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7 Ways to Get Student Loans Discharged

Many people believe that if they file for bankruptcy, all of their debts will vanish. That sounds like a pretty exciting prospect when you are still loaded down with tens of thousands of dollars in student loans! Unfortunately, it’s just not the truth. In most cases, student loans are actually excluded from a Chapter 7 bankruptcy filing – the type that involves a total discharge of unsecured debts.

Student loans can be included in a Chapter 13 filing, which restructures debt with a payment plan the filer can afford. Under Chapter 13 bankruptcy, all debts are combined, and a monthly payment is divided amongst the creditors. The payment plan lasts for a set time, after which the debts are discharged. Many people can pay less toward their student loans with a Chapter 13 debt restructuring.

7 ways to get student loans discharged

There are ways to get your student loans discharged, but it is very difficult. You will need to work with an experienced Phoenix bankruptcy lawyer to explore your options. Here are seven instances in which you might be able to get your loans discharged:

1. Undue Hardship

The only way to have student loans discharged through bankruptcy is to show that paying them poses an “undue hardship.” Proving this is extremely difficult, and these attempts are rarely successful. It is essential to work with a bankruptcy lawyer if you want to make this claim.

You will have to show that you have made good faith efforts to pay back the loan and that you would not be able to sustain a minimum standard of living if you kept paying on the loan. In addition, you must show that you will continue to suffer financial hardship for the foreseeable future. it can be very difficult to prove undue hardship, which is why working with a lawyer is essential. An experienced bankruptcy lawyer will know how to make the strongest case with the most likelihood of success – though that doesn’t guarantee results.

2. The School Closed

If a school for which you have been given a student loan closes you may be able to discharge your student loan

A lot more people are attending school online these days because it gives them the flexibility to work and pay for some of their living expenses or take care of their family. But a lot of online schools come and go because they are not proven through the test of time. You could enroll in a school, and it could close mid-semester or even shortly after you complete your program.

If a school for which you have been given a student loan closes – whether it’s an online school or not – you may be able to discharge your student loan. You must have been enrolled in the school within 120 days of its closing. That’s a very short window, so it’s unlikely that very many people will be able to discharge their loans under this rule.

3. School Fraud

A borrower defense discharge is available to students

A “borrower defense discharge” is available to students who can show that their schools defrauded them by using illegal or deceptive strategies to convince them to attend the school and to take out student loans. For example, the school may have made unrealistic promises about job or income prospects after graduation, or it may have lied about costs.

Getting a discharge under this rule will require working closely with an attorney and getting plenty of evidence to prove the deception or illegal activity. You will need correspondence with school officials, promotional materials, course catalogues, transcripts, and other items.

4. False Certification or Fraud

Schools should do their due diligence to certify you as eligible for student aid, but they don’t always get it right. If you did not meet the requirements for the student loan but the school certified you anyway (either intentionally or not), those student loans can be discharged. Another example of false certification would be if you were given loans to train in a program that you can’t get employment in – such as if you have a criminal record so can never become a preschool teacher or you have a physical handicap that would prevent you from becoming a massage therapist. Your school should not certify you for loans under such circumstances.

You may also qualify for a student loan discharge if the school signed your name on a promissory note or if someone else took out a loan on your behalf (identity theft).

5. Unpaid Refund

Unpaid refund debt

Sometimes, the school has to pay a refund on a student loan to the government or to the borrower. An example would be if the loan was for more than the tuition amount. The school can’t just pocket that money. It is supposed to pay back the balance.

If your school did decide to keep that extra, you may be able to have the amount reduced from what you owe. You won’t get a total discharge, but you will get a bit knocked off the top, which can still help.

6. Disability

If you have a disability you may be able to get a discharged on your student loan

You may get into a serious accident that leads to a permanent or total disability, making it difficult or even impossible for you to work. Whether you suffer this disability while you are in school or years later, you may be able to have your student loans discharged as a result. You must submit documents from the Department of Veterans Affairs, show that you are receiving Social Security Disability, or have a note from your doctor saying that you have been disabled for at least 60 months and will be for another 60.

Again, it is important that you work with an attorney to make this claim successfully.

7. Death

Hopefully, you won’t have to die to get debt relief. However, it may help with your estate planning to know that if you die, your family won’t be burdened with your student debt as it will be discharged. Similarly, if your spouse or someone else for whom you would be responsible for their debts dies, you can rest easy knowing that student loans won’t be added to the list.

Getting your student loans discharged isn’t easy, but there are some exceptions where it’s possible. At Phoenix Bankruptcy Lawyer we will explore all your options. Our experienced and skilled attorneys will explore all the legal options to help you get the debt relief you need so you can start taking back your finances. We can also help you file for bankruptcy in Phoenix to discharge or reduce some of your debts to free up more money to pay back what you owe. Call us in Arizona to learn more.

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Phoenix Bankruptcy Lawyer
668 N. 44th St., Ste 300
Phoenix, AZ 85008
Hours: Mon – Fri: 9am – 5pm
Phone: 480-263-1699
Email: [email protected]bankruptcyattorney.co
Website: http://phoenixbankruptcylawyer.co

3 Reasons Why You Should Not Have Credit Cards in 2017

It is 2017 right now, and now is always the best time to begin making your way out of debt. Phoenix Bankruptcy lawyers know that credit card debt is the most common reason Phoenix residents file for bankruptcy. What is the most common reason for credit card debt? Overspending. You may not think of yourself as someone who spends a lot of money, but maybe you need to rethink that. The only absolute necessities of life are food and shelter, almost everything else is negotiable. Here are some reasons to get rid of those credit cards in 2017.

3 reasons why you should not have credit cards in 2017

#1 The Goal of Credit Card Companies Is to Keep You in Debt!

Break Free From Credit Card Debt Are you aware that if you owe $5000 on a credit card it could take over 20 years to pay it off making the minimum payment? Meanwhile the credit card company is getting rich off the interest you pay them. Although they would never admit it, credit card companies really don’t like customers who pay their bill in full each month, thus denying them all that interest. And heaven forbid you are late on your payments, that will incur large late fees and can legally allow the credit card company to raise your interest rate much higher. It’s all in the fine print. Once you get behind and those fees begin to rack up it’s a fast, downward spiral of ever increasing debt.

#2 Stress Is Bad for You and Credit Card Debt Is Stressful!

credit card debt causes stressIf you find yourself feeling anxious about your debt all the time, and lose sleep at night because you are worrying about your debt, it may be time to find your way out. The first step toward debt free living is the hardest. You have to sincerely decide that you are willing to do whatever it takes to get out of debt. It won’t be fast and it won’t be easy, but it will be worth it to once again enjoy worry free days and peaceful nights. Since the credit card companies want to keep you in debt, the only way out is to stop using them. Just cut them up. That may sound harsh, but if you are in credit card debt, you have been spending more money than you have been bringing in.

#3 Devise a Plan

pay credit debt offPerhaps you have been living beyond your means, or perhaps it’s due to circumstances beyond your control, such as medical bills. It boils down to the same problem, more money is going out than is coming in. So, the next step is to either to spend less or earn more. If you can find a way to do both, you can become debt free even more quickly.

Remember, no one said it would be fast or easy. Begin by making a budget. There are numerous programs and apps available to help you. Look for any unnecessary expenses that can be cut in order to allow you to allocate those funds toward debt repayment. Remember, just making the minimum payment each month can keep you in debt the rest of your life.

Methods to Pay Your Credit Cards

Maybe you will have to continue wearing last year’s wardrobe. Maybe you’ll have to brew your morning java at home brown, maybe you will need to brown bag it for lunch. Perhaps your kids can also switch to brown bag lunches. Keep in mind, cell phones, cable TV and Internet are also expendable luxuries, not necessities.

What if your budget is already cut back to the bare bones? Then you will need to find a way to earn more money. If getting a second job isn’t an option, be creative. There are probably people in your neighborhood who would pay you to watch their children when they go out for date night. There are also people who will pay you to do their shopping or walk their dog. In addition, there are online jobs that allow flexible hours. Just remember, every extra dollar needs to go toward paying down credit card debt.

Free Consultations With Our Phoenix Bankruptcy Lawyers | My AZ Lawyers

There are two ways on paying down credit card debt. One is to choose the card with the smallest balance to apply every extra penny to until it is paid off. When that happens, allow yourself a small celebration and then move on to using the money that used to pay that credit card to pay off the one with the next smallest balance. This is known as the snowball method.

Some people prefer to begin with the credit card that has the highest interest rate. If it is significantly higher than your others that may be the way to go. The problem many people run into is that if it’s a large sum of money you are trying to pay off, it’s easy to lose momentum when it takes so long to get there. That’s why many experts advise using the snowball method.
Unfortunately, for many Phoenix, Arizona residents these steps just aren’t feasible. Perhaps you have lost your job, or even your ability to work. You may have incurred catastrophic medical expenses. If you feel there is no way out for you, contact the law offices of My AZ Lawyers for a free consultation.

Be Debt Free

The experienced bankruptcy lawyers at My AZ Lawyers can advise you on the best course of action for your specific circumstances. Our Phoenix Bankruptcy Lawyers can guide you through the process and advise you on whether it would be best to file for bankruptcy under Chapter 7 or to simply reorganize your debts in a chapter 13 bankruptcy.

Contact our Phoenix Bankruptcy Lawyers, we can help you obtain debt relief and quickly put a stop to those threatening phone calls. It’s a good feeling to start over with a fresh slate and begin rebuilding your credit score.

Published By:
My AZ Lawyers

Mesa Location:
1731 West Baseline Rd., Suite #100
Mesa, AZ 85202
Office: (480) 448-9800

Glendale Location:
20325 N 51st Avenue Suite #134, Building 5
Glendale, AZ 85308
Office: (602) 509-0955

Tucson Location:
2 East Congress St., Suite #900-6A
Tucson, AZ 85701
Office: (520) 441-1450

Avondale Location:
12725 W. Indian School Rd., Ste E, #101
Avondale, AZ 85392
Office: (623) 499-4222

THINKING ABOUT FILING FOR BANKRUPTCY? HERE ARE 5 THINGS NOT TO DO!

Bankruptcy is the legal process that happens when a person, or organization, doesn’t have the money to clear all their debts. People that file for bankruptcy do it when they are in a demanding financial condition that can be caused by high debts like medical bills, a divorce or even loss of a job or incarceration. Imagine your bills stacking up and not having enough cash to clear all of them, besides being in an awful situation, you would have to seek a bankruptcy lawyer in Phoenix to get more information about whether bankruptcy is a good option for helping to regain your financial footing.

thinking about filing for bankruptcy here are 5 things not to do

A bankruptcy lawyer will help you through the process and provide advice to save the assets you want to keep and to release the debts you don’t in a Phoenix Chapter 7 filing or even organize them in a way to end up with the most benefits with a Phoenix Chapter 13 filing. In Arizona, My AZ Lawyers has the training and experience required to advise you in everything you need for your specific situation. Each member of our team has the necessary knowledge to help you achieve debt relief. There are a few things you have to avoid doing in order to have a smooth bankruptcy filing.

STOP USING YOUR CREDIT CARDS IMMEDIATELY

The first thing you have to do after you file for bankruptcy is to never use your credit card for any reason. If you want to buy clothes, do some shopping, get electronics, things you want for yourself, basically anything, your only option is to use a debit card with money you already have. Otherwise, just the cash you have at hand. Having a credit card is like having the option to take a direct loan to the bank so using it will lead to direct damage at your bankruptcy case.

If you want to receive money, it should only come from sources of income like your job or freelance work. You should never deposit any check or amount of money that belongs to anybody, even accept them from friends and family that wants to help you. This will harm your case and your bankruptcy lawyer won’t be able to further assist you.

Best Phoenix Bankruptcy Attorneys | My AZ Lawyers

DON’T TRANSFER ANY MONEY OR PROPERTY THAT HAS YOUR NAME

General public frequently thinks that by transferring houses, vehicles, or money to other people, will save those assets from bankruptcy procedures, which is wrong. Even more, if you manage to do an asset transference to another person, it will be considered as fraudulent in court, so you have to be really careful with anything you do.

NEVER PAY ANY DEBT WHILE FILING FOR BANKRUPTCY

If you ever think that clearing at least one of your debts is going to help you in your bankruptcy case, it won’t do any good and your bankruptcy lawyer will also advise you not to do it because it will lead to a preferential transfer. For more information, you can give us a call to bring you a complete information about what this means.

what not to do when filing for bankruptcyYOU SHOULD STOP FILING LAWSUITS

As soon as you file for bankruptcy, every possession in your name, including payments awarded by lawsuits, will be transferred to the court that works on your bankruptcy case. In other words, you will not receive any settlement that has not been worked out. However, there are few exemptions that may let you have a percentage of the settlement’s amount. In some states, they can award you the total amount, but other states just give you a fraction of it, and finally some states will not have any kind of exemptions.

DON’T ACCEPT ANY FUTURE PAYMENT OF ANY KIND

Current funds in your possession, and all of the payments that you are waiting to receive in the future, will be part of your bankruptcy estate. Future payments includes tax refunds and also inheritances. Since you won’t have control of receiving this payments, be conscious that it will go straight to the court until your creditors are contented.

For more information about filing for bankruptcy, My AZ Lawyers in Arizona will help you whenever you need help. Don’t hesitate to give us a call if you have any doubt, our bankruptcy lawyers are more than happy to answer all the questions you have. We guarantee the best service at the most affordable prices.

Published By:
My AZ Lawyers

Mesa Location:
1731 West Baseline Rd., Suite #100
Mesa, AZ 85202
Office: (480) 448-9800

Glendale Location:
20325 N 51st Avenue Suite #134, Building 5
Glendale, AZ 85308
Office: (602) 509-0955

Tucson Location:
2 East Congress St., Suite #900-6A
Tucson, AZ 85701
Office: (520) 441-1450

Avondale Location:
12725 W. Indian School Rd., Ste E, #101
Avondale, AZ 85392
Office: (623) 499-4222

Is Another Bankruptcy Filing Increase Coming?

is another bankruptcy filing increase coming

The 2005 change in the bankruptcy laws was supposed to slow down the rate at which people file for bankruptcy. It may have temporarily worked. BK filings climbed to all time highs in 2010 before starting to again decline. The 2005 change in the bankruptcy laws was supposed to slow down the rate at which people file for bankruptcy. It may have temporarily worked. BK filings climbed to all time highs in 2010 before starting to again decline.

Did we really think that simply changing the laws in 2005 would make all the bankruptcies go away? It didn’t, it made things a little better for a short period of time, however, the housing crisis in 2008-2010 drove numbers to all time highs.

There was an increase in filings just prior to the law changes in 2005 and things stayed pretty consistent until 2008 when the housing market crashed and the number of bankruptcy filings escalated. They continued on an upward path until 2010 and then started to slightly decrease every year.

When a person files for chapter 7 bankruptcy protection they are able again to file 8 years after their case is discharged. With so many filings in 2008 and 2009, there will be a lot of people eligible to file again in 2016 and 2017. This crop of freshly eligible
bankruptcy filers may mean that bankruptcy filing rates again could spike.

chapter 7 bankruptcy increaseFrom 2005- 2010 all states showed an increase in bankruptcy filings. Some experts believe some of the increase is due to a natural recovery as consumers and Phoenix Bankruptcy attorneys become accustomed to a recent overhaul of bankruptcy laws, the numbers indicate clear correlations to recession-weary regions. Arizona saw the fastest increase, a jump of 77% from the year before, followed by Wyoming (60%), Nevada (59%) and California (58%). While every state saw a rise in bankruptcies , Alaska (up only 12%), Nebraska (12%) and North Dakota (14%) performed best.

These hard hit states may be the first ones to see a second wave of filings. A second wave may be coming on the heels of all of the 2008 and 2009 filers becoming eligible to file for chapter 7 bankruptcy protection again. Only time will tell.

Published By:
My AZ Lawyers

Mesa Location:
1731 West Baseline Rd., Suite #100
Mesa, AZ 85202
Office: (480) 448-9800

Glendale Location:
20325 N 51st Avenue Suite #134, Building 5
Glendale, AZ 85308
Office: (602) 509-0955

Tucson Location:
2 East Congress St., Suite #900-6A
Tucson, AZ 85701
Office: (520) 441-1450

Avondale Location:
12725 W. Indian School Rd., Ste E, #101
Avondale, AZ 85392
Office: (623) 499-4222

negotiate down credit card debt

Ways to Negotiate Down your Credit Card Debt

Filing for bankruptcy in Phoenix is not something to take lightly. If you need to file for bankruptcy because of your credit card debt, finding a bankruptcy lawyer is the best way to go. Credit cards can be really helpful at times. But if you’re not careful, they could get you into serious trouble. You may think that you will be able to afford the payments you have racked up, but those unnecessary purchases can really come back to haunt you. Here are a few tips to negotiating down your credit card debt so that you don’t have to file for bankruptcy.

The first step to take is to determine how much you can pay on your credit card bill if you negotiate your payments. You should be realistic. Don’t go too low, or the card holders could laugh you out of the building. If you give them a realistic amount and compromise with the monthly payment, then you may just be able to reduce your debt depending on the circumstance. Being realistic is about the only way you will make it out with a lower payment or lower amount of debt. The goal is to ultimately lower the total amount that you have to pay.

When you call your credit holder, you need to ask to speak with the collections department. They are the ones who deal with matters like this, and they will be able to help you the most. Ask to go here first because this will save you a lot of time and energy from being transferred from person to person and getting none of your questions answered. This will keep you calm and courteous when you do reach the person you need to talk to. The last thing the both of you need is a rude and horrible interaction that fails to help either of you. The person you talk to has the power to help you, and if you’re rude and difficult to deal with, they will turn you down.

Another thing you need to do before you call is to research the options you have when you finally get someone on the line. If you’re drowning in debt, it will be a good thing to ask for a lower interest rate. In addition to this, you may want to ask for them to drop the late fees as well. Being in debt is difficult, especially if you don’t have the funds to make the payments. If they don’t want to drop the interest rate altogether, you could still ask for a lower one to make the amount you have to pay less. Interest can really add up in the long run, so arguing for a lower one could help you a lot. You could also offer a lump sum payment in exchange for the company to reduce the amount of principal that is due.

debit card debtAlso, you always want to keep in mind that the credit card holder wants to make money. That’s what they are in the business for. With interest, hidden fees, and other penalties, they make tons of money off other people, and they will try to do the same with you. If they don’t make money, the next thing they will try to do is not take a loss. They will do this at your expense, no matter how badly you are drowning in debt. Defaulting customers cost the creditors money, so they may compromise with you and get a portion of what’s owed to them instead of paying the collections agencies, implementing legal action, of having the debt discharged altogether when you file for bankruptcy. In addition to hurting you, it will also hurt the credit card holders. If you negotiate with the person you have called well enough, then you could reduce your debt a considerable amount and save yourself from horrible headaches in the future.

If you are in need of an Arizona Bankruptcy Lawyer, come to Phoenix Bankruptcy Lawyers, where we can help you determine what the best course of action is for you and your finances. We can help guide you in the right direction and help you make the best decisions possible for your finances. For more information about Arizona Bankruptcy attorneys, contact us today and we can help you get back on the right track!

Published By:
My AZ Lawyers

Mesa Location:
1731 West Baseline Rd., Suite #100
Mesa, AZ 85202
Office: (480) 448-9800

Glendale Location:
20325 N 51st Avenue Suite #134, Building 5
Glendale, AZ 85308
Office: (602) 509-0955

Tucson Location:
2 East Congress St., Suite #900-6A
Tucson, AZ 85701
Office: (520) 441-1450

Avondale Location:
12725 W. Indian School Rd., Ste E, #101
Avondale, AZ 85392
Office: (623) 499-4222

Guide To Student Loan Repayment Plans

The average student debt in our country is growing. Graduates in the class of 2014 had an average loan amount of just over $28,000, and they paid an average interest rate of 6 percent. The majority of college students borrow at least some amount of money to get through their education, and their debt rises if they attend a private or elite university.

Graduate students can borrow even more. The average doctor graduates with nearly $167,000 in debt, and the average lawyer graduates with at least $100,000 in debt (with the number getting closer to $200,000 for students attending the top schools).

Some people find that they are not able to keep up with their student loan payments after they graduate because their new salary is not proportional to their debt. They may have paid hundreds of thousands for a law or medical degree, but they may make a low five-figure salary right after graduation.

student loan repayment

Some struggle to pay back their student loans, and they may either put off paying other bills to have the money for the student loan or just decide to stop paying the loan altogether. Here are a few things that will increase the chance that students will actually repay their loans, according to data from the National Bureau of Economic Research:

Increased Parental Income

Most parents contribute to their children’s education if they have the resources to do so. The higher their income, the more likely they are to contribute and the less students will have to borrow to fund their education themselves. The NBER data found that for every $10,000 increase in a parent’s salary, students took out about $250 in loans. That’s not a lot, but it can add up, especially when you factor in interest.

Level of Education

Students who only get a two-year education are more likely to default on their student loans than those who attend a four-year institution, according to the NBER data. Also, students who attended for-profit colleges such as online programs were more likely to default than those who attended traditional programs.

Parent education also seemed to have an impact. Students with mothers who did not go to college were found to borrow more (only about $1,500) and to still owe more after 10 years of payments. The reason for owing more was not specified, but it could have to do with taking job opportunities that pay less or not being as financially fit due to poor education on the topic.

Amount Borrowed

It may come as no surprise that the more a student borrows, the less likely that person is to repay the loan. However, it may be surprising how even small increments can have a big impact. The NBER data showed that just a $1,000 increase in the overall debt amount led to a 0.4 percent increase that the student would not pay. Every $10,000 increase in a graduate’s salary reduced that risk. Therefore, if borrowers wanted to minimize their risk of default, they could analyze a student’s expected salary based on major or stated career goals and compare it to the loan amount.

Other Findings

Though it could not name a reason for the finding, the NBER also reported that 10 years after graduating college, black borrowers still owed 51 percent of their loan, while Hispanics owed 22 percent, Asians owed 24 percent, and whites owed 16 percent. Systemic discrimination in hiring practices could be at the root of this issue since blacks may be making less in those 10 years. However, salary information was not provided, and researchers did not look further into the issue.

Understanding these and other issues surrounding student loan debt can help educational institutions and lenders create policies that are better for graduates who have to back that debt and the lenders who want to get it back. Making changes will also help the educational institutions increase enrollment if students know that they aren’t going to be overwhelmed by debt when they graduate.

student loan bankruptcyIf you have already graduated with a mountain of student loan debt, there’s not much you can do about it now. Student debt cannot typically be discharged in a bankruptcy or included under a debt resettlement plan, but declaring bankruptcy and discharging your other debts can free up the money you need to pay your student loan on time and to save yourself penalties and excess interest.

Phoenix Bankruptcy Attorney can help you explore your options in Arizona. An experienced bankruptcy lawyer from our team will look at your financial situation and talk with you about your goals to make tailored recommendations for debt relief. You may be able to file Chapter 7 bankruptcy and discharge all your unsecured debts, such as credit card debts, or you may be able to file Chapter 13 bankruptcy to get a debt repayment plan. Call our firm today to talk with a Phoenix bankruptcy lawyer and learn more about how to proceed in Arizona.

Published By:
My AZ Lawyers

Mesa Location:
1731 West Baseline Rd., Suite #100
Mesa, AZ 85202
Office: (480) 448-9800

Glendale Location:
20325 N 51st Avenue Suite #134, Building 5
Glendale, AZ 85308
Office: (602) 509-0955

Tucson Location:
2 East Congress St., Suite #900-6A
Tucson, AZ 85701
Office: (520) 441-1450

Avondale Location:
12725 W. Indian School Rd., Ste E, #101
Avondale, AZ 85392
Office: (623) 499-4222

ted yodar bankruptcy fraud

Ted Yoder – Ex-CEO of Monarch Mortgage Arrested For Bankruptcy Fraud

On June 9th, 2016 the ex-CEO and president of Monarch Mortgage was indicted on charges that claim he hid over one million dollars in assets when he filed for bankruptcy in 2011 and 2012. After his arrest, Yoder was released on a five thousand dollar bond. His arraignment is scheduled for June 22nd.

In order to understand the story of Ted Yoder, it helps to know some key legal definitions.

What exactly is bankruptcy?

Filing for bankruptcy involves meeting with a lawyer, who compiles the debt you plan to file. If the debt is considered payable with your income, a lawyer will typically advise not filing for bankruptcy. If it is determined that you cannot pay the debt, the case goes to court and is approved. Once approved, essentially all of your debt is eliminated and you owe nothing. However, filing bankruptcy isn’t just a magical way to not owe any money. A bankruptcy will stay on your credit for about ten years and affect your ability to get loans, credit card, a home, a car, and virtually anything else that you need credit for.

Chapter 11 bankruptcy is a way to restructure debt in a company or for an individual while under the supervision of a court. Chapter 7 bankruptcy involved the liquidation of assets. Yoder filed for both chapters in 2011 and 2012.

What exactly is bankruptcy fraud?

Bankruptcy fraud is an inherently white-collar crime. There are four different types of bankruptcy fraud. The first type of bankruptcy fraud is the intentional concealing of assets to avoid having those assets taken. This is the most common type of bankruptcy fraud and accounts for nearly seventy percent of all bankruptcy fraud cases. The second type of bankruptcy fraud is intentionally filing false forms or incomplete forms. The third type of bankruptcy fraud is when debtors file multiple times with false information or by filing in various states or provinces. The final type of bankruptcy is the act of bribing a court-appointed trustee.

Bankruptcy fraud is typically done in an attempt to keep assets safe from forfeiture, or to effectively end any debts owed while maintaining wealth. Bankruptcy fraud is often committed by businessmen and executives, or by inherently wealthy people.

The details of Yoder’s shifty business

Authorities believe that Yoder has a partnership with someone from Virginia Beach to conceal around three hundred and forty thousand dollars from creditor. Yoder also continued to hide more of his assets on his own. The sought judgement is expected to be around $1,059,000.

Yoder filed for bankruptcy in 2011 after being met with several lawsuits from Bank of Hampton Road. The bank’s representatives claimed that they wanted some substantial loans paid back from a development partnership that Yoder approved.

When filing for bankruptcy, Yoder claimed he had nearly three million dollars in assets and four million dollars in liabilities. When that filing was dismissed, Yoder attempted to fill, this time for Chapter 7 bankruptcy instead of Chapter 11, in late 2012.

After working for Monarch, Yoder is accused of selling around 132,000 shares of stock for Sirius between the two bankruptcy filings, as well as wiring the profit of the sale to a friend. Yoder is accused of concealing that transaction or other assets that came into his possession after the first bankruptcy filing, which include federal and state tax refunds.

Upon his release, Yoder was ordered to surrender his passport and remove firearms from his home. Yoder was also ordered to stay in the state of Virginia and abstain from alcohol and drugs under the supervision of a parole officer.

The person that Yoder conspired with to hide his assets was named as Susan Gorby, who plead guilty to bankruptcy fraud and is awaiting sentencing.

The CEO of Monarch Bank and Financial Holdings, Inc., Brad Schwartz, had this to say: “Although Ted Yoder was the President and CEO of Monarch Mortgage from 2007-2011, he has not worked with the company since then. We have no further comment on the charges filed against him today, which are unrelated to his service with Monarch.”

Bankruptcy fraud is a popular crime.

Yoder isn’t the only hot shot that got caught committing bankruptcy fraud recently. Kent Lindemuth, a real estate developer from Topeka, Kansas, was arrested for one hundred and three counts of bankruptcy fraud earlier this year. Lindemuth filed for Chapter 11 bankruptcy in late November 2012 and claimed that his debt accumulated to nearly four million dollars. Lindmuth is accused of purchasing nearly a hundred firearms worth approximately eighty thousand dollars less than a year after he filed for bankruptcy. Lindmuth concealed these assets from creditors.

The punishment for bankruptcy fraud is very severe, as bankruptcy fraud and fraud of any kind are considered very serious offenses. The maximum penalty for a count of bankruptcy fraud is $250,000 and five years in a federal penitentiary.

While bankruptcy fraud is a crime favorite of the super wealthy, bankruptcy fraud can be committed completely by accident. Fraudulent errors can be avoided by doing any and all bankruptcy paperwork correctly. The best decision someone considering bankruptcy fraud could make is to consult with a Phoenix bankruptcy lawyer for advice on how to make sure you do not make very costly mistakes or omissions.bankruptcy fraud

I need to file for bankruptcy, where should I look for a bankruptcy lawyer?

Look no further than Phoenix Bankruptcy Lawyers. This lawfirm, featuring talented and experienced bankruptcy lawyers, will walk you through the process of bankruptcy and evaluate your debt. You should always try to find the best lawyer for any legal situation, especially bankruptcy. Bankruptcy fraud is an easy thing to do by accident and a good lawyer can help you to avoid makinging a mistake. A bankruptcy lawyer from Phoenix Bankruptcy Lawyers will provide you with quality legal service gained from experience and niche expertise in the area of bankruptcy financial law. Contact us today for more information!

Published By:
My AZ Lawyers

Mesa Location:
1731 West Baseline Rd., Suite #100
Mesa, AZ 85202
Office: (480) 448-9800

Glendale Location:
20325 N 51st Avenue Suite #134, Building 5
Glendale, AZ 85308
Office: (602) 509-0955

Tucson Location:
2 East Congress St., Suite #900-6A
Tucson, AZ 85701
Office: (520) 441-1450

Avondale Location:
12725 W. Indian School Rd., Ste E, #101
Avondale, AZ 85392
Office: (623) 499-4222

General Motors Could Be Facing Bankruptcy

Big news could be devastating for employees of General Motors Company’s production plant in Phoenix, Arizona. Just a few days ago, General Motors Company was met with the startling revelation that one of their key suppliers, Clark-Cutler-McDermott Company, filed for bankruptcy in Phoenix. A contract dispute, said General Motors Company, plus the company’s bankruptcy lawyer’s in Phoenix move to file for bankruptcy may force the automotive company to close nearly all of their United States assembly factories, including the plants in Phoenix.

General Motors, which is based in Detroit, Michigan, depends on Clark-Cutler-McDermott Company for over one hundred and seventy five different insulation and interior material parts for their vehicles. Should this company file for bankruptcy successfully, General Motors could lose parts that are used in almost every car they manufacture in the country.

general motors bankruptcy

Clark-Cutler-McDermott Company ceased production of parts for General Motors earlier in July and laid off all employees. Clark-Cutler-McDermott Company had laid off workers earlier this year until General Motors could receive a restraining order against the company, which was granted. Now, that order has expired and Clark-Cutler-McDermott Company may be shutting down for good.

Production for large companies such as General Motors is a very sensitive process. Should supplies cease to be produced for their cars for even a 24 hour period, all North American plants could be closed for good. This was also said in General Motors own court documents, which claimed, “A continued disruption in the supply of component parts will also cause a catastrophic disruption in the supply chain and the operations of countless GM suppliers, dealers, customers, and other stakeholders.”

Since vehicle brands do not have products and parts on hand in order to save production factory space and must rely on immediate deliveries, even the slightest issue with suppliers could be dangerous for vehicle brands. It is even more dangerous that General Motors Company relies solely on one single supplier. General Motors Company can’t work with another supplier company either, since no other companies produce the correct parts for General Motors vehicles.

An upcoming court hearing has been scheduled to deal with requests from both General Motors Company and Clark-Cutler-McDermott Company.

Understanding bankruptcy

Bankruptcy is a general term that refers to the federal court procedure of eliminating debt for a business or person. Bankruptcy is often filed when the amount of debt an entity has greatly outweighs their assets and income, making the debt nearly impossible to pay back. The entity in question must prove to a court of law that they are entitled to a bankruptcy. Should the bankruptcy hearing be successful, the entity’s debts, in full or partially, can be completely wiped away.

A bankruptcy lawyer is usually involved in the entity’s bankruptcy filing for several reasons. The biggest reason is that because all assets and incomes must be accounted for, it is extremely easy to make a mistake. Should you file for bankruptcy with fraudulent information, you could face serious fraud charges. A bankruptcy lawyer can help you go through your assets and accurately file for bankruptcy.
general motors could face bankruptcy
This is no simple magic wave of the wand, though. Filing for bankruptcy puts a stamp on your credit score that can remain there for ten years or more. The ability to get a credit score based loan for anything may be impossible because of your bankruptcy filing. Businesses usually dissolve and must be sold or closed down. This is why Clark-Cutler-McDermott Company’s file for bankruptcy could mean the end of General Motors Company. Should Clark-Cutler-McDermott Company cease production, General Motors Company will have no other means of manufacturing their vehicles with specific parts made by the supply company.

I want to file for bankruptcy, but I do not know if I should. Where can I find a bankruptcy lawyer in Phoenix, Arizona?

My AZ Lawyers, PLLC can help. Not only do we handle bankruptcy law, but we also have attorneys with niche expertise in criminal defense, divorce, and DUI cases. You should always look for a bankruptcy lawyer that has a good track record of successful bankruptcy cases. Not only that, but you should never handle your bankruptcy case alone. Small details can be missed and could mean big trouble for you in the future. Give My AZ Lawyers, PLLC a call today to learn more about how we can help you.

Published By:
My AZ Lawyers

Mesa Location:
1731 West Baseline Rd., Suite #100
Mesa, AZ 85202
Office: (480) 448-9800

Glendale Location:
20325 N 51st Avenue Suite #134, Building 5
Glendale, AZ 85308
Office: (602) 509-0955

Tucson Location:
2 East Congress St., Suite #900-6A
Tucson, AZ 85701
Office: (520) 441-1450

Avondale Location:
12725 W. Indian School Rd., Ste E, #101
Avondale, AZ 85392
Office: (623) 499-4222

Financial Budget Tips for After Your Phoenix Bankruptcy

Filing for bankruptcy can be a real wake up call. After finally get the debt relief that you need, you don’t want to waste the opportunity and find yourself in the same financial distress that caused you to file in the first place.

Creating a budget is the best way to create a healthy financial plan for moving forward and ensuring a more secure future. Your bankruptcy lawyer is likely to provide some tips while you are combing through your finances together, but here are a few other things you can do to create a strong budget and rebuilt your credit:

Financial Budget Tips for After Your Bankruptcy

Make a List of All Your Income and Expenses

Before you can make any decisions about your budget, you have to have a clear understanding of all your income and expenses. You must be completely honest when compiling this list, which means accounting for all those $5 lattes you buy on your way to work and the little indulgences you pick up at the mall on the weekend. You need to see where all your money is going.

You may need to gather your credit card and bank statements to track these expenses, as you are likely to be unaware of how much you are spending on these items.

Make Adjustments to Get the Right Ratios

Financial counselors recommend that no more than 70 percent of your income go toward living expenses, such as your rent or mortgage, utilities and groceries. You should pay 20 percent of your income to your creditors, such as your car payment and your credit cards, and you should put 10 percent toward savings and investments.

Once you’ve made a list of all your income and expenses, you’ll be able to easily determine what ratios you are currently spending. You may then need to make adjustments to get into those healthy ratios. If you are spending too much on living expenses, for example, you may need to move into a smaller home or an apartment with cheaper rent.

Since you’ve already filed for bankruptcy, your debts should be limited, so you should not have to worry about that ratio being too high.

Increase Your Income and Reduce Your Expenses

Your bankruptcy may have wiped out enough of your debts that you have no problem paying for your expenses with your current income. However, you may find that you still don’t make enough to take care of all your expenses.

You have two options: Either find a way to increase your income or cut some expenses. Cutting expenses is usually the easiest option for most people. You can move into a smaller home, trade your car in for a used model or sell it and take public transportation, cut cable and get movies from the library instead, and eat at home more often instead of eating out. Making small changes can add up fast.

To increase your income, you might talk with your boss about a raise, or you might consider getting a second job. If you have a hobby, you might think about doing it for extra money.

Use Software to Track Expenses

Budget software can help you make sure you stay on track after you have put your spending guidelines in place. Most budget software will automatically categorize your expenses so that you can see what percentage of your budget is going to things like living expenses, entertainment, and so on. If you start to tip the balance of your budget, the software will show you quickly.

The software will also limit the temptation to overspend. Even if you don’t overdo it in any one area of your budget, just knowing that you are going to have to track any expenses you make will keep you from spending.

Build an Emergency Fund

You never know what can happen. You can lose your job, become ill or become injured, losing your ability to bring in income and causing you to rack up thousands in medical debt. An emergency fund can help you deal with such situations and make it through without financial ruin.

Save enough to get you through at least six months without any income. Also be sure that you have the appropriate insurance to cover any illness or injury you may experience.

These budget tips are sound even if you haven’t filed for bankruptcy. By following these tips, you may be able to create the financial health to avoid bankruptcy altogether. If you do need to file for bankruptcy, we can help. An Arizona bankruptcy lawyer from our team can help you understand your options for debt relief so that you can get a fresh start. You may be able to discharged debts, or you may be able to get on a structured repayment plan that lowers your overall expenses. Call us today to talk to a Phoenix bankruptcy lawyer and learn more about your options.

Published By:
My AZ Lawyers

Mesa Location:
1731 West Baseline Rd., Suite #100
Mesa, AZ 85202
Office: (480) 448-9800

Glendale Location:
20325 N 51st Avenue Suite #134, Building 5
Glendale, AZ 85308
Office: (602) 509-0955

Tucson Location:
2 East Congress St., Suite #900-6A
Tucson, AZ 85701
Office: (520) 441-1450

Avondale Location:
12725 W. Indian School Rd., Ste E, #101
Avondale, AZ 85392
Office: (623) 499-4222

5 New Year Resolutions To Get Out of Debt

5 New Year Resolutions To Get Out of Debt

It’s a new year and so many of us in Mesa, Arizona and around the country have made resolutions for 2014. Lose weight. Get healthier. Exercise more. Quit smoking. Be a better father/mother/child and so forth. All of these are excellent resolutions and really something worth attaining. The trick of course is how to attain those this year and not just setting empty goals that don’t get met and “oh well, it’s another year, better luck next time.”

For millions of Americans, whether you live in Mesa, Arizona or Portland, Maine, another, very important goal is to get out of debt. This is a resolution that carries a lot of impact. Debt is crushing and can create extreme stress that individuals and families who live with debt know all too well.

Debt comes in many forms: mortgages, second mortgages, personal loans (such as to family and friends) car loans, department store debts, school loans, credit cards, medical bills and even tax debts to the IRS or to the state. Some debt is of course worse than other debt. A mortgage on a decent interest rate (say 4%) over thirty years, on a home you live in happily, is not a “bad debt”. A high interest adjustable rate mortgage debt however on a home in Mesa, Arizona that is worth far less than you paid for it and that you cannot even afford to cool all of, for example could be a very crushing debt for someone. Obviously high interest credit card loans are really stressful and “bad” for people. Even department store cards can get out of control with interest and late payment penalties.

For Mesa residents, we are lucky to live in a great community with many opportunities. We however, have also felt the terrible burden of the crashing real estate market and its devastating ripple effects all around us on our economy. The fact that we are now finally able to claw our way up out of this morass is a blessing but we realize there is plenty of damage to clean up along the way. Some of the ripple effects include people with more debt than is able to be managed. You can be stuck in the endless cycle of paying late fees, penalties and interest only and never get out of the debt mess.

Step One

One solution to start the process of straightening out the mess is to declare bankruptcy. Contrary to what some may think, bankruptcy does not mean you are shirking your responsibilities and not paying debts. It is a legal way of getting pressure off so you can start the process of sorting through the debt. Contacting a professional here in Mesa is a good place to start to find out about bankruptcy.

Step Two

Another key action to take to start getting out of debt is stop putting things on credit cards. You are already in the mess you are in. Stop it – don’t make it worse because the more it grows the harder it will be to dig out.

Step Three

Step three is to start carefully tracking purchases and eliminate any careless “accidental” spending. Going to the mall in Mesa or Phoenix? Consider first what you will be purchasing and write down what you need. Leave credit cards behind. Bring only the cash you need to spend and that’s it. Then keep track of your purchases and everything you got carefully.

Step Four

Step four is to review all of your past spending habits and find what the bad habits are and where money is being wasted. Do you clip coupons? Do you waste food? Are you going to more expensive supermarkets instead of discount markets where you can still get quality for less? Second from housing, food is a very large budget item for most families and can be the average family spends in excess of ten thousand dollars per year on food. Many families looking to save money reduce food costs easily without any sacrifice to healthy eating or yummy meals. In addition to groceries other costs come in the form of cable bills, cell phone bills, home alarm systems, cleaning services, eating out, entertainment costs and other loose cash expenditures. Bottom line – grab ahold of your budget and rein it in. NOW.

Finally, announce the plan to your family. Here in Mesa, there are many professional services to help with a bankruptcy. You and your spouse may or may not want to inform your children about a potential or completed bankruptcy and that’s fine. Keep that among yourselves and the professionals assisting you. But involve the whole family in making budget conscious decisions and you will be helping your children survive better in the long run.

Call (602)509-0955 for a FREE Bankruptcy Consultation NOW!!!

Serving Chapter 7, Chapter 11, and Chapter 13 clients in Phoenix and surrounding communities!

MY AZ LAWYERS, PLLC
PHOENIX BANKRUPTCY LAWYERS
LOCATIONS: Offices throughout the valley.
CONTACT US NOW:

Call (602) 509-0955 to set an appointment with one of our Phoenix Area Bankruptcy Lawyers.

OUR PHOENIX BANKRUPTCY LAWYERS ARE LOCATED IN PHOENIX, ARIZONA, AND SERVE BANKRUPTCY CLIENTS IN SCOTTSDALE, PHOENIX, GLENDALE, TEMPE, MESA, CHANDLER, PLEASANT VALLEY, AVONDALE, CASHION, EL MIRAGE, PEORIA, SUN CITY, SUN CITY WEST, TOLLESON, YOUNGTOWN, GILBERT, QUEEN CREEK, CASA GRANDE, SURPRISE, PRESCOTT, MARANA, TUCSON, FLAGSTAFF AS WELL AS PIMA, PINAL, AND MARICOPA COUNTY.

DISCLAIMER: THE INFORMATION YOU OBTAIN AT THIS ARIZONA BANKRUPTCY LAW WEB SITE IS NOT, NOR IS IT INTENDED TO BE, LEGAL ADVICE. YOU SHOULD CONSULT A PHOENIX LAWYER FOR ADVICE REGARDING YOUR INDIVIDUAL SITUATION. OUR ARIZONA BANKRUPTCY LAWYERS AND STAFF INVITE YOU TO contact our Arizona Bankruptcy Law Firm AND WELCOME YOUR CALLS, LETTERS, AND ELECTRONIC MAIL. CONTACTING US DOES NOT CREATE AN ATTORNEY-CLIENT RELATIONSHIP. PLEASE DO NOT SEND ANY CONFIDENTIAL INFORMATION TO US UNTIL SUCH TIME AS AN ATTORNEY-CLIENT RELATIONSHIP HAS BEEN ESTABLISHED.  THANK YOU FOR VISITING OUR PHOENIX DEBT RELIEF WEB SITE.