Archive for the ‘Stop Collections’ Category

The Milwaukee Journal/Sentinel reported today that

Judges cracking down on paid preparers who pocket fees, overcharge clients, wreck paperwork and have botched bankruptcies!  To read the remainder of the article please click here http://www.jsonline.com/watchdog/watchdogreports/bankruptcy-filings-botched-oe333mt-134731393.html

Can same-sex couples filing a
joint bankruptcy?   The U.S. Department of Justice announced on
July 6, 2011 that it will no longer oppose joint bankruptcies filed by same-sex
couples legally married in their state. This news comes close on the tails of
the recent court decision in Los Angeles where 20
of 24 judges signed an opinion allowing a same-sex couple to file a joint
petition for bankruptcy. That opinion declared that the federal Defense of Marriage Act (DOMA) was
unconstitutional. The U.S. Trustee in Bankruptcy has agrees that DOMA will not be
raised to protest joint filings by married same-sex couples.  One would assume that this rule would only be
applied in states where the marriages are recognized.  However, it has been noted that joint filings
are the rule in North Carolina so long as the couple is actually married.

USA Today recently published an article  explaining that Americans’ student loan debt, which totals approximately $850 billion, now exceeds outstanding credit card debt in the U.S., which totals approximately $828 billion.

Perhaps a more interesting element of this story has to do with the monthly repayment numbers borrowers are expected to pay. The USA Today article suggests that $30,000 of student loans, payable at 6.8% interest over ten years would amount to $350 per month.  At this level of debt, the average person would need to earn at least $42,000 per year.  Unfortunately, as bankruptcy attorneys we commonly see student loan debt in excess of $100,000, with monthly payments over $1,000.

From a bankruptcy perspective, student loan debt is not dischargeable except in cases of “undue hardship.” In the Eastern District of Wisconsin, the court uses a very strict three part test to determine whether student loans may be discharged. As the law stands today, debtors in the Eastern District of Wisconsin have not been successful in arguing for hardship discharge on the grounds that they cannot find a job that pays enough to support their student loan obligations.   

Debtor’s prison does not exist in Wisconsin. Plain and simple – our constitution states:

Imprisonment for debt. SECTION 16. No person shall be

imprisoned for debt arising out of or founded on a contract,expressed or implied.

This section only prohibits imprisonment for debt arising out of or founded upon

a contract. (This does not include support obligations)

If you are being threatened by a Creditor that they will throw you in jail for your
debt they are making empty threats!

Just be lucky that you do not live in Arkansas, Arizona, Florida, Indiana, and Illinois
and Minnesota as they are among the states where debtors have been locked up
according to The Wall Street Journal.

If you are being hassled, threatened or receiving numberous phone calls from creditors contact Miller & Miller to get the debt relief your deserve!

Reported in the USA TODAY, dated October 13, 2011, more
Americans are piling on debt and fewer are seeking counseling or bankruptcy in
order to get their finances back in order.
Poverty has increased, unemployment hovers around 9% and consumers have
accumulated close to $19. Billion in credit card debt during the second
quarter.  That is up 66% from the same
quarter in 2010!

The number of people who went to a credit counselor has
declines, fewer people are signing up for debt repayment plans and the number
of people seeking to file bankruptcy is down 10% for the first nine months of
the year.  This is according to the
American Bankruptcy Institute.

One factor people are not seeking bankruptcy is due to
cost.  At Miller and Miller our fees are
reasonable and we do offer payment plans.
If you are experiencing financial difficulties at this time please call
our office to set up a free initial consultation to see how you can get the
financial relief you need.