Posted on Tuesday, November 24th, 2009
In Rhode Island, there almost 5,900 lawyers for a population of 1,050,788 people. We could easily fill the Providence Performing Arts Center (PPAC) to capacity . . . . . . TWICE.
If you needed to file bankruptcy in Rhode Island, could you imagine standing on the stage of PPAC trying to figure out which lawyer in the crowd was the ideal choice?
Bottom line: there is no shortage of lawyers willing to take your bankruptcy case.
So, where do you begin? Do you call the lawyer with the biggest bankruptcy advertisement, or do you take the bargain-basement lawyer who advertises on place-mats at your favorite Chinese restaurant?
Here is a better approach. Go for the most experienced lawyer you can afford.
Just as you would not hire a dentist whose only tools were pliers and a bucket, neither should you hire a bankruptcy lawyer without first seeing if he has the tools necessary to represent you.
Here are just a few questions to ask:
- Is he really just a general practice lawyer? I believe a debtor is best represented by an attorney who devotes his entire practice to bankruptcy.
- How long has he been practicing bankruptcy law? If he just changed his personal injury law firm to a “bankruptcy boutique” last week, you should know.
- How many bankruptcy cases has he personally handled? Would you feel better knowing he has handled a few cases like yours, or a few hundred cases like yours?
- Who will do most of the work? Does he just spend 30 minutes with you on the initial consultation then his secretary takes over? Are you filling out lengthy questionnaires with little to no access to the attorney?
- Who will represent you at the creditor’s meeting? Will you be disappointed if an attorney you’ve never spoken to before represents you at your hearing, because the lawyer you hired is too busy to attend?
- Are his fees comparable to what other experienced bankruptcy lawyers are charging? Not too low, not too high.
Like most things in life, you get what you pay for. An experienced bankruptcy lawyer will save you money by avoiding costly mistakes and offer you the peace of mind in knowing that your case is handled properly and professionally.
Mark Buckley is a Warwick, Rhode Island bankruptcy lawyer and CERTIFIED FINANCIAL PLANNER professional . If you live in Rhode Island and would like a free telephone consultation to discuss your debt situation, please contact Mark Buckley. XQPKZ68EC5BB
Posted on Wednesday, October 28th, 2009
In a recent video by ABC6 News, it was suggested that a person could lose their house if they file a Chapter 7 bankruptcy. While there are limits to how much equity can be protected, the statement was misleading.
The process is actually easy to understand and is designed to protect most homeowners who need bankruptcy relief. Let me explain how you can keep your house and still file bankruptcy.
Under Rhode Island bankruptcy law, a debtor stands at a fork in the road when it comes to protecting real estate. He can choose either Federal or Rhode Island exemption laws. Both laws allow a debtor to protect a certain amount of equity in his house.
As a reminder, equity is the difference between what a house is worth and the remaining money owed on the mortgage. In other words, it represents that portion of the home that the debtor truly owns. For example, if a house is worth $ 350,000, but there is $ 275,000 mortgage balance, there is $ 75,000 worth of equity in the house.
For clarification, here is the better question to ask: How much equity can a RI debtor protect in his house?
If a debtor has lived in RI long enough, he can protect up to $ 300,000 of equity in his principal residence under RIGL 9-26-4.1. This is known as the homestead exemption.
Under Federal exemption law 11 USC 522(d)(1), a debtor may protect up to $ 20,200 in equity as an individual, and $ 40,400 in equity if filing bankruptcy jointly with a spouse.
The debtor must make a choice. Will he benefit more by using Federal exemption laws that are more generous in other property categories, or will he do better with RI laws that offer deeper protection in fewer property categories?
In addition to getting accurate market data on the house, an analysis must be performed by a qualified attorney to determine which laws will accomplish the greater protection.
In reality, it is very rare for a person to lose their home in bankruptcy. The reason for this is that most debtors do not have substantial equity in their homes. With real estate prices plummeting these past few years, and heavy mortgage refinancing prior to that, most homeowners have seen their equity go down.
Bottom line, there is plenty of protection available for most homeowners trying to protect the roof over their heads. There is no need to fear that the process is arbitrary. It is pretty cut and dried. You can know that your house is protected even before your bankruptcy case is filed.
I have represented thousands of home owners who were able to wipe out unpayable debt and STILL KEEP THEIR HOUSE.
If you want to understand how you can protect your house and still file for bankruptcy relief, give me a call at 467-6800, or request a free consultation following the link below.
Posted on Wednesday, October 21st, 2009
Here is a link to a recent news story about when you should consider bankruptcy as an option for debt relief. ABC6 News: Filing Bankruptcy in Rhode Island The only part of the story that should be clarified is that while a Chapter 7 bankruptcy limits the amount of equity you can protect in a home, the laws are quite generous.
In Rhode Island, we can choose between Federal and State exemption laws that allow great protection for real estate. The bottom line is that in the 3,000 clients I have represented over the years, the court has never taken a house.
If you are considering bankruptcy and are concerned that filing a Chapter 7 case may affect your home, give me a call at 467-6800. I will explain how we can discharge your consumer debt and protect your house at the same time.
I am available for telephone consultations and in-home appointments throughout Rhode Island and Massachusetts.
Posted on Saturday, October 17th, 2009
Since 2005, the bankruptcy “Means Test” has been used to determine who qualifies for Chapter 7 bankruptcy relief. It acts as a “gatekeeper”. The Means Test attempts to measure the cost of living in your area and how your income compares to that of other families of your size.
The test is arbitrary and has had some unfair results.
For each state, the census calculates the median (middle) gross income for all family sizes. A person filing for bankruptcy must then show all the gross income generated in their household for the prior 6 months, double it, then compare that number to the census figure.
If their gross income falls below the census figure, they pass the means test and can move forward. If their gross income is higher than the census figure, the process gets very complicated and can prevent a debtor from filing a Chapter 7 case.
Failing the Means Test often means having to pursue relief under Chapter 13 of the bankruptcy code which is a 5 year repayment plan.
On November 1, 2009 there will be new income limits for Rhode Islanders who are contemplating a bankruptcy filing. Only households of 2 or 3 persons will find it easier to file bankruptcy after the change. Single persons and households larger than 3 will find it more difficult.
Here are the new median income figures for RI households that will be used for Means Testing effective 11/1/09
- 1 person $ 45,222
- 2 people $ 62,806
- 3 people $ 76,846
- 4 people $ 87,002
- 5 people $ 93,902
- 6 people $ 100,802
- 7 people $ 107,702
- 8 people $ 114,602
- each additional person add $ 6,900
But what counts towards gross income? And how do we calculate family size for income comparison when there are so many living arrangements these days? These are good questions and cannot be answered in this article because every case is different.
If most/all your income is being used just to pay monthly credit obligations you need advice today. Call 467-6800 for a free telephone consultation, or leave some contact information and I will be happy to call you.
Posted on Sunday, October 4th, 2009
It takes about 90 days to get through a Chapter 7 bankruptcy in Rhode Island. After I file your case, the RI Bankruptcy Court assigns a case trustee to review the file.
The court then schedules a hearing date for the meeting of creditors (also called a 341 meeting). Your hearing will be about 30 days into the process and take place in Providence.
Your hearing will NOT be in a courtroom.
At the 341 meeting of creditors, the assigned trustee will review your 50 page bankruptcy petition. He will ask questions to make sure your petition is complete and truthful.
Because 6 hearings are scheduled every 30 minutes, your hearing should move along quickly. No need to worry. We will review any potential issues prior to your hearing so you’ll feel comfortable and prepared. When your hearing ends, we wait about 60 days before the dischargeable debts are wiped out.
But what happens before we file your case? Does it take a long time to prepare? This largely depends on you. Because every case is unique, there may be several good reasons to not file your case immediately. Here are just a few:
- It takes time to gather records: tax returns for past 2 years, pay records over prior 6 months, recent account statements/ bank records.
- Legal issues: time may be needed to research special circumstances.
- Recent Purchases: time is needed to let cards “cool down” after big purchases or cash advances.
- Unusual income: If you have a spike in income, the mean’s test may require us to wait for your average monthly income to lower.
- Bankruptcy costs: The court requires these costs to be paid in full before I am permitted to file your case.
It is possible to file a case in as little as 24 hours, but it is not typical or recommend-ed. A lot of work must be done in order to complete a quality 50 page bankruptcy petition and I never want to file a case that has not been triple-checked. I want your case to be bullet-proof.
My goal is to get it right the first time and not be rescheduled for a second hearing. This has been my experience in filing almost 3,000 cases in Rhode Island.
If bankruptcy is something you would like to learn more about, give me a call. I will take the time to explain all of your options and help you each step of the way.
Posted on Saturday, September 5th, 2009
Are you drowning in debt? Do you rely on credit cards for daily living expenses? Are you wondering whether bankruptcy can help? If so, I offer a 30 minute phone consultation to Rhode Island and Massachusetts residents who want to explore options. Ask me any question you want because there is no charge for the telephone consult.
After I understand your situation, we can decide if an appointment would be helpful to begin the debt-relief process. I will then need to review a number of important documents. Here are the top 10 documents you should have ready for our first meeting.
- Federal Income Tax returns for the past two years;
- Bank account statements (personal and business) for the past year;
- Pay advice statements (pay-stubs) for the past six (6) months, including spouse;
- All bills, invoices, credit card statements, loan statements, mortgage statements for which you are personally liable, including business debts where you have signed a personal guaranty;
- All collection letters, copies of lawsuits, complaints, attorney notices, etc for all debts;
- Recent credit report if you have one, otherwise I will order one for you;
- If you own real estate - copy of deeds, and any mortgages, liens, etc.
- If divorced, a copy of the divorce decree, any order regarding property settlements within the past three (3) years, and alimony or child support orders in effect or amendments thereto;
- A photo copy of your driver’s license;
- A photo copy of your social security card
Some documents may be difficult to gather in an emergency. If you are facing lawsuits, including wage attachment and foreclosure, time may be limited. Call me immediately at 467-6800 and we can concentrate on the documents most important to your case.
|
|
