Boise Bankruptcy Lawyers, Estate Planning Attorneys

Credit Card Companies Cut Deals

admin — Tue, 16 Jun 2009 14:59:04 +0000

Credit card companies are increasingly doing something they have historically refused to do - cutting deals on delinquent accounts for substantially less than the amount owed, according to a recent article in the New York Times. Historically, credit card companies might negotiate interest rates or waive penalties, but would not otherwise write off the balance due. This is a welcome change in policy, as it makes good sense for both the company as well as the borrower. It just might be the key to avoiding bankruptcy.

Medical Bills A Factor in 62% of Bankruptcies

admin — Fri, 05 Jun 2009 16:37:34 +0000

According to a recent study by Harvard Medical School, 62% of all personal bankruptcies filed in 2007 were related to a significant extent to medical bills. Further, the really shocking statistic is that of those bankruptcies where medical bills were a factor, 78% had health insurance coverage! You can read the study at http://pnhp.org/new_bankruptcy_study/Bankruptcy-2009.pdf.

Court Halts Foreclosure Sales

admin — Wed, 06 May 2009 19:09:30 +0000

A court in South California has issued an order halting certain home foreclosure sales. The injunction - which I believe to be the first of its kind for a broad class of borrowers — prevents stops foreclosure sales on properties guaranteed by Freddie Mac, Fannie Mae or any other mortgage company that is participating in federal mortgage foreclosure assistance programs. The court reasoned that it was necessary to give homeowners an opportunity to determine if they qualify for assistance. This is an encouraging development and it will be interesting to see if other states follow suit.

Cramdown Possible With Second Mortgage

admin — Sat, 25 Apr 2009 22:00:19 +0000

Many homeowners unfortuneately owe more on their mortgage than their home is worth. There has been quite a debate in Congress about whether or not to amend the Bankruptcy Code to allow homeowners to “cramdown” the amount of thier mortgage to the value of their home. Unfortuneately, it appears the financial industry lobby will defeat this legislation. The good news is that if you have a second mortgage and the value of your home is less than what you owe on your first mortgage, you may be able to cramdown the second mortgage in a Chapter 13 bankruptcy. The effect is to make the second mortgage an “unsecured” debt which is dischargeable. This could be just the strategy you need to stay in your home and avoid foreclosure. Please contact us if you would like more information.

Planning for Incapacity

admin — Sat, 25 Apr 2009 21:43:21 +0000

The Wall Street Journal recently published an excellent article on estate planning for someone who has a chronic illness. See http://online.wsj.com/article/SB123914087467198549.html. The article explains how important it is to have an estate plan with the proper documents to be sure someone with a chronic illness gets the care they need during their life. That includes being sure they get both the medical care as well as the financial protection they need. But it’s important to realize that any of us could suffer an accident or unexpected illness that leaves us incapictated. And yet most people simply never plan for that possibility. Proper planning can make all the difference in the world in being sure you are protected.

Thinking of Starting a Business?

admin — Sat, 25 Apr 2009 21:18:28 +0000

I talk to many people who confide they have thought of starting their own business. The question is whether or not it’s the right thing for you to do. The Wall Street Journal recently published a report that lists some of the questions you need to ask yourself. See http://online.wsj.com/article/SB123498006564714189.html. If you decide you want to be in business for yourself, there are two important things I know from personal experience. First, buying an established business (possibly even a franchise) rather than starting one on your own will dramatically increase your chance of success. That’s because you can take advantage of a proven business model, typically with experienced employees allready on board. Second, you need good professional advice. If you want to learn more about how to buy a business the right way, please contact us.

Student Loan Defaults Increasing

admin — Sat, 25 Apr 2009 20:18:22 +0000

With college costs at an all-time high and a very weak job market, student loan defaults are skyrocketing according to an article in the Wall Street Journal. See http://online.wsj.com/article/SB124027600001437467.html#printMode. Some loans may qualify for deferment or forbearance where you may be able to reach an agreement with your lender to temporarily modify or even suspend payments. And unfortuneately, student loans are generally not dischargeable if you file bankruptcy unless you can show “undue hardship.” That is difficult but not impossible to show under the right circumstances. If you would like more information, please contact us.