(Financial advisor) What the New Bankruptcy Laws Mean for You
No commentsBy Dillon Norris
There are 2 sides to the changes in bankruptcy rules. It will be a lot harder to file bankruptcy under chapter 7 and get a totally clean slate.
For businesses, relying on issuing credit, the new personal bankruptcy law is doing great, reducing personal bankruptcy claims from the thousands to double digits.(In the short run).
However, lawyers working with the actual people filing for bankruptcy say that the new law is seriously flawed because it puts more financial burdens on already broke clients and reduces potential debt repayment to small businesses.
And then of course you have the credit card companies charging high interest rates which in quite a few cases caused the bankruptcy in the first place.
According to some financial specialists, much of the debt people accumulate is a result of keeping up with the Joneses and not thinking ahead.
For 80% of clients counseled each month, the debt is credit card related and averages $32,000 - a result of six to eight cards. Consumer credit organizations say the new law provides debt-reducing strategies for those considering filing bankruptcy and curbs abuse.
Under the new law it has become a requirement that the person filing bankruptcy obtains credit counseling both before and after filing for which that person will be charged..
So now the consumer would then know the advantages and disadvantages of declaring bankruptcy. Yet it seems merely another expense for an already financially stressed individual.
People filing bankruptcy in general are not overspenders, but merely faced with temporary financial disasters such as medical costs, layoffs, a divorce, gambling debts or other crises. Before you can file bankruptcy,you are now required to complete credit counseling with an agency approved by the U.S. Trustees office.
This credit counseling is designed to help you determine whether or not bankruptcy is appropriate.
Once you complete your bankruptcy, the law requires you to attend another credit counseling session.
These are new requirements, before this law was passed the law did not require a person to go through counseling either before or after the filing of bankruptcy.
Second, under the old law, a person could decide to file under Chapter 7 or Chapter 13. Under the new law, the court will look at your monthly income and apply a means test relating to the state in which you live. If your income is less than or equal to the medium income then you will be allowed to file Chapter 7 which in effect will give you a clean slate.
This medium income can vary from $28,000 in Missouri to $56,000 in Alaska. If your income is greater, you may be forced to file Chapter 13 unless you can demonstrate you do not have enough disposable income.
Under Chapter 13 you will not get a clean slate but will have to make payments on your debts.
Also, your attorney now has to personally certify that your bankruptcy filing is accurate. This means more work for the attorney, with higher legal fees.
Advantages of declaring Bankruptcy:
Legal protection from creditors
Takes care of all or most debt
In some cases, can keep home and car
May stop complete financial ruin
Provides a fresh start
Disadvantages of declaring Bankruptcy:
Bad credit
May have to repay partial debt load and return collateral to creditors
May lose assets, including house and car (If the house is worth more than a certain amount).
Bankruptcy becomes public record, and
Remains on credit record for seven to 10 years
“In the past, a bankruptcy offered a fresh start for the filer,” said Columbia attorney Gwen Froeschner Hart. “The new federal legislation offers language directed at helping creditors.”
If you analyze credit card expenses for most people you’ll see that they often include medical bills and day-to-day expenses for the elderly or those earning low or fixed incomes. Records show that 50% of credit card holders do not pay their full credit card bills every month.
33% of the population can’t afford medical insurance so have to charge their prescription drugs.
With the recent Medicaid cuts and rigid bankruptcy legislation who knows what is going to happen to these people.
There are some who say consumers are abusing creditors. The irony is that credit card companies are begging for customers and offering large amounts of unsecured credit, yet at the same time, lobbying for stricter debt controls.
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What to Avoid in an Interview
By Josiah Walter
Arrive on time. Dress well. Write a thank-you note. Don’t lie on the application. You have the job-hunting basics down, but the gods of employment have plagued your people with a drought. Whether you’re interviewing after a layoff, seeking a change of employment or documenting your futile interviewing plight to milk yet another unemployment check, be aware of these five deadly interviewing sins.
1. Don’t get too friendly.
You’re chatting with the interviewer, discussing professional experiences and swapping war stories; however, a relaxed interviewing environment is no excuse to become complacent in your professionalism.
An ex-colleague of mine was looking to migrate back towards substance-abuse counseling, his original area of study and expertise. He was cordial, outgoing and a hard worker. He had plenty of experience and great references, but he met his downfall while making small talk. After the interview, the hiring manager mentioned in passing that he had recently received a DUI. My colleague, attempting to empathize, admitted that he, too, had received a DUI ticket. On three separate occasions. Lesson learned: get job first. Tell war stories later.
2. Don’t forget to train rigorously.
Reading job-seeking books, articles and studying potential interview questions are all great ways to prepare, but these resources don’t exactly put you in the interviewing hot seat. You wouldn’t expect to run a marathon just because you’ve read several books about running, would you? Get a friend or significant other to give you a dry run through a hypothetical interview with suggested questions from these books or articles. Even better, if you know someone who is a hiring manager or works in human resources (for a different company, of course), ask them to administer the mock interview.
By humbling yourself and asking for the help of others, you’ll receive constructive criticism and be able to integrate another perspective into your response. You may even be asked a question that you never considered answering, making great practice for unexpected interview surprises.
3. Don’t forget to shut up.
When you’re done answering the question, shut your mouth. The two deadliest kinds of interviewers we will refer to as the “poker face” and the “yes man.” The poker face will ask you a question and give no signs of life during the answer. In hopes of eliciting a smile, nod or comprehending grunt, you will elaborate. And elaborate. You will continue elaborating until you realize that the poker face is playing a game. By the time you realize you are involved in a game, you have already lost. Take this knowledge and answer the next question completely, concisely and without superfluous commentary.
The yes man is just as deadly, if not more so, than the poker face. He will nod his head and seem to understand and agree with every answer. Feeling encouraged by this enthusiasm, you will elaborate. And elaborate. You will continue elaborating until you realize that you could say your career goals to sleep with the boss, publish trade secrets and burn the building down, and the yes man would still nod his head.
In the yes man’s defense, sometimes he may actually agree with what you are saying at first, but, towards the end, every nod means “Yes, I understand. Just like I understood ten minutes ago. Please stop talking, lest I puncture my own eardrums with this letter opener.”
4. Don’t forget to tone it down.
Everyone knows not to bad-talk a previous employer, but even a comment where you feel you have restrained yourself may ring sour with the interviewer. If you’re jaded and bitter with your current job or the interviewing process, try to keep the disillusion to a minimum. Take yourself to a happy place. Reminisce about the time you unwrapped a vending machine sandwich, locked it in your manager’s file cabinet and allowed their office to smell mysteriously foul for weeks. If your personality is sarcastic or dry, make sure to take this down a notch as well. While your friends and family may understand your charismatic quirks, a complete stranger may not.
5. Don’t forget to bring enough supplies to make a Boy Scout proud.
Bring a notepad, pen and three copies of your resume and references. Taking notes shows a proactive attitude and commitment to the interview. Additionally, these notes will be useful later when writing a personalized thank-you note to the interviewer.
If multiple members of management are administering the interview, make sure to provide a resume for each person. Worst-case scenario: you only bring one resume and end up with back-to-back interviews, thus leaving you empty-handed for the second round.
Whether you’re rebounding from a layoff, looking for a different job or seeking excuses to stay unemployed, these tips will help you accomplish your objective. By becoming aware of these deadly interviewing sins, you’ve taken the first step towards meeting your goal!
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How Can Credit Card Debt Counseling Help?
By Mervin Hester
Not everyone believes that credit card debt counseling is beneficial and there are various reasons for that. Some people just read articles in the newspapers or find advice on the internet and take that as the final thing. So they don’t feel the need for credit card debt counseling. Some others feel that credit card debt counseling companies are just trying to make quick money by telling you the obvious i.e. by telling you something that is being advertised everywhere. However, the most important reason arises from the fact that not all credit card debt counseling companies are genuine and of those that are genuine, not all credit card debt counseling companies provide good advice. So, choosing a proper credit card debt counseling company becomes a critical factor in determining the success of credit card debt counseling. Always go for a reputable credit card debt counseling company, even if their fee is a bit higher.
Remember that a proper credit card debt counseling can help you in not just eliminating your credit card debt, but eliminating your credit card debt in a way that is so cost effective as to more than offset the fee credit card debt counseling company is charging you. Moreover, proper credit card debt counseling can save you a lot of time and energy that you would have otherwise spend in studying all about credit card debt, gathering information about various credit card debt elimination measures and comparing these measures. Further, these credit card debt counseling companies can present more than one solution to you from which you can choose whatever appeals the most to you. These credit card debt counseling agencies can also get your credit card debt settled much quicker than if you were trying to do it all by yourself (and without any credit card debt counseling). Also, credit card debt counseling could bring to light things which you would not have been able to see e.g. risks with the approach you were thinking to adopt or a futuristic view of things. Moreover, a person who earns his/her bread by practicing credit card debt counseling as a profession, would know the tricks of the trade which no one else would even have an inkling to e.g. pitfalls of a particular debt consolidation offer, or advantages of another offer etc etc.
There is no doubt with regards to the benefits that credit card debt counseling can bring to you. However, you need to be careful and avoid the fraudsters and pick up someone who has a good reputation.
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Sunday, November 29th, 2009 at 10:15 pm and is filed under finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
