That personal bankruptcies are on the rise in the United States is no longer the fodder for banner headlines. In fact, seven hundred and seventy thousand individuals have filed for bankruptcy since the beginning of 2010. An additional 1.6 million Americans are expected to file before the year is over, according to CNN Money. High amounts of debt along with a low level of savings make the ideal cocktail of financial misery. Living above your means is not just a problem for the average American; it wreaks anguish for the rich and famous, as well.

Author Mark Riddix, in Investopedia from the San Francisco Chronicle, reports on the money woes of some big-time (and not such big-time) celebs:

Stephen Baldwin, the youngest Baldwin bro, filed for bankruptcy last year with over $2 million of debt. The “star” has resorted to appearing on such sleazy TV shows as “I’m a Celebrity…Get Me out of Here!” and “Celebrity Apprentice” to come up with the bucks he owes to mortgage lenders, credit card companies and the federal government for back taxes. As reported in an earlier blog, there is even a website started by a Baldwin fan that is attempting to help Baldwin regain his previous financial status.

Sinbad, the “comedian” turned “actor” only has $50,000 in total assets against debts totaling between $10 million and $50 million dollars. He owes over $8 million dollars in back taxes alone. He has been trying to sell his home before potentially losing it to an IRS seizure. (I sure hope it is a BIG house, worth LOTS of money!)

Mark Brunell is a three time Pro Bowler (as in football, not bowling!) who played for the Jacksonville Jaguars during the '90s, and is considered the second best left-handed quarterback in the NFL after Steve Young. The former star QB invested in a number of ragged real estate deals, leaving him teetering on the brink of bankruptcy. Brunell, who made over $50 million dollars during his playing career, currently has $5.5 million in assets and $24.7 million dollars in liabilities. How the mighty have fallen.

Jose Canseco, the former Oakland A’s slugger who opened the Pandora’s Box of the steroid scandal, is reportedly struggling to remain financially afloat. Canseco, once the most feared hitter in baseball and the first player to hit 40 home runs and steal 40 bases in one season, has “resorted to amateur mixed martial arts fighting to try and pay the bills”. He walked away from his multimillion dollar mansion because he was unable to pay the mortgage. He has allegedly sold his World Series rings and schedules personal appearances to make ends meet; he has, however, not filed for bankruptcy.

Filing for Chapter 7 or Chapter 13 personal bankruptcy should not be taken lightly. Whether you have been spending recklessly or responsibly, call the experienced and understanding bankruptcy lawyers at Legal Helpers toll-free at 800-260-1402, for the helpful advice you need to get your financial future in order. Your initial consultation is free and could be the key to your economic freedom.

Don’t go broke with your investment broker. If you still have money to invest, and a lot of people do, how do you find the right broker to help make the decisions as to where to put your hard-earned and hard-saved money? Do you look on the Internet, respond to a “cold-caller” or ask a trusted colleague for a name? Any of these could be less than optimal, resulting in a broker with little or no experience or, worse yet, a shady operation.

Former broker-turned lawyer, Richard Lewins, warns potential investors about choosing a personal investment broker. In a Chicago Tribune article by Pamela Yu, Lewins said that he became a lawyer representing the investor “because he didn’t like how the brokerage industry treats clients.” He is quoted saying, “’I had a branch manager tell me that there are three sides to a transaction: the customer, the broker and the firm. Two out of three have to make money. Well, figure that out.’”

Most investors use a referral. However, your investment goals and “risk tolerance” could be the opposite from those of your referral. You also probably have no idea if your connection did his due diligence, completely vetting the broker and brokerage firm in question; you need to do this yourself.

A dangerous and crazy way to hire a broker is to hire one “sight unseen” from an unsolicited phone call, one of those pests who phones just as the family is sitting down for dinner.  These salesmen (that is what they are) can be very smooth and convincing. Beware this “smiling & dialing”, as it used to be called.

An increasing number of brokers are using seminars to lure new clients, says Lewins. The invitation states that the meeting is strictly informational when, in fact, they are there to sell you a product or investment plan that will line their pockets instead of your own.

There is also an increase in the use of “affinity groups” where people with a shared background are approached; Lewins states that some spiritual leaders have become investment brokers to supplement their own incomes. He adds that people should be wary of choosing a broker based solely on a commonality of interest.

How to choose a broker? Lewins says, “’The same way porcupines mate; very carefully.”

If your investments have left you broke and broken, filing for Chapter 7 or Chapter 13 personal bankruptcy may allow you to start a new financial life. If you are considering filing for bankruptcy protection, 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.

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Attorney generals from New York to California have one eye locked on the dubious activity of debt settlement centers.  Much like “freecreditreport.com” attempted to sell what many Americans could already gain from the government and FTC-backed sites.  The latest waste of consumer dollars are debt settlement programs marketed as an “alternative to bankruptcy”.   Commercials advertise debts of ten thousand dollars that were settled for a mere 700 dollars.  The catch is that debt settlement centers do not charge a flat fee, but a huge chunk of your thousands in credit card debt—sometimes a whopping 15 to 20 percent.  Vulnerable consumers regularly render their finances worse than if they had simply filed for bankruptcy right away.

The Better Business Bureau, as well as different State Attorney Generals scattered across the country, view these debt settlement programs as predators stiffing consumers of their meager remaining dollars.  After 21 states used 128 different enforcement agencies to take supposed “debt relief companies” to task, these attorney generals have finally taken note.  Unlike bankruptcy, debt settlements are not tried before a state registered court—there is virtually no regulation of the “debt settlement” industry.

In the age of the Internet, rampant identity theft, a revived infomercial industry and booming check cashing programs, it is harder than ever to know who to believe. Debt settlement programs paint the credit card companies as the villains and bankruptcy firms as vultures; they strongly pit themselves as the long-anticipated “bankruptcy alternatives”, arguing that the bankruptcy process is long and arduous.   

What they don’t tell their consumers is that debt settlement programs are not a brief affair and sometimes take two to three years to complete.  The process sets up an account for consumers to deposit monthly payments—identical to the payments one would make on regular credit card bills—while circumventing credit card payments.  Then, the debt settlement company offers a lump sum in order to cut the debt in half.  During the two plus years in which you ignore credit payments, credit companies will make harassing collection calls as usual; in cases of particularly high credit card debt, the company will not hesitate to initiate a creditor lawsuit. 

Don’t risk your future. Attain regulated, court-controlled salvation through bankruptcy.  Call one of the skilled attorneys at Legal Helpers for a free consultation at 800-260-1402.