You never know.

Today, I went to the local Starbucks for a cup of coffee and was amazed by the generiosity of a total stranger. I had Bailey the beagle with me and didn't want to leave him outside unattended too long. The man in front of me, noticed that I kept glancing outside and offered to buy my coffee so I could go back outside.
Not only did he pay for coffee himself, he also treated me to a breaksfast scone. I was surprised at this kindness and taken a back. So what, does this have to do with bankruptcy, you ask.

Well, the lesson for me today was that you never know what life has in store. So many of my clients call and they are STRESSED OUT, worried about their finances and weary of this process. The purpose of bankruptcy is to allow debtors to get a FRESH START. I know it sounds corny, but there's a device in place that can allow you to get rid of your unsecured debt and keep secured debt (such as a house) that you are behind on. If you have been thinking about bankruptcy for awhile now, but are hesitant because you're not sure if you qualify or what could happen, my message to you is to contact me for a FREE consultation as with my cup of coffee this morning, you never know what life has in store for you.

Shimea Anderson, Esq.
(510) 208-2800
Shimealaw@gmail.com

Why a Credit Report ?

One of the many documents that we request from clients is a 3-source credit report. Many clients wonder why and here is a short explanation.

When filing bankruptcy, you must list all of your debts. In fact, you swear under penalty of perjury that you have listed all of your assets and ALL OF YOUR DEBTS. A 3-source credit report is required so we can both review and verify your debts. After all, this is your one chance to get a bankruptcy discharge (debt forgiveness if you qualify for the bankruptcy) for the NEXT EIGHT YEARS. Yes, you can generally only get a bankruptcy discharge once every eight years. By verifying your debts, we ensure that everything is listed on the bankruptcy petition.

Your credit report also provides valuable information about your accounts, such as the account number, the amount of the debt, when the account was open, as well as recent activity. All of this information is needed to complete the bankruptcy petition.
Now that we know we need your credit report to complete the petition, the next issue is why a 3-source report or better yet "What is a 3-source credit report."

There are three credit reporting agencies (Experian, Equifax, and Transunion). Each of the agencies, provides information about your credit history as well as a credit score.  Sometimes the information listed in one report may be missing in another. Also, many client have medical bills that are not reported to the credit bureau reporting agencies. Take the time to gather bills and mail and compare the bills that you have to what is listed on your credit report.

Many clients can obtain their credit reports online.  Be weary of pay subscription sites to review and have access to credit information.   Below are the websites for the 3 credit bureau reporting agencies.  Review their websites for more information.

Equifax: http://www.equifax.com/home/en_us
(800) 685-1111

Experian: www.experian.com
(888) EXPERIAN

Transunion: www.tuc.com

(800) 888-4213 (to get your credit report)
(800) 916-8800 (to ask questions about your credit report)

Some clients confess truthfully that they are afraid to see their credit scores.  Once at a 700 or above, the score may have declined due to a foreclosure, loss of job or change in life circumstances.  Don't let this fear stop you.  You get to see the score and focus on the fact that you are one step closer to your goal of filing bankruptcy.

If I'm married, what happens if only 1 spouse files ?

This is one of the most common questions that clients have. Often one spouse wants to file bankruptcy, but the other spouse does not. What happens ?

In order to file a Chapter 7 petition, your income must be below the median income for your area based on your family size. If you are married, the Court considers the income of both spouses. Let me say it again: THE INCOME OF BOTH SPOUSES. In other words, you will need to list your spouse's income, even though only you are filing. If you and your spouse make below the means test amount for your area, then you can qualify for chapter 7. If not, then we will have to look at any possible exemptions and you may only be eligible for a Chapter 13.

Let's go through an example: Danny and Donna Door are married and have 2 dependents. Donna and Danny do not own a home and do not have any joint debt. Donna has all of her credit in her own name and Danny has all of this credit in his name. Donna is unemployed and receiving unemployment (which is not considered income for the means test purpose), Danny works full-time, making approximately $65,000 per year + a bonus of approximately $10,000. Donna contacts my office and wants to file. The Court will look at Donna's family size of 4 (2 adults + 2 dependents) and her and David's income. A family of four, must have income lower than 79,971.00 in order to qualify for a Chapter 7. Here, Donna and David's income is $75,000 which is less than $79,971.00, Donna would qualify for Chapter 7.

Let's try another example: Jenna and Jordan Jeans. Jenna and Jordan have no children and no dependents. Jenna makes 30,000 per year and Jordan makes $45,000 per year. The income requirement for a family of 2 in California is: 65,097.00. Their total income is $75,000. Here, Jenna doesn't understand why the Court is looking to Jordan's income which means she doesn't qualify. The bottom line is that even is Jenna wants to file and Jordan does not want to be involved, they look at both of their incomes and they do not qualify.

There a lot of websites with means tests calculators, you can input your income and your family size and it will tell you whether you qualify. However, my office to let us help you determine whether you qualify for a Chapter 7 petition.

The information provided here does not constitute legal advice and is here for informational purposes only. Anyone reading this blog should consult with a licensed CA bankruptcy attorney for more information and to determine whether they qualify for Chapter 7.

Increase in Bankruptcy Filings

I recently came across a New York Times article regarding the overall increase in bankruptcy filings. The number of people in the US who filed bankruptcy is March was record breaking.

According to the article entitled "Downturn Pushes More Towards Bankruptcy," published on April 3, 2009, an average of 5,945 bankruptcy petitions were filed each day in March. Let's review the numbers again, 5,945 petitions per day in MARCH. Just to give us some perspective that's 184,295 petitions. With that many people filing clearly Bankruptcy has become a sign of our times.

Like many of my clients, people are over this country are facing financial crisis. I help people who have lost their jobs and can no longer afford their credit cards or have medical bills that they can;t pay. Regardless of the many difficulties there are facing, filing bankruptcy has allowed them to get a fresh financial start.

If you are thinking about filing bankruptcy, there is nothing to be ashamed of. My office is here to help guide you through the process. You can reach me at 510-836-3618 or by email at shimealaw@gmail.com.

Fresh Financial Start

Last night, I had the opportunity to attend a law school alumni event. I usually try to shy away from these types of events. In the past, I have found them to a lot of talking about what I do for a living. Prior to working with Sarah and on my own, I was never that excited to tell anyone what it was that I did. Now, I can't wait to announce to the world that I HELP PEOPLE. I help people facing financial difficulties get a fresh financial start under the bankruptcy code.

In my last job, I did not feel the connection to clients and to their lives that I now feel. I can honestly say that I enjoy talking about what I do. I assist individuals who are facing financial difficulty and help them determine whether bankruptcy is the right for them. This is hugely rewarding, because I can see the direct benefit to them of bankruptcy as well as the huge relief that they feel in being able to get a fresh financial start and get back on track.

If you're thinking of filing bankruptcy and want an attorney who LOVES to discuss bankruptcy and help clients, please contact me today via email or by phone at (510) 208-2800.

I offer a free consultation by phone or in person. I have weekend and evening appointments.