How To Bark Back When A Creditor Calls

Written by Ken Jorgensen 

A creditor's telephone calls can become harassing and threatening.  This problem gets worse if you have a lot of creditors seeking payment today.  

Here are a couple of effective steps to stop creditor harassment:

Hire an Attorney

A debt collector who knows that a debtor is represented by an attorney regarding a bill cannot call the debtor.  Here are the requirements:

• Creditor has to have knowledge of the attorney; or 
• Creditor could readily ascertain the attorney's name and address.  
• In California, it is helpful for the attorney to send a letter to the creditor of legal representation.  

Once a creditor is notified, the creditor is no longer allowed to call and attempt to collect on debt.  

The cost of retaining an attorney for this purpose should not be expensive.  Having represented hundreds of debtors, I find that once a creditor makes initial contact to confirm that a debtor is represented, they do not want to waste resources calling the attorney every day.  Typically, communications are less than once per month.  Thus, there is not much work that an attorney would have to perform.

Write A Letter Telling Them to Stop Calling

The cheapest means to stop a creditor for calling is to write them a letter.  The contents of the letter have to say one of the two messages:

• State the debtor refuses to pay a debt; or
• State debtor wishes no further telephone calls with them.  

The debtor should keep copies of the letter.  While not required, it is helpful to use multiple mediums to write a creditor so a creditor cannot say it never received the letter: 

• U.S. Mail, both registered and first class;
• Facsimile (keep the fax transmission page; and/or
• E-mail.

Once the creditor is contacted, they are limited in how they contact a debtor.  Here are the permitted communications under the Federal Debt Collection Practices Act:

• advise that the debt collector’s further efforts are being terminated;
• notify that the debt collector or creditor may invoke specified remedies which are ordinarily invoked by such debt collector or creditor; or
• where applicable, notify that the debt collector or creditor intends to invoke a specified remedy.

If such notice from the consumer is made by mail, notification shall be complete upon receipt.

Warning!

Effectively ending communication with a harassing creditor may prompt the creditor to immediately file a lawsuit.  

Attorney Ken Jorgensen is located in Clovis, California.  He handles personal, property and business disputes, including bankruptcy and eviction cases.  You can find out more about Ken on Facebook, or at his websites, www.fresnolawgroup.com and www.fresnobankruptcylawgroup.com.  He can be reached at jorgensenlaw@gmail.com or by telephone at 1-559-324-1882.

Chapter 7 and Chapter 13 Filing Fees Go Up On June 1, 2014

If you are planning on filing Chapter 7 bankruptcy or Chapter 13 bankruptcy, you can save a little money on court filing fees if you file bankruptcy before June 1, 2014.  The filing fees are going up approximately 10%.  

The new fee increases are as follows:

• For filing a Chapter 7: $335
• For filing a petition, or for filing a motion to divide a joint case, under Chapter 13: $310

Presently Chapter 7 cases are $306 and Chapter 13 cases are $287.  

Attorney Ken Jorgensen is located in Clovis, California.  He handles personal, property and business disputes, including bankruptcy and eviction cases.  You can find out more about Ken on Facebook, or at his websites, www.fresnolawgroup.com and www.fresnobankruptcylawgroup.com.  He can be reached at jorgensenlaw@gmail.com or by telephone at 1-559-324-1882.

Photo Credit: StockMonkeys.com at Flickr

Tax Filing Deadline This Tuesday

Chapter 7 Bankruptcy, Tax Filing Deadline, & Bankruptcy Exemptions!

Written by Ken Jorgensen

The goal of Chapter 7 Bankruptcy is to provide a fresh start after suffering from financial turmoil. Most understand that filing bankruptcy is not going to cause the debtors to lose everything own, including the shirt off their backs.  The best way to understand a "fresh start" is that debtors are allowed to keep just enough to begin a successful path to financial freedom.  Thus, much of a debtor's assets are exempt from being liquidated.  Here is how exemptions work: How Much Money Can I Keep?

Here is a tool that correlates with Tuesday's tax filing deadline: Retirement Accounts.

The lawmakers wrote the code to encourage families to save for retirement.  As such, funds in IRS designated accounts are exempt.  Debtors get to keep them.

Individuals are allowed to deposit up to $4,500 in individual accounts per year.  Right now, through Tuesday, folks are allowed to contribute funds for both 2013 and 2014. Thus, up to approximately $9000 can be converted into an exempt asset status.  After Tuesday's deadline, debtors can still contribute $4,500 for the 2014 tax year.

Buying groceries, fixing cars, mortgage payments and groceries are other tools to take non-exempt cash and be able to convert it to exempt property from the bankruptcy estate.

Attorney Ken Jorgensen is located in Clovis, California.  He handles personal, property and business disputes, including bankruptcy and eviction cases.  You can find out more about Ken on Facebook, or at his websites, www.fresnolawgroup.com and www.fresnobankruptcylawgroup.com.  He can be reached at jorgensenlaw@gmail.com or by telephone at 1-559-324-1882.

Images courtesy of Images Money at Flickr

More California Families Qualify To File Chapter 7 Bankruptcy

Recent good news for families contemplating filing Chapter 7 Bankruptcy in Fresno and throughout California!  Beginning April 1, 2014, more families in California will be able to get a fresh start by filing a Chapter 7 bankruptcy.

One obstacle to filing a Chapter 7 bankruptcy case is the "means test".  Most individuals whose debts are consumer debt (not business debt) have to "pass" the bankruptcy means test.  The bankruptcy "means test" determines whether your income is low enough for you to file Chapter 7 bankruptcy. It is a "test" designed to keep debtors with higher disposable incomes from filing for Chapter 7 bankruptcy. High income filers who fail the means test may use Chapter 13 bankruptcy -- a chapter in bankruptcy that requires debtors to repay a portion of their debts.  

The amount a household earns is just one factor.  A family that does not make much money will surely pass the means test.  However, households that have good paying jobs can also pass the test.  The size of the household and the amount of monthly recurring expenses play an important role as well.  A family of 7 can have yearly income exceeding $100,000 and still qualify under the means test.  Having a lot of expenses, such as paying child support, making a large house mortgage, or having a car payment can help pass the means test.  Here is a simple analysis to determine if your household can pass the means test:

Step One: Is Your Income More Than the Median?

Below is the newest median yearly income for a households in California:   





This median yearly income chart just became effective last week.  It was released by the Justice Department. The Justice Department changes the thresholds approximately twice per year.  It last changed in November of 2013.  The changes resulted in fewer families qualifying for Chapter 7 bankruptcy.  I wrote about the changes in a a blog article last November.  If you are reading this article after October of 2014, there is a good chance this information is no longer good.  Click the link to find the most up to date information.  

First, identify how people are in your household.  If you are single, current maximum household income is $48,498.  If there are 4 people in you household, the amount you are allowed to make is $76,211.  If you have more than 4, add $8,100 for each household member.  

If your household income is less than the chart states, you pass. Period. You're done. You do not need to complete the rest of the means test. You can file for Chapter 7.  No need to do the the second step analysis. 

Step Two: Analyze Monthly Expenses

For those whose household income exceeds the state median, the means test computations get significantly more complex. You can still pass the means test, but it will require detailed analysis of your household's monthly expenses.  You must determine whether you have enough income left over (called "disposable income"), after paying your "allowed" monthly expenses, to pay off at least a portion of your unsecured debts (such as credit card bills). If your disposable income adds up to more than a certain amount, you fail the means test and cannot file for Chapter 7 bankruptcy.  You may be required to file for Chapter 13 bankruptcy.

Attorney Ken Jorgensen is located in Clovis, California.  He handles personal, property and business disputes, including bankruptcy and eviction cases.  You can find out more about Ken on Facebook, or at his websites, www.fresnolawgroup.com and www.fresnobankruptcylawgroup.com.  He can be reached at jorgensenlaw@gmail.com or by telephone at 1-559-324-1882.

Photo Credit: "happy puppy" by Robert Couse Baker at Flickr