With the prolonged economic recession, many people are burdened with debt. As lay-offs continue among big and small companies, people face an increased possibility of losing their jobs. Higher interest rates, salary cuts and job retrenchments exacerbate the debt problem. Filing for bankruptcy is usually the last resort in solving the debt crisis. But before taking that step, there may be other things you can do.
First, review all your expenses, not just the major fixed expenses like mortgage and lease payments but also the minor, incidental expenses like your morning cup of coffee, your massage sessions or pedicures. These may be small and irregular but when you add them up, they come up to quite a sizable amount of money.
Next do something about your credit card debts. The most obvious thing to do would be to spend less on credit and keep up with at least the minimum payments due each month. Also, most people have more than one card. Consider transferring part of your balance from the card with the higher interest rate to the other one with the lower interest rate.
Finally, do not hesitate to negotiate with your creditors for a lower interest rate or extended payment period, both of which would reduce your monthly expenses and ease your debt situation. Here’s a tip – when you mention that you are likely to file for bankruptcy, some creditors may be more willing to reduce their interest rates or give you more favorable terms because they would want to avoid having their debt discharged in bankruptcy.
Now assuming you have taken every step you possibly could to alleviate as much of your debt problem and still find yourself mired in insurmountable debt then it is time to consider filing for bankruptcy. The question then is when you should do so. Every person’s situation is different so it pays to consult a bankruptcy lawyer to decide when the best time would be.
For example, if you have charged a lot of expenses to your credit cards recently, it may not be a good time to file for bankruptcy just yet. This is because the bankruptcy trustee might decide that your recent credit card debts are exempt from discharge which means you have to pay them in full. The worst outcome is the bankruptcy trustee dismisses your case if you have racked up your credit card debts just so that they can be discharged by the bankruptcy. Likewise, if you expect your debts to pile up soon, it might not be the best time to file for bankruptcy.
You can discuss all this with an experienced bankruptcy lawyer who will help you save money and discharge as much of your debt as possible through bankruptcy. Call us at (813) 200 4133 for a free consultation on how bankruptcy can benefit you.
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Filed under Chapter 7 (Tampa) by on Dec 30th, 2011. Comment. 
Alabama Governor Robert Bentley is fighting to help Jefferson County avoid filing for potentially the biggest municipal bankruptcy in the country. At this point, the governor is determined to find a solution to the $3.4 billion debt problem that stems largely from a botched sewer contract. At the same time, local officials are set to resume deliberations on either a settlement with creditors or filing for bankruptcy.
Governor Bentley had met with the president pro tem of the state Senate, Del Marsh and the speaker of the House of Representatives, Mike Hubbard on the massive sewer debt owed by the county and other financial problems. Governor Bentley said, “All three of us are 100 percent committed to solving this issue in the Legislature. My administration and the legislative leadership stand ready to work with the rest of the state Legislature in a special session. This is a problem that can and must be solved for the good of both Jefferson County and the entire state.”
In a provisional agreement approved by commissioners in September, the county and JPMorgan Chase & Co have agreed to making $1.1 billion in concessions on the debt and implementing increases in sewer rates by as much as 8.2% for the first three years.
According to Commission President David Carrington, the agreement stipulates that JPMorgan Chase, which arranged most of the bonds, will take the biggest loss. In a briefing on November 7, Carrington told the press that the county and creditors are $140 million apart. Commissioners are continuing to deliberate over the final draft of the agreement and will decide whether to accept it, continue to negotiate it or file for Chapter 9 bankruptcy.
All 25 members of the county’s legislature have not been able to unanimously agree on steps to take to implement the provisional agreement, including the important matter of how to generate revenue for the county’s general fund.
In Jefferson County, members of a local delegation are able to block any law that applies to their jurisdictions on the basis of “local courtesy.” Generally, if the full Legislature acts on the financial crisis without local approval, it could result in an internecine political war, Jefferson County lawmakers have said.
If you are having financial problems individually or in business, consider filing for bankruptcy protection. Bankruptcy will protect you from your creditors until you have the chance to sort out your financial situation. It can be your ticket to financial freedom again. Call us at (813) 200 4133 for a free consultation. Bentley is fighting to help Jefferson County avoid filing for potentially the biggest municipal bankruptcy in the country. At this point, the governor is determined to find a solution to the $3.4 billion debt problem that stems largely from a botched sewer contract. At the same time, local officials are set to resume deliberations on either a settlement with creditors or filing for bankruptcy.
Governor Bentley had met with the president pro tem of the state Senate, Del Marsh and the speaker of the House of Representatives, Mike Hubbard on the massive sewer debt owed by the county and other financial problems. Governor Bentley said, “All three of us are 100 percent committed to solving this issue in the Legislature. My administration and the legislative leadership stand ready to work with the rest of the state Legislature in a special session. This is a problem that can and must be solved for the good of both Jefferson County and the entire state.”
In a provisional agreement approved by commissioners in September, the county and JPMorgan Chase & Co have agreed to making $1.1 billion in concessions on the debt and implementing increases in sewer rates by as much as 8.2% for the first three years.
According to Commission President David Carrington, the agreement stipulates that JPMorgan Chase, which arranged most of the bonds, will take the biggest loss. In a briefing on November 7, Carrington told the press that the county and creditors are $140 million apart. Commissioners are continuing to deliberate over the final draft of the agreement and will decide whether to accept it, continue to negotiate it or file for Chapter 9 bankruptcy.
All 25 members of the county’s legislature have not been able to unanimously agree on steps to take to implement the provisional agreement, including the important matter of how to generate revenue for the county’s general fund.
In Jefferson County, members of a local delegation are able to block any law that applies to their jurisdictions on the basis of “local courtesy.” Generally, if the full Legislature acts on the financial crisis without local approval, it could result in an internecine political war, Jefferson County lawmakers have said.
If you are having financial problems individually or in business, consider filing for bankruptcy protection. Bankruptcy will protect you from your creditors until you have the chance to sort out your financial situation. It can be your ticket to financial freedom again. Call us at (813) 200 4133 for a free consultation.
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Filed under Chapter 7 (Tampa) by on Nov 10th, 2011. Comment.
The impending bankruptcy of Alabama’s largest county, Jefferson County has prompted Governor Robert Bentley to intervene. Recently, Governor Bentley pledged to try to do “everything possible” to help Jefferson County avoid bankruptcy by reaching a settlement with creditors over the $3.2 billion sewer debt the county owes.
Although Bentley earlier said that bankruptcy was an option for resolving Jefferson County’s sewer debt problem, he has since changed his view of how serious a bankruptcy by Jefferson County could be. Besides Governor Bentley, Attorney General Luther Strange has also stepped in to help.
At first, Bentley met with County Commission President David Carrington and Commissioner Jimmie Stephens to discuss the matter. Subsequently, Strange met with commissioners at a downtown Birmingham law firm. As a result, Carrington recently announced a 30-day “standstill period” for county officials to discuss a potential settlement with creditors.
Bentley said, “Our goal is to do everything possible from a state standpoint to try to help Jefferson County avoid bankruptcy. We may not be able to reach that goal, but that is our goal.”
At the same time, the governor confirmed that the state is not contributing any money toward a sewer-debt settlement. County commissioners said they are prepared to vote for bankruptcy if progress is not made with creditors over the next 30 days.
State Finance Director David Perry, who acts on behalf of the governor in talks, said, “We will not do anything that is not in the best interests of both the state of Alabama and Jefferson County. Ultimately, this is an issue for the Jefferson County Commission to decide. But a bankruptcy filing by Jefferson County has statewide implications. That’s why the governor is actively involved in trying to help the parties reach a solution that does not involve bankruptcy.”
Bentley said a settlement could involve holders of the county’s sewer debt getting less than 100 cents on the dollar back from their debt holdings. Also, Bentley and Perry said the state might offer a way to enhance the credit-worthiness of the county’s sewer bonds.
Credit enhancements can come in a number of forms including letters of credit, lines of credit, revolving credit or bond insurance. Another part of the resolution may be the creation of an independent public corporation that would own and/or operate what is now Jefferson County’s sewer system. The resolution would probably also entail passing new legislation.
One thing that the state government is not going to do to repay the debt is raise taxes. “We’re not interested in raising state taxes to solve this, and we’re not interested in raising local taxes to solve this issue,” Perry said.
Bentley is aware that bankruptcy by Jefferson County would hurt the state’s image and the credit ratings of the state and of cities and other counties also, which in turn would increase their costs of borrowing money for schools, roads or other needs.
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Filed under Chapter 7 (Tampa) by on Jun 30th, 2011. Comment.
In what seems like the only way out of a catch 22 situation, Greece has to borrow money from the International Monetary Fund (IMF) and its fellow EU countries to avoid national bankruptcy. The country is two weeks away from defaulting on €8.5 billion worth of bonds maturing May 19 for which it does not have the money to pay.
During a heated debate in parliament, Greek Prime Minister George Papandreou said the government has to avail itself to the €110 billion three-year package comprising of loans from other eurozone countries and the IMF. But the package comes at a price. The government must agree to severe austerity measures over the three year period. These measures include slashing salaries, pensions and increasing taxes. The government was trying to rush through legislation in parliament to authorize the austerity measures.
The loan package is also aimed at preventing the debt problem from spilling over to other European countries with vulnerable economies such as Portugal and Spain. Portugal and Spain has had their debt ratings downgraded which contributed to the depreciation of the value of the Euro from as high as $1.51 to below $1.28.
The austerity measures have sparked outrage among the Greeks, with approximately 100,000 people spilling into the streets last Wednesday, torching buildings, destroying public property, smashing windows and fighting with police. Three bank employees – a man and two women, one of whom was pregnant – died when they were trapped inside their building set ablaze by rioters. Another four people were rescued by fire fighters using a crane from the balcony of the bank. The deaths were the first protest-linked ones in more than 20 years and have shocked the nation in which protests are common but rarely result in fatalities. A makeshift shrine with flowers and candles was set up in a charred window of the Marfin Bank, the scene of the deaths.
41 policemen and 15 civilians were injured in the riots, while 25 people were arrested. When the journalist union canceled their participation in the protests, newspapers were rushed through the press on Wednesday just in time to report on the riots and deaths. But despite the fatalities and general carnage, unions and far left groups were planning for more protests on Thursday.
The bank workers’ union called for a strike Thursday to protest the deaths of their members and at the same time laid the blame for the violence on the government’s austerity measures. However, most banks in central Athens remained open.
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Filed under Chapter 7 (Tampa) by on Jul 27th, 2010. Comment.
In what seems like the only way out of a catch 22 situation, Greece has to borrow money from the International Monetary Fund (IMF) and its fellow EU countries to avoid national bankruptcy. The country is two weeks away from defaulting on €8.5 billion worth of bonds maturing May 19 for which it does not have the money to pay.
During a heated debate in parliament, Greek Prime Minister George Papandreou said the government has to avail itself to the €110 billion three-year package comprising of loans from other eurozone countries and the IMF. But the package comes at a price. The government must agree to severe austerity measures over the three year period. These measures include slashing salaries, pensions and increasing taxes. The government was trying to rush through legislation in parliament to authorize the austerity measures.
The loan package is also aimed at preventing the debt problem from spilling over to other European countries with vulnerable economies such as Portugal and Spain. Portugal and Spain has had their debt ratings downgraded which contributed to the depreciation of the value of the Euro from as high as $1.51 to below $1.28.
The austerity measures have sparked outrage among the Greeks, with approximately 100,000 people spilling into the streets last Wednesday, torching buildings, destroying public property, smashing windows and fighting with police. Three bank employees – a man and two women, one of whom was pregnant – died when they were trapped inside their building set ablaze by rioters. Another four people were rescued by fire fighters using a crane from the balcony of the bank. The deaths were the first protest-linked ones in more than 20 years and have shocked the nation in which protests are common but rarely result in fatalities. A makeshift shrine with flowers and candles was set up in a charred window of the Marfin Bank, the scene of the deaths.
41 policemen and 15 civilians were injured in the riots, while 25 people were arrested. When the journalist union canceled their participation in the protests, newspapers were rushed through the press on Wednesday just in time to report on the riots and deaths. But despite the fatalities and general carnage, unions and far left groups were planning for more protests on Thursday.
The bank workers’ union called for a strike Thursday to protest the deaths of their members and at the same time laid the blame for the violence on the government’s austerity measures. However, most banks in central Athens remained open.
Filed under Chapter 7 (Tampa) by on May 24th, 2010. Comment.
