The Debate Over Bankruptcy: Debt Warriors Use Google to Argue the Facts

Over the last few months, Debt Warriors have been debating the burdens of Bankruptcy with two Bankruptcy Attorneys.

These Attorneys  launched a web war, by attacking a blog that I did in February of 2009. These Attorneys took our words out of context so here’s the truth…

After Googling Bankruptcy, above where my results

If you google the word “Bankruptcy” you’ll that find the #1 (non-sponsored) link,  is an article by Dave Ramsey called , “The Truth About Bankruptcy“ (click the link to open in a new window).

In his Article, Dave Ramsey does Bankruptcy Lawyers no favors.  If you read Dave’s Article, you’ll notice that Mr. Ramsey is against Bankruptcy.  Dave Ramsey should know because he’s been through the nightmare of Bankruptcy.

Washington Post Reporter Blast New Bankruptcy Act

Michelle J. White is professor of economics at the University of California, San Diego, and research fellow for the National Bureau of Economic Research did an article titled, “Bankruptcy Reform Gave Creditors Too Much“.

In her Washington Post article,  Ms. White accurately points some of  Bankruptcy’s Burdens:

• “Under BAPCPA, both bankruptcy procedures have been retained, but debtors’ right to choose between them has been abolished.
• To file under Chapter 7, debtors’ incomes must now pass a “means test” that requires that their incomes be below a cutoff level that is based on median family income in their state. If their incomes are above the cutoff, they must file under Chapter 13 if they file for bankruptcy at all.
• Debtors who file under Chapter 13 must use all of their incomes above a consumption allowance for five years to repay.
• BAPCPA also instituted new requirements that more than double the costs of filing, from less than $1,000 to around $2,500. It also reduced the amount of debt that is discharged in bankruptcy, lengthened the minimum period that must elapse between filings, and required debtors to undergo credit counseling and take a debt management course.

It cost $1,000 to $2,500 to file Bankruptcy?

That’s a lot of money.  As you can see, filing Bankruptcy will cost you a lot more than ordering the Debt Warriors Arsenal, and negotiating your debt for yourself.   That’s why Bankruptcy Attorneys are attacking Debt Warriors.  They’re scarred that we will take clients away from them.  And I hope we do 🙂

You don’t have to trust what I say.  But before you file Bankruptcy, google it first and see what Bankruptcy Judges,  Dave Ramsey, Michelle J. White,  Elizabeth Warren and other people have to say about how bad the new Bankruptcy Law really is.

3 Reasons NOT To Kill Yourself Over Debt Stress

Wanda Dunn, a Pasadena, California Resident was found dead in her burning home (pictured left). Ms. Dunn was the lone perpetrator but, Foreclosure is suspected to be her motivation for suicide. My post today is a plea, for those facing Foreclosure or struggling to deal with massive amounts of Debt.

Here are DEBT WARRIORS Top 3 reasons NOT to kill yourself over Debt Stress.

1. You CAN force your Mortgage Lender “Produce The Note”. This is a secret strategy that is helping thousands of Americans save themselves from Foreclosure. DEBT WARRIORS have shared this strategy before but, you may have missed it.

CNN’s Greg Hunter goes into more details about Producing the Note in this video.

2. You have the right to an Attorney. After working in 2 Law Firms, I’ve realized that there’s nothing that shows you mean business, like informing Creditors and/or Debt Collectors that you’ve retained an Attorney.

Did you know that Section 805c (2) of the Fair Debt Collections Practices Act [FDCPA] prevents a Debt Collector from contacting you once they are aware that you’ve retained an Attorney?

” If the debt collector knows the consumer is represented by an attorney with respect to such debt and has knowledge of, or can readily ascertain, such attorney’s name and address, unless the attorney fails to respond within a reasonable period of time to a communication from the debt collector or unless the attorney consents to direct communication with the consumer;” ~ Source: FTC.gov

3. “This too shall pass.” I remember hearing this quote from a wise old man. I was in my early 20’s, and I was struggling with what (I thought) were massive amounts of Debt. Now as an old man myself 🙂 I pass that golden wisdom onto anyone who’s going through a hard time financially.

There is a Statue of Limitations [SOL] for Debt Collection. It varies by State, and other factors that we reveal in OPERATION TWO [TIME-CHECK], located in the DEBT WARRIORS ARSENAL™. Once clock on the Statue of Limitations has expired you no longer are responsible for paying the back the debt. This does NOT mean that the Debt Collector will stop trying to collect.

It’s important that you know your many, many RIGHTS as a Debtor. This is a corner-stone of the DEBT WARRIORS strategy. Coaching you to settle your Debt – FOR YOURSELF, by informing you of your RIGHTS and possibly saving life.

Please don’t kill yourself over debt? Why? Because as an American Debtor, you have MANY rights that are protected by the U.S. Government. In addition, there are many tactics available to you, to allow you to Settle Your Debt – for yourself.

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DEBT WARRIORS™ are not Attorneys. The information on this blog, should not be considered legal advice.
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Filing Bankruptcy: Bad Mistake, Biased Decision

Janice was drowning in debt. She had $1,000’s of store credit card debt. You know the kind of credit cards that give Consumers 10% off of purchases? The problem is those same cards generally charge 20% in interest. What’s worse is that the interest rate on store credit cards is non-negotiable 90% of the time. I consider store credit cards ‘SUB-PRIME’ and a bad financial decision.

So Janice says out loud in frustration, “I’m thinking about saying forget it and filing for bankruptcy and being done with it”.

Janice didn’t know that the Bankruptcy Abuse and Prevention Act would make her filing more difficult than she had ever considered. I asked Janice if she knew that the Bankruptcy Laws had changed. Janice’s response was a quick “no”. Janice didn’t know the changes in the Bankruptcy Law and what she didn’t know was bound to hurt her. So I immediately intervened.

The Bankruptcy Abuse Prevention Act

“The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which opens a new era in the history of bankruptcy law and practice, was passed by Congress and signed into law by President Bush on April 20, 2005. ” ~ Source: United Stated Department of Justice

The Bankruptcy Abuse Prevention Act gives the U.S. new responsibilities in a number of areas, including:

1. The new “means test” to determine whether a debtor is eligible for chapter 7 (liquidation) or must file under chapter 13 (wage-earner repayment plan). This means that there is no such thing as a clean sweep bankruptcy anymore. The person filing bankruptcy has to:

A. Sell everything [liquidate] or

B. Payback the creditors through by wage garnishment

2. Supervising random audits and targeted audits to determine whether a chapter 7 debtor’s bankruptcy documents are accurate. This means that now the person filing bankruptcy has to be audited to ensure that they really need the protection and not trying to defraud the US Government.

3. Credit counseling that an individual must receive before filing bankruptcy and Financial education that an individual must receive before discharging debts in bankruptcy court. So you have to get debtors education before you are even allowed to file bankruptcy in the US.

Ok, so now Janice understands bankruptcy. She now knows how much of a pain it could be to try to undergo filing bankruptcy.

Bankruptcy Is Often Based On Bad Decisions

Cognitive Bias, is a big fancy word for the thoughts that lead to bad decisions. Bad decisions are often the result of ignorance, confusion, uncertainty and urgency. Janice wanted to get out of debt right now. Bankruptcy seems like a solution to many from a distance.

Who Says There Are No Short-Cuts?

I told Janice that Debt Settlement is safe, and works if she does it for herself.  I showed Janice that the bankruptcy laws were changed to reduce bankruptcy. I informed Janice that getting out of debt was as simple as following the short-cuts provided by the U.S. Government. Getting out of debt is as easy as following the law.

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Don’t Let Debt Defeat you!

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