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Pay Down That Debt Now!

Thursday, 22 July 2010 12:30

So, you’d like to pay down the balances on your credit cards and other debts and get some much-needed sleep. But how to do it??

One debt-reduction plan, touted by economist Dave Ramsey, is known as the “snowball plan”. Here, as reported by Chicago Tribune reporter, Gregory Karp, is a brief synopsis of the strategy.

           ·          Stop borrowing money.

           ·          Stop saving money. If you are accruing interest at 0.5% on a savings account but are paying 18% on credit card balances, it just doesn’t make sense. An exception may be contributing to your 401(k) plan.

           ·          Start the snowball. Excluding your mortgage or rent; pay down your smallest debt as quickly as possible by putting every available there. Make minimum payments on other debts. This will provide a “quick fix”, one that may keep you motivated as you continue paying down your other loans.

           ·          Roll the snowball. When you finish paying off one loan, take the money you used to “kill the debt”, adding it to the minimum you were paying on the next largest one. Continue this strategy with your larger debts, gaining momentum as you go.

           ·          Or… consider paying off your debts with the highest interest rates first. This plan will save money on interest fees but will not give you the exhilaration of completely paying off bills. Motivation is an important tool for some people. You will have to decide which of these plans is the most likely to work for you.

           ·          Where is all of this money coming from? No trick question or quick fix; you need to spend less money than you make by earning more and/or spending less. Admittedly not easy, but not impossible.

If you don't have money left at the end of the month, don't despair and don't face your financial woes without an experienced and knowledgeable bankruptcy attorney from Legal Helpers. For your free initial consultation, call at 800-260-1402.

 

Mortgage Scams Change Tune of “Home Sweet Home”

Wednesday, 21 July 2010 09:39

A former Chicago lawyer, Norton Helton, has been convicted on nine charges of bankruptcy fraud, as well as other criminal charges. Helton, working with co-defendants Charles White and Felicia Ford, scammed vulnerable homeowners by offering them false mortgage bailout assistance programs.

From a Chicago Tribune article by Ameet Sachdev, “Under the scheme, homeowners were persuaded to sell their property to ‘investors’ with the expectation they would be allowed to remain in their homes while they paid down debt and repaired their credit through bankruptcy. After a year, clients would have the right to repurchase their homes, if financially able…”

However, at the time of the sale, White, who had owned a real estate company that offered susceptible homeowners a ‘mortgage bailout program’, stripped the former owners of their homes’ equity. He and Ford, a closing agent for a title company that worked closely with White, also obtained over $1.6 million in mortgage financing for investors by preparing fraudulent loan applications with false employment and income information.

According to Assistant U.S. Attorney Joel Hammerman, “’The people who went through bankruptcy did so as part of a bailout program. [They] were told that could improve their credit by going through Chapter 7 [personal bankruptcy].’”

Helton allegedly hid the home transfers from the bankruptcy petition to hide $400,000 of his clients’ assets.

Bankruptcy trustee, Gregg Szilagyi, who testified at the trial described the crime as “’despicable’”. “’They were taking advantage of people at their lowest point, facing foreclosure. They wound up stealing their property.’”

If you find yourself facing foreclosure on your home, filing Chapter 7 or Chapter 13 personal bankruptcy could help you make a fresh start. For experienced, knowledgeable and trustworthy bankruptcy assistance, contact the attorneys from www.legalhelpers.com. Call toll-free 800-260-1402 today for your initial free consultation or come into one of their 100 offices across the country.

Singing the Retirement Blues

Wednesday, 21 July 2010 09:35

“Nearly half of early baby boomers likely won’t live happily ever after because of scant savings.” Approximately 47% of early baby boomers [age 56-62 years] are not expected to have enough money to cover basic living expenses and health care costs during retirement, according to the Employee Benefit Research Institute (EBRI). These figures are, however, an improvement over a 2003 study, in which 59% in the same group were expected to be cash-strapped during their so-called ‘golden years’.

In a Chicago Tribune article by Gail MarksJarvis, a research director for the EBRI states, “’Their [retirees] Social Security alone will not pay for all they need.

Although Gen X members, 36-45 year-olds, may be in slightly better shape as they approach their retirement years, over 44% may run of savings before they run out of breath. The author states that inadequate savings will be a nightmare for those who expect their retirement to be at least as comfortable as their working years. New taxes and/or limits on Social Security pay-outs could very well negatively impact retirees as they enter the second decade of the millennium. (As an aside, we had dinner last night with a friend who is a very bright investment broker, a principle with a well-respected firm in Chicago, who pointed out this exact scenario.)

Middle-and lower-income people, while most at risk for running out of funds mid-retirement, are not alone. Even those boomers earning over $72,500 could be in jeopardy if they need to enter a nursing home early in their retirement; nursing home costs now average $200/day.

The Social Security dilemma? When Social Security was established in the 1930s, life expectancy was about 62 years. The average is now 78 years, with about 40% of women living to the ripe old age of 90! This further emphasizes the need for 401(k) plans, IRAs or other secure retirement savings plans. Following the thud of the stock market in 2007, portfolios remain 27% down, with $5.4 trillion in stock market money gone on paper. Many conservative investors are about back to square one, having made up losses but having made little or no gain.

If you have money to invest, do so carefully (like those mating porcupines), making regular deposits to those 401 (k) and IRA plans.

If your investments have disappeared and you find yourself wallowing in a sea of debt, 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.

 

Texas Rangers Bankruptcy Trustee Pushes Aside Current Attorney

Monday, 19 July 2010 08:22

The Texas Rangers bankruptcy sale has hit nothing but bumps and snags.  The latest update is that the bankruptcy trustee assigned to the case has urged the team to dismiss their current law firm, Weil Gotshal & Manges, for not operating in the team’s best interest. 

Since WGM has received millions from Rangers owner Tom Hicks, the bankruptcy trustee argued that there was no way the law firm could successfully operate in the team’s best interest.  He urged the Rangers to hire new, more objective legal representation, one that didn’t add to their pile of millions the longer the bankruptcy case dragged on.

The creditors have been dragging their heels, waiting for a bigger payout.  They have been holding their breath longer since the first George W. Bush presidential term, as the president walked away from the team in 2000 with a $15 million payout and left creditors tapping their toes with impatience.  During the Rangers’ bankruptcy, creditors have been holding out for a higher bid and a higher chunk of the sale.  The Rangers’ former sports attorney Chuck Greenberg had secured the team a $575 million deal—a generous offer, considering how much debt the new owner will be saddled with, $204 million in liabilities.  The creditors (including Alex Rodriguez, who is still waiting on a $23 million paycheck) rejected this plan, so the Rangers countered with a proposal that the next bidder would be at least $20 million higher.  The creditors had initially put their foot down and said their absolute minimum payoff should be $320 million, while they are met with the melodious sound of crickets at each bankruptcy auction.  Truly, the lack of any viable buyers beyond the $575 million dollar point has signaled to creditors that they may just have to bite the bullet and settle.

The U.S. and the Texas Rangers share a former owner.  While neither a country nor a baseball team is able to stick him for our current debt, we can take resolve in the safe haven of bankruptcy.  Bankruptcy protects everyday consumers from crises like foreclosure and creditor lawsuits.  If you need the sanctity of bankruptcy to protect your assets, please call Legal Helpers for a free consultation at 1-800-260-1402. www.legalhelpers.com

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ABOUT THIS BLOG:

Richard K. Gustafson, II is an attorney with LegalHelpers.com writing on topics related to bankruptcy from the consumer's perspective. To send comments to Rick, email Blog@LegalHelpers.com.


The Bankruptcy Blog from LegalHelpers.com is produced from the law firm of Macey & Aleman, one of the nation's largest bankruptcy firms. A blog does not create an attorney-client relationship and is not a substitute for specific legal advice from an attorney analyzing your specific set of facts. If you are interested in obtaining information about bankruptcy, you are encouraged to call our law firm at 888-743-5787 or complete our online evaluation for a confidential, risk-free analysis!

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