We want to hear your ideas!
2011 August 5 by jesse
We’re about to launch a new and improved website at http://www.bklawpro.com.
We would love to hear any ideas you have for improving it. When you first sought our help, was anything on the site confusing? Would you like to see more helpful articles, forms, or other resources?
Let us know! Leave a comment on this blog post.
Bankruptcy And Financial Aid
2011 June 10 by jesse
If you’ve filed for bankruptcy or are contemplating it, you may be wondering how it will affect your ability to get student loans and other financial aid. The good news is that there are still options available for borrowing money after bankruptcy. The bad news is that it’s a bit more complicated with a bankruptcy situation. Here’s the scoop on the different types of financial aid and how they’re affected by bankruptcy.
FEDERAL ASSISTANCE
Federal loans, such as Stafford and PLUS (loans for parents), are the largest providers of financial assistance for higher education. Because the government encourages higher learning at colleges and universities, these programs are still available to those who have filed bankruptcy.
There are two subcategories within the federal assistance bucket – grants and loans. Grants are need-based or merit-based scholarships that don’t have to be repaid. They are based on either a special achievement of some type, such as academic excellence or athletic skill, or based on household income or hardship. Loans have to be repaid, but have lower interest rates and more flexible repayment schedules.
The good news is that bankruptcy is not a factor in receiving grants and loans from the federal government, providing your criminal record is clear. Your credit history and income are not factors in being approved for federal loans. However, if you’ve defaulted on a school loan in the past, this could affect your chances for receiving another loan.
A good place to start seeking federal assistance is filling out a Free Application for Federal Student Aid, or FAFSA. The FAFSA allows the school and the federal government to determine what kind of financial aid you are eligible for.
PRIVATE LOANS
Unfortunately, private loans may not be an option for financial assistance after a bankruptcy. These programs are not regulated by the government and therefore have stricter criteria for approval. Private lenders typically look at whether there has been a bankruptcy within the past 10 years and may deny based on that.
A few exceptions exist, such as if the bankruptcy was the result of a natural disaster or extraordinary medical costs. And if the parent has filed bankruptcy, this should not affect on their child’s eligibility for private financial assistance (as long as parents are not cosigning).
Lenders also look at payout plans. Borrowers who filed for a Chapter 11 or Chapter 13 and had a payout plan will be more likely to get a private loan than borrowers who filed a Chapter 7. Lenders also look at whether the borrower is able to refile for bankruptcy – making Chapter 7 filers more attractive because they are unable to immediately refile.
Your first phone call should be to the financial aid department of the school you (or your child) plan to attend. It is not uncommon for bankruptcy filers to seek financial assistance and the experts will know the best options for your specific circumstances.
Team Member Spotlight
2011 June 10 by jesse
Diana & Franz Schneider
DIANA SCHNEIDER, PRE-FILING PARALEGAL
Tell me about your background before you joined Bankruptcy Law Professionals.
I worked as a church secretary for six years (from 2002 to 2008), then stopped working in August 2008 to marry my love as well as take some time off until April 2009 when I started working as the File and Admin Clerk for Bankruptcy Law Professionals.
What does a typical work day look like for you?
I am currently the Pre-filing Paralegal, which means I work on data entry/case preps. I spend most of my day typing our client’s information into our Bankruptcy Case software, which takes anywhere from three to five hours per case. Mix in phone calls, emails, as well as filing cases and documents electronically for our clients and you’ve got a good picture of a typical day as a Pre-filing Paralegal.
What do you enjoy most about your job?
I love working for Jesse (he’s a super-boss) and I enjoy all my hardworking coworkers. I love the flexibility of what I do and being able to problem-solve and help others out. One of the most satisfying things is to be able to help a client solve a problem and make their day brighter.
What do you like to do in your spare time?
I love interior design and am currently in the process of decorating and remodeling our recently purchased home. Anything DIY or home-project related gets me super excited. I love me a good Before and After. I also have a side-business/hobby of photography; it’s so fun to capture someone’s moment on film!
If you won the lottery today, what would you do?
Hmmm, I think I would use some towards remodeling and paying off our house, give a part to people I know that are in need, a part to my local church/missions, and use the rest to go shopping at IKEA!
It’s No Joke – Humor can help Stress
2011 June 10 by jesse
Dealing with financial problems is one of the largest stresses in life. In fact, study after study, including the ground-breaking 1967 University of Washington study, have come to the same conclusion – financial issues are the main cause of stress in American life.Stress can affect your physical and mental health, your marriage, your friendships, and more. It can even lead to major physical problems like obesity, diabetes, heart disease, and high blood pressure.But on the positive side, one of the ways you can mitigate stress is through humor. According to the Mayo Clinic, laughter alone has a positive physical affect:
- Stimulates organs. Laughter enhances your intake of oxygen-rich air, stimulates your heart, lungs and muscles, and increases the endorphins that are released by your brain.
- Activates and relieves your stress response. A good laugh fires up and cools down your stress response and increases your heart rate and blood pressure, resulting in a relaxed feeling.
- Soothes tension. Laughter can also stimulate circulation and aid muscle relaxation, both of which help reduce some of the physical symptoms of stress. It can also exercise the diaphragm, contract the abs and get your heart pumping, which can all help you to feel better.
- Improves your immune system. Positive thoughts actually release neuropeptides that help fight stress and potentially more-serious illnesses. And laughter increases the number of antibody-producing cells and enhances the effectiveness of T cells.
- Relieves pain. Laughter may ease pain by causing the body to produce its own natural painkillers.
In addition to the physical effects, laughter and humor can help you cope with problems in a more positive way. If you’re a more positive person, thie makes you easier to be around, helping you connect with people. So seek out some movies, TV shows or books that make you laugh, or go to a comedy club with some friends. Seek out some coworkers who make you laugh and invite them to lunch. Reconnect with an old friend who always told the best jokes. You know what they say — laughter is the best medicine!
***FREE*** Copies of”Money is the Smallest Part of Your Finances,”by Money Coach Brad Hawkins
2011 May 6 by jesse
Award Winning Financial Planner and Money Coach, Brad Hawkins has provided me with 30 free copies of his book, Money is the Smallest Part of Your Finances. I’ve uploaded a PDF sample of the book which you can access by clicking this link: Money is the Smallest – Brad Hawkins. The First 30 people who provide me with their name and contact informaiton will be sent a copy of this 120 page book.I have personally read this book and found it to be very insightful and practical. I highly recommend it to anyone who uses money (and that would be EVERYONE).
For Those of You With Active Cases
2011 April 8 by Staff
There is a handy online service that allows you to access your court documents for only eight cents per page. Check out PACER — Public Access to Court Electronic Records at www.pacer.gov/psco/cgi-bin/regform.pl. Continue reading »
The Latest Foreclosure and Mortgage News
2011 March 24 by Staff
According to Consumer Bankruptcy News, nearly 3 million properties in the U.S. received foreclosure papers during 2010. This is a 2 percent increase from 2009 and a 23 percent increase from 2008.”Total properties receiving foreclosure filings would have easily exceeded 3 million in 2010 had it not been for the fourth quarter drop in foreclosure activity – triggered primarily by the continuing controversy surrounding foreclosure documentation and procedures that prompted many major lenders to temporarily halt some foreclosure proceedings,” said James J. Saccacio, chief executive officer of RealtyTrac. “Even so, 2010 foreclosure activity still hit a record high for our report, and many of the foreclosure proceedings that were stopped in late 2010 – which we estimate may be as high as a quarter million – will likely be re-started and add to the numbers in early 2011.”Source: Consumer Bankruptcy News, February 24, 2011
Continue reading »
Did you know – Colonel Sanders of KFC was broke?
2011 March 24 by Staff
Here is a little bankruptcy humor to make you smile:Pete and Gladys were looking at a new living room suite in the furniture store. Pete says to the salesman, “We really like it, but I don’t think we can afford it.”The salesman says, “You just make a small down payment, then you don’t make another payment for six months.”Gladys wheels around with her hands on her hips and says, “Who told you about us?” Did you know – Colonel Sanders of KFC was broke?Harland David Sanders, who died in 1980 at the age of 90, is the famous Colonel Sanders, founder of Kentucky Fried Chicken. Most of us are familiar with his top-secret recipe, but not the fact that he was broke at age 65 and facing bankruptcy. Continue reading »
Bankruptcy Myth #11: Filing for Bankruptcy Will Hurt Your Credit
2011 March 17 by Staff
That’s not true. Think about it. By the time you come to a bankruptcy attorney, your credit is already either messed up or maxed out. And if it’s already messed up or maxed out, how can bankruptcy hurt it? The big surprise for my clients is when I tell them that filing bankruptcy can actually help them re-build their credit. Continue reading »
Bankruptcy Myth #9: Only Deadbeats File for Bankruptcy
2011 March 17 by Staff
Not true. Most of the people who file bankruptcy are good, honest, hard-working people…just like you and me…who file as a last resort…after months or years struggling to pay the bills that were left over from some life-changing experience, such as a divorce, the loss of a job, a failed business venture, a serious illness, or some family emergency…or because they honestly and mistakenly fell into debt at a young age before they knew better… before they knew anything about budgeting or how to manage money.
