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Self Help Debt Plans are Like Going to Jail

By
Leon Bayer
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Bankruptcy Advice for Your Friends

“Self Help Debt Plans”make you feel like you are going to jail and probably can’t help you.

Clark Howard is a “financial expert.”  He is a frequent TV show guest.  He has a “Five simple Steps debt plan”. Suze Orman has a Nine Step Plan. The Motley Fool has a 60-Second Guide for self help debt relief. Wiki How has a Nine step plan. I even found a site that debates whether Dave Ramsey’s Self Help Debt beats out Suze Orman’s self help debt plans. Not surprisingly, it says sometimes it does, and sometimes it doesn’t. Gee, that’s helpful, huh?

Self Help Debt PlansAll these Self Help Debt Plans have something seriously wrong with them. If you can’t pay your debts, these plans can’t work unless you have significant amounts of spendable income for debt payments. But if you ain’t got the money, you ain’t got the money. No money means no steps to debt freedom. (Don’t trip over your own feet while you attempt the get-out-of-debt dance routine.)

There’s another thing they have in common. These “Self Help Debt Plans” are just happy talk. Mere fodder for talk show babblers. That’s all it really is. You’ve seen them on the TV talk shows. The host, Oprah or whomever, introduces the “financial expert.” The guest expert quickly summarizes his or her latest “Self Help Debt Plans.” Oh yes, and his or her latest book. The TV host smiles, stands, and starts to clap. The audience sees a sign that says, “CLAP HANDS.” The expert’s time slot is over. The financial expert was there just for entertainment. It was just like showing the audience the latest viral cat video.

If  “Self Help Debt Plans” don’t work, what does work?

The majority of serious debt problems can be fixed. And, fixed legally.

Let’s look at it this way. When you don’t pay your debts,  you will probably wind up in court. The creditors will sue you. But it could also work the other way around. YOU could be taking your creditors to court. You can ask the court to eliminate your debts. The Federal Bankruptcy Court has the legally authorized power to do that. If you can’t pay your debts, you know the likelihood is that you are going to court, one way or the other.

So, take your pick. Would you like your creditors to take YOU to court and kick you around? Or would you rather be the one to take your creditors to court, and ask for the elimination of debts? The only court with the power to do that for you is the United States Bankruptcy Court.

Please, go talk to a bankruptcy lawyer. That is how you will get real help. The TV “experts” are not experts. They are entertainers.

 

 

How the wealthy use bankruptcy.

By
Leon Bayer
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High income earners

Let me give you an example of how the wealthy use bankruptcy:

Let’s say a corporation has assets worth $500,000. And it has debts of $1,000,000. This means the corporation is insolvant. The corporation balance sheet is negative by half a million dollars. If that corporation was your business, would you just walk away? Wealthy people often use bankruptcy to reorganize. A bankruptcy case might allow the corporation to  keep all it’s assets, and shed half of it’s debts. The corporation continues in business.

How the wealthy use bankruptcy

This was an oversimplification. But it gives you the basic idea. Bankruptcy builds wealth. Bankruptcy is a financial tool. That’s how the wealthy use bankruptcy. Take an insolvent business. Let’s say it is a hotel, or a casino, or office building. They restructure the debt and then rebuild cash flow. That creates new wealth out of the extra cash flow that no longer is needed to service old debt.

How the wealthy use bankruptcyYou don’t have to be wealthy to make bankruptcy work for you. If you are an individual who is always broke, bankruptcy can bring you huge benefits. Bankruptcy can let you turn a negative net worth in a positive net worth. Almost overnight.

Do you own a home with a 2nd mortgage? You know, those home equity lines, “80/20 loans”, and loans like that? If your property is underwater, bankruptcy may allow you to “lien strip” the 2nd mortgage off your property.

Are you somebody who just can’t seem to get ahead? Your debts total way more than the value of your assets? Living paycheck to paycheck? If you have worrisome bills that you can’t pay, consider bankruptcy. Most bankruptcy lawyers are willing to give you a free consultation. All of your creditors have lawyers to advise them. Maybe you should have the same benefit. You can easily find out your own legal rights.

A simple Chapter 7 bankruptcy case may eliminate debts like credit cards, personal loans, and medical bills. Most people who file Chapter 7 bankruptcy will get to keep all of their assets. The categories of assets you will get to keep are called exemptions.

“I am broke.” You don’t have to stay that way.

By
Leon Bayer
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Survival for Small Businesses

“I am broke.”

I’m sorry about that. But you can probably fix it.

If you are thinking about bankruptcy, you should also be thinking about hiring a bankruptcy lawyer.

Bankruptcy case is a valuable consumer tool. And, a bankruptcy case is nothing most people need to fear.

The good bankruptcy lawyers are not in this for the money.

We don’t do it for the money. You think a lawyer gets rich representing folks who are broke? If so, please, tell me how they do that. The fact is a lawyer does not make a mint doing bankruptcy work. I won’t deny that we make a comfortable living. But that comes from decades of putting in 12 to 14 hour work days. Often, six days a week. And, many years of difficult study and passing a bar exam.  (Roughly half of all bar takers fail to pass.)

Nobody we gets rich doing this. How can you, when your clients are broke? People who go into law to make money wind up doing divorces. Accidents. Corporate and entertainment law. They get jobs on Wall Street. The gold diggers are smart enough not to go into bankupcy law. And, that’s a good thing. Making a lot of money is the wrong reason to be a bankruptcy lawyer. Here’s why.

"I am broke." I'm sorry, let me see if I can help.Lawyers who practice bankruptcy law do so out of genuine passion. Not greed. Most of the people who come to us will be helped. Most people can successfully eliminate most, if not all their debts. Most people who file bankruptcy do not have anything taken away from them. Nobody will go poking thru your home and looking in your drawers and closets. Your job does not have to know. Your neighbors won’t know. You don’t have to tell anyone, unless you want to.

There is huge personal satisfaction that comes from helping people. The average client walks thru our door and say’s, “I am broke.” In a matter of minutes, we can usually free that person from the stress and worry over their debt problems.

A lawyer should not recommend bankruptcy unless you need it. Bankruptcy fees ought to reasonable. Lawyers obviously can’t charge people for money that they don’t have. Many of our cases are done based on “ability to pay.”

See a bankruptcy lawyer for advice. Have a free consultation. Maybe you can stop saying,  “I am broke.”

 

 

 

 

Bankruptcy Media Experts

By
Leon Bayer
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LOS ANGELES DODGERS BANKRUPTCY EXPERT

Reporters, do you want quotes or sound bites from a bankruptcy expert?

A pair of top bankruptcy media experts are Leon Bayer and Jeffrey Wishman of Bayer, Wishman & Leotta. They are both California State Bar Certified Bankruptcy Specialists. They have each practiced bankruptcy law in Los Angeles, California for more than 34 years. They have provided dozens of interviews in the media. They come armed with catchy, quotable sound bites. Plus, three decades each of bankruptcy courtroom experience. They can explain complex legal issues in the simple, easy to understand terms that you need for your media presentation.

Their bankruptcy media expertise covers print, TV, and radio. They are willing to be interviewed, or simply help you with background. Either way, they will quickly get you up to speed. A brief phone conversation with these bankruptcy lawyers will save you hours of research time.  They can be reached at telephone 213-629-8801.

50 Cent files for bankruptcy – “Chapter 11 is the drug of choice for celebrity debt problems,” said Leon Bayer.

 

 

bankruptcy media expert Jeffrey WishmanThe Dodger’s file bankruptcy–Fox News TV interview with Los Angeles bankruptcy lawyer Jeffrey Wishman

 

 

 

 Bankruptcy Media Experts

Partial list of other media references:

  1. “NOLO authors: Leon D. Bayer”. Retrieved July 5, 2013.

  2. Jump up^ “Authors: Leon Bayer”. Real Clear Markets. Retrieved July 8, 2013.

  3. Jump up^ Eric Gillin (January 10, 2002). “Events Conspire Against Bankruptcy Reform”. TheStreet.com. RetrievedJuly 5, 2013.

  4. Jump up^ Jeanne Sahadi (March 9, 2005). “Bracing for the bankruptcy bill”. CNN Money. Retrieved July 5, 2013.

  5. Jump up^ Ben Dover (June 2, 2002). “KFI Updates Sunday, June 2, 2002: anti-virus software, advice from bankruptcy attorney Leon Bayer, smart travel tips, rebate headaches and more…”. KFI. Retrieved July 5, 2013.

  6. Jump up^ Ben Dover (July 7, 2002). “KFI Updates Sunday July 7, 2002: Bens’ tips on annuities, SBC may owe you, tips on dealing with the IRS, automobile deals and more”. KFI. Retrieved July 5, 2013.

  7. Jump up^ Ben Dover (May 25, 2003). “KFI Updates Sunday, May 25, 2003: More Breaking News On The Counterfeit Drugs Front (This Is Information That Could Save Your Life!) Plus: How Your E-Mail Could Destroy You In A Courtroom And: The Next Time Your Doctor Or Dentist Tells You To Open Wide…They’re Talking About Your Wallet. (Here’s Why!)”. KFI. Retrieved July 5, 2013.

  8. Jump up^ Chuck Finney (October 25, 2012). “The basics of home foreclosures”. KALW. Retrieved July 5, 2013.

  9. Jump up^ “LOS ANGELES BANKRUPTCY ATTORNEY ON KALW RADIO: LISTEN NOW – CHAPTER 13 BANKRUPTCY, FICO SCORES AND STRIPPING LIENS FROM UNDERWATER PROPERTY (transcript)”. January 4, 2012. Retrieved July 5, 2013.

  10. Jump up^ Jason Fell (June 28, 2011). “What Small-Business Owners Can Learn from the Dodgers’ Financial Woes”.Entrepreneur Magazine. Retrieved July 5, 2013.

  11. Jump up^ Leon Bayer et al (2010). Trends in Consumer Bankruptcy Filings: Leading Lawyers on Understanding the Current Bankruptcy Landscape, Navigating the Filing Process, and Educating. Aspatore Books.

  12. Jump up^ “International Bankruptcy and Insolvency Law Titles”. Carswell. Retrieved July 5, 2013.

  13. Jump up^ “The New Bankruptcy: Will It Work for You?”. NOLO. May 2013. Retrieved July 5, 2013.

  14. Jump up^ Stephen Elias Attorney, Amy Loftsgordon, and Leon Bayer (2013). The Foreclosure Survival Guide: Keep Your House or Walk Away With Money in Your Pocket. NOLO.

  15. Jump up^ Leon Bayer and Jeffrey Wishman (2013). A Human Guide to Bankruptcy.

  16. Jump up^ Mark Anthony Martinez (2009). The Myth of the Free Market: The Role of the State in a Capitalist Economy. Kumarian Press. p. 39. Retrieved July 5, 2013.

  17. Jump up^ Leon Bayer (September 2, 2008). “Making Bankruptcy Worse”. Real Clear Markets. Retrieved July 8, 2013.

Debt settlements or file bankruptcy?

By
Leon Bayer
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0
debt settlements or file bankruptcy

A reader wants to know if he should do debt settlements or file bankruptcy.

 
Dear Leon,
Should I do debt settlements or file bankruptcy? I might even be able to borrow enough money from family to pay most of what I owe. I owe $40,000 in credit card debts, and I barely manage to pay the minimum due each month. But it’s killing me. I make $42,000 per year. I have no valuable assets. I am planning to get married soon. I don’t want my fiance to get burned if I bring my debt burden into the marriage. My parents have offered to give me enough money to pay off half my debts. My fiancee’s parents have offered to loan me enough money to pay off the other half. They feel it is wrong to file bankruptcy. Please tell me what to do.
Sincerely,
Josh
 
Expert answers question: debt settlements or file bankruptcy?Dear Josh,
 
For the sake of this discussion, I am going to assume that you are eligible to file Chapter 7 bankruptcy should you should decide to do so. (To be more certain of what your options really are, you should get advice right away, in person, from a lawyer who specializes in bankruptcy law.) Let’s analyze your alternatives:
 
Debt settlement: I see no chance of debt settlements unless you allow your accounts to go delinquent for about 3 to 6 months. The banks are not going to cut you a deal if the accounts are kept current.
 
But going delinquent will destroy your credit for years to come. Also, the amount owed will jump up due to late fees, default interest rates, and perhaps other fees the banks will impose. And, you will be out the money it takes to pay any settlements, (usually around 50% of the balance owed at the time of settlement.)
Your debt settlements will not affect your fiancee directly, but your bad credit may be a hindrance on plans that you and your fiancee have for the future. In sum, I do not like this alternative for a person in your situation.
 
Paying off the debt with gift money and borrowed money: Nothing has changed in the 500 years since William Shakespeare said, “Neither a lender nor a borrower be.” If your future in-laws loan half of what you need, you will be thrust into a debtor creditor relationship with them before you even say, “I do,” to their daughter.
You will also spend years beholden to your own parents for bailing you out. Owing your in laws just half of what you presently owe on credit cards will be only half the struggle you presently have. But, it will still be a struggle. Won’t it be fun asking “Dad” to pass the gravy next Thanksgiving when you still haven’t paid him back?
 
Bankruptcy option: It’s commendable to pay debts with your own money. It’s quite something else to pay it with other peoples money. If you had enough of your own hard earned money to pay off your own debts, I would encourage you to do so.
 
No offense meant, but I don’t give anyone a passing grade in my Sunday school morality class if they pay debts using other people’s money.
 
Bankruptcy is the option I would suggest if you were my own future son in law. I say that because you will not be solving your own problem under any other set of circumstances. All you would do under the other alternatives is shift your problems onto the shoulders of other people who are not responsible for your problem. I do not see that as an adult solution.
 
Additionally, if you take their money it is only for your own benefit. It will not directly benefit your fiancee.
 
After marriage, the families could have used that money to help you and your wife buy your first home, pay for grad school, or perhaps help you in other ways that will directly benefit the two of you. Don’t worry about the banks getting paid. Their greed for profits helped make this mess worse by loaning you more money than you were able to repay.
 
Bankruptcy is a way out, but not necessarily an easy way out. If you go this route, you will have to work hard to rebuild. You may also have feelings of shame or embarrassment. But nobody is perfect. You’ll get over it.
 
Now then, please pass the gravy before my potatoes get cold. And remember this, “A happy wife is a happy life.”
 

If you were given the choice, would you do debt settlements or file bankruptcy?

It’s a tough choice. There is no absolute answer that is right for everyone.

One more thing. Here is what the Federal government says about going to debt settlement companies:

Warning: Dealing with debt settlement companies can be risky. Some debt settlement companies promise more than they can deliver. Some of your creditors may also refuse to work with the debt settlement company you choose. In many cases, the debt settlement company will be unable to settle all of your debts.

Local bankruptcy expert has self help book

By
Leon Bayer
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Local bankruptcy expert

Local bankruptcy expert  Leon Bayer is co-author of a new self help bankruptcy book. The New Bankruptcy: Will It Work for You? [Paperback], Stephen Elias Attorney (Author), Leon Bayer (Author) published by NOLO. It is available through Amazon.com and from the NOLO bookstore. Leon is a partner in the Los Angeles bankruptcy law firm of Bayer, Wishman & Leotta. This book is easy to understand. You call even call the book author to ask your bankruptcy questions at 800-477-3111.

Local bankruptcy expert authors self help book. Los Angeles Bankruptcy Attorney Explains the New Bankruptcy Law.

Los Angeles Bankruptcy AttorneyI am very excited about this book. The original author was Stephen Elias. The late Stephen Elias was a great master of this task. He knew how to explain complex laws in a simple way. Nolo asked me to help with the new, 5th edition. Stephen had just passed away. I wanted my own contributions to the 5th edition to stay faithful to Stephen. I have been a Los Angeles Bankruptcy Attorney for 34 years. My law firm is Bayer, Wishman and Leotta. My law partner Jeffrey Wishman and I have developed a unique tradition. We offer free consultations to everyone. Over more than 3 decades, we have practiced our passion for helping people. NOLO has the same passion. Their motto is, “Law for All.” They have forged a great tradition. They make the law accessable to everyone. I have been thrilled to be involved with them. NOLO has sold more than 250,000 copies of bankruptcy books.

Do you have a bankruptcy question? Are you thinking about personal bankruptcy? Worried about it’s implications? Worried about your future if you do file? You can reach out to us. We know how to help you. – LEON

Local bankruptcy expert shares 34 years of experience practicing law in Los Angeles, California.

Who needs this book? You do, if you are having debt worries. A complicated law is peeled away. We do it layer by layer. We explain it in simple language. It was written so that everyone can understand. Written by a local bankruptcy expert who understands the realities of what you are facing.

 

 

 

Los Angeles Bankruptcy Blog. Self Help

By
Leon Bayer
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0

los angeles bankruptcy blogThis is a Los Angeles Bankruptcy Blog.

We have more than 200 blog articles. These articles are written to help people with debt problems.

It’s not easy….writing 200+ bankruptcy articles.

 

But we do this because we are passionate about helping people. Jeff Wishman and Leon Bayer each have 33+ years of bankruptcy law practice. In these blog articles we hope to show you how easy it really is to overcome most debt problems.

People in debt face many problems. Naturally, there is embarrassment. The real problem is that your creditors will try to take money that you need for something else. Like money for rent and food. Money for a car payment so that you can get to work.

Things like that are your basic needs. The bankruptcy law protects your basic needs. The bankruptcy laws also do much more than that. The law is very generous in letting most people keep everything they own.

You do not have to be unemployed to qualify for bankruptcy You don’t have to be poor to qualify. But what you need more than anything is an experienced bankruptcy lawyer. The laws are generous, but also very complicated. Do yourself a big favor and get professional help.

Most bankruptcy lawyers do not charge for a consultation. There is no reason for you to stay in the dark about your debt relief options.

You might feel like you can’t afford a lawyer. Chances are, you can afford a lawyer. Most lawyers who handle bankruptcy cases do so for much less than what lawyers charge to do a divorce, DUI, and other common legal services.

The purpose of this blog is to help you see what is available to solve your problem. We have articles that cover everything you may need to know. Topics include handling bill collectors. How much to pay a bankruptcy lawyer. How to get a pricy, top tier bankruptcy lawyer for cheap. How to get new credit after bankruptcy. And, how to improve the credit you already have.

This blog, and a good bankruptcy lawyer, can help you start your financial life all over again.

Please explore the drop down topic menu. Dig in to our Los Angeles Bankruptcy Blog. Start by looking at what interests you most.

Good luck. And, we are here to help you.