Property: Is it Real or is it Personal?

A key aspect of Bankruptcy is determining what you owe and what you own.  Usually, what you owe is fairly simple because it seems like whichever way you turn they're there just waiting to tell you what you owe them!  Unfortunately, what you own, while not complicated, may take a little time.

First - property to typically broken into two categories, Real and Personal.  In Law School I heard that an easy way to understand what Real Property is if you can move it it's likely Personal Property - everything else is Real Property.

The formal definitions are that Personal Property is any movable or intangible thing that is subject to ownership and not classified as Real Property.  Real Property is Land and anything growing on, attached to, or erected on it, excluding anything that may be severed without injury to the land.

In every day Americana and in the context of Bankruptcy Real Property is the home you live in, and Personal Property consists of what you would consider your personal possessions.  Real Property is easily inventoried, however, Personal Property make take a little bit of time.

It is important that you capture the extent of your belongings, from socks to lawn mowers.  The easiest way that I have found to do this is approach the task room by room.  Start in the kitchen and develop a list of the pots and pans, silverware, furniture, etc.  Keep in mind that the stove and dishwasher likely came with the house and are part of your Real Property.  Then keep the process moving room by room.

We developed a spreadsheet that provides a handy format for capturing the list.  Once you have the list then you will need to place a value to your property.  This is the replacement value - what you could buy it for from a retail vendor considering its condition and age.

Keep in mind that stocks and bonds, insurance policies, jewelry, cars, collectables, etc., are all considered Personal Property.  Tax Returns are also required to be listed.

If you are looking to start off the New Year with the resolution of getting your finances under control, give us a call today to set an appointment for your FREE consultation.

757-410-9263

Visit our web site at

http://www.KDBLawFirm.com

Be safe, be blessed and be in control!

Our First Date: What to expect!

Ok, so hopefully you have pulled your paperwork together and now you are ready to go out and find a Bankruptcy Attorney (see my earlier post about paperwork).  First, let me address a misconception about Attorneys.

Not all Attorneys charge a consultation fee.  Those that do, from my experience, are simply trying to weed out the serious from the 'just looking for free legal advice.'  Folks must understand that Attorneys primarily earn their living from applying their knowledge and experience.  When that is given away for free - you don't need the Attorney!  Therefore, a free consultation is intended to be used to meet the attorney and see if they are a good fit for the issues that you bring to them.  The free consultation is not intended to answer all your specific questions about how you should answer a traffic ticket, or how to file for divorce or bankruptcy.

Our trip towards filing a Bankruptcy Petition ( the formal document that will be filed with the United States District Court, Eastern District of Virginia, Norfolk Division) for you begins with a FREE consultation.  During that time we'll share - you providing some specifics about your situation and we'll try and provide some answers, such as:

• Are you married? and, will this be a joint or individual filing?
• Do you have a mortgage? How about car loan(s)? and, how about any other secured debt?
• Are you working? What income sources do you have?
• How many dependents do you have?

That is just a small sampling of what we'll discuss.  We really won't talk much about each of your debts and creditors, but will focus primarily on whether or not it appears if you would qualify for a Chapter 7 (Chapter 7 and Chapter 13 are two specific forms of personal Bankruptcy).  My intent with our initial meeting is for you to leave (1) with a solid understanding of what the Bankruptcy process consists of; (2) being comfortable with me as an individual and professional; (3) understanding the potential outcome of a Bankruptcy; and (4) what your next steps are.

Additionally, when you leave the office after our first meeting you will take with you a folder containing:

• A process flowchart of the overall steps included in filing,
• A personal property inventory worksheet,
• Information concerning required counseling (a pre and post filing counseling class is required of each filer - they can be taken online!) that must be completed,
• Our contact information and e-mail address,
• An informational brochure on filing Bankruptcy, and
• A clear understanding of our low fees!

The information that we provide will be applicable regardless of who you have assist you.  My goal when you leave the office is not what you might expect; I truly want you to (1) understand the process and how it applies to you, (2) realize that there is hope, and (3) appreciate that a Bankruptcy really can provide you (and your family) a fresh start.  Now I am human so yes I want your business - but, I want it because you feel comfortable with us and not because you were bowled over with a pushy sales pitch!

Confession Time:  I strive to always be prompt in returning my calls, courteous and respectful of others, professional in all my dealings and to place your interests above all others!  However, I am human, and when and if I mis-step, I am humble enough to apologize!  My personal ambition in life is to be of servitude to others before myself.

Before we meet, you must understand that I have an engineering background so be expecting to be wowed by my mastery of a White Board and and a handful of colored markers!  I'm working on getting some of these up on YouTube (another reason to Like us on Facebook!).

Be looking for my next blog where I will try and simplify the differences between a Chapter 7 Petition and a Chapter 13 Petition, and what determines which one you may file!

Is Bankruptcy an option for me?

To start with let me dispel what I consider a myth.  The vast majority of folks that I have had the privilege to help did not get in their present financial position out of negligence, or what I would call irresponsible behavior. Most folks, like allot of Americans, have lived their daily lives being only one event away from a financial disaster.  For example,

• How many folks do you know that could afford to live on unemployment alone for 3-6 months?
• How many folks can afford to be out of work due to injury or illness for a month or longer? 
• If your spouse were to suddenly leave (no longer providing income) could you continue to live like you did last month?  and,
• Who didn't loose their life's savings in the real estate market recently?

Bankruptcy can be, and often is, the right strategy for an individual or family to follow.  I say strategically because when it is done properly and with the right intent it truly can provide you a fresh start.  However, it should never be the first option you think of as there are often many less intrusive options.

For example, depending on the type of debt, you may want to consider ...

• Credit Cards .............work with the card holder to reduce your interest payments.
• Mortgages .................work with your mortgage company to apply any missed payments to the end of the term of the mortgage.
• Medical Bills ..............contact the individual providers to work out payment plans.

The key to being able to work with a creditor is to contact them early on when you first anticipate that you might be in a pinch!  Communicate with them early and often is the best game plan.

One of the things that most folks do not understand is that often creditors will not work with you until you are already 3-4 months behind.  The thinking here can be as simple as this:  if you are current with your bills then what's the problem.  Companies use the fact that you are behind as the indicator of the problem - otherwise, from a business perspective, they would effectively be loosing money lowering your interest rates!  Welcome to capitalism at its finest!

If you've tried everything short of bankruptcy and you are starting to get calls or letters about...

• Court action,
• Warrant-In-Debts,
• Foreclosures,
• Suspension of service (basic utilities, etc.)

Then it is probably time to meet with someone to talk about the opportunities that Bankruptcy can provide.  Below, I include some real world examples of the benefits of filing.

What Bankruptcy can do for you ...

• Upon filing, immediately stop any type of debt related court action that is (1) already filed and scheduled for a hearing, or (2) being threatened by a creditor.
• Stop payroll garnishments.
• Stop foreclosure actions on your home.
• Stop repossession actions with respect to your car.
• Stop the phone from ringing off the hook.
• Stop the constant stream of mail from bill collectors.
• Keep the light and water on.
• and, if your car was recently repossessed, you may be able to get it back!

The bottom line is this, when your debt load gets to the point that you can't sleep at night, it is a constant stress factor between you and your spouse, or a whole host of other things ... make an appointment and speak with someone. 

Overwhelming debt can cost allot more than money;

what is it really costing you? 

Let's Get Started!

One of the things that I find rather frustrating about blogs is that quite often they just ramble on - while I appreciate that everyone has something to share, I often find myself pressed for time and am looking for specific answers or guidance.  Therefore, with the assistance of a great SEO company, Internet Highway, as this blog comes to life I want to give it some direction.

Speaking specifically to Bankruptcy and Family Law, when folks have to seek out an attorney it is most likely because they are in need of help, not because they have an overwhelming desire to bond with someone they pay by the hour!  (no jokes please)  Most folks, prior to actually making an appointment to speak with someone, likely do some Internet searching first.  Given that premise I undertake this blog for two reasons.

First, I want to introduce myself and allow folks to get a better understanding of who I am and, more importantly (at least it would be for me), is to better understand the kind of lawyer and person that I am!  Let me try and explain; my wife's favorite joke is "What is the difference between a lawyer and a catfish?"  (sorry, you aren't going to get the punch line out of me!) and, because we all know at least one lawyer joke, my intent is to differentiate myself from the reputation my profession has earned!

Secondly, and personally of greater significance, is to provide some help!  A blog in and of itself is not going to reach out and make your problems go away, but hopefully, it will at least convey to you, a friend or a family member, that there is someone out there that cares and can help!  When life reaches out and grabs us with overwhelming family problems, or the creditors calls are getting intrusive, is when we sit down at the computer and try to figure out what to do.  I want this blog to be the lifeline that you, or someone that you know, can hang onto.

Understanding that this is how I make my living - this is what puts food on the table - Yes, I would like your business.  However, I want you to understand that as an individual (with my many flaws, quirks and less that always perfect reactions) I practice my profession with the foremost thought to help!  In short, if I do not think that I can help you, or that you even need the services of an attorney, then I will tell you.  If I know, I'll likely point you in the right direction, either to another professional, or maybe to a site and show you how to do it yourself!

So, in the coming weeks and months I am going (OK, what I really mean is that I'm really going to try hard and do this) to post several times a week.  Since I call myself a Family Law and Bankruptcy attorney that will be the focus of my topics.  I don't intend to make this a totally self-help blog - meaning that I'm not going to teach in such detail that you don't need me!  (Remember, I did say that this is what puts food on my table).  What I will write about are things that get you thinking about what you can do or which direction you should head.  For example, "Is Bankruptcy right for me?", "What does it mean if I adopt my step-child?", "What does Chapter 13 mean?", "Can I stop this foreclosure?", or "Do I really need a will?".  If you need to talk to someone about what to do, then I hope that you will consider me your resource!

So, I hope you stumble across this site and take the time to read a posting or two.  If you find them provocative or helpful then take a sec and post a comment.  Maybe share them with a friend that might need a chance at a lifeline.  Seriously, help me help someone else!

Have a Tebow kinda day!
(stand up for what you believe in)

Number of Consumer Bankruptcy Cases Filed Drops

Consumer Bankruptcy filings declined through November, 2011 - down 5% from October.  This slide continues the year long trend in that filings are down 12% overall since last November.  While some may think that the long awaited recovery is gaining momentum, others, myself included, look at it somewhat differently.

 

 

It is my personal opinion that the number of filings are down for a myriad of reasons:

 

 

First, I believe that those folks who were pressured into filing Personal Bankruptcy, particularly, either Chapter 7 or Chapter 13, have already done so.  By pressured I mean by their creditors.  When creditors are actively pursuing collection on debts is when most folks are probably more likely to file.  For example, when a creditor initiates court action, like a warrant-in-debt (Virginia), Garnishments, and/or Foreclosures, etc., folks turn to Bankruptcy to stop the pursuit.  Once someone files a good faith bankruptcy an Automatic Stay comes into play effectively stopping a creditor's pursuit.

 

 

Second, with unemployment elevated anywhere between 8-15%, depending on your source, there are a considerable number of families out of work.  Loss of work invariably causes a reduction in assets.  By this I mean that when the income stream is disrupted we are more likely to have less assets or "things" for a creditor to try and take.  For example, when there is no paycheck a creditor may decide not to pursue the individual debts because they do not see any return.  It is a simple business decision to avoid the fees of trying to collect on a debt if the debt is noncollectable.

 

 

When someone does not have the personal assets to cover outstanding debts, then that person is ofter referred to as being judgement proof.  A creditor gains no benefit from obtaining a judgment if they are not able to collect on that judgment - i.e., judgment proof; and ...

 

 

Third, those folks who may be likely candidates for personal bankruptcy have simply decided that at the present time they will simply turn off the phones.  We've all been there with that late bill for a creditor who calls every minute of every day!  I would bet Mitt Romney's $10,000 that there are folks that have discontinued home phone service to avoid creditors - we all now have cell phones anyway, right!

 

 

So, unfortunately, I do not think that simply because the number of filings are down month to month is a positive sign that good times are coming.  The advice that I would offer is (1) get your financial house in order, now not later; (2) if you are questioning whether bankruptcy is right for you, strategically, then give us a call because dealing with the problem today means YOUR recovery happens sooner than later; and (3) remember that buying on credit is only spending tomorrows paycheck today!

 

 

Be Blessed and have a Tim Tebow kinda day!

(stand up for what you believe in!)

 

 

Kirk