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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.

Bankruptcy does not make these security interests go away. If you don't make your payments on that debt, the creditor may be able to take and sell the home or the property, during or after the bankruptcy case.

There are several ways that you can keep collateral or mortgaged property after you file bankruptcy. You can agree to keep making your payments on the debt until it is paid in full. Or you can pay the creditor the amount that the property you want to keep is worth. In some cases involving fraud or other improper conduct by the creditor, you may be able to challenge the debt. If you put up your household goods as collateral for a loan (other than a loan to purchase the goods), you can usually keep your property without making any more payments on that debt.

Can I Own Anything After Bankruptcy?

Yes! Many people believe they cannot own anything for a period of time after filing for bankruptcy. This is not true. You can keep your exempt property and anything you obtain after the bankruptcy is filed. However, if you receive an inheritance, a property settlement, or life insurance benefits within 180 days after filing for bankruptcy, that money or property may have to be paid to your creditors if the property or money is not exempt.

Will Bankruptcy Wipe Out All Of My Debts?

Yes, with some exceptions. Bankruptcy will NOT normally wipe out:

(1) money owed for child support or alimony, fines, and most taxes;

(2) debts not listed on your bankruptcy petition;

(3) loans you got by knowingly giving false information to a creditor, who reasonably relied on it in making you the loan; and certain debts for luxury items incurred within 90 days of filing of a bankruptcy;

(4) debts resulting from "willful and malicious" harm;

(5) student loans owed to a school or government body.

(6) mortgages and other liens which are not paid in the bankruptcy case (but bankruptcy will wipe out your obligation to pay any additional money if the property is sold by the creditor-this includes mortgage deficiencies and repossession deficiencies for auto purchases and leases).

Will I Have to Go to Court?

In most bankruptcy cases, you only have to go to a proceeding called the "meeting of creditors" to meet with the bankruptcy trustee and any creditor who chooses to come. In almost all chapter 7 and 13 cases, creditors choose not to attend. Most of the time, this meeting will be a short and simple procedure where you are asked a few questions about your bankruptcy forms and your financial situation. Normally, these meetings last about five to ten minutes. You should bring copies of the following documents with you to the meeting:

(Mandatory) Remember, you will need your original Social Security Card and original Driver’s license for the hearing. If you do not have these items with you for each person filing, the trustee hearing the hearing will not be held.

Seven months of consecutive pay stubs for each income in the family

Proof of homeowners insurance on all real properties owned.

Copies of Financial Responsibility Cards showing proof of auto insurance for all vehicles.

Statements showing your IRA, stock accounts, mutual fund accounts,. Annuities, savings accounts, and credit union accounts, if you have any. Bring copies of last 3 months bank statements.

Copies of complaints in any pending lawsuits in which you are either plaintiff or defendant.

Copy of listing agreement if your home is for sale.

Copy of last three years’ federal income tax returns.

If you operate your own business, ask your attorney about the requirements that apply to you.

Bring copies of most recent mortgage statements showing total amount owed. This includes first, second and any other mortgages or “home equity lines of credit.”

Bring copies of all documents relating to sale of real estate or automobiles in the last three years, and any inheritance that you've received or expect.

Typically, no creditors will attend the "meeting of creditors." Assuming that you have all of the documents that are requested, your meeting will last ten minutes or less.

Occasionally, if complications arise, or if you choose to dispute a debt, you may have to appear before a judge at a hearing. If you need to go to court, you will receive notice of the court date and time from the court and/or from Attorney Laustsen, and he will attend the hearing with you.

Will Bankruptcy Affect My Credit, and Can I Ever Qualify for a Car Loan or Mortgage Again?

Unfortunately, if you are behind on your bills, your credit may already be bad. Bankruptcy will probably not make things any worse. If you do nothing, however, your credit will continue to get worse.

The fact that you've filed a bankruptcy can appear on your credit record for seven to ten years. HOWEVER, since bankruptcy wipes out your old debts, you are likely to be in a better position to pay your current bills, and if you PAY ALL OF YOUR BILLS EARLY OR ON TIME (not in the so-called "grace period") and you have a regular income, you may be able to get new credit for automobiles or mortgage refinancing at a reasonable rate within two years of your discharge (end of your case) in bankruptcy. Be very careful to pay all of your bills on time after you have filed for bankruptcy, your credit rating should be vastly improved within two years of discharge.

What about getting a mortgage? Bucks and Montgomery Counties have first time homebuyers programs. In the Bucks County program, you will attend a comprehensive workshop, plus some restrictions and guidelines. First, you need to discharge your unsecured debt if you cannot pay more than the minimums on the credit cards plus a mortgage payment. That’s where the bankruptcy comes in. After your discharge, you can contact the Mortgage Department of the Bucks County Housing Group at 215-598-3566 for more information. There are numerous programs for first time and low-income buyers. Contact the BCHG or the FHA for more information, or call us for help.

Will my employer or landlord find out about my bankruptcy?

Bankruptcy filings are public records. However, unless your employer or landlord is a creditor of yours, it is unlikely that they will have knowledge that you filed for bankruptcy. In the unusual case where a debtor owes his employer money, however, you must list the employer as a creditor. If the employer is a creditor, they will receive notice of the bankruptcy.

Can my employer fire me for filing bankruptcy?

Federal Law in 11 U.S.C. §525 prohibits governmental units and private employers from discriminating against you because you filed a bankruptcy petition or because you failed to pay a dischargeable debt.

Does the spouse of a married person also have to file for bankruptcy?

If only one spouse has debts, or if only one spouse has dischargeable debts, then your attorney may suggest that only one spouse file. However, if your bills are addressed to both of you, it is likely that those debts are "joint" debts, and a joint filing will be required to eliminate that debt. Attorney Laustsen's rates are the same for joint or individual filings.

Other Important Things to Know

Utility services Public utilities, such as the electric company, cannot refuse or cut off service because you have filed for bankruptcy. However, the utility can require a deposit for future service and you do have to pay bills, which arise after bankruptcy is filed.

Discrimination An employer or government agency cannot discriminate against you because you have filed for bankruptcy.

Driver's license If you lost your license solely because you couldn't pay court-ordered damages caused in an accident, bankruptcy will allow you to get your license back.

Co-signers- If someone has co-signed a loan with you and you file for bankruptcy, the co-signer may have to pay your debt.

What should I do to prepare for filing bankruptcy?

1. If you intend to file bankruptcy you must stop using your credit cards. If you borrow money with the specific intent of discharging the debt in bankruptcy instead of paying it back, the debt is not dischargeable. In addition, three specific circumstances are worth mentioning:

(a) Certain luxury purchases over $1500 within 60 days of the bankruptcy filing are presumed nondischargeable; (b) cash advances and balance transfers aggregating $1500 within 60 days of the bankruptcy filing are presumed nondischargeable; and, (c) debts involving materially false financial statements are nondischargeable under certain circumstances.

2. Don't transfer your assets to friends, family and business associates to protect the assets from your creditors. The transfer may be considered a “fraudulent conveyance.” If it is, you may lose both the property and your right to a bankruptcy discharge.

3. Don't destroy any business or financial records. You can lose your right to a bankruptcy discharge as a result.

4. Carefully choose the bills you pay. landlords, secured creditors (auto and mortgage loans), and utilities should be paid under most circumstances. If you pay a credit card debt that eventually will be discharged, you may be throwing money away. We will advise you on what debts should and should not be paid while you prepare to file a bankruptcy petition.

Can I file a bankruptcy for my debts, but not include my assets?

No. If you knowingly and fraudulently conceal an asset from the court you have committed a felony and can be fined up to $5,000, imprisoned for up to five years, or both.

Can I file bankruptcy to delay a creditor?

In a word: no. Rule 9011 of the Rules of Bankruptcy Procedure requires you or your attorney to certify that your petition is not filed "for any improper purpose, such as to harass or to cause unnecessary delay.." Bankruptcy is intended as a tool for dealing with debts that cannot otherwise be paid. You should not file a bankruptcy petition for the sole reason of delaying a creditor's actions.

Do I have to disclose all of my assets?

Yes. If you knowingly and fraudulently conceal an asset from the court you have committed a felony and can be fined up to $5,000, imprisoned for up to five years, or both. In addition, the court can deny you your discharge, or dismiss or convert your bankruptcy proceeding.

What is Mandatory Credit Counseling?

The new bankruptcy law requires that all filers complete two credit counseling sessions. These may be done in person at the Credit Counseling Center (no charge), or by telephone (fee is approximately $100. for both sessions). We suggest the Credit Counseling Center of Richboro 877-900-4222, a counseling agency approved by the U.S. Bankruptcy Trustee’s Office.

How long after I file for Chapter 7 bankruptcy will my credit be restored to “normal.”

If your credit report shows that after your bankruptcy case was discharged that you promptly paid all of your regular bills (utilities, phone, etc.) and your rent/mortgage and car payments, and that you have a verifiable income, you may be able to qualify for a mortgage loan at regular rates within two years or so. Prompt payment and verifiable income, with no credit card debt will go a long way towards producing a higher credit score. Timely payment is a must, however. Don’t depend on so-called “grace periods” or your credit will not improve. The bottom line: you can be back to “normal” credit within two years or so.

Can a credit card company garnish my wages?

No, not in Pennsylvania.

Can they place a lien on my house?

Yes, but only after they file a lawsuit against you and obtain a judgment. The judgment lien accrues interest and must be paid in full when the house is sold. Judgments may be removed in a bankruptcy proceeding under some circumstances. Be sure to have your attorney hire a title company to do a judgment and lien search on your real estate if you think that such debts exist. Generally, this will involve an additional charge of $85.00, if it is required.

Can creditors seize my bank account or take my tax refund?

Again, a creditor must sue you, obtain a court judgment and then obtain a writ of execution to seize your bank account.

In three situations your wages may be garnished before you are sued:

The IRS can take everything but about $100 a week from wages, and it can place a lien on your house or take your bank account without a court judgment.

The Department of Education or a state guarantee agency can garnish up to 10% of your wages if you're in default on a student loan.

A significant portion of your wages can be garnished to pay child support or alimony.

(New) A Pennsylvania landlord can obtain a garnishment against your pay if he/she successfully sues you in court for unpaid rent. Such garnishments can be removed in a bankruptcy.

YOUR RIGHTS UNDER THE

FAIR DEBT COLLECTION PRACTICES ACT

WHO IS A DEBT COLLECTOR?

A debt collector is anyone, other than the creditor, who regularly collects debts for others. This includes (1) collection agencies, (2) attorneys who regularly collect debts or foreclose mortgages, (3) companies that regularly acquire debts after they are allegedly in default (there are many companies which buy bad credit card debts, delinquent mortgages, etc.).

WHAT DEBTS ARE COVERED?

Your personal, family and household debts are covered under the FDCPA. This includes money owed for the purchase of a home, an automobile for general transportation, medical care, and non-business charge accounts. Business debts are not covered, even if you are personally liable.

HOW MAY A DEBT COLLECTOR CONTACT YOU?

A debt collector may contact you in person, by mail, telephone or telegram. However, it cannot be at inconvenient times or places. It cannot be before 8 a.m. or after 9 p.m., local time.

A debt collector may not contact you at work if it should know that your employer does not permit it.

A debt collector may not contact you if you are represented by an attorney and the collector knows it.

CAN YOU STOP A DEBT COLLECTOR FROM

CONTACTING YOU?

Yes. You can stop a collector from contacting you by writing a letter to the collection agency telling them to stop contacting you. Once the collector receives your letter, it may not contact you again except to state that there will no further contact or to inform you if the collector or creditor intends to take some specific action.

If you send such a letter, (1) keep a copy, (2) send it by means that generates a receipt (e.g., certified mail, fax, Federal Express), and (3) keep the receipt.

WHAT TYPES OF DEBT COLLECTION PRACTICES ARE PROHIBITED?

HARASSMENT AND ABUSE

1. Use or threat of violence or other criminal means to harm the physical person, reputation, or property of any person.

2. Use of obscene or profane language.

3. Telling anyone other than a credit bureau or your spouse that you owe the debt. Debt collectors cannot tell your employer, neighbor, credit references, or friends that you owe the debt. A collector may not contact such persons at all unless the collector doesn't know where you are and is trying to locate you, and cannot in any event tell them about the debt.

4. Calling on the phone repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number.

5. Calling you without identifying themselves.

6. Taking a postdated check and not informing you in writing that it will be deposited 3-10 business days prior to deposit.

7. Soliciting a postdated check for the purpose of threatening or instituting criminal prosecution.

8. Depositing or threatening to deposit any postdated check prior to its date.

9. Causing charges to be made to any person for communications by concealment of the true purpose of the communication, e.g., collect telephone calls.

MISREPRESENTATION AND DECEPTION

10. The false representation or implication that the debt collector is vouched for, bonded by, or affiliated with the United States or any State.

11. Falsely representing the amount of debt.

12. Adding unauthorized charges to debt. The addition of interest, attorney's fees, collection charges, and other similar items should be examined carefully.

13. The false representation or implication that any individual is an attorney or that any communication is from an attorney.

14. The representation or implication that nonpayment of any debt will result in the arrest or imprisonment of any person or the seizure, garnishment, attachment, or sale of any property or wages of any person unless such action is lawful and the debt collector or creditor intends to take it.

15. Threatening to take any action that cannot legally be taken or that is not intended to be taken. For example, some collectors threaten to report a debtor to the Internal Revenue Service if payment is not forthcoming.

16. Communicating or threatening to communicate to any person credit information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed. One common type of false communication is changing the default date used to compute the seven-year period a bad debt can remain on your credit report. A collection agency or bad debt buyer is required to use the same date as the original creditor. Often, they use a newer date, which allows the entry to remain on your credit report longer.

17. The use or distribution of any written communication which simulates or is falsely represented to be a document authorized, issued, or approved by any court, official, or agency of the United States or any State, or which creates a false impression as to its source, authorization, or approval.

18. The false representation or implication that documents are legal process.

19. Using a false name.

20. The false representation or implication that documents are not legal process forms or do not require action by the consumer ("you don’t have to show up in court").

21. The false representation or implication that a debt collector operates or is employed by a credit bureau.

22. Sending you a collection message by post card.

23. Putting any language or symbol, other than the debt collector's address, on any envelope, including the collector’s name, unless it does not indicate that he is in the debt collection business.

WHAT INFORMATION ABOUT A DEBT MUST A DEBT COLLECTOR PROVIDE TO YOU?

Within (5) Five days after you are first contacted, the collector must send you a written notice stating the amount of the debt; the name of the creditor to whom the debt is owed; and explaining how to dispute the debt.

WHAT CAN YOU DO IF A DEBT COLLECTOR VIOLATES THE LAW?

You have the right to sue the collector in state or federal court within ONE YEAR of the violation. You may recover up to $1,000 statutory damages, any actual damages, plus attorney’s fees and court costs. Actual damages may include excessive amounts paid, mental distress, and damage to credit. In a class action, the debt collector may be liable for 1% of its net worth or $500,000, whichever is less, plus actual damages. Contact me at 215-230-4250 for a free evaluation of your complaint against a debt collector.

IN ORDER TO PROTECT YOUR RIGHTS:

1. Save copies of all letters, notices and correspondence you get from debt collectors. If you send them to us, we will analyze them for you without charge.

2. Save all voice mails and telephone messages from debt collectors. Rerecord them onto a cassette.

3. When dealing with a debt collector, make careful notes of whom you talk to and what they say.

4. Dispute in writing (not orally) all inaccurate statements and notices you get from a creditor or debt collector. Send a confirming letter after any oral conversations. Send correspondence by means that will generate proof of receipt (fax, certified mail, etc.).

AFTER BANKRUPTCY DISCHARGE…..

I hardly owe anything, but my credit score isn’t that great, why?

Some lenders look at your total credit limit on each account (credit cards, store charges, gas cards, etc.) to decide whether to give you credit and at what interest rate. If you have ten Visa cards with a $5,000 limit on each, and five have a zero balance and the other five have $100 each, your actual debt is $500. However, some lenders will rate you on the basis of $50,000 of debt because you could go out tomorrow and charge that much. Bottom line: close all inactive accounts, don’t apply for lots of cards and pay your bills early. Pay more than the minimum amount.

I was refused a credit card or a loan—what can I do?

By law the lender must tell you if the decision was based on a credit report. The lender must give you the name and address of the credit-reporting agency. This is true even if the credit report was only one factor in the decision. Write to the credit-reporting agency. State that you were denied credit, insurance, or employment by (name) on (date) based on a report from them, and you want a copy of your report. By law the credit reporting agency must give you a free copy if you request it within 30 days after you were turned down based on a report from that credit reporting agency.

What if my car dies and I can’t get credit for another one? Can I get a car for $1,000 or less?

Ellen Simon, a financial expert for the Associated Press, says “Is it possible to find a car for less than $1,000.?” She advises you to look hard and get help from a mechanic you trust. Mark Theobald, auto expert says that many cheap cars are being sold because they won’t pass inspection or because the owner won’t pay to have them fixed. David Champion of Consumer Reports says some of the best picks for an inexpensive car are Honda Accords, Toyota Corollas and Camry as well as Ford Taurus are good choices for drivers over 19. Avoid cars with expensive parts or V-8 engines, like Mercedes, BMW, Lexus and other imports, and avoid cars that are easy to steal, like the 1995 Saturn SL.

How do your find them? Let your friends or family know that you’re looking. Make a list of the models and makes that you want. Check the bulletin boards at retirement homes. Often people move into assisted living residences and stop driving. Some great low mileage cars can be found this way.

Have your car checked by a mechanic. This is crucially important! Expect to pay about $100. for this service. Be sure to also call the U.S. Department of Education Auto Safety Hotline at 800-424-9393 to see if there are any recalls on the car that you’re considering. The Federal Trade Commission suggests that you ask the owner for maintenance records. If the records are not available, ask for the name of the dealership or the garage where the maintenance and repair was done, and ask them about the car.

Car Fax www.carfax.com or Experian Automotive www.autocheck.com will sell you a vehicle history report that will tell you if the car has ever been the subject of an insurance claim—totaled, flooded or burned.

Ellen Simon also suggests that once you have bought the car, check on the insurance that the state requires. You must have liability insurance, but comprehensive insurance is usually a waste of money on an inexpensive car. Use an anti-theft device like the Club. You can find them on E-Bay for less than $10.00

Be patient and thorough. You’ll find your inexpensive car if you are willing to shop around.

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

Can you afford your house payments?

The National Low Income Housing Coalition says that “most Americans who rely on just a full-time job earning the federal minimum wage cannot afford the rent and utilities on a one- or two-bedroom apartment.”

The average wage in Pennsylvania is $13.82/hr. For a two-bedroom rental alone, the typical worker must earn at least $15.37 an hour - nearly three times the federal minimum wage, the NLIHC said in its annual "Out of Reach" report.

That figure assumes that a family spends no more than 30 percent of its gross income on rent and utilities - anything more is generally considered unaffordable by the government.

Because of low wages, many poor Americans are paying more than they can afford because wage increases haven't kept up with increases in rent and utilities.

The median hourly wage in the United States is about $14, and more than one-quarter of the population earns less than $10 an hour, the report said.

"A lot of people continue to be squeezed out," said Judy Levey, executive director of the Homeless and Housing Coalition of Kentucky. "Housing here is relatively inexpensive, but because the wages are so low, people can't afford housing,"

The report quoted federal Bureau of Labor Statistics data that showed hourly wages rising about 2.6 percent over the past year, slower than the 2.9 percent rise in rents recorded in the Consumer Price Index.

Utility costs appear to be rising at a faster rate than rents. Because of stagnant wages and the costly housing situation for the nation's poor "has gotten worse over the last year," he said.

In Pennsylvania, an extremely low income household (earning $17,792, 30% of the Area Median Income of $59,306) can afford monthly rent of no more than $445, while the Fair Market Rent for a two bedroom unit is $719.

A minimum wage earner (earning $5.15 per hour) can afford monthly rent of no more than $268.

An SSI recipient (receiving $591 monthly) can afford monthly rent of no more than $177, while the Fair Market Rent for a one-bedroom unit is $596.

In Pennsylvania, a worker earning the Minimum Wage ($5.15 per hour) must work 107 hours per week in order to afford a two-bedroom unit at the area's Fair Market rent.

The Housing Wage in Pennsylvania is $13.82. This is the amount a full time (40 hours per week) worker must earn per hour in order to afford a two-bedroom unit at the area's Fair Market rent.

----National Low Income Housing Coalition

IF YOU HIRE ATTORNEY LAUSTSEN TO REPRESENT YOU IN A CHAPTER 7 OR 13 CASE, you will read and sign a representation agreement that will explain all charges for legal services and filing fees.

Breaking News: Credit Card Companies Changing the Rules!

According to the New York Times, credit card companies are changing the terms of their accounts at a historically high rate.

Consumers who carry balances from month to month and pay finance charges regularly have traditionally thought that their interest rates should stay the same. Lately, however. “lenders employ new tactics to extract more and bigger penalties for even the slightest financial transgressions. In the last few years, lenders have more frequently raised customers' rates because of slip-ups elsewhere, like late payment of a phone or utility bill, or simply because they felt a customer had taken on too much debt.”

This practice, according to the New York Times, is called universal default. “Under universal default, the major card companies have increased the fee charged to cardholders for being even an hour late with a payment to $39, from $10 or less.”

A typical household has eight cards with $7,500 on them, and the consumers tend to roll balances over from month to month, never paying in full.

Credit card interest rate is theoretically correlated to the likelihood that a borrower will make good on his debts. Lenders typically measure those odds by a three-digit number known as a FICO score.

Credit scores are used to determine everything from how much a person can borrow to how much he or she pays for life insurance to whether he or she can rent a home. A utility company in Texas even experimented last summer with using credit scores to set prices for electricity.

"Lenders use that score, almost like a thermometer, to determine if they're going to grant credit or not," said Tom Quinn, a spokesman for Fair Isaac. He estimated that his company had calculated a credit score for about 75 percent of American adults.

The average FICO score is 720, he said. A score below 620 lands a consumer in the riskiest category, known as subprime, and virtually ensures the highest borrowing rates, if the consumer can obtain any credit at all. Credit reports generally note only those payments made at least 30 days late.

As many clients have discovered, their “minimum balance” charges can double or triple overnight without any late charges—but rather because the credit card company determines that a particular consumer has too much debt. Often, this increase in interest payment can push an otherwise responsible and current debtor into bankruptcy.

NEW LAW GUARANTEES

FREE CREDIT REPORTS

Soon you'll be able to get your credit report for free. A recent amendment to the federal Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies to provide you with a free copy of your credit report, at your request, once every 12 months, from www.annualcreditreport.com. The Federal Trade Commission (FTC), the nation's consumer protection agency, has prepared a brochure, Your Access to Free Credit Reports, explaining your rights and how to order a free annual credit report.

A credit report contains information on where you live, how you pay your bills, and whether you've been sued, arrested, or filed for bankruptcy. Nationwide consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home.

Know the difference between “Credit Report” and “Credit Report”. While you are entitled to a free annual credit report, your credit “score” or FICO score is not free. Financial expert Mary Hunt says,” as for your credit score, you must pay for it. And any company that offers it to you for free is going to make you pay in some other way.” So, report-free, score-pay.

HOW DO I ORDER MY FREE REPORT BY MAIL?

Hunt says, “the only place you should ever go to get your free copies (of your credit report) is www.annualcreditreport.com, or by completing the Annual Credit Report Request Form and mailing it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

When you order, you need to provide your name, address, Social Security number, and date of birth, as well as your spouse’s name and Social security Number. To verify your identity, you may need to provide some information that only you would know, like the amount of your monthly mortgage payment.

You need to provide your name, address, Social Security number, and date of birth. If you have moved in the last two years, you may have to provide your previous address. To maintain the security of your file, each nationwide consumer reporting company may ask you for some information that only you would know, like the amount of your monthly mortgage payment. Each company may ask you for different information because the information each has in your file may come from different sources. www.annualcreditreport.com is the only authorized source for your free annual credit report from the three nationwide consumer reporting companies. www.annualcreditreport.com and the nationwide consumer reporting companies will not send you an email asking for your personal information. If you get an email or see a pop-up ad claiming it’s from www.annualcreditreport.com or any of the three nationwide consumer reporting companies, do not reply or click on any link in the message — it’s probably a scam. Forward any email that claims to be from www.annualcreditreport.com or any of three consumer-reporting companies to the FTC’s database of deceptive spam at spam@uce.gov. www.annualcreditreport.com or any of three consumer-reporting companies also will not call you to ask for your personal information.

Q: Why would I want to get a copy of my credit report?

A: You may want to review your credit report:

because the information it contains affects whether you can get a loan — and how much you will have to pay to borrow money;

to make sure the information is accurate, complete, and up-to-date before you apply for a loan for a major purchase like a house or car, buy insurance, or apply for a job;

to help guard against identity theft. That’s when someone uses your personal information — like your name, your Social Security number, or your credit card number — to commit fraud. Identity thieves may use your information to open a new credit card account in your name. Then, when they don’t pay the bills, the delinquent account is reported on your credit report. Inaccurate information like that could affect your ability to get credit, insurance, or even a job.

Q: How long does it take to get my report after I order it?

A: If you request your report online at www.annualcreditreport.com, you should be able to access it immediately. If you order your report by calling toll-free 877-322-8228, your report will be processed and mailed to you within 15 days. If you order your report by mail using the Annual Credit Report Request Form, your request will be processed and mailed to you within 15 days of receipt.

Whether you order your report online, by phone, or by mail, it may take longer to receive your report if the nationwide consumer reporting company needs more information to verify your identity.

There may be times when the nationwide consumer reporting companies receive an extraordinary volume of requests for credit reports. If that happens, you may be asked to re-submit your request. Or, you may be told that your report will be mailed to you sometime after 15 days from your request. If either of these events occurs, the nationwide consumer reporting companies will let you know.

WHY IS A CREDIT REPORT USEFUL IN A BANKRUPTCY?

In preparing a bankruptcy filing, it is useful to know all creditors that have reported that you owe money to them. You may have forgotten these creditors, or they may be subject to a dispute. In any event, we want to list these debts in your bankruptcy so that they can be discharged. If you think that there are old debts that you may have forgotten about, order a report.

WHY ORDER A CREDIT REPORT AFTER A BANKRUPTCY?

We suggest that you order a credit report about four months after your bankruptcy case has been discharged. All of your unsecured debts should show as ”discharged in bankruptcy” on the report. If there are errors, and there occasionally are, we will show you how to correct them so that your credit report can get “cleaned up.”

If you don’t get a free credit report, you can order a report directly from a consumer reporting company. Send a money order for $9 for a copy of your report within a 12-month period.

To buy a copy of your report, contact:

1. Equifax

www.equifax.com

2. Experian

www.experian.com

3 Trans Union

www.transunion.com

A study released by the U.S. Public Interest Research Group in June 2004 found that 79% of the consumer credit reports surveyed contained some kind of error or mistake.[3] As a result, many consumers frequently invoke their rights under the FCRA to review and correct their credit reports.

Credit Reporting Agencies, as an information furnisher, as defined by the Fair Credit Reporting Act, are companies that provide information to consumer reporting agencies. Typically, these are creditors, with which a consumer has some sort of credit agreement (credit card companies, auto finance companies and mortgage banking institutions, to name a few). However, other examples of information furnishers are collection agencies (third-party collectors), state or municipal courts reporting a judgment of some kind, past and present employers and bonders.

Under the FCRA, these information furnishers may only report to a consumer's credit report under the following guidelines:

1. They must provide complete and accurate information to the credit rating agencies.

2. The duty to investigate disputed information from consumers falls on them.

3. They must inform consumers about negative information, which has been or is about to be placed on a consumer's credit report within 30 days.

You should follow the instructions in your credit report that will show you where to mail your request for investigation of a disputed account. Send your request in writing to the credit report company on which the disputed item appears. Include copies of all documents that you believe support your position that you do not owe that particular debt (or portion of debt) listed on the credit report. You should receive a written response within thirty days.

Protect Your Privacy

You can reduce marketing material and credit applications that you receive in the mail, b telephone or email by writing to the Direct Marketing Association. Provide your name, address and telephone number and email address with your request:

Mail Preference Service

C/o Direct Marketing Association

PO Box 643

Carmel, NY 10512

Telephone Preference Service

C/o Direct Marketing Association

PO Box 1559

Carmel, NY 10512

Email Preference Service

www.dmaconsumedrs.org/consumerassistance.html

Identity Theft

Identity theft is a growing problem. If someone has used your identification to establish credit, report the incident as quickly as possible to each of the credit reporting agencies listed below and ask that a fraud report be placed on your file.

Experian

Equifax

TransUnion

(check the internet for current telephone numbers—these numbers change frequently).

Important Consumer Information

Protect Your Identity

Never, never give out your bank or credit card number to anyone on the internet unless you have initiated the contact by logging on to a known merchant’s URL. DO NOT respond directly to emails purportedly from “PayPal” or (Merchant’s Name). Communicate only through the merchant’s known URL.

Never give out your bank card, credit card, social security number or financial information unless you began the transaction and you reason to trust the merchant.

Mail Order Fraud

Remember that reliable mail order companies will not call you to obtain personal information. Never respond to an email by clicking on it. Type the known URL into your browser.

Your U.S. Mail

Have a reliable neighbor pick up your mail while you are away. Be sure you shred all credit card offers you receive in the mail, don’t put it in the trask unless well shredded.

Memorize passwords for your computer, PDA, and mobile phone. Don’t use your birthday or social security number. Do not keep your passwords in your purse, wallet or your car.

Subscribe to a credit reporting agency and check the report regularly.

Sweepstakes

Most sweepstakes scams are ways that crooks use to get your personal information—to steal your identity. If you are really a winner of a sweepstakes you will not be required to pay a fee or disclose your personal information to the sweepstakes company.

Vacation Schemes

Free vacations are usually high pressure scams to entice you to buy a time share. If you take the “free trip” you may required to pay service charges or buy membership in a travel club or attend a 2-hour sales pitch. Do not respond to any mail or email promising lottery winnings. You’ll be on the scammer’s hit (victim) list forever.

Medicare Rx Coverage Scams

Don’t believe a telephone salesperson who tells you that you must join their Medicare supplement plan or you'll lose your other Medicare benefits. That is an illegal and deceptive scam. The Medicare prescription drug benefit is voluntary. It supplements your other Medicare benefits.

Unsolicited Checks and Packages

If you receive an unexpected check, shred it. If you get a package from an unknown sender, don’t open it, return it marked “refused delivery.”

Jury Duty

Don’t fall for the Jury Duty scam. Don’t disclose your birth date and social security number, and don’t be intimidated by someone on the phone who tells you that you could be arrested for not appearing. Call your local courthouse and ask for the Court Administrator’s office to verify all jury duty matters.

Rebuilding Your Credit After a Bankruptcy

CREDIT CARDS

Millions of people get along just fine without credit cards. If you decide that you really need a card—for example, you travel quite a bit and need a card to reserve hotel rooms and rental cars—then you can apply for a credit card right after you receive your discharge in bankruptcy. Your discharge will arrive usually about six months from the time you file your chapter 7 paperwork, or within a few months of the end of your chapter 13 plan. Typically, you will receive pre-approved credit card offers at that time. Shop around for the best deal. Don’t feel that you have to take the first offer that you get. If you have a very low income or no income, you probably won’t get any offers for “regular” credit cards. You may wish to consider applying for a “secured” credit card. Here’s how a secured card works: You deposit a sum of money with a bank and are given a credit card with a credit limit for a percentage of the amount you deposit—as low as 50% and as high as 100%. Depending on the bank, you'll be required to deposit as little as a few hundred dollars or as much as a few thousand.

Unfortunately, secured credit cards can be expensive. Many banks charge application and processing fees in addition to an annual fee. Also the interest rate on secured credit cards is often close to 22%, while you earn only 2% or 3% on the money you deposit. And some banks have eliminated the grace period—that is, interest on your balance begins to accrue on the date you charge, not 25 days later. If you find a card with a grace period and pay your bill in full each month, you can avoid the interest charges.

Many secured credit cards have a conversion option. This lets you convert the card into a regular credit card after several months or a year, if you use the secured card responsibly. Because regular credit cards typically have lower interest rates and annual fees than secured credit cards, it's usually preferable to obtain a card with a conversion option.

To find a bank offering a secured credit card:

• call some local banks

• send $4 to Bankcard Holders of America, 524 Branch Drive, Salem, VA 24153, and request "Building Credit: Banks Across the Nation Offering Secured Credit Cards,"

Something New! Prepaid Credit Cards

A new development that provides a useful tool for those whose credit is impaired is the PREPAID CREDIT CARD. You can buy a prepaid credit card at the supermarket and put a balance on the card like a deposit. (this works like a telephone card). Then, if you need to have a credit card number to make hotel reservations, for example, you can give the hotel your card number and then when you check in you can pay cash.

OPEN DEPOSIT ACCOUNTS

Creditors look for bank accounts as a sign of stability. Quite frankly, they also look for bank accounts as a source of how you will pay your bills. The overwhelming majority of financial transactions in our society are done by check. If you fill out a credit application and cannot provide a checking account number, you probably won't be given credit.

A savings or money market account, too, will improve your standing with creditors. Even if you never deposit additional money into the account, creditors assume that people who have savings or money market accounts use them. Having an account reassures creditors of two things: You are making an effort to build up savings, and if you don't pay your bill and the creditor must sue you to collect, it has a source to collect its judgment.

Just because you've had poor credit history, you shouldn't be denied an account. Shop around and compare fees, such as check writing fees, ATM fees, monthly service charges, the minimum balance to waive the monthly charge, interest rates on savings and the like.

PAY YOUR UTILITY BILLS EARLY

One quick way to rebuild credit is to pay your utility bills early. Yes, I said “early.” If you get an electric bill on the first of the month that is “due” on the 20^th, you should pay it in full upon receipt. Utilities almost always report to the credit bureaus. Prompt payment will get you a figurative “gold star.”

PAY YOUR MORTGAGE OR LEASE EARLY

Likewise, pay your mortgage or lease upon receipt. If you have a mortgage, pay an additional amount each month (where the payment coupon provides for “additional capital”). Your additional payment need not be a large amount, it can be as little as $25.00 and that may be reported in a positive light on your credit bureau report.

OBTAIN A BANK LOAN

One way to rebuild your credit is to take some money you've saved and open a savings account. You ask the bank to give you a loan against the money in your account. In exchange, you have no access to your money—you give your passbook to the bank and the bank won't give you an ATM card for the account—so there's no risk to the bank if you fail to make the payments. If the bank doesn't offer these types of loans, apply for a personal loan and offer either a cosigner or to secure it against some collateral you own.

No matter what kind of loan you get, be sure you know the following:

• whether the bank reports your loan payments to credit bureaus. This is key; the whole reason you take out the loan is to rebuild your credit. If a bank doesn't report your payments to a credit bureau, there's no reason to take out a passbook savings loan.

• the minimum deposit amount required for passbook loans. Some banks won't give you a loan unless you have $3,000 in an account; others will lend you money on $50. Find a bank that fits your budget.

• the interest rate. The interest rate on the loan is usually much higher than what people with good credit pay. You will probably pay between 8% and 12% interest on the loan. Yes, this means you'll lose a little money on the transaction, but it can be worth it if you're determined to rebuild your credit.

• the maximum amount you can borrow. On passbook loans, banks won't loan you 100% of what's in your account; most will loan you between 80% and 90%. On other loans, you will face a maximum on how much you can borrow.

• the repayment schedule. Banks usually give you one to three years to repay the loan. Some banks have no minimum monthly repayment amount on passbook loans; you could pay nothing for nearly the entire loan period and then pay the entire balance in the last month. Although you can pay the loan back in only one or two payments, don't. Pay it off over at least 12 months so that monthly installment payments appear on your credit file.

I strongly recommend that you purchase Rebuild Your Credit, Solve Your Debt Problems, Nolo Press. The paperback book contains lots of good advice on how to get and maintain good credit. Order line is 1 800-992 6656.

If you need a credit card for travel purposes (to make reservations), consider buying a prepaid Mastercard or Visa. These cards work just like phone cards—you “charge them up” with money and they work just like a bank card or credit card. Just remember that the amount on the card is what you deposit, minus any service charges that the card may impose. The best way to use them is for making reservations and then pay your bill with cash, traveler’s check, or money order.

ATTORNEY DAVID LAUSTSEN will provide you with counseling on whether bankruptcy is your best option. If bankruptcy is not the right answer for you, he will suggest a range of other alternatives. He will also evaluate your situation to determine if Chapter 7 or Chapter 13 is appropriate for your situation.

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David Laustsen, Your

Bankruptcy Attorney

As with any area of the law, it is important to carefully select an attorney who will respond to your personal situation. Your attorney should not be too busy to meet you individually and to answer questions as necessary. With over a decade of experience in bankruptcy matters, Attorney Laustsen has the experience to help you get a fresh start, and do so at a reasonable cost.

You should not hire an attorney unless he or she agrees to represent you throughout the case, and attend all routine hearings. You and Mr. Laustsen will sign a Representation Agreement that states the charges for legal services involved in your bankruptcy. Attorney Laustsen will attend all meetings with you, and will send you regular correspondence notifying you of the progress of your case. Mr. Laustsen's experienced staff is available to answer questions, and you can always talk to the attorney personally.

Attorney Laustsen is a federally-designated “debt relief agency.”

He represents people who wish to file for bankruptcy.

PREPARE FOR YOUR MEETING WITH ATTORNEY LAUSTSEN

Be prepared to answer the following questions:

What types of debt are causing you the most trouble?

What are your significant assets?

How did your debts arise and are they secured?

Is any action about to occur to foreclose or repossess property or to shut off utility service?

What are your goals in filing the case?

What is your monthly gross income and the monthly gross income of each member of the household?

Our job is to look at your total financial picture to help you get the maximum debt relief possible under the law--to get you a Fresh Start so that you can unload that debt burden once and for all.

Free Appointment, Low Rates, Friendly Personalized Service

ATTORNEY DAVID LAUSTSEN'S OFFICE

350 S. Main Street, Suite 105

Penn's Court

DOYLESTOWN, PA 18901

215-230-4250

* 215-230-4250

215-230-4250

Take this map with you when you go to you appointment.

Remember: The law often changes. Each case is different. This brochure and web domain is meant to give you general information and not to give you specific legal advice. Please note that contact information contained herein is provided as a service and a convenience to you. David Laustsen is not affiliated with any of these services and cannot guarantee their effectiveness.

Prefiling Requirements-- Things you will need to do after you see the lawyer.

Two credit counseling sessions are required for completion of a bankruptcy. To file your initial paperwork and start your case, you must complete at least the first counseling session. The credit counselor will forward the completion certificate to our office by fax or email. The certificate must be included in your filing or it will not be accepted by the Bankruptcy Court

Required Documents: Credit counseling

___Completion certificate for either Credit Counseling Center of Richboro or other certified Counselor. Tell the counselor that your lawyer is David Laustsen, 350 S. Main Street, Suite 105, Penn's Court, Doylestown, PA 18901 215-230-4250.

• Counseling may be free if you attend in person at the Credit Counseling Center 832 Second Street Pike, Richboro, PA 18954. 215 396-1880.

• If you elect to do your counseling by telephone (2 sessions) you will be required to pay the Credit Counseling Center, Richboro for the service. 215 396-1880.

Your Checklist: Other Documents Required to Prepare Your Filing

___Copies of Seven (7) consecutive months of pay stubs for every earner in the household.

__All credit card, medical, dental, utility, other bills showing amount owed, address and account number. Please provide details of any cash advances, balance transfers or purchases of luxury items within 90 days of filing. You must list all of your debts. If we must add creditors to your case after the filing date, there is an additional charge of $40.00 for preparation and the filing fee. Please YOU WILL NEED AN ORIGINAL SOCIAL SECURITY CARD FOR EACH PERSON FILING.

If you have lost yours, you MUST apply now for a duplicate with Social Security—it is a mandatory item to be shown to the Trustee before your hearing.

___Collection agency letters

___Statement for each auto loan showing balance owed. Any repossession paperwork?

___Statement for loans for student loans, mobile home, motorcycle, 4- wheeler, etc.

___Statement on home loan showing balance on mortgage (first and second, home equity line of credit, if applicable) (include statement for all Home Equity Lines of Credit).

___Settlement statement on house purchase (HUD-1 sheet). Settlement sheets for all homes bought or sold in past 5 years.

___Copy of information on automobile accident lawsuits.

___Copy of all lawsuits filed against you, including foreclosure.

___Copy of tax returns for last THREE years (federal 1040 form--include all pages.) (if you have not filed taxes because of low income, please advise us in writing).

___If you collect Social Security, SSD, SSI, welfare, pensions annuities—statement for each.

___Copy of deed to house, or lease for home (only if in arrears).

___Child Support Orders, if any

___Copy of all judgments or liens, from civil cases or tax judgments or liens

____Representation Agreement and payment to David Laustsen, Esquire.

_____Time Share Documents, if any.

If you have a proprietorship business, in addition to the above you will need to provide copies of:

____monthly business profit and loss statements prepared by an accountant for the past EIGHT (8) months.

Finally…. You will need:

____all personal and business bank statements for 8 months prior to filing and including the date of filing.

Statement required under 11 USC §527(b)

IMPORTANT INFORMATION ABOUT BANKRUPTCY ASSISTANCE SERVICES FROM AN ATTORNEY OR BANKRUPTCY PETITION PREPARER.

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 PREPARER 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 your attorney should analyze your eligibility for different forms of debt 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 Petitions, 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. You will have to pay a filing fee to the bankruptcy court. Once your case starts, you will have to attend a required first meeting of the creditors where you may be questioned by a court official called a “trustee” and by creditors.

If you choose to file a chapter 7 case, you may be asked by a creditor to reaffirm the debt. You may want help deciding whether to do so. A creditor is not permitted to coerce you into reaffirming your debts. If you choose to file a chapter13case in which you repay your creditors what you can afford over 3 to 5 years, you may also want help with preparing your chapter 13 plan and with the confirmation hearing on your plan which will be before a bankruptcy judge. If you select another type of relief under the Bankruptcy Code other than chapter 7 or Chapter 13, you will want to find out what should be done from someone familiar with that type of relief.

Your bankruptcy case may also involve litigation. You are generally permitted to represent yourself in litigation in bankruptcy court, but only attorneys, not bankruptcy petition preparers, can give legal advice.”