BANKRUPTCY ATTORNEY DAVID LAUSTSEN
SERVING Allentown, Almont, Applebachsville, Bedminster, Bethlehem, Blooming Glen, Brick Tavern, Buckingham, Buckmansville, Bucksville, Bursonville, Carversville, Center Bridge, Chalfont, Churchville, Coopersburg, Danboro, Doylestown, Dublin, Durham, Dyerstown, Easton, Edison, Erwinna, Eureka, Fair Hill, Ferndale, Fountainville, Furlong, Gallows Hill, Gardenville, Green Lane, Gruversville, Harrow, Hartsville, Hatboro, Holicong, Horsham, Jamison, Keelersville, Kintnersville, Lahaska, Lansdale, Lumberville, Mechanicsville, Milford Square, Monroe, Mumbauersvile, Naceville, New Britain, New Hope, North Wales, Ottsville, Perkasie, Pipersville, Pleasant Valley, Plumsteadville, Point Pleasant, Pottstown, Quakertown, Revere, Richland, Richlandtown, Ridge Valley, Riegelsville, Rockhill, Rosedale, Sellersville, Shelley, Silverdale, Sleepy Hollow, Smithtown, Smoketown, Solebury, Souderton, Spinnerstown, Springtown, Steinsburg, Sterners Mill, Strawntown, Telford, Tinicum, Trumbauersvie, Upper Black Eddy, Warminster. Warrington, Washington Crossing, Willow Grove, Wismer, Wormansville, Wrightstown, Wycombe, Zion Hill
Bucks, Montgomery, Chester, Philadelphia, Northampton and Lehigh
Counties.
FREE CONSULTATION,
LOW RATES. FREE CALL: 888-UNLOADDEBT.
and unload debt! 215-230-4250. Learn the truth about credit cards.
CRUSHED BY CREDIT CARD OR
OTHER DEBTS?

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.
350 S. Main Street, Suite 105
Penn's Court
(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 20th Century, bankruptcy laws became
permanent, but revisions were made in response to economic conditions.
YouÕre 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 Òback on trackÓ as soon as possible—and improve your credit rating at
the same time.
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, youÕll know that my rates are reasonable and that I offer
a payment plan.
Some famous peopleÉ
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
personÕs credit card bill without their knowledge. Whether or not you prosecute the individual, youÕll 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 didnÕt incur, and that you donÕt 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 Òfresh startÓ
IsnÕt 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, ITÕS 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.
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 ÒadjustmentsÓ 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).
There are five types of bankruptcy cases
provided under the law:
*Chapter 7 is known as "straight" bankruptcy or
"liquidation." Typically, a debtorÕs property (car, home, household
items, most bank accounts) will be ÒexemptÓ 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.
(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.
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.