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BANKRUPTCY ATTORNEY DAVID LAUSTSEN

350 S. Main Street, Suite 105

Penn's Court

DOYLESTOWN, PENNSYLVANIA

215-230-4250

1 888 UNLOADDEBT

UNLOADDEBT.COM.

YOUR FIRST MEETING WITH ATTORNEY LAUSTSEN

IS AT NO CHARGE OR OBLIGATION.

Attorney Laustsen will analyze your financial circumstances based on information that you provide us. Once we get the proper information on your financial situation we will advise you as to your bankruptcy and non-bankruptcy options, and the requirements that must be met before you file for bankruptcy. We will quote you an estimated fee for our bankruptcy services. Basic bankruptcy services from Attorney Laustsen for Chapters 7 and 13 are generally charged at a flat fee. Both the client and the attorney will sign a Representation Agreement that states the amount charged.

David S. Laustsen, Esquire

350 S. Main Street, Suite 105

Penn's Court

Doylestown, PA 18901

(215) 230-4250

(215) 230-4251 Fax

www.unloaddebt.com (web page)

David S. Laustsen, Esq. is a licensed attorney in Pennsylvania. He holds a J.D. Degree from Temple University School of Law and a Bachelors Degree in Communications from Northwestern University. He is the recipient of the Milton C. Sharp Award for studies in land use planning at Temple Law School.

He is a former State Senator in the State of South Dakota, where he served in the Legislature for eleven years. He was a member of the Juvenile Justice Advisory Commission and the Local Government Study Commission in South Dakota. He is the former owner and operator of KKAA-AM and KQAA-FM in Aberdeen, S.D.

He was appointed by the Governor of Pennsylvania to the Navigation Commission of the River Delaware. He is active in amateur radio groups. He is the president of the Area Repeater Coordination Council, and a member of the Radio Amateur Civil Emergency Service for Bucks County.

Mr. Laustsen served as Deputy Chief Counsel to the Pennsylvania Crime Commission, and was a consultant to the Commission in its 1990 Report on Organized Crime. He coordinates an annual seminar for law enforcement officers on organized crime. He is the president of the Organized Crime Roundtable, an organization that sponsors annual seminars for law enforcement agents and prosecutors.

Mr. Laustsen and his family live in Doylestown. His wife, Jean, is a Emmy Award winning television producer for Fox 29-TV, Philadelphia.

IMPORTANT, THIS STATEMENT IS REQUIRED BY THE BANKRUPTCY CODE:

IMPORTANT INFORMATION ABOUT BANKRUPTCY ASSISTANCE SERVICES

If you decide to seek bankruptcy relief, you can represent yourself, you can hire an attorney to represent you, or you can get help in some localities from a bankruptcy petition preparer who is not an attorney. THE LAW REQUIRES AN ATTORNEY OR BANKRUPTCY PETITION PREPARER TO GIVE YOU A WRITTEN CONTRACT SPECIFYING WHAT THE ATTORNEY OR BANKRUPTCY PETITION PERPARER WILL DO FOR YOU AND HOW MUCH IT WILL COST. Ask to see the contract before you hire anyone.

The following information helps you understand what must be done in a routine bankruptcy case to help you evaluate how much service you need. Although bankruptcy can be complex, many cases are routine.

Before filing a bankruptcy case, either you or our attorney should analyze your eligibility for different forms of relief available under the Bankruptcy Code and which form of relief is most likely to be beneficial to you. Be sure you understand the relief you can obtain and its limitations. To file a bankruptcy case, documents called Petition, Schedules and Statement of Financial Affairs, as well as in some cases a Statement of Intention need to be prepared correctly and filed with the bankruptcy court. Once your case starts, you and your attorney will attend a meeting with a bankruptcy trustee .

You'll never find this disclosure on your credit card statement:

The Truth About Credit Cards (or What The Credit Card Guys Don't Want To Tell You):

(Do the math):

Consumer's Union says that "a consumer making the minimum payment on an outstanding (credit card) balance of $10,000 with a 17% interest rate would take 50 years to pay off and cost a total of $33,447. If the consumer were late on a single payment and the interest rate increased to 20%, it would take 83 years to pay off and cost a total of $58,084."

You can see that unless you make a six-figure income, you may be trapped by credit card payments for the rest of your life, without charging another nickel on the card.

Who needs a credit time bomb?

* * * * * * * * * * * *

A Nutshell History of Bankruptcy

Bankruptcy law is ancient. The Bible recognizes that there are people who are trapped in debt that is so overwhelming that they cannot possibly pay it back by their own efforts.

"At the end of every seven years you shall grant a remission of debts. And this is the manner of remission: every creditor shall release what the has loaned to his neighbor; he shall not exact it of his neighbor and his brother, because the Lord's remission has been proclaimed." Deut. 15, v. 1,2

In other words, people should strive to pay back their debts, but at a point where they are drowning in debt that they should be given relief.

In Medieval Italy if a tradesman could not pay his debts, the customary law at that time was to destroy his trading bench. So, it is believed from the term "broken bench" or "banca rotta" arose the term "bankruptcy".

In the US, bankruptcy laws were permitted by the U.S. Constitution. In Article 1, Section 8, Clause 4 (Bankruptcy). Congress is given the power to pass uniform laws on the subject of bankruptcies. The founding fathers anticipated that bankruptcy law would be a part of the legislative enactments of the Congress, and expressly permitted it in the Constitution.

In the early days of our Republic bankruptcy laws were enacted during economic downturns. In the 20^th Century, bankruptcy laws became permanent, but revisions were made in response to economic conditions.

You’re not alone

I have over a decade of experience as a bankruptcy attorney—representing debtors and creditors. My clients refer their friends and relatives to me for help in dealing with insurmountable debts. My goal is to take you through the entire process of debt relief and get you “back on track” as soon as possible—and improve your credit rating at the same time.

Questions And Answers About Bankruptcy

A decision to file for bankruptcy should be made only after determining that bankruptcy is the best way to deal with your financial problems. This narrative cannot explain every aspect of the bankruptcy process. I offer a free consultation to review your financial situation. If you decide to file for bankruptcy, you’ll know that my rates are reasonable and that I offer a payment plan.

Some famous people…

P.T. Barnum

Henry John Heinz (ketchup magnate)

Henry Ford (Mr. Model T)

Mark Twain (author)

Mickey Rooney

Jerry Lee Lewis

Johnny Unitas

Wayne Newton

Kim Basinger

Debby Reynolds

And many more, have filed for personal bankruptcy.

What Is Bankruptcy?

Bankruptcy is a legal proceeding in which a person who cannot pay his or her bills can get a fresh financial start. The right to file for bankruptcy is provided by federal law, and all bankruptcy cases are handled in federal court. Filing bankruptcy immediately stops all of your creditors from seeking to collect debts from you, at least until your debts are sorted out according to the law. Unemployment, medical expenses, divorce or separation and support of children, parents or other relatives often result in an unmanageable debt. Often when an individual or couple cannot pay even the minimum monthly payments on credit cards and loans, a bankruptcy becomes inevitable.

Bankruptcy will immediately stop all collection lawsuits, collection calls and letters, repossessions, garnishments. It will stop collectors from contacting employers or relatives.

This protection begins with the filing of your bankruptcy paperwork. Creditors and bill collectors are notified of a filing for bankruptcy by the Bankruptcy Court. Once notified, the law requires that they stop all collection efforts. As soon as you file the bankruptcy paperwork, the court mails a notice to all the creditors listed in your bankruptcy schedules. Allow about two weeks for the notices to reach your creditors. You may refer your creditors to your attorney who will give your case number to the bill collectors and creditors when they call. The creditors will then cease calling you. If any creditors persist after they are informed about the bankruptcy, they are subject to a lawsuit that may make them liable for sanctions and attorneys fees.

Our office is connected with the Bankruptcy Court electronically. A bankruptcy case can be filed almost instantaneously provided the paperwork is complete.

What are the main reasons people file for bankruptcy?

1. Loss of employment/wage or salary cuts. Often people will try to tough it out until eventually the unemployment runs out. Judgments, repossessions and foreclosure usually follow rapidly. When in a situation of financial distress, always pay your rent/mortgage, utilities, and car payments first, and wait on the credit cards and unsecured loans until after you are employed. If your unsecured debt is close to or more than what you usually make in a year, then you should consider a bankruptcy to eliminate that burden. With that amount of debt, it is unlikely that you could never pay it back anyway. Let me review your finances and suggest a plan for you.

2. Health care/lack of insurance. Scenario: Husband loses job, can't afford COBRA coverage. Baby gets sick and couple is saddled with huge medical bill. B. Employer doesn't offer insurance, and worker cannot afford private health insurance.

3. Divorce. When husband and wife separate, often the living expenses are much more than when they lived together. If a divorce is imminent, it makes sense for the couple to file a joint bankruptcy and get rid of their debt before their divorce is final. Advantage: Joint or individual bankruptcy is the same cost.

4. Small Business Failure.

5. Theft. Unfortunately, it is not uncommon for a family member or a significant other to run up another person’s credit card bill without their knowledge. Whether or not you prosecute the individual, you’ll have a difficult time proving that the charges were not yours or authorized by you. A bankruptcy may be a way to eliminate debt that you didn’t incur, and that you don’t have the ability to repay.

If your debt is in excess of your yearly compensation, it is virtually impossible for you to pay it back at credit card interest rates. I will examine your financial situation and make a recommendation to you. Your appointment is at no charge.

YOU can get a “fresh start”

Isn’t it harder to file for bankruptcy because of the new law?

While there are new paperwork requirements mandated by a change in the law, the vast majority of clients will have no difficulty in filing for debt relief in bankruptcy.

The new bankruptcy law requires that all individuals filing for bankruptcy relief participate in a credit-counseling program. This is often done on the telephone. I will explain the requirements to you during your free appointment.

Copies of certain documents are required. For example, copies of pay stubs for seven months before the filing are required, and copies of your tax returns for the last three years must be filed with the court.

There are some income requirements under the new bankruptcy law that I will explain to you.

Marriage and Bankruptcy-

Couples who are getting married may want to examine each other's credit reports to see if one or both of them is bringing a load of "bad debt baggage" into the marriage. Often, one spouse has residual credit card debt from a prior marriage or other circumstances, that will be difficult to pay off in the future. A marriage should be a fresh start, and a bankruptcy can enable a couple to start life together with a clean slate. I will review your financial situation and make a recommendation to you. There is no charge for a financial review.

Small Business Failure

Businesses fail every day---and the current economic situation increases the likelihood of failure. Small business owners find themselves victims of the business failure of their suppliers or customers, and an otherwise profitable business can fail rapidly. If your business is encountering a rocky road, you should contract me for advice. I will review your business and personal financial situation and I may be able to help you avoid costly mistakes. You should be concerned with your personal liability if your company must close, and minimizing problems that arise from the closure of a business.

If you have an operating proprietorship business with business debts, you must disclose such debts and consult with your bankruptcy attorney about how to proceed in either Chapter 7 or 13.

Installment Loans

We encounter many instances of consumer installment loans in which the loan company claims a collateral interest in home furnishings or used vehicles. Often, these interests can be avoided in a bankruptcy. If you have a substantial credit card debt and some installment loans in which the loan company asked you to list personal property as "collateral", you should have me review you situation and make a recommendation.

I'm not ready to see an attorney

Perhaps you're not ready to make an appointment, but you do want some basic information about bankruptcy. CALL AND ASK, IT’S A FREE CALL: 1-888-UNLOADDEBT. Remember that your first office appointment is free, and that in almost all cases, bankruptcy services are a flat fee, so you'll know exactly what the procedure costs in advance.

How long does a bankruptcy case last?

A Chapter 7 bankruptcy case will last about four to five months. When we start, we will interview you and gather information about your situation. We then prepare a draft of your bankruptcy filing and return it to you. You review it, make any necessary corrections, and return it to us in the provided postage paid envelope. We make any necessary changes and file it with the court. The court will notify your creditors by mail as soon as you file. About 6 weeks later, you and your attorney will attend a brief 5-minute meeting with the bankruptcy trustee. Then, 5-7 months after you file, you'll receive your discharge notice, permanently erasing your debt.

If you pay your regular bills on time after your discharge, your credit should be rehabilitated within two years. (Ask a mortgage broker). . Remember that your first appointment is free, and that in almost all cases, bankruptcy services are a flat fee, so you'll know exactly what the procedure costs in advance.

Can a bankruptcy filing help with these situations?

1. Getting out of an expensive car loan and getting an affordable car?

YES

2. Dumping an expensive time-share without any penalty?

YES

3. Returning "toys" like 4-wheelers, motorcycles, jet-skis, snowmobiles, etc. that I can't afford without a penalty?

YES

4. Returning a leased car, without penalty, with damage or mileage excess?

YES

5. Getting out of a "freezer contract," health club membership, or lawn service that you can't afford?

YES

6. IRS taxes that were filed on time, are at least three (3) years old, and haven't been paid?

YES

7. A second, third, or fourth mortgage in which the lender loaned money on our home even though there was no equity in the property?

YES

8. A judgment lien on my house for a credit card bill?

YES

Bankruptcy myths:

1. If I file for bankruptcy, I will lose my home.

No. I will review your situation and explain why this is almost always not the case.

2. My employer will find out about my bankruptcy.

Highly unlikely. Remember your employer probably objects more to the collection calls that you may be receiving at work. As a practical matter, your employer will not know about your case. He will not be notified, nor will it appear in the newspaper.

3. My credit will be ruined for seven years.

Absolutely not. In a Chapter 7 case your credit will begin to improve after the date of discharge (4-5 months after filing). If you continue to pay your utility bills, rent/mortgage, automobile loans, etc. on time, your credit will be substantially improved within two years. Your credit will just get worse if you do nothing. If you clear your unsecured debt in bankruptcy you may be able to qualify for mortgages that you can afford.

4. Creditors will sue me after the bankruptcy is over.

No, that is unlawful.

5. I can't own anything in my name after a bankruptcy.

Boy, this is a really old myth, and totally untrue.

6. I'll have to pay income tax on all the debt that I discharge.

Absolutely not.

7. I won't be able to buy a car after bankruptcy.

You know that this one is untrue. Look at the car ads in the newspaper.

Remember that your first appointment is free, and that in almost all cases, bankruptcy services involve a flat fee, so you'll know exactly what the procedure costs in advance. www.unloaddebt.com 215.230.4250 for a free appointment.

What Can Bankruptcy Do for Me?

Bankruptcy may make it possible for you to:

Eliminate the legal obligation to pay most or all of your debts. This is called a "discharge" of debts. It is designed to give you a fresh financial start.

Stop foreclosure on your house or mobile home and allow you an opportunity to catch up on missed payments. (Bankruptcy does not, however, automatically eliminate mortgages and other liens on your property without payment.)

Prevent repossession of a car or other property, or force the creditor to return property even after it has been repossessed.

Stop wage garnishment, debt collection harassment, and similar creditor actions to collect a debt.

Restore or prevent termination of utility service.

Allow you to challenge the claims of creditors who have committed fraud or who are otherwise trying to collect more than you really owe.

What Bankruptcy Cannot Do

Bankruptcy cannot, however, cure every financial problem. Nor is it the right step for every individual. In bankruptcy, it is usually not possible to:

Eliminate certain rights of "secured" creditors. A "secured" creditor has taken a mortgage or other lien on property as collateral for the loan. Common examples are car loans and home mortgages. You can force secured creditors to take payments over time in the bankruptcy process and bankruptcy can eliminate your obligation to pay any additional money if your property is taken. Nevertheless, you generally cannot keep the collateral unless you continue to pay the regular debt payments. While you can file a Chapter 13 Plan to pay the arrearages on a mortgage, you can't force the creditor to refinance your loan at, say, a lower interest rate or to eliminate “adjustments” in ARM mortgage payments.

Discharge types of debts singled out by the bankruptcy law for special treatment, such as child support, alimony, certain other debts related to divorce, some student loans, court restitution orders, criminal fines, and some taxes.

Protect cosigners on your debts. When a relative or friend has co-signed a loan, and the consumer discharges the loan in bankruptcy, the cosigner may still have to repay all or part of the loan. However, this may not be the case in a Chapter 13.

Discharge debts that arise after bankruptcy has been filed.

Important Note

The following debts may be declared nondischargeable by a bankruptcy judge in Chapter 7 if the creditor challenges your request to discharge them. These debts may be discharged in Chapter 13. Debts you incurred on the basis of fraud, such as lying on a credit application credit purchases of $1,150 or more for luxury goods or services made within 60 days of filing loans or cash advances of $1,150 or more taken within 60 days of filing debts from willful or malicious injury to another person or another person's property debts from embezzlement, larceny or breach of trust, and debts you owe under a divorce decree or settlement unless after bankruptcy you would still not be able to afford to pay them or the benefit you'd receive by the discharge outweighs any detriment to your ex-spouse (who would have to pay them if you discharge them in bankruptcy).

What Different Types of Bankruptcy Cases Should I Consider?

There are five types of bankruptcy cases provided under the law:

*Chapter 7 is known as "straight" bankruptcy or "liquidation." Typically, a debtor’s property (car, home, household items, most bank accounts) will be “exempt” so that the debtor keeps that property and discharges (erases) the unsecured debt.

*Chapter 13 requires a debtor to file a plan to pay debts (or parts of debts) from current income. Chapter 13 is used typically for debtors whose income exceeds the median income for the area or for debtors who need to pay mortgage or auto loan arrearages. Chapter 13 cases are often used to stop foreclosure.

Most people filing bankruptcy will want to file under either chapter 7 or chapter 13. Either type of case may be filed individually or by a married couple filing jointly. Chapter 9 is for municipalities, Chapter 11, known as "reorganization", is used by businesses and a few individual debtors whose debts are very large. Chapter 12 is reserved for family farmers.

Chapter 7

In a bankruptcy case under chapter 7, you file a petition asking the court to discharge your debts. The basic idea in a chapter 7 bankruptcy is to wipe out (discharge) your debts in exchange for your giving up property, except for "exempt" property, which the law allows you to keep. In most cases, all of your property will be exempt. But property, which is not exempt, may be sold, with the money distributed to creditors.

If you want to keep property like a home or a car and are behind on the payments on a mortgage or car loan, a chapter 7 case probably will not be the right choice for you. That is because chapter 7 bankruptcy does not eliminate the right of mortgage holders or car loan creditors to take your property to cover your debt.

Chapter 13

In a chapter 13 case you file a "plan" showing how you will pay off some of your past-due and current debts over three to five years. The most important thing about a chapter 13 case is that it will allow you to keep valuable property--especially your home and car--which might otherwise be lost, if you can make the monthly payments which the bankruptcy law requires to be made to your creditors. In most cases, these payments will be equal to your regular monthly payments on your mortgage or car loan, with an extra payment to the bankruptcy trustee to get caught up on the amount you have fallen behind. Caution: you must make your mortgage payments and trustee payments on time or your case will be dismissed. You must obtain permission from the bankruptcy court to sell or refinance your home during the time your case is in effect.

When Should I Consider a Chapter 13 case?

(1) own your home and are in danger of losing it because of money problems (foreclosure or sheriff sale);

(2) are behind on car or house payments, but can catch up if given some time;

(3) have valuable property, which is not exempt, but you can afford to pay creditors from your income over time.

You will need to have enough income in chapter 13 to pay for your necessities, pay your Chapter 13 payment to the trustee, and to keep up with the post-filing car/house payments as they come due.

What Property Can I Keep?

In a chapter 7 case, you can keep all property, which the law says is "exempt" from the claims of creditors. You can choose between your exemptions under your state law or under federal law. In many cases, the federal exemptions are better.

Federal exemptions include certain dollar amounts for

equity in your home;

equity in your car;

household goods

things you need for your job (tools, books, etc.);

Your right to receive certain benefits such as social security, unemployment compensation, veteran's benefits, public assistance, and pensions--regardless of the amount.

The amounts of the exemptions are doubled when a married couple files together. The exemption amounts are increased on a regular basis, but are quite liberal. IN MOST CASES, YOUR REAL ESTATE, HOUSEHOLD ITEMS AND VEHICLES WILL BE 100% EXEMPT. State Exemptions are also available to exempt property or equity, and may be preferable in your case.

In determining whether property is exempt, you must keep a few things in mind. The value of real property is not the amount you paid for it, but what it is worth now. What it is worth now is often based on the most recent APPRAISAL for real estate tax purposes, minus the balance owed on the mortgage(s). This often results in real estate equity that is 100% exempt. In the case of furniture and cars, because of depreciation, their "value" may be a lot less than what you paid or what it would cost to buy a replacement. We all know how fast cars depreciate, especially with high mileage and "rough" condition. Home furnishings tend to depreciate very fast, unless they are extremely valuable antiques.

To summarize, you equity in real property will be based on the value of your property minus your mortgage balance(s). In most instances, your equity [for the purposes of bankruptcy] is a lot less than you think, and will be exempt.

While your exemptions allow you to keep property even in a chapter 7 case, your exemptions do not make any difference to the right of a mortgage holder or car loan creditor to take the property to cover the debt if you are behind. In a chapter 13 case, you can keep all of your property if your plan meets the requirements of the bankruptcy law. That means that you will make a monthly payment to the Chapter 13 Trustee that will pay your arrearages on home or car loans over the period of the plan. In most cases you will have to pay the regular mortgage payment or car payment as you would if you didn't file bankruptcy, and your payment to the trustee will take care of the payments on which you were behind.

What Will Happen to My Home and Car If I File for Bankruptcy?

In most cases you will not lose your home or car during your bankruptcy case as long as your equity in the property is fully exempt. Even if your property is not fully exempt, you will be able to keep it, if you pay its non-exempt value to creditors in Chapter 13.

However, some of your creditors may have a "security interest" in your home, automobile or other personal property. This means that you gave that creditor a mortgage on the home or put your other property up as collateral for the debt.