Attorney Blog

Getting Car Loans with a Foreclosure on Your Credit in St. Louis, Missouri

questions@castlelaw.net (Blog Author)26067 — Tue, 02 Feb 2010 08:00:00 EST

While it is clear that a foreclosure may have a negative effect on your credit report, it is not always clear what exactly that means. Can you still buy a house? Can you still buy a car? Well, it isn’t as simple as just being able to buy a car or home; it is about the conditions under which you can secure a loan. With a foreclosure on your credit, most car lenders will still let you buy a car, but at a very inflated interest rate.

The maximum interest rate, as of the date of this post, in Missouri is 26% and Illinois is even higher. If you try to secure a loan with a foreclosure on your credit report, you will surely be charged close to the cap, if not the cap itself.
If you are thinking that bankruptcy has the same effect on your credit report, you may be mistaken. Filing Chapter 13 bankruptcy in Missouri and Illinois to get protection from foreclosure is usually considered a responsible move, despite the myths that tell you differently. It may, in fact, be easier to secure a car loan with a bankruptcy on your credit report than it would be with a foreclosure.

Now, is this always true? Probably not. There are always instances where lenders go against the grain, but if you can get protection from foreclosure and keep it off your credit report, why wouldn’t you? Wondering what else a Missouri or Illinois bankruptcy lawyer can offer you with Chapter 13 bankruptcy? Request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

Do You Lose Your House in a Chapter 7 Bankruptcy?

questions@castlelaw.net (Blog Author)26065 — Tue, 02 Feb 2010 08:00:00 EST

One of the common myths surrounding bankruptcy in Missouri and Illinois is that you will lose everything you own. Because of this, people are often afraid to explore their options, leaving them without credit card debt help, relief from harassing creditors, and a way to stop their wage garnishment. This belief is simply untrue. In fact, most of our more than 30,000 clients in the St. Louis metro area don’t lose anything in a Missouri and Illinois bankruptcy.

How can you avoid losing property like your home? A very specific set of circumstances must exist for your home to even be at risk. If you have too much equity in your home, for example, the exemptions provided in a Chapter 7 bankruptcy may not cover all of it. But, a Chapter 13 bankruptcy could be a better option for you and one that a great St. Louis Missouri or Belleville Illinois bankruptcy attorney will know to offer you.

There are always exceptions to every rule—and Missouri and Illinois bankruptcy is no different; but the right St. Louis Missouri or Belleville Illinois bankruptcy attorney can help you decide the right moves to keep the things that are most precious to you. Besides, should the fact that this situation might arise prevent you from getting more information about a federal law that could get you a fresh start with your debt? Request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to learn more.

Why Wouldn't You Want Protection from Foreclosure in Missouri and Illinois?

questions@castlelaw.net (Blog Author)26064 — Tue, 02 Feb 2010 08:00:00 EST

After reading the story on Bank of America’s mixed up foreclosures, I wondered how this could happen. Does the average American consumer really not check on something as important as losing their home? Perhaps, they don’t. It seems that with the soaring foreclosure rate in Missouri and Illinois and the continually depressed economy, people are losing hope that there are any options left for help. And, it doesn’t help that the loan modification program that offered us all hope at the beginning of 2009 isn’t delivering the promised results (See Article: Loan Modification Fails More Homeowners).

Luckily, I have good news. Foreclosure doesn’t have to be the end—there are Missouri and Illinois bankruptcy attorneys right around the corner who are ready to help. Missouri and Illinois Chapter 13 bankruptcy stops a foreclosure dead in its tracks and gives a family the time and relief from debt they need to get back on track—and stay in their home.

So, if you can get the protection from foreclosure that you need to keep your family safe and healthy, why wouldn’t you get it? Request a free copy of my ultimate bankruptcy book for Missouri and Illinois, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to learn more about the options that you may not even know you have!

Can Obama's Plans for Change Really Help the Loan Modification Program?

questions@castlelaw.net (Blog Author)25900 — Fri, 29 Jan 2010 08:00:00 EST

Foreclosure statistics came in for 2009 at frighteningly high levels while the results of the loan modification program put forth by the government came back frighteningly low. Terrible combination, huh? It seems that the government has noticed that the loan modification program needs to be fixed if it is going to try to help the one in three homeowners who owe more on their mortgages than their homes are now worth. And, though multiple problems have now been identified with the loan modification program, there hasn’t been a clear plan put forth to fix them. Could such a plan even exist? Experts are still unsure.

Luckily, we can be sure of the ability of St. Louis and Wentzville Missouri and Southern Illinois bankruptcy attorneys to help those needing protection from foreclosure. Missouri and Illinois Chapter 13 bankruptcy stops a foreclosure and allows homeowners to get out from under the overwhelming stress of debt. Chapter 13 bankruptcy can help homeowners all over the states of Missouri and Illinois not only get protection from foreclosure but also find a solution to their credit card debt, stop car repossession, and prevent creditors from taking any more action against them and their family. Plus, it doesn’t come with some of latest dangers that are inherent in loan modification programs. Wondering if you should file Chapter 13 bankruptcy?

Visit our Chapter 13 practice page or request a free copy of my ultimate Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

Bankruptcy Terms To Know: Insolvency

questions@castlelaw.net (Blog Author)25566 — Sun, 24 Jan 2010 08:00:00 EST

What does insolvency mean? Insolvency is a state in which an entity (usually a business or city) is unable to pay its bills as they become due. Insolvency occurs when a company’s debts exceed its assets or when the company does not have the appropriate cash flow to function normally. A company can be in debt without being insolvent, but once their debts begin to affect their day-to-day business, they can be considered insolvent.

Although insolvency is similar to bankruptcy, the two states are not exactly the same. The state of insolvency often leads to bankruptcy as company owners make plans to repay their debtors, pay their employees, and remedy their financial problems. However, entities that are insolvent do not necessarily have to declare bankruptcy. It is assumed that all companies, cities, and counties that declare bankruptcy are insolvent.

Is there a bankruptcy term that you don’t understand? Contact us with your Missouri and Illinois bankruptcy questions.

How Do You Know if Missouri or Illinois Bankruptcy Is the Right Option for Your Small Business?

questions@castlelaw.net (Blog Author)25465 — Fri, 22 Jan 2010 08:00:00 EST

If you are a small business owner that usually means that you’ve followed your dreams to get exactly what you want out of life. Unfortunately, the current economy is not the best climate to keep small businesses afloat and more and more businesses are closing their doors. If you have hit hard times also, you could consider Missouri or Illinois bankruptcy.

“But James, doesn’t filing bankruptcy mean I’ve given up?” No, it doesn’t. In fact, filing bankruptcy means that you’ve taken responsibility for your debts and are willing to make a change. Whether you want to give the business up or simply reorganize the debt to keep your doors open, Missouri or Illinois bankruptcy might be your best option.

As a small business owner, you can actually file a Chapter 13—or even Chapter 7— in Missouri and Illinois. A chapter 7 is typically best when the business has no future, no substantial assets, or too much debt to be able to reorganize and keep the doors open. A Chapter 13 bankruptcy reorganizes the debt to free up enough cash to get you through the hard times—and to continue on your dream. Keep in mind, though, that to be eligible as a debtor, you must have primarily consumer debt. Having your business declare bankruptcy is a separate issue and you would be well-advised to speak with an experienced Missouri and Illinois bankruptcy attorney if that is the path you must take.

Are you wondering what else bankruptcy can do for the small business owner? Request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

Is the Illinois Chapter 7 Means Test Really Different from the Missouri Chapter 7 Means Test?

questions@castlelaw.net (Blog Author)25402 — Thu, 21 Jan 2010 08:00:00 EST

There aren’t many differences between Missouri and Illinois Chapter 7 bankruptcy. In fact, there are hardly any with the exception of the means test. Even the Chapter 7 means tests aren’t vastly different, besides the difference in median incomes and IRS expenses.

The Chapter 7 means test is made up of two parts. The first part compares the median income of a similar family structure to yours to your actual income. If your income is higher, you must move to the second part of the test. That test can be complicated but, if you have the best Fairview Heights or Belleville Illinois bankruptcy lawyer, it will not be a problem to get through. The formula determines your level of disposable income, which then determines if you are eligible for a Chapter 7 bankruptcy.

The subtle differences in Illinois and Missouri bankruptcy shouldn’t cause you a problem but are crucial for your bankruptcy attorney to know. The Chapter 7 means test determines your ability to file for Illinois Chapter 7 bankruptcy and must be performed by a qualified, experienced Illinois bankruptcy lawyer. What else should you expect out of your Illinois bankruptcy lawyer? Request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to find out what you MUST know before you hire any attorney.

The Loan Modification Program Fails to Secure Protection from Foreclosure for Another Missouri Resident

questions@castlelaw.net (Blog Author)25244 — Tue, 19 Jan 2010 08:00:00 EST

News reports have just come in that the loan modification program isn’t living up to its expectations. I had a client experience that only reinforced these reports.

A client just came in last week that was waiting on approval for his loan modification through NACA for 18 months. He was told not to make any payments for the entire 18 months. Now, he has been informed that he was not approved and has found himself $36,000 behind on his mortgage payments. His home is now pending foreclosure. Unfortunately for him, letting it fall behind that far put him in a position where a Missouri or Illinois chapter 13 bankruptcy cannot even help him, as he cannot afford to repay $36,000 during the life of his chapter 13 plan given his current income. He has no choice but to give up the home.

What is even more unfortunate about this story is that he is not the only one to find himself in this same situation. What can you do to avoid being put in this position? Well, any St. Louis or Wentzville, Missouri or Fairview Heights, Illinois bankruptcy attorney would tell you not to wait to start looking at your options. It is also not advisable to purposefully stop making mortgage payments so you can be eligible to apply for a loan modification and, in fact, as the story above shows, it is extremely risky.

This doesn’t mean that you can’t apply for a loan modification but, with only 4% of people getting approved, do you really want to take the risk? Request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know” to learn if Chapter 13 bankruptcy could be an option for you to save your home.

Debt Is One of the Biggest Causes of Marital Problems in Missouri and Illinois

questions@castlelaw.net (Blog Author)25242 — Tue, 19 Jan 2010 08:00:00 EST

The stress that debt can put on a marriage is overwhelming—and is the breaking point for many couples. Many couples that are in debt and do not find a solution end up in divorce. So, how can you avoid becoming part of the ever increasing divorce statistic? Bankruptcy can help get rid of the debt so you can focus on your relationship and not on an impending foreclosure, harassing creditor calls, or a possible repossession.

If a Missouri or Illinois Chapter 7 or Chapter 13 can’t save your marriage, it can still allow you to pre-plan the way your assets—and your debts—are divided. If you file for bankruptcy after a divorce, the debts that you carry from your divorce decree could be non-dischargeable; that means that you can’t get rid of them through bankruptcy. Filing bankruptcy before a divorce is final lets you handle your debts while they are still dischargeable. See my important article on the specific things to remember about filing bankruptcy before or during a divorce by clicking here.

If you are past the point of no return in your marriage, there are strategic reasons you’d want to do it first. Normally, I would recommend getting the most qualified and experienced bankruptcy attorney possible but, in this situation, it is MANDATORY that you find the best attorney in your area. Request a free copy of my Missouri and Illinois bankruptcy book to learn how to find the best attorney in your area.

The State Of Illinois: Bankrupt

questions@castlelaw.net (Blog Author)25186 — Mon, 18 Jan 2010 08:00:00 EST

Bankruptcy laws exist for a reason – but unfortunately although individuals, businesses, cities and counties can file for bankruptcy protection, states cannot. This is bad news for the state of Illinois, which has far more debts than assets and which cannot pay its bills.

Currently, the state of Illinois has a $5.7 billion budget problem – a financial issue that would send most private companies to bankruptcy court for either a reorganization or liquidation bankruptcy. In addition, the state’s liquid assets have dropped below $1 million several times. The state is looking at dire options including raising taxes and cutting state programs and services. Many fear that without bankruptcy protection, Illinois will stop receiving bids from contracts and begin paying employees with IOUs.

While many argue about the causes of Illinois’ recent money troubles, everyone aggress that Illinois’ insolvency will be a serious issue in the coming months and years.

The Best Tips for Coming back after Missouri or Illinois bankruptcy

questions@castlelaw.net (Blog Author)25111 — Fri, 15 Jan 2010 08:00:00 EST

When you’ve decided you’ve had enough suffering from your debt and it is time to file bankruptcy, the hardest part is over. Often, it is hard to see that the events leading up to bankruptcy were the truly stressful parts—and the bankruptcy filing and post-bankruptcy life is easy in comparison. There are, however, a few tips that you may want to know to keep your post-bankruptcy life easy and stress-free.

Be careful with new credit. While many people think that it is too hard to get credit after Missouri and Illinois Chapter 7 or Chapter 13 bankruptcy, this is just untrue. Getting credit is actually the easy part; the hard part is not abusing that credit.
Don’t get yourself right back into the same situation you were in before—needing protection from foreclosure, credit card debt help, and a hiding place from the repo man.

Live smart. Perhaps one of the easiest ways to not get right back into trouble with debt is to live within your means. Don’t spend excessively, keep up with your savings, and stick to your budget.

Exercise caution with credit cards. You can start with a secured credit card that is linked to your bank account. Make your payments on time and gradually build up your credit. Before you know it, you’ll be building the credit score you always wanted.

Loan Modification Group in San Diego Is Invested by the FBI for Fraud

questions@castlelaw.net (Blog Author)25024 — Thu, 14 Jan 2010 08:00:00 EST

It seems that the FDIC’s warning about the prevalence of loan modification scams may have been well needed advice. There have been many scams involving loan modification reported, including a company that victimized two Maryland women with promises of modifying their home loan. This time it was quite a few more people that fell victim to a scam. Edmundo Rubi, Joseph Encarnacion, and Ben and Gloria Hebron now face more than 54 charges, including foreclosure consultant fraud, grand theft and securities fraud, after preying of the Filipino population in San Diego. The group had been investigated by the FBI and the San Diego County District Attorney’s Office and the indictment was sealed yesterday.

It is now more important than ever to be careful who you choose to handle your finances. Since the beginning of the recession, the amount of scammers and fraudulent groups has increased rapidly. Same rule applies if you decide to pursue a bankruptcy. Don’t hire any attorney, even me, unless you first know the questions to ask to find out if he or she is experienced enough to handle your case.

More and more people are beginning to see that bankruptcy is a safer (and more powerful!) way to handle their debt. Wondering if bankruptcy is right for you? Request a free copy of my ultimate bankruptcy book for Missouri and Illinois, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” by clicking here. Careful research is required for any decision you make about your financial future these days. So, why not learn more from an experienced St. Louis Missouri or Fairview Heights Illinois bankruptcy attorney?

Can You Really Escape the Repo Man in Missouri and Illinois?

questions@castlelaw.net (Blog Author)25020 — Thu, 14 Jan 2010 08:00:00 EST

Car repossession is one of the many consequences of being in overwhelming amounts of debt. Having massive amounts of debt to contend with can leave you without a car, looking for protection from foreclosure, and searching for a solution to credit card debt. But can you make it all go away by hiding? One Arnold Missouri man learned the hard way that trying to fool the repo man was not a real way to deal with his creditors.

41 year old Alan Roderick faces state felony charges after he changed the frame on his 2005 Ford Mustang to switch the identification numbers on his car. He attempted to fool the repo man and ended up facing two counts of possession of an item with altered identification, removal of a distinguishing number from a motor vehicle, and defrauding a secured creditor.

Mr. Roderick certainly did not make the right decision, but maybe he was not aware that his car repossession could’ve been stopped with Chapter 7 or Chapter 13 bankruptcy in Missouri and Illinois. A St. Louis or Wentzville Missouri or Fairview Heights bankruptcy lawyer could have stopped his repossession without having to change the frame and hide from the repo man.

Wondering how bankruptcy could save your car from repossession or when to file bankruptcy? Request a free copy of my ultimate Missouri and Illinois bankruptcy book, “Get Out of Debt” by clicking here. With this information, You may not have to hide from the repo man anymore.

Can You Sell Your Home During a Chapter 7 Bankruptcy?

questions@castlelaw.net (Blog Author)24844 — Mon, 11 Jan 2010 08:00:00 EST

A chapter 7 in Missouri or Illinois can take as little as 90 days from start to finish. While it seems that you should be able to just sit tight, life continues on in those 90 days and you sometimes need to make a decision like selling your home. But what if you’ve already filed for chapter 7 bankruptcy? 99% of the time, there is no problem selling your home. The question is whether or not you have equity and how that will affect your case. Depending on your situation, it may even be beneficial.
But, since every situation is unique, it is best to talk to an experienced Missouri or Illinois bankruptcy attorney for free.
Some sell their homes to avoid foreclosure while others do so to catch up on their taxes. Depending on your situation, the trustee may even let you keep a portion of the money after the sale. It isn’t, as some may think, necessary to put off a bankruptcy just to sell your home.

This is yet another great example of why it is imperative to have an experienced and qualified St. Louis Missouri or Fairview Heights Illinois bankruptcy lawyer. The best lawyers will be able to help you decide which move may be in your best interest and protect any other property that you want to keep. What else should you expect from your bankruptcy attorney? You can find the answer to that question along with others like, “Should I file bankruptcy?” or “How can I find the best attorney for my case?” by requesting a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt.” To request your free copy, click here.

Should I File Missouri or Illinois Chapter 7 Bankruptcy?

questions@castlelaw.net (Blog Author)24737 — Fri, 08 Jan 2010 08:00:00 EST

Making the decision to file bankruptcy in Missouri or Illinois is not always as simple as “yes” or “no”—but it doesn’t have to be very complicated. There are a few important factors to consider before you take the plunge but, after 15 years as a St. Louis Missouri and Fairview Heights Illinois bankruptcy attorney, I know that the decision usually becomes clear after you find the right information. Here are a few reasons that you may want to file a Chapter 7 in Missouri or Illinois.

• It can take as little as 90 days. I’m sure your debt seemed to have no end but, with a chapter 7 bankruptcy, there is a foreseeable end to harassing creditor calls, foreclosure notices, and wage garnishments from which you’ve been suffering.

• You could keep most of your property, if not all, and you pay back little to nothing of your unsecured debts. One of the biggest myths about bankruptcy is that you’ll lose everything you have. Most people who file a Chapter 7 don’t lose any property at all. The role of your Missouri or Illinois bankruptcy lawyer should be to protect your property and ensure that you don’t have to pay much—or anything—to do it.

• You can finally breathe a sigh of relief. While this may seem somewhat trivial, don’t underestimate the power of stress. Filing bankruptcy means getting relief from those harassing creditors, getting credit card debt help, getting protection from foreclosure, and getting back to normal.

Still unsure? Request a free copy of my ultimate Missouri and Illinois bankruptcy book, “Get Out of Debt,” by clicking here.

How Can You Find the Right Bankruptcy Attorney in St. Louis, Missouri?

questions@castlelaw.net (Blog Author)24736 — Fri, 08 Jan 2010 08:00:00 EST

Well, naturally, I’m a little biased, but there are some good rules of thumb when searching for the right attorney to handle your Chapter 7 or Chapter 13 bankruptcy case in Missouri and Illinois no matter who you ultimately choose.

• Find an attorney who has enough experience. Experience can be the deciding factor in whether a St. Louis Missouri or Fairview Heights Illinois bankruptcy lawyer can give you protection from foreclosure, true credit card debt help, or help you keep your car. Make sure you check for client testimonials, years of experience, and actual results. Ask an attorney how many cases they’ve actually completed—it may be a sign of how much your creditors will respect your attorney.

• Look for membership in bankruptcy associations. If an attorney is truly interested in getting the latest news and best continuing education, he or she will be a member of a bankruptcy association of some sort. Most are members of the National Association of Consumer Bankruptcy Attorneys (NACBA) but also check if they are members of the National Association of Chapter Thirteen Trustees (NACTT) and the American Bankruptcy Institute (ABI).

• Check for publications. The best bankruptcy attorneys are constantly providing free and current information about bankruptcy to anyone looking. A good measure of how much they know is finding articles, blogs, and news stories related to bankruptcy. If there are any published books, it is an added bonus. This is another sign of respect that the legal community has for his or her skills and experience.

How Will the Foreclosure Rates in 2010 Compare to 2009?

questions@castlelaw.net (Blog Author)24735 — Fri, 08 Jan 2010 08:00:00 EST

Despite efforts by the current administration, experts are predicting that foreclosure rates will remain on the rise for 2010. It seems that we may not have hit bottom yet, with an expected peak in late 2010. According to the Mortgage Bankers Association, the amount of people that are one or more mortgage payments behind or have already entered into foreclosure rose 13.2% in 2009. They predict joblessness to peak in mid-2010 and a foreclosure peak to follow.
St. Louis Missouri and Illinois’ metro-east are right there with the rest of the country with roughly 1,700 foreclosures a month in St. Louis city alone. So, where can these countless victims get the protection from foreclosure they need?

Luckily, there are St. Louis Missouri and Fairview Heights Illinois bankruptcy attorneys who are prepared to help. Since a chapter 13 bankruptcy in Missouri and Illinois carries the power of the federal government, it can stop homes from being sold at auction and prevent creditors from taking any further action.

How can you choose the best St. Louis MO or Illlinois bankruptcy lawyer? While many of these attorneys offer free consultations, it is best to look for an attorney who offers bankruptcy faq, articles, blogs, and free publications to educate you before you even step foot in an office. You can request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” by clicking here.

What Is There to Fear about Chapter 7 Missouri or Illinois 341 Meetings?

questions@castlelaw.net (Blog Author)24734 — Fri, 08 Jan 2010 08:00:00 EST

The idea of meeting with an official from the court or any creditor is often scary for people filing chapter 7 bankruptcy in Missouri or Illinois. And part of my duty as a St. Louis Missouri and Fairview Heights Illinois Bankruptcy attorney is to remove some of that fear and make the process easier. After all, getting protection from foreclosure and credit card debt help should be a relief and not a stressful situation. But, surprisingly enough, the meeting of the creditors, or the 341 meeting, isn’t usually a stressful situation. In fact, creditors rarely show up to the meeting.

Why, after spending weeks or even months harassing you by phone and mail, does a creditor not usually bother to show up to your Chapter 7 Missouri or Illinois 341 meeting? There isn’t much they can do. There are usually several meetings scheduled in a 30 minute time period and the trustee will only meet with each debtor for a brief period of time. Most creditors know that they can’t really ask you any questions or get anything accomplished at these meetings because their debt is discharged whether they like or not. So, unless there is fraud going on, it is very rare you will ever be questioned by a creditor.

Instead, most of the concerns and questions that creditors have are dealt with prior to hearings by email and mail. And that is just another example of why it is important to have an experienced Missouri or Illinois bankruptcy lawyer. The best bankruptcy attorneys can arrange your affairs outside of the hearings so you can continue to focus on getting your fresh start and building a new life.

Do you have more questions about the bankruptcy process? The ultimate Missouri and Illinois bankruptcy guide, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” is available for free. You can request your free copy by clicking here.

Debt: The Good, The Bad, And The Ugly

questions@castlelaw.net (Blog Author)23968 — Sat, 26 Dec 2009 08:00:00 EST

This December we are focusing our bankruptcy library articles on debt: what is good debt, what is bad debt, and how you should go about paying off your debts. The vast majority of Americans have some form of debt, whether it is a mortgage, a car payment, or credit card debt, and as many as 20 percent of those living in the United States are carrying too much debt.

In three separate articles this month, we are exploring the different types of debt and the best strategies for paying off debt. In some cases, individuals and families can re-budget and fight debt on their own. In other cases, the best option to escape from debt and reestablish a normal life is to petition for bankruptcy. Hopefully, these articles can help you better understand your own debt situation and your best plan of action.

Beware of Foreclosure Protection Schemes if You Are In Debt in Missouri and Illinois

questions@castlelaw.net (Blog Author)23937 — Thu, 24 Dec 2009 08:00:00 EST

Two women in Maryland learned that foreclosure protection schemes are not always what they seem—and they learned it the hard way. After falling behind on their mortgage payments due to medical bills , the women clung to an offer labeled “Your Best Hope has Just Arrived.” But instead of getting hope, the women were tricked into signing away the titles to their homes and were left facing eviction. The fraudulent mortgage company was caught and ordered to pay $100,000 to the two victims as restitution.

As any St. Louis Missouri or Illinois bankruptcy attorney could tell you, looking for protection from foreclosure is tricky business. The amount of loan modification and debt settlement scams has simply gone through the roof since the recession. Often, these firms promise to save your home without telling you they are charging hefty upfront fees, offering no legal protection, and putting you in dangerous situations like these two Maryland women.

What these two women didn’t know was that Missouri or Illinois Chapter 13 bankruptcy could have protected their homes from foreclosure, while also helping them stop wage garnishments, getting them credit card debt help, and preventing their creditors from taking any more action against them. To find out more about what bankruptcy is and how it can help you, you can request a free copy of the ultimate Missouri Bankruptcy book, written from my over 15 years of experience as a Missouri and Illinois Bankruptcy lawyer. Saving your home and protecting yourself from foreclosure rescue schemes may just be a click away.

Air Ambulance Trips May Lead to Chapter 7 or Chapter 13 Bankruptcy in Missouri or Illinois

questions@castlelaw.net (Blog Author)23934 — Thu, 24 Dec 2009 08:00:00 EST

When you are in an emergency situation with a life or lives a stake, the first thought on your mind is often not how much it will cost. We’ve become a society focused on the value of an individual life—often leading us to make any effort, no matter the cost, to save a life. And while each life is certainly worth saving, we tend not to think about the financial situation that will result for the injured party. An article on MSNBC reports that an estimated 550,000 patients are flown by medical helicopters and small airplanes for emergencies including car accidents and heart attacks, among other things. The price varies—costing the victim anywhere from less than $12,000 to $25,000 per flight.

It is no wonder that the number of chapter 7 and chapter 13 bankruptcy filings in Missouri and Illinois due to medical debt has been on the rise. As a St. Louis Missouri bankruptcy attorney, I’ve seen more and more cases where people have to be protected from foreclosure, find a solution to credit card debt, and stop their cars from being repossessed by filing bankruptcy in an effort to pay their medical bills.

If you are in a similar situation, you may be wondering, “Should I file bankruptcy?” You can look at our bankruptcy FAQ or request a free copy of the ultimate Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to find out if bankruptcy is right for you. The information is free but the ability the knowledge may be invaluable to getting your medical bills paid.

Could a Family Bankruptcy Have Been the Key to Shakira's Success?

stownzen@castlelaw.net (Blog Author)23933 — Thu, 24 Dec 2009 08:00:00 EST

In a recent interview with CNN, Shakira told the tale of her own modest upbringing. When she was 8 years old in Barranquilla, Colombia, her parents fell on hard times and took responsibility for their financial situation by filing for bankruptcy. She had a hard time embracing the bankruptcy as a child but had a change of heart when her parents showed her what their lives could be like had they not filed bankruptcy.

What 8 year old Shakira didn’t see is that her parents knew when to file bankruptcy. They took responsibility for her and themselves and freed themselves from the consequences of debt. Getting protection from foreclosure, credit card debt help, and relieving themselves from the stress of creditors was the most important thing to do—and now, as the 30 something pop sensation, Shakira sees the power that bankruptcy can provide.

Now, as a Missouri and Illinois bankruptcy attorney at a St. Louis law firm, I can tell you that the rules for bankruptcy are much different now than they were years ago (and on another continent!) but the feeling of being in overwhelming debt remains the same. Luckily, the feeling of getting relief from overwhelming debt has also remained the same.

Shakira has since founded the Barefoot Foundation, a charity to help poor children from Colombia get an education. And she says her success is inspired by her family bankruptcy so many years ago. She isn’t alone in her feeling, either. Many of the famous people who have declared bankruptcy agree that bankruptcy was only a beginning for their future success. You can get all the information you want to know about bankruptcy by requesting my free ultimate guide to bankruptcy, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

Bank of America, Chase follow Citigroup's Christmas Spirit for Temporary Protection from Foreclosure

questions@castlelaw.net (Blog Author)23932 — Thu, 24 Dec 2009 08:00:00 EST

After posting the story on Citigroup’s Christmas grace period for foreclosure filings, I discovered that they weren’t the only ones who were getting into the holiday spirit. Bank of America and JPMorgan Chase have also suspended their foreclosures between December 21st and January 3rd. Though, that still doesn’t mean that you should delay in taking action to get the protection from foreclosure you need.

Missouri or Illinois Chapter 13 bankruptcy can stop your home from being sold at auction and keep your family in their home for the cold winter months to follow. And, with this new found grace period, you can call a St. Louis Missouri or Illinois bankruptcy attorney to get you help before it is too late. Chapter 13 bankruptcy can not only protect your family from foreclosure, but it can also be the solution to credit card debt you’ve been looking for, stop your creditors from taking a percentage of your paycheck, and stop bill collectors from harassing you and your family with threats of lawsuits.

So, accept this extra Christmas gift from your mortgage lender and use it to your advantage. Contact a qualified Missouri or Illinois bankruptcy lawyer that can stop your foreclosure by dialing 866-570-8484. It may just be the best present you can give your family all year.

Merry Christmas from Castle Law Office

questions@castlelaw.net (Blog Author)23927 — Thu, 24 Dec 2009 08:00:00 EST

As the end of the year approaches, I think about the year we’ve had. For many, it’s been tough. Over 1,700 people per month in St. Louis have been searching for protection from foreclosure. Countless more need credit card debt help and suffer silently under crushing amounts of debt. This debt crisis is why I’ve opened up more Castle Law Office locations—and why the books are filling up at both our Wentzville location and our Fairview Heights Illinois location.

So, as we look to the New Year, know that Castle Law office is ready to help you every step of the way with your debt. A St. Louis Missouri, Wentzville Missouri, or Belleville Illinois bankruptcy attorney can help you find a solution to credit card debt, protect you from foreclosure, stop your wage garnishment, and get what you need to get out of debt in 2010. Remember, the best way to ensure your financial future is to get educated. You can request a copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” absolutely free (and that’s not just because it’s Christmas!)

Merry Christmas and Happy Holidays from all of us at Castle Law Office and let’s have a happy new year!

Bankruptcy Terms to Know: Schedules

questions@castlelaw.net (Blog Author)23895 — Wed, 23 Dec 2009 08:00:00 EST

The court website defines schedules as, “detailed lists filed by the debtor along with (or shortly after filing) the petition showing the debtor's assets, liabilities, and other financial information. (There are official forms a debtor must use.)” Your schedules are a snapshot of your financial situation on the day you file your case. It includes everything you own (i.e. bankruptcy estate, see definition here), everyone you owe, and anything else the court needs to know.

Having correct schedules is one of the most important things that you can have—and something an experienced St. Louis Missouri or Illinois Bankruptcy attorney can really help you with. If you are filing a Chapter 7 in Missouri or Illinois, it is part of your Chapter 7 forms. If you are filing a Chapter 13 in Missouri or Illinois, it helps the court determine the proper amount for your Chapter 13 payments. Either way, it is essential for the bankruptcy court to have a complete and accurate picture of situation in order to get you the credit card debt help, protection from foreclosure, and relief you from debt that you need.

Make sure any Missouri or Illinois bankruptcy lawyer that you are considering for handling your case knows how important your schedule really is. Wondering what else you should ask before you hire an attorney? You can request a free copy of my ultimate guide to bankruptcy, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to make sure you learn what you need to know before you hire an attorney or make a mistake that could ruin your case.

What Can Happen to My Car if I Don't File a Chapter 7 or Chapter 13 Bankruptcy in Missouri or Illinois?

questions@castlelaw.net (Blog Author)23893 — Wed, 23 Dec 2009 08:00:00 EST

While missing a few car payments may not seem like a big deal, it can mean that you’ll see your car being towed away by the repo man. Once you start to miss payments, you have to act quickly. You can contact your lender to see if you can lower your payments or add the missed payments on to the end of your term but they have the right to deny your requests.

If you can’t come up with the cash once you are two months behind on your payments, the lender will take your car to be sold at auction. The worst part is that they can do some without warning. So, if it is sold, are you free from the debt? If the amount it is sold for doesn’t cover what you owe, you will have a deficiency balance left and the lender may garnish your wages or levy your bank accounts to collect it.

Luckily, there is a way to stop this terrible chain of events. You can file a Missouri or Illinois chapter 7 or 13 with a qualified St. Louis bankruptcy law firm or Fairview Heights bankruptcy lawyer and possibly get your car back or, at the very least, get any deficiency balance discharged. Plus, an experienced Missouri or Illinois bankruptcy attorney can help you get protection from foreclosure, credit card debt help, and stop those harassing creditor calls. Wondering what else a St. Louis Missouri or Belleville Illinois bankruptcy lawyer can do for you? Request a free copy of my book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” and you can learn where to start when you want to learn how to file bankruptcy.

Bankruptcy Terms to Know: Bankruptcy Estate

questions@castlelaw.net (Blog Author)23862 — Wed, 23 Dec 2009 08:00:00 EST

A Bankruptcy Estate is defined by the U.S. courts as, “all legal or equitable interests of the debtor in property at the time of the bankruptcy filing. (The estate includes all property in which the debtor has an interest, even if it is owned or held by another person.)”

Translation? All of your stuff. Take a picture of everything you own or are entitled to receive on the date of filing and this makes up your bankruptcy estate. So, why is it important for the courts to know about everything that you own? In order to make a plan that will truly help you, the bankruptcy court needs a full picture of everything that you already have. That doesn’t mean that it will be taken away—in fact, an experienced St. Louis Missouri or Illinois Bankruptcy attorney is there to make sure that you can keep the property that is important to you.

In addition, although you don’t own it on the date of filing, the bankruptcy estate also includes your right to receive an inheritance during the six months immediately after filing. Any other property received after filing would not be included.

To truly get credit card debt help, protection from foreclosure, and any other help that is required to prevent your creditors from taking action, you’ll want to be fully honest with your Missouri or Illinois Bankruptcy lawyer and with the court about your bankruptcy estate so you can get on your way to a true fresh start.

Extreme Home Makeover Leaves More Than One Family in Need of Protection from Foreclosure

questions@castlelaw.net (Blog Author)23628 — Fri, 18 Dec 2009 08:00:00 EST

It seems that Extreme Makeover recipient Brian Wofford isn’t the only one in trouble after getting their homes completely redone by the popular ABC show. In 2004, a modest 1, 212 square foot home was transformed into a mansion—more than tripling in square footage and adding a gym and a hot tub, among other amenities. The new property was reassessed and assigned higher property taxes and the family refinanced it twice, leaving Wofford owing $770,000.
The family had tried to get a loan modification for the last two years but could never get it approved. Now, there home is scheduled to be sold out from under them unless they can get a three month loan modification completed by Christmas Eve.
If you are ever wondering when to file bankruptcy, receiving a foreclosure notice is a pretty good indicator that it is time. Chapter 13 bankruptcy can offer protection from foreclosure for people just like the Wofford family. It can stop foreclosure and reorganize the rest of your debt to make your chapter 13 payments feel like the burden has been lifted off your shoulders. While the Wofford family wouldn’t necessarily call a St. Louis law firm for a Missouri or Illinois bankruptcy lawyer, you certainly can.

St. Louis has had one of the worst years for foreclosure in its history—but there is help available. You don’t have to let your home be sold and leave your family with no place to live. The Castle Law Office website can take your order for my ultimate debt guide. It includes answers to bankruptcy FAQ, offers help for you to figure out if you should file bankruptcy, and provides you with the latest news in the world of bankruptcy. Plus, I offer it for free. To order your copy of “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” click here. And, if you think that bankruptcy can help you, we would love to talk to you absolutely free. You can call us at 1-866-570-8484 today to get you and your family on your way to a fresh start.

Figure You Can Erase Your Holiday Credit Card Debt with Chapter 7 Bankruptcy in Missouri or Illinois?

questions@castlelaw.net (Blog Author)23627 — Fri, 18 Dec 2009 08:00:00 EST

Before you go hog-wild on Christmas shopping, you might want to take caution of you are thinking of filing bankruptcy after the holidays. Every once in a while, someone will come into my office needing a credit card debt fix if wondering, “Should I file bankruptcy?” A Missouri or Illinois Chapter 7 bankruptcy may be a credit card debt solution for some; but if you plan on getting out of paying your bills by filing on December 26th , any St. Louis Missouri bankruptcy attorney will probably tell you that it is a mistake.

One of the many benefits of Chapter 7 bankruptcy is that you can erase things like credit card debt. But, if you have incurred a lot of credit card debt right before filing, your creditors might be suspicious that you had no intention of paying them back in the first place. If that is the case, they can sue you during your bankruptcy proceeding—claiming that the debt was fraudulent and should still have to be repaid after the discharge of your bankruptcy.

That doesn’t mean that you have to sit around until next year wondering when to file bankruptcy but it does mean that you shouldn’t spend money on your credit cards like it’s money in your bank account. If you truly want to get the credit card debt help you need and Chapter 7 bankruptcy is in your future, put away your cards and focus on making a fresh start in 2010.

How can you get your fresh start? A Missouri or Illinois bankruptcy attorney can save you from drowning in debt by answering all your questions before you even step foot in an office. And the best Missouri and Illinois bankruptcy lawyers offer it to you for free. You can order my free ultimate debt guide, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” by clicking here.

A Few Things to Consider When Filing Bankruptcy in Missouri or Illinois after a Divorce

questions@castlelaw.net (Blog Author)23506 — Wed, 16 Dec 2009 08:00:00 EST

Divorce is one of many things that can change the way a bankruptcy goes for a person who has decided to file. Does it make it harder? Not necessarily—there are just different precautions that must be taken when dealing with an ex, all of which an experienced Missouri bankruptcy lawyer should be prepared to handle.

One of the most important things for you to keep in mind is to make sure you are being completely truthful about your financial situation. If you are making alimony or child support payments, your ex spouse will get a notice that you’ve filed for bankruptcy. They will also get a notice if they have co-signed on any of your loans. That means that they can look at your bankruptcy schedules, which in itself is no big deal. But, if you have omitted say, a source of income or bank account, your ex-spouse could report it to the trustee.

Now, it is important to keep in mind that there are plenty of divorcees that go through bankruptcy without a hitch but, if you have hired a highly experienced Missouri or Illinois bankruptcy attorney, you can get it done right the first time. At Castle Law Office, we’ve helped over 30,000 people get credit card debt help, protection from foreclosure, help stop their wage garnishments, and more. And we’ll talk to you for free about how we can help you do the same without having to worry about your ex.

Are you one of the 1,700 people that need protection from foreclosure this month?

questions@castlelaw.net (Blog Author)23505 — Wed, 16 Dec 2009 08:00:00 EST

The St. Louis Post-Dispatch posed the question, “Have we reached the new normal?” after the number of foreclosure filings in St. Louis (which didn’t even include the county or Illinois metro area) grew 4% last month. St. Louis has bounced between 1,500 and 1,700 foreclosure filings for most of the last two years. And that number doesn’t begin to count those who just received a notice of default. Those numbers add up to one in every 64 local homes being scheduled for a foreclosure auction so far this year. The Post-Dispatch article ends on a dismal note by saying, “With unemployment around 10 percent and expected to stay there for months, and no mortgage modification strategy yet to succeed on a wide scale, this fact of life could be with us for awhile.”

While the author of this article may have an accurate picture of the foreclosure rate, he missed something at the end. While foreclosure may have to be a fact of life, it does not have to be the end of life as we know it.

Whether you are in St. Louis city, St. Louis County, or Metro-East Illinois,protection from foreclosure is available with chapter 13 bankruptcy. A Missouri Bankruptcy attorney can stop your foreclosure dead in its tracks—and helps you get a handle on the rest of your debt by reorganizing it into one, low monthly payment. Wondering how to file Missouri or Illinois bankruptcy? You can learn more by visiting our section of Bankruptcy FAQ or by requesting a free copy of my book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.” You can learn what bankruptcy is, if you should file bankruptcy, how to find the best bankruptcy attorney in your area, and more. And you might just find the information you need to avoid becoming just another statistic.

IMPORTANT NOTE: If you have a sale date on your home, it is important to take action immediately. You can contact our office for a free by clicking here.

Credit Card Debt Statistics

questions@castlelaw.net (Blog Author)23211 — Thu, 10 Dec 2009 08:00:00 EST

Here are some recent statistics involving credit card debt in America according to the most current research:

•    Almost 80 percent of American households had at least one activated credit card in 2008.
•    Each adult American has an average of 5.4 open credit card accounts.
•    An estimated 98 percent of college undergraduates already have a credit history. Forty percent of college freshmen have a credit card when they arrive on campus.
•    Consumer debt in 2009 reached $100 billion.
•    The average credit card debt per household in the US is $8,329, according to the Neilson report.
•    The average college graduate has $20,000 in debt.
•    Forty percent of credit card holders pay off their debts each month or carry less than $1,000 in debt at any given time.
•    One out of three Americans say that it has become more difficult to pay of their credit card debts in recent times.

Illinois Bankruptcy Attorney Opens New Castle Law Office Location in Fairview Heights!

questions@castlelaw.net (Blog Author)23191 — Thu, 10 Dec 2009 08:00:00 EST

I have been helping people in Illinois for many years now get relief from their overwhelming debt through bankruptcy. Previously, they have trekked across the river to the St. Louis office to meet with me and start on their way to financial peace of mind. Now, to better serve those citizens of Illinois, we have opened a Castle Law Office location in Fairview Heights.

The new office is located at 5007 N. Illinois (Route 159), Suite 4. We will be helping the good folks In Madison and St. Clair counties along with their surrounding towns and counties get debt relief with Chapter 7 and Chapter 13 bankruptcy. We opened the doors at the new office yesterday and, already, the staff at the new office has informed me that the appointment books have filled up. That means that, if you are in financial trouble, you should contact the office immediately to avoid possibly long delays in getting the help you need to stop wage garnishments, stop harassing creditor calls, stop car repossessions, and stop foreclosure.

The office is staffed with familiar faces that have been working at our St. Louis location for over 14 years. Having well-trained, ready-to-help staff was one of my biggest concerns when opening this new office. Now, we can immediately start helping the community get out of debt with experienced, caring staff. This is probably the most vulnerable time for a family and I am glad to be there when they need help the most.

I’m proud to say that you can now get the same reliable service that has helped over 30,000 St. Louis families get debt relief without having to cross the river! You can make an appointment for free with an experienced bankruptcy attorney at our new Illinois location by calling 618-206-3535 or you can contact Castle Law Office online by clicking here.

Our Own James Brown Hits the Best Seller List!

stownzen@castlelaw.net (Blog Author)23138 — Wed, 09 Dec 2009 08:00:00 EST

Owner and founder of Castle Law Office James Brown has hit the best seller list with his fifth publication, “Shift Happens.” The book was written as part of his venture with America’s Premier Experts and was released on November 19th, 2009. The book is a guide for the average American to survive and thrive in the current economy. Since that release, it has been a hit and named a best-seller in only four days in three different categories, including Direct Marketing, Entrepreneurship, and Communications.

Due to his over 15 years of experience in bankruptcy, James was asked to write a chapter on how the small business man can cope with the current economy and continue on to success. In his chapter, titled “Getting Past Debt: Regroup, Restructure, Rebuild!” he details the most common problems that small business owners go through as they follow their dreams and even includes a guide to dealing with business debts. James’ chapter gives hope to the future of small business with realistic advice that owners can actually use to become successful.

You can order your very own copy for $21.95 of “Shift Happens” by visiting borders or amazon online. You can also view the press release on the St. Louis Post-Dispatch website. The Castle Law family wants to congratulate James on this great achievement!

The Dangers of Bankruptcy Misinformation

questions@castlelaw.net (Blog Author)23115 — Wed, 09 Dec 2009 08:00:00 EST

With the invention of the internet, the amount of information that is readily available to us skyrocketed. Think about how easy it is to look up “the capital of Guam” or “the number of people with red hair.” But with that information came the inevitable load of misinformation. Incorrect information is dangerous—causing people to count or discount things based on rumor and opinion.

Researching bankruptcy is just the same as anything else. While there may be a lot of truth out there about bankruptcy, there are also plenty of myths, misinformation, and misnomers. So how do you tell fact from fiction? Just yesterday I found a blog harping on the benefits of the “Bankruptcy Home Equity Loan.” It seems that the author has misnamed a bankruptcy process called a “motion to incur debt,” provided the wrong facts about it, and forgot to address any possible outcomes or downsides. This blog is most definitely the wrong information—but it isn’t always as easy to tell.

The best decision is to take information from sources you know and trust, like your lawyer or a government website. (You can tell which sites are connected with the government because they end in “.gov”) There are a lot of amateur blog writers out there that are dying to share their opinions on bankruptcy and while some of them may have some correct information, it is best to steer clear of them if the author has no credentials as an expert. I have written a book on getting help with your debt that could also help you combat the problem of misinformation. You can request a free copy of my book by clicking here. It has information that you need to know about bankruptcy without the worry that you are being misinformed.

How Difficult is the Paperwork Involved in Bankruptcy?

questions@castlelaw.net (Blog Author)23063 — Tue, 08 Dec 2009 08:00:00 EST

If you file by yourself, the answer to that question is very difficult. It isn’t easy to remember everything you own and owe. You are signing these papers under oath—which means that all of these papers are reviewed in a court of law and not including debts or property has serious consequences. Leaving something off could be considered perjury and if on purpose, can lead to a denial of discharge or even time in federal prison.

Even if you left something off your paperwork unintentionally, you could ruin your bankruptcy case. You could also forget to list one of your creditors, which is another mistake often made on bankruptcy paperwork. Incorrect paperwork may mean that the bankruptcy judge won’t grant you a discharge or the creditor left off is not discharged. That means you could’ve done all that work and spent time and money and then not get any relief from your debts. Is it worth the risk?

An experienced bankruptcy attorney knows the right questions to ask you to make sure your paperwork is correct and complete. After helping over 30,000 families with their debt, I know how important it is for them to get that discharge. At our office, we have a very thorough process for making sure that the paperwork is done accurately and quickly and we still offer a review for our clients to make sure we’ve covered all of their debt. It is important, however, to make sure you ask any attorney that your paperwork is complete and that you understand everything before you sign your name.

November: A Focus On Emergencies That Lead To Bankruptcy

questions@castlelaw.net (Blog Author)22891 — Fri, 04 Dec 2009 08:00:00 EST

This month in our library section, we are focusing on some of the most common reasons that individuals and families file for bankruptcy in Missouri and Illinois. Much of the time bankruptcy is not caused by years of frivolous spending, but rather a life emergency that you were not prepared for and that you cannot pay for.

Specifically, our new bankruptcy informational articles discuss three major reasons bankruptcies happen:

A medical emergency. If you or a loved one becomes sick or is involved in an accident and does not have health insurance – or if you have health insurance that does not properly cover your medical needs – you could quickly find yourself with thousands and even hundreds of thousands of dollars in debt.
A divorce. Divorce tears families apart – and it can also ruin the years that you have spent working toward financial security. Divorces are not only expensive, they can also change every aspect of your financial life for the foreseeable future.
A job loss. Jobless rates are still climbing, and although many economists think that the recession is over, some have been out of work for over a year. After jobless benefits run out, many families run through their savings and then have nowhere to turn.

Bankruptcy Terms to Know: Avoidance

stownzen@castlelaw.net (Blog Author)22817 — Thu, 03 Dec 2009 08:00:00 EST

An avoidance is a legal action under the bankruptcy code that permits the debtor to eliminate some kinds of liens that interfere with an exemption claimed in their property. As you may know, an exemption is a protection placed on a piece of property that makes it beyond the reach of your creditors (for more information, see our definition of exemption.)

The way an avoidance action works is that it takes some liens that are considered secured (tied to a piece of your property) and makes them unsecured. Unsecured debts are often completely eliminated in a Chapter 7 bankruptcy.

The best way to determine if a lien can be avoided is to speak with an experienced bankruptcy attorney. He or she will be able to determine the best way to keep the property that is important to you and get rid of the debts that are preventing you from living the life you want.

A Home Town Favorite Gets Back on Its Feet

questions@castlelaw.net (Blog Author)22816 — Thu, 03 Dec 2009 08:00:00 EST

Every news source in town is reporting the good news: Charter has emerged from bankruptcy. They have cut their debt by $8 billion. The St. Louis-based cable company had been suffering under $21.7 billion of debt and been unable to get refinancing, like so many of the homeowners across America.

So, what now? It seems that Charter is more determined to be better than ever. They will apply for a listing on the Nasdaq in 45 days (or so) and continue to serve their 4.9 million customers in 27 states. What can we learn from Charter? Their bankruptcy is a great example of what bankruptcy is really meant to do.

Charter has reinvented themselves and emerged a stronger company who is less downtrodden with debt. They are ready to improve their service and start turning a profit. Their bankruptcy is just another example of how refreshing it can be too eliminate debt and start over. It is no different for people like you and me. Bankruptcy is a new beginning—It’s a powerful tool that lets you rediscover exactly who you want to be and create the best path to getting there.

Still not sure bankruptcy is the right move for you? You can request a free copy of my book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” and learn more about the warning signs of too much debt, the options for eliminating it, and how to avoid the most common mistakes that you can make when you are under it.

Paying Taxes with Credit Cards May Not Be the Best Move

questions@castlelaw.net (Blog Author)22815 — Thu, 03 Dec 2009 08:00:00 EST

It has become easier than ever to pay with credit. Even some of the local bell ringers are saying, “Is this Visa or Mastercard?” So, the IRS has made it easy for you too—but, before you put your taxes on your credit card, you may want to think about where you are headed.

Some think that when they are in debt they know they can no longer handle that they have nothing to lose. These same folks end up putting bills they normally would’ve tried to pay on their credit card in hopes that a Chapter 7 bankruptcy will wipe out their credit card debt. While a Chapter 7 does eliminate your debt, you shouldn’t purposefully put expenses on your credit card because you think you’ll never have to pay it back. In fact, it may be considered fraud. It is actually the same as transferring a balance right before filing and will be pursued as a fraudulent transaction by a credit card company.

It isn’t different when it comes to taxes. If you put your taxes on your credit card, you can only eliminate that credit card debt if the taxes would have been eliminated any way. In other words, putting your taxes on your credit card won’t give you a better chance at having them eliminated. Plus, your credit card company can still come after you for the taxes you put on your card if it is not eliminated in a Chapter 7. There are very specific rules on when back taxes can be eliminated and these rules don’t change because you put it on a credit card.

An experienced bankruptcy attorney will help you navigate through problems like this—and others—that could be hard to handle. These situations are easily avoidable if you have an attorney who understands the stress you are under and exactly how bankruptcy can help you relieve it.

Will bankruptcy affect your security clearance?

questions@castlelaw.net (Blog Author)22611 — Mon, 30 Nov 2009 08:00:00 EST

It is natural to wonder exactly how a bankruptcy will affect your life. And your job is often something you’ve dedicated a substantial amount of time and energy to. If you have a job that requires a security clearance, you may be wondering how it will be affected once you’ve decided to file for bankruptcy. Could your security clearance be revoked?

Never in my more than 15 years experience have I had a client’s security clearance revoked. Of course, that doesn’t mean that it couldn’t happen, but it is a pretty good indicator that it isn’t likely. The factors that go into approving a security clearance are different for different types of jobs but, typically, they just want to make sure you are not the kind of person who may feel like you would have no choice but to share top secret information or do so in exchange for money. Frankly, being under a lot of debt makes you more likely to do that.

Filing bankruptcy, however, shows your employer two very positive things. One is that you have nothing to hide. You must be truthful and outright with all of your information when going through a bankruptcy and your employer will know that you have the ability to tell the whole truth about your financial situation. The other is that you are willing to take responsibility for your debt. Bankruptcy is about being responsible for the debts that you have incurred and doing what you need to take care of them.

The Middle Class Gives Bankruptcy a New Feel

questions@castlelaw.net (Blog Author)22457 — Wed, 25 Nov 2009 08:00:00 EST

The latest study on people who are filing for bankruptcy, done by Harvard Law School professor Elizabeth Warren and Ohio University professor Deborah Thorne, is showing that the middle class has become the new face of bankruptcy. With more than 100,000 middle class families filing for bankruptcy every month in 2007, the study shows that this shift happened even before the recession—and it has only continued since then.

Many of the folks who are now filing bankruptcy are college-educated homeowners who have really just fallen on bad times. So, what does this study really say about the people who file bankruptcy? Well, I think this article and others who have come out with similar stories all come to the same, unspoken conclusion: Overwhelming debt can affect anyone.

Filing bankruptcy doesn’t mean you are a bad person. In fact, it means that you are a good person, willing to take responsibility for your debt and the future welfare of your family. And while chapter 7 and chapter 13 can help you in different ways, they both relieve the stress that debt can cause you and the ones you love. So, put your energy towards something positive and start looking at ways to relieve your debt.

Missouri Ranked 44th Happiest State Out of 50

questions@castlelaw.net (Blog Author)22272 — Mon, 23 Nov 2009 08:00:00 EST

In a study conducted by LiveScience, Missouri was found to be in the bottom six of states in a ranking on overall happiness. The survey takes six types of well-being into account, including: overall evaluation of citizens’ lives, emotional health, physical health, healthy behaviors, and job satisfaction. At first, I was surprised to see that statistic. And then, I remembered how many people are living with unnecessary burdens.

After helping over 30,000 families through bankruptcy, I see many people suffering with their financial situation. Having overwhelming debt affects every part of your life—intruding in your thoughts during the day and often keeping you up at night. Your thoughts cause you to worry and live in fear about your future. That fear and worry takes its toll on your well-being—even causing physical manifestations like head and stomach aches.

So, I’d like to continue to do my part in raising the rank for Missouri. I will continue to help stop wage garnishments, harassing creditor calls, repossessions and foreclosures in Missouri and Illinois. But, I can’t do it alone. You must take responsibility for your own happiness. If you would be happier without looking out the window for the repo man or screening your calls in fear of creditors, come in and talk to us. We’ll help you find the relief you need to be the happy person you want to be.

Could Bankruptcy Have Saved Nicholas Cage from Foreclosure?

questions@castlelaw.net (Blog Author)22268 — Mon, 23 Nov 2009 08:00:00 EST

Could a chapter 13 bankruptcy have saved Nicholas Cage’s homes from being gone in sixty seconds? (Well, maybe it took a little longer. I couldn’t resist the reference.) Cage’s two New Orleans properties sold for $2.3 million and $2.2 million at an auction last week. His foreclosures were the result of $6 million in unpaid back taxes dating all the way back to 2007. So, could I have helped Mr. Cage?

Absolutely, if I were licensed in the state of Louisiana. I certainly could have stopped his foreclosures. A chapter 13 bankruptcy stops a foreclosure due to back taxes. It will actually allow the person to keep their home and pay back their taxes throughout the life of their bankruptcy, which Mr. Cage surely could’ve done after his next installment of National Treasure.

So, even though it is too late to help Nicholas Cage, there is still time to help you. If you are facing foreclosure because of unpaid taxes, give our office a call. We can talk to you for free about what your options are for keeping your home.

Something to Remember this Thanksgiving

questions@castlelaw.net (Blog Author)22049 — Thu, 19 Nov 2009 08:00:00 EST

While it is fun to think of Thanksgiving as a great big feast, complete with mashed potato eating contests and pie bake-offs, I always try to get my family back to the basics in the holiday season. While my kids are almost grown now, with Devyn being the youngest at 16, I find that the cheesy lessons that we used to teach them about being thankful still ring true in their near-grown up lives.

This spirit is no different at our office than it is at home. Many people that first call our office feel like they’re at a low point in their lives. They are downtrodden with hefty debts, harassing phone calls, piles of overdue notices, and worse. They don’t feel good about what’s happening in their lives. But, when they come into our offices, their spirits lift. Why? Because if today is your lowest point, you can only go up from here.

The feeling of being out from under the burden of debt is sometimes hard to imagine when you’re in the thick of it. However, as you’ll hear me say, doing nothing changes nothing. The minute you start doing something about your situation is the minute that you can start to clearly see just how much there is to give thanks for—and start giving it.

So, that is what I want to bestow upon you this Thanksgiving season. Be thankful for your friends, your family, and that tomorrow is a new day.

Does Bankruptcy Cause Divorce?

questions@castlelaw.net (Blog Author)21850 — Mon, 16 Nov 2009 08:00:00 EST

Bankruptcy doesn’t cause divorces or lead to divorces – but financial stress does. In fact, money troubles are cited as the leading cause of divorce. Anxiety over paying the bills, creditors harassing you daily, and other financial stresses can add undue strain to your marriage. While filing for bankruptcy can help with many of these financial stresses, it may not help any underlying problems in your marriage.

When our clients file for bankruptcy, it is very important for them to understand why they are in financial straits to begin with – perhaps they have faced an unforeseeable emergency like a job loss or medical emergency. Or perhaps they never properly learned how to best manage their money. In some cases, a lack of communication between partners regarding money matters may add to the issue.

Bankruptcy doesn’t cause divorce any more than any other major life change causes divorce. While the time period before a bankruptcy filing can be stressful, and while life after bankruptcy can be an adjustment for everyone, many, many couples survive and thrive in the years after their bankruptcy. In other instances, financial troubles and bankruptcy may be symptoms of deeper issues in a union. Bottom line: bankruptcy won’t lead to divorce, but it probably won’t solve marital problems, either.

The Truth about Debt Settlement Is Out

questions@castlelaw.net (Blog Author)21845 — Mon, 16 Nov 2009 08:00:00 EST

While I’ve written several articles on the downsides to debt settlement, it wasn’t clear that the rest of the world was on board. After all, debt settlement does sound really great. And, in this economy, every solution to debt problems is sounding a little bit better. The internal filters we usually have when we hear commercials that promise outrageous things like settling your debt for “pennies on the dollar” don’t work as well as they used to. We just can’t be as cynical as we once were.

Fortunately, the king of financial papers, the Wall Street Journal, is announcing the truth about debt settlement, too. The article reads, “But the television and radio ads that blare ‘pay just 50% of what you owe,’ too often neglect the fine print noting that debt settlement—which entails deliberately failing to pay your bills until you reach an agreement with your creditor to pay only a portion of the total owed—works only for a few consumers who attempt it.”

The article continues on about the disappointment you can face even if you can get a debt settlement firm to help you. It seems to me, and apparently the Wall Street Journal, that debt settlement just isn’t the best way to keep your family from foreclosure, harassing creditor calls, and the other bad stuff that comes with too much debt.

So, what is the best option? Everyone’s situation is different and it is often hard to tell which method of relieving debt will work the best. Certainly, bankruptcy is among the safest options. And it is federal law, so it is a very powerful option allowing you to control the terms of repayment, if any, and not the lender, as in the case of debt settlement. While debt settlement promises to settle your debt for “pennies on the dollar,” a chapter 7 bankruptcy in most cases can actually eliminate most of your debt completely. In addition, it takes care of all of that other bad stuff; it stops creditors from harassing you, removes wage garnishments, and gets you on your way to a fresh start. Of course, the decision is up to you but you’d be well-advised to get all the information you can before jumping into any “quick fixes.”

What's the Most Important Thing to Do When You're Facing Foreclosure?

questions@castlelaw.net (Blog Author)21697 — Fri, 13 Nov 2009 08:00:00 EST

Getting a foreclosure notice in the mail sometimes feels like the bottom has dropped out of your life. The safety net is gone—and no one is going to put it back up for you. The moments you spend reading the notice and after are often filled with confusion and worry. It is natural to be unsure. Whatever your next move is, the most important advice I can give you is this: Don’t Wait.

I understand that piece of advice may be easier said than done, but waiting to act can only put you in a worse situation. You must take charge of your own destiny.

Start by exploring your options. Some consider loan modification as their first option. But, if you are already in foreclosure, it may not be your best option. Many of the biggest lenders are approving less than 5% of mortgages for a modification. To make matters worse, you often aren’t notified that you don’t qualify for a loan modification until right before your foreclosure date—leaving you with little time to find help elsewhere.

Some also consider debt settlement, but the prevalence of scams and hidden fees has left some without a home and still drowning in debt. Still, some consider bankruptcy. Chapter 13 bankruptcy has helped thousands of people save their homes and keep their families safe. It actually stops foreclosure dead in its tracks and helps you get a handle on the rest of your debt. If you need help making your next move after a foreclosure notice, you can call us to set up an appointment where a qualified consultant can talk to you about your situation and help you figure out the best solution. And, of course, it’s free.

Are There Lawyers That Specialize in Foreclosure?

questions@castlelaw.net (Blog Author)21696 — Fri, 13 Nov 2009 08:00:00 EST

There sure are. They are the same lawyers that practice bankruptcy. A chapter 13 bankruptcy actually stops a foreclosure dead in its tracks. How? As soon as you file chapter 13 bankruptcy, an order called an “automatic stay” is issued.
While an automatic stay can do many wonderful things for you, in the event of a foreclosure, it stops your lender from moving forward with the sale of your house.

While a chapter 13 bankruptcy can help you save your home, chapter 7 can still help you if you have chosen not to keep it. Filing a chapter 7 can hold up a sale to give you time to take care of the rest of your debt—and find another place to live. It also will eliminate any deficiency balance due if the house sells for less than what is owed. In most cases, it lets you save money by eliminating your debt—even the debt tied to your home.

There is more than one way to put your life back together after a foreclosure. You can make an appointment with us today and start saving yourself and your family from foreclosure.

You Can Still Give Your Tithing in Bankruptcy

questions@castlelaw.net (Blog Author)21511 — Tue, 10 Nov 2009 08:00:00 EST

When going through bankruptcy, most people like to get back to the basics. They want to stop worrying about overdue house payments, harassing creditors, and wage garnishments and focus on the more important things in life—like family and friends. For many, those more important things include God and their church. So, it’s no wonder that people sometimes ask me at their free consultation, “Can I still give my church tithing?”

Fortunately, in both Chapter 7 and Chapter 13, a debtor can include an expense for charitable contributions, which include church tithing. And, with the weight of debt off your shoulders, it is easier to contribute. In fact, many end up giving more money than they did before their bankruptcy.

Bankruptcy protection truly provides a way for you to focus on the things in your life that make you happy. Contributing to your church and the community within it can be a powerful thing. It can make you feel like you’ve given something back to an organization that has given you so much. Bankruptcy doesn’t limit that—it, instead, empowers you to do the things that give you great satisfaction in life and move on from the burden of debt.

If you would like to free yourself to focus on the things that matter to you, you would be well-advised to talk to the best bankruptcy attorney in your area about what bankruptcy can do for you.

Looking for a House While on a Budget?

questions@castlelaw.net (Blog Author)21288 — Fri, 06 Nov 2009 08:00:00 EST

Many of the stories you hear from sellers these days center on how much they had to drop their pricing. Sounds like a great time to buy then, huh? But, if you’ve been through a bankruptcy or are under the weight of some debt, you know that everything still must be done on a budget. So, here are a few tips to keep in mind while trying to find the best deal.

• Be patient. If you rush into a house that sounds like the best idea you could find at the moment, you may end up missing a house that fits your personality and your budget.
• Let the house stay on the market for a while. Typically, sellers are still listing their houses at the highest price they can get. After 90 days, they will most likely lower the price—or at least become more willing to negotiate.
• Check the current state of the home. Has the current resident lived there for a short time or a long time? You may get an
impression of how desperate they are to sell the home, which gives you a little bargaining power. Does it need a lot of repairs? If so, the overall price of the home should be discounted.

Looking for a home is no small feat, even in this economy. If you take a step back and think clearly about what you can afford, you may find yourself with a little more patience—and the perfect home.

Obtaining a Discharge in a Chapter 7 Bankruptcy

questions@castlelaw.net (Blog Author)21226 — Thu, 05 Nov 2009 08:00:00 EST

First, let’s clarify what a discharge really is. A discharge is the finish line for bankruptcy. It releases the debtor from certain debts—and prevents creditors from trying to collect it. Translation: No more harassing phone calls at midnight, wage garnishments, letters filling up your mailbox, or burden from that debt.

“Sounds great, James, but doesn’t it take forever to get your debts discharged?” Actually, no. You can obtain a discharge in as little as 90 days from the day of your filing. That’s right, 90 days. Pretty small chunk of time after suffering for months or years in debt, huh? Now, every case is different. Some cases take longer than others depending on the specifics of each situation—but, in general, it won’t take much longer than 90 days, even with some complications.

Not sure if a Chapter 7 bankruptcy is right for you? Many of our clients weren’t sure either until they read through the free book that we offer or came in for their appointment. The important thing to remember is that you don’t have to live with the burden of debt forever. If you’d like to talk to us for free, you can contact us right away.

Can You Afford to Deck the Halls This Season?

questions@castlelaw.net (Blog Author)21066 — Tue, 03 Nov 2009 08:00:00 EST

With Halloween already passed, we have entered the spending season. Between getting a handle on those Halloween bills and creating more bills for Thanksgiving and Christmas, this is the perfect time to get into real trouble with debt. MSN Money had some great tips for helping you through this expensive season.

Know how much you are spending. It is easy to lose track of how much you are really spending on gifts, food, and decorations when you get carried away by the Christmas spirit. Just keep in mind the shock you’ll receive in January if you aren’t keeping track of how many times you are swiping that credit card.

Don’t overdo it. Don’t put yourself into debt just because you want to get everyone an impressive amount of gifts. Be realistic about what you can afford; after all, the best gifts come from the heart!

Don’t wait until the last minute. At some point, we are all guilty of procrastinating but it doesn’t pay off around the holidays. Often, trying to pay for all the presents at once will make your next credit card bill give you the chills. Space out your gift buying so you can stick it in your budget.

Get a gift receipt. Unless you are absolutely sure, don’t spend a bunch of money in stores with no return policy. It could leave you feeling guilty and end up costing you more in the long run.

Hopefully these tips can help relieve you of the burden of debt that could inevitably crush the Christmas spirit we all love to enjoy. If you are already in trouble with your debt, you may want to explore the option of Bankruptcy. It has helped many families get through the holiday season—and an appointment to talk to someone about your debt may just be the best gift you could give yours.

Will Thanksgiving Cost As Much As It Did in 2008?

questions@castlelaw.net (Blog Author)20916 — Mon, 02 Nov 2009 08:00:00 EST

The costs of everything have risen. From shoes and phones to cranberries and yams, we’re all paying a little bit more these days. Last year, the cost of Thanksgiving rose 5.6%, going from $42.26 to $44.61. That is a bigger rise in pricing than we’ve seen in years with 2005 and 2006 both seeing an increase under 3.7%.

So why is it costing us more to have our feasts? Food is a necessity. When the going gets tough, the things that people don’t need are thrown out of the budget and we’re left with only what we must have. And we must have food. So, grocers can raise the price of food and we’ll still have to buy it.

Fortunately, economists aren’t predicting as high of an increase for 2009. Regardless of the predictions, we will still be spending more. And, most likely, spending for Thanksgiving will just be a precursor to the real debt that we’re left with after Christmas.

Are there any good solutions? I’ve actually helped many families with their holiday bills. Because so many people are buying the holiday supplies on credit, I can help them with a Chapter 7 Bankruptcy. In most cases, a chapter 7 can wipe the credit card debt that brings down a family’s holiday spirit and let them start fresh. Relieving the burden of debt makes it easier to give thanks for the things that really matter, like health, family and friends.

Is There Light at the End of the Recession Tunnel?

questions@castlelaw.net (Blog Author)20831 — Fri, 30 Oct 2009 08:00:00 EST

The Associated Press reports that third quarter growth is raising the hopes of Americans everywhere. The recession, which has been going on since December of 2007, may finally be lightening up. How did it happen? Consumer spending is up more than 22%. A lot of that increase was a result of the well publicized cash for clunkers program. Another government incentive, the $8,000 tax credit for first-time home buyers, resulted in a 23% increase on housing projects. But, when the government stops offering these incentives, will the economy be continue to get better?

It seems that the fate of America lies where it always has: in the hands of Americans. It is now more important than ever to be responsible. Unfortunately, things beyond our control often lead us down the path to debt. Many people don’t realize that bankruptcy has helped many Americans—a projected 1+ million this year—become more responsible.

In most cases, bankruptcy can:
•         Help you understand what you can and cannot afford
•         Improve your credit score by giving you a clean slate from which to move up
•         Stop you from increasing your personal debt
•         Keep your family safe by stopping creditors from making harassing phone calls, saving your home and removing wage garnishments so you can have the money you need to get your life back on track

If it is time for you to take responsibility for your debt, you would be well-advised to schedule a free appointment with the best bankruptcy attorney in your area.

This Isn't Working Anymore, Visa

questions@castlelaw.net (Blog Author)20692 — Wed, 28 Oct 2009 08:00:00 EST

And this time, it isn’t me—it’s you. Breaking ties with your credit card is harder than just walking across the kitchen to get the scissors. It often means cutting ties to your easiest way of spending; and maybe that’s a good thing. Credit cards can really get you into trouble and, when they do, the credit card companies only make it worse. They’ll hike up your rate or lower your limit, either of which doesn’t exactly help you pay your bills. So what’s the best way to tell your plastic pal it’s over?

One option is to close the account. If your rates are rising and you aren’t paying your balance in full, it is costing you money right out of your pocket. “But James, won’t it lower my credit score to close my card?” Well, maybe, but it is too hard to say by how much or for how long. Plus, having too many open accounts can lower your score too. It seems that it would be safer to go with something that may cost you some money as opposed to something that will definitely cost you more money.

You can open up a new credit card account to make up for the loss in credit points—but you’ll definitely want to set some ground rules before you jump back in. You could try a smaller credit union instead of a big bank. A small bank may have fewer tendencies to change your account without warning. You should also set a budget that you can stick to for your credit cards.

If you can’t secure another credit card because of your payment history or low credit score, you may want to consider options to relieve your debt. A chapter 7 bankruptcy actually wipes most of your debt and gives you a clean slate to start from—and build good credit. In most cases, filing the bankruptcy actually improves someone’s credit score, assuming they don’t make late payments on anything after filing.

When Is It Time to Get Help With Your Debt?

questions@castlelaw.net (Blog Author)20549 — Mon, 26 Oct 2009 08:00:00 EST

It is often hard to determine when it is time to take action about your debt. It starts with a few late notices for bill payments, then you start getting some harassing phone calls, and then you start becoming concerned with your credit rating. It all comes as a whirlwind and, before you know it, you’re drowning in debt. If you do nothing, you will soon face lawsuits, judgments, and garnishments of your paycheck.

So when is it time to start looking for the best bankruptcy attorney? It is hard to make a general rule for everyone. Some people call the minute they start getting phone calls but others will wait until they actually get their wages garnished, their car repossessed, or a foreclosure notice in the mail. Whatever your situation may be, ask yourself “Are the consequences of not paying my debts worse than the costs or paying them?” The answer to that may give you a good indication of where you stand. Doing nothing changes nothing.

Fortunately, the best bankruptcy attorneys will talk to you for free so you can see if bankruptcy can help you. It may be the best place to start—and the most freeing decision you’ve ever made.

Your Bank's Mistake May Be Your Gain

questions@castlelaw.net (Blog Author)20397 — Thu, 22 Oct 2009 08:00:00 EST

Every so often, a case comes up at our firm where a bank forgot to complete the paperwork to put a lien on a car’s title when they grant the loan. And while I’d love to say, “Wahoo! Free Car!” I know that isn’t the case. The difference is that your obligation and the bank’s obligation to the car are separate agreements. Your part of the paperwork, called a “security agreement,” assures the bank that you understand your obligation to pay and, should you stop, the bank has the right to take the car back from you.

The part of the loan process that is sometimes forgotten is called, “perfecting the lien.” It acts as a big sign to all other parties who may be interested in your collateral (people looking to buy or creditors looking to repossess) that the bank gets to take action first. If it is indeed forgotten, the creditors or buyers haven’t had proper notice that they are not the only interested parties and may be able to go after it.

This process gets a little hairy during bankruptcy but a Chapter 13 might end up helping you. If the bank forgets to perfect the lien prior to a Chapter 13, you could keep it by merely paying the market value to your car lender. If they didn’t forget to perfect the lien, in most cases you will owe the full contract amount plus interest. What does all this mean? If your bank makes a mistake, a Chapter 13 bankruptcy may help you keep the car for much less than you bargained for.

Will You Put Your Next Offering on Plastic?

questions@castlelaw.net (Blog Author)20395 — Thu, 22 Oct 2009 08:00:00 EST

An article was released on MSN yesterday that was meant to get a few laughs but left me a little stunned. Do you know who is now accepting payment on a credit card? Along with government offices, vending machines, airplanes, fast food drive-thru windows, phones, bridges, and toll roads, credit cards are now being accepted in church and at Salvation Army kettles. You can put good will on plastic now?

It makes me think, “What kind of world are we living in?” Unfortunately, the answer is a world where the idea of putting off payments until next month is accepted. And while some may be able to handle the delayed spending, I know all too well that others cannot. If you are having trouble saying no to credit card offers, think about these facts for a second:

2009 has seen a record high in credit card delinquencies.

Late payments have risen 40%.

According to an article by Saskia Scholtes of the Financial Times Limited, payments that were at least 60 days late have hit 3.75%, which is a record in the United States.

The worst of it is that people are adding to this debt every day. With one careless swipe, people are spending money they can’t even see. Are there options for help? Chapter 7 Bankruptcy actually wipes out your debts to give you a fresh start. If you are under credit card debt, you would be well-advised to contact an attorney who can help you get the relief you need to live the life you want.

Are the Repossession Laws in Illinois Different Than Those in Missouri?

questions@castlelaw.net (Blog Author)20250 — Mon, 19 Oct 2009 08:00:00 EST

In Illinois, your car can be repossessed as soon as you are late with a payment. Many creditors won’t take your car this first time you are late, but they are legally allowed to do so. If you have paid more than 30% of the total purchase price of the car, you can get your car back within 21 days of the date of repossession but the price is a hefty one. You have to payback all of the payments owed, pay any late charges, and pay the costs of the repossession. That payment is too large for most people to make, especially if they cannot afford their payments. If you have paid less than 30% of the purchase price of your car, a creditor can require the entire balance to be paid back before you can have your car.

Many find themselves leaving their car to be sold at auction—but are you free from your car loan after that? Not necessarily. If the car is sold at auction for less than you owe, then you will still owe the difference. For example, if your car loan is $15, 000, but your car only sells for $11,000, you will be responsible for coming up with the other $4,000. To collect this, creditors can get a judgment and then garnish your wages or freeze your bank accounts.

So, no, the laws are not vastly different in Illinois versus Missouri. However, this is one common solution to stop repossession in both states. A chapter 13 bankruptcy can stop car repossession in both states or even get your car back after it has been repossessed. If you think you might miss a payment or have already missed a payment, you would be well-advised to contact an attorney experienced in repossession immediately.

Why Are Retirees Filing Bankruptcy?

questions@castlelaw.net (Blog Author)20126 — Fri, 16 Oct 2009 08:00:00 EST

I read an article yesterday that announced the 55 and older crowd as the most likely to file bankruptcy. Is this a coincidence? I don’t think so. Bankruptcy provides protection for all people with debt but it has some extra benefits for seniors. Assets in IRAs and other retirement accounts are protected in bankruptcy filings. Depending on your state, it is usually 100% protected. However, I wouldn’t just run out and dump a bunch of money in an IRA. As in most cases, if large contributions were made within three years of filing, they could be held to be fraudulent and not protected. That means that seniors will get to keep their safety net that they’ve worked all their lives to build. Plus, they can get rid of the debt that has burdened them for their whole lives.

Most people who’ve reached the later years of their lives have assets to protect. They have the home they have raised their family in. They have the car they taught their son or daughter to drive in. And they have a lot more at risk when the creditors start calling. They’ve also got big bills to pay. In retirement, tax bills can be pretty hefty. Many of them are also trying to manage a house payment, credit card payments, and car payments on their income from social security. After living their lives on a regular income, having to switch to a low fixed income does not always make it easy to take care of all of the bills. It’s no wonder that they are willing to take responsibility and protect a life they’ve spent all these years building.

America has always taken responsibility for protecting their seniors and bankruptcy is just another way to do that. Do you have more questions about what bankruptcy can do? Now, you can request a free copy of my book: Get Out of Debt.

What Bill Collectors Are Allowed to Do (And What They Aren't!)

questions@castlelaw.net (Blog Author)19982 — Wed, 14 Oct 2009 08:00:00 EST

One of the most common issues that people have when they come into my office is their harassing creditor calls. They call during the day, at night, before work, after work, and sometimes even during work. They’ve even been accused of calling someone so much that it caused them to have a heart attack. But what is it exactly that they’re allowed to do?

First of all, it’s against the law for a bill collector who works for a collection agency to call you at unreasonable hours, usually considered before 8 a.m. or after 9 p.m. The Fair Debt Collection Practices Act prevents them from harassing you, using abusive language, using false or misleading statements, adding unauthorized charges, and more.

They also shouldn’t be calling you at work, bothering your relatives, etc. The problem is that many debt collectors don’t always do as they’re told. And while a debt collector from a collection agency is supposed to follow the rules, a member of the collection department of your creditor may not have the same set of rules to follow.

You have to keep in mind that debt collectors have a legitimate claim. While they shouldn’t be harassing you, they are trying to collect a debt that you owe them—and they will continue past harassing phone calls. They usually escalate into more than the routine call to set up a payment date. I have handled cases where the calls turned ugly, including vulgar language, screaming, and even physical threats. They can actually get a judgment against you and garnish your wages, seize your bank deposits, or put a lien against your property.

At my office, you can stop harassing creditor calls as soon as you retain me. Filing bankruptcy can prevent all of the actions that creditors take against you and, best of all, you can get a handle on the debt that you owe them. If you are receiving harassing creditor calls, you can help yourself by making an appointment with us. And, as always, the appointment is free.

Be Wary of "Free" Credit Reports

questions@castlelaw.net (Blog Author)19878 — Mon, 12 Oct 2009 08:00:00 EST

With all of the talk about identity theft and the importance of good credit, it is hard not to be tempted by the idea of getting your credit score, especially for free. Commercials urge that in order to be safe, you must monitor your score on a regular basis. But before they hook you with their catchy jingle, you might want to pay attention to what you are really getting.

Consumers are entitled by law to a free credit report but that only means a record of your borrowing and repayment history—not the numerical scores. You can get a free credit report every 12 months from AnnualCreditReport.com but you have to pay extra to get your numerical score. Websites like Credit.com and CreditKarma.com are now offering a glimpse of your credit report for free by providing information on how your score is calculated, what you can do to improve it, etc.

You have the option of purchasing your numerical score but be wary of the fine print. Many companies that provide you with a numerical score will continue to charge you a monthly fee until you cancel their service—and most people don’t realize that they’ve signed up for their credit card to be charged every month. You could go three or four months before you realize that you’ve been paying for their service every month; and by then, it is too late to get your money back from most companies.

Do You Have to Pay Back Your Mortgage After a Foreclosure?

questions@castlelaw.net (Blog Author)19726 — Thu, 08 Oct 2009 08:00:00 EST

While I try to help as many people as I can avoid foreclosure with Chapter 13 bankruptcy, there are still some folks who think that it will cost them less money to surrender their home. And it seems like they are right. After all, doesn’t the bank just take your home and call it even? Not necessarily.

If your home has been auctioned and sold at foreclosure, the creditors still may come after you. You can be held responsible for a deficiency balance—the difference between what you owe on the home and what it is sold for. For example, a man owes $100,000 on his mortgage. He lets his home go to foreclosure but it only sells for $75,000 at auction. That man is now not only without a home, but he also owes his creditors the remaining $25,000 difference. The creditor can and will file suit, obtain a judgment and can levy your bank account or garnish your paycheck.

Letting your home be foreclosed on can actually leave you in a worse situation than you were in before. It’s no wonder that I’ve had more and more calls from folks hoping to stop their foreclosure. If you are facing a foreclosure, you would be well-advised to contact a bankruptcy attorney immediately to prevent entering a situation that has ruined many people’s lives.

How Soon Can You Get Creditors to Stop Calling in Missouri and Illinois?

questions@castlelaw.net (Blog Author)19725 — Thu, 08 Oct 2009 08:00:00 EST

The first question I often get when someone comes into my office is, “When will those %$#@! creditors stop calling?” When you come in to discuss filing a chapter 7 or chapter 13 bankruptcy, you can be free from creditors calls the moment retain me. And no, I’m not a miracle worker. An experienced bankruptcy attorney is just able to use the law to help you get peace of mind.

So how does it work? We have a “creditor line” to which all of your creditors will be referred. Any questions they have or comments they may need to make to you can be taken care of by our office. Make sure you ask any attorney you’re thinking of hiring if they provide this extra service to help you while you are preparing to file your case. I think you’ll find that most don’t.

All you need to do to prevent harassing creditor calls is call to set up a consultation. The appointment is free—but not having to live in fear of who is on the other end of your phone line may be priceless.

Bankruptcy And The Public Record

questions@castlelaw.net (Blog Author)19653 — Wed, 07 Oct 2009 08:00:00 EST

One common concern that those who file for bankruptcy voice is that everyone will know that they petitioned for bankruptcy. However, although the list of people and companies who file for bankruptcy is on the public record, the chances are small that anyone will find out unless you tell them.

While companies and celebrities often make the papers for their financial mistakes, debts, and bankruptcies, a regular person will not make the papers. If someone wanted to find out whether or not you have declared bankruptcy, they could find out in theory, but in our experiences almost no one wants to do the footwork or even thinks to check.

In the end, the most likely way that someone will know if you've declared bankruptcy is if you tell them yourself - or if you tell someone who might spread gossip. If you keep your filing to yourself, however, you will probably not be the talk of the town.

2005 Bankruptcy Abuse Prevention and Consumer Protection Act

questions@castlelaw.net (Blog Author)19576 — Tue, 06 Oct 2009 08:00:00 EST

What is the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act, and how did it affect those filing for Chapter 7 and Chapter 13 bankruptcy?

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) was signed in to law by George W. Bush. It is a series of amendments to federal bankruptcy law that makes it more difficult to declare bankruptcy and that better prevents those who are able to pay their debts from petitioning for Chapter 7 bankruptcy. The new bankruptcy law made it harder for both businesses and individuals to declare bankruptcy.

The bankruptcy amendments prevented those with high incomes from declaring Chapter 7 bankruptcy though it still offers the Chapter 13 bankruptcy option. The new law also allows a judge to dismiss a Chapter 7 bankruptcy petition if he or she thinks that the debtor in question is abusing the system.

The best way to navigate the new bankruptcy laws is to talk to an experienced bankruptcy lawyer.

Can Bankruptcy Affect Gifts to Children?

questions@castlelaw.net (Blog Author)19510 — Mon, 05 Oct 2009 08:00:00 EST

Bankruptcy won’t affect any funds set up for your children as long as they are handled correctly. You can open an account under the Uniform Gifts to Minors Act of the Uniform Transfers to Minors Act. While the parent will remain in charge of these accounts until the child reaches adult age, the money put in cannot be taken back.

How does this help your child? The account is set aside specifically for your child and you cannot draw money out of it to pay your own bills—making the purpose of the bank account clear.

However, you have to be careful on when and how much is transferred into this account in relation to the date you intend to file Bankruptcy. Why? If you transfer a lump sum of money from a general checking to a UTMA within 2 years of filing bankruptcy, it could be looked at as if you were hiding an asset. In some cases, a bankruptcy trustee can avoid this transfer and get the money back to pay creditors.

It is hard to know that you’ve fully protected your children’s funds when setting up these accounts. I know as a parent of 3 that ensuring your child’s future successes is very important. If you find yourself in this situation, it is important to contact a bankruptcy attorney who can make sure you keep gifts to your children safe.

How Much Can A Credit Rating Really Mean?

questions@castlelaw.net (Blog Author)19415 — Fri, 02 Oct 2009 08:00:00 EST

You hear all this talk about credit scores and their importance—but what does a credit score really mean? Your credit rating is a way to keep track of how you’ve handled your credits and debts. Paying your bills on time is one way to raise your credit score. Conversely, if you made a late payment on your credit card or your rent or defaulted on a loan, it goes on your credit report and lowers your score.

Why is it important? Your credit score affects your ability to secure loans and get credit cards. Would you loan money to someone with a history of late payments or no payments? Probably not. The credit industry thinks the same way.
You should be doing all that you can to improve your credit score. Check your credit report and make sure every detail is correct—from your address and phone number to the balances and payment history on your loans. Of course, paying your full payments on time will improve your score too.

Contrary to popular belief, filing for bankruptcy has let many people actually improve their credit score. Since Chapter 7 bankruptcy clears your debts, it provides an opportunity to start from scratch and rebuild your credit the right way. If you are behind on your payments, it is important to look into your options to start improving your credit today.

Can I Get Rid of My Student Loans by Filing Bankruptcy?

questions@castlelaw.net (Blog Author)19217 — Wed, 30 Sep 2009 08:00:00 EST

Before the Bankruptcy code was amended in the late 90s, it was easier to put student loan debts into a chapter 7 bankruptcy. Now, according to Bankruptcy Law, you can only discharge student loans if you show your loan payment causes “undue hardship” on you and your family. To show undue hardship, you have to be physically unable to work and have little to no chance of becoming employed in the future. This standard has been narrowed even further by Bankruptcy judges that consistently rule you cannot have any source of income to be considered under “undue hardship.”

If you are suffering from student loan debt, you aren’t alone. About 60% of students graduate with debt—and the amount of that debt has increased almost 20% in the last two years.

So what can you do? If you are suffering from more than just your student loan payment, getting rid of your other debts may free up enough cash to give you an easier time with your student loan payments. In a chapter 7, you can eliminate debts, bills, and financial obligations and keep almost everything you own.

You would be well-advised to discuss your options with an attorney experienced in debt relief. He or she might be able to show you a logical path to get back on track with your student loan bills.

What Are the Warning Signs That Your Debt Settlement Firm May Be a Scam?

questions@castlelaw.net (Blog Author)19061 — Mon, 28 Sep 2009 08:00:00 EST

Many Americans are considering any option possible to relieve their debt. While I see many taking the safest, most reliable route with bankruptcy, some still are looking into the uncertain world of debt settlement. It is hard to wade through the information given to you by debt settlement companies—especially when so many of them are dishonest or fraudulent. I read some warning signs in an article on USA Today that I'd like to share with you. If you have decided that debt settlement is right for you, keep these things in mind.

• Be wary of early payment. Since their fees are not regulated by the government like bankruptcy attorneys, debt settlement firms often charge big fees before the job is even done. This is usually a good indication that they won’t work that hard for you because their payment won’t be tied to the results of your settlement.

• Many debt settlement firms claim that they can get 30 cents on the dollar but with a bankruptcy, under federal law, in most cases you will pay nothing. If the debt settlement firm makes claims that sound too good to be true, they usually are.

• They will not be able to protect you from lawsuits. They may also claim that they can eliminate all of your debts. This is one of the most common tactics used by fraudulent debt settlement firms.

• They also don’t have the authority to change your credit report—your debt settlement will be on there. Creditors are the actual parties that make changes to your credit report. When a creditor agrees to settle a debt for less than the amount owed, they will report it as such on your credit report. This will likely have the same effect on your overall score as filing a bankruptcy case.

The moral of this cautionary tale is to make sure you have fully researched your options before you make a decision on relieving your debts. Filing bankruptcy with an experienced attorney can be the best option for you and a safer avenue to take.

FDIC Shows Concern for Loan Modification Scams

questions@castlelaw.net (Blog Author)18819 — Wed, 23 Sep 2009 08:00:00 EST

As discussed earlier this month , foreclosures are at an all time high—and the credible banks are not necessarily prepared to handle it. Big companies like Bank of America and JP Morgan Chase are approving only a small percentage of the people that apply for loan modification, forcing homeowners facing foreclosure to look to loan modification firms for relief.

The FDIC issued a warning to “beware of foreclosure rescue and loan modification scams.” The subtitle reads, “If it’s too good to be true, it probably is.” And, just like debt settlement, the truth begins to surface about loan modifications. Hefty upfront fees and written agreements that stray from what you discussed with the company are often a sign that you may need to investigate your company further. Many other warning signs, however, are not as easy to identify and can easily be passed over by consumers.

I have many clients that come in to see us after they find out that loan modification offices have no legal protection to offer, no method of stopping harassing creditor calls, and no real plan for helping them with their debt. If you are in danger of defaulting on your mortgage, you may want to consider more than just loan modification. There are many types of bankruptcy relief. More importantly, there is a specific type that will allow you to save your home and get the legal protection you need to maintain a normal life. If you think you may need help with your debt, you would be well-advised to speak with a bankruptcy attorney that can provide you straight answers and a real legal perspective on your options.

What Is Being Done About Debt Settlement?

questions@castlelaw.net (Blog Author)18705 — Mon, 21 Sep 2009 08:00:00 EST

Every morning on my way to the office, I hear the same commercial. It promises anyone who suffers from credit card or medical debt the chance to march into their banks and proclaim that they don’t intend to pay their debt. I know, I know, you are saying, “But James! That sounds great!” And in a perfect world, you would be right. Unfortunately, 15 years of experience in the debt relief business has told me that it just isn’t true.

In July, 13,000 credit card holders were the victims of fraud by a Florida based group of debt settlement firms. Stories like these are hardly newsworthy anymore. You could probably write an entire newspaper about scams carried about by debt settlement agencies. The internet and yellow pages are filled with advertisements for debt settlement firms—and how will you ever know if it is a scam? The principle idea of debt settlement is flawed anyway. It settles your debt for a hefty fee and still can’t protect you from the legal ramifications of debt.

The FTC took a strike against the credit repair industry with Operation Clean Sweep. So, how are we fighting debt settlement scams? Bankruptcy takes a stand against this sort of fraud. It provides a legal way for consumers to get relief from their debt—and protects them from harassing creditor calls, wage garnishments, and other legal actions taken by creditors. Before deciding that debt settlement is an option for you, you would be well-advised to find out the truth about bankruptcy and how it might be the best—and safest—way to get relief.

Life After Bankruptcy: Save On Utilities

questions@castlelaw.net (Blog Author)18676 — Mon, 21 Sep 2009 08:00:00 EST

Being financially responsible is imperative in the years after you have declared bankruptcy, but in many cases there are easy ways to save money in your own home without sacrificing comfort. Here are a few tips on how to keep your utility bills lower and save money in your journey after bankruptcy:

· Turn down your thermostat. One degree doesn't sound like much, but it can save you one percent of your energy bill each month. Turning it down five degree will save you five percent.

· Replace your light bulbs with LED or fluorescent lights. Although they cost more initially, they will save you money in the long run.

· Unplug electronics you are not using, like your cell phone charger. Anything that is plugged in is using energy - and costing you money.

· Time your showers. Even cutting one or two minutes from your shower will save 700 gallons of water per month.

These tips not only save you money each month - they also conserve resources and help the environment.

Is The Housing Crisis Over?

questions@castlelaw.net (Blog Author)18675 — Mon, 21 Sep 2009 08:00:00 EST

With the first time homebuyer tax credit, a strong summer of home sales, and a growing number of new constructions, some signs point to a recovering housing market - but are we out of the woods?

Many point to the dropping rate of foreclosures across the country - the rate of foreclosures dropped by one percent from July 2009 to August 2009. However, the rate of foreclosures is still up 18% from this time last year.

Another consideration is the continuing weak economy. As long as unemployment numbers are high and as long as many are losing their health insurance coverage along with their jobs, families will continue to struggle to pay their mortgages or find themselves facing an unexpected financial or medical emergency. In addition, the new homebuyer tax credit may take extra inventory off of the market and act as a temporary solution, but it comes to an end in a matter of weeks. Unfortunately, we don't yet know what the near future holds - for those nearing foreclosure, for those with upside-down mortgages, or for new homebuyers.

New Credit Card Laws May Change Debt in America

questions@castlelaw.net (Blog Author)18558 — Fri, 18 Sep 2009 08:00:00 EST

I’m sure you get tons of credit card offers in the mail. They all come with tempting offers of low interest rates and no annual fees. But, before checking that box that says, “Yes! Send me my new card!” I ask myself a few questions. How many credit cards do I really need? Does the fine print tell me something different than this great offer?

I realize that a number of people don’t ask themselves these questions. The numbers are so staggering, in fact, that the President has signed a bill attempting to help those suffering through credit card debt.

The Credit Card Accountability, Responsibility, and Disclosure Act attempts to keep credit card companies from using those all too familiar tactics that credit card companies use to keep us paying the premium rates.

Credit card companies are limited on when they can raise their rates. They can still, however, raise rates anytime on new balances with 45 days notice.

There are new restrictions on fees and age limits for being approved for a credit card. The laws have also eliminated double cycle billing (charging interest on debt paid the previous month), change the way your payments are allocated, increased the time period you have to pay your bill, and extended the expiration dates for gift cards.

Though credit card companies will be more lenient, you are still being held responsible for your actions. If you have gotten in over your head in debt, you will still need to seek help.

A Foreclosure Can Affect More Than Just Your Credit Report.

questions@castlelaw.net (Blog Author)18557 — Fri, 18 Sep 2009 08:00:00 EST

Getting a foreclosure notice in the mail can be devastating. The home that you have built for you and your family over many years can be taken from you in a matter of weeks. But, when you decide to accept your foreclosure, you may be forgetting something.

With the foreclosure crisis in full swing, the negative effect it can have on our children is becoming more apparent. By 2010, experts are predicting that almost 8 million kids will have been the victim of a foreclosure.

What does that mean? That means 8 million kids will have to pack up all of their toys, move schools, experience overcrowding, or lose their feeling of security. It also means that less money will be flowing into your city to support school programs for safety and health.

Chapter 13 bankruptcy can stop a foreclosure. You can prevent them your children suffering the emotional trauma of having to leave their home and build a new life. If foreclosure can’t be avoided, the battle may not be over. You can still be held responsible for the debt that you owe to your mortgage lender if the home is not sold for at least the amount you owe—and they can garnish your wages to get it back. Chapter 7 bankruptcy can erase this balance and allow you to start a new life for your children without the worry of debts from foreclosure coming back to haunt you.

For more information, please visit the St. Louis Bankrutpcy Blog.

Even Celebrities Are Starting Over with Bankruptcy

questions@castlelaw.net (Blog Author)18328 — Mon, 14 Sep 2009 08:00:00 EST

It goes without saying that is shouldn't be a shock that there are some famous names in the news; the shock is that they are being associated with bankruptcy. Actor Stephen Baldwin, baseball star Lenny Dykstra, and actress Kim Basinger have all filed for bankruptcy protection recently. The consequences of overspending and not using a budget apply to everyone. Bankruptcy is a system built into the law to help people get control of their finances and it doesn’t exclude athletes and actors.

It has included Cyndi Lauper, who filed for bankruptcy after her first attempt to get into the music business. It has also included Donald Trump, who filed for bankruptcy after a failed casino venture. It even included famous fighter Mike Tyson, who filed for bankruptcy after he could no longer handle his mounting bills.

At the end of the day, all of these people are similar. They recognized a situation they could no longer handle and took responsibility for it. Now, our TV screens are filled with stories about their successes. They allowed themselves to move on with their lives and you can too.

America Reinvents and Bankruptcy Redefines

questions@castlelaw.net (Blog Author)18195 — Fri, 11 Sep 2009 08:00:00 EST

According to an article from MSNBC, President Obama has claimed the economy has stabilized. As America begins its slow recovery, the President wants to completely focus on relieving ordinary Americans. He plans to give towns hit hard by the recession a chance to "reinvent themselves" through a system of manufacturing grants.

Of course, the President's biggest challenge, as it has been through his entire campaign, will be to keep America positive. He asks Americans to be patient for the job market to rebound while the government sees through its initiatives that are separate from the stimulus package, which was aimed at helping big business.

I support the ability to reinvent yourself. I help people remake themselves everyday-not through grants or tax cuts, but through bankruptcy. Perhaps many of the stigmas associated with bankruptcy can be lifted as we allow America to reinvent itself. Bankruptcy, after all, is a reinvention. People with overwhelming financial situations are able to get a hold of their bills, help their credit return to normal, and start fresh.

Bankruptcy gives you a new start. It provides opportunities for you to take care of things that are really important, like your family. In this economic climate, it is especially clear that financial hardship falls on everyone. In essence, bankruptcy is a relief to your personal recession, providing you with more opportunity to be positive, be responsible, and succeed.

So, I urge you to redefine bankruptcy. It is time to think outside of the box. Are you ready?

Loan Modification May Not Be the Way to Save Your Home Anymore

questions@castlelaw.net (Blog Author)18161 — Thu, 10 Sep 2009 08:00:00 EST

There is no argument that preventing foreclosures is good for the housing market and even better for the home owner; but it seems the usual fall back, the loan modification, isn’t what it used to be.

Foreclosures are now at a record high—and expected to hit 2 million this year. It seems that companies like Bank of America and JP Morgan Chase are not prepared to handle it either.

Bank of America has only been able to modify 4% of loans that were more than 60 days past due.

The problem could be that the banks are overwhelmed with the staggering amount of people who’ve defaulted or they are feeling that the future of loan modifications is grim.

Foreclosures need to be stopped and bankruptcy can be the way to do it. More and more people are coming to the realization that bankruptcy isn’t so bad—and it is worth keeping their family from total crisis.

Are you behind on your mortgage? Do you want to know how bankruptcy can help you? Request a free copy of the latest debt guide, "Get Out of Debt: Secrets Your Creditors Don’t Want You to Know," and learn how to keep you and your family in your home.

Car Repossession: It Doesn't Have to Be a Desperate Situation

questions@castlelaw.net (Blog Author)18054 — Tue, 08 Sep 2009 08:00:00 EST

According to an article on Fox, a Kansas City man crashed into the side of his girlfriend’s house Saturday night. As it turns out, he was running from the repo man.

Car repossession is one of the biggest concerns that people have when they first come to see me. Under current law, once your car payment is considered delinquent (usually 60 days), it can be repossessed. Once your car is sold at auction, you can’t get it back. Plus, if the car is sold for less than you owe, they can garnish your wages to collect the rest of your debt.

This entire situation could have been prevented if he had taken a realistic look at his financial situation before he got himself into this much trouble. Bankruptcy can save your car from repossession and possibly retrieve it after it has been auctioned.
Now the question is: How will the driver afford to fix a car that he couldn’t even afford to make payments on?

The driver will need to start looking at some serious options for relieving his debt. He would be well-advised to contact a bankruptcy attorney that can help him avoid making these hasty (and poor) decisions.

How can you avoid this situation? Researching the warning signs of too much debt could give you a better idea of when the right time is to ask for help. You can start by requesting a FREE copy of my ultimate consumer guide, "Get Out of Debt."

Warning Signs That You Are in Financial Trouble

questions@castlelaw.net (Blog Author)17949 — Fri, 04 Sep 2009 08:00:00 EST

Do you know the warning signs of too much debt? Many people out there think that if they aren't behind on all of their bills or if their debts are getting paid by new (and maybe riskier) ways, they are not in trouble. That is why I've put together some questions to ask yourself about your situation--if you answer yes to any of these questions, you are probably already in financial trouble whether you realize it or not.

Are you spending more than 20 percent of net income on credit card bills?

Are you dipping into your savings to pay your monthly bills?

Are you using credit cards to pay for necessities, like groceries, because you don't have the cash?

Do you have more than 2 or 3 major credit cards?

Are you overdue on any of your bills?

Have you been denied additional credit?

Think about the answers to these questions. Did any of the answers surprise you? Knowing what you know about your situation, would you lend yourself more money? It is time to request my free consumer guide, "Get Out of Debt: Secrets Your Creditors Don't Want You to Know."

Budgeting Tips: Increasing Income and Reducing Expenses

questions@castlelaw.net (Blog Author)17864 — Wed, 02 Sep 2009 08:00:00 EST

In order to have a budget that works, you have to make it all it can be. So, take a look at your situation and determine if any of these options could increase your income.

Earned Income Tax Credit. Check with a tax professional to see if you are eligible for this tax perk. It could add enough money to make the difference.

Government Programs. If you qualify, unemployment compensation, food stamps, and other assistance programs through the government could save you some extra dough.

Social Security or Disability Benefits. If you are over 62 or have been injured and can't work, these programs are designed to provide you with assistance.

You've increased your income--but how can you reduce your spending? Look at these tips for saving your cash (and your budget!)

Eliminate the temptation. If you know you overspend on every trip to Target or buy anything you see near the checkout counter at your grocery store, it is time to change your scenery.

Don't rent-to-own. You could end up spending twice or three time as much as the value of what you are buying.

Open a bank account. By opening a bank account, you can save money when you cash checks or get money orders. But be careful--look for free checking accounts and minimum balances that you know you can keep.

When the Times Get Tough, the Tough Make a Budget

questions@castlelaw.net (Blog Author)17475 — Wed, 26 Aug 2009 08:00:00 EST

If you are getting into trouble with money or have already gotten into trouble and need a new method, a budget is a perfect tool for you. Here are some pointers on making a budget that helps you take control.

Start with your income but only use sources of money that are guaranteed. If you start to write down money that you don't have yet, you may start spending money you don't have yet.

Be realistic about your expenses. You can start with looking at your credit card bill and your check book. This is the only way you can truly see where your money is going.

Be honest with yourself. Are you spending more money than you are making?

Be patient. A budget is a learning experience and should be treated thusly. If the first month isn't on target, keep working on your budget until you are comfortable with it.

If you get through your budget and realize you can no longer control your debt, it will be important for you to contact an attorney who specializes in debt relief immediately.

For more tips on making a budget that works, visit our blog.

Which Debts Do I Pay First?

questions@castlelaw.net (Blog Author)17466 — Wed, 26 Aug 2009 08:00:00 EST

When you are under debt, it is vital that you prioritize which debts to pay first. This article discusses some highlights from a series about choosing your debts. For more detailed information, please visit the St. Louis Bankruptcy Blog.

So where do you start? Your first duty is to your family. Any bills associated with keeping your family housed, fed, and healthy should be addressed. This includes your mortgage. If you are facing foreclosure, don’t panic. There are options available to help you save your home.

You should also be trying to pay any bill associated with the government like child support or back taxes. The government is not just any creditor—they have different methods for collecting your debt.

Debts that are not tied to your home, your car, or the government can be put at a lower priority. Credit card bills, doctor bills, and debts from store accounts fall under this category. But be careful—these debts must still be paid.

Here are some other guidelines that may help you prioritize your debt:

Don’t move a debt up in importance because a creditor is harassing you or threatening your credit score. Stick to the plan you’ve made.
Don’t ignore your debt.Taking no action won’t change your situation and will eventually make it worse.
Look at your options. It isn’t always easy to ask for help. If you ask yourself, "Is my situation going to be better soon?" and the answer is "No," you may want to consider a free consultation to get help with your debt.

Don’t wait to get help with your debt. If you’d like more information, you can go to our blog or request a free copy of my book, "Get Out of Debt: Secrets Your Creditors Don’t Want You to Know."

Consumer Bankruptcy Up 34 % In July

questions@castlelaw.net (Blog Author)16551 — Fri, 07 Aug 2009 08:00:00 EST

According to CNNMoney and the American Bankruptcy Institute, consumer bankruptcies across the country sharply increased in July, reaching its highest point since October of 2005 (when the bankruptcy laws were altered with the Bankruptcy Abuse Prevention and Consumer Protection Act). Analysts say the 34% surge in Chapter 7 and Chapter 13 bankruptcy filings reflect the struggling economy, the wounded housing market and the large number of layoffs. The unemployment rate across the country is at a 26-year high.

A staggering 126,434 people filed for bankruptcy in July, up more than 8 percent from June and up 34 percent over July of 2008. One out of three bankruptcy petitions were for Chapter 13 bankruptcy, which reorganizes a person's debts.

In addition to job loss and low real estate values, fiscal experts also say that those with jobs are not making any more than they did last year - many raises are being delayed or passed up altogether.

Study: Many People Declare Bankruptcy To Save Their Homes

questions@castlelaw.net (Blog Author)16512 — Thu, 06 Aug 2009 08:00:00 EST

According to a study conducted by Consumer Credit Counseling Service (CCCS) between April and July of this year, one in five consumers who declare bankruptcy this year will do so to avoid a home foreclosure. The study surveyed 50,385 bankruptcy filers, 10,682 of which said that the threat of home foreclosure was the number one reason they were seeking bankruptcy protection.

Altogether, 21.6 percent of those who filed for bankruptcy did so in order to save their house. Filing for Chapter 13 bankruptcy allows consumers to reorganize their debts and develop a repayment plan. Chapter 13 bankruptcy can protect homeowners from if filers can consistently pay their monthly mortgage payments. Mortgage terms aren't typically modified during a Chapter 13 bankruptcy.

"Our research shows that tens of thousands of Americans are turning to bankruptcy to avoid foreclosure," said Suzanne Boas, president of CCCS of Greater Atlanta, in a press release.

Bankruptcy Terms To Know: Liquidation

questions@castlelaw.net (Blog Author)14947 — Tue, 07 Jul 2009 08:00:00 EST

When you file for some types of bankruptcy, part of the process includes the liquidation of some of you assets. Very simply, you are selling some of your property in order to pay off some or all of your debts.

In personal bankruptcy, Chapter 7 bankruptcy is also known as liquidation. In this form of bankruptcy, a trustee or other appointee of your bankruptcy court will determine if you have assets for liquidation and handle the liquidation process.

It is important to understand, however, that not all of your assets will be liquidated. In many cases, valuables that you owe are exempt from the liquidation process - these assets may include your primary residence, your car, and other personal items or items of necessity. Items that fall into exempt status vary by state, so those considering Chapter 7 liquidation bankruptcy should consult a local attorney for more information about specific state bankruptcy laws.

Bankrupt GM To Cut 38 Dealerships In Missouri

questions@castlelaw.net (Blog Author)14876 — Mon, 06 Jul 2009 08:00:00 EST

After declaring bankruptcy, automaker GM is paring down their franchises across the country - including 38 different dealers in Missouri. This downsizing will shrink the 6,000 GM dealerships in the United State to just 3,600 of the company's best and most lucrative dealers.

Some dealers will be offered continued participation with the company, while others are being offered wind-down agreements. Those taking part in wind-downs will receive assistance from GM to help with their transition. In Kansas City, MO, Conklin-Fangman Motor Co. in Kansas City and Adams Chevrolet in Belton both received wind-down notices. Conklin-Fangman will appeal their wind-down decision - as about 45 other GM dealerships have done over the last month.

GM filed for bankruptcy on June 1, 2009, after a recent history of financial problems. Years of financial losses paired with the economic hardships of the last six months were too much for the behemoth car company to handle.

Help Available To Those Who Have Fallen Behind On Their Bills

questions@castlelaw.net (Blog Author)14552 — Tue, 30 Jun 2009 08:00:00 EST

St. Louis based Ameren UE has announced a program to help low income families that have fallen behind in their electric bills. priority will be given to lower income and disabled applicants and then others will be helped if there remain any funds available. This program is fully funded by Ameren UE and will not be charged to current customers. The goal is to reach those people currently choosing between having food on the table or keeping the lights on.

Castle Law Group and St. Louis, Missouri and Illinois bankruptcy attorney James Brown frequently help people with debt relief and avoid foreclosure, repossession and wage garnishment by filing a chapter 7 bankruptcy or chapter 13 bankruptcy case. If you would like to find out more about what options you have to get out of debt, you can request a free copy of my book "7 Critical Mistakes to Avoid the Dismissal of your Bankruptcy Case" or give us a call toll free at 1-866-570-8484.

Bankruptcy Terms To Know: Automatic Stay

questions@castlelaw.net (Blog Author)14246 — Wed, 24 Jun 2009 08:00:00 EST

One of the most stressful aspects of bankruptcy is the pressure you are under by your creditors. Fortunately, the moment that you file for bankruptcy, an automatic stay prevents almost all creditors from harassing you while you during your bankruptcy case. An automatic stay prevents creditors from:

· Making calls to your house or sending letters to you regarding your debt.

· Filing a lawsuit regarding your debt.

· Refusing to issue a transcript or release other information based on your debt.

· Repossessing assets from your house.

· Going forward with a home foreclosure.

· Disconnecting your utilities, such as your water, electricity, or phone.

· Wage garnishments.

An automatic stay does come with a few exception: it may not stop those seeking alimony or child support, and it will not stop any criminal proceedings that you are involved in.

Bankruptcy Terms To Know: Wage Garnishment

questions@castlelaw.net (Blog Author)14203 — Tue, 23 Jun 2009 08:00:00 EST

Wage garnishment can seriously affect the quality of your life - and may be a good indicator that you should consider taking a serious look at your debts and the possibility of bankruptcy.

Wage garnishment is an extreme effort by your creditors to collect the money from you that they are owed. After trying to collect through other means, some creditors have the power to take money directly from your paycheck in order to satisfy debts. Wage garnishment can only happen as the result of a court order. Wage garnishment not only means that the amount of your take home pay is lowered - it also means that your employer will become aware of your financial troubles.

Wage garnishment is most common in child support cases and tax collection situations, but it is not unheard of for debt collection agencies to garnish wages for all types of debts, including credit card debts.

Bankruptcy Terms To Know: Asset

questions@castlelaw.net (Blog Author)11537 — Sun, 03 May 2009 08:00:00 EST

An asset is anything of value that is owned by an individual or by a company. Examples of assets include: property, money savings, vehicles, boats, insurance policies, jewelry, and stocks. While some assets must be liquidated during bankruptcy, some assets are exempt. There are a number of differences between exempt assets depending on which state you declare bankruptcy in, and depending on whether you file for Chapter 7 bankruptcy or Chapter 13 bankruptcy.

In Chapter 7 bankruptcy, your unsecured debts (such as medical bills and credit card bills) are discharged, but your non-exempt assets are liquefied. In Chapter 13 bankruptcy, you are able to keep your assets and your debt is re-organized into a manageable plan. Chapter 13 bankruptcy makes it much more possible to keep assets such as your home, land, and car, but also does not wipe away debt in the same way that Chapter 7 does - your creditors have to be paid back over a number of years with the majority of your disposable income.

Terms To Know: Foreclosure

questions@castlelaw.net (Blog Author)11512 — Fri, 01 May 2009 08:00:00 EST

Very simply, foreclosure is the process of a creditor (such as a bank or mortgage company) claiming a property after a borrower has been delinquent in his or her payments. Foreclosures settle the debt between the property owner and the lender and result in the homeowner losing their rights to the property.

Foreclosure proceedings can begin after a homeowner's mortgage payment is 90 days late. However, the entire foreclosure process can take well over a year.

There are several strategies to avoiding foreclosure and keeping your house or property. First, you may pay back what you owe, along with interest, late fees, taxes, insurance, appraisal fees, attorney feels, court costs, and any other costs. Other alternatives to foreclosure include refinancing your mortgage, negotiating with your lender, or setting up a short sell. Chapter 13 bankruptcy is also one way that borrowers can keep a home that is in danger of foreclosure.

There were almost 275,00 foreclosure filings in the United States last month - and foreclosure activity has increased 20 percent just in the last year.

How Should I Use My Credit Card After A Bankruptcy?

questions@castlelaw.net (Blog Author)10861 — Sat, 11 Apr 2009 08:00:00 EST

After you have filed for bankruptcy, it is important to begin to build your credit immediately. One part of improving your credit is signing up for a credit card and using it regularly. However, you must use your credit card wisely in order to help your credit score instead of hurt it.

The rules on how to use your credit card after bankruptcy are very simple and straightforward:

· Stay well below your credit limit - don't even approach the upper limit.

· Pay your credit card bill on time!

· Pay more the minimum amount due each month, and if possible, pay it off altogether each month.

· Sign up for email reminders for paying your bill.

· Watch for account fees or a change in your APR.

· If you have any questions about charges to your card or your credit card in general, don't hesitate to call the company and talk to a representative.

· Don't spend money you don't have!

Bankruptcy And Your Horse

questions@castlelaw.net (Blog Author)10825 — Fri, 10 Apr 2009 08:00:00 EST

Most people wonder if they can keep their house if they declare bankruptcy - but in these days of economic hardship, in which the wealthy, too, have been affected, some are asking, can I keep my horse? An article at www.TheHorse.com explores the options for horse owners in financial trouble and runs down the difference between Chapter 7 and Chapter 13 options in regards to the stable.

In a Chapter 7 bankruptcy filing, the horse - and perhaps its accessories - would probably have to go. Although a debtor will be able to keep some property that is considered exempt, horses are considered non-exempt personal property and would most likely be sold to pay off creditors.

In a Chapter 13 bankruptcy, debtors would be more likely to keep their horses. In this type of filing, you would create a payment plan that is approved by the court and decide whether or not to keep your horse for yourself. Of course, if you are struggling to improve your credit and simplify your life, keeping an expensive animal such as a horse may be a financial burden whether or not you are allowed by law to keep it.

The Chicago Sun-Times Goes Bankrupt, Following Trend In Newspapers

questions@castlelaw.net (Blog Author)10607 — Fri, 03 Apr 2009 08:00:00 EST

According to CNN, the Sun-Times Media Group has filed for bankruptcy. The company not only owns the Chicago Sun-Times, but also 58 other new media print edition papers and online websites.

The paper announced that despite its financial troubles and bankruptcy filing, it would continue to regularly publish its papers and websites. In the meantime, it would focus on restructuring, reorganizing, and finding stability again. However, the Sun-Times has already implemented a number of cost-cutting measures in the past months in order to improve their dismal numbers - a weak economy and dwindling number of print-edition readers has paired together to make a tough market for all newspapers.

Jeremy Halbreich, the company's chief executive, says that the Sun-Times is looking into selling off assets and looking into new investments to keep operating in the future.

In the last year, 120 newspapers across the country have closed their doors due to the market climate, resulting in the loss of 21,000 jobs.

Bankruptcies Continue To Rise Sharply In Missouri

questions@castlelaw.net (Blog Author)10605 — Fri, 03 Apr 2009 08:00:00 EST

A new set of statistic has been published concerning the number of bankruptcies in Missouri, reports KOMU News Channel 8. The results are not surprising: as the stagnant economy continues and job losses rise, bankruptcy filings have risen 18% in Missouri and 30 percent nationwide.

In hard financial times, many are making the choice to start over and rebuild their credit by either filing for Chapter 7 or Chapter 13 bankruptcy. The vast majority of those filing for bankruptcy have gone through an illness, lost their job, or recently been through a divorce. Others are struggling with bad mortgages or credit card debt.

While many can fix their financial problems by tightening their belt, reorganizing their finances, or cutting back on expenses, others have found themselves with money problems with no other solution other than bankruptcy. Even though bankruptcy will appear on their credit record for seven years or more, it can be the best choice for some, especially in these times.

Illinois Heart Attack Patient Refused Service After Bankruptcy

questions@castlelaw.net (Blog Author)9497 — Sat, 28 Feb 2009 08:00:00 EST

Because of a glut of unpaid medical bills and three heart attacks, Ron Eaker of Champaign, Illinois was forced to file for bankruptcy. Three years later, their history of money issues led their long-time clinic, Carle Clinic, also in Champaign, Ill., to turn them away and cancel all appointments.

Doctors in private practices are not obligated to see patients by law as emergency room doctors are.

Eaker and his wife declared bankruptcy in 2004 - after three heart attacks and an almost-fatal brain aneurysm in his wife, the couple was over $100,000 in debt and it was the best option for moving their life forward. Eaker used to be a minister and then a nursing home administrator, until his heart attack lost him his job.

Luckily, the couple now has a good health insurance plan and receives care at a nearby clinic.

Even though Eaker did not want to declare bankruptcy, it was the best plan for him and his wife.

What Is Debt Stress Syndrome?

questions@castlelaw.net (Blog Author)9496 — Sat, 28 Feb 2009 08:00:00 EST

As bankruptcy rates and foreclosure rates soar around the country, millions of American families of all classes are feeling mounting pressure and stress from their debt and money problems. In fact, according to CBS News Report, doctors and psychiatrists have created a name for it: debt stress syndrome.

Stress, especially lots of it over long periods of time, can physically wear down the body and make you more susceptible to diseases and long-term, chronic health conditions. Stress can lead to heart disease, hypertension, and a weakened immune system. At the same time, it can exacerbate pre-existing conditions that you may have.

How can you fight debt stress syndrome? Doctors suggest that the number one step you can take toward relieving your stress is to simply confront your situation. Even if you have mountains of debt, there are options you can take to regain control of your life. Talk to your debt collectors, talk to your family, and talk to a legal professional about your situation. As soon as you begin to ask for help and as soon as you become proactive, the stress will begin to lift.

The Art of Bill Juggling

questions@castlelaw.net (Blog Author)8402 — Sat, 24 Jan 2009 08:00:00 EST

If this article isn't a sign of the times, I don't know what is.

If you follow this link:

http://articles.moneycentral.msn.com/SavingandDebt/ManageDebt/HowToNotPayyourBills.aspx

you will be taken to an article called "How to Not Pay Your Bills." This article does not teach you how to be a successful deadbeat, but rather it tells you which bills it is the safest to not pay based on the length of time before the consequences kick in. It also measures the weight of the consequences.

Not that we needed any more signs, but an article like this is definitely a signal that the economy is not going well.

If you or a loved one are considering filing for bankruptcy in St. Louis, contact the Castle Law Office for a free legal consultation today.

Good Advice on Credit Cards

questions@castlelaw.net (Blog Author)7960 — Fri, 09 Jan 2009 08:00:00 EST

Suze Orman just wrote a pretty good article on MSNBC.com about what you can expect from the credit card companies in 2009, and she also makes some great recommendations.

Here are a few:

Make it a priority to pay off your credit card balances.
Read every statement and all correspondence from your credit card company to make sure you are aware of any changes to your account, such as skyrocketing interest rates.
Work to get your FICO credit score above 720.
Be very careful where you turn to for help with credit card debt. Debt consolidators are often a very bad deal. The National Foundation for Credit Counseling is a smarter choice.
Resist the temptation to use retirement savings or a home equity line of credit to pay off credit card debt.

You can read the whole article by following this link.

http://www.msnbc.msn.com/id/28544648/

As always, if you live in the St. Louis area and are considering bankruptcy, contact the Castle Law Office for a free legal consultation today.

Things Might Start to Get Fair in July of 2010

questions@castlelaw.net (Blog Author)7482 — Mon, 22 Dec 2008 08:00:00 EST

In the most sweeping changes to credit cards in decades, federal regulators on Thursday approved new rules to crack down on so-called unfair and deceptive practices by card issuers, such as raising interest rates on existing debt. – USA Today, 12/17/2008

Well, hallelujah.

What these new rules will do when they kick in is prevent credit card companies from jacking up the rates on existing balances whenever they want for no apparent reason. It will also prevent them from putting a monthly payment towards the part of the balance with the lower interest rate when a cardholder has multiple balances.

They are basically enacting most of the rules that were part of “The Credit Card Holders Bill of Rights,” which was a piece of legislation that was working its way through the Senate and which we wrote about earlier this year.

While this is good news, we think it is somewhat sad that it took a global credit crunch and financial disaster for these new rules to get put into place. Surely the folks in charge can recognize loan sharking when they see it, can’t they? But apparently doing the right thing is simply not enough of an impetus where the banks are concerned.

You should also be aware that these rules will not kick in until July of 2010, so basically those of you with credit card debt are still at the whims the credit card companies until then.

If you have a credit card problem in St. Louis, cut them up and get to work on getting rid of your debt. If your debt seems insurmountable, contact the Castle Law Office for a free legal and financial consultation today.

Outstanding Personal Injury Attorney Sandra Rohrstaff from Fairfax, Virginia

questions@castlelaw.net (Blog Author)7291 — Mon, 15 Dec 2008 08:00:00 EST

Over the course of the last year, I have had the pleasure of working with Fairfax, Virginia personal injury attorney Sandra Rohrstaff within a goup of some of the smartest lawyers I know from around the country to develop new, curtting edge ideas about better representing our clients. Sandra is a partner in the law firm of Weiner, Rhorstaff & Spivey, PLC and has become quite the expert in handling personal injury claims against big insurance companies for the seriously injured.

In speaking with Sandra at our meetings over the last year, I really like how she has maintained the same philosophy in regards to client treatment. Sandra and the rest of the attorneys at Weiner, Rohrstaff & Spivey provide exceptional quality legal representation and the power of a large firm, while keeping the personal touch and individual attention only a small firm can provide.

When it comes to handling a personal injury case, Sandra is one of the best lawyers I know in Virginia. She truly cares about the outcome she receives for her clients and she is not afraid to take the insurance company to trial to fight for what is right. If you or someone you know are ever in a serious car accident in Virginia, you should check out her website or give her a call at (730) 273-9500.

Check out the list of Frequently Asked Questions to help you understand the accident claim process. Even if your accident didn't happen in Virginia, many of the answers found here will apply to your case.

Bankruptcy Is Not the End of the World

questions@castlelaw.net (Blog Author)7021 — Thu, 04 Dec 2008 08:00:00 EST

This story:

http://www.smartmoneydaily.com/personalfinance/to-bankruptcy-and-back-my-story.aspx

gives a pretty good illustration of a start to finish bankruptcy.

The writer found himself deep in credit card debt and unable to pay, which forced him to declare Chapter 7 bankruptcy.

What is important about this story is not only how he got through it, but the steps that he took to get his credit rating back to normal over the course of that seven years.

If you or a loved one in the St. Louis area is considering bankruptcy, contact the Castle Law Office for a free legal consultation today.

Game Show Winner of $1 Million Files Bankruptcy

questions@castlelaw.net (Blog Author)6975 — Wed, 03 Dec 2008 08:00:00 EST

I recently ran across this interesting news piece on ABCNews.go.com that may not be as forthcoming as it needs to be. It seems Kathy Cox, a school superintendent from the state of Georgia and a recent $1 million winner on the TV game show “Are You Smarter Than a Fifth Grader?,” recently became another housing crisis victim when she filed for bankruptcy.

According to a spokesman for Cox, in spite of declaring bankruptcy with more than $3.5 million in liabilities and less than $650,000 in assets (which is separate from her winnings), she still plans on upholding her promise of donating her winnings to two schools for deaf children and a school for the blind.

Cox is the co-signer on loans for Pebble Hill Homes, her husband, John Cox’s, home-building business, according to the Chapter 7 bankruptcy petition the couple filed on November 17. Cox, an earner of around $125,000 per year, said that she was unable to support the couple on her salary alone after a downturn in the home-building industry and as creditors sought after the assets of the couple.

I am going to monitor this story to see how it actually turns out. Having filed chapter 7 bankruptcy cases and chapter 13 cases now for over 14 years in St. Louis, this is not your typical case. Although I admire her desire to keep her promise to donate the money she won to charity, once she filed for bankruptcy, that decision might not be hers to make.

When a chapter 7 is filed, it creates an estate of all property owned at the time of filing and all property the debtor has a right to receive at the time of filing. If the money hasn't been paid to her yet from the game show, that money is property of the estate if won before she filed her case. In that situation, a chapter 7 trustee is not going to just let her give the money to charity, but will take the money to pay her creditors.

Even if she received the money before filing and already paid it to the charity, a chapter 7 trustee can avoid certain transactions to get that money back for the estate, especially if it was done within 90 days of filing. Ironically, if she filed her bankruptcy case on November 17 and won the money on November 18, it would not be a part of the bankruptcy estate and the trustee would not have any interest in it.

Castle Law Group and St. Louis, Missouri and Illinois bankruptcy attorney James Brown frequently helps people avoid foreclosure, repossession and wage garnishment by filing a chapter 7 bankruptcy or chapter 13 bankruptcy case. If you would like to find out more about what options you have to get out of credit card debt, you can request a free copy of my book "7 Critical Mistakes to Avoid the Dismissal of your Bankruptcy Case" or give us a call toll free at 1-866-570-8484.

Landamerica Financial Group Obtains Bankruptcy Protection

questions@castlelaw.net (Blog Author)6974 — Wed, 03 Dec 2008 08:00:00 EST

On November 26, title insurer LandAmerica Financial Group announced its plans to file for bankruptcy protection, while competitor Fidelity National Financial Inc. announced that it will be acquiring three subsidiaries of LandAmerica.

The bankruptcy filing of LandAmerica’s holding company and subsidiary LandAmerica 1031 Exchange Services Inc. was announced mere days after Fidelity National, which is based out of Jacksonville, Florida, canceled an agreement to purchase all of LandAmerica, which is based out of Richmond, Virginia. The terms of that deal called for LandAmerica to be acquired by Fidelity National in an all-stock acquisition for approximately $128.4 million.

Chicago Title Insurance Co., a subsidiary of Fidelity National, is to acquire Commonwealth Land Title Insurance Co. for $158.6 million. Another Fidelity National unity, Fidelity National Title Insurance Co., is to acquire Lawyers Title Insurance Corp. and United Capital Title Insurance Co. for $139.4 million.

The units being purchased by Fidelity National remain solvent and continue operating. The acquisitions are expected to close as early as late December.

Beware of Online Borrowing

questions@castlelaw.net (Blog Author)6924 — Tue, 02 Dec 2008 08:00:00 EST

If you are seeking some extra money for the holiday season, the federal government is warning that it is risky to borrow from an Internet payday lender.

One site in particular has been closed in on by the Federal Trade Commission, www.cash2day4u.com. The site’s operators offered loans of up to $500 or less to consumers within 24 hours with no requirements of a credit check, proof of income, or other documentation.

Customers applying for a loan through the site were required to provide their bank account and Social Security numbers. However, there was a catch that the fees for the service ranged from $35 to $80 and if customers were unable to make payments, the lenders would be allowed to go into the customer’s bank account.

In the FTC complaint, the operators were charged with not disclosing in writing the annual percentage rate, payment schedule, amount financed, total number of payments and any late fees. Consumers complained that they were made to overpay their accounts and were required to close their bank accounts.

The FTC reported that many of the consumers had received “abusive and deceptive” collection calls from the operators aimed at regaining access to their accounts. They falsely threatened customers with arrests, lawsuits, seizure of property, or wage garnishment and called consumers, coworkers, and employers at their workplace numerous times using abusive language and disclosing the purported debts of consumers.

Unfortunately, I see honest, hard working people taken advantage of by the credit industry on a routine basis. Payday lenders are the last possible place you should look to when in need of some cash. In many cases, I have seen loan documents showing 400-500% annual interest rates on these short term loans. Although they accept a post-dated check from you, when you don't pay, they try to cash the check and if it bounces, they will try to prosecute you and send you to jail.

If you find yourself struggling to keep up with your debt, I know it's tempting to get a quick payday loan. I mean, what can it hurt, right? Well, I think you can see from the information here how bad these are for you. To find out additional things your creditors don't want you to know, I have written the consumer guide on the bankruptcy process so that the average, hard working family can get the information they need to make an informed decision. My guide, "7 Critical Mistakes To Avoid The Dismissal Of Your Bankruptcy Case" is yours FREE by clicking on the title or calling toll free 1-866-570-8484.

St. Louis, Missouri bankruptcy attorney and Illinois bankruptcy lawyer James Brown of Castle Law Group has spent more than 14 years helping families file for chapter 7 bankruptcy and chapter 13 bankruptcy to stop the foreclosure of their home, repossession of their car and garnishment of wages.

Great Article on Foreclosure

questions@castlelaw.net (Blog Author)6617 — Wed, 26 Nov 2008 08:00:00 EST

One of the bigger misconceptions that we have had to battle here at the Castle Law Office is that people who go through bankruptcy are somehow in a problem of their own making. The idea that people who have to declare bankruptcy are simply lazy and irresponsible is one of the bigger misconceptions out there.

A recent article on CNN by credit counselor Gail Cunningham describes a more realistic scenario.

The vast majority of clients in St. Louis that we help through bankruptcy are dealing with forces that are beyond their control. They were hit with layoffs, illnesses or accidents, and the financial side effects of these events were simply too much for them to deal with.

Ms. Cunningham describes just such an event:

"For example, I'm reminded of the 46-year-old single mom's foreclosure problem that started with a heart attack. Out of work for three months with no income and medical bills compounding her existing debt, she was headed for foreclosure.

At the Castle Law Group, we hear stories like that way more often than we hear the preconceived social narrative of laziness.

If you or a loved one live in the St. Louis area and are considering bankruptcy, contact the Castle Law Group for a free legal consultation today.

Can Homeowners Association Dues be Discharged?

questions@castlelaw.net (Blog Author)6601 — Wed, 26 Nov 2008 08:00:00 EST

I typically have a lot of people come into the office that own condominiums with homeowners association dues along with it. Many of these folks have the same question, which is:

We live in a townhome development and over the past several years, the homeowners association fees have risen almost 20 percent per year. I lost my job earlier in the year and we have fallen three months behind on our HOA dues. If we file for bankruptcy, can we still be forced to pay our missed dues or have a lien filed against our home by the HOA if we don’t?

The answer is dependant upon a number of factors, including the date you are considering filing for bankruptcy and steps already taken by the HOA to collect your delinquent payments.The federal Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), or the New Bankruptcy Law, which went into effect nearly three years ago, seriously tightened federal bankruptcy laws. Though qualifying for a bankruptcy filing has been made much more difficult by the law, it also addresses specific rights and obligations of both a homeowner and an HOA when a bankrupt owner is in arrears on the monthly HOA dues. A debt owed to an HOA can be treated differently depending on whether you file a Chapter 13 bankruptcy or a Chapter 7 bankruptcy case.

If a lien has yet to be placed on your property, the act allows for a bankruptcy judge to discharge some or all of the dues and special assessments you were unable to pay before your filing date. In some states, a lien on the property is automatic based on current state laws, so the HOA does not have to do anything to make sure the lien is on the property. However, any dues or assessments levied after filing generally cannot be discharged.

If a lien has already been placed on your home, then the lien will have to be addressed in your bankruptcy case or the HOA can usually go forward with foreclosure. Federal bankruptcy laws can be complex and it would be wise for you to consult an experienced bankruptcy attorney.

St. Louis bankruptcy attorney James Brown with Castle Law Group has been helping victims of foreclosure to save their homes for over 15 years. To find out if this is an option for you, request our free book "7 Critical Mistakes To Avoid The Dismissal Of Your Bankruptcy Case" or call for a free consultation at 1-866-570-8484. Castle Law Office helps families in St. Louis, Missouri and Illinois.

November Newsletter - Hot Off The Press

questions@castlelaw.net (Blog Author)6494 — Mon, 24 Nov 2008 08:00:00 EST

Just got done with my November newsletter. You can read it in its entirety by clicking here. My main story this month encourages us to be thankful for the things we do have and the future that we can acheive. Also, you will see a new question & answer section that I will change up every month. You can read all of our past newsletters in the library section of our website.

Castle Law Group and St. Louis, Missouri and Illinois bankruptcy attorney James Brown frequently help people avoid foreclosure, repossession and wage garnishment by filing a chapter 7 bankruptcy or chapter 13 bankruptcy case. If you would like to find out more about what options you have to get out of credit card debt, you can request a free copy of my book "7 Critical Mistakes to Avoid the Dismissal of your Bankruptcy Case" or give us a call toll free at 1-866-570-8484.

Loan Modification - Not Your Saving Grace

questions@castlelaw.net (Blog Author)6493 — Mon, 24 Nov 2008 08:00:00 EST

I have many people that are contacting me now that are coming into contact with loan modification companies. The way they are contacting me are different, but in most cases, the end result is the same - the loan modification didn't go through as planned and I am about to lose my home.

Recently, I have had a surge of new consumers panicking to get in for an appointment to see about a Chapter 13 bankruptcy because they just found out that the loan modification promised fell through and foreclosure is in two days. I have also had a number of clients that called to close their file because they suddenly received an offer of loan modification and they don't need us any more.

One thing I learned years ago was that 9 times out of 10, these promises by mortgage companies and now loan modification outfits are full of false hope and in the end, they don't happen. I have a running bet with the staff on how long it will take before a client is back in to re-open their file after closing because they have worked it out with the mortgage company or they have a loan modification being worked on. Needless to say, even though we do not seriously bet money, no one will bet me anymore because they always come back in a panic.

I posted an article today called "Beware of The New Predators in Lending" and you can read more about this subject in our library section under Chapter 13.

Castle Law Group and St. Louis, Missouri and Illinois bankruptcy attorney James Brown frequently help people avoid foreclosure, repossession and wage garnishment by filing a chapter 7 bankruptcy or chapter 13 bankruptcy case. If you would like to find out more about what options you have to get out of credit card debt, you can request a free copy of my book "7 Critical Mistakes to Avoid the Dismissal of your Bankruptcy Case" or give us a call toll free at 1-866-570-8484.

You Can't Get Rid of Debt By Sticking You Head in the Sand

questions@castlelaw.net (Blog Author)6338 — Wed, 19 Nov 2008 08:00:00 EST

In life, many people would rather avoid conflict. In fact, many people will simply choose to ignore any situation that comes up where conflict may arise. I have found that it is no different with consumers that owe money to bill collectors. When we, as human beings, are behind to a creditor and the collection agencies start coming, it is very tempting to simply ignore it by not answering the phone or deleting any message left.

However, ignoring the debt will not simply make it go away. In most cases, it will make matters much worse. I just finished an article about what your options are and what can happen when you ignore debts. You can read the article in our library section of our website. It is called "Can i Just Ignore My Debt and It Will Go Away?"

There are several sources that can help you with debt relief, but it may be advisable that you contact an experienced attorney to help you understand what is happening and what you can do.

St. Louis bankruptcy attorney James Brown with Castle Law Group has been helping victims of overwhelming debt to get their life back on track for over 15 years through a Chapter 7 bankruptcy or Chapter 13 bankruptcy case. To find out if this is an option for you, request our free book "7 Critical Mistakes To Avoid The Dismissal Of Your Bankruptcy Case" or call for a free consultation at 1-866-570-8484. Castle Law Office helps families in St. Louis, Missouri and Illinois.

Is There Any Good News In A Financial Crisis?

questions@castlelaw.net (Blog Author)6258 — Mon, 17 Nov 2008 08:00:00 EST

I recently was involved in a discussion amongst other banruptcy attorneys and the subject of the economy came up as it has in most conversations these days. After we moaned and groaned about what got this country where it is and what's being promised now to make things better, I started thinking about whether or not things can get better from here. I think the answer is yes.

Some of the worst things that happen to us turn out to be the best opportunities. Today's opportunity: We're on our way to living a better life with our money and here's why. Although it is still uncertain if the market has bottomed out, if you really look at the situation, we, as consumers, hit bottom when the market was at it's highest. That was when we reached the end of the line on overextending ourselves on credit. When most people bought too much house or were talked into more home than they could afford through creative lending practices.

When the economy is really good and credit is easily obtained, the average consumer will naturally become burdened in more debt. Can we predict where we're going to be in 5 to 7 years? Or where mortgage interest rates will be? Or if we'll be in a position to afford the adjustable rate mortgage?. With so much easy credit floating around and lenders coming out with products that make anybody look like they have the ability to take on more debt, it is no wonder we had such a hard fall from grace the minute a market adjustment occurred.

As interest rates adjusted and legislation was passed to double the minimum payments required on credit cards, everyone began to feel the pinch. Consumers looked to bankruptcy laws to help get out of a mess they weren't solely responsible for. As more and more people sought debt relief, lenders made a push to change the bankruptcy laws because of the "abuse" by consumers. Althought this resulted in a temporary slowing of bankruptcy cases, the numbers now have risen to all time highs, leaving lenders and Congress wondering what happened.

Lenders themselves, like Washington Mutual, found themselves in the exact same position as the consumer - overextended on credit. Instead of seeking relief from the bankruptcy laws, Congress sees fit to offer a bailout to help them in their time of need. Now, General Motors, Ford and Chrysler are calling on the federal government for help.

So, with all that said, there is something good about what's happening right now. According to the latest statistics, we've slowed down our spending in retail stores. Credit card data shows that we've cut down using our plastic. Different polls around the country indicate we pledge to spend less and save more. These are good habits that we should have even in the best of times.

These are solid habits that build a stable financial base for us and our family. There is nothing wrong with wanting to be financially stable, about not wanting to use plastic or the equity in our home just because we can. Sure it will take some time to get a consumer-spending based economy running again if we're not spending. But after that time, what we have built will be a good basis for years to come.

When you have reached a financial bottom, there is no place to go but up. We are all in this together and America will do what it takes to regain the financial strength it needs to survive.

Castle Law Group and St. Louis, Missouri and Illinois bankruptcy attorney James Brown frequently help people avoid foreclosure, repossession and wage garnishment by filing a chapter 7 bankruptcy or chapter 13 bankruptcy case. If you would like to find out more about what options you have to get out of credit card debt, you can request a free copy of my book "7 Critical Mistakes to Avoid the Dismissal of your Bankruptcy Case" or give us a call toll free at 1-866-570-8484.

Too Much Money For Forgiveness

questions@castlelaw.net (Blog Author)6130 — Wed, 12 Nov 2008 08:00:00 EST

The Comptroller of the Currency just made your life a lot harder.

Well, maybe not harder. He didn't actually ADD to your debt. He just killed a plan for you to be forgiven 40% of it.

A group of consmer advocacy groups and banks floated a plan to allow people who could not meet the terms of payment plans to have 40% of their debt forgiven.

The reason that they are throwing these plans out there is because too many people are defaulting on their credit card debt.
And with the economy currently in the state that it is in, credit card companies and banks are feeling the pain just like regular Americans.

Unfortunately for us..."the agency 'does not consider any plan that defers the timely recognition of loss as prudent, and any such proposal cannot be viewed favorably by us,' Timothy Long, senior deputy comptroller for bank supervision policy, said in a letter to the two groups dated Monday and made public Wednesday."

It is a rare thing where banks and especially credit card companies make an effort to actually help their debtors instead of burying them. It is a shame that the Comptroller of the Currency wouldn't allow them to do it.

If you or a loved one in the St. Louis area is considering filing for bankruptcy, contact the Castle Law Office for a free legal consultation today.

What Happens If My Landlord Is Foreclosed On?

questions@castlelaw.net (Blog Author)5982 — Fri, 07 Nov 2008 08:00:00 EST

Each day we hear more and more stories in the news about the struggling economy, housing prices, and mortgage problems. Foreclosure rates are increasing, especially among military-dense areas. In a recent article I found on Military.com, the question arose as to what happens if your landlord ceases payment on the mortgage on your house, causing it to enter foreclosure?

The bad news is that you will most likely need to move. Upon foreclosure, either the lender, a new homeowner, or an investor will purchase the home. When the property changes ownership, the purchaser almost always chooses termination of tenantship, except in the few states where it is not allowed. Depending upon your situation and the state the property is in, you may know months before, or possibly be legally evicted within days of the foreclosure sale.

There are several sources that can help you with foreclosure, but it may be advisable that you contact an experienced attorney to help you understand what is happening and what you can do.

St. Louis bankruptcy attorney James Brown with Castle Law Group has been helping victims of foreclosure to save their homes for over 15 years through a Chapter 7 bankruptcy or Chapter 13 bankruptcy case. To find out if this is an option for you, request our free book "7 Critical Mistakes To Avoid The Dismissal Of Your Bankruptcy Case" or call for a free consultation at 1-866-570-8484. Castle Law Office helps families in St. Louis, Missouri and Illinois.

St. Louis Bankruptcy Lawyer James Brown Voted Best

questions@castlelaw.net (Blog Author)5828 — Thu, 30 Oct 2008 08:00:00 EST

Over the summer months, Missouri Lawyers Weekly, a respected and long running news source for the St. Louis community, sent out an announcement to vote for the attorney you would most want to have on your side in certain situations. Some of these included being accused of shooting someone, going through a divorce, etc.

One of the categories was the attorney you would want on your side if you were about to lose your home. St. Louis bankruptcy attorney James Brown with Castle Law Office was voted by the St. Louis community, including lawyers in the metropolitan area, as that person you would want to have there.

The award will be presented to Mr. Brown at a special luncheon to be held on October 30, 2008 at the Champions Club at Busch Stadium in St. louis, Missouri.

St. Louis, Missouri bankruptcy lawyer and Illinois bankruptcy attorney James Brown is the published author of "7 Critical Mistakes to Avoid the Dismissal of your Bankruptcy Case" and "10 Must Know Secrets To The Life You Dreamed Of After Bankruptcy" and provides those books free of charge to anyone in Missouri and Illinois. People don't realize they have a number of options to consider when facing a bankruptcy or what to do after they file to get back on track. To learn more, you can go to our website or call Castle Law Group for free at 1-866-570-8484.

How Much Do I Have To Repay?

questions@castlelaw.net (Blog Author)5826 — Thu, 30 Oct 2008 08:00:00 EST

On Monday, the 8th Circuit Court of Appeals issued a consumer bankruptcy decision concerning the required commitment period of a Chapter 13 Plan based on whether someone is over or under the median. There has been conflicting opinions about what commitment period is required according to the language of the U.S. Bankruptcy Code which was amended in 2005, otherwise known as BAPCPA.

One thought is that if you are over the median family income for your family size, there is no choice and your commitment period is 60 months. On the other hand, there has been Courts out there that have held that even if you are above the median income, if your disposable income as a result of filling out the required means test form is zero, then your commitment period only needs to be 36 months.

The 8th Circuit ruled that based on the language and the intent of Congress, if a debtor's income is above the median for their family size, their commitment period is determined by the statute regardless of whether or not they have any disposable income. Therefore, if you are over the median, you must file a plan for not less than 60 months unless 100% of your creditors are paid in full.

Some good news did come out of the decision, however. The Court said that the Means Test form is simply a starting point and determines a person's disposable income based on income that may no longer exist. However, the ruling goes on to say that to arrive at projected disposable income for purposes of determining the correct plan payment, schedule I and J is used to provide a better understanding of what the debtor can truly afford.

You can read the entire opinion by clicking here: In re: Craig Matthew Frederickson

A Sign of Things to Come in Wisconsin

questions@castlelaw.net (Blog Author)5734 — Mon, 27 Oct 2008 08:00:00 EST

This article in the Milwaukee Journal-Sentinel describes how many people in Wisconsin are being sued by credit card companies for defaulting on their credit card debt.

http://www.jsonline.com/news/waukesha/33339959.html

It isn't much of a surprise that people in Wisconsin find themselves unable to pay their credit card bills when they are struggling to pay their rent, utilities and medical bills. You also have to consider that with the economy going downhill, it's almost a certainty that people are losing their jobs.

You can bet that this sort of thing isn't just staying within the borders of Wisconsin. People all over the country are suffering from the economic downturn, and of course that will include Missouri, Illinois, and everywhere in our area.

If you or a loved one is facing legal action from a credit card company, contact the Castle Law Office for a free legal consultation today.

Bankruptcy Filings Soar As Economy Suffers

questions@castlelaw.net (Blog Author)5599 — Wed, 22 Oct 2008 08:00:00 EST

I just posted an article in our news section titled "Bankruptcy Filings Hit An All-Time High" which reports that recent statistics published by Aacer, a reporting firm who gets their numbers from the court electronic filing system, estimates that the number of bankruptcy filings in 2008 could easily top the 1,000,000 mark. This will be the first time since the passage of the new bankruptcy law in 2005 that such levels have been seen.

With the weak economy and people that are extremely over-extended, I am not suprised that the bankruptcy filing numbers have climbed to these new heights. This trend could be seen back into mid-2007 as the general consumer figured out through good information sources that you could still file for bankruptcy protection and, if you did, you likely would not lose any of your property.

That is why I have written the consumer guide on the bankruptcy process so that the average, hard working family can get the information they need to make an informed decision. My guide, "7 Critical Mistakes To Avoid The Dismissal Of Your Bankruptcy Case" is yours FREE by clicking on the title or calling toll free 1-866-570-8484.

Credit Report Must Report Bankruptcy Discharge

questions@castlelaw.net (Blog Author)5511 — Mon, 20 Oct 2008 08:00:00 EST

I just posted an article in our library section titled "Bankruptcy Filing Should Clear Credit Report" based on a recent California U.S. District Court case in which the federal Judge ordered that once debts are discharged in bankruptcy, they can no longer be reported with an outstanding balance. In addition, there must be clear language on the report itself which indicates the debt was discharged in bankruptcy.

The case, White v. Equifax, sets forth certain things that credit bureaus must do once debts are discharged in a Chapter 7 bankruptcy case. This decision should help end the constant struggle for debtors in trying to clean up their credit report after a bankruptcy case is completed.

Castle Law Group and St. Louis, Missouri and Illinois bankruptcy attorney James Brown frequently help people avoid foreclosure, repossession and wage garnishment by filing a chapter 7 bankruptcy or chapter 13 bankruptcy case. If you would like to find out more about what options you have to get out of credit card debt, you can request a free copy of my book, "7 Critical Mistakes To Avoid The Dismissal Of Your Bankruptcy Case", or give us a call toll free at 1-866-570-8484.

Foreclosure: What To Tell Your Children

questions@castlelaw.net (Blog Author)5452 — Sat, 18 Oct 2008 08:00:00 EST

Going through a foreclosure is a very painful process. In many cases, a Chapter 13 bankruptcy can stop the foreclosure and provide the family a repayment plan and, more importantly, an opportunity to keep their home. But what if there are no options and the foreclosure is the most prudent thing to do? This happens in cases where the homeowner was able to get a loan on a property and can no longer afford the payment. How do you explain to your kids you are losing the only home they have know?

I ran across a blog post on MSN Money Central which discusses how to handle that situation and best explain what a foreclosure means to your child. The blog post is titled "Talking To A Child About Foreclosure" If you find yourself in this situation, this is good information you can use to educate your child.

St. Louis Bankruptcy Attorney James R. Brown On BetterTV.com

questions@castlelaw.net (Blog Author)5328 — Tue, 14 Oct 2008 08:00:00 EST

I was recently contacted by Los Angeles attorney Alexis Martin-Neeley about the difference between having a foreclosure on your record and filing bankruptcy. Alexis was doing research for a segment in response to a viewer question on BetterTV.com. I provided Alexis with some great content I have had the experience of learning over the years, as well as a copy of a book I authored and published called "7 Critical Mistakes To Avoid The Dismissal Of Your Bankruptcy Case"

I just received a link to view the segment and Alexis did a great job of informing the public about the foreclosure process and how a bankruptcy can help those in danger of facing a foreclosure. The segment is called "Buying a Home". In the segment, to my suprise, she mentions her source of information as from "one of the best consumer bankruptcy attorneys in the United States, James Brown". I am humbled and proud to have the honor of being referred to by my peers as one of the best simply for helping families in need.

The segment also has great discussion about rebuilding credit and the best steps to take to get back on your feet. The website listed in the video HelpfulBankruptcyTips.com will take you directly to my website.

Filing Bankruptcy In St. Louis No Longer Last Resort?

questions@castlelaw.net (Blog Author)5325 — Tue, 14 Oct 2008 08:00:00 EST

I have always know that filing bankruptcy in St. Louis is an option that the average person should find out more about before they get themselves too far into a bad situation they cannot get out of. With the further decline in today's economy, it is even more important to know all of your options. I just finished an article discussing this very issue called "Bankruptcy Is Becoming An Option Most People Can No Longer Ignore" and posted it on our website. It contains some very insightful information surrounding the bankruptcy process and the myths and rumours that have been promoted to prevent you from finding out the facts to see if it will help you.

Most people that come in end up finding out when it is too late. If they would have come in to see me sooner, I could have, in most cases, saved them a lot of headache and possibly saved them from losing their property to foreclosure, repossession or wage garnishment. In a recent story on CNBC, Geri Detweiler published an article discussing this very fact about the need to find out your options before you make mistakes that could cost you dearly. The article is titled "The Bankruptcy Option: More Than Just A Last Resort"

The biggest mistake people make is not knowing all of the facts before they make decisions in their life. Filing a bankruptcy is no exception. Even if you choose to file a bankruptcy case, there are many thnigs you need to avoid to keep your case from being dismissed. A proven, experienced bankruptcy attorney is vital to a successful case. That is exactly why I wrote the book "7 Critical Mistakes to Avoid The Dismissal of Your Bankruptcy Case" and it is yours absolutely free. Don't speak with any bankruptcy attorney (including me) or creditor until you have read this book.

Castle Law Group and St. Louis, Missouri and Illinois bankruptcy attorney James Brown frequently help people avoid foreclosure, repossession and wage garnishment by filing a chapter 7 bankruptcy or chapter 13 bankruptcy case. If you would like to find out more about what options you have to get out of credit card debt, you can request a free copy of my book or give us a call toll free at 1-866-570-8484.

Credit Card Debt Calculator

questions@castlelaw.net (Blog Author)5271 — Mon, 13 Oct 2008 08:00:00 EST

If you know anything about credit cards, you should know by now that the biggest scam going is the minimum monthly payment. With the way the interest compounds, it can and would actually take you the rest of your life to pay off the principal if all you paid was the minimum debt every month.

If you follow this link, you can go to a site that provides a calculator that gives you a fairly simple way to figure out how much you should pay in order to get out from under credit card debt in an alloted period of time.

Take a look and see what sort of situation you are in.

October Newsletter Answers Question If You Will Lose Everything When Filing Bankruptcy in St. Louis

questions@castlelaw.net (Blog Author)5182 — Thu, 09 Oct 2008 08:00:00 EST

Just got done with my October newsletter. You can read it in its entirety by clicking here. My main story this month is about my best friend and wife, Sherrie Brown. We have been married for 24 years this month and I wanted everyone to get to know her. Also, you will see a new question & answer section that I will change up every month. This month discusses whether or not you will lose all of your property if you file for bankruptcy. You can read all of our past newsletters in the library section of our website.

The newsletter normally has great information about Chapter 7 bankruptcy and Chapter 13 bankruptcy in St. Louis Missouri and Illinois. St. Louis Bankruptcy Lawyer James Brown with Castle Law Office dedicates his life to helping families and children get through difficult times in their life.

Repo Man Becoming The Next Maytag Repairman? Why Filing Bankruptcy Insures You're Safe

questions@castlelaw.net (Blog Author)5181 — Thu, 09 Oct 2008 08:00:00 EST

It appears that with the economy seemingly coming to a grinding halt, more and more people are losing their homes to foreclosure and cars to repossession. That is what has been all over the news lately. But what happens to all of this property? Well, it normally would be sold at auction to the highest bidder and, hopefully, the bank or lender gets enough money out of the sale to pay off the loan. This is usually not the case, however, and when a piece of property like a house or car is sold for less than what is owed, a deficiency balance will be due for the difference and the lender will go after the original borrower - YOU.

But now, reports are indicating that automobile financing banks and lenders have way too much property that has been repossessed or foreclosed on and trying to sell it in an auction is becoming increasingly difficult without taking huge losses. A report titled "Cant' Pay Car Loan? Bank May Not Even Want It Back" on CNBC discusses that the repossession business is slowing way down as lenders are trying to work out more loans instead of taking the delinquent cars back.

Castle Law Group and St. Louis, Missouri and Illinois bankruptcy attorney James Brown frequently help people avoid foreclosure, repossession and wage garnishment by filing a chapter 7 bankruptcy or chapter 13 bankruptcy case. If you would like to find out more about what options you have to get out of credit card debt, you can request a free copy of my book "7 Critical Mistakes to Avoid the Dismissal of your Bankruptcy Case" or give us a call toll free at 1-866-570-8484.

A $500 Hold On Your Visa When You Get Gas Is Now Reality

questions@castlelaw.net (Blog Author)5086 — Mon, 06 Oct 2008 08:00:00 EST

Due to the rising costs of gas prices and the increasing amount of theft and fraud with people trying to do whatever they can to fill up their tanks, Visa has changed their rules to allow gas station owners to place a hold of up to $500 on your Visa credit card or debit card to allow a check if the card is indeed valid.

I recently posted an article titled "Gas Stations Can Now Place $500 Hold On Your Visa Card" in the news section of our website. There you will find a link where you can watch the video story which recently aired on News Channel 4 in St. Louis. If you rountinely use a debit card, you will need to be extra careful to make sure you don't end up with insufficient funds charges from your bank because of the hold.

Text of the Credit Card Holders Bill of Rights

questions@castlelaw.net (Blog Author)4944 — Tue, 30 Sep 2008 08:00:00 EST

By following this link, you can see exactly what the provisions are in the recently passed Credit Cardholders Bill of Rights.

http://maloney.house.gov/documents/financial/h.r.5244billtext.pdf

You should definitely take a good look, because the odds are that it will be whittled down quite a bit when it gets sent through the Senate.

Merrill Lynch's Buyout: The Basics

questions@castlelaw.net (Blog Author)4943 — Tue, 30 Sep 2008 08:00:00 EST

If you follow this link you will find a pretty decent description of what exactly caused Merrill Lynch to be bought out by Bank of America.

A lot of the news can be a bit confusing if you don't have a background in finance. This article does a good job of explaining exactly what happened and (more importantly) why it happened.

Getting Credit In The Future Will Be Tougher

questions@castlelaw.net (Blog Author)4928 — Mon, 29 Sep 2008 08:00:00 EST

With all of the recent news about Congress having to bail out the lending industry, the question comes to mind how will our personal finance be affected and, more specifically, our ability to get credit in the future be affected. Well, it sure isn't going to be easier. In fact, with or without the bailout, consumers are going to see much tougher controls on lending by banks and mortgage companies in an effort to reduce their risk.

John Ulzheimer with Credit.com recently wrote an article discussing his views after watching President Bush's address to the nation about the current crises. You can read the article in it's entirety at MSNBC's On The Money.

St. Louis, Missouri bankruptcy lawyer and Illinois bankruptcy attorney James Brown with Castle Law Office is the published author of "7 Critical Mistakes to Avoid the Dismissal of your Bankruptcy Case" and provides those books free of charge to anyone in Missouri and Illinois. People don't realize they have a number of options to consider when facing a foreclosure due to the St. Louis housing crisis. To learn more, you can go to our website or call us for free at 1-866-570-8484.

$700 Billion Bailout Bill Might Give Bankruptcy Judges Power To Modify Mortgages

questions@castlelaw.net (Blog Author)4821 — Thu, 25 Sep 2008 08:00:00 EST

The U.S. Congress is currently pushing through emergency legislation to provide $700 billion in funding to bailout the lending nightmare and to help turn the economy around. Lawmakers expect to reach an agreement and vote on the bill in the next few days and pass it on to President Bush for signing into law.

In an effort to help the average homeowner that is struggling with foreclosure, Democrats have added language to the bill which would allow bankruptcy judges to modify terms of a mortgage so they can get the debt relief they need in a Chapter 7 bankruptcy or Chapter 13 bankruptcy case. This is something the bankruptcy laws have never been able to do. Republicans are currently fighting the addition of this language and President Bush opposes it. You can read more about this effort in a news item I wrote called "Bankruptcy Proposal To Avoid Foreclosure Part of Government Bailout Legislation."

Now is the time for all consumers to contact their Congressman and urge them to vote in favor of keeping the bankruptcy language in the bill. If the federal government is going to step in and bail out huge corporations, then some relief should be afforded to the average citizen.

St. Louis, Missouri bankruptcy lawyer and Illinois bankruptcy attorney James Brown is the published author of "7 Critical Mistakes to Avoid the Dismissal of your Bankruptcy Case" and provides those books free of charge to anyone in Missouri and Illinois. People don't realize they have a number of options to consider when facing a foreclosure. To learn more, you can go to our website or call us for free at 1-866-570-8484.

Bankruptcy Law Can Stop Creditor From Arresting You To Collect a Debt

questions@castlelaw.net (Blog Author)4769 — Tue, 23 Sep 2008 08:00:00 EST

I just finished reading an interesting article being reported on MSNBC about a St. Louis Bankruptcy Judge that ordered a small business owner to re-pay money to a person that was convicted of stealing from him prior to the bankruptcy filing. It appears that the small business owner, Mark Paveromo, continued to pursue criminal chares against Mark Koch even after the bankruptcy was filed and Mr. Koch was arrested.

Judge Charles Rendlen from the U.S. Bankruptcy Court for the Eastern District of Missouri ruled that Poveromo intentionally violated the bankruptcy stay on claims by causing Koch's arrest to collect on the debt. Judge Rendlen stated "Allowing a creditor to use the threat of incarceration on charges related to a prepetition debt undermines the most fundamental premise of bankruptcy law: the guarantee of equal treatment among creditors pursuant to the bankruptcy code."

Rendlen ordered Poveromo to pay back the restitution Koch had given him as well as attorney's fees and costs.

I think his opinion is a very powerful reminder of the protection the bankruptcy law can give to average consumers that are harrassed by bill collectors and, especially payday loan companies who love to use the threat of criminal prosecution to collect a debt. Filing for chapter 7 bankruptcy or chapter 13 bankruptcy should give you the peace of mind to get the debt relief you deserve without the worry of going to jail. The automatic stay provisions of the bankruptcy law, otherwise known as 11 U.S. C. §362, stop a creditor from any action to collect a debt that was incurred prior to filing bankruptcy.

You can read more on this story by visiting the news section of my website and clicking on the article "Why Criminal Charges Can Be Stopped By Filing Bankruptcy in St. Louis, Missouri."

Last Ditch Effort to Avoid Foreclosure

questions@castlelaw.net (Blog Author)4766 — Tue, 23 Sep 2008 08:00:00 EST

Are you stuck in a mortgage that you can't seem to get yourself out of? Is your home on the brink of foreclosure? This 'On The Money: Web Extra' shows you a few steps you can take to give yourself one last fighting chance against your mortgage company.

http://www.cnbc.com/id/26841906

However if you still find yourself in a position you cannot get out of, Castle Law Office of St. Louis and St. Louis bankruptcy attorney James Brown helps people put together a plan to save their home and get back on their feet. In many cases, a Chapter 13 repayment plan can stop the foreclosure and allow the Missouri and Illinois homeowner a chance to save their home. If things are too bad to save the home, in many cases a Chapter 7 can be considered to get the debt relief needed.

NBC Report Reveals That 85% of Women Are In Debt

questions@castlelaw.net (Blog Author)4693 — Fri, 19 Sep 2008 08:00:00 EST

A recent NBC report reveals that 85% of American women are in debt. The amount of debt is not just limited to mortgage loans and car loans, but much of the debt is credit card debt and signature loans. There are several important steps to take to begin the journey to get out of debt and build a better financial future.

I came across a segment on BetterTV.com prepared by one of my friends and colleagues, Los Angeles attorney Alexis Martin-Neeley, about the problem women are having with debt and what steps they can take to get back on their feet. The segment is titled Maxed Out .

Hopefully, the tips contained in Alexis' segment will help you get back on track. However, there are options available to you if you find yourself beyond being able to recover. If you feel like you are still falling behind and getting into a financial crisis, Castle Law Office has helped more than 20,000 families get the relief they need and obtain a discharge in a Chapter 7 or Chapter 13 bankruptcy.

Castle Law Group and St. Louis, Missouri and Illinois chapter 7 bankruptcy attorney and chapter 13 lawyer James Brown frequently help people avoid foreclosure, repossession and wage garnishment by filing a chapter 7 bankruptcy or chapter 13 bankruptcy case. If you would like to find out more about what options you have to get out of credit card debt, you can request a free copy of my book "7 Critical Mistakes to Avoid the Dismissal of your Bankruptcy Case" or give us a call toll free at 1-866-570-8484.

September Newsletter Hot Off the Press

questions@castlelaw.net (Blog Author)4386 — Thu, 04 Sep 2008 08:00:00 EST

Just got done with my September newsletter. You can read it in its entirety by clicking here. My main story this month is the lessons I learned from my 16 year old son's recent auto accident. Also, you will see a new question & answer section that I will change up every month. You can read all of our past newsletters in the library section of our website.

4 Reasons Why Internet Loans Are A Bad Idea

questions@castlelaw.net (Blog Author)4384 — Thu, 04 Sep 2008 08:00:00 EST

If you are a fan of late night or daytime television, you have undoubtedly seen those endless commercials featuring actor Gary Coleman pushing cash loans from the Internet. The message is basically you can get a quick payment of cash right to your checking account with a simple application process.

The company being promoted by Gary Coleman is CashCall.com. As you can expect, if an offer is too good to be true, it probably is. In looking at the offer on the commercial and their website, this company takes advantage of people in many ways and you should be weary of taking any money from them.

I have just finished a more in depth article on "4 Reasons Why Internet Loans Are A Bad Idea". You can find it in the library section of our website.

Castle Law Group and St. Louis, Missouri and Illinois bankruptcy attorney James Brown frequently help people avoid foreclosure, repossession and wage garnishment by filing a chapter 7 bankruptcy or chapter 13 bankruptcy case. If you would like to find out more about what options you have to get out of credit card debt, you can request a free copy of my book "7 Critical Mistakes to Avoid the Dismissal of your Bankruptcy Case" or give us a call toll free at 1-866-570-8484.

How To Be a Savvy Credit Card Holder

questions@castlelaw.net (Blog Author)4378 — Thu, 04 Sep 2008 08:00:00 EST

Castle Law Office of St. Louis is always looking for ways to help you stay out of a financial crisis. The best way to stay out of debt and prevent negative charges to your account is to make sure you are not spending money that you do not have. If you follow this guideline and pay your bills on time, you will not have to worry about the credit card companies raising rates or changing terms on you and keep you out of a difficult financial situation.

The following article provides you with 12 steps to credit card success, and as long as you follow these strategies you will be living in financial freedom. It is time for you, the consumer, to get smart about credit and beat the credit card issuers for a change.

If you feel like you are still falling behind and getting into a financial crisis, St. Louis, Missouri and Illinois bankruptcy attorney James R. Brown with Castle Law Office has helped more than 20,000 families get the relief they need and obtain a discharge in a Chapter 7 or Chapter 13 bankruptcy. For more information, order our Ultimate Debt Relief Package or call us for free at 1-866-570-8484.

Five Big Bills You Can Cut Now

questions@castlelaw.net (Blog Author)4354 — Wed, 03 Sep 2008 08:00:00 EST

Castle Law Group is constantly looking for ways to help the average consumer get the help they need to provide for their families, especially in today's harsh economy. As prices increase on every product from milk to gasoline, everyone is looking for quick and simple ways to cut expenses and save some extra cash. Fortunately there are several different ways to easily cut your expenses, however some will save more cash than others. Add up all your expenses, and you will see that you could cut your annual expenses by hundreds of dollars or more. I found an article that will show you five different ways you can go about cutting your expenses and saving up that extra cash for whatever it is you need. These tips will help you during this time of a struggling economy, and will still benefit you once the economy begins to thrive again.

If things continue to get worse and you feel that your debt and credit cards are out of control, or if you are facing a foreclosure, repossession or wage garnishment, St. Louis, Missouri and Illinois bankruptcy attorney James R. Brown with Castle Law Office has helped more than 20,000 families get the relief they need and obtain a discharge in a Chapter 7 or Chapter 13 bankruptcy. For more information, order our free Ultimate Debt Relief Package or call us for free at 1-866-570-8484

Credit Counseling "Services" Really Aren't

questions@castlelaw.net (Blog Author)4308 — Sun, 31 Aug 2008 08:00:00 EST

Before you go running to the services of a debt relief agency, you should read this article in Consumer Affairs.

You will find that while there are a few credit counseling services that do good work, there are plenty who won't do much for you, and some who will even prey on you in your moment of financial weakness.

http://www.consumeraffairs.com/debt_counsel/debt_counseling.html

Senior Citizens More Than Two Times Likely to File for Bankruptcy Relief

questions@castlelaw.net (Blog Author)4247 — Thu, 28 Aug 2008 08:00:00 EST

I just recently posted a news article on my website about a new report that will come out in January from the Consumer Bankruptcy Project citing very interesting statistics about senior citizens 55 years of age and older and the growing need for bankruptcy relief. The Consumer Bankruptcy Project is made up of a group of researchers from Harvard Law School. The report will appear in the January edition of the Harvard Law and Policy Review.

The growing cost of healthcare and the fixed income levels of most senior citizens has been the leading causes in this dramatic increase in the need for bankruptcy help. Castle Law Office and St. Louis bankruptcy attorney James Brown frequently represents senior citizens who are in similar circumstances. If you would like to find out more about the options you have, visit our website today or call us toll free at 1-866-570-8484.

Obama Supports Changes to Bankruptcy Process

questions@castlelaw.net (Blog Author)4246 — Thu, 28 Aug 2008 08:00:00 EST

In a speech given earlier in July, Senator Barack Obama has come forward to tell the American people that he has plans to change the bankruptcy laws to help ease the burden on certain groups of citizens like the elderly and military. He openly criticized his opponent, Senator John McCain for putting the needs of credit card companies and banks ahead of the average worker, according to an Atlanta Journal-Constitution story.

It's been a long time since there has been somebody in Washington to fight for the honest, average hard working American and help them get through this struggle of overwhelming debt. Quoted in a Wall Street Journal Article, law professor Robert Lawless of the University of Illinois indicated how Obama's targeted proposals are about as far as someone can go without saying that he would undo the 2005 bankruptcy law.

St. Louis, Missouri and Illinois bankruptcy attorney James Brown with Castle Law Office has been battling the credit industry for over 15 years helping over 20,000 families get the debt relief they need through a Chapter 7 or Chapter 13 bankruptcy case.

Record Number of People Helped to Avoid Foreclosure

questions@castlelaw.net (Blog Author)4245 — Thu, 28 Aug 2008 08:00:00 EST

New reports are out showing that across the US, record numbers of families have avoided foreclosure through loan workouts of some kind according to Hope Now, an organization prompted by the U.S. Department of Treasury last October to reach out to families in danger of foreclosure. In July, more than 192,000 borrowers took advantage of some type of restructuring their mortgage to avoid losing their home. You can read more on these reports by clicking here.

Of course, many more families either cannot qualify for this kind of help or do not know it is available to them. Castle Law Office of St. Louis and St. Louis bankruptcy attorney James Brown help people to put together a plan to save their home and get back on their feet. In many cases, a Chapter 13 repayment plan can stop the foreclosure and allow the Missouri and Illinois homeowner a chance to save their home. If things are too bad to save the home, in many cases a Chapter 7 can be considered to get the debt relief needed.

James Brown is the published author of "7 Critical Mistakes to Avoid the Dismissal of your Bankruptcy Case" and provides those books free of charge to anyone in Missouri and Illinois. People don't realize they have a number of options to consider when facing a foreclosure. To learn more, you can go to our website or call us for free at 1-866-570-8484.

Consumer Credit Counseling Service Not All It's Cracked Up To Be.

questions@castlelaw.net (Blog Author)4179 — Mon, 25 Aug 2008 08:00:00 EST

I just posted a news item about an article I recently ran across on the consumer credit counseling agencies that you will want to take a look at before you consider using them as an alternative to bankruptcy. You can find this an other useful news items in our News section.

Castle Law Office has represented over 20,000 families in the St. Louis, Missouri and Illinois areas file for bankruptcy relief. If you would like to find out more, check out the information on our website or call us toll free at 1-866-570-8484.

Confessions of a Subprime Lender Revealed

questions@castlelaw.net (Blog Author)4079 — Thu, 21 Aug 2008 08:00:00 EST

I recently ran across an article and video that reveals the tactics used by many in the subprime lending business to lure people into loans they cannot afford. You can read the full article in the News section of this website. It is a shame that so many people are getting caught up in this mess in an honest attempt to provide a home for their family. The unfortunate result is that more homes are going into foreclosure than ever before.

The good news is there is releif available through a Chapter 7 or Chapter 13 bankruptcy. If you simply want to get out of the loan and surrender the property back to the lender, a Chapter 7 might be the best scenario for you. If you want to save the home and continue to make payments on it, you should contact us to check into whether you qualify for a Chapter 13 bankruptcy.

A Chapter 7 or Chapter 13 bankruptcy can be a complex case which, if not done properly, could lead to the loss of your property or dismissal of your case. Before you talk with any creditor or lawyer about your situation, you should request a copy of my book "7 Critical Mistakes to Avoid the Dismissal of your Bankruptcy Case". I wrote the book so you would be informed about the options you have and what to do to avoid bad things from happening in your case.

Castle Law Office has represented over 20,000 families in the last 15 years successfully get their debt under control and get the relief they need. If you would like to find out more about the bankruptcy process, including the insider secrets the credit card companies don't want you to know, visit our main website. Or call our office toll free at 1-866-570-8484.

Want To Improve Credit? Don't Make The Mistake Of A Credit Protection Program

questions@castlelaw.net (Blog Author)4051 — Wed, 20 Aug 2008 08:00:00 EST

In today's economy with rising gas prices, inflation, the mortgage crisis and higher unemployment rates, it is not suprising that the number of bankruptcy cases being filed is on the rise. However, Chapter 7 and Chapter 13 bankruptcy is not for everyone. I am commonly asked as to what alternatives to bankruptcy there are.

One of those alternatives is credit protection programs. A credit protection program charges a monthly fee to basically monitor your credit score and alert you if something bad happens. These are mostly online credit protection programs that hook you into a yearly membership fee.

Here is the truth on these things:

   1. They first claim they will access a 3-in-1 credit report for you for a price. This is unnecessary as you can obtain the same    information for free by going to AnnualCreditReport.com.

   2. They also offer to monitor your credit activity every business day, but you can do the exact same thing by watching your bank statements.

    3.   If you feel like you must have a regular update on your credit report, instead of paying over $140 per year to one of these credit protection programs, you can sign up for this service at myFICO.com or one of the three credit bureaus and you will save over $100.00.

Finally, just monitoring your credit file will not necessarily mean you will be able to maintain or improve your credit score. There are several steps that you can take to stay on track without paying someone to do it. The first step should be to order a copy of my free book "10 Must Know Secrets to the Life You Dreamed of After Bankruptcy".

How Long Can A Creditor Try To Collect A Debt

questions@castlelaw.net (Blog Author)4038 — Tue, 19 Aug 2008 08:00:00 EST

Have you ever opened the mail to find a notice from a collection agency for a bill that you have no clue what it is for? After looking into it, you realize it is a debt from 10 years ago? The first question that usually comes to mind is: Do I have to pay for this?

Well, it comes down to the statute of limitations, which is legalese for the amount of time in which a lawsuit must be filed against you by that creditor. Every state has different lengths of time for their statute of limitations, but the Missouri limitations on enforcement are as follows:

              Open Account (credit card):    5 years
              Written Contract:                     10 years
              Domestic Judment:                10 years (renewable every 3 years)
              Foreign Judgment:                 10 years (renewable every 3 years)

For Illinois, use the following:

             Open Account (credit card):      5 years
             Written Contract:                       10 years
             Domestic Judgment:               20 years
             Foreign Judgment:                   use limitations period in foreign jurisdiction

Keep in mind that the statute of limitations on debt only means they cannot sue you after that time period has passed. However, it doesn't mean they have to stop trying to collect. In addition, even though the debt is old, it can still hurt your credit for as long as they are reporting the debt delinquent. Debts remain on your credit report for at least 7 years from the date of last reporting.

Finally, keep in mind that a few debts are not subject to the staute of limitations such as child support, student loans, taxes and certain fines.

Secret Ways Car Dealers Squeeze More From You Finally Revealed

questions@castlelaw.net (Blog Author)4037 — Tue, 19 Aug 2008 08:00:00 EST

It seems a recent poll has shown that car dealers do not make the majority of their money on the actual sale of the vehicles. Many people seem to think they make most of their profits on the re-sale of trade-ins, but that is not the case.

As a car shopper, once you have the deal worked out with your salesman and you are taken to the finance office, that is where you need to be on your toes. This is the place where all of the extras, features, taxes and insurance that you probably don't want or need are added into your loan agreement.

This is also the place where it is the easiest to get you to say YES. You are thrilled at getting the new car and in most cases, you simply tell the finance guy yes to all of those little things he suggests should be added to benefit your purchase. Normally, he does this by pointing out how smart you are and you wouldn't want to get caught without such extras.

It all seems easy enough, but when you roll all of those extras into your loan and finance it over 3-6 years, you are paying way more than you should be for the services provided.

The best advice is to do your homework before you go to the dealer. Know what your likely interest rate will be based on your credit score. Research all options for your vehicle before you get there so you don't get caught in the position of agreeing to suggested add-ons. And finally, always negotiate the actual price of the vehicle, not just what fits into a monthly payment for you.

Follow these guidelines and you can feel confident the next time you step into a car dealership to get that great deal.

If you would like to read more, click here.

Penalties Make Up HALF of Credit Card Industry Profits

questions@castlelaw.net (Blog Author)3928 — Tue, 12 Aug 2008 08:00:00 EST

The Christian Science Monitor recently published an article that digs very deep into the less-than-ethical practices of the credit card industry.

Aside from mentioning the standard practice of changing interest rates for no reason at all, the author also makes the startling revelation that penalties make up half of the revenue of credit card companies.

For more information, follow the link below.

http://www.csmonitor.com/2008/0813/p09s01-coop.html

Tell the Feds About Your Credit Card Woes

questions@castlelaw.net (Blog Author)3692 — Wed, 30 Jul 2008 08:00:00 EST

The Federal Reserve Board is giving consumers a chance to finally speak their minds about the predatory lending practices of credit card companies.

To submit a comment on how your rates change with the wind or the pointless and absurd fees that you are charged on a regular basis, follow the link below.

This could all be leading to serious credit card reform, which is good for all of us.

http://www.federalreserve.gov/generalinfo/foia/ElectronicCommentForm.cfm?doc_id=R-1314&doc_ver=1&name=RegulationAA-UnfairorDeceptiveActsorPractices&date=20080502a

Questions About The Housing Bill?

questions@castlelaw.net (Blog Author)3691 — Wed, 30 Jul 2008 08:00:00 EST

A sweeping housing bill was signed into law today that should provide some relief to homeowners that are struggling under the mortgage crisis.

To find out how these new rules and regulations will affect you, follow the link below to a summary of the new law.

http://www.house.gov/apps/list/press/financialsvcs_dem/press072308.shtml

Merger Leads to Local Layoffs

questions@castlelaw.net (Blog Author)3103 — Thu, 19 Jun 2008 08:00:00 EST

As if the economy wasn't in enough trouble, things are about to get a little worse locally.

A merger at Thompson Reuters Corporation is expected to cause about 100 St. Louis area layoffs.

It's not as if the St. Louis area needs any more examples of how economic certainty can hit anyone at anytime, but this serves as a fine one.

http://stlouis.bizjournals.com/stlouis/stories/2008/06/16/story3.html

Is it the Competitive Spirit or is it Debt Collectors?

questions@castlelaw.net (Blog Author)3101 — Thu, 19 Jun 2008 08:00:00 EST

It turns out that Evander Holyfield isn't necessarily fighting past his prime because he wants to. It probably has something more to do with a stack of bills.

Holyfield has an enormous estate in Atlanta, and lives what is by all reports an extravagant lifestyle.

If you follow the link below, you'll find an article that will give you a better idea as to why Holyfield is planning on putting the gloves back on.

http://www.secondsout.com/World/news.cfm?ccs=225&cs=24850

Let's Go To The Movies

questions@castlelaw.net (Blog Author)2859 — Sat, 31 May 2008 08:00:00 EST

There is a wonderful documentary out called "Maxed Out."

It is a documentary that gives a real and accurate portrayal of the credit card industry and the people that make billions off of rigging the system.

This should be required viewing for everyone, and not just those that are in need of bankruptcy attorneys.

Follow the link below for more information.

http://www.maxedoutmovie.com/

Reader's Digest Sells CompassLearning in Bankruptcy

jbrown@castlelaw.net (News Author)12658 — Fri, 05 Feb 2010 08:00:00 EST

According to Reader’s Digest Association Inc., the sale of its CompassLearning unity has received the approval of a bankruptcy judge and the publisher has reached an agreement with a pension group on claims that it may have forced the closing of its U.K. business.

Marlin Equity II LP won CompassLearning, which creates interactive teaching materials for schools and libraries, beating out four other bidders in an auction that took place on January 7. Marlin, which is run by El Segundo, California-based private equity firm Marlin Equity Partners, has agreed to pay $31.8 million, an increase from its initial offer of approximately $20.3 million in November.

According to Reader’s Digest spokesman William Adler, on January 12, the sale was approved by U.S. Bankruptcy Court Judge Robert Drain in White Plains, New York. Drain is scheduled to hold a January 15 hearing to consider confirming the Chappaqua, New York-based publisher’s reorganization plan to emerge from bankruptcy.

Under Reader’s Digest’s reorganization plan, the publisher’s $2.2. billion debt would be reduced by 75 percent to $550 million.

Reader’s Digest filed for Chapter 11 bankruptcy protection in August, citing a decrease in advertising spending and a high debt load incurred in its 2007 acquisition by Ripplewood Holdings LLC for $1.6 billion.

Foreclosures Decrease in Polk County

jbrown@castlelaw.net (News Author)12659 — Fri, 05 Feb 2010 08:00:00 EST

In 2009, the home foreclosure rate in Polk County saw an improvement over figures from 2008, according to information from the office of the Polk County Recorder. In 2008, one out of every 86 homes was foreclosed upon, but in 2009, one out of every 91 was foreclosed upon.

Polk County fared better than the national average, which saw and increase from one out of every 54 homes in 2008 to one out of every 45 homes in 2009, or 2.2. percent, according to information from RealtyTrac Inc. The state of Missouri also saw an improvement from one out of every 84 in 2008 to one out of every 93 in 2009. The figures for total housing units are based on data from the 2008 U.S. Census Bureau.

The value of homes foreclosed upon in Polk County in 2009 totaled $12.1 million, approximately $2.5 million less than the $14.6 million in 2008. The value in 2007 was approximately $15.4 million and included the $5.5 million foreclosure of Springhill Falls apartments, the largest foreclosure in Polk County history.

According to Recorder Carol Poindexter, the decrease in foreclosure activity is evident in the smaller number of documents handled by her office in 2009. She says there were 5,599 documents last year and since she began keeping track in 1994, there have only been two years with a lower number.

Car Dependency Linked to High Foreclosure Rates

jbrown@castlelaw.net (News Author)12660 — Fri, 05 Feb 2010 08:00:00 EST

According to a recent report by the Natural Resources Defense Council (NRDC), homeowners in car-dependent areas without transit options have a higher risk of foreclosure. The NRDC has called for mortgage underwriting standards to start taking so-called “location-efficiency” into account.

The report is focused on the impact of location efficiency, a concept NRDC and other groups pioneered in the 1990s, on mortgage performance in three key cities: Chicago, San Francisco, and Jacksonville, Florida. The report shows that vehicle ownership is key to predicting mortgage performance and suggest that mortgage underwriters, policymakers, and real estate developers should take it into account.

Transportation costs account for approximately 17 percent of the average American household’s income. The report discovered that if driving is your only choice, you have considerably less economic flexibility. Said flexibility could protect homeowners from foreclosure in rough times.

Illinois Auto Dealers Fight GM & Chrysler Bankruptcy Cutbacks

jbrown@castlelaw.net (News Author)12528 — Sat, 30 Jan 2010 08:00:00 EST

GM has been tallying profits and showing signs of new growth in the beginning of 2010. In addition, its cars have won several awards and it may well profit from the Toyota recalls of the last two months. However, following the auto company’s summer bankruptcy, in which the carmaker closed 12 auto factories and cut 20,000 jobs, GM is still facing issues with the hundreds of auto dealers that the company let go in 2009.

In Illinois alone, 107 car dealers are appealing the car company’s decision to close their outfits. Only one other state in the county has such high numbers of appeals filed.

The appeal proceedings will be handled by the American Arbitration Association. At this time, according to the Illinois Automobile Dealers Association, individual dealers are not yet discussing the appeals with the media. Many of the dealers remained opened, but have suffered without new car models coming in from GM and Chrysler. Other dealers closed their doors when dealer cutbacks were announced this summer.

The date of the car dealership appeals hearings have not yet been set.

General Motors filed for bankruptcy on June 1, 2009, and received roughly $50 billion in government stimulus funds to help them recover. The car company has staged a comeback since then, but is still facing a number of administrative woes.

One Missouri Woman's Story Of Chapter 7 Bankruptcy

jbrown@castlelaw.net (News Author)12476 — Fri, 29 Jan 2010 08:00:00 EST

This week the St. Joseph, Missouri, News-Press covered some shocking Missouri bankruptcy statistic for 2009 and shared the story of one local woman’s struggle with credit card debt that ended in a petition for Chapter 7 liquidation bankruptcy.

The article tells the story of a young woman who because of the subject matter is going by the alias Angie. She is a single mom with a steady job and a solid credit score, but a high maximum on her credit cards makes her think it’s okay to spend a little extra and carry a balance. Soon, though, her life expenses began to pile up and she began spending more than she made. After she slowly spent her savings, she slowly began running up and maxing out four credit cars. Before she knew it, she was in debt $40,000 and had $700 monthly minimum payments.

Thousands of families find themselves in Angie’s position – single parents or families who simply spend a few hundred dollars a month more than they make can soon find themselves under a mountain of debt – and with quickly-rising interest rates into the 20s. Angie said she didn’t go crazy buying things she couldn’t afford, but that she simply bought an occasional item for herself or charged her children’s daycare costs.

Angie found that the best solution for her situation was filing for Chapter 7 bankruptcy in Missouri. She is now slowing rebuilding her credit with a credit card with a very low limit and is making sure to live within her means.

New Study: Women More Often Victims Of Predatory Loans

jbrown@castlelaw.net (News Author)12478 — Fri, 29 Jan 2010 08:00:00 EST

Predatory lending has led to major country-wide economic issues and left thousands of families on the brink of foreclosure and bankruptcy. While some research has shown that predatory lending took advantage of the poor and the uneducated, a new study has found that subprime loans and predatory mortgage lending victimizes women more often than men. Latina and black women were four to five times more likely to receive subprime loans in comparison to white men between 2005 and 2008.

In-depth research funded by The Nation Institute and conducted by National Institute of Computer-Assisted Reporting at the Missouri School of Journalism in Columbia, Missouri, has found that while many are still suffering from the effects of a predatory loan that they can’t afford payments on, the majority of those people are women. After crunching the number from Home Mortgage Disclosure Act data, researchers found that Women whose loan debt amounted to a smaller-than-average percentage of their income were more likely to get bad or dangerous loans in comparison to men who had similar financial histories.

Why would this be the case? Some think that perhaps mortgage brokers thought that they could pull subprime loans off more successfully with women. Other point out that minority women, single women, and elderly women were preyed on more than other groups. Now many women are facing bankruptcy and foreclosure, especially since women tend to concentrate most of their assets into their homes. Women now make up 25% of all homebuyers.

St. Louis Area Business Bankruptcies Skyrocket In 2009

jbrown@castlelaw.net (News Author)12479 — Fri, 29 Jan 2010 08:00:00 EST

While some signs point to a recovery economy and an end to the recession, other trends in St. Louis continue to worsen with no signs of recovery. In a new report release by Clayton, Missouri, accounting firm Hoffman Clark, it seems that St. Louis business bankruptcies are at their worst yet, with high number of bankruptcies in 2009 and shocking fourth quarter numbers that show the worst rate of business bankruptcies since the recession began in 2008.

All in all, the study reports that the rate of St. Louis area business bankruptcies has increased by 19 percent in comparison to the rate of business bankruptcies recorded in 2008. The accounting firm found that 398 St. Louis, Missouri, businesses filed for bankruptcy in 2009, compared with 334 bankruptcy filings in 2008.

A shocking 108 bankruptcy filings happened in the final fourth quarter of 2009, making it the worst three months of business bankruptcy filings in years. St. Louis bankruptcy rates rose 6 percent in the fourth quarter of 2009 from the third quarter of 2009 and 26 percent from the fourth quarter of 2008.

The numbers for this report were taken from the U.S. Bankruptcy Court for the Eastern District of Missouri with divisions covering St. Louis, Cape Girardeau and Hannibal, Mo.

While individual or personal bankruptcies were not included in this report, other studies have confirmed that personal St. Louis bankruptcies are at their highest point since the 2005 bankruptcy reform laws.

Muzak's Bankruptcy Plan Approved

jbrown@castlelaw.net (News Author)12499 — Fri, 29 Jan 2010 08:00:00 EST

According to a January 12 statement from music and entertainment company Muzak Holdings LLC, the company’s bankruptcy reorganization plan received the approval of a U.S. judge, paving the way for the company to emerge from bankruptcy later in January.

Muzak, best known for providing background music in stores, hotels, and elevators, filed for bankruptcy protection in February 2009 in order to restructure maturing debt.

The plan allows for the company’s lenders to trade debt in the company for equity, reducing the company’s outstanding debt to $230 million. The company’s debt was more than double that amount when it filed for bankruptcy.

Also on January 12, the company’s $108.75 million senior secured exit financing facility from GE Capital, Silver Point Finance, and MFC Global Investment Management received the approval of a U.S. bankruptcy judge in Delaware.

The company expects to exit bankruptcy by the end of January.

The company’s roots trace back to the 1930s, when it sold re-recorded music for factories, elevators, and passenger ships. Muzak was owned by private equity fund ABRY Partners LLC when it filed for bankruptcy protection.

Japan Airlines to File Bankruptcy Soon

jbrown@castlelaw.net (News Author)12316 — Fri, 22 Jan 2010 08:00:00 EST

Japan Airlines, the largest air carrier in Asia, is prepared to file for bankruptcy protection as early as January 19, according to media reports out of Japan.

The move, which is similar to a Chapter 11 filing in the U.S., would be one of the largest corporate failures in the history of Japan. Under provision of the law, JAL shares would be removed from the Tokyo Stock Exchange. The government-backed Enterprise Turnaround Initiative Corp. would then officially announce a restructuring plan for the airline involving pre-packaged court-backed rehabilitation, including a $3.3 billion injection from the fund.

Delta Air Lines and American Airlines are believed to be two major U.S. companies in the running to invest in the troubled Japanese airline.

Yellow Pages Publisher Makes Final Push to Emerge from Bankruptcy

jbrown@castlelaw.net (News Author)12284 — Thu, 21 Jan 2010 08:00:00 EST

Yellow pages publisher R.H. Donnelly has cleared the final obstacle on its path to emerge from bankruptcy by winning court approval for its reorganization plan.

On January 12, the plan received the approval of U.S. Bankruptcy Judge Kevin Gross at a hearing in Delaware. The plan also has the overwhelming support of creditors.

David Swanson, the CEO of the Cary, North Carolina-based company, believes the decision will allow them to be able to complete their restructuring within the next few weeks. He believes the company will emerge from bankruptcy protection as a stronger business “with a more management capital structure and a stronger financial foundation.”

Most of the plan was negotiated with creditors prior to Donnelly filing for Chapter 11 bankruptcy protection in May 2009.

The plan will reduce the company’s debt by $6.4 billion, in turn reducing its annual interest expenses by $500 million. Creditors to which the company owes approximately $6 billion in unsecured debt will receive virtually 100 percent ownership of the business, wiping out the last vestiges of shareholder value. The unsecured creditors will also receive approximately $300 million in debt.

Donnelley publishes directories in 28 states.

St. Louis Business' Bankruptcy Filings See Big Increase

jbrown@castlelaw.net (News Author)12262 — Tue, 19 Jan 2010 08:00:00 EST

According to a recent study, the number of businesses in the St. Louis area that have filed for bankruptcy saw an increase of 19 percent in 2009.

In a report released by Hoffman Clark, an accounting firm out of Clayton, Missouri, on January 11, 398 St. Louis businesses filed for bankruptcy in the year ending December 31. That number is an increase from 334 in 2008 and 176 in 2007.

The number of businesses that filed for bankruptcy in the St. Louis area in the fourth quarter of 2009 was 108, the highest quarterly number since the recession began. That represents an increase of six percent from the third quarter of 2009 and 26 percent from the same quarter in 2008.

The Hoffman Clark Business Bankruptcy Trends Report focuses on bankruptcy filings involving business debts. Non-business bankruptcy filings, also called personal or consumer bankruptcy filings, are not included in the report.

Several Loan Modification Scammers Indicted in San Diego

jbrown@castlelaw.net (News Author)12263 — Tue, 19 Jan 2010 08:00:00 EST

A group of four people, including a convicted felon and two real estate brokers, has been indicted on charges of running an investment scam preying on Filipinos in San Diego, California.

The group, which initially was investigated by The San Diego Union-Tribune in March 2009, is faced with more than 54 charges, including foreclosure consultant fraud, grand theft, and securities fraud. The group allegedly persuaded families to transfer ownership of their homes to two trusts, with the promise that the group would help them modify and lower their mortgages.

The defendants are 52-year-old Edmundo Rubi, 59-year-old Joseph Encarnacion, 51-year-old Ben Hebron, and 53-year-old Gloria Hebron.

The FBI and the San Diego County District Attorney’s Office conducted the investigation. The grand jury handed down the indictment on December 21, but it was sealed until January 11.

A Sinkhole In Battlefield, MO – Family Declares Bankruptcy

jbrown@castlelaw.net (News Author)12246 — Mon, 18 Jan 2010 08:00:00 EST

Many people have the misconception that those who file for bankruptcy in Missouri simply don’t understand how to manage their money or simply spend more than they make. However, more often than not bankruptcy is used as a solution to an unforeseeable emergency. This was certainly the case for the White family, who filed for bankruptcy in Battlefield, Missouri, after their house literally sank into the ground.

Kasey and Kandice White were enjoying their new home in Greene County when their five-year-old son Danny discovered an enormous hole near the foundation. The sinkhole meant that their home was built on a rock joint – common in the Ozarks. Although the family could fix the hole for tens of thousands of dollars, the home’s value would plummet. And although the home had house insurance, sinkholes are not covered because they are considered an act of god.

In the end the best option for the Whites was to walk away from their home and the $50,000 of equity they had in it. The family declared bankruptcy and got a fresh start in a new home built on a solid foundation.

Your home is your biggest asset – and if it is irreparably damaged by an unforeseeable cause not covered by your home insurance, you could lose almost everything you have in one fell swoop. In times like these, bankruptcy may be the best option for you and your family. Especially if you are suffering from other financial strains – the Whites also had an unexpected surgery and a job loss – bankruptcy could be the answer for you.

Florida Courts Hope to See an End to the Foreclosure Crisis

jbrown@castlelaw.net (News Author)12180 — Wed, 13 Jan 2010 08:00:00 EST

The chief judge of the court Pinellas-Pasco court system in Florida is hoping 2010 will bring relief for judges, consumers, and lenders caught in the growing morass of the worst foreclosure crisis in the U.S.

According to Pinellas-Pasco Circuit Court Chief Judge J. Thomas McGrady, the caseload is nearly 2,000 foreclosure cases per judge. And with 2009 coming to an end, McGrady says the cases continue to stack up twice as fast as judges can resolve them. The workload for judges handling all kinds of civil cases has nearly tripled because of the rapidly increasing number of foreclosures, which has roughly doubled each year for the past three years or so.

McGrady says that if you add in foreclosures to other civil matters, judges in Pinellas and Pasco are struggling to keep up with their dockets and are falling behind in many cases. He says the total now reaches more than 3,400 cases per judge.

Recently, the Supreme Court of Florida offered one solution in a court order essentially calling for mandatory mediation for homesteaded properties before the legal process of foreclosures can begin. Said order establishes a system of mediation management and shifts the cost burden to lenders to encourage homeowners to renegotiate loans instead of simply giving up and walking away.

As of now, McGrady says in Pinellas and Pasco counties alone, there are more than 23,000 open foreclosures. The Supreme Court estimates the number in Florida to be more than 456,000, placing the state at the epicenter of the nation’s foreclosure crisis.

McGrady says the situation will only grow worse until the foreclosure situation is resolved.

Brown's Chicken & Pasta Inc. Files for Chapter 11 Bankruptcy

jbrown@castlelaw.net (News Author)12181 — Wed, 13 Jan 2010 08:00:00 EST

A chain of chicken restaurants that made headlines across the U.S. in 1993 when seven employees at one of its stores in suburban Chicago were killed has filed for Chapter 11 bankruptcy protection.

On December 29, Brown’s Chicken & Pasta Inc. filed for bankruptcy, two months after the company was ordered by a DuPage County judge to pay more than $800,000 to a former vice president and minority shareholder who filed suit for wrongful termination.

According to the company’s attorney, Brown’s was unable to pay the judgment. He said $300,000 of that amount was due on the day the company filed. He says it would have made them “insolvent.”

The company’s filing listed assets between $100,000 and $500,000, liabilities of as much as $10 million, and 50 to 99 creditors.

The filing is the latest in a series of setbacks for the company. The franchise once had as many as 150 stores, but that number has declined to approximately three dozen since the murder of seven employees at one of its restaurants in 1993. Their bodies were discovered in a walk-in cooler.

The company’s attorney said the incident and the “constant barrage” of negative publicity had a significant impact on the company. The story was front page news across the nation for several days and in the Chicago area for several months. The story continued making headlines for years due to the hunt for the suspects, the arrest of two men years later, and their convictions on murder charges, the first years ago and the second two months ago.

The company successfully defended a number of lawsuits in the years following the murders, but the money and time spent on the suits left an impact on the company.

Brown’s plans to keep its restaurants, all but three of which are owned by franchisees, open as the company restructures. The company’s attorney says the three stores the company owns are to be closed or sold within the next 30 days.

Tiger Woods' Sponsor to File Chapter 11 Bankruptcy

jbrown@castlelaw.net (News Author)12087 — Wed, 06 Jan 2010 08:00:00 EST

TLC Vision Corp., the eye-care service company that sponsors pro golfer Tiger Woods, has filed for Chapter 11 bankruptcy protection in order to restructure its debt.

In the documents the company filed in U.S. Bankruptcy Court in Wilmington, Delaware on December 21, the company listed assets and debt of $100 million to $500 million. Affiliates TLC Vision (USA) Corp. and TLC Management Services Inc. also sought bankruptcy protection.

According to TLC Vision, it reached an agreement to restructure debt with some senior lenders prior to the filing. In order to expedite the process, a pre-arrange plan was included. The plan provides for conversion of some debt to 100 percent of new equity of TLC Vision (USA), which will emerge as a private company, according to TLC.

A spokesman for the company, Stephen Phillips, said that the company’s relationship with Tiger Woods would continue with no changes.

The Chesterfield, Missouri-based company seeks approval of $15 million in debtor-in-possession financing, authority to use of cash collateral, permission to pay critical vendors, and employee wages and benefits.

TLC Vision operates laser vision-correction centers in the U.S. and Canada. No other affiliates including TLC Laser Eye Centers are involved in the filing.

US Fidelis Headquarters to Be Sold in Foreclosure

jbrown@castlelaw.net (News Author)12088 — Wed, 06 Jan 2010 08:00:00 EST

One Wentzville, Missouri-based company will not remember 2009 as a banner year.

US Fidelis, which had more than 1,000 employees at the beginning of 2009, announced hundreds of layoffs earlier in December and recently said that it had stopped selling extended-service contracts.

Now word has come that the company’s headquarters will be sold in a foreclosure auction.

Frontenac Bank is publicizing the January 14 trustee’s sale. They say the brothers who began the company, Darian and Cory Atkinson, defaulted on their payments.

US Fidelis is also faced with legal scrutiny due to consumer groups and government regulars accusing the company of selling expensive after-market coverage offering limited value. The state of Missouri is also investigating claims of deceptive practices.

In spite of all the bad news, the company says the sale will not affect customer service operations.

Foxland Harbor Marina Files for Bankruptcy to Prevent Foreclosure

jbrown@castlelaw.net (News Author)12089 — Wed, 06 Jan 2010 08:00:00 EST

An entity owning land off Old Hickory Lake in Gallatin, Tennessee planned for a marina has filed for bankruptcy protection in order to stave off foreclosure, according to a spokesman.

On the morning of December 28, Foxland Harbor Marina LLC filed for bankruptcy in the U.S. Bankruptcy Court in Nashville in advance of the foreclosure sale that lender American Security Bank & Trust had planned.

Included in the filing is an estimate of $1 million to $10 million in assets and liabilities.

Foxland is seeking approval from the Army Corps of Engineers to construct a full-service marina at Station Camp Creek.

American Security is also a lender to another company that filed for bankruptcy in December: Fairvue Club Properties, the owner of the Club at Fairvue at Fairvue Plantation.

Maker of "Equal" Files Gets Approved for Chapter 11 Bankruptcy

jbrown@castlelaw.net (News Author)12026 — Thu, 31 Dec 2009 08:00:00 EST

On December 16, Chicago-based Merisant Worldwide Inc., the manufacturer of the artificial sweetener Equal, announced that a court had approved its reorganization plan under Chapter 11 bankruptcy.

The company is predicting that it could emerge from bankruptcy as soon as January 8, nearly a year after the company filed for Chapter 11, citing declining sales, a large load of debt, and the global credit crisis as factors.

Under Merisant’s plan to reorganize, the company would reduce its debt from $567 million to $147 million, dropping its annual cash interest expense from $36 million to $11 million. As a result of the restructuring, Wayzata Investment Partners, a private equity firm, will become Merisant’s majority and controlling shareholder.

Merisant had previously been largely owned by Pegasus Capital Advisors, another private equity firm.

Employee Bonuses Get Approved in Lehman Brothers Bankruptcy

jbrown@castlelaw.net (News Author)12015 — Wed, 30 Dec 2009 08:00:00 EST

A bankruptcy judge has approved the plan of Lehman Brothers Holdings Inc. to pay $50 million in bonuses to employees handling derivatives contracts. The judge said the payments provide essential incentives to employees with “unique skills.”

In November, Lehman, the investment bank liquidating in bankruptcy, asked U.S. Bankruptcy Judge James Peck in New York for permission to pay the bonuses to approximately 230 full-time employees unwinding the contracts. On December 16, the judge sanctioned the payments as bankers, under attack after two years of failures and bailouts, risk more public ire by awarding year-end bonuses, according to a Bloomberg National Poll earlier in December.

In a November 25 filing, Lehman told Peck that the derivatives team had brought in more than $8 billion in cash and settled 17 percent of the contracts while under bankruptcy protection. The filing said that a bonus pool “designed to motivate and reward employees” in the group would help maximize the value of the remaining contracts.

Also during the court hearing, the judge informed Barclays Plc it could not have documents it sought from Lehman creditors and the trustee for Lehman’s brokerage, according to a spokesman for the trustee who declined to be named.

In September 2008, Lehman filed the largest U.S. bankruptcy with assets of $639 billion. Lehman’s creditors include UBS AG, the New York Giants, Abu Dhabi Investment Authority, and individual bondholders. The creditors have filed $824 billion in claims against the company.

New York Governor Takes Steps to Protect Homeowners from Foreclosure

jbrown@castlelaw.net (News Author)11996 — Tue, 29 Dec 2009 08:00:00 EST

On December 15, New York Governor David Paterson signed into law stronger foreclosure regulations for the intended purpose of protecting New Yorkers from losing their homes, such as requiring better notice to homeowners faced with foreclosure and mandating settlement hearings with banks.

The law expands a package of regulations adopted in 2008 that mostly dealt with homeowners caught in the sub-prime mortgage crisis. The new laws require that banks provide a 90-day pre-foreclosure notice on all home loans, not just sub-prime loans.

Paterson and state lawmakers say the goal is to allow homeowners additional time to work with lenders in order to prevent foreclosures. Another regulation will expand to all homeowners mandatory settlement conferences with their lender, not just borrowers with sub-prime loans.

During the first three quarters of 2009, there were 39,923 foreclosure filings in New York, a decrease of 11 percent from the same period in 2008.

In spite of the decline, however, Paterson says that the new law was necessary in order to ensure that all homeowners were protected, not just homeowners who undertook risky loans.

According to Josh Zinner, co-director of the Manhattan-based Neighborhood Economic Development Advocacy Project, New York is the first state to require settlement conferences for all pending foreclosures.

Other components of the law include:

-Requiring lenders who serve a 90-day foreclosure notice on a homeowner to file with the state Banking Department within three days, allowing the state to provide assistance to distressed homeowners.

-Establishing protections for tenants in foreclosed properties by requiring that they receive written notice of a change in ownership and be permitted to remain in their home for the remainder of their lease term or a period of 90 days, whichever is longest.

-Enhance consumer protections to prevent homeowners from falling prey to scams and prevent brokers who perform distressed property consulting services from accepting upfront fees.

Maryland Women Get Restitution in Foreclosure Rescue Scheme

jbrown@castlelaw.net (News Author)11955 — Mon, 28 Dec 2009 08:00:00 EST

As part of a settlement, two mortgage firms based out of Owings Mills, Maryland accused of running a “foreclosure rescue scheme” have agreed to pay $110,000 in cash restitution as part of a settlement that saved the homes of two elderly women in Ellicott City, Maryland, one of whom has died since becoming a victim.

In 2006, the two women fell behind on their mortgage payments due to poor health and related bills. They responded to a refinancing offer contained in packets labeled “Your Best Hope has just arrived.” However, instead of the rescue from the brink of foreclosure they were promised, the women learned that they had unwittingly signed away the titles to their homes and were facing eviction.

At that point, Howard County, Maryland consumer protection officials stepped in by filing a lawsuit against Stewart D. Sachs, president of Bay Capital Corp., which sent the letters, and Heavyweight Title Co. They also obtained a temporary restraining order preventing the eviction of 63-year-old Betty J. Bullock, who was legally blind at the time she signed the mortgage papers, and 68-year-old Griselda Mason. In October 2008, Bullock died due to a stroke.
Both women had been told they could get out of debt in two years, but were then charged rents so high they were unable to afford staying in their homes.

On December 15, county officials announced that a final settlement had been reached. The agreement restored ownership of the homes to Mason and Bullock’s granddaughter, who was living with Bullock. Sachs and Heavyweight agreed to no longer conduct any commercial lending in Howard County for a three year period and never use “unfair deceptive trade practices” again, according to officials.

Additionally, Sachs must pay $10,000 in investigation costs and restitutions and Heavyweight must pay $100,000 to the victims.

Chicago Business Bankruptcies Increase By One Third In Third Quarter

jbrown@castlelaw.net (News Author)11884 — Thu, 24 Dec 2009 08:00:00 EST

As 2009 draws to a close, many consumers and business owners are looking for the signs that the recession is over – and signs that it may continue to affect our lives, our jobs, and our finances. While housing purchases are on the rise and the foreclosure rate is dropping, others look at the number of bankruptcies around the country and wonder if we are exiting our time of crisis.

For example, as personal bankruptcies skyrocketed this year, Chicago-area business bankruptcies also continue to increase. According to the Chicago Tribune (which has faced its own recent bankruptcy issues), the number of businesses filing for bankruptcy in Chicago, Illinois, increased by 36 percent this quarter compared to the same quarter last year. The Administrative Office of the U.S. Courts reported that Northern Illinois recorded 14,529 bankruptcies in the last three months, roughly 500 business bankruptcies and 14,000 personal bankruptcies. These numbers rival the high numbers of bankruptcies filed in 2005 before the bankruptcy laws were changed.

In the last three months nationally, business bankruptcy rates have risen 33 percent. While the November 2009 numbers are down 18 percent from October 2009, they are up 12 percent in comparison to November 2008. All in all, economic experts predict that 1.4 million Americans will declare bankruptcy this year.

The high numbers of bankrupt individuals and business is being tied to high unemployment rates, a poor housing market, weak consumer confidence, and the recent difficulty in procuring credit.

Pace of Home Foreclosures Continues Decline in Missouri and Kansas

jbrown@castlelaw.net (News Author)11855 — Wed, 23 Dec 2009 08:00:00 EST

According to the latest market report from RealtyTrac, the pace of home foreclosures in Kansas and Missouri continued to decline during the month of November.

According to the report from the California-based institute, foreclosure actions in Kansas saw a decrease of 5.49 percent from October to November. The state reported a total of 878 foreclosure proceedings in November, down 0.03 percent. The report said the state ranks 37th nationwide.

The report said that Missouri reported a total of 3,217 proceedings during the month of November, which ranked the state 27th nationwide.

The report also said that the foreclosure rate in Kansas for November was a decrease of 24 percent from November 2008. In Missouri, the rate had decreased 11.5 percent from November 2008.

Across the U.S., November was the fourth straight month in which the foreclosure rate declined after hitting a record high in July, according to the report. Foreclosure filings nationwide for November decreased eight percent from October, but were still an increase from November 2008.

Illinois Foreclosures Decreasel; Missouri Isn't as Likely

jbrown@castlelaw.net (News Author)11856 — Wed, 23 Dec 2009 08:00:00 EST

According to new data from Irvine, California-based RealtyTrac, the number of St. Louis-area properties at some point in the foreclosure process increased 15 percent from October to November and increased 10 percent from November 2008.

A total of 2,040 properties, or one out of every 604 homes, were in the foreclosure process in November, according to the report, which was released on December 10.

The metro area examined by the report included the City of St. Louis and the surrounding 16 counties in Missouri and Illinois.

Foreclosure activity in Illinois saw a decrease of nearly 18 percent from a record high in October, but the 16,422 properties in foreclosure in November was an increase of nearly 108 percent from November 2008 and the third-highest nationwide.

In Missouri, foreclosure filings held steady at 3,217 in November in comparison to October, but that was still an increase of 11.5 percent from November 2008.

Across the U.S., foreclosure filings were reported on 306,627 properties during November, which was a decrease of nearly eight percent from October. However, that number was still an increase of 18 percent from November 2008.

According to RealtyTrac chief executive James Saccacio, November was the fourth consecutive month in which U.S. foreclosure activity declined after reaching an all-time high in July.

Attorney General Chris Koster Holds Florida Company Responsible in Mortgage Scam

jbrown@castlelaw.net (News Author)11857 — Wed, 23 Dec 2009 08:00:00 EST

According to Missouri Attorney General Chris Koster, he is filing suit against a Florida company that took money from distressed Missouri homeowners, but failed to provide and meaningful mortgage-modification service. Koster is joined by the Federal Trade Commission and the State of Iowa.

Since Koster began his campaign against mortgage fraud in April, this is the eighth lawsuit he has filed against a fraudulent mortgage business.

Koster said his office has “instituted a zero tolerance policy for any mortgage modification firm that preys on and cheats desperate homeowners.”

According to Koster, First Universal Lending, LLC, is based out of Palm Beach Gardens, Florida, but transacts business throughout Missouri. He says that the company markets itself as providing services for homeowners who are struggling to pay their mortgages or are faced with foreclosure and promising them lower house payments or interest rates. However, he said they appear to do little or nothing for the majority of its customers.

Additionally, he says, representatives from the company have told some clients to stop making payments on their mortgages while the modifications process was proceeding, which harms the customers’ credit rating and results in higher late fees, penalties, and interest payments and increases the likelihood of foreclosure.

Koster says that the business requires an up-front fee before providing services, which is illegal for mortgage modification companies according to Missouri law.

Missouri's TLC Vision Corp. Seeks Bankruptcy Protection

jbrown@castlelaw.net (News Author)11862 — Wed, 23 Dec 2009 08:00:00 EST

One of Tiger Woods’ sponsors, TLC Vision Corp., has filed for reorganization bankruptcy – a move which will allow lenders to own the company and take current shareholders out of the picture. The company, which has continued to support Tiger Woods, is an eye surgery outfit that is based out of Chesterfield, Missouri.

The company, who has dealt with financial difficulties for over a year, is seeking approval of $15 million in debtor-in-possession financing and permission to pay employee wages, employee benefits, and key vendors. The company will also pay certain secured and unsecured creditors. The company’s Chapter 11 bankrupty filing announced between $100 and $500 million in assets and between $100 and $500 million in debts.

A company spokesperson said that despite the bankruptcy reorganization and other issues, their organization’s relationship with Tiger Woods had not changed. The company has continued to operate during the bankruptcy proceedings – care for patients will continue and employees would not see changes.

"We expect to emerge swiftly from Chapter 11 with a stronger balance sheet and able to better capitalize on our industry leadership position," Chief Operating Officer of TLC Vision Jim Tiffany told the media.

Since laser surgery vision correction is not normally covered by health insurance, laser vision companies have seen record losses during the recent recession. TLC Vision share trades have been very low over the last week, with shares hovering between 4 and 15 cents.

How Could The Medical Bankruptcy Fairness Act Help?

jbrown@castlelaw.net (News Author)11813 — Mon, 21 Dec 2009 08:00:00 EST

Currently, the Medical Bankruptcy Fairness Act is an amendment to the health care bill and could soon be a stand-alone bill. But what would this act mean for those facing financial difficulty due to medical bills, and what would this act mean for taxpayers?

The Medical Bankruptcy Fairness Act would make it somewhat easier for families facing bankruptcy because of a medical emergency to go through the bankruptcy process and return to their lives. The act has come into the spotlight after a recent study that appeared in The American Journal of Medicine revealed that 62 percent of bankruptcies involve medical bills and that even families with thorough health care coverage can go bankruptcy during a medical emergency because of copays, premiums, deductibles, lost wages, and other related reasons.

Under the new act, those declaring bankruptcy because of a medical emergency would not have to attend the same mandatory credit counseling sessions that others must pay for – since the sessions are meant for those who do not have a satisfactory understanding of finances, they are not geared for and are sometime insensitive toward those who have declared bankruptcy because of a sick loved one. The act would also make the process easier, give the filers greater flexibility and give filers a better chance of keeping their home.

In theory, the new act would not cost the taxpayers anything – it would simply create a slightly different bankruptcy process for those who have survived medical emergencies, but who have not survived financially intact.

Arcade Building Downtown St. Louis Faces Foreclosure

jbrown@castlelaw.net (News Author)11713 — Wed, 16 Dec 2009 08:00:00 EST

According to media reports, a foreclosure sale for the Arcade building in downtown St. Louis has been scheduled for December 31.

Deputy Mayor for Development Barbara Geisman called the planned sale “a step toward getting the property back into circulation and get it redeveloped.”

A plan by Pyramid Cos. to convert the 15-story building into condominiums fell apart when the development company led by John Steffen shut down in April 2008. Pyramid, through an affiliate called Arcade Owner Inc., is still the owner of the building, one of several commercial properties Pyramid owns that have yet to be transferred to successor owners.

The Arcade project’s lender was Bank of America.

St. Louis’ Land Clearance for Redevelopment Authority approved a resolution in October that approved a resolution to declare the historic building blighted and to authorize 10-year tax abatement and the search for a redeveloper for the half-million-square-foot building.

At one time, the Arcade housed dozens of jewelers and other retailers, but has been shuttered for several years. Many of the windows on the building are either boarded up or covered in tattered plastic.

Foreclosure is Next for Family After Their "Extreme Makeover"

jbrown@castlelaw.net (News Author)11714 — Wed, 16 Dec 2009 08:00:00 EST

The team from the popular ABC reality series “Extreme Makeover: Home Edition” might provide worthy families with a new home, but yet another family who appeared on the show has learned that they don’t guarantee you’ll keep that new home forever.

Five years ago, the Wofford family of Encinitas, California received their new home. However, they now say that after struggling to pay their bills for two years, they’re now faced with foreclosure. Dr. Brian Wofford, a widower and father of eight, said that many people believe that you get the mortgage when you get the house, but that isn’t the case.

The Woffords are not the first family to appear on the show that has faced serious financial troubles after their home makeover. Last year, the Harper family of Atlanta, who received the biggest house to date on the show, along with the money to pay taxes on it for 25 years, faced foreclosure after taking out an ill-advised $450,000 loan using the house as equity. At least four other families featured on the show have either had to sell or lose the homes they received. ABC may be considering changing the rules to the show in order to prevent future disasters.

There is still hope for the Wofford family. Their bank, OneWest, has promised them loan modification papers. But if they don’t go through, the bank will auction off the house.

Shakira Claims Bankruptcy As Part of Her Success

jbrown@castlelaw.net (News Author)11715 — Wed, 16 Dec 2009 08:00:00 EST

Colombian pop star Shakira, whose hit single “Hips Don’t Lie” is the most played record in American radio history, says she became a musical sensation and global philanthropist due to her family filing for bankruptcy when she was 8-years-old.

At the age of 18, Shakira founded the Barefoot Foundation, a charity to aid poor children in her native Colombia receive an education. She later expanded her reach to become a UNICEF goodwill ambassador.

And all of that began when she had the rug pulled out from under her as a child in Barranquilla, Colombia.

In a recent interview with CNN, Shakira said she vividly recalled the day “which I entered our apartment and my dad had sold all the furniture we had and the air-conditioning. We lost both our cars.” She said she was “very upset.”

“I couldn't believe my eyes, I couldn't believe how my parents allowed such a failure in business,” she said.

Shakira said because she was struggling to embrace the bankruptcy, her parents took her to the park, where she saw “many kids who were orphans and barefoot and sniffing glue.” She said her parents wanted “to show me another reality that was much worse than mine to make me gain perspective on things.”

The Grammy Award-winning singer said that it was that visit to the park that changed her life. She said she made herself a promise that day to “someday succeed to vindicate my parents’ social and economic position.” But she said she also wanted to do something about children like the ones she saw that day.

Shakira, who is a singer-songwriter, musician, producer, dancer, and philanthropist, described herself as being “obsessed” with child education and its contribution to national and global security.

Shakira, who has sold more than 50 million albums worldwide, said that she believes education “not only boosts economic growth, but also guarantees national and global security.

She described education as being “without a doubt” the best strategy for fighting poverty.

Home Foreclosures Decrease for Missouri and Kansas Overall

jbrown@castlelaw.net (News Author)11716 — Wed, 16 Dec 2009 08:00:00 EST

According to the latest market report from RealtyTrac, the pace of home foreclosures in Kansas and Missouri continued to decline during the month of November.

The report said that Missouri reported a total of 3,217 proceedings during the month of November, which ranked the state 27th nationwide.

The report also said that the foreclosure rate in Kansas for November was a decrease of 24 percent from November 2008. In Missouri, the rate had decreased 11.5 percent from November 2008.

Popstar Shakira Learned Life Lesson From Family Bankruptcy

jbrown@castlelaw.net (News Author)11726 — Wed, 16 Dec 2009 08:00:00 EST

Though she is a millionaire world music entertainer now, Shakira grew up surrounded with poverty and in a home where her parents decided to declare bankruptcy. Now Shakira looks back on the bankruptcy with thankfulness.

Though many know Shakira for her top-of-the-chart hit songs and clear voice, the Columbian pop sensation is also known for her philanthropy. Just months after she became a world-famous performer and singer, Shakira began the Barefoot Foundation, which works to educate impoverished Columbian children receive an education. Currently, she also works as a UNICEF goodwill ambassador.

However, the musical artist was not always in the position to help. When she was eight years old, her parents declared bankruptcy and sold most of what they had in order to clear their debts, including the furniture and air conditioning. When Shakira became visibly upset, her parents took her to a public park, where real poverty existed – children without food, families, appropriate clothing, or roofs over their heads. It was then that she understood that although her family was struggling, they were not at rock bottom.

Today, Shakira’s lesson about bankruptcy and poverty has turned her into an adult concerned with education and schooling for all children. She believes that education does not only help communities but also decreases gang violence and increases equality between the sexes. Shakira herself is perusing her dream of a college education at the University of Southern California.

Business Bankruptcies In St. Louis Soar In Third Quarter Of 2009

jbrown@castlelaw.net (News Author)11702 — Tue, 15 Dec 2009 08:00:00 EST

According to the St. Louis Business Journal, the end of the recession has not meant the end of business bankruptcies in Missouri or St. Louis. Just as the rate of personal bankruptcies in Missouri rose in the third quarter and for the year, local businesses are following the same trend.

Hoffman Clark, a Clayton, Missouri, accounting firm has released a new report on the number of St. Louis business bankruptcies – a report that says in the last year 378 St. Louis, Missouri, businesses declared bankruptcy. This is an increase of 19 percent over the number of bankruptcies recorded in 2008. It is an increase of 250 percent from the number of business bankruptcies in 2007, before the recent economic recession began.

Petitions for bankruptcies by businesses reached 104 in the third quarter. This is an increase of 16 percent over the number of bankruptcies filed in St. Louis by businesses in the same quarter of 2008. In comparison to the same quarter of 2007, bankruptcy filings for St. Louis businesses were two and a half times higher. The report does note, however, that the number of business bankruptcies declined in the third quarter in comparison to the second quarter of 2009 – a trend that may mark the end of the worst of the recession.

The data used in the report was taken from the U.S. Bankruptcy Court for the Eastern District of Missouri, which mostly covered St. Louis and the surrounding area.

Credit Card Delinquencies Decrease According to TransUnion

jbrown@castlelaw.net (News Author)11657 — Wed, 09 Dec 2009 08:00:00 EST

According to an analysis by TransUnion, one of the three U.S. credit bureaus, credit card delinquencies in the third quarter saw a decrease of six percent in comparison to the previous quarter.

The highest rates of delinquency were seen in Nevada (1.98 percent), Florida (1.47 percent), and Arizona (1.35 percent). Those three states are also among the four states with the highest rates of foreclosure. Adding in California, the four states had 43 percent of all foreclosures started in the third quarter, according to the Mortgage Bankers Association.

TransUnion said that the credit card delinquency rate, borrowers 90 days or more delinquent on one or more of their bank-issued credit cards, across the U.S. saw a decrease to 1.10 percent in the third quarter of 2009, which was a decrease of 5.98 percent from the previous quarter. In the year-to-year comparison, however, credit card delinquencies remained flat from 1.09 percent in the third quarter of 2008.

Average credit card borrower debt, the total owed on all bank-issued credit cards for an individual, slightly decreased across the U.S. 1.87 percent to $5,612 from $5,719 in the previous quarter and decreased 1.71 percent from $5,710 in the third quarter of 2008.

Florida Has Highest Rate of Foreclosure

jbrown@castlelaw.net (News Author)11658 — Wed, 09 Dec 2009 08:00:00 EST

Being in first place isn’t always a good thing. For example, Florida currently holds the distinction of being the state with the highest rate of foreclosures in the U.S.

According to a report in The Palm Beach Post, nearly one out of every five home loans in the state was delinquent in payments by 90 days or more, or was somewhere in the process of foreclosure during the most recent quarter.

Florida has nearly 3.5 million outstanding loans across the state and more than 13 percent of those are in trouble. This type of economic behavior does not bode well for a recovery. It also indicates that another large group of foreclosed homes is soon to crash into the real estate market with a resounding thud.

This somewhat alarming statistic is not helped by another problem: Florida’s 11.2 percent unemployment rate. Experts are not expecting employment to alleviate before the second quarter of 2010, by which time projections show the rate having risen to 11.4 percent.

Florida’s foreclosure numbers may seem high, but according to the Mortgage Banker’s Association, nearly one out of every seven loans in the U.S. is in foreclosure, an increase from one out of every 10 at the beginning of 2009.

Nevada, California, and Arizona closely follow Florida in foreclosure rate. Combine, the states are responsible for 43 percent of the new crop of foreclosures due to hit the market.

Borders May Face Bankruptcy

jbrown@castlelaw.net (News Author)11659 — Wed, 09 Dec 2009 08:00:00 EST

In the wake of British chain WHSmith backing out of a deal with Borders, the U.S. megastore bookseller is desperately seeking to fight off bankruptcy and Chapter 7 liquidation.

Some don’t believe WHSmith being involved in the bidding made sense to begin with, as Borders is a bookseller and WHSmith is more of a news agency.

The situation with Borders could be seen as similar to Linens ‘N’ Things, another potentially viable company that was sunk by leverage in an overpriced equity deal. They ran into funding problems right as the credit crunch struck. Starved for capital, they were liquidated.

According to a report in The Telegraph, Borders is believed to be holding discussions with groups including HMV as the threat of collapse draws nearer.

In July, Channel 4 chairman Luke Johnson’s Risk Capital Partners purchased Borders in a management buyout backed by private equity firm Valco.

But competition from supermarkets and the continued growth of online retailers as the recession continues reducing consumer spending has hit Borders. The company also has suffered from the tightening in the credit insurance market, which has made it difficult to obtain stock from suppliers.

The company’s management is now uncertain that it does not have enough cash to trade successfully during the busy Christmas period.

Good News on Foreclosures in Missouri and Kansas

jbrown@castlelaw.net (News Author)11581 — Thu, 03 Dec 2009 08:00:00 EST

There is some encouraging news on the rate of home foreclosures in Missouri in Kansas. Financially troubled homeowners are not out of the woods yet, but the worst may be over.

According to a report from RealtyTrac, in October Kansas reported a 27 percent decrease in home foreclosures in comparison to September. Though the number is up from the rate in October 2008. With a total of 1,313 foreclosure actions, Kansas ranks 37th overall for October.

In Missouri, home foreclosures saw an increase of 2.03 percent from September to October. However, the number was a decrease of 12.36 percent from October 2008, Irvine, California-based real estate firm RealtyTrac said. With a total of 3,218 foreclosure actions, Missouri ranks 30th overall.

Foreclosures across the U.S. saw a decrease for the third consecutive month in October, another sign that the worst of the housing crisis could be over.

Attempted Block on Charter's Emergence From Bankruptcy

jbrown@castlelaw.net (News Author)11582 — Thu, 03 Dec 2009 08:00:00 EST

Lenders, stockholders, and bondholders are attempting to block St. Louis-based Charter Communications Inc.’s emergence from Chapter 11 bankruptcy while they appeal a judge’s approval of the cable company’s reorganization plan.

On November 20, a group of lenders led by JPMorgan Chase & Co., stockholder R2 Investment LDC, and Law Debenture Trust Co. of New York, a trustee for holders of $479 million in bonds, filed motions with the U.S. Bankruptcy Court in the Southern District of New York asking that Judge James Peck hold off on his order approving the bankruptcy plan while they appeal.

The lenders say the confirmation order “compels financial institutions to lend a post-bankruptcy reorganized company $8.4 billion, on pre-bankruptcy terms, over the lenders’ objection.”

Charter and Chief Executive Neil Smit said they anticipated objectors filing an appeal to the confirmation. However, they expect the plan will take effect even if an appeal is still pending.

Attorneys for Charter said that any delays in the company’s emergence from bankruptcy could result in the loss of “hundreds of millions of dollars of additional interest,” and place the entire plan in danger.

According to Charter, it has paid more than $37.9 million per month of default and incremental interest and more than $129 million in legal and adviser fees during the bankruptcy process.

More Renters Left With Foreclosed Properties

jbrown@castlelaw.net (News Author)11583 — Thu, 03 Dec 2009 08:00:00 EST

A new wave of foreclosures could harm people who may have never even taken out a mortgage: renters. In cities like New York, Chicago, and Los Angeles, where many investors are carrying upside-down mortgages on large rental buildings, some tenants are seeing their homes fall apart along with the financing.

In the first three quarters of 2009, 475 foreclosure proceedings were begun against multifamily rental or cooperative homes in Washington D.C., according to NeighborhoodInfo DC, a partnership between the Urban Institute and the D.C. Local Initiatives Support Corp. That figure already eclipses the 458 foreclosures for all of 2008.

In Cook County in Illinois, 328 multifamily rental buildings were in foreclosure by the second quarter of 2009, in comparison to 185 in 2008, according to a study by the Institute for Housing Studies at DePaul University, which has not yet been released.

In Los Angeles, foreclosures for buildings with five or more units totaled 78, encompassing 1,344 units, within the first three quarters of the year, in comparison to 49 buildings and 432 units last year during the same time period and 13 buildings and 239 units in 2007.

New York housing analysts estimate the number of apartment units in the city that are at risk of default due to upside-down loans (property is worth less than is owed on the loan) to be between 50,000 and 100,000.

During the first nine months of 2009, Fannie Mae foreclosed upon 74 multifamily properties, in comparison to 25 during the same period in 2008.

The pattern has also showed up in smaller cities such as Lexington, North Carolina and Des Moines, Iowa.

The impact upon tenants is uneven. According to officials in New York City, the owners of the vast majority of buildings in foreclosure are likely to maintain decent standards of living. However, of the 200 properties on the city housing agency’s 2008 list of buildings with the most severe maintenance problems, at least 77 had been in foreclosure.

In buildings with a struggling landlord, maintenance will typically be the first thing to go. Garbage can pile up, lists of overdue repairs lengthen, and vermin multiply.

Case on Loan Modifications May Appeal Ruling

jbrown@castlelaw.net (News Author)11510 — Mon, 30 Nov 2009 08:00:00 EST

In Minneapolis, Minnesota, a federal judge has dismissed a lawsuit filed by a group of Twin Cities homeowners claiming that charged loan service companies are improperly implementing the federal government’s loan modification program.

The suit, which a public interest group in St. Paul, Minnesota filed this summer, also asked that U.S. District Judge Ann Montgomery issue an injunction preventing bank foreclosures in Minnesota from going forward. In an order issued on November 9, Montgomery said the request had been denied.

Mark Ireland, the attorney who brought the suit by the Foreclosure Relief Law Project, said that the group was reviewing the decision in order to determine if it would file an appeal.

The suit targeted the federal Home Affordable Modification Program, which the Obama administration introduced in the spring in an effort to fight the high number of bank foreclosures in the U.S.

In a separate release on November 10, the Treasury Department released the latest performance numbers on the program, which provides loan servicers with incentives to modify loan terms for struggling borrowers.

According to the Treasury Department, the cumulative number of trial modifications provided through the program stood at 650,994 at the end of October, an increase of nearly 34 percent from the 487,081 trial modifications that had been initiated as of September 30.

Medical Bankruptcy Rate Increases – Even For Those With Health Insurance

jbrown@castlelaw.net (News Author)11520 — Mon, 30 Nov 2009 08:00:00 EST

In November, we are focusing on the common causes of bankruptcy filings. Unlike many may assume, the vast majority of bankruptcies are not due to overspending, but rather due to an unexpected life emergency or life event. While bankruptcy experts knew that medical emergencies were a common reason that families go bankrupt, a new study from Harvard University has revealed that even more people than previously thought file bankruptcy because of medical bills. Even more shockingly, many of these families in medical emergencies have some form of health insurance coverage.

In Kansas City, Missouri, Tonni Brende of Independence and her family looked torward bankruptcy after a string of medical problems. A son with cerebral palsy and a Hepetitis C diagnosis for Brende broke the family’s bank even though they had Medicaid and other health insurance coverage.

Another person, Jim Trinidad of Liberty, Missouri, cares for his 29-year-old son, who has been in a vegetative state since a car accident 12 years ago. While Medicaid covers some costs, Jim has to turn down work and spend much of his day caring for his son’s medical needs – needs he will have for the rest of his life.

Both Missouri families turned to bankruptcy after facing medical bills and other related financial challenges that they were simply not a match for. They are just two examples of MO people who were responsible with their money – but unprepared for the unexpected medical tragedies that affected every aspect of their lives.

Missouri Bankruptcy Filings Continue to Soar – 23% This Federal Fiscal Year

jbrown@castlelaw.net (News Author)11521 — Mon, 30 Nov 2009 08:00:00 EST

Just as economists and bankruptcy experts predicted, bankruptcy rates are up again this year in the state of Missouri, with more than five out of every 1000 people across the state filing for bankruptcy during the 2009 federal fiscal year. This number is a 23 percent increase from the 2008 filings. The federal fiscal year ended on September 30 and the bankruptcy statistics were released last Wednesday by government officials.

Both personal bankruptcy filings and business bankruptcy filings increased this year – an increase that is blamed on the continuing high unemployment rates, the struggling housing market, and the economy as a whole. Bankruptcy rates in Missouri have not been this high since the bankruptcy reform laws took effect in 2005.

In fiscal year 2009, 30,025 people across Missouri filed for bankruptcy in the state’s federal court districts. Last year, 24,216 people petitioned for bankruptcy in Missouri.

Nationally, the number of bankruptcy filings was up 33 percent – with 1.4 million people declaring bankruptcy across America. Last year, just over 1.1 million people petitioned for bankruptcy. Business bankruptcies jumped 32 percent this year, with 45,510 companies filing so far in 2009.

Chapter 7 bankruptcies rose a shocking 42 percent, with 265,721 individuals filing in the third fiscal quarter. Chapter 13 bankruptcies, also known as reorganization bankruptcies, rose 15 percent, with 107,142 individuals filing in the third fiscal quarter. Nevada led the country in most bankruptcies per capital.

National Foreclosure Rate to Rise Through 2010 Experts Say

jbrown@castlelaw.net (News Author)11525 — Mon, 30 Nov 2009 08:00:00 EST

Many economists and organizations are saying that the recession is over – but does that mean that the rate of foreclosures and other housing woes will soon disappear? The Mortgage Bankers Association says that the answer is no. In all likelihood, foreclosure rates will rise, not drop, throughout 2010 even as other aspects of the economy are expected to improve. Currently, one in seven homes in America are either overdue or delinquent when it comes to their mortgage – the highest levels since 1972.

What are some of the reasons for this continued foreclosure plague? There are a number of factors:

•    The struggling housing market. Although the first time homebuyers tax credit and other incentives have helped the housing market, home prices are still down in many areas and one in four homeowners are upside-down on their mortgage.
•    Some adjustable rate mortgages (ARMs) have yet to adjust. A large number of the foreclosures that have already taken place came about because of ARMs that adjusted to rates far beyond what the homeowner could ever pay. Even more ARMs are set to adjust in the next year – which will prove to be bad news for a significant number of homeowners.
•    Unemployment is still high. As Americans continue to struggle to find work, deal with pay cuts, or lose their jobs, mortgages that were once easy to pay are now impossible. With job prospects projected to remain weak in 2010, it is likely that many out-of-work families will face issues with foreclosure.
•    Too many houses on the market. Because of the foreclosures and short sales already flooding the market, and because of a hesitant group of homebuyers, housing prices have fallen across almost all markets, lessening the value of most homes.

Herbst's Post-Bankruptcy Layoffs

jbrown@castlelaw.net (News Author)11460 — Wed, 25 Nov 2009 08:00:00 EST

On November 9, bankrupt gaming giant Herbst Gaming confirmed that it had laid off workers throughout the company. The announced layoffs come less than two weeks after a bankruptcy court judge in Reno, Nevada approved a plan that will hand the company over to its secured lenders sometime in 2010.

According to Herbst general counsel Sean Higgins, the layoffs accounted for less than five percent of the company’s workforce.

Upon its filing for Chapter 11 bankruptcy in March, Herbst reported that it employed approximately 5,400 workers, which was down from total of 6,450 employees the company reported to the Securities and Exchange Commission on December 31.

The company’s current employee numbers were not available.

On October 31, U.S. Bankruptcy Judge Gregg Zive approve a plan to hand the 15 casinos and 600-location, 6,400-machine Nevada slot route to a group of lenders that holds $876.5 million in debt.

Twelve of the casinos the company owns are in Nevada, two of them are located in Missouri, and one is in Iowa. The company also owns the 275-room Terrible’s hotel and casino in Las Vegas.

The company also owns three casinos in Primm, Nevada – Whiskey Pete’s, Buffalo Bills, and Primm Valley Resort – which it acquired in 2007 from MGM Mirage.

Under the company’s reorganization plan, the lenders will receive 100 percent of the company’s casinos and slot routes. The new company will issue $350 million in new senior secured bank loans as part of the reorganization.

The reorganization will wipe out the equities of Timothy P. Herbst, Edward J. Herbst, and Troy D. Herbst. The brothers remain directors of the company, with Troy Herbst as chief executive officer.

United Commercial Bank Shut Down by FDIC

jbrown@castlelaw.net (News Author)11412 — Mon, 23 Nov 2009 08:00:00 EST

In addition to the $3.2 billion the federal government lost earlier in November due to CIT filing for bankruptcy, another $1.7 billion is lost because of United Commercial Bank’s collapse.

San Francisco-based United Commercial Bank is the first financial institution that received TARP bailout money to be shut down by the Federal Deposit Insurance Corporation (FDIC). The so-called “healthy bank” received TARP funds of $299 million and its failure will result in a $1.4 billion loss for the FDIC.

Also on November 6, the FDIC seized institutions in Georgia, Michigan, Minnesota, and Missouri, bringing the total in 2009 to 120 and still rising. The total represents the most failures since 1992, when 181 banks were shut down by the FDIC.

Fannie Mae Gives People in Foreclosure Chance at Leasing

jbrown@castlelaw.net (News Author)11413 — Mon, 23 Nov 2009 08:00:00 EST

On November 5, mortgage giant Fannie Mae announced a plan to allow people losing their homes to foreclosure to lease those properties back for up to a year at market rental rates.

The move is the latest in a series of steps by lenders attempting to manage inventories of foreclosed homes on their books in an attempt to keep a wave of properties from slamming a housing market that has shown recent signs of recovery.

The announcement came alongside a report that Fannie Mae suffered a third quarter net loss of $18.9 billion, in comparison to a second quarter $14.8 billion loss and a loss of $29.4 billion in the third quarter of 2008.

The most recent loss pushed the mortgage giant’s government regulator to request $15 billion from the Treasury Department on November 5. It was the fourth time the company had drawn on its federal financial lifeline since it and sister firm Freddie Mac were seized and placed under government stewardship.

According to analysts, Fannie Mae’s Deed for Lease Program would add to other efforts the federal government is making to aid the housing market by reducing the supply of cheap foreclosures on the market.

According to Fannie Mae vice president of equity investments Jay Ryan, the program would help stabilize neighborhoods. According to the firm, only borrowers who had exhausted other options, such as loan modification, would qualify for the program.

The program would also allow Fannie Mae to produce some income from the properties, many of which are underwater, while waiting for home prices to recover.

The company did not have estimates as to how many homeowners would qualify. In order to participate, borrowers must agree to convey all interest in a property to the lender. According to a November 5 filing with the Securities and Exchange Commission, the company recorded a total of 1,996 people agreeing to such a transaction within the first nine months of 2009.

The program requires that the home be a borrower’s primary place of residence. A borrower-turned-tenant would be required to document that the new market rental rate is no more than 31 percent of his or her gross income and be released from any subordinate liens on the property.

Former Nebraska Football Star Goes Through Bankruptcy After Business Venture

jbrown@castlelaw.net (News Author)11341 — Thu, 19 Nov 2009 08:00:00 EST

Former Nebraska Cornhusker star Aaron Taylor may have seen a great deal of success on the field, but the failure of his Cornhusker-themed restaurant in Omaha and his subsequent bankruptcy are hitting him hard.

While at Nebraska, Taylor was a part of three national championship teams, was an all-American at center and guard, and won the Outland Trophy as the nation’s best interior lineman in 1997.

On (Saturday before story), it only took approximately 30 minutes to lose possession of some of the tangible evidence of his accomplishments.

A court-ordered auction saw the sale of Taylor’s Outland Trophy and seven championship rings. The Associated Press reported that the trophy was sold for a total of $6,800 and the diamond-encrusted rings sold for $2,000 to $5,900. In total, the auction brought in $28,500.

According to Philip Kelly, the bankruptcy trustee in the case, the identities of online bidders were not immediately available, but it did not appear that Taylor had submitted any of the winning bids. Some Nebraska fans upset with the situation donated money in an attempt to aid Taylor in purchasing some of his items.

Taylor attempted to exclude the memorabilia from bankruptcy liquidation, but his attorney informed him that under Chapter 7 bankruptcy law, the championship rings and trophy could not be excluded. Taylor’s case did not qualify for another type of bankruptcy that could have allowed him to keep the items.

In Taylor’s initial bankruptcy filing during the summer of 2008, he noted that he owed at least $109,543 and listed assets worth $5,300. That sum did not include the value of the rings and Outland Trophy.

Pork Producer Goes Bankrupt; Some Blame on Swine Flu

jbrown@castlelaw.net (News Author)11342 — Thu, 19 Nov 2009 08:00:00 EST

A major pork producer in North Carolina recently filed for bankruptcy, citing complaints from unpaid vendors and declining consumption of pork due to fears over swine flu as reasons.

According to a report in Raleigh, N.C.’s News & Observer, Coharie Farms of Clinton, N.C., with a court appearance scheduled for November 10. According to Coharie owner Anne Faircloth, she plans upon liquidating the company and some of the 170 employees will be laid off.

Earlier in November, as many as 30 farmers complained of not being paid by Coharie for grain deliveries. Coharie’s debts to various vendors exceed $3 million.

The company blamed its losses on an increase in grain prices in 2008, a $20 decrease in hog prices, and unwarranted fears of swine flu driving down pork consumption. In 2009, Coharie has lost $17 million.

North Carolina’s pork industry is the second largest in the U.S.

October Bankruptcy Rates Continue To Soar

jbrown@castlelaw.net (News Author)11355 — Thu, 19 Nov 2009 08:00:00 EST

While many economists claim that the most significant recession in recent history is officially at an end, the rate of bankruptcy filings across the United States is still skyrocketing. In addition, some are predicting even higher number next month and on into 2010.

Why are the bankruptcy numbers still going up, for both consumers and companies? Bankruptcy experts point to continued high rates of unemployment as well as the continued weak housing market that has left many families with upside-down mortgages. Many are still just one or two paychecks away from losing their house, keeping food on the table, and keeping their bills paid – while others are struggling with adjustable rate mortgages, medical emergencies without healthcare coverage, or other financial issues. The American Bankruptcy Institute predicts that 1.4 million people in America will file for Chapter 7 or Chapter 13 bankruptcy by the end of the year.

According to data collected by Jupiter ESources LLC, the October 2009 bankruptcy rates were higher than they have been since 2005, when bankruptcy laws were made stricter. In comparison to October 2008, 25 percent more people filed for bankruptcy, for a total of 131,200 bankruptcy petitions in just one month. Since the beginning of the year, 1.2 million people filed for bankruptcy – more than all of the 1.1 million bankruptcy filings in 2008.

Bankruptcy lawyers believe that while the economy on the whole is indeed recovering, certain sectors, such as real estate and finance, are still suffering – and that those involved in hurting industries are still struggling to keep their houses and their financial security.

St. Louis Woman Charged With Concealing Assets In Chapter 7 Bankruptcy

jbrown@castlelaw.net (News Author)11309 — Tue, 17 Nov 2009 08:00:00 EST

This week we covered an important topic that all people considering bankruptcy should know about: What Happens When You Don’t List Everything in Your Bankruptcy? The answer, as you might guess, is that you can be charged with bankruptcy fraud and may face severe consequences including prison time.

Just last month, the American Chronicle reported on the bankruptcy fraud case of 45-year-old Julie Lynn Wagman, a St. Louis, Missouri, woman who filed for Chapter 7 Bankruptcy in August of 2005. When listing her assets as part of her bankruptcy petition, the MO woman tried to hide several assets from the courts, totaling over $50,000. According to United States District Judge Catherine D. Perry, the woman failed to list several expensive pieces of jewelry, including a Rolex watch, a tennis bracelet, and her wedding ring. While she did not list her expensive items, she did list several items under $300.

During her divorce proceedings two years later, the property was discovered and Wagman admitted that she had purposefully omitted her expensive items during the bankruptcy proceedings. She later pleaded guilty to making false statements during a bankruptcy proceeding. She has been ordered to serve five months in prison and five months of house arrest. In addition, she must pay $54,400 in restitution for her bankruptcy fraud.

The lesson here is simple: as with all things, honesty is the best policy – and in a bankruptcy procedure, anything less than honesty could end in prison.

Foreclosure Filings Up in Missouri in the Third Quarter

jbrown@castlelaw.net (News Author)11288 — Mon, 16 Nov 2009 08:00:00 EST

According to a report released on (Thursday before story) by Irvine, California-based RealtyTrac, the number of home foreclosure filings in Missouri saw an increase of 8.3 percent in the third quarter, as the recession bested efforts to aid struggling borrowers with holding on to their homes.

The report showed that during the July-September period, 7,892 foreclosure filings took place in Missouri. The number is a decrease of 11.2 percent from the third quarter in 2008, but RealtyTrac noted that some of the records had stopped being collected in January.

Filings include default notices, auction-sale notices and bank repossessions.

One out of every 335 Missouri housing units was foreclosed upon during the third quarter. That rate is considerably lower than the national average of one out of every 136 households, ranking the state 30th nationally.

RealtyTrac said that in September alone, foreclosure filings in the state saw an increase of 26.3 percent from August, putting the number at 3,154. That was also 8.8 percent higher than the September 2008 total.

Across the U.S., the number of September filings decreased four percent from August, but was still the third-highest month since RealtyTrac’s report began in 2005.

CIT Group May File for Prepackaged Bankruptcy

jbrown@castlelaw.net (News Author)11263 — Fri, 13 Nov 2009 08:00:00 EST

CIT Group Inc., the 101-year-ld commercial lender attempting to avoid collapse, could soon file for a prepackaged bankruptcy after reaching agreements with billionaire Carl Icahn and Goldman Sachs Group Inc.

Under the agreement, Icahn will supply a $1 billion loan for “supplemental liquidity” that could be used as bankruptcy financing, according to the New York-based company. Goldman Sachs will keep a credit line open, should the lender file for court protection.

The accords were disclosed one day after a deadline passed for CIT to solicit votes in support of either a $30 billion out-of-court debt exchange or a prepackaged bankruptcy. CIT seeks to reduce its debt by at least $5.7 billion after being locked out of credit markets it relies on for funding and posting nine quarters of losses totaling more than $5 billion.

The prepackaged plan would give CIT bondholders 70 cents on the dollar in the form of new notes and equity in the reorganized company. If CIT is forced into a “free-fall” bankruptcy, unsecured claims could fetch as little as six cents on the dollar, according to CIT chief executive officer Jeffrey Peek.

On October 28, CIT said that it had arranged a $4.5 billion term loan that can be used in bankruptcy.

If the prepackaged plan receives approval, the company plans upon filing for bankruptcy before $800 million of bonds mature, according to people familiar with the situation who declined to be identified.

Missouri Forgives Debts for Students at Bankrupt Helicopter School

jbrown@castlelaw.net (News Author)11264 — Fri, 13 Nov 2009 08:00:00 EST

Under the terms of a settlement between Student Loan Xpress, Missouri, and 11 other states, the company will forgive nearly $113 million in debt for students who obtained loans to attend a now-bankrupt helicopter training school.

According to an October (Tuesday before story) statement from Missouri Attorney General Chris Koster, the state’s victims will be entitled to more than $2.9 million in student loan forgiveness.

Las Vegas-based Silver State Helicopters began operation in 2002 as a training school to train small helicopter pilots. The company ultimately operated 34 flight schools across the U.S.

For a period of at least two years, Student Loan Xpress was the preferred student lender for Silver State, providing an approximately total of $172 million to more than 2,800 students across the U.S., according to Koster’s office.

Koster’s office said that records revealed that only a small percentage of students actually graduated from the school and the school had an exceptionally high drop-out rate.

Silver State had ceased operations and filed for bankruptcy by 2008, leaving students up in the air.

Koster’s office received a total of 53 complaints about the school going into bankruptcy and the student loans still owed.

St. Charles Homebuilder Files for Bankruptcy

jbrown@castlelaw.net (News Author)11265 — Fri, 13 Nov 2009 08:00:00 EST

St. Charles, Missouri-based homebuilder Whittaker Builders has filed for bankruptcy protection. On October 15, the company, led by President Greg Whittaker, filed for Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Missouri.

In 2008, Whittaker was the fifth-largest homebuilder in the St. Louis metro area. However, the struggling real estate market did a great deal of damage to the company.

Whittaker’s revenue was $93.3 million in 2006, but decreased to $82.7 million in 2007 and $29.2 million in 2008. Nearly half of the company’s workforce was laid off, reducing the number of employees from 288 in 2007 to 150 in 2008.

According to the company’s Web site, Whittaker cites changes in the credit market as a driving force in the company’s decision to reorganize.

Whittaker said that he plans to personally invest $1 million to provide capital to the company during the reorganization period.

Whittaker says the company will remain open and continue to provide customers with warranty, service, and customer support.

Leader of Waterford Speedbowl Staves Off Foreclosure

jbrown@castlelaw.net (News Author)11197 — Fri, 06 Nov 2009 08:00:00 EST

For the second time within the past three years, Terry Eames, the leader of the ownership group of Connecticut’s Waterford Speedbowl, has staved off foreclosure on the racetrack.

On (Friday before story), Eames and his group filed for Chapter 11 bankruptcy in Federal Court, effectively canceling a foreclosure auction at the facility that had been scheduled to take place on (date of story).

The action grants the group a chance to reorganize under the protection and supervision of bankruptcy court. According to Eames, all business affairs, including preparations for the 2010 racing season, would continue.

Eames said a giant multinational corporation made him an offer that would’ve turned the track into an industrial park, but he is “in love with this place as a racetrack and the community of people that make it that,” and is “determined to see this survive.”

Eames and his ownership group were received a loan from Southbury businessman and racing supporter Rocco Arbitell and business associated Peter Borrelli to avoid foreclosure by former mortgage holder Washington Mutual Bank.

Arbitell foreclosed on the ownership group in May 2008 after former track operator Jerry Robinson failed to pay property taxes. Eames and his group owe a debt of more than $750,000 to Arbitell and Borrelli.

Real Housewives Star Adds to Rising Rate of Foreclosure

jbrown@castlelaw.net (News Author)11192 — Thu, 05 Nov 2009 08:00:00 EST

The Real Housewives of New Jersey star Teresa Giudice may be regretting the decision to build her lavish new home from scratch.

Giudice and her husband, Joe Giudice, are now facing foreclosure on their newly built Lincoln Park, New Jersey home after their mortgage company filed a complaint in New Jersey Superior Court on October 9, according to an October 23 report from E! News.

DLI Mortgage Capital Inc.’s complaint seeks to recover the family’s home because of the amount of owed money the family failed to pay.

On the popular show’s first season, Giudice said she decided upon a custom-built 12,000 square foot home because she believed buying a pre-owned home to be “unclean.” She paid for tens of thousands worth of furnishings in cash.

The show was renewed by Bravo for a second season earlier in October.

Senator Durbin and Others Protest ABA for Rising Number of Foreclosures

jbrown@castlelaw.net (News Author)11166 — Tue, 03 Nov 2009 08:00:00 EST

On October 25, United States Senator Dick Durbin and nearly a dozen protestors issued calls for banks that received billions in bailout money to aid consumers who have fallen victim to bad loan practices and are losing their homes to foreclosure.

Durbin specifically referenced a Chicago, Illinois neighborhood called Marquette Park, which is near Midway Airport, noting that, despite the nice appearance, each block has a foreclosed home.

Durbin says the neighborhood is no different from others across the nation, during his speech at a downtown Chicago hotel conference room in from of approximately 500 protestors who had come to the city to protest the annual American Bankers Association meeting.

According to the accusations of Durbin and the protesters, the ABA lobbied against banking reform despite members receiving billions in federal bailout money.

The Obama administration has proposed cutting executive pay and bonuses for people who received the most bailout money. The administration has also proposed the creation of the Consumer Financial Protection Agency, which would be able to establish rules for consumer protection and prohibit business practices it deems unfair, dishonest, or abusive, among other things.

Several banking and business groups are in opposition to the proposed agency, saying that it would harm consumers by imposing so many new rules that companies would have to charge more for loans and credit, or not offer them at all.

Foreclosures Continue to Rise in Missouri and Kansas

jbrown@castlelaw.net (News Author)11152 — Mon, 02 Nov 2009 08:00:00 EST

According to statistics released on October 15 by RealtyTrac Inc., home foreclosures in Missouri and Kansas both saw an increase in September as the pace of foreclosures across the U.S. continued at a near-record pace.

RealtyTrac said that in September, foreclosure activity in Missouri saw an increase of 8.8 percent in comparison to September 2008. Foreclosure activity for September in Kansas was up 22.4 percent from September 2008.

Missouri was ranked 29th in the U.S. for foreclosure activity in September with a total of 3,154 filings, including default notices, scheduled auctions, and bank repossessions. Kansas was No. 33 with 1,272.

September foreclosure activity for Missouri was an increase of 26.3 percent from August. Kansas’ was an increase of 20.5 percent.

Foreclosure activity across the U.S. was down four percent from August with 343,638. However, it was up 29 percent from September 2008. In spite of the decrease, the total for September was still the third-highest monthly total since RealtyTrac’s report began in January 2005. The highest was July 2009 and second was August 2009.

City of New York Claims Right to "Tavern on the Green" Name

jbrown@castlelaw.net (News Author)11122 — Fri, 30 Oct 2009 08:00:00 EST

The city of New York has filed suit against the operators of bankrupt Tavern on the Green, claiming the city has the sole right to use the historical restaurant’s name.

According to the suit the city filed on October 21, the trademark, valued at $19 million by the operators of the restaurant, was the single largest asset in the bankruptcy estate.

The city is attempting to prevent the Leroy family, which owns the Tavern on the Green name, from opening or operating other establishments under the same moniker.

According to the Leroy family, they have owned the trademark since 1978.

Earlier in October, the operators filed suit against the city, seeking more time to auction the restaurant’s assets. The family has also argued that any new concessionaire could make much more profit by operating under the “Tavern on the Green” name.

The restaurant filed for bankruptcy protection in September after a new lease for the property was granted to another restaurateur.

The current operators have held a lease since 1974, but that least expires at the end of the year.

"Terminator" Franchise Up for Grabs

jbrown@castlelaw.net (News Author)11068 — Wed, 28 Oct 2009 08:00:00 EST

The production company that owns the rights to the “Terminator” film franchise is seeking a buyer for the film rights after filing suit against a hedge fund firm and filing for bankruptcy.

Halcyon Holdings Group has retained FTI Capital Advisors to look into strategic alternatives, which likely means selling the intellectual property rights, according to FTI Senior Managing Director Kevin Shultz.

Halcyon’s version of the science fiction series, “Terminator Salvation”, which starred Christian bale, was released earlier in 2009.

However, despite big name stars and a powerhouse franchise, Halcyon encountered financial woes. The company’s principals, Derek Anderson and Victor Kubicek, filed suit against Kurt Benjamin, a former business executive with California hedge fund firm Pacificor. They allege that Benjamin had arranged for a $30 million loan to finance the film, but did not inform them that a hedge fund was the source of the money.

The filmmakers also allege that Benjamin encourage the company to develop a video game subsidiary, which accounted for much of the production company’s losses.

After filing for hedge firm, the producers filed for bankruptcy, alleging that they were forced into it by the hedge fund’s insistence on being paid back.

The bankruptcy court would have to approve and sale of rights.

According to Shultz, a sale could come in well over the $30 million that Halcyon paid to purchase the rights in 2007. He says there has already been a great deal of interest.

Jolt Energy Drink Company Files for Chapter 11

jbrown@castlelaw.net (News Author)10988 — Mon, 26 Oct 2009 08:00:00 EST

Jolt Co Inc, the manufacturer of the famous Jolt Cola energy drink, has filed for Chapter 11 bankruptcy protection due to a dispute with drinks can manufacturer Rexam. The filing was on September 28 in Manhattan, New York.

According to Jolt’s court filings, the company agreed to purchase 90 million 23.5 ounce resealable cans from Rexam between January 2007 and December 2009. But due to the recession, Jolt has only been able to purchase 27 million as of the date of the filing.

Jolt has said that it must launch non-resealable cans to compete in the market, because Rexam’s resealable cans cost three times as much as non-resealable cans.

The company also said that it is not likely to secure additional capital to pursue the non-resealable can strategy due to Rexam’s claims and asserted liabilities.

In the bankruptcy filing, Jolt, doing business as Wet Planet Beverages, listed assets and debt between $1 million and $10 million. Rexam, which is owed approximately $2.1 million, was listed as the company’s largest unsecured creditor.

In 1985, Jolt Cola was created by C.J. Rapp as a highly caffeinated beverage. The energy drink is sold across the U.S., Canada, and Europe.

Adams Dairy Development LLC Declares Bankruptcy In Western Missouri

jbrown@castlelaw.net (News Author)11008 — Mon, 26 Oct 2009 08:00:00 EST

A large, multi-purpose real estate project in Blue Springs has ended in the bankruptcy of the developer, according to the Kansas City Business Journal and KansasCity.com. The bankruptcy is freezing the foreclosure of the property in question, which is off of Interstate 70, while the company developing the land seeks new financial support.

The company, Adams Dairy Development, LLC, began a new project called Lake Ridge Village. The planned 104-acre real estate project would consist of a number of commercial and residential buildings, including 200,000 square feet of commercial space, over 400 residential units, and a nursing home. However, the mix of lofts, condos, shops, and offices did not develop as expected in the last two years. Only a few lots were sold.

Adams Dairy Development has one secured creditor, Heartland Bank. According to proceedings following the company's Chapter 11 bankruptcy petition, the developer owes the bank $11.4 million. A handful of unsecured creditors are also owed money, including the Jackson County Collector, who is seeking real estate taxes.

The company's Missouri bankruptcy lawyer said that the company is looking for a way out of their money trouble - a solution that might include finding new investors, building a joint venture, or using the land for a different development project altogether.

Other real estate developers are also breaking ground in the Blue Springs area around the Interstate 70-Adams Dairy Parkway interchange, but with more success.

Filing Bankruptcy in St. Louis - New Median Income Amounts

jbrown@castlelaw.net (News Author)10921 — Thu, 22 Oct 2009 08:00:00 EST

Under the Bankruptcy Law passed in 2005, to qualify for a Chapter 7 bankruptcy, you must first pass the Means Test. The first step to see if you qualify for a Chapter 7 bankruptcy is to determine if your gross income for the last 6 months is above or below the Median Family Income for your household size in the state you live in. The Median Income numbers are updated by the U.S. Census Bureau periodically which changes the initial qualification numbers for bankruptcy purposes.

Toni Braxton Hit with Foreclosure

jbrown@castlelaw.net (News Author)10922 — Thu, 22 Oct 2009 08:00:00 EST

Singer Toni Braxton was recently hit with a foreclosure notice on her home in Century City, California.

The 40-year-old singer owes a total of $12,503.20 on a defaulted mortgage payment based on a loan from Bank of America. She recently defaulted on a City National Bank loan worth $900,000, which she pledged to repay in November. The bank says they haven’t received a check since April.

Braxton’s loan balance was renegotiated to $657,567.54 and she now owes $44,000 in interest. She says she took out the loan because of “financial difficulty.”

This isn’t the first time Braxton has fallen onto rough times financially. In the late 90’s, she fell nearly $4 million in the hole, forcing her to file for bankruptcy.

Braxton’s foreclosure notice was filed in September.

Charter Extends Bankruptcy

jbrown@castlelaw.net (News Author)10923 — Thu, 22 Oct 2009 08:00:00 EST

Bankrupt St. Louis-based U.S. cable operator Charter Communications Inc. has changed its debt restructuring deal with chairman Paul Allen, extending its bankruptcy until as late as December 15.

The agreement, which has been amended for the third time, to restructure debt held by Allen, a co-founder of Microsoft Corp. and other noteholders, was filed in bankruptcy court in Manhattan on October 13.

The amendment agreement allows for Charter to have until November 2 to emerge from bankruptcy, or until December 15 if the company has not been able to obtain the necessary permits and regulatory approval in connection with the reorganization plan by November 2.

According to attorneys for Charter, the company must get the required permits that cover areas serving at least 80 percent of its basic subscribers.

In March, Charter filed for bankruptcy protection due to a debt of $21.7 billion. However, at the time, the company said that it had reached agreements with key stakeholders that would allow it to emerge from bankruptcy within a matter of months.

The company originally reached the agreement with Allen and some of the noteholders in February. It called for Charter to reinstate $11.8 billion in debt at the same terms after the bankruptcy.

However, lender JPMorgan, on behalf of itself and other holders of $8.5 billion of Charter’s senior debt, opposed the bankruptcy plan, alleging that the company had violated its loan agreements.

Chicago's Burr Oak Cemetery In Bankruptcy Court

jbrown@castlelaw.net (News Author)10873 — Mon, 19 Oct 2009 08:00:00 EST

After a plot to dig up bodies and resell graves was exposed earlier this year, Burr Oak Cemetery in Chicago has faced a number of problems, including debt. The fraught cemetery has been attempting to go through the process of Chapter 11 bankruptcy and sell off what assets it has, but now a number of lawsuits involving the recent plot-selling scandal could multiply the cemetery's financial problems. Allegedly, at least 300 bodies were dug up and discarded in the recent past from the troubled cemetery.

Cemetery operator Perpetua-Burr Oak Holdings of Illinois LLC had been planning to escape its money woes through a debtor-in-possession loan from Pacesetter SBIC Fund Inc., for almost half a million dollars. However, now the families of some of those buried at Burr Oak as well as the state of Illinois are filing lawsuits that will complicate financial matters and prevent any short sale of assets.

Perpetua Holdings of Illinois has already given control of their company to independent chief operating officer to run the cemetery in a court order approved by U.S. Bankruptcy Judge Pamela Hollis. In addition, Roman Szabelski of Catholic Cemeteries will act as an unpaid consultant in the matter.

Still, there is not a good idea of when the cemetery will reopen or how the roughly 50 civil suits filed against the company will be resolved. The clean-up and reopening was halted when the company declared bankruptcy - but now acting COO Howard Korenthal is expected to manage the crisis and return the cemetery to normalcy.