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Being in debt is a simple equation – income is not enough to cover expenses including paying off the bills.
With that in mind, lots of personal finance experts recommend that you get a second job. Dave Ramsey, for example, extolls the virtues of delivering pizza at night to help end your bill problems.
Before you start thumbing through the Help Wanted ads, best to consider whether a second job is a good idea for you.
Why A Second Job Makes Sense
If you’re in debt, the income that comes with a second job is tempting. Every penny you come home with can go towards debt reduction, helping you climb out of the financial hole that much more quickly.
Your existing expenses continue to get paid through your primary source of income, and things are better overall.
As an added bonus, a second job is typically less stressful than the daily 9-to-5. That means you won’t bring home the stress that comes with your primary job.
But A Second Job Is Not All Wine And Roses
As Notorious B.I.G. said, “mo’ money, mo’ problems.” He wasn’t kidding.
In fact, here are just a few reasons why getting that second job may not be the best move:
Less time to spend with your family. If you’ve got kids, forget seeing those soccer and baseball games. Evenings by the television with your spouse? Forget those, too. Even if you’re not at work, you’re sure to be more exhausted when you’re physically present.
A smaller paycheck. No more overtime for you, my friend. Rather than getting time-and-a-half from your first job, you’re going to need to get out on time or you’ll be late for Job Number Two.
Less time for your health. If you’re working two jobs, chances are you’ll have less time to exercise. 16 hours a day at work doesn’t leave much time or energy to put on those running shoes and hit the pavement. In fact, working the night shift has been proven to lead to weight gain and diabetes.
An angry boss. The boss of your day job may not take too kindly to your evening work, thinking that it shows less of a commitment to your primary employment situation. Some workplaces require prior authorization to take on a second job or forbid it altogether.
Extra costs. When you shuttle back and forth between two jobs, you’ve got to tack on extra expenses for gas money and food.
More for your (un)favorite Uncle. A higher income may put you into a higher tax bracket. That means more money flows out of your pocket and goes to Uncle Sam, so be careful.
Balance The Books Before Sending A Resume
Getting a second job may be a good way to end your money problems, but you can’t be sure until you’ve run all the numbers.
Making a bed decision could cause you more headache than it solves.
This is the case of David Hammons who comes from Skokie, Illinois which is Cook County, Illinois. He is married to Christine but Christine is going to be a non-filing spouse in this case. Right off the bat, we are not sure whether this is going to be a Chapter 7 or Chapter 13 so+ Read MoreThe post Bankruptcy Software Will Determine If Chapter 7 Or Chapter 13 appeared first on David M. Siegel.
Why would anyone want to file a Chapter 13 bankruptcy? When you are struggling to make ends meet it may seem odd that filing a bankruptcy that requires making payments to your creditors can be a better deal than Chapter 7. It often isn’t, but here are three situations where filing Chapter 13 can save you a lot of money and aggravation:
1. Chapter 13 can save your house from foreclosure. Once you fall behind on payments it is tough to get back on top of things. When you are facing foreclosure a Chapter 13 will stop your house from being sold out from under you. Chapter 13 gives you a chance to get caught up on payments. These catch up payments can be stretched out over a five year period.
2. Get rid of a second mortgage. Chapter 7 will discharge a second mortgage. That does not do you much good when you want to keep the house. The second mortgage lien survives the Chapter 7 discharge. Chapter 13 is often a better deal. The rules are different in Chapter 13. When your house is worth less than the first mortgage, Chapter 13 allows you to discharge the second mortgage and have the second mortgage lien removed.
3. Save your car. In this town a car is a necessity for most of us. When you are behind on payments you are in danger of having the car repossessed. Chapter 7 might slow down repossession, but it won’t stop it unless you can get caught up on payments fast. Chapter 13 will allow you to keep the car and pay it off in a payment plan that can last as long as five years. Many times we are able to reduce the amount owed and have a lower interest rate set.
4. Force the IRS into a payment plan. It is hard to imagine a worse creditor than the IRS. Even if you are able to work out a payment plan with the IRS they will continue to add penalties and interest to the amount owed. Chapter 13 will allow you to pay back taxes and stop additional penalties and interest from being added.
Even when you meet the rules for filing a Chapter 7 bankruptcy there may be good reasons to consider a Chapter 13 instead. Chapter 13 will often save you money and the loss of valuable property. To learn more, give us a call at 480-820-0800 and talk to an experienced Arizona bankruptcy lawyer.
Original article: Top 4 Reasons to Consider Chapter 13©2013 Arizona Bankruptcy Lawyer. All Rights Reserved.The post Top 4 Reasons to Consider Chapter 13 appeared first on Arizona Bankruptcy Lawyer.
Bringing you the most up-to-date news, tips and blogs throughout the web. Here’s your Bankruptcy Update for October 22, 2013 Widow’s Bankruptcy Case Poses Risk to Rent-Stabilized Tenants Casey Anthony settles bankruptcy case French luxury chain Hediard files for bankruptcy
Many consumers who are struggling financially weigh their options with either bankruptcy or debt consolidation. While both options can help you deal with debt, in some cases, one may present more advantages than the other. When you compare pros and cons of each, you may get a better idea which option may be best for [...]
According to Investopedia, your credit score is: “A statistically derived numeric expression of a person’s creditworthiness that is used by lenders to access the likelihood that a person will repay his or her debts.” Unfortunately, many people look at their credit score as a mark of their self worth. Here are some interesting facts that [...]The post Understanding Your Credit Score. What does your credit score really mean? appeared first on Acclaim Legal Services, PLLC.
I have always found the following site to be helpful and resourceful. If you are looking for further insight and information about bankruptcy, you may check here: MORAN Group Bankruptcy Site.
Adam Brown is a bankruptcy attorney for Dexter & Dexter, a debt relief agency helping people file for bankruptcy.
New "Loss Mitigation Mediation" for Mortgage Modification in the Miami and Broward Bankruptcy Courts
Miami Personal Bankruptcy Lawyer Jordan E. Bublick has over 25 years of experience in filing chapter 13 and chapter 7 bankruptcy cases. His office is in Miami at 1221 Brickell Ave., 9th Fl., Miami and may be reached at (305) 891-4055. www.bublicklaw.com
The new mediation program for Mortgage Modification was started in the Miami and Broward Bankruptcy Courts on April 1, 2013. This mediation program has been successful in over 80% of the cases in the Bankruptcy Courts in other parts of Florida which previously started this program.
The documents for a mortgage modification are prepared by a special online program and upload to a portal on the internet that is shared between the homeowner and the mortgage company. A mediator is appointed by the Bankruptcy Court to assist the parties in obtaining a modification of the mortgage.
A brief outline of the procedures is as follows:
I. Pursuant to Administrative Order 13-01, the Bankruptcy Court for the Southern District of Florida has implemented a "Loss Mitigation Mediation" (LMM) program. The goal of LMM is to "facilitate communication and exchange of information in a confidential setting and encourage the parties to finalize a fesible and beneficial agreement with the assistance and supervision of the United State Bankruptcy Court."
II. The LMM is generally effective for individual cases filed or reopened or converted to an eligible chapter on or after April 1, 2013. The Court has implemented LMM Program Procedures and Local Forms.
In chapter 7 an individual debtor may request LMM to surrender real propery and in chapter 13 an individual debtor may request LMM to modify a mortgage or surrender real property.
III. Participation in the LMM program will require use of a secure online LMM Portal and Document Preparation Software that facilitates the preparation of the loan modification package. All communication between the parties is to be sent through the LMM Portal
IV. To participate in LMM, an eligible debtor must file within 45 days from the petition date a local form "Attorney-Represented Debtor's Verified Motion for Referral to Loss Mitigation Mediation" and an attached form order, Order of Referral to LMM. Prior to the filing of this motion the debtor's information must be submitted and processed through the Document Preparation Software and Debtor's initial loan modification forms are to be ready for signature and submission.
The debtor or the lender may seek LMM.
Co-obligors and co-borrowers must participate in the LMM process if requested. The "Consent to Attend and Participate in Loss Mitigation Mediation" is prepared.
Within 7 days after entry of the Order of Referral to LMM the Lender will confirmation that the
"Lender's Initial Package" is availabe on the LMM Portal.
V. Filing a request out of time
VI. Additional parties such as co-obligors and co-borrowers must particiate in the LMM.
VII. Order of referral to LMM
VIII. All parties are required to attend the LMM conference and be authorized to settle all matters requested in the Verified Motion. The parties attending the LMM conference shall be ready, wiling and able to sign a binding settlement agreement at the LMM conference.
The initial LMM conference is not to exceed one hour. The second LMM conference if required shall also not exceed one hour.
IX. The automatic stay is to be modified to the extent necessary to faciliate LMM. Pending motions for stay relief with respect to the property shal be continued until such time as the LMM has been concluded.
X. If the parties reach a final resolution or if no agreement has been reached the Mediator shall report the results on the LMM Portal and file the "Final Report of Loss Mitigation Mediator" with the Court. If a resolution is reached at the LMM conference, the local form "Motion to Approve Loss Mitigation Agreement with Lender" is to be filed.
XI. Certain wording is to be included in a chapter 13 plan where mortgage modification is sought as part of LMM in a chapter 13 case. The plan language provides that while the LMM is pending and until an agreement is reached, the debtor is required to include a post-petition plan payment of no less than 31% of the debtor's gross monthly income as adequate protection. Objection to lender's proof of claim are to be held in abeyance. If a settlement is reached an approved by the Bankruptcy Court, the debtor is to amend or modify the chapter 13 plan to reflect the settlement. If there is a failure to reach a settlement, the debtor is to modify the plan to conform to the Lender's proof of claiim or provide for a surrender of the property.
XII. The Mediator is to be slected from the Clerk's Register of Mediators. The debtor and the lender are to each pay the Mediator $300.00. Jordan E. Bublick is a Miami Personal Bankruptcy Lawyer with over 25 years of experience in filing chapter 13 and chapter 7 bankruptcies. Miami Personal Bankruptcy Lawyer Jordan E. Bublick has filed over 8,000 chapter 13 and chapter 7 cases.
Make too much money and you’re not qualified for Chapter 7 bankruptcy, the experts say. Sometimes, even the experts get it wrong.
One of the most startling aspects of the bankruptcy law is the means test, the all-too-complex calculation that is supposed to determine your eligibility to pay your debts.
Pass the means test and it’s assumed that you can’t pay your debts.
If you fail, however, the whole apple cart gets turned over.
Or does it?
The Basics Of the Means Test
If your income over the six months immediately prior to filing for bankruptcy is above the median income for a household of your size in the state in which you live, a “presumption of abuse” is raised. File for Chapter 7 bankruptcy and you could end up either having your case dismissed or converted to one under Chapter 13.
The means test is only required in that situation, though. If your income is below the line, you don’t need to worry about means testing.
The bright line, however, is not a point of art. Where a bankruptcy lawyer becomes truly handy is when tackling one of the big exceptions to the test for eligibility.
Who Gets To File For Chapter 7 Bankruptcy?
John has been struggling for years with his finances. He lives alone and earns $60,000 per year at his job. He has student loan debts of $100,000, and multiple credit card debts totaling $124,000. He owns no real estate, and just had his only vehicle repossessed, so he has no car. He has no health insurance. His take home pay is barely enough to cover his monthly expenses, not counting his credit card and student loan payments.
Bill has big debt problems too. He owes $500,000 in tax debts, and another $20,000 in credit cards. He owns a nice house with mortgages totaling $400,000 and a new car on which he owes $25,000. Bill is an executive at a company. He has a base salary of $600,000 per year, and receives annual incentive bonuses usually in the range of $100,000+ per year. His take home pay greatly exceeds his monthly expenses and he could pay a substantial percentage of his total debts over 5 years.
Only Bill is going to be able to file for Chapter 7 bankruptcy because John doesn’t pass muster.
The Means Test Does Not Always Apply
John’s debts are primarily consumer-based debts, which means they were “incurred primarily for a personal, family, or household purpose” whereas Bill’s debts are comprised primarily of taxes – which are not considered to be consumer debts.
Individual debtors whose debts are primarily nonconsumer are not subject to the means test. Therefore, Bill passes while John is relinquished to Chapter 13 bankruptcy.
Review Every Debt – Line By Line
How to determine whether a particular debt is consumer or nonconsumer can be tricky. Even when looking at a credit card debt, your lawyer may find that the charges weren’t all for consumer purposes.
A few dollars here and a few pennies there may mean the difference between an onerous fight in Chapter 7 bankruptcy or means test nirvana.
Image credit: Damian Gadal
Mark Markus has been practicing exclusively bankruptcy law in California since 1991. He is a Certified Specialist in Bankruptcy Law by the State Bar of California Board of Legal Specialization, AV-Rated by martindale.com, and A+ rated by the Better Business Bureau.
Miami Personal Bankruptcy Lawyer Jordan E. Bublick has over 25 years of experience in filing chapter 13 and chapter 7 bankruptcy cases. His office is in Miami at 1221 Brickell Ave., 9th Fl., Miami and may be reached at (305) 891-4055. www.bublicklaw.com
In the year 2007, the Florida Supreme Court issued its opinion in Chames v. DeMayo, 2007 WL 4190796 (Florida December 20, 2007) upholding the 3rd District Court of Appeals' decision (on rehearing) that the waiver of the Florida homestead exemption in an unsecured agreement is unenforceable. The court applied the doctrine of stare decisis and refused to recede from precedent of over a hundred years that the homestead exemption cannot be waived in an unsecured agreement. See Carter's Adm'rs v. Carter, 20 Fla. 558 (1884), Sherbill v. Miller Mfg. Co., 89 So.2d 28, 31 (Fla.1956).
In this case, an attorney who held an unsecured claim for legal fees based on a retainer agreement asked the court to recede from its precedent based on three arguments. First, based on a certain amendment to article X, section 4 of the Florida Constitution. Second, based on a purported national trend approving such waivers. Third, based on other Florida Supreme Court holdings that constitutional rights may be waived. The court rejected each of these arguments in turn.
The creditor first argument was that the 1985 amendment to article X, section 4 of the Florida Constitution, which replaced the phrase "the head of a family" with "a natural person" changed the purpose of the homestead exemption from that of one protecting the family into a personal right that may be waived. The court found no intent on the part of Florida voters to change the fundamental purpose of the Florida homestead when they expanded the homestead protection by no longer requiring one to be the head of a family to claim a homestead. The court stated that the creditor's argument overlooked the State's interest in protecting the home so that homeowners are not reduced to destitution and public charge. Havoco of Am., Ltd. v. Hill, 790 So.2d 1018, 1020 (Fla. 2001).
The creditor next argued that there has been a shift in the position of other states on the issue of homestead exemption waiver. The court noted that if this were true, it would furnish a reason to reconsider its precedent and that it has been willing to recede from precedent when it conflicted with the law in a majority of states. See, e.g., Fridovich v. Fridovich, 598 So.2d 65, 69 (Fla. 1992). The court stated that due to differing constitutional and statutory provisions, any such trend is difficult to discern and "to the extent it can be discerned, the trend appears to go in the opposite direction." The court found that the "majority of jurisdictions that have addressed the issue (whether by constitution, statute, or judicial opinion) do not permit a general waiver of homestead or personal property exemptions in an executory contract."
The court did note some cases from other states that found a waiver of homestead exemption in other manners but concluded that they did "not inform our analysis" as they were in different contexts. In Shuler v. Wallace, 61 Haw. 590, 607 P.2d 411, 414 (Haw. 1980) the court found that the failure to assert the right to claim an exemptions results in a waiver. In Cameron v. McDonald, 216 N.C. 712, 6 S.E.2d 497, 499 (N.C.1940), the court found that the party was estopped from relitigating his right to a homestead when he failed to assert his right.
Lastly, the creditor argued that the waiver of the homestead exemption should be permitted because the court has permitted the waiver of other constitutional rights. The court held that although most personal constitutional rights may be waived, an individual cannot waive a right designed to protect both the individual and the public. The court reiterated that "the homestead exemption protects not only the debtor, but also the debtor's family and the State." See Havaco, 790 S.2d at 1020.
The court recognized the trend in permitting the waiver of personal constitutional rights, especially rights given to criminal defendants. But the court noted that the waiver must be made knowingly, voluntarily and intelligently. Indeed, the court noted that it recently allowed a civil plaintiff to make a certain waiver with regard to a civil attorney fees but imposed safeguards such that the attorney must inform the client about his constitutional right, the possible consequences of waiver, and the initialing of six separate paragraphs. See R. Regulating Fla. Bar 4-1.5(f)(4)(B). In contrast, in this case, the court noted that the waiver was contained on page four of a six page single-spaced contract and at the end of a 118-word sentence.
The court went on point out that the Florida Constitution and case law do permit the waiver of the Florida homestead if accomplished in a certain manner. The court noted Carter and Sherbill do not absolutely prohibit the waiver of the homestead exemption, but they require that a waiver be accomplished in the manner that the article X, section 4 of the Florida Constitution prescribes: by "mortgage, sale, or gift." What is prohibited is a "general waiver of the homestead exemption in an otherwise unsecured instrument." The court stated that "[r]equiring that a waiver of the homestead exemption be made in the context of a mortgage assures that the waiver is made knowingly, intelligently, and voluntarily."Jordan E. Bublick is a Miami Personal Bankruptcy Lawyer with over 25 years of experience in filing chapter 13 and chapter 7 bankruptcies. Miami Personal Bankruptcy Lawyer Jordan E. Bublick has filed over 8,000 chapter 13 and chapter 7 cases.
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