use them every month for gas or food or other necessities. At the end of the month, pay the card down to about five dollars. This will keep the credit card from being closed from non-use, and will keep the amount of interest you pay low.
This way, you are maintaining a perfect payment record, and, even if the credit card company does hit you with a rate increase, you still won’t be out much money. And, if and when it happens, you can close that card and get another.
Who Files For Bankruptcy Relief?
Average age is 38
44% are couples
30% are women alone
Two of three have lost jobs
Half have had a serious health problem,
And ….
More than 91% have suffered a job loss, divorce or medical event.
How much must one owe to file bankruptcy?
There is no set minimum amount.
I have filed cases for families owing only a few thousand dollars to over a million dollars. The question is really not how much is owed, but rather how long would it take to repay it. Did you know that the average bankruptcy case discharges about $30,000 in debt?
If someone owes $30,000.00 in credit card debt, it will take them about ten years to pay it off making minimum payments of approximately $1,000.00 per month (assuming no more charges are made) and they will pay more than $120,000.00 over that time!
How can I pay for my Bankruptcy when I can’t pay my bills now?
When you can’t pay your bills and need a bankruptcy filed, how do you pay for the bankruptcy? Seems like a “catch 22” problem, doesn’t it?
Not really. Once you decide to file a bankruptcy, you stop paying your unsecured creditors, typically the credit cards. The money you save is used to pay for your bankruptcy.
Generally, when you stop paying, the credit card companies will write you, then call you, then turn you over to collection companies. But this takes time.
When you hire my office, we only require a deposit, ($200 for chapter 7 or chapter 13) to open the case, and then you can refer all your creditors to us. We verify that you have retained us and often they will stop calling you.
This way, you get immediate relief from most creditor calls while you save the money you are not using to pay the credit cards to pay for your bankruptcy.
It is important to remember that no official court protection is obtained until the case is filed, but creditors can’t garnish wages or take money from bank accounts until they sue you in court. And that takes more time than it takes most to file their case, which stops all collection action instantly.