Don't Leave Money in a Bank Account if You Have a Credit Card or Otherwise Owe Money to the Same Bank

Many people do not realize that if they are behind in payments on credit cards, lines of credit, overdraft protection, loans, or other credit lines, and they have their money in an account with the same bank, the bank usually can withdraw funds from your bank account to pay for a credit card or other debt you owe to the same bank.

The best practice is, if you are delinquent on credit cards or other debts to one bank, keep your savings and other money in accounts with a different bank.  Otherwise, you may wake up one morning seeing your bank account emptied.  You might as well kiss that money goodbye.  This may mean you have to change your payroll direct deposit to a different bank.  This small inconvenience could save you many headaches.

Do Not Make the Mistake of Liquidating Your Retirement Accounts to Pay Off Your Debts

So many of my clients have come to me, having cashed in IRA's and 401(k) retirement accounts, to try to avoid bankruptcy.  What frequently happens is that the retirement accounts are gone, a good amount of debt remains, and a bankruptcy case still has to be filed.

These clients could have kept all of their retirment money, eliminated their debts, and had a secure future retirement.  Try to avoid the mistake that so many people make, and regret.

REDUCE YOUR CAR LOAN MONTHLY PAYMENT AND CAR LOAN BALANCE

Many clients come into my office with monthly car loan payments they cannot afford any longer.  Most people's first thought is to give up the car, especially when they owe more on the loan than the car's is worth.

We routinely file cases for clients to help them with their auto loans.  We can reduce the monthly payments significantly, lower the interest rate on the loan, and, if the car's value has dropped below the amount they owe on the loan, we can reduce the loan balance down to the current value of the car.

This procedure has helped many clients keep cars they otherwise would have turned in.  Especially when somebody's income has gone down, they need help to make their car loans more affordable. 

Owners of Multi Family Homes and Mobile Homes Can Reduce Their Mortgage Balances

In Rhode Island, the Bankruptcy Court permits onwers of multi family houses and mobile homes to reduce the amount they owe on their mortgages in a way that few other courts in the United States permit.

I recently have concluded a case for clients who own a multi family house, and through the court, reduced their mortgage balance from $195,000 to $81,500.  My office was able to reduce the number of years that these clients will pay off their mortgage in full from 23 years to 4 years.  We saved these clients 19 years of mortgage payments.

Anybody who owns a multi family house or mobile home should consider whether they would benefit from such a mortgage reduction as well.  My clients have a great feeling that in a few short years they will own their home outright and never need to make a mortgage payment ever again.

Five Time Grammy Award Singer files for Bankruptcy

Many people think that they are the only ones who need help to resolve a financial matter.  In fact, people from every walk of life experiences ups and downs, as this article shows.  Click the link to find out the very famous person who recently sought help from a bankruptcy attorney.

http://www.cnn.com/2013/03/26/showbiz/dionne-warwick-bankruptcy/index.html?iref=allsearch

15 Lies About Bankruptcy

A fellow bankruptcy practictioner in Maryland, Brett Weiss, Esq. has written an extremely informative article entitled "Top 15 Lies About Bankruptcy." 

He clearly repudiates many of the false information about filing for bankruptcy.  I highly recommend that any person considering filing for bankruptcy read this link, which provides useful and valuable information to making an informed decision.

http://www.bankruptcylawnetwork.com/top-15-lies-about-bankruptcy/

The Truth About Debt Consolidation and Debt Management Companies

Many of my clients have trid to avoid filing for bankruptcy by turning to debt consolidation or debt management companies.  Unfortuately, most of these companies promise much more than they every deliver.  Only about 1 out of every 10 people actually pay off their debts in the time they were promised.  The majority of people enrolled in these plans spend so much money and do not realize the results they expected.

Take a few moments to view this link to learn more about the false promises made by these debt management companies.

http://www.nacba.org/Portals/0/Documents/NACBA%20Docs/NACBA%20debt%20settlement%20trap%20consumer%20alert.pdf

http://www.nacba.org/News/ConsumerAlertDebtSettlement.aspx