Bankruptcy and Security Clearances

An excellent blog post by San Diego Bankruptcy Attorney Michael G. Doan about how filing bankruptcy may or may not affect a military security clearance or your employment:

Click here for the Blog Post about Bankruptcy and Security Clearances

In our practice, we don’t see many folks that have military or civilian jobs that require security clearances, but we do have folks that are concerned that they could be fired from their private sector job for filing bankruptcy.  As this blog post points out, federal law does not allow private or government employers to fire you for filing bankruptcy.  Also, as the attorney quoted in the article points out, most employers will realize that once you have dealt with your financial trouble and gotten it behind you by filing bankruptcy, in their eyes, you are less of risk to embezzle funds.

New Form Aids Processing of Mortgage Applications, Makes Ordering Tax Transcripts Simpler…

….and gathering tax information for your bankruptcy attorney !

The IRS has simplified the process to get tax information for past years.

Click here for the IRS website for information and the form !

Foreclosures Spread to Middle Class- Newsweek

Newsweek:

“The foreclosure crisis may be coming to a middle-class neighborhood near you. As joblessness continues to rise and as a  person’s unemployment  lasts on average 6.5 months, roughly 3.4 million homes are expected to go into foreclosure by the end of 2009. That’s up from 1.2 million homes in 2007, according to  RealtyTrac, a subscription-based site that tracks foreclosures nationwide. “We’re not out of the woods yet,” says Rick Sharga, RealtyTrac’s senior vice president.

Sharga recently spoke to NEWSWEEK’s Nancy Cook about the various waves of the foreclosure crisis, the future of homeownership and why the Obama administration’s loan-modification program won’t stem this latest crop of foreclosures. Excerpts: “

click here for the full article

I will add a comment that more and more of  potential clients that come to see me to stop foreclosures with bankruptcy are middle class folks.

Thank goodness, the FTC is finally trying to crack down on the deception of freecreditreport.com (New York Times)

From the New York Times:

On television it’s hard to miss the wildly popular band of slackers singing ruefully from a shabby apartment or while waiting tables in pirate regalia. The ruined credit that led to their financial misfortune might have been sparkling if only they’d tracked their status on freecreditreport.com.

The Federal Trade Commission is not amused. It has long believed that the company that owns freecreditreport.com is deliberately diverting people from a government-mandated site where consumers can get free credit reports by law, and using the reports as a lure for a $14.95 monthly service that alerts subscribers to important changes in their credit status.

click here for full New York Times Story

click here for the FTC ad debunking the deception or watch below:

Staff Attorney for Chapter 13 Trustee Honored

Chuck Sydenstricker, staff attorney for Chapter 13 Trustee William Lawrence, Western District of Kentucky, was honored recently by the Legal Aid Society of Louisville, Kentucky as an Outstanding Volunteer for 2009.

The article below is an excerpt from “Bar Briefs”, the monthly publication of the Louisville Bar association:

“Chuck Sydenstricker, a bankruptcy attorney from Louisville, donates several hours each month to lead Legal Aid’s bankruptcy clinics.  A significant number of these clients come to the clinic as a result of insurmountable medical debt.  “Participating in the clinic has helped to reinforce a fact I already knew: that 99 percent of the people who need to file bankruptcy are not trying to ‘game’ the system,” Sydenstricker said.  ” Almost all of the folks I have seen have either lost a job, gotten sick, had a family member get sick, or something similar.”

Congratulations, Chuck, and kudos to you for the work you do for the community !

Help Find Missing Person Morgan Harrington

Visit www.findmorgan.com for a website about Morgan Harrington, a young person missing while attending a concert in Charlottesville, Virginia.

Things That Debt Collectors May Not Do

 A great article by Oklahoma Bankruptcy Attorney Dan Nunley on what creditors may or may not do !

As Mr. Nunley says, it is always best to contact an attorney before you rely on anything that a debt collector tells you, as it will almost always be misleading or, worse, an outright lie.  Get legal help from an attorney , not a debt collector.

What are avoidance powers in bankruptcy?

A great description of what types of transfers a debtor or trustee can avoid, or set aside, in bankruptcy court, by Jacksonville Bankruptcy Attorney Chip Parker:

Bankruptcy relief accomplishes three main goals: i) for the debtor, provides the necessary “breathing room” to propose a debt adjustment plan or reorganization plan; ii) for the debtor’s creditors, ensuring property of the estate (which includes wages earned post-petition) is distributed in accordance with priorities set forth under the Bankruptcy Code; and iii) preservation and maintenance of estate property.

Debt Settlement Companies: Misleading Ads

Kudos to Bankruptcy Attorney Craig Andresen on “calling out’ the shameless tactics of so-called “debt settlement companies” for their misleading advertising in his recent blog post .

I have folks come in every week to my office that have paid literally hundreds and thousands of dollars to these outfits, and receive no help on their debt whatsoever.  It is truly heartbreaking to see folks be lured into the deceptive trap that these companies set.

Before signing up with any company like this, always consult an attorney and review with the attorney any of the document the companies wants you to sign !

Bankruptcy and Family Law

Lexington Bankruptcy Attorney Gregory Adam Napier has a good post on his blog about the interaction between bankruptcy and family law/divorce law.  I recommend that all attorneys that practice family law, and know very little about bankruptcy law, read this article