Despite sweeping financial reform in Washington, D.C., aimed at ending questionable credit card billing practices, banks are continuing to implement procedures that pretty much ensure borrowers accumulate as many fees as is legal.

These dubious practices occur when portions of cardholders’ balances carry different rates of interest; cash advances often come with significantly higher interest rates than purchases. Before these reforms went into effect, banks would first apply payments to balances with the lowest interest rates. This guarantees that the costlier balance keeps growing indefinitely.

The new credit card law, which took effect February 2010, designates that any payments above the minimum must first be applied to the balance with the higher interest rate. The key to being a savvy credit card user is, first and foremost, being able to understand each card’s practices.

In a Chicago Tribune article by Becky Yerak, “’Capital One and Bank of America are the most upfront in disclosing interest rates, fees and rewards on their credit cards,’” from a study by www.CardHub.com. These two cards scored the highest among ten issuers in clarity on their applications in the following areas: rewards, annual fee, costs to carry a balance on new purchases and costs to make a balance transfer.

In contrast, the worst performer in the study was U.S. Bank.

Many company’s card applications did not clearly disclose the balance transfer fee; conversely, most applications did clearly state annual fees.

When applying for or accepting new credit cards or if you are trying to find the cards that will help you pay down your credit card debt, it is vital to read that fine print and find the card that best unlocks your financial puzzle.

If you have been contemplating filing for personal bankruptcy protection due to overwhelming credit card debt, contact the lawyers at Legal Helpers. We are knowledgeable and experienced in the field of Chapter 7 and Chapter 13 personal bankruptcies. Call toll-free 800-260-1402 today for your initial free consultation or log onto www.legalhelpers.com.

California city and county agency budgets are about to get a lot tighter.  A bill that would restrict local government bankruptcies is being heard this week by the Senate Local Government Committee.  The bill in question, California Assembly Bill (AB) 155, has been recently amended in efforts to tackle the red ink problem around the country.  Under the plan, a local government must submit to a review by a state auditor and have that review publicly released before filing municipal bankruptcy.  The auditor will work as an appendage to the California Debt and Investment Advisory Commission, who will also have to approve the bankruptcy. By the time the auditor’s (often time-consuming) review has finished, that local agency could have already defaulted on major debt or become inoperative. 

Nowhere is the red ink problem worse off than in the land of the redwoods, appropriately nicknamed “bear state” California.  Predictably, the California State Association of Counties is ardently opposed to the AB 155.  The state has been at the end of its tether for the better part of a decade.  Bankruptcy was one of their last hopes for bouncing back, but it is now being taken off the table. They know that its passing will mean an auditor cutting major limbs off of the government, while spelled-out contracts will be honored. Union members are wary of being the first corner cut in a municipal bankruptcy, where breaking such allegiances is fair game. 

The State of California saw Chapter 9 municipal bankruptcy for towns, counties, etc it as one of its few viable options.  As a result, AB 155 is being called the most reviled bills of the year.  Only time will tell if the California Debt and Investment Advisory Commission, along with dozens of pay-rolled auditors, will be fair and equitable to the greater good of California.

Chapter 9 municipal bankruptcy is a decidedly rare occurrence, but its effects can cripple an entire community.  To deal with the consequences of a broken union contract or wide scale job cuts, an individual within that town might want to investigate the possibility of a Chapter 7 or Chapter 13 personal bankruptcy filing.  These types of bankruptcy are the best and most common tool for tackling insurmountable debt.  Contact the office of Legal Helpers to learn the full extent of your options. Call 1-800-260-1402 www.legalhelpers.com 

You Can Even Be Convicted of Fraud During an Involuntary Bankruptcy, as an Oregon Man Discovered.

If you are a lifelong collector, your worst nightmare is having your Hummel dolls and various other Franklin Mint collectibles ripped away from you.  Heed this warning now: this is exactly what will happen when you try to hide your assets from the bankruptcy court.  Significant assets can be liquidated to repay your creditors.  This is so that the everyday debtor who can afford to repay their debt do not simply evade their financial responsibilities with an errant filing.

Concealing assets is punishable as bankruptcy fraud, whether those assets are guns, antique costume jewelry or that extra car in the driveway.  Bankruptcy exemptions are listed for the state in which you are filing, When Bernie Madoff’s Multi Billion Dollar Ponzi scheme was revealed, many people rightly suspected he had transferred his money to distant relatives and Swiss accounts.  His wife saw an unparalleled wave of backlash when she claimed $70 million was hers to rightly keep, all while millions of Madoff’s spoils went unaccounted for.  The trustees linked her money with the stolen goods, and she was only allowed to hold on to $2.5 million.

Madoff was no novice to fraud and he was no match to his criminal investigation. Donovon Lindhorst of Gresham, Oregon, by contrast, was merely an amateur who landed himself in an involuntary bankruptcy.  He was negligent for dodging the bill on a Roofers Welfare Fund for which he was responsible, and they collectively petitioned for his bankruptcy.  He was so stubborn against paying the roofers welfare benefits that he transferred $182,000 in funds to his son and $190,000 to his wife.  He also kept some gold in a concealed safe in his home and having sent a Roaring 1928 Roadster to rest on some cinder blocks in Washington State.

You may think that keeping your own possessions is your right, or that no one will notice if you bend the rules slightly to keep a treasured baseball card collection.  However, you are much more likely to be found guilty of a bankruptcy fraud than having an open container in your car, stealing eyeliner from the makeup counter, or even cheating on your taxes.  Why? You are under particularly high scrutiny when going through a bankruptcy.  It is absolutely essential that you list all conceivable assets for a Chapter 7 or Chapter 13 bankruptcy filing.  If you attempt to transfer funds to anyone, your bankruptcy trustee will find the discrepancy in the bank statements they require for the process.  A Legal Helpers bankruptcy attorney can advise you in the necessary steps and help you fulfill your obligations, while keeping you out of trouble!  Contact us toll-free at 1-800-260-1402 for a free bankruptcy consultation.   www.legalhelpers.com