Archives for March 2009

So much for bankruptcy law change.

An email I received today from the National Association of Consumer Bankruptcy Lawyers (NACBA) says that Senate Bill S. 61 is stalled. It might never get to the floor for a vote. This is the bill that passed the House about a month ago, and which would have provided bankruptcy judges with authority to rewrite mortgages.

Bankruptcy judges were going to be allowed to reduce balances, lower interest rates and extend terms of mortgages. Only a very narrow group of people would have qualified for this benefit, but it still would have been – as we native Minnesotans say -a pretty big deal.

If it had passed it was my plan to attend a three day convention – basically three days of classes on bankruptcy law – which is scheduled by NACBA in Chicago for the end of May. I would have expected that there would have been plenty of classes and materials explaining the proposed changes, if they had passed. Now I think I’ll skip it for this year. I did go last year, and without those changes it would be a lot of the same material.

In a way it’s a relief. Learning a lot of new stuff would have been a bit of work. I must say, however, that I am disappointed to see all the hoopla and fanfare followed by nothing but a big thud.

Warning about Debt Management Scams

I’m looking this morning at the March 15th tip of the day from Kim Komando. It’s a rather long article entitled Beware of debt management offers. She describes three different types of programs which one will find when running a Google search: 1) Debt negotiation, 2) debt consolidation, and 3) debt elimination. Personally I would like to add one more type: 4)debt management.

The third one – debt elimination – is always a scam. These are people who are trying to sell information that they claim is secret that you can use to make your debt just go away entirely. If anybody tells you they have that sort of a program, which sometimes is in the form of a magic form you can fill out and then send to the creditors, run away as fast as you can. There is no such program.

Debt negotiation or debt consolidation programs may or may not be legitimate. The Komando article suggests that you should make sure that any agency you use is licensed by your state and also accredited by one of two organizations, the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies. I would also suggest that you make sure they are on the approved Department of Justice list for counseling programs acceptable for the pre-filing and post-filing credit counseling required by the bankruptcy statute. You can find a link to the Department of Justice list of approved bankruptcy counseling agencies on my web page at http://www.mn-bankruptcy.com/chapter7.html. At that page click on “Credit Counseling Requirement.”

My two favorite local places to go for real counseling are Lutheran Social Services and Family Means. Both have offices fairly close to my office. Both are non-profit. Both do debt management, my Item 4 on the above list. Debt management might involve negotiation, but not necessarily. They are not trying to make money out of your desperate situation. They are tying to figure out how to get you on a payment plan that will actually work. And if that is a hopeless idea for you, they will tell you and suggest that you talk to someone like me.

My Dentist, My Accountant and Me.

This week I have gone to see both my dentist and my accountant. I like both of these guys, but going to see them tends to be a painful experience. I need both of these guys, but I wish I didn’t.

I suspect that the way I feel about seeing my dentist and my accountant may provide some insight into how people feel when they need to come see me for legal advice or representation. I am fairly certain that very few of my clients are glad about being my client – in fact none are glad about it. While I am certainly glad to see them, seeing me or having anything to do with me must certainly be difficult. If my clients had a choice, I’m sure they’d rather be somewhere else.

I mentioned these thoughts to one of my clients, who stated as follows : “I’m glad to have the company, but I’d rather have a different topic.” Credit to him for putting it profoundly and succinctly.

I’ll share one more fact. Between the dentist and the accountant, I’d rather go see the dentist.

close
Facebook IconYouTube IconTwitter Icon