Ken Jorgensen Update's Bankruptcy Website

I am pleased to announce that I have updated my bankruptcy website!  This website is meant to offer better content to clients and potential clients in a clean and crisp format.  I am very happy that the website is responsive to viewing on mobile devices as well!  Please check it out and let me know what you think!

fresnobankruptcylawgroup


The website was designed by Rod Silver of Artco.

Fresno War Hero Falls Victim to Payday Loan Business Charges 460% APR!

Jason Comely at Flickr

A couple of weeks ago, I heard the saddest story from a 80+ year-old war hero.  He told me that he had survived many attacks from enemy fire, but he fell victim to our local payday loan industry.    

Retired and recently widowed, this war hero was forced to take out a payday loan to help his children's family out.  (Most of his retirement is spent on family.)  Unfortunately, he was not able to repay the loan on time and has losing a battle to late fees and interest rates that are eating away his monthly retirement fund.  He spends nights wondering how he is going to be able to dig himself out this hole.  

Bankruptcy may be a last resort.  

Payday loans advertise themselves are being saviors to community as they can be a short term fix until the next payday; however, I think they are more a cancer on our local economy.  In fact, I think these businesses pray upon the lower economic citizens in the Central Valley.

Fresno's "Check Into Cash" Charges APR of 460%.

I went online to check out a few Payday Loan companies in Fresno.  I was shocked!  Fresno's "Check Into Cash" payday loan store charges their customers an interest rate of 460%, per year.  They proudly advertise it.  Here is an image from their website: 




















The sad fact is that this not uncommon in the industry.  Client borrows $255, and then repays $300 14 days later.  That is 460%.  

You might be thinking that I am making a big deal over $45.  However, as a bankruptcy attorney, I have listened to the story dozens of times:  Client goes and gets $255.  Repays $300.  Has to go back again.  Then again.  Sooner or later another "emergency" happens and there is no $300 to repay.  The client then goes to a different check cashing store to get $255 to pay to the first store.  Soon, the client is juggling multiple stores.  No wonder that filing a Chapter 7 Bankruptcy becomes the only way out.     But this is not how they advertise it   Fresno 

Cash Advances Promises They "Might" be the Answer to Financial Woes:

Cash advances or payday advances, are ideal for anyone who is in an emergency situation and needs money now. Whether you need cash to pay a utility bill, the landlord, get your car repaired, or any other unexpected expense, payday loans might be the answer and Check Into Cash is right around the corner. We have a Fresno payday loan center in Midtown Plaza ready to help you get your money today.

How does this happen?  Why does it happen so often?  Certainly it is not because of a lack of businesses that offer the service.  I went onto a search engine and typed "payday loans Fresno".  There were pages of advertisement.  I looked at a map of Fresno, and the map had more than 70 businesses listed as payday loan centers.  70!  Shaw Avenue is by the far the epicenter of check cashing stores.  North of Alluvial Avenue had some payday loan businesses, but they were few in number.  There were a good number of businesses located south of Shaw Avenue, but I was surprised that Shaw Avenue had the densest supply of businesses.  

It is Easy To Get a Payday Loan!

Nor is it difficult to get money.  I investigated a little further by researching a company online, Fresno Check Into Cash Fresno Payday Loans.  Here is how they describe how you can get a loan:  

You just have to write a check and leave it with the store.  This seems too simple.  I would imagine that you would have to show a driver's license and some pay stubs to show that you are gainfully employed.  But, even if they required the additional amount, the process is still easy.

The funny thing is that if people were able to save $255 and put it into a savings account themselves, they would not be abused by such high fees.  Its a shame that Fresno seems to have a city full of people who cannot save a little a  money, but are able to keep 70+ businesses flush with cash.

Attorney Ken Jorgensen is located in Clovis, California.  He handles personal, property and business disputes, including bankruptcy and eviction cases in California.  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.

Student Loans: Federal Legislation is Proposed to Lower Outstanding Interest Rates to 3.86%

Right now, filing bankruptcy does little to alleviate the burden of Student Loan debt, aside for temporarily deferring monthly payment requirements.  Student loan debt is preventing young people from buying homes because they cannot afford to make student loan payments and  mortgage payments.

Here is some potential relief to those who now owe student loans with a high rate of interest:

U.S. Senator Dick Durbin (D-IL) joined U.S. Senators Elizabeth Warren (D-MA) and U.S. Senator Jack Reed (D-RI) today introducing the Bank on Students Emergency Loan Refinancing Act, which would allow those with outstanding student loan debt to refinance at the lower interest rates currently offered to new borrowers. Durbin, Warren, and Reed have been working together on efforts to build broad support in the Senate for legislative action to reduce new student loan debt and make it easier for millions of working families to manage the student loan debt they already have.

Many borrowers with outstanding student loans have interest rates of nearly 7 percent or higher for under U.S. Senator Dick Durbin (D-IL) joined U.S. Senators Elizabeth Warren (D-MA) and U.S. Senator Jack Reed (D-RI) today introducing the Bank on Students Emergency Loan Refinancing Act, which would allow those with outstanding student loan debt to refinance at the lower interest rates currently offered to new borrowers. Durbin, Warren, and Reed have been working together on efforts to build broad support in the Senate for legislative action to reduce new student loan debt and make it easier for millions of working families to manage the student loan debt they already have.

For the rest of the article, please click:

U.S. Senate Press Release

If you are interested in lowering student loan interest rate, please contact your Senator as this looks like a good bill that should become law.

Attorney Ken Jorgensen is located in Clovis, California.  He handles personal, property and business disputes, including bankruptcy and eviction cases in California.  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: donkeyhotey at Flickr

Dave Ramsey's Debtor Education Is Wholly Endorsed by Bankruptcy Attorney Ken Jorgensen

Bankruptcy's Financial Management Course with Dave Ramsey

I have listened to the Dave Ramsey Show for many years.  Dave is all about helping people get of debt. Plain and simple.  He wants people to be more excited about having paid off their house mortgage than having a financed BMW car in the driveway.   If you have read any of Dave Ramsey’s books or listen to his radio show you know that he is not only informative but entertaining.

Four years ago, while at the National Consumer Bankruptcy Association's annual meeting, I learned that Dave offered one of the two required classes all bankruptcy filers must take.  Having already been a fan, I signed up my office to be a registered attorney.  I have encouraged all my clients to take this great Debtor Education class.  This class is the class my bankruptcy clients take after filing bankruptcy.  What a great way to start over with an effective financial plan!

I have dozens and dozens of my clients Dave's class.  I have received a lot of positive feedback for this course.

In addition to the online class, Dave Ramsey's staff provides my office with copies of his "Starting Over-Post Bankruptcy Survival Guide" to give to each of my clients.  

I also direct my clients to Dave's website.  From there, you can find his Financial Peace University Class, online budget tools, his books and be able to stream his radio show.

Attorney Ken Jorgensen is located in Clovis, California.  He handles personal, property and business disputes, including bankruptcy and eviction cases in California.  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.

How Does Bankruptcy Stop Home Foreclosure In California?

If you are facing foreclosure, bankruptcy offers two choices: 1. Delay foreclosure so that you can save money and find another place to live (Chapter 7 bankruptcy); or 2. Save your house be catching up on past due mortgage (Chapter 13 bankruptcy).

Here are more details on how bankruptcy can stop your home from being foreclosed:

The Automatic Stay: 

Instantly upon you filing bankruptcy, the court automatically issues an order -- called a “stay order”, or an “order for relief.”  It automatically directs your creditors to stop all their collection activities. If your home is scheduled for a foreclosure sale, the sale date will be canceled.  The Automatic Stay is issued in both Chapter 7 cases and Chapter 13 cases.

A Chapter 7 Delays Foreclosure Proceedings: 

Filing a Chapter 7 Bankruptcy will delay a foreclosure between two and four months.  A lender may file a motion seeking relief from the “stay order.”  Essentially, the lender seeks the bankruptcy court's permission to proceed with the sale.  It is usually granted because the homeowner is behind on payments.  If this motion is filed soon after you file bankruptcy, foreclosure will be typically delayed by two months.  Sometimes a lender does not file a motion.  They will be allowed to proceed with foreclosure about three of four months after filing your case.  Thus, during a Chapter 7 bankruptcy, you can live in your home for free for several months while your bankruptcy is pending. You can then use that money to help secure new shelter.

A Chapter 13 Can Save Your Home:  

Chapter 13 bankruptcy, on the other hand, is a great tool to save your house from foreclosure.  After the case is filed, our office works with you to prepare a plan to catch up on the payments are past due.  The plan has to be crafted so as to be caught up with payments in a five year time frame/60 months.  For example, if a homeowner is behind $30,000, the homeowner can make $500 a month payments over 60 month time frame.  The homeowner will also need to make the regular monthly house payment during the plan period as well.  These plans can be tough, but with hard work and a disciplined budget, your home can be saved.    

Attorney Ken Jorgensen is located in Clovis, California.  He handles personal, property and business disputes, including bankruptcy and eviction cases in California.  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:

Jeff Turner on Flickr