|
In This Issue:
|
July 17 2006
|
 |
|
|
•
|
MARKETING A CONSUMER BANKRUPTCY PRACTICE AFTER BAPCPA
|
|
|
|
•
|
KING'S GUIDE TO PRACTICE NOW SHIPPING
|
|
|
|
|
•
|
GENERAL BANKRUPTCY NEWS
|
|
|
|
|
|
|
•
|
FINANCING A CAR WHILE IN CHAPTER 13
|
|
|
|
•
|
R. FELDMAN'S BANKRUPTCY BLOG
|
|
|
|
FEDERAL RESERVE REPORT: U.S. HEADED FOR BANKRUPTCY
Coming $65.9 trillion fiscal gap 5 times GDP, twice size of national wealth
© 2006 WorldNetDaily.com
A newly published paper by a researcher for the Federal Reserve Bank of St. Louis warns that a ballooning budget deficit and pension and welfare timebomb is growing into a $65.9 trillion fiscal gap that will force the United States into bankruptcy.
In the view of Prof. Laurence Kotlikoff of Boston University, the U.S. is already bankrupt – at least the government is.
"The U.S. government is, indeed, bankrupt," he writes, "insofar as it will be unable to pay its creditors, who, in this context, are current and future generations to whom it has explicitly or implicitly promised future net payments of various kinds."
For full story: http://worldnetdaily.com/news/article.asp?ARTICLE_ID=51078
_____________________________
CONSUMERS TAKING ON MORE CREDIT CARD DEBT
Consumers coping with steadily rising gasoline prices increased their borrowing in May. The Federal Reserve reports the use of credit cards and other types of revolving debt rose 2.5 percent, the fastest pace since October 2004.
Financial analysts also concluded that many consumers were relying on credit cards for large purchases since a declining real estate market and rising interest rates made home equity loans less accessible and more expensive.
For full story - http://www.consumeraffairs.com/news04/2006/07/gas_credit_cards.html
_______________________
CONGRESS CLOSE TO RAISING FILING FEES YET AGAIN
Denise Trowbridge
THE COLUMBUS DISPATCH
Going broke might become more expensive.
Congress is considering a bill that would raise the costs for doing Chapter 7 bankruptcy by $40, to $439*.
If passed, it would be the fourth increase in fees since the new bankruptcy law went into effect in October.
The cost of filing was $209 before the new law. The current cost is $399.
"It’s a further burden on cash-strapped consumers," said Ike Shulman, legislative chairman for the National Association of Consumer Bankruptcy Attorneys. "This fee increase hits those who are least able to afford it."
*The fee includes the $100 that filers spend on mandatory credit counseling and personal-finance classes.
For full story: http://www.columbusdispatch.com/business-story.php?story=dispatch/2006/07/15/20060715-B1-02.html
__________________________
OREGON WOMAN GUILTY OF BANKRUPTCY FRAUD
A Roseburg (Oregon) woman pleaded guilty recently to bankruptcy fraud in which she was released from $72,000 in debt.
Brenda Gay Hartman, 44, was indicted in September by a federal grand jury that alleged she omitted assets and overstated expenses when she filed for bankruptcy while living in Klamath Falls in 2000, according to a press release from the U.S. Attorney's Office.
The bankruptcy court initially granted Hartman's bankruptcy and discharged $72,000 in debt. The case was reopened when the court learned of the fraud and the Federal Bureau of Investigation began to investigate.
For full story: http://www.oregonnews.com/article/20060713/NEWS/107130086
_______________________
ORAL ARGUMENT HEARD IN CASE TO TOSS OUT "DEBT RELIEF AGENCIES"
NACBA Lawsuit Update
Friday, July 14, 2006
Back in May, we reported that the National Association of Consumer Bankruptcy Attorneys (NACBA) and the Connecticut Bar Assocation (CBA) had filed suit in federal court alleging that the "debt relief agency" provisions of BAPCPA prohibited attorneys from providing complete and accurate information to their clients, making it impossible to fulfill their ethical obligations.
NACBA/CBA requested a preliminary injunction prohibiting application of those provisions to NACBA/CBA members until the issue had been decided.
Yesterday, the District Court heard arguments on the preliminary injunction. Eugene S. Melchionne, Esq. kindly provided an "eyewitness account" of the hearing. NACBA was represented by Peter Rubin and Henry Sommer, and CBA by Tom Gugliotti and Barry Fiegenbaum. There were also several NACBA members in attendance, including Eugene, Charlie Maglieri, Jed Berliner and Susan Williams.
Peter Rubin, by Eugene's account, presented an excellent case and ably answered the judge's many questions. In contrast, the government's argument reportedly relied heavily on the idea that where the law was written overbroadly, the government wouldn't think of enforcing it "that way."
No indication of the direction the judge might be leaning, but all indications were that he'd educated himself on the issues and asked a number of pertinent questions. We'll post information about the ruling as soon as it is available.
SOURCE:The Bankruptcy Lawyer's Blog hosted by startfreshtoday.com
http://blog.startfreshtoday.com/
|
|
 |
|
|
ROADMAP TO MASTERING BAPCPA
KING'S GUIDE TO PRACTICE UNDER THE BANKRUPTCY REFORM ACT OF 2005
RELEASE # 4-d REVISED & ENLARGED 01/29/06
Price $179.95 plus s&h
3-ring binder - 530-pages of text - 15 Checklists - 9 Flow-charts - + Calculators
This handy deskbook comes in a 3-ring binder bundled with a CD library containing the book text, the entire text of the Reform Act, model fee agreements, 15 checklists, 9 calculators, 9 flo-charts, new Official Forms, and other important reference documents on pdf for easy issue and key-words search. The Guide is subject to ongoing peer-review and updated frequently online, including case law, to keep up with implementation and evolving interpretation of BAPCPA.
The CD library is now available as a separate product. To order click on the image at right, or call the number shown. Price $99.95
A COMBO book order is available that comes with a black-lined Bankruptcy Code booklet.
WHAT THEY'RE SAYING ABOUT THIS BOOK -
http://www.bankruptcybooks.com/guidetopractice.html#Anchorsaying
King's Guide may be ordered online - click on the clipboard image at right -
_______________________
SUBSCRIBE TO ONLINE UPDATES FOR KING'S GUIDE TO PRACTICE
In lieu of hard-copy supplements that come out annually or quarterly, BankruptcyBooks.com provides continuous updates to King's Guide to Practice Under the Bankruptcy Reform Act of 2005, on its web site. Access to the site is available only by paid subscription and requires a user i.d. and password.
Subscribe online with a credit card by going to ReformGuide.com and clicking on the UPDATES - SUBSCRIBE button. Or, click here -
http://www.bankruptcybooks.com/updatesbapcpa.html
Quick-link to UPDATES TO KING'S GUIDE [requires i.d. and password]
http://www.bankruptcybooks.com/passwordprotected/guidesupplements.html
CLICK HERE TO ORDER KING'S GUIDE ONLINE OR VIEW ENTIRE TABLE OF CONTENTS
|
|
 |
|
|
|
|
|
The client, a woman in her early 20’s, came in and paid my usual $75 consultation fee, to inquire about doing a bankruptcy. I quickly ascertained that she owed less than $2,000. I told her it didn’t seem right to ruin her credit for 10 years over a $2,000 bankruptcy. Particularly when the attorney will probably charge $600, plus the court filing fee.
She was sure, however, that she couldn’t pay the debt off. Her salary as a clerk in a bank barely covered monthly living expenses.
In good conscience, I could not justify charging her my minimum fee of $650 just to wipe out less than $2,000 in debts. Her case was about as simple as they come. She owned nothing, and all of her debts were easily dischargeable. She hadn’t done anything to mess things up, like last-minute transfers of assets.
I decided to do her a big favor. I told her not to waste a pile of money on legal fees. Go to a bookstore and pick up the Nolo Press book on do-it-yourself bankruptcy (this was before the Reform Act of 2005 quadrupled the complexity of even simple cases). I said just follow the instructions. Save yourself $600. She was all smiles as I escorted her out the door.
I felt good. I felt like I had made my little statement about lawyer integrity. I could have plucked the little chicken for an easy fee, but I didn’t. I was my greater self. I was what good lawyers are supposed to be about.
A week later I received a letter from an attorney. This is how it began:
“Dear Mr. Feldman:
I am informed you took $75 from my client and then kicked her out of your office …”
That's it!
I quit! I really mean it this time!
|
|
 |
|
 |
|
PUBLISHED BY KING BANKRUPTCY MEDIA FOR BANKRUPTCY PROFESSIONALS 7080 Donlon Way Suite 222 Dublin California 94568 (925) 829-6460. Morgan D. King, Editor.
© King Bankruptcy Media 2005, 2006. CONTACT US AT editor@bankruptcymedia.com
|
|
|
|
|
|
