tag:blogger.com,1999:blog-107721302010-04-27T17:48:12.772-07:00Legal Tips & CommentaryThis blog is used to post legal tips for businesses and consumers in California as well as commentaries on issues of interest to clients in the San Diego area. For information about our services, please contact us at (619) 448-2129. This publication is NOT INTENDED TO SERVE AS A SUBSTITUTE FOR LEGAL ADVICE. Please consult with a licensed attorney if you require legal advice. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.Carl Starretthttp://www.blogger.com/profile/06409648966714976610noreply@blogger.comBlogger303125tag:blogger.com,1999:blog-10772130.post-45663403471903107622010-04-27T17:48:00.001-07:002010-04-27T17:48:12.816-07:00This blog has moved<br /> This blog is now located at http://blog.chs-law.com/.<br /> You will be automatically redirected in 30 seconds, or you may click <a href='http://blog.chs-law.com/'>here</a>.<br /><br /> For feed subscribers, please update your feed subscriptions to<br /> http://blog.chs-law.com/feeds/posts/default.<br /> <div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/10772130-4566340347190310762?l=www.chs-law.com%2Fblog.html' alt='' /></div>Carl Starretthttp://www.blogger.com/profile/06409648966714976610noreply@blogger.com0tag:blogger.com,1999:blog-10772130.post-3834194957099174142010-04-27T06:37:00.001-07:002010-04-27T06:37:02.924-07:00test<div align="justify"></div><div align="justify"><i><b>About the Author</b>: </i><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Carl H. </a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Starrett</a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;"> II</a><i> has been a licensed attorney since 1993 and is a member in good standing with the California State Bar, the San Diego County Bar Association and the </i><a href="http://www.nacba.org/"><i>National Association of Consumer Bankruptcy Attorneys</i></a><i>. Mr. Starrett practices in the areas of </i><a href="http://www.chs-law.com/bankruptcy.html" style="font-style: italic;">bankruptcy</a><i>, </i><a href="http://www.chs-law.com/businesslaw.html" style="font-style: italic;">business litigation</a><i>, </i><a href="http://www.chs-law.com/construction.html" style="font-style: italic;">construction</a><i>, </i><a href="http://www.chs-law.com/businessformation.html" style="font-style: italic;">corporate planning</a><i> and </i><a href="http://www.chs-law.com/debtcollection.html"><i>debt collection</i></a><i>.</i></div><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/10772130-383419495709917414?l=www.chs-law.com%2Fblog.html' alt='' /></div>Carl Starretthttp://www.blogger.com/profile/06409648966714976610noreply@blogger.com0tag:blogger.com,1999:blog-10772130.post-73897791571139807162010-04-18T19:01:00.000-07:002010-04-26T22:17:36.165-07:00Choosing The Right Bankruptcy Attorney For You<div align="justify" style="font-family: Arial,Helvetica,sans-serif;"><br /><span style="font-size: small;">Finding the right bankruptcy attorney for you is not an easy process. In the last several months, I have taken phone calls from 2 debtors that hired out-of-area attorneys only to be abandoned in the middle of complex Chapter 13 bankruptcy cases. Both paid lots of money up front only to be left without an attorney at important moments in their cases. The following suggestions might help you select the right bankruptcy attorney for you.</span><br /><br /><span style="font-size: small;"><b>Choose a member of the National Association of Consumer Bankruptcy Attorneys</b>. NACBA is the only national organization dedicated to serving the needs of consumer bankruptcy attorneys and protecting the rights of consumer debtors in bankruptcy. Although being a member of NACBA does not automatically make someone a good bankruptcy attorney, I know how committed the organization is to making its members better attorneys and I have met a number a great fellow bankruptcy attorneys through NACBA.</span><br /><br /><span style="font-size: small;"><b>Go local</b>. Although bankruptcy is a federal law, practice and procedures still vary by jurisdiction. Practicing bankruptcy in San Diego is much different than practicing in Los Angeles or Orange County. A local attorney that is familiar with the local court procedures will also be more accessible and will not have to bill for travel time to attend hearings on your case.</span><br /><br /><span style="font-size: small;"><b>Don’t shop based on price alone</b>. Would you select a surgeon based primarily on the cost of the surgery? Certainly not and selecting a bankruptcy to diagnose and treat your financial woes should be treated with the same level of seriousness. An attorney’s fee is based on their experience as well as the time devoted to the case. If your consultation is rushed and you only receive vague answers to your questions, you can expect the attorney’s time devoted to your case to be rushed as well.</span><br /><br /><span style="font-size: small;"><b>Recommendations</b>. You would be surprised how many of your friends, co-workers and employers have filed for bankruptcy. Ask them about their experiences and if they were happy with their attorney. Business owners or professionals such as bankers, ministers, doctors, social workers and teachers might be able to give you the name of a good lawyer.</span><br /><br /><span style="font-size: small;">If you live in Southern California and would like to talk to me about your debt problems, please call me today at (619) 448-2129.</span><br /><span style="font-size: small;"><br /></span></div><div align="justify" style="font-family: Arial,Helvetica,sans-serif;"><span style="font-size: small;"><i><b>About the Author</b>: </i><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Carl H. </a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Starrett</a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;"> II</a><i> has been a licensed attorney since 1993 and is a member in good standing with the California State Bar, the San Diego County Bar Association and the </i><a href="http://www.nacba.org/"><i>National Association of Consumer Bankruptcy Attorneys</i></a><i>. Mr. Starrett practices in the areas of </i><a href="http://www.chs-law.com/bankruptcy.html" style="font-style: italic;">bankruptcy</a><i>, </i><a href="http://www.chs-law.com/businesslaw.html" style="font-style: italic;">business litigation</a><i>, </i><a href="http://www.chs-law.com/construction.html" style="font-style: italic;">construction</a><i>, </i><a href="http://www.chs-law.com/businessformation.html" style="font-style: italic;">corporate planning</a><i> and </i><a href="http://www.chs-law.com/debtcollection.html"><i>debt collection</i></a><i>.</i></span></div><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/10772130-7389779157113980716?l=www.chs-law.com%2Fblog.html' alt='' /></div>Carl Starretthttp://www.blogger.com/profile/06409648966714976610noreply@blogger.com0tag:blogger.com,1999:blog-10772130.post-1450766766809796132010-03-21T11:21:00.000-07:002010-03-21T11:21:25.286-07:00Three Things I've Learned<div align="justify" style="font-family: Arial,Helvetica,sans-serif;"><br /><span style="font-size: small;">My wife challenged me to come up with a list 3 things that I have learned from my profession that everyone should know. Although bankruptcy is my primary area of practice, I have been fortunate in my career to have had broad exposure to many areas of law. I have the advantage of learning from my own mistakes as well as the mistakes of others and getting paid to help others fix those mistakes.</span><br /><span style="font-size: small;"><br />But if I had the opportunity to share 3 things with someone about my profession and only those 3 things, here is what I would tell them:</span><ul><li><span style="font-size: small;"><b>Estate Planning</b>. At a bare minimum, everybody should at least have a will, a power of attorney for health care and a financial power of attorney. Some people need advanced estate planning like a living trust to avoid unnecessary taxes. But estate planning is more than trusts and wills. Does your family know your burial wishes? Who will handle your financial and medical decisions when you cannot? Who would get custody of your children? Why would you even burden your family with these decisions when you can decide those issues now?</span> </li></ul><ul><li><b>Proper Budgeting and Financial Planning</b>. In my experience, most of my clients really have no idea how much money they actually spend on even the most basic of necessities such as food and clothing. If you can become the master of what you spend, then you can plan properly to save for retirement, vacation and unexpected surprises.</li></ul><ul><li><b>Having the Proper Insurance</b>. You can rarely go wrong with having more insurance. You should have life insurance to provide for your family if you are suddenly gone. You should have health insurance to prevent catastrophic medicals bills. You should have homeowner’s or renter’s insurance to protect your belongings as well as car insurance that does more than meet the statutory minimum policies set forth in the law. I once handled a case where a young driver caused an accident which caused the victim to have $250,000 in medical bills and he only had $15,000 in coverage. That month, I increased my own liability coverage by 500% and added a $1 million umbrella policy. The total bill for this additional coverage was only an extra $50 per month.</li></ul><span style="font-size: small;">Perhaps the best piece of advice I can give it regarding your legal needs is that you should try not to do it alone. A piece of software cannot replace personal service or years of experience that a licensed professional offers. Trying to handle your own legal matters without assistance is a bit like trying to perform surgery on yourself without the help of a doctor. Things can go very badly if you make a mistake and there usually is not a second chance to correct it.</span><br /><span style="font-size: small;"><br />If you are in Southern California and are experiencing debt problems or need guidance in a legal issue, please call me at (619) 448-2129.</span><br /><span style="font-size: small;"><br /></span></div><div align="justify" style="font-family: Arial,Helvetica,sans-serif;"><span style="font-size: small;"><i><b>About the Author</b>: </i><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Carl H. </a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Starrett</a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;"> II</a><i> has been a licensed attorney since 1993 and is a member in good standing with the California State Bar, the San Diego County Bar Association and the </i><a href="http://www.nacba.org/"><i>National Association of Consumer Bankruptcy Attorneys</i></a><i>. Mr. Starrett practices in the areas of </i><a href="http://www.chs-law.com/bankruptcy.html" style="font-style: italic;">bankruptcy</a><i>, </i><a href="http://www.chs-law.com/businesslaw.html" style="font-style: italic;">business litigation</a><i>, </i><a href="http://www.chs-law.com/construction.html" style="font-style: italic;">construction</a><i>, </i><a href="http://www.chs-law.com/businessformation.html" style="font-style: italic;">corporate planning</a><i> and </i><a href="http://www.chs-law.com/debtcollection.html"><i>debt collection</i></a><i>.</i></span></div><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/10772130-145076676680979613?l=www.chs-law.com%2Fblog.html' alt='' /></div>Carl Starretthttp://www.blogger.com/profile/06409648966714976610noreply@blogger.com1tag:blogger.com,1999:blog-10772130.post-17733413211980946342010-03-07T17:33:00.000-08:002010-03-07T17:37:12.003-08:00Maybe It Is Time To Let This House Go<div align="justify" style="font-family: Arial,Helvetica,sans-serif;"><br /><span style="font-size: small;">As a bankruptcy attorney, I find that one of biggest concerns that debtors have is about their assets: "Can I keep my house?" "Can I keep my car?". In most cases, I can give my clients a clear idea of what property they can keep and what they may need to sacrifice in a bankruptcy proceeding. However, a more difficult question is whether the debtor <i><b>should</b></i> keep the property.</span><br /><br /><span style="font-size: small;">Although it is widely believed that home ownership is more beneficial than renting, this is not always true. The debtor must ultimately look at both the financial and the emotional factors to decide if a home is worth keeping.<br /><br />On the financial side, home ownership usually <i><b>is</b></i> more financially beneficial then renting. As long as your mortgage balance is smaller than the price of your home, mortgage interest is fully deductible on your tax return. However, the financial benefits start to disappear if the debtor owes more than the house is worth. Renters also do not pay property taxes or home maintenance, but they do have the risk of higher rent payments at the end of their lease.<br /><br />Even with a house that is upside down, there are emotional considerations that go beyond the savings a renter might realize: (1) pride of ownership; (2) stability; and (3) quality of life. A family with young children that has lived in the same neighborhood for 10 years may have more of an emotional attachment to the home than a couple whose children have all grown and moved out or a family with children too young to have memories of the house.<br /><br />If you are considering bankruptcy, you need to look at all of the financial and emotional factors together. Owning a home can be a rewarding experience but it can also be a financial millstone that is keeping you from getting a fresh start.<br /><br />If you are in Southern California and are struggling with home ownership and heavy debt burdens, call me today (619) 448-2129 for a free consultation and a caring voice.</span><br /><br /><span style="font-size: small;">If you are in Southern California and are struggling with home ownership and heavy burdens, call me today (619) 448-2129 for a free consultation and a caring voice.</span><br /><span style="font-size: small;"><br /></span></div><div align="justify" style="font-family: Arial,Helvetica,sans-serif;"><span style="font-size: small;"><i><b>About the Author</b>: </i><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Carl H. </a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Starrett</a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;"> II</a><i> has been a licensed attorney since 1993 and is a member in good standing with the California State Bar, the San Diego County Bar Association and the </i><a href="http://www.nacba.org/"><i>National Association of Consumer Bankruptcy Attorneys</i></a><i>. Mr. Starrett practices in the areas of </i><a href="http://www.chs-law.com/bankruptcy.html" style="font-style: italic;">bankruptcy</a><i>, </i><a href="http://www.chs-law.com/businesslaw.html" style="font-style: italic;">business litigation</a><i>, </i><a href="http://www.chs-law.com/construction.html" style="font-style: italic;">construction</a><i>, </i><a href="http://www.chs-law.com/businessformation.html" style="font-style: italic;">corporate planning</a><i> and </i><a href="http://www.chs-law.com/debtcollection.html"><i>debt collection</i></a><i>.</i></span></div><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/10772130-1773341321198094634?l=www.chs-law.com%2Fblog.html' alt='' /></div>Carl Starretthttp://www.blogger.com/profile/06409648966714976610noreply@blogger.com0tag:blogger.com,1999:blog-10772130.post-90280735581647150762010-02-13T19:55:00.000-08:002010-04-26T13:07:22.997-07:00The Problem With Priceline.com and Extended Stay America<div align="justify"><br />If you are ever planning a trip to Anaheim or a visit to Disneyland and are considering the <a href="http://www.extendedstayhotels.com/">ExtendedStayAmerica</a> hotel, do yourself a favor and find another place to stay. The particular hotel to avoid is located at 1742 S. Clementine Street, Anaheim, CA 92802. The facility is horrible and the service was even worse.<br /><br />When booking a weekend for my family to visit Disneyland, I tried out <a href="http://priceline.com/">Priceline.com</a> to check for decent prices. I booked what was supposed to be a non-smoking, one bedroom suite. When we got to the room, it was a studio with only one bed and smelled horrible. I went right back down to lobby to make arrangements to get checked out and into another hotel. After I got the "you have to get your money back from Priceline" speech from Vern, the front desk clerk, I proceeded to wait on hold with Priceline to get confirmation of the cancellation.<br /><br />After 45 minutes on hold, I finally got Priceline to refund my money. I had given my debit card to Vern for incidentals, but he absolutely refused to give me a check out receipt or anything else in writing to confirm that I had checked out and did not owe any charges beyond what had already be debited from my checking account by Priceline. According to Vern, the manager was gone for the weekend and he could not help me.<br /><br />I would suggest to Nina Valencia, the hotel manager, the she needs to give her employees a refresher course in customer service. Refusing to give me written assurances that I would not be charged any more money was absolutely ridiculous. When I called the main corporate number for ExtendedStayAmerica, they were equally perplexed at Vern's refusal to provide the requested information. They also could not help me.<br /><br />Although I am a big fan of William Shatner and Star Trek, I doubt very much that I will be booking travel with Priceline.com on the near future and ExtendedStayAmerica will never get any business from me.<br /><br /></div><div align="justify"><i><b>About the Author</b>: </i><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Carl H. </a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Starrett</a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;"> II</a><i> has been a licensed attorney since 1993 and is a member in good standing with the California State Bar, the San Diego County Bar Association and the </i><a href="http://www.nacba.org/"><i>National Association of Consumer Bankruptcy Attorneys</i></a><i>. Mr. Starrett practices in the areas of </i><a href="http://www.chs-law.com/bankruptcy.html" style="font-style: italic;">bankruptcy</a><i>, </i><a href="http://www.chs-law.com/businesslaw.html" style="font-style: italic;">business litigation</a><i>, </i><a href="http://www.chs-law.com/construction.html" style="font-style: italic;">construction</a><i>, </i><a href="http://www.chs-law.com/businessformation.html" style="font-style: italic;">corporate planning</a><i> and </i><a href="http://www.chs-law.com/debtcollection.html"><i>debt collection</i></a><i>.</i></div><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/10772130-9028073558164715076?l=www.chs-law.com%2Fblog.html' alt='' /></div>Carl Starretthttp://www.blogger.com/profile/06409648966714976610noreply@blogger.com1tag:blogger.com,1999:blog-10772130.post-39219824132407127422010-01-05T22:37:00.000-08:002010-01-05T22:42:55.009-08:007 Signs That It May Be Time To Close A Business<div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><span style="font-size: small;"> </span><br /><div style="text-align: justify;"><span style="font-size: small;">I recently wrote a 2-part series on strategies for California business owners to stay in business while filing for Chapter 7. However, saving a business isn’t always possible. Here are some of the signs that I look for when telling a client that it may be time to close their business.</span><br /></div></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><ol><li><b>The professionals say you should close. </b>Many business owners have an emotional attachment to their business and do not wish to be an employee of someone else again or perhaps they are afraid to admit that their business is failed. Some businesses are like men that won’t stop and asked directions: advice from a trusted advisor such as a CPA or attorney that a business is in trouble is not given lightly.</li><li><b>You aren’t making as much money as you thought.</b> An important factor that business owners need to remember is the value of their time. One way to measure how much money a business owner is making would be to calculate the net profit and divide it by the number of hours they work. Many owners may find that they would make more money working as a cashier at the local 7-11.</li><li><b>You are always struggling to pay your quarterly taxes.</b> A common problem for business owners is the inability to make timely payments on their quarterly taxes. A high gross income does not guarantee a profitable business. If you are delaying payment of taxes for cash flow reasons, your business is in trouble.</li><li><b>Things will get better next month.</b> Some business owners insist that they only need a good month to make up for past loses. Counting on increased business without a plan of action to grow revenues is not unlike playing the lottery: anything is possible, but not very likely.</li><li><b>The future for the industry looks bleak.</b> In the past year or so, I have handled a number of bankruptcy cases for people in the printing business. Businesses are advertising less, buying fewer business cards and printing their own letterhead. If a particular industry is shrinking, it may be time to get out.<br /></li><li><b>The business isn’t worth much.</b> Like the illusion of short sales in real estate, some business owners greatly over value their businesses. An experienced business broker can give you a very realistic opinion on the value of the businesses. Declining business values maybe a sign that it is time to get out. </li><li><b>You have no retirement plans.</b> If a business owner is too caught up in the day to day operations of the business to be able to plan for retirement, then a change may be necessary.<span style="font-size: small;"> </span></li></ol><span style="font-size: small;">If you recognize any of these warning signs, it may be time to schedule a consultation with a bankruptcy attorney and explore your options. If you are in Southern California, call me now at (619) 448-2129 for a free consultation.</span><span style="font-size: small;"><i><b> </b></i></span><br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><span style="font-size: small;"><i><b>About the Author</b>: </i><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Carl H. </a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Starrett</a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;"> II</a><i> has been a licensed attorney since 1993 and is a member in good standing with the California State Bar, the San Diego County Bar Association and the </i><a href="http://www.nacba.org/"><i>National Association of Consumer Bankruptcy Attorneys</i></a><i>. Mr. Starrett practices in the areas of </i><a href="http://www.chs-law.com/bankruptcy.html" style="font-style: italic;">bankruptcy</a><i>, </i><a href="http://www.chs-law.com/businesslaw.html" style="font-style: italic;">business litigation</a><i>, </i><a href="http://www.chs-law.com/construction.html" style="font-style: italic;">construction</a><i>, </i><a href="http://www.chs-law.com/businessformation.html" style="font-style: italic;">corporate planning</a><i> and </i><a href="http://www.chs-law.com/debtcollection.html"><i>debt collection</i></a><i>.</i></span><br /></div><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/10772130-3921982413240712742?l=www.chs-law.com%2Fblog.html' alt='' /></div>Carl Starretthttp://www.blogger.com/profile/06409648966714976610noreply@blogger.com1tag:blogger.com,1999:blog-10772130.post-67217958351747086772010-01-04T14:53:00.000-08:002010-04-26T13:04:19.092-07:00Why Dave Ramsey is Wrong About Bankruptcy<div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><br /><span style="font-size: small;">"I didn't realize how much stress I was under until I filed with you. I guess I had just gotten used to the feeling. My resolution is to think of need versus want and to save money each month for the unexpected." That is what a client recently told me after receiving a discharge in a Chapter 7 bankruptcy.</span><br /><br /><span style="font-size: small;">Dave Ramsey describes bankruptcy as a "gut-wrenching, life-changing event that causes lifelong damage." He also goes on to claim that bankruptcy "can devastate your job, destroy your marriage and steal your peace of mind." This type of Chicken Little mentality is unwarranted and may scare consumers away from becoming fully informed about <i><b>all</b></i> of their debt relief options.</span><br /><br /><span style="font-size: small;">Mr. Ramsey's message resonates particularly well with conservative and evangelical Christians. In my practice, I've come across far to many Christians who feel like they have failed in the eyes of God if they do not repay their debts. I devoted an <a href="http://www.chs-law.com/2008/07/should-christians-file-for-bankruptcy.html">entire blog entry</a> to the topic to help those clients understand what the Bible really says about bankruptcy.</span><br /><br /><span style="font-size: small;">Mr. Ramsey's negative experience with bankruptcy is atypical. In my entire career, I have not had a single client express regret about filing for bankruptcy. I have seen marriages healed as a result of the stress relief achieved in bankruptcy. I have seen some clients improve their credit scores by as much 150 points because the individual no longer has any debt and their bad payment history will disappear over time.</span><br /><br /><span style="font-size: small;">Mr. Ramsey is correct that bankruptcy is not to be taken lightly. But for many people, it is the only away to get out from under crushing debt loads, lawsuits and creditor harassment. That is not say say that bankruptcy is without consequences. Yes, it will stay on your credit report for 10 years and it is only a temporary fix unless the debtor is willing to make the necessary life changes to avoid future debt problems. But for the vast majority of people who contact me, bankruptcy is truly the only option available.</span><br /><span style="font-size: small;"><br /></span><span style="font-size: small;">The reality for my practice is that most of the people who come to see me have already done away with the toys and the frivolous spending. I’ve seen too many clients suffering heart problems, insomnia, depression and other stress related health issues by trying to avoid the inevitable for too long.<br /> </span><br /><span style="font-size: small;">Sure, you can get a second job if you are $40,000 in the hole and you might have that debt paid off in a few years. But what do you have? You filled a $40,000 hole and several years of time spent at a second job, which means lost evenings with your family and weekends of kids events.<br /> </span><br /><span style="font-size: small;">Or you might consider a Chapter 7, which would be over in about 4 months in most cases, learn to live without credit cards and get the fresh start now. For every Dave Ramsey who had a bad experience in bankruptcy, I can point you to dozens of satisfied clients who have benefited greatly from the fresh start provided by a bankruptcy discharge.</span><br /><br /><span style="font-size: small;">Dave Ramsey does offer value assistance in pointing people down a path of financial responsbility and I do not question those services. In fact, debtors who wish to avoid bankruptcy in the future could learn a few things from Mr. Ramsey. However, nobody should decide simply on my word or Mr. Ramsey's word alone. Cut through the hype and scare tactics and explore for yourself what is the best option for you and your family. After all, no decision feels better after you prayer, learn and investigate your options.</span><br /><br /><span style="font-size: small;"><br /></span></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><span style="font-size: small;"><i><b>About the Author</b>: </i><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Carl H. </a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Starrett</a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;"> II</a><i> has been a licensed attorney since 1993 and is a member in good standing with the California State Bar, the San Diego County Bar Association and the </i><a href="http://www.nacba.org/"><i>National Association of Consumer Bankruptcy Attorneys</i></a><i>. Mr. Starrett practices in the areas of </i><a href="http://www.chs-law.com/bankruptcy.html" style="font-style: italic;">bankruptcy</a><i>, </i><a href="http://www.chs-law.com/businesslaw.html" style="font-style: italic;">business litigation</a><i>, </i><a href="http://www.chs-law.com/construction.html" style="font-style: italic;">construction</a><i>, </i><a href="http://www.chs-law.com/businessformation.html" style="font-style: italic;">corporate planning</a><i> and </i><a href="http://www.chs-law.com/debtcollection.html"><i>debt collection</i></a><i>.</i></span></div><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/10772130-6721795835174708677?l=www.chs-law.com%2Fblog.html' alt='' /></div>Carl Starretthttp://www.blogger.com/profile/06409648966714976610noreply@blogger.com0tag:blogger.com,1999:blog-10772130.post-63115537747926729702009-12-08T14:56:00.000-08:002010-01-19T10:50:16.726-08:00Phone Numbers Used By Phony Debt Collectors<div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><br /><span style="font-size: small;">In recent weeks, I have written about phony debt collectors using illegal and abusive threats to collect on payday loans. Click <a href="http://www.chs-law.com/2009/11/beware-of-phony-payday-loan-debt.html">here</a> to read my first article and <a href="http://www.chs-law.com/2009/12/no-cashnet-cannot-throw-you-in-jail-for.html">here</a> to read my second article. My friend Steve Rhode also dug a little deeper and and wrote <a href="http://getoutofdebt.org/14950/frightening-calls-from-fake-debt-collectors-threaten-people-with-jail-for-payday-loans-its-a-scam">this article</a> that reveals some very interesting information about how these places operate.</span><br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><span style="font-size: small;">The phony debt collectors often claim to be attorneys and begin by threatening debtors with jail time for nonpayment of payday loans. The scam artists presumably have some level of success with their scare tactics based on the number of calls that I receive about this scam. Below is a list of phone numbers known to be used by the scam artists:</span><span style="font-size: small;"></span><br /><span style="font-size: small;"></span><br /></div><ul style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><li><span style="font-size: small;">201-221-3060 <br /></span></li><li><span style="font-size: small;">213-221-1002</span></li><li><span style="font-size: small;">213-286-0210 </span></li><li><span style="font-size: small;">213-286-2016 </span></li><li><span style="font-size: small;">213-550-4189 </span></li><li><span style="font-size: small;">213-995-3046 </span></li><li><span style="font-size: small;">310-362-4305 </span></li><li><span style="font-size: small;">310-362-4319 </span></li><li><span style="font-size: small;">310-362-9386 </span></li><li><span style="font-size: small;">313-332-1091 </span></li><li><span style="font-size: small;">343-729-0397 </span></li><li><span style="font-size: small;">407-506-0424 </span></li><li><span style="font-size: small;">408-317-0831 </span></li><li><span style="font-size: small;">408-355-9951 </span></li><li><span style="font-size: small;">415-223-4108 </span></li><li><span style="font-size: small;">415-880-5599 </span></li><li><span style="font-size: small;">496-900-0000 </span></li><li><span style="font-size: small;">619-342-0094 </span></li><li><span style="font-size: small;">714-333-2945 </span></li><li><span style="font-size: small;">714-333-2951 </span></li><li><span style="font-size: small;">714-400-0563 </span></li><li><span style="font-size: small;">714-409-0208 </span></li><li><span style="font-size: small;">714-409-0250 </span></li><li><span style="font-size: small;">714-845-0766 (FAX)</span></li><li><span style="font-size: small;">760-300-4000 <br /></span></li><li><span style="font-size: small;">718-831-7157 </span></li><li><span style="font-size: small;">818-936-4699 </span></li><li><span style="font-size: small;">904-425-9141 </span></li><li><span style="font-size: small;">941-961-8518 </span></li><li><span style="font-size: small;">949-743-1049 </span></li><li><span style="font-size: small;">951-707-4047</span></li><li><span style="font-size: small;">973-200-6686 </span></li></ul><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><span style="font-size: small;">If you are contacted by one of these scam artists, please leave comment below with the phone number they used so I can keep this list up to date.<i><b> </b></i></span><br /><br /><span style="font-size: small;"><i><b>About the Author</b>: </i><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Carl H. </a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Starrett</a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;"> II</a><i> has been a licensed attorney since 1993 and is a member in good standing with the California State Bar, the San Diego County Bar Association and the </i><a href="http://www.nacba.org/"><i>National Association of Consumer Bankruptcy Attorneys</i></a><i>. Mr. Starrett practices in the areas of </i><a href="http://www.chs-law.com/bankruptcy.html" style="font-style: italic;">bankruptcy</a><i>, </i><a href="http://www.chs-law.com/businesslaw.html" style="font-style: italic;">business litigation</a><i>, </i><a href="http://www.chs-law.com/construction.html" style="font-style: italic;">construction</a><i>, </i><a href="http://www.chs-law.com/businessformation.html" style="font-style: italic;">corporate planning</a><i> and </i><a href="http://www.chs-law.com/debtcollection.html"><i>debt collection</i></a><i>.</i></span><br /></div><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/10772130-6311553774792672970?l=www.chs-law.com%2Fblog.html' alt='' /></div>Carl Starretthttp://www.blogger.com/profile/06409648966714976610noreply@blogger.com0tag:blogger.com,1999:blog-10772130.post-44416703978749904462009-12-08T13:26:00.000-08:002009-12-08T13:33:33.780-08:00Will Congress Resurrect Judicial Loan Modification?<div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><span style="font-size: small;">In January 2009, I was in the unusual position of asking my fellow Republicans to support legislation sponsored by the Democrats that would have given bankruptcy judges the capability of modifying mortgages in a Chapter 13 bankruptcy. Click <a href="http://www.chs-law.com/2009/02/why-republicans-should-support-judicial.html">here</a> to read my original article. Unfortunately, this legislation failed to pass in the Senate. I have now received word that the concept of judicial loan modification in Bankruptcy Court could be resurrected.</span><br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><span style="font-size: small;"><br />Congress will soon be considering amendments to H.R. 4173, the <a href="http://financialservices.house.gov/Key_Issues/Financial_Regulatory_Reform/Financial_Regulatory_Reform.html">Wall Street Reform and Consumer Protection Act</a>, that would give consumers a powerful negotiating tool to use when trying to negotiate loan modifications with intransigent lenders. I am once again urging my fellow Republicans to set aside outdated perceptions of irresponsible borrowers and support this legislation.<br /> </span><br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><span style="font-size: small;">President Obama's loan modification program, commonly known as Home Affordable Modification Program or HAMP, has been a dismal failure. As of September 2009, only about 1700 homeowners had received "permanent" loan modifications under the HAMP program. As any bankruptcy attorney can tell you, experience has shown that lenders have very little motivation to modify loans. Consumers have seen their 90-day "trial payment periods" under HAMP drag on for months with no sign of a permanent loan modification offer in sight.<br /> </span><br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><span style="font-size: small;">The threat of an involuntary loan modification in bankruptcy court may be the only way to force lenders and loan servicers to take loan modifications seriously and to stop dragging their collective heals in offering reasonable solutions.<br /> </span><br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><span style="font-size: small;">I am urging all of my readers, colleagues and clients to contact their representatives in Congress by going to <a href="http://clerk.house.gov/member_info/mcapdir.html">http://clerk.house.gov/member_info/mcapdir.html</a> and urging them to support amendments to this bill that would give bankruptcy judges the power to modify residential mortgage loans.<br /> </span><br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><span style="font-size: small;">With 3 million new foreclosures expected in 2010, the ongoing foreclosure crisis will continue to cause a rise in bankruptcy filings and undermine any hope of an economic recovery.</span><br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><span style="font-size: small;"><br />Unlike the expensive bailouts provided to the big lenders, this change to the Bankruptcy Code will not cost taxpayers one penny and will help stabilize the economy. The voluntary loan modification programs simply are not working.</span><br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><span style="font-size: small;"><br />So if the Republican Party wants to stop looking like it is out of touch with reality, supporting this legislation might be a good first step in fixing the public's perception of the party.</span><br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><span style="font-size: small;"><i><b>About the Author</b>: </i><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Carl H. </a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Starrett</a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;"> II</a><i> has been a licensed attorney since 1993 and is a member in good standing with the California State Bar, the San Diego County Bar Association and the </i><a href="http://www.nacba.org/"><i>National Association of Consumer Bankruptcy Attorneys</i></a><i>. Mr. Starrett practices in the areas of </i><a href="http://www.chs-law.com/bankruptcy.html" style="font-style: italic;">bankruptcy</a><i>, </i><a href="http://www.chs-law.com/businesslaw.html" style="font-style: italic;">business litigation</a><i>, </i><a href="http://www.chs-law.com/construction.html" style="font-style: italic;">construction</a><i>, </i><a href="http://www.chs-law.com/businessformation.html" style="font-style: italic;">corporate planning</a><i> and </i><a href="http://www.chs-law.com/debtcollection.html"><i>debt collection</i></a><i>.</i></span><br /></div><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/10772130-4441670397874990446?l=www.chs-law.com%2Fblog.html' alt='' /></div>Carl Starretthttp://www.blogger.com/profile/06409648966714976610noreply@blogger.com0tag:blogger.com,1999:blog-10772130.post-74610016325538568222009-12-04T09:19:00.000-08:002009-12-04T16:46:51.155-08:00No, CashNet Cannot Throw You In Jail for Defaulting on a Loan<div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><br /><span style="font-size: small;">After I wrote a <a href="http://www.chs-law.com/2009/11/beware-of-phony-payday-loan-debt.html">recent article</a> about phony debt collectors pretending to be attorneys, I started receiving phone calls from people around the country that a collection agency for CashNetUSA was impersonating me and trying to collect debts. I am receiving disturbing reports that this collection agency is illegally threatening borrowers with jail time for not repaying loans.</span><br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><span style="font-size: small;">I filed a complaint with the Better Business Bureau and <a href="https://www.cashnetusa.com/">CashNetUSA</a> has not responded to my request for assistance. I also contacted the El Cajon Police and the San Diego officer of the F.B.I., but they do not feel that any crimes have been committed.</span><br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><span style="font-size: small;">The <a href="http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm">Federal Fair Debt Collection Practices Act</a> specifically prohibits debt collectors of consumer debts from threatening a debtor with jail time for failing to repay debts. Debt collectors also may not falsely claim that they are attorneys or government representatives.</span><br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><span style="font-size: small;">If any collection agency for CashNetUSA contacts you and pretends to be an attorney collecting a debt, I recommend taking the following steps:</span><br /></div><ul style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><li><span style="font-size: small;">Go to <a href="http://www.annualcreditreport.com/">www.annualcreditreport.com</a> and get a copy of your credit report. Dispute any inaccurate information.</span></li><li><span style="font-size: small;">Put a preliminary fraud alert on your credit report. The collection agency for CashNetUSA seems to have loads of personal information about people and you could be at risk for identity theft.</span></li><li><span style="font-size: small;">Contact your local police. A debt collector impersonating and attorney might be committing a crime.</span></li><li><span style="font-size: small;">Consult an attorney. You may have a claim for damages against the collection agency under the Fair Debt Collection Practices Act and you may also have a claim for damages against CashNetUSA under the laws of your state.</span></li></ul><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><span style="font-size: small;">If you live in Southern California and a collection agency for CashNetUSA or any other collection agency has been has been harassing you, please call us today for assistance at (619) 448-2129.</span><br /><br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><span style="font-size: small;"><i><b>About the Author</b>: </i><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Carl H. </a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Starrett</a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;"> II</a><i> has been a licensed attorney since 1993 and is a member in good standing with the California State Bar, the San Diego County Bar Association and the </i><a href="http://www.nacba.org/"><i>National Association of Consumer Bankruptcy Attorneys</i></a><i>. Mr. Starrett practices in the areas of </i><a href="http://www.chs-law.com/bankruptcy.html" style="font-style: italic;">bankruptcy</a><i>, </i><a href="http://www.chs-law.com/businesslaw.html" style="font-style: italic;">business litigation</a><i>, </i><a href="http://www.chs-law.com/construction.html" style="font-style: italic;">construction</a><i>, </i><a href="http://www.chs-law.com/businessformation.html" style="font-style: italic;">corporate planning</a><i> and </i><a href="http://www.chs-law.com/debtcollection.html"><i>debt collection</i></a><i>.</i></span><br /></div><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/10772130-7461001632553856822?l=www.chs-law.com%2Fblog.html' alt='' /></div>Carl Starretthttp://www.blogger.com/profile/06409648966714976610noreply@blogger.com1tag:blogger.com,1999:blog-10772130.post-30867291525203604312009-11-17T12:51:00.000-08:002009-11-17T12:54:48.363-08:00Beware of Phony Payday Loan Debt Collectors<div align="justify">In August 2009, the Better Business Bureau issued a <a href="http://www.24-7pressrelease.com/press-release/bbb-issues-nationwide-alert-about-phony-debt-collectors-harassing-consumers-111431.php">nationwide alert</a> warning consumers about phony debt collectors threatening to arrest them for not repaying a payday loan. I decided to investigate a little further after the daughter of a bankruptcy client called after receiving one of these phone calls.<br /><br />The phony debt collector called my client's daughter from the following phone number: (323) 332-1091. The person answering the phone sounded like he was from an overseas call center and claimed to be an attorney named Steve Austin with the "Riverside County Criminal Defense Office". When I asked for his bar number and street address, "Mr. Austin" stated that his bar number was confidential and the address he gave me was in Los Angeles. Riverside is in a completely different county than Los Angeles, which was another warning sign that this was a scam.<br /><br />"Mr. Austin" claims to be any attorney, but he is not admitted to practice law in California. He does claim, however, to be admitted to practice law in Texas and Florida. The claims of the caller do not withstand scrutiny.<br /><br />It is not uncommon for debt collectors and scammers to use false information or make illegal threats in order to collect a debt. If you are in Southern California and have been a victim of a phony or a harassing debt collector, please call me now at (619) 448-2129 to get information about dealing with these people to help put your mind at ease. <br /><br /></div><div align="justify"><i><b>About the Author</b>: </i><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Carl H. </a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Starrett</a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;"> II</a><i> has been a licensed attorney since 1993 and is a member in good standing with the California State Bar, the San Diego County Bar Association and the </i><a href="http://www.nacba.org/"><i>National Association of Consumer Bankruptcy Attorneys</i></a><i>. Mr. Starrett practices in the areas of </i><a href="http://www.chs-law.com/bankruptcy.html" style="font-style: italic;">bankruptcy</a><i>, </i><a href="http://www.chs-law.com/businesslaw.html" style="font-style: italic;">business litigation</a><i>, </i><a href="http://www.chs-law.com/construction.html" style="font-style: italic;">construction</a><i>, </i><a href="http://www.chs-law.com/businessformation.html" style="font-style: italic;">corporate planning</a><i> and </i><a href="http://www.chs-law.com/debtcollection.html"><i>debt collection</i></a><i>.</i><br /></div><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/10772130-3086729152520360431?l=www.chs-law.com%2Fblog.html' alt='' /></div>Carl Starretthttp://www.blogger.com/profile/06409648966714976610noreply@blogger.com1tag:blogger.com,1999:blog-10772130.post-64034631153046905262009-10-21T15:00:00.000-07:002009-10-21T15:13:57.385-07:00Paychecks for California Employees Shrinking For The Rest of 2009<div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><br /><span style="font-size: small;"><a href="http://www.paychex.com/index.aspx">Paychex</a>, a nationally known payroll service provider, is reporting that California employers must increase withholding for state taxes as a result of the recently passed California state budget. The new withholding tables become effective on November 1, 2009.</span><br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><br /><span style="font-size: small;">The new withholding tables are designed to accelerate withholding for the remainder of 2009 by requiring employers to increase the amount of state income tax withheld from employee paychecks by 10%. The new tables will be in effect from November 1 through December 31, 2009 only.</span><br /><br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><span style="font-size: small;">If you have any questions or need additional information, please call us now at (619) 448-2129<br /></span><br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><span style="font-size: small;"><i><b>About the Author</b>: </i><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Carl H. </a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Starrett</a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;"> II</a><i> has been a licensed attorney since 1993 and is a member in good standing with the California State Bar, the San Diego County Bar Association and the </i><a href="http://www.nacba.org/"><i>National Association of Consumer Bankruptcy Attorneys</i></a><i>. Mr. Starrett practices in the areas of </i><a href="http://www.chs-law.com/bankruptcy.html" style="font-style: italic;">bankruptcy</a><i>, </i><a href="http://www.chs-law.com/businesslaw.html" style="font-style: italic;">business litigation</a><i>, </i><a href="http://www.chs-law.com/construction.html" style="font-style: italic;">construction</a><i>, </i><a href="http://www.chs-law.com/businessformation.html" style="font-style: italic;">corporate planning</a><i> and </i><a href="http://www.chs-law.com/debtcollection.html"><i>debt collection</i></a><i>.</i></span><br /></div><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/10772130-6403463115304690526?l=www.chs-law.com%2Fblog.html' alt='' /></div>Carl Starretthttp://www.blogger.com/profile/06409648966714976610noreply@blogger.com0tag:blogger.com,1999:blog-10772130.post-51960571441758848382009-10-14T14:02:00.000-07:002009-10-14T14:09:13.353-07:00California Increases Homestead Exemptions Limits for Debtors<div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><span style="font-size: small;">Homestead exemption laws protect the amount of equity that a homeowner can shield from judgment creditors or from creditors while in bankruptcy. Beginning on January 1, 2010, the limits on homestead exemptions in California will increase by as much as 50% for some homeowners.</span><br /><br /><span style="font-size: small;">Under current law, the base homestead exemption to protect home equity from judgment creditors will increase from $50,000 to $75,000. </span><span style="font-size: small;">A $75,000 exemption for certain family units will increase to $100,000. A $150,000 exemption available to homeowners who are 65 years of age or older, disabled, or 55 years of age or older with a limited income will increase to $175,000.</span><br /><br /><span style="font-size: small;">As a debtor facing bankruptcy, you can choose from the homestead exemptions listed above or from a different set of exemptions only available to Californians in bankruptcy cases. Often referred to as the "renter's exemptions" because they are used primarily by renters or homeowners with little or no home equity, these "bankruptcy only" exemptions can be used as a "wild card" to protect any type of property in bankruptcy. The maximum "wild card" exemption in California is presently $21,825. However, this amount </span> might be increased based on any increase in the California Consumer Price Index<span style="font-size: small;"> since the exemption was last adjusted in 2007.</span><br /><br /><span style="font-size: small;">If you are in Southern California and want to talk to an attorney about your debt problems or how this new law might effect you, please call us now at (619) 448-2129 or contact us through <a href="http://www.chs-law.com/contactus.html">our website</a> for more information.</span><br /><br /><span style="font-size: small;"><i><b>About the Author</b>: </i><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Carl H. </a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Starrett</a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;"> II</a><i> has been a licensed attorney since 1993 and is a member in good standing with the California State Bar, the San Diego County Bar Association and the </i><a href="http://www.nacba.org/"><i>National Association of Consumer Bankruptcy Attorneys</i></a><i>. Mr. Starrett practices in the areas of </i><a href="http://www.chs-law.com/bankruptcy.html" style="font-style: italic;">bankruptcy</a><i>, </i><a href="http://www.chs-law.com/businesslaw.html" style="font-style: italic;">business litigation</a><i>, </i><a href="http://www.chs-law.com/construction.html" style="font-style: italic;">construction</a><i>, </i><a href="http://www.chs-law.com/businessformation.html" style="font-style: italic;">corporate planning</a><i> and </i><a href="http://www.chs-law.com/debtcollection.html"><i>debt collection</i></a><i>.</i></span><br /></div><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/10772130-5196057144175884838?l=www.chs-law.com%2Fblog.html' alt='' /></div>Carl Starretthttp://www.blogger.com/profile/06409648966714976610noreply@blogger.com1tag:blogger.com,1999:blog-10772130.post-37079653775175968182009-10-12T11:46:00.000-07:002009-10-12T11:51:36.477-07:00Staying in Business While Filing For Chapter 7 Bankruptcy – Part II<div align="justify" style="font-family: Arial,Helvetica,sans-serif;"><br /><span style="font-size: small;">In <a href="http://www.chs-law.com/2009/08/chapter-7-bankruptcy-options-for.html">Part 1</a>, I discussed bankruptcy options available for self-employed business owners (sole proprietors) in California with debt problems but who may not be good candidates for repayment plans under Chapter 11 or Chapter 13 of the Bankruptcy Code. In Part 2, I will focus on the how owners of a corporation might be able file personal bankruptcy and form a new corporation in order to stay in business. This article is intended primarily for debtors and business owners in California because it is based on my experience with California law and the bankruptcy exemptions available to California residents.</span><br /><span style="font-size: small;"><br />One of the most important duties for a bankruptcy attorney is to have an understanding of the value of the debtor’s assets. When filing for bankruptcy, debtors must list all of their assets and property. Some assets are “exempt”, meaning that the debtor can keep the assets despite the bankruptcy. Other assets are “non-exempt”, meaning that the trustee could sell the assets to pay creditors. Placing a business owner in a Chapter 7 bankruptcy is risky if the value of the business is not fully exempt.</span><br /><span style="font-size: small;"><br />If a business owner with an incorporated business wishes to file for Chapter 7 bankruptcy, I generally recommend obtaining two valuations of the business first. One valuation would come from a business broker to demonstrate the value of the business if it were to be sold on the open market to a third party. The other valuation would come from a Chapter 7 liquidation auctioneer to show the value of the business if it were shut down and the assets liquidated. This provides a range of value that can be used by the attorney to determine if staying in business after file for Chapter 7 is a viable strategy.</span><br /><span style="font-size: small;"><br />If the value of the business exceeds the available exemption money, the debtor may need to negotiate a payment plan or settlement with the trustee to keep the business. In most cases, however, the debtor’s corporation has its own debts to the point that it would have little or no value to a potential buyer. In this type of case, the Chapter 7 trustee will typically have no interest in the day-to-day operations of the debtor’s business or selling it.</span><br /><span style="font-size: small;"><br />If the debtor’s existing corporation is totally exempt or the trustee abandon’s the business as an asset of the bankruptcy estate, the debtor will retain ownership of it. The debtor then forms a new corporation which purchases the assets of the old corporation that it needs to conduct the activities of the business. I recommend that the new corporation pay the higher of the 2 valuations obtained prior to the bankruptcy. This will reduce the risk that creditors of the old corporation would attempt to sue the new entity to collect on the preexisting debts. If all goes well, the debtors will be free of any dischargeable debt and also own a brand new corporation with no debts.</span><br /><span style="font-size: small;"><br />Disclaimer: The information contained in this article is provided for general information purposes only and is not intended to be a legal opinion, legal advice or a complete discussion of the issues related to the area of consumer bankruptcy. Every individual's factual situation is different and you should seek independent legal advice from an attorney familiar with the laws of your state for specific advice. State law generally determines how much property the debtor will be able to keep when filing for bankruptcy.</span><br /><span style="font-size: small;"></span><br /></div><div align="justify" style="font-family: Arial,Helvetica,sans-serif;"><span style="font-size: small;"><i><b>About the Author</b>: </i><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Carl H. </a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Starrett</a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;"> II</a><i> has been a licensed attorney since 1993 and is a member in good standing with the California State Bar, the San Diego County Bar Association and the </i><a href="http://www.nacba.org/"><i>National Association of Consumer Bankruptcy Attorneys</i></a><i>. Mr. Starrett practices in the areas of </i><a href="http://www.chs-law.com/bankruptcy.html" style="font-style: italic;">bankruptcy</a><i>, </i><a href="http://www.chs-law.com/businesslaw.html" style="font-style: italic;">business litigation</a><i>, </i><a href="http://www.chs-law.com/construction.html" style="font-style: italic;">construction</a><i>, </i><a href="http://www.chs-law.com/businessformation.html" style="font-style: italic;">corporate planning</a><i> and </i><a href="http://www.chs-law.com/debtcollection.html"><i>debt collection</i></a><i>.</i></span><br /></div><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/10772130-3707965377517596818?l=www.chs-law.com%2Fblog.html' alt='' /></div>Carl Starretthttp://www.blogger.com/profile/06409648966714976610noreply@blogger.com0tag:blogger.com,1999:blog-10772130.post-26976705528457383952009-10-08T21:34:00.000-07:002009-10-09T09:55:45.657-07:00Harassment of Debtor Allegations Against Patenaude & Felix Revealed<div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><br />On September 24, 2009, a client reported to me that she was receiving phone calls at work from a gentleman claiming to be an attorney with the San Diego law firm of <a href="http://www.pandf.us/">Patenaude & Felix, APC</a>. She further reported to me that a coworker was receiving calls and messages from the same man made to a cell phone number obtained from their employer’s website. After I called the law firm to confirm that I represented this client, I was assured that no further contact would occur.<br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;">Under the California <a href="http://www.dca.ca.gov/publications/legal_guides/dc_2.pdf">Rosenthal Fair Debt Collection Practices Act</a>, creditors and their attorneys cannot legally contact consumer debtors that are represented by an attorney. The Federal <a href="http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm">Fair Debt Collection Practices Act</a> similarly protects consumer debtors from collection agency harassment. I thought that the unwanted creditor contact with my client would end, but I was wrong.<br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;">On September 30, 2009, my client again reported contact from the law firm by a collection agent falsely claiming to be an attorney. The same collection agent called my office and spoke with a bankruptcy paralegal and the caller again identified himself as an attorney.<br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;">The law firm claims that there was simply a “misunderstanding” and that no violation of state or federal laws occurred. I happen to know this bankruptcy paralegal fairly well. Her name is <a href="http://www.chs-law.com/lstarrett.html">Lisa Starrett</a> and I married her in 1994. She has a paralegal certificate from the University of San Diego and has been working with me as a bankruptcy paralegal for over 3 years now. She knows the importance of precision when it comes to communication in our line of work. Her words carry a lot more weight than a collection agent trying to spin his way out of a lawsuit.<br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;">If you are in Southern California and have experienced unfair debt collection practices when dealing with Patenaude & Felix, please call me at (619) 448-2129. You may have grounds for legal action against the law firm and the creditors they represent.<br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><br /></div><div style="font-family: Arial,Helvetica,sans-serif; text-align: justify;"><i><b>About the Author</b>: </i><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Carl H. </a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Starrett</a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;"> II</a><i> has been a licensed attorney since 1993 and is a member in good standing with the California State Bar, the San Diego County Bar Association and the </i><a href="http://www.nacba.org/"><i>National Association of Consumer Bankruptcy Attorneys</i></a><i>. Mr. Starrett practices in the areas of </i><a href="http://www.chs-law.com/bankruptcy.html" style="font-style: italic;">bankruptcy</a><i>, </i><a href="http://www.chs-law.com/businesslaw.html" style="font-style: italic;">business litigation</a><i>, </i><a href="http://www.chs-law.com/construction.html" style="font-style: italic;">construction</a><i>, </i><a href="http://www.chs-law.com/businessformation.html" style="font-style: italic;">corporate planning</a><i> and </i><a href="http://www.chs-law.com/debtcollection.html"><i>debt collection</i></a><i>.</i><br /></div><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/10772130-2697670552845738395?l=www.chs-law.com%2Fblog.html' alt='' /></div>Carl Starretthttp://www.blogger.com/profile/06409648966714976610noreply@blogger.com1tag:blogger.com,1999:blog-10772130.post-87118593380839715302009-08-16T09:54:00.000-07:002009-11-23T20:14:42.360-08:00Chapter 7 Bankruptcy Options for Business Owners - Part I<div align="justify">In Part 1 of a 2-part series discussing Chapter 7 bankruptcy options for business owners, I will discuss options available for self-employed business owners in California that need to file for bankruptcy but who may not be good candidates for repayment plans under Chapter 11 or Chapter 13 of the Bankruptcy Code. Part 2 will discuss how owners of an existing corporation might be able file personal bankruptcy and form a new corporation in order to stay in business. This article is intended primarily for debtors and business owners in California because it is based on my experience with California law and the bankruptcy exemptions available to California residents.<br /><br />As the economy continues to worsen, I am seeing an increasing number of self-employed business owners facing a crushing amount of debt and no place left to turn. In some cases, my clients have owned their businesses for 20 years or more and have no sense of what the job market might hold for them if they were to close the doors of their business. As a result, I find many business owners in a position of owning a business that could generate a reasonable income…except for that little inconvenience called debt.<br /><br />Where I practice, self-employed debtors are not allowed to use property of the bankruptcy estate to generate income without the express written consent of the trustee or a court order. Shutting down for an indefinite period of time is not an option for business owners because they could quickly lose their customer base and a viable alternative is needed.<br /><br />With few exceptions, most self-employed debtors I see would be better off incorporating to take advantage of tax deductions not available to sole proprietors. After incorporating the business, the debtor then transfers all of the business assets to the new corporation in exchange for the issuance of the corporate stock. The value of the new corporation is typically very small and the debtor can usually claim the shares of stock as exempt when filing for bankruptcy.<br /><br />Under the law, a corporation is a separate entity from the debtor and can continue to operate despite the bankruptcy of the owners. Unless the bankruptcy trustee decides to run the corporation to generate income for the creditors or to sell the business, the debtor will remain in control of the business and continue to receive a salary as an employee. The valuation of the new company and the risk of it being sold for the benefit of creditors is something that should be discussed with a qualified bankruptcy attorney prior to filing for bankruptcy. I have employed this strategy successfully for a number of Chapter 7 debtors.<br /><br />When the bankruptcy is filed, the debtor will list the shares of stock in the new corporation as an asset. The transfer of assets to the corporation will also be disclosed. In most cases, the corporation will be of little value to the trustee. Upon completion of the bankruptcy, entry of a discharge and closure of the case, the corporation will belong to the debtor. The debtor will have their business and a fresh start on a pathway to success.<br /><br />The information provided in this article is general information only and is not intended as legal advice. DO NOT use this information as a substitute for obtaining qualified legal advice or other professional help. If you are a business owner in Southern California with debt problems, please contact us for a free consultation to see how we might be able to help you.<br /><br /></div><div align="justify"><i><b>About the Author</b>: </i><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Carl H. </a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;">Starrett</a><a href="http://www.chs-law.com/aboutus.html" style="font-style: italic;"> II</a><i> has been a licensed attorney since 1993 and is a member in good standing with the California State Bar, the San Diego County Bar Association and the <a href="http://www.nacba.org/">National Association of Consumer Bankruptcy Attorneys</a>. Mr. Starrett practices in the areas of </i><a href="http://www.chs-law.com/bankruptcy.html" style="font-style: italic;">bankruptcy</a><i>, </i><a href="http://www.chs-law.com/businesslaw.html" style="font-style: italic;">business litigation</a><i>, </i><a href="http://www.chs-law.com/construction.html" style="font-style: italic;">construction</a><i>, </i><a href="http://www.chs-law.com/businessformation.html" style="font-style: italic;">corporate planning</a><i> and </i><a href="http://www.chs-law.com/debtcollection.html"><i>debt collection</i></a><i>.</i><br /></div><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/10772130-8711859338083971530?l=www.chs-law.com%2Fblog.html' alt='' /></div>Carl Starretthttp://www.blogger.com/profile/06409648966714976610noreply@blogger.com0tag:blogger.com,1999:blog-10772130.post-79182777149313529962009-08-08T16:16:00.000-07:002009-08-08T16:18:44.867-07:00Getting What You Need From Bankruptcy<div style="text-align: justify;">The United States Supreme Court once said that the principal purpose of the Bankruptcy Code is to grant a ‘fresh start’ to the ‘honest but unfortunate debtor’. This reminds me of a Rolling Stones song that tells us that “You can't always get what you want. But if you try sometime, you find you get what you need.” This sentiment is often true in bankruptcy and sometimes debtors have unreasonable expectations of what bankruptcy can do for them.<br /><br />In any type of bankruptcy, I tell potential clients that the 4 most important elements of any possible bankruptcy case are: (1) income; (2) expenses; (3) assets; and (4) debts. This information tells me what type of bankruptcy the debtor may wish to file, what property they might lose in a bankruptcy proceeding and what debts the court will discharge. While the vast majority of my clients keep nearly all of their assets, there are limits to what bankruptcy can do and sometimes debtors must make necessary sacrifices.<br /><br />I have seen debtors fall behind on their house payments while paying hundreds of dollars per month keep luxury items such as a motor home, a boat or a vacation home. Bankruptcy is a court of equity and clean hands, so debtors cannot expect to walk away from tens of thousands of dollars in credit card debt while shelling out excessive payments to keep luxury items like a yacht or a second home. If a debtor is unwilling to make the necessary lifestyle changes and budgetary adjustments, then qualifying for bankruptcy will be an uphill battle.<br /><br />If an “honest but unfortunate debtor” files for bankruptcy, chances are they won’t get everything they want. The desert toys and the fancy SUV with the $950 payment may need to go away. But if the debtor follows the rules, they make get what they need: debt relief and a fresh start.</div><div align="justify"><em><strong><br />About the Author</strong>: </em><a style="font-style: italic;" href="http://www.chs-law.com/aboutus.html">Carl H. </a><a style="font-style: italic;" href="http://www.chs-law.com/aboutus.html">Starrett</a><a style="font-style: italic;" href="http://www.chs-law.com/aboutus.html"> II</a><em> has been a licensed attorney since 1993 and is a member in good standing with the California State Bar and the San Diego County Bar Association. Mr. Starrett practices in the areas of </em><a style="font-style: italic;" href="http://www.chs-law.com/bankruptcy.html">bankruptcy</a><em>, </em><a style="font-style: italic;" href="http://www.chs-law.com/businesslaw.html">business litigation</a><em>, </em><a style="font-style: italic;" href="http://www.chs-law.com/construction.html">construction</a><em>, </em><a style="font-style: italic;" href="http://www.chs-law.com/businessformation.html">corporate planning</a><em> and </em><a href="http://www.chs-law.com/debtcollection.html"><em>debt collection</em></a><em>.</em></div><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/10772130-7918277714931352996?l=www.chs-law.com%2Fblog.html' alt='' /></div>Carl Starretthttp://www.blogger.com/profile/06409648966714976610noreply@blogger.com0tag:blogger.com,1999:blog-10772130.post-50910125903843849492009-07-19T12:55:00.000-07:002009-08-08T16:34:10.142-07:00I Can't Open a Bank Account After Bankruptcy...Now What?<div align="justify">From time to time, I encounter bankruptcy clients who have trouble opening bank accounts because they bounced checks due to insufficient funds. Banks and merchants often report bad check writers to database services. These services care <span class="blsp-spelling-corrected" id="SPELLING_ERROR_0">consumer</span> credit reporting agencies just like <span class="blsp-spelling-error" id="SPELLING_ERROR_1">TransUnion</span>, <span class="blsp-spelling-error" id="SPELLING_ERROR_2">Equifax</span> and <span class="blsp-spelling-error" id="SPELLING_ERROR_3">Experian</span>. The three largest reporting agencies for bad check writers are the <a href="http://www.arjaydata.com/ArjayData.aspx">Shared Check Authorization Network</a> (SCAN), <a href="http://www.telecheck.com/"><span class="blsp-spelling-error" id="SPELLING_ERROR_4">Telecheck</span></a> and <a href="http://www.fidelityinfoservices.com/fnfis/"><span class="blsp-spelling-error" id="SPELLING_ERROR_5">Chexsystems</span></a>. Consumers with negative check information on their credit report will often find it difficult to write a check or even open a bank account.<br /><br />I first encountered this problem in 2007 when a former client advised me that she was unable to open a bank account because of negative information reported by <span class="blsp-spelling-error" id="SPELLING_ERROR_6">Chexsystems</span>. I faxed a copy of the bankruptcy discharge order to <span class="blsp-spelling-error" id="SPELLING_ERROR_7">Chexsystems</span> and received a letter within a week confirming removal of the negative information from my client's credit report. She was then able to open a new bank account.<br /><br />Companies like <span class="blsp-spelling-error" id="SPELLING_ERROR_8">Chexsystems</span> are subject to the Fair Credit Reporting Act. If a bad check debt is discharged in bankruptcy, the creditor has 30 days to report the debt as "zero balance, discharged in bankruptcy". My colleague Mike <span class="blsp-spelling-error" id="SPELLING_ERROR_9">Doan</span> has written an <a href="http://www.bankruptcylawnetwork.com/2009/01/11/after-bankruptcy-what-should-i-now-do-with-chex-systems-inc/">excellent article</a> on the steps necessary to dispute negative information on <span class="blsp-spelling-error" id="SPELLING_ERROR_10">Chexsystems</span> and other bad check databases.<br /><br />In my experience, however, an ounce of prevention is worth a pound of cure. For every new consumer bankruptcy case I file, I now include the major check verification services on the mailing list to receive notice of the bankruptcy. Many of my clients are unaware of any negative banking information on their credit reports. My clients often report to me that this approach has resulted in the automatic removal of negative information from their credit reports that they did not even know existed.<br /><br />If you are in Southern California and are also encountering problems opening a bank account after bankruptcy, please <a href="http://www.chs-law.com/contactus.html">contact us</a> for a complimentary consultation.<br /><br /></div><div align="justify"><em><strong>About the Author</strong>: </em><a style="font-style: italic;" href="http://www.chs-law.com/aboutus.html">Carl H. </a><a style="font-style: italic;" href="http://www.chs-law.com/aboutus.html"><span class="blsp-spelling-error" id="SPELLING_ERROR_11">Starrett</span></a><a style="font-style: italic;" href="http://www.chs-law.com/aboutus.html"> II</a><em> has been a licensed attorney since 1993 and is a member in good standing with the California State Bar and the San Diego County Bar Association. Mr. <span class="blsp-spelling-error" id="SPELLING_ERROR_12">Starrett</span> practices in the areas of </em><a style="font-style: italic;" href="http://www.chs-law.com/bankruptcy.html">bankruptcy</a><em>, </em><a style="font-style: italic;" href="http://www.chs-law.com/businesslaw.html">business litigation</a><em>, </em><a style="font-style: italic;" href="http://www.chs-law.com/construction.html">construction</a><em>, </em><a style="font-style: italic;" href="http://www.chs-law.com/businessformation.html">corporate planning</a><em> and </em><a href="http://www.chs-law.com/debtcollection.html"><em>debt collection</em></a><em>.</em></div><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/10772130-5091012590384384949?l=www.chs-law.com%2Fblog.html' alt='' /></div>Carl Starretthttp://www.blogger.com/profile/06409648966714976610noreply@blogger.com1tag:blogger.com,1999:blog-10772130.post-55891529445017888882009-07-08T11:52:00.000-07:002009-07-08T13:34:06.584-07:00Preparing For Your Meeting of Creditors<div align="justify"><span style="font-size:100%;">After a consumer debtor files for Chapter 7 bankruptcy, the court's computer will assign a hearing date for a Meeting of Creditors as required under Section 341 of the Bankruptcy Court. The trustee assigned to the debtor's case is responsible for reviewing the debtor's bankruptcy papers and selling off the debtor's non-exempt assets to pay creditors. Although most of these hearing are fairly routine, some of my clients become very anxious over what might happen to them at the hearing.<br /><br />The Office of the United States Trustee has produced this helpful video that shows how a Meeting of Creditors usually works:</span><br /><br /><object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/lpyB04uhf-Y&hl=en&fs=1&"><param name="allowFullScreen" value="true"><param name="allowscriptaccess" value="always"></object><div style="text-align: center;"><object width="425" height="344"><embed src="http://www.youtube.com/v/lpyB04uhf-Y&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object><br /></div><span style="font-size:100%;"><br /></span><span style="font-size:100%;">I advise my clients to review their bankruptcy petition again prior to the Meeting of Creditors. I also give my clients the following grounds rules, courtesy of my colleague <a href="http://fredrickclementlaw.com/">Frederick Clement</a>:<br /></span><span style="font-size:100%;"><br /><span style="font-weight: bold;">Be sure you understand the question before answering it</span>. If there is anything about the question you don't understand, ask for <span class="blsp-spelling-corrected" id="SPELLING_ERROR_0">clarification</span>, instead of answering. But always be sure you understand the question you are being asked.<br /><br /></span><span style="font-weight: bold;">Never guess at an answer</span>. You swear an oath to tell the truth and guessing isn't telling the truth. By guessing, you are not helping anybody understand what really happened. There are things witnesses know and things they think they know. "Know" generally means you learn it with one of your five senses. Otherwise you probably don't "know" it in the legal sense. So be sure not to guess.<br /><br /><span style="font-weight: bold;">Never volunteer information</span>. The shortest truthful and complete answer is always the best. Where possible, truthful and complete, "yes" and "no" answers are best. If the <span class="blsp-spelling-corrected" id="SPELLING_ERROR_1">clarification</span> is required with a "yes" or "no" answer, make it very short. <span class="blsp-spelling-corrected" id="SPELLING_ERROR_2">Volunteering</span> information never helps you, it only hurts you.<span style="font-size:100%;"><br /></span><br /><span style="font-size:100%;">Here are some of the common questions a trustee might ask at a Meeting of Creditors:<br /></span><ol><li><span style="font-size:100%;">State your Name and Address for the Record</span></li><li>Did read your bankruptcy papers before you signed them?</li><li>Did you read and sign the meeting <span class="blsp-spelling-corrected" id="SPELLING_ERROR_3">questionnaire</span>?</li><li>Did you understand the <span class="blsp-spelling-corrected" id="SPELLING_ERROR_4">questionnaire</span>?</li><li>Did you list all your assets?</li><li>Did you list all you debts?</li><li>Did you list all your income?</li><li>Is there any reason to make any changes to your schedules?</li><li>Have you transferred any property or money to any family members in the last year?</li><li>Are there any creditors present?<br /></li></ol><span style="font-size:100%;">The trustee might ask other specific questions that may be unique to your case. If your meeting is concluded, you will have no other obligations beyond completing the course in debtor education and any other <span class="blsp-spelling-corrected" id="SPELLING_ERROR_5">instructions</span> the trustee may give at the meeting.<br /><br /></span><span style="font-size:100%;">And there is one final thing to remember: try to relax. The trustee is not a judge and knows that you are nervous just like the other debtors who also have to be there for a meeting of creditors. Your attorney will have the file and be able to assist you if any problems arise.<br /><br /></span></div><div align="justify"><em><strong>About the Author</strong>: </em><a style="font-style: italic;" href="http://www.chs-law.com/aboutus.html">Carl H. </a><a style="font-style: italic;" href="http://www.chs-law.com/aboutus.html"><span class="blsp-spelling-error" id="SPELLING_ERROR_6">Starrett</span></a><a style="font-style: italic;" href="http://www.chs-law.com/aboutus.html"> II</a><em> has been a licensed attorney since 1993 and is a member in good standing with the California State Bar and the San Diego County Bar Association. Mr. <span class="blsp-spelling-error" id="SPELLING_ERROR_7">Starrett</span> practices in the areas of </em><a style="font-style: italic;" href="http://www.chs-law.com/bankruptcy.html">bankruptcy</a><em>, </em><a style="font-style: italic;" href="http://www.chs-law.com/businesslaw.html">business litigation</a><em>, </em><a style="font-style: italic;" href="http://www.chs-law.com/construction.html"><span class="blsp-spelling-error" id="SPELLING_ERROR_8">construction</span></a><em>, </em><a style="font-style: italic;" href="http://www.chs-law.com/businessformation.html">corporate planning</a><em> and </em><a href="http://www.chs-law.com/debtcollection.html"><em>debt collection</em></a><em>.</em></div><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/10772130-5589152944501788888?l=www.chs-law.com%2Fblog.html' alt='' /></div>Carl Starretthttp://www.blogger.com/profile/06409648966714976610noreply@blogger.com0tag:blogger.com,1999:blog-10772130.post-83496714262220466772009-06-14T17:35:00.000-07:002009-06-14T17:56:07.618-07:00California’s 90-Day Foreclosure Moratorium Really Isn’t<div align="justify">In February 2009, Governor Arnold Schwarzenegger approved the California Foreclosure Prevention Act. The news media has portrayed the legislation, which takes effect on June 15 2009, as a 90-day moratorium on foreclosures. The reality is much more complicated and could lull home owners into a false sense of security if they in negotiations with a lender for a loan modification.<br /><br />What the new law really does is expand the time between when a lender can record a Notice of Default to begin the foreclosure process and when the lender may record a Notice of Sale from 90 days to 180 days. The law only protects owner-occupied homes from foreclosure where the first loan was recorded between Jan. 1, 2003 and Jan. 1, 2008. For loans outside of the specified time period, the time before the lender may give a Notice of Sale remains at 90 days.<br /><br />The law also allows lenders to avoid the 90-day “moratorium” if they have a comprehensive loan modification program based, in part, on criteria set forth by the Federal Deposit Insurance Corporation (“FDIC”). There is no requirement that the lenders negotiate in good faith.<br /><br />Nearly all residential foreclosures utilize what is commonly referred to as nonjudicial foreclosures, which means that the foreclosure sale can occur without court supervision. If a lender does not comply with California’s foreclosure laws, it will still be up to the homeowner to go to court to prevent or set aside an improper foreclosure. If homeowners wait too long before seeing a qualified attorney, they may be so far behind in their payments that even a Chapter 13 repayment plan in bankruptcy might not be able to save them from foreclosure.<br /><br />For now, I am advising my clients to act as if they do not have the benefit of an additional 90 days to stop a home foreclosure because there simply is no way to tell when a lender might assert that it has a loan modification program that complies with California law. Once the foreclosure sale takes place, it is very difficult and expensive to go to court to undo the transaction.<br /><br />If you are in Southern California, please feel free to <a href="http://www.chs-law.com/contactus.html">contact us</a> for a free consultation on your bankruptcy options to possibly help save your home from foreclosure.<br /><br /></div><div align="justify"><em><strong>About the Author</strong>: </em><a style="font-style: italic;" href="http://www.chs-law.com/aboutus.html">Carl H. </a><a style="font-style: italic;" href="http://www.chs-law.com/aboutus.html">Starrett</a><a style="font-style: italic;" href="http://www.chs-law.com/aboutus.html"> II</a><em> has been a licensed attorney since 1993 and is a member in good standing with the California State Bar and the San Diego County Bar Association. Mr. Starrett practices in the areas of </em><a style="font-style: italic;" href="http://www.chs-law.com/bankruptcy.html">bankruptcy</a><em>, </em><a style="font-style: italic;" href="http://www.chs-law.com/businesslaw.html">business litigation</a><em>, </em><a style="font-style: italic;" href="http://www.chs-law.com/construction.html">construction</a><em>, </em><a style="font-style: italic;" href="http://www.chs-law.com/businessformation.html">corporate planning</a><em> and </em><a href="http://www.chs-law.com/debtcollection.html"><em>debt collection</em></a><em>.</em></div><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/10772130-8349671426222046677?l=www.chs-law.com%2Fblog.html' alt='' /></div>Carl Starretthttp://www.blogger.com/profile/06409648966714976610noreply@blogger.com0tag:blogger.com,1999:blog-10772130.post-8578579605679331702009-06-07T15:14:00.001-07:002009-06-07T15:18:03.657-07:00A Creditor Objected to My Discharge…Now What?<div style="text-align: justify;"><span xmlns="" style="font-size:100%;"><p><span style=";font-family:Arial;" >When a debtor files for Chapter 7 bankruptcy, the court mails the creditors a document entitled "Notice of Chapter 7 Bankruptcy Case, Meeting of Creditors, & Deadlines". One of the deadlines set by the court is when the creditors must take legal action to prevent the debtor from receiving a discharge of some or all of the debts. This objection is accomplished by filing a lawsuit within the bankruptcy case called an adversary proceeding.</span></p></span><span xmlns="" style="font-size:100%;"><p><span style=";font-family:Arial;" >Most adversary proceedings that I see are filed by credit card companies alleging that a debtor made purchases or took cash advances without the intention of repaying them. The best way to avoid an adversary proceeding is for the debtor to stop using their credit cards for a minimum of 90 days prior to filing for bankruptcy. Luxury purchases and cash advances in close proximity to the filing date of the bankruptcy might be presumed to be fraudulent, giving the creditor an advantage in the adversary proceeding.</span></p></span><span xmlns="" style="font-size:100%;"><p><span style=";font-family:Arial;" >Most credit card companies that regularly threaten to file adversary proceedings are usually looking for "low hanging fruit" (i.e. a quick settlement with the debtor). Perhaps they feel that a debtor will not be able afford more legal fees to defend the new lawsuit or will simply be scared into submission.</span></p></span><span xmlns="" style="font-size:100%;"><p><span style=";font-family:Arial;" >In my experience, creditors will often back away very quickly if confronted with a strong defense. In one recent case I handled, Wells Fargo dropped a claim that my client had fraudulently borrowed $10,000 on a credit card less than a month after I had filed an answer to the adversary complaint on behalf of my client. Perhaps it was the fact that the bankruptcy court could have ordered Wells Fargo to pay my client's legal fees if it was found that the lawsuit had been brought without sufficient justification for the fraud allegations.</span></p></span><span xmlns="" style="font-size:100%;"><p><span style=";font-family:Arial;" >Don't let a creditor scare you into giving up your rightful discharge. If you are in Southern California and need assistance in defending an adversary proceeding, please feel free to <a href="http://www.chs-law.com/contactus.html">contact us</a>.</span></p></span></div><div align="justify"><em><strong>About the Author</strong>: </em><a style="font-style: italic;" href="http://www.chs-law.com/aboutus.html">Carl H. </a><a style="font-style: italic;" href="http://www.chs-law.com/aboutus.html"><span class="blsp-spelling-error" id="SPELLING_ERROR_0">Starrett</span></a><a style="font-style: italic;" href="http://www.chs-law.com/aboutus.html"> II</a><em> has been a licensed attorney since 1993 and is a member in good standing with the California State Bar and the San Diego County Bar Association. Mr. <span class="blsp-spelling-error" id="SPELLING_ERROR_1">Starrett</span> practices in the areas of </em><a style="font-style: italic;" href="http://www.chs-law.com/bankruptcy.html">bankruptcy</a><em>, </em><a style="font-style: italic;" href="http://www.chs-law.com/businesslaw.html">business litigation</a><em>, </em><a style="font-style: italic;" href="http://www.chs-law.com/construction.html">construction</a><em>, </em><a style="font-style: italic;" href="http://www.chs-law.com/businessformation.html">corporate planning</a><em> and </em><a href="http://www.chs-law.com/debtcollection.html"><em>debt collection</em></a><em>.</em></div><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/10772130-857857960567933170?l=www.chs-law.com%2Fblog.html' alt='' /></div>Carl Starretthttp://www.blogger.com/profile/06409648966714976610noreply@blogger.com0tag:blogger.com,1999:blog-10772130.post-27519367981542614042009-05-17T21:21:00.001-07:002009-05-17T21:21:30.105-07:00Struggling With The Decision to Call a Bankruptcy Attorney<div align="justify"><br />Before joining my husband’s law practice as a bankruptcy paralegal in 2006, I worked at the corporate headquarters for Jack in the Box, Inc. for 11 years in human resources and training, the last year of which was spent as a recruiter for the Quick Stuff division. Interviewing potential job candidates was a very rewarding experience as both the job candidate and I would work through the interview to determine if a job was a good fit for them and for Jack in the Box.<br /><br />As the senior paralegal in a family-owned bankruptcy law firm now, I am often the client’s first contact in the information gathering process. I view the initial phone call to us as a unique opportunity to show a potential client from the beginning that we care, to talk with them about their situation and to provide general information, in easy to understand terms, of what bankruptcy is and how it works.<br /><br />Picking up the phone to call a bankruptcy law firm is a big step, especially if someone has been battling stress and depression because of their financial situation, and fear of shame in needing to call. For each person that I talk with and hear this in their voice, my goal is to be a friendly voice that shares information about what bankruptcy is and is not, so that they can begin to explore if bankruptcy is the right solution for their needs.<br /><br />My experience with client interviews has allowed me to develop my own mental checklist of common client experiences that indicate they have made the right decision by calling us:<br /><ul><li>If you are routinely taking cash advances on one credit card to pay the minimum balance on another</li><li>If you can barely afford to pay the minimum balances on your credit cards</li><li>If you are considering using cash advance checks or getting a payday loan to meet basic expenses while trying to pay credit card bills</li><li>If you are looking at credit card offers in the mail, and hoping you can qualify for just a small amount to tide you over</li><li>If you are afraid to pick up the phone or go to the mailbox</li><li>If you lose sleep over not being able to pay your bills</li><li>If financial stress is affecting your health</li><li>If you cannot enjoy daily activities with friends or family because of worry over your finances</li><li>If you find yourself hiding bills from your spouse</li><li>If you live paycheck to paycheck with no available credit and no reserve for any emergency</li><li>If you park your car different places each day to avoid repossession<br /></li></ul>Bankruptcy is not a magic pill that will make all of your troubles go away. However, people who seek us out will hear a friendly voice and an open ear. If you are in Southern California and can identify with the warning signs above, let us help. Please <a href="http://www.chs-law.com/contactus.html">contact us</a> for a free consultation.<br /><br /></div><div align="justify"><em><strong>About the Author</strong>: <a href="http://www.chs-law.com/lstarrett.html">Lisa F. Starrett</a> has been a bankruptcy paralegal since 2006 and uses her human resources background to connect with clients of the <a href="http://www.chs-law.com/bankruptcy.html">Law Offices of Carl H. Starrett</a>. Mrs. Starrett graduated from the University of San Diego in 1989 with a degree in Political Science and a paralegal certificate from a program approved by the American Bar Association.</em><em></em><em></em><em></em><em></em><em></em><a href="http://www.chs-law.com/debtcollection.html"><em></em></a><em></em></div><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/10772130-2751936798154261404?l=www.chs-law.com%2Fblog.html' alt='' /></div>Lisa Starretthttp://www.blogger.com/profile/03155777981200953187noreply@blogger.com1tag:blogger.com,1999:blog-10772130.post-80599335928246674002009-05-10T16:55:00.000-07:002009-05-10T16:58:33.500-07:005 Signs That It May Be Time to File Bankruptcy<div align="justify">Bankruptcy is intended to help honest debtors get a fresh start, but there is no hard and fast rule on who will benefit the most from filing for bankruptcy. These are some of the warning signs that I look for when advising a potential client that it may time to file for bankruptcy:<br /><br /> <span style="font-weight: bold;">1. Struggling to make rent or mortgage payments.</span> When someone is faced with mounting bills, some debtors will play a game I call the Credit Card Shuffle, randomly choosing which minimum payment to make based on how nasty the collection call will be. Some debtors will even pay credit card bills before paying their rent or mortgage rather than face those harassing collection calls. This is simply wrong. Food and shelter should take priority over credit card debt.<br /><br /> <span style="font-weight: bold;">2. Stress.</span> Are you losing sleeping or constantly arguing with your spouse because of your debt problems? Money problems are a leading cause of divorce. Bankruptcy is not a cure all, but it can help remove your financial problems as a source of difficulties and stress in your marriage.<br /><br /> <span style="font-weight: bold;">3. Health.</span> I have seen far too many clients losing sleep and suffer stress-related health problems because of their financial struggles. A willingness to work multiple jobs or crazy overtime hours may be a sign a good character, but it can lead to burnout, exhaustion and anxiety.<br /><br /> <span style="font-weight: bold;">4. Changes in your normal behavior.</span> Are you considering doing something illegal to fix your debt problems or something that could put your health or the health of your family at risk? Have you taken up gambling or drinking? Are you doing things that are “out of character” for you? These may be signs of desperation and it may be time to see an attorney.<br /><br /> <span style="font-weight: bold;">5. The Balance Transfer Shuffle.</span> Are you constantly applying for new credit cards to take advantage of low balance transfer rates? This may be a sign that you are in over your head in debt.<br /><br />If you identify with one of these warning signs, schedule a consultation with a bankruptcy attorney and explore your options. Debtors in Southern California may <a href="http://www.chs-law.com/contactus.html">contact us</a> for a free consultation.<br /><br /></div><div align="justify"><em><strong>About the Author</strong>: </em><a style="font-style: italic;" href="http://www.chs-law.com/aboutus.html">Carl H. </a><a style="font-style: italic;" href="http://www.chs-law.com/aboutus.html">Starrett</a><a style="font-style: italic;" href="http://www.chs-law.com/aboutus.html"> II</a><em> has been a licensed attorney since 1993 and is a member in good standing with the California State Bar and the San Diego County Bar Association. Mr. Starrett practices in the areas of </em><a style="font-style: italic;" href="http://www.chs-law.com/bankruptcy.html">bankruptcy</a><em>, </em><a style="font-style: italic;" href="http://www.chs-law.com/businesslaw.html">business litigation</a><em>, </em><a style="font-style: italic;" href="http://www.chs-law.com/construction.html">construction</a><em>, </em><a style="font-style: italic;" href="http://www.chs-law.com/businessformation.html">corporate planning</a><em> and </em><a href="http://www.chs-law.com/debtcollection.html"><em>debt collection</em></a><em>.</em></div><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/10772130-8059933592824667400?l=www.chs-law.com%2Fblog.html' alt='' /></div>Carl Starretthttp://www.blogger.com/profile/06409648966714976610noreply@blogger.com3tag:blogger.com,1999:blog-10772130.post-26871772529747748202009-04-19T15:44:00.000-07:002009-04-19T19:03:47.284-07:00Bankruptcy and Professional Licenses<div style="text-align: justify;">In a <a href="http://www.chs-law.com/2009/04/bankruptcy-and-employment.html">recent article</a>, I discussed the limited protections that debtors have against employment related discrimination set forth in the Bankruptcy Code. In this article, I will discuss the impact that the Bankruptcy Code has on professional licenses.<br /><br />Section 525(b) of the Bankruptcy code protects present and former debtors and their associates against governmental discrimination, such as the revocation of an employment license. However, section 525 protects only against discrimination "solely because" the person is bankrupt or has been bankrupt.<br /><br />Debtors with professional licenses are protected to a certain extent by the automatic stay that is immediately triggered upon the filing of a bankruptcy petition. An exception to the automatic stay appears in Section 362(b)(4) of the bankruptcy code "the commencement or continuation of an action or proceedings by the governmental unit to enforce such governmental units' police or regulatory powers." This exception is intended to allow governmental units to sue a debtor to prevent or stop violation of fraud, environmental protection, consumer protection, safety, or similar police or regulatory laws, or attempting to fix damages for violation of such a law.<br /><br />While the general rule is that bankruptcy alone should not impact a professional license, the protection is not absolute. For example, the California Contractors State License Board (“CSLB”) generally could not force a bankrupt contractor to pay money damages to an owner to fix deficient work. However, the CSLB still would have jurisdiction to fine the contractor or take other necessary steps to protect the public.<br /><br />Bankruptcy is meant to help protect honest debtors in unfortunate circumstances and this same principle applies to any debtor who is a licensed professional such as doctors, attorneys and accountants. Licensed professionals cannot lose their license “solely” due to filing bankruptcy. Nonetheless, incompetent or dishonest professionals may be at risk and will not be protected by the Bankruptcy Code.<br /><br />If you are in Southern California and want to know how bankruptcy might impact your professional license, please feel free to <a href="http://www.chs-law.com/contactus.html">contact us</a> for a free consultation.<br /></div><br /><div style="text-align: justify;"><em><strong>About the Author</strong>: </em><a style="font-style: italic;" href="http://www.chs-law.com/aboutus.html">Carl H. </a><a style="font-style: italic;" href="http://www.chs-law.com/aboutus.html">Starrett</a><a style="font-style: italic;" href="http://www.chs-law.com/aboutus.html"> II</a><em> has been a licensed attorney since 1993 and is a member in good standing with the California State Bar and the San Diego County Bar Association. Mr. Starrett practices in the areas of </em><a style="font-style: italic;" href="http://www.chs-law.com/bankruptcy.html">bankruptcy</a><em>, </em><a style="font-style: italic;" href="http://www.chs-law.com/businesslaw.html">business litigation</a><em>, </em><a style="font-style: italic;" href="http://www.chs-law.com/construction.html">construction</a><em>, </em><a style="font-style: italic;" href="http://www.chs-law.com/businessformation.html">corporate planning</a><em> and </em><a href="http://www.chs-law.com/debtcollection.html"><em>debt collection</em></a><em>.</em></div><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/10772130-2687177252974774820?l=www.chs-law.com%2Fblog.html' alt='' /></div>Carl Starretthttp://www.blogger.com/profile/06409648966714976610noreply@blogger.com0