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Clients’ Choice Award – I’d like to thank . . .

As a CERTIFIED FINANCIAL PLANNER™ and bankruptcy lawyer, I rescue clients from financial chaos. I solve debt problems caused by job loss, ill health, and other life-changing setbacks. For so many with too much debt and too little income, I help them push the RESTART button.

After examining spending patterns, budgets and monthly income, we consider all debt-relief options including payment plans, debt settlement, and bankruptcy.

A Chapter 7 bankruptcy is designed to protect property and give a financial fresh-start. My clients feel immediate relief after I file their case and debt collectors stop calling. 90 days later, the case ends and financial freedom begins.

Many are surprised to learn how Rhode Island and federal law can help protect most/all of their property. These “exemption” protections apply to cars, real estate, retirement assets, jewelry, etc. Most clients do not lose any property at all.

These same laws also help remove most unsecured debts like credit cards, payday loans, utility bills, personal loans, lines of credit, medical bills, car repossessions, mortgage foreclosures, etc. Sometimes, even income tax obligations can be discharged in bankruptcy.

I understand its not easy to ask for help, especially when it comes to money-matters. I get it. That’s why I designed my practice differently.

Anyone with a debt problem can call me, without any obligation, to get my advice. I’m pretty easy to talk to and would be happy to help you determine the best path out of your debt dilemma.

Hit the Avvo badge below where clients generously shared their experience in working with my firm.

PS: I don’t take these “awards” too seriously, but I’m always happy when clients appreciate the realized benefits of a financial do-over.

Here it is.

Pros and Cons to Consider Before a Providence Bankruptcy Filing

by Mark Buckley

Providence, Rhode Island — Providence River

When is a Providence bankruptcy filing the right choice for your debt problems? For each person, the answer is different.

Some debtors are so overwhelmed with credit card debt, it affects their health. Others experience strained family relationships, or difficulty concentrating at the workplace.

They feel as though they were treading water in the middle of a great ocean; sinking fast with no land in sight.

Although a Providence bankruptcy filing is not typically anyone’s first thought, the majority of clients make the bankruptcy decision after running out of options. They can’t improve their income, or cut their living expenses any further. There is no “extra money” to cover anything beyond the basics: shelter, food, transportation, medicine, etc.

Aggressive debt collection and lawsuits often force a debtor to calling a Providence bankruptcy lawyer. I have helped 100’s of clients with debt problems in the greater Providence area who were tired of the phone calls and legal threats.

Bankruptcy can really turn things around for someone who wants to improve their overall financial health. It worked for Walt Disney, H.J. Heinz, Milton Hershey and Henry Ford. Each allowed bankruptcy to solve their financial problems and each later achieved spectacular success.

As you determine the best path to deal with your debt situation, consider the following pros and cons to filing for bankruptcy relief.

Possible Disadvantages to filing bankruptcy

1 – You have to stop living on credit cards

Most people prefer to have a safety net when doing something dangerous. And life can be dangerous, or at least dangerously expensive. Ideally, 6-8 months of our fixed living expenses should sit in a bank account ready to act as our safety net. Without such savings, however, people often rely on costly credit cards as a substitute. As you would guess, all credit card accounts will be closed when you file bankruptcy; even accounts that have a zero balance.

2 – One bite at the apple . . . . At least for now

After a Providence bankruptcy filing, you would be unable to file another Chapter 7 bankruptcy case within 8 years of receiving a discharge. A second Chapter 13 bankruptcy case has special waiting periods as well. A qualified bankruptcy lawyer can explain important factors to help you determine if it is better to file bankruptcy now, or to wait.

3 – Who will find out about your bankruptcy

Your Chapter 7 bankruptcy filing will be on your credit report for as long as 10 years. It also becomes searchable in the federal court case register. Unless the searching party has special access to search these records, however, the general public won’t know you filed.

4 – Not all debts are dischargeable

The majority of consumer debts, if incurred in good faith, are dis-chargeable in a Providence Chapter 7 bankruptcy. These debt problems include medical bills, unsecured loans, credit cards, payday loans, car repossessions, and mortgage foreclosures. As a reminder, if you elect to keep your house and car, the creditor has a security interest in the property until the loans are paid in full. In other words, you will keep making these payments for as long as you wish to retain the house and car. Most student loans, child support, alimony, most taxes, and debts incurred in bad faith, car generally not dis-chargeable in bankruptcy.

Benefits of Filing for Bankruptcy

1 – You can protect your property from creditors

Rhode Island bankruptcy exemptions protect as much as $ 500,000 of equity in a house that is your primary residence. It also protects generous amounts of equity in cars, household goods and furnishings, retirement accounts, jewelry, etc. There is even a “wildcard” exemption that can be used to protect a certain amount of cash, money in the bank, income tax refunds and personal injury settlements. Because these exemption laws are so powerful, most people who file a Chapter 7 bankruptcy are able to keep 100% of their property.

2 – You may eliminate old income tax debts

Old income tax debts may be dis-chargeable in bankruptcy, if they were due more than 3 years ago, you filed your tax returns accurately and on time, and you meet a few additional requirements. Although a Providence bankruptcy filing may help with old income taxes, it does not discharge sales taxes, payroll taxes, or recent income taxes.

3 – Your Credit Score can recover fast

Your FICO credit score is based on several factors, including payment history, credit utilization rate, age of credit accounts and your debt to income ratio. Bankruptcy will help get you back on your feet fast because it will close out the damaged accounts and stop the downward spiral of late payments and defaults. After you receive your bankruptcy discharge, positive steps to rebuilding your credit can help you obtain a 720 FICO score in as little as 12-18 months. While I don’t encourage taking on new debt too fast, I have seen clients get approved for a new credit card within 3 months, a car loan in 6 months, and a mortgage in 2 ½ years.

4 – You receive an honest “fresh start”

When your financial picture looks like it was drawn on an Etch a Sketch, you would do anything to get a fresh start, or a do-over. A Providence bankruptcy can do just that. You can actually wake up from the financial nightmare and begin to chart a new course. You can start focusing again on the future and develop financial goals for your kid’s education, buying a home, or saving for retirement. But first, you should set up a savings plan to build an important safety net in order to avoid future debt problems.

5 – You can stop harassing debt collectors, lawsuits, and wage garnishments

Not all debt collectors are bad. Some follow the law, while others simply don’t. The ones who violate the Fair Debt Collection Practices Act, will harass you at work and home until you reach your breaking point. Here is some good news. The instant you file your Chapter 7 bankruptcy petition, all collection activity stops. Everything gets real quiet.

If you have been struggling with debt for years and it is not getting any better, now may be the time to consider a Providence bankruptcy filing. Read reviews from clients who trusted Attorney Mark Buckley, a CFP® professional, to solve their debt problems and call 467-6800 for a free bankruptcy consultation. Serving clients in Providence, Pawtucket, and Warwick.

Advantages/Disadvantages: Filing Chapter 7 for Your Warwick Bankruptcy

by Mark Buckley

For Warwick consumers struggling with heavy debt, filing for bankruptcy relief is an option when there is not enough money to pay all of your bills. Job loss, illness, divorce, or loss of overtime are the typical reasons for financial chaos. Typically, income has dropped, expenses have increased, or a combination of both. If you don’t earn enough money to pay your creditors, a Chapter 7 bankruptcy may be the best chance for your debt-relief. Here are several advantages and disadvantages to consider.

Advantage: You may become debt-free in only a few months

Typically, your Warwick bankruptcy takes three months to complete. A Chapter 13 bankruptcy, however, is typically a 5-year process. The power of filing a Chapter 7 bankruptcy, therefore, is getting immediate debt-relief and not wasting years with a crippling payment plan. The quicker you file a Chapter 7 bankruptcy, the more money you save, and the faster you can rebuild a better financial future. A successful Chapter 7 bankruptcy should destroy most of your unsecured debt. Debts like credit cards, medical bills, utility bills, car repossessions, mortgage foreclosures, payday loans, and personal loans.

Disadvantage: Filing bankruptcy may lower your FICO credit score

You credit score is based on several factors, like your debt to income ratio, credit usage rate, payment history, etc. If you are 100% current on all credit accounts, it is true that filing bankruptcy could reduce your credit score. Most people who are in financial trouble, however, are already maxed out on credit and have missed payments. In other words, their credit score was already damaged before calling their Warwick bankruptcy lawyer. The good news is that bankruptcy can help you salvage what is left of your credit and begin the process of rebuilding your FICO score. I even enroll my bankruptcy clients in a powerful credit rebuilding program. Most have seen their credit scores reach 720 in as little as 12-18 months after the bankruptcy discharge is issued.

Advantage: Rhode Island and Federal bankruptcy exemptions help protect your property

If you have lived in Rhode Island for at least 2 full years, you can use RI bankruptcy exemptions to protect most, if not all of your assets. Most Warwick bankruptcy filers, however, can choose Federal bankruptcy exemptions instead of state exemptions. Under RI law, a homeowner can protect up to $ 500,000 in equity so long as she has owned the property for 40 months. Under Federal law, $23,675 of equity in your home can be protected, or $ 47,350 if the property is co-owned with a spouse who is jointly filing. There are also exemptions for protecting vehicles, household goods, jewelry, retirement accounts, etc. There is even a potential “wildcard” exemption to help protect additional assets, like cash, collectibles, or bank accounts. While every case is different, the clear majority of Warwick bankruptcy cases filed do not involve surrendering any property. A good bankruptcy lawyer can let you know, prior to filing, if there is any property at risk.

Disadvantage: Your open credit card accounts will be shut down

Because your bankruptcy filing will be on your credit report, all creditors will proactively close your credit accounts. Even if you have a small balance and are current, it will be closed once your Warwick bankruptcy case is filed. You are not allowed to keep certain credit accounts off of your list of creditors in the bankruptcy petition. The positive news, however, is that those who wish to rebuild their credit typically receive credit offers within 6 months’ after bankruptcy. I’ve had clients buying cars within one year and houses within 3 years of filing.

Advantage: A Chapter 7 bankruptcy will stop all debt collection activity immediately

The moment I file your bankruptcy petition, all debt collection calls, letters and lawsuits will stop. No more stressful and harassing phone calls throughout the day. No more calls to your house, your employer, your neighbors, or your relatives. A bankruptcy filing will even stop a foreclosure or credit card lawsuit. Bottom line, bankruptcy is designed to help get your financial house back under control and to provide a start fresh.

There are pros and cons for each person considering bankruptcy. To determine if a Chapter 7 bankruptcy is right for you, contact a reputable bankruptcy attorney and ask about all debt-relief options. Start by gathering basic financial documents, like pay stubs, tax returns, and credit reports and call for a free consultation.

To find out more about the pro and cons of bankruptcy from Attorney Mark Buckley, call 401 467-6800 now for a free bankruptcy consultation. Serving clients in Warwick and all communities throughout Rhode Island.

Debt Settlement Lawyer

by Mark Buckley

Debt settlement can be the right solution in certain situations. Its a matter of knowing when its appropriate and how to do it effectively.

I’m not talking about the typical debt-relief advertisements you hear on radio and television. You know the ones. They instruct you to stop paying your bills and send them your money instead. Usually to some address outside of Rhode Island.

After starving your creditors for 6+ months, the theory is that there should be a pool of money big enough to offer settlements to your desperate creditors.

These programs usually fail because they are not a good fit for most people drowning in debt. If you owe a lot of money and are dealing with too many creditors, it isn’t likely that everyone will agree to negotiate.

Will you be satisfied if you can only settle some of your accounts, while the remaining debt is unpayable? You might create a tax liability on the forgiven debt, and a possible lawsuit on the unpaid debt.

To make matters worse, debt settlement companies are paid-in-full long before you realize its a losing battle. You could waste thousands of dollars and be left with a problem that still requires filing bankruptcy.

So when does debt settlement make sense? Answer: When you have a pile of money, under your own control, that can be used to offer lump sum settlements.

Effective debt settlement works best when you have cash in hand and can afford to pay income tax on the amount of debt forgiven. Money talks.

A few times each year, I encounter such a person. Someone who has immediate access to money, but wants to pay as little as possible to settle old credit accounts. If this describes you, I can help.

I had a client who owed $ 60,000 in old debt and now could afford to pay the debt in full. Wanting to avoid the interest and penalties that accumulated over many years, he asked me to contact each creditor and settle for the smallest amount possible. I negotiated settlement for less than $ 8,000 and he was more than happy to pay the income tax owed.

If bankruptcy is avoidable, and you have the money to make it work, a debt settlement may be an option to consider.

As your debt settlement lawyer, I can be the go-between to negotiate a low settlement. I can explain that unless we receive a good offer, the creditor will likely get nothing in a bankruptcy.

Debt Settlement Companies: Unbelievable

by Mark Buckley

Debt settlement company advertisements are everywhere. They sound appealing: who wouldn’t want to settle their debt for pennies on the dollar? Most everyone would rather erase their debts without having to file for bankruptcy—but do debt settlement companies promise more than they can deliver?

It’s important to understand that most of the advertisements are dramatized and do not represent typical results. The smiling characters on the TV screen are usually not actual clients sharing personal experiences, but actors voicing what may be “possible”.

Sending a monthly check to a far away debt settlement company usually does not end well. One of the first signs of trouble is that the company in question does not have a local office.

If you truly need help budgeting or drafting a repayment program, you would do well to work with a legal/financial adviser from your own community. In fact, calling a reputable local bankruptcy lawyer should be your first step in making sense of your debt-relief options. Even if your situation does not require a bankruptcy solution, a good bankruptcy lawyer can explain non-bankruptcy options and make sure you don’t become a victim of a debt settlement scam.

Also, be sure to never sign a contract or start any debt repayment program until you have had it thoroughly examined by a qualified bankruptcy lawyer. Too many people have thrown away valuable time and money on unworkable debt repayment plans. Even those who may be successful in settling a debt, need to be prepared to pay income tax to the IRS on the amount of debt forgiven. A 1099-Misc income form will likely be sent to you before your next tax filing.

If you are struggling with excessive unsecured debt, it is important to understand how a Chapter 7 bankruptcy may help. It is the most common form of consumer bankruptcy and only takes 90 days to complete.

For each case filed, the Rhode Island Bankruptcy Court assigns a trustee and schedules a meeting of creditors. This private meeting occurs thirty days into the process and does not take place in a courtroom. At the creditor meeting, the debtor is asked a series of questions by the trustee in order to make sure the debtor’s petition is complete, accurate, and truthful. These question and answer sessions are quite short, and most trustees can conduct six or so of these meetings in a half-hour. After the meeting, sixty days remain before debts are wiped out.

Clients’ Choice Award – I’d like to thank . . .

Pros and Cons to Consider Before a Providence Bankruptcy Filing

Advantages/Disadvantages: Filing Chapter 7 for Your Warwick Bankruptcy

Debt Settlement Lawyer

Debt Settlement Companies: Unbelievable

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