Take Our Bankruptcy Knowledge Challenge Quiz!

1. I can max out all of my credit cards right before filing for bankruptcy and never pay for what I bought.
A. Myth
B. Fact

2. I only have to list the creditors in my Bankruptcy that I do not want to pay back.
A. Myth
B. Fact

3. I will never get credit again after filing for Bankruptcy.
A. Myth
B. Fact

4. If I am married, my spouse and I have to file for Bankruptcy together.
A. Myth
B. Fact

5. Everyone will know that I have filed for Bankruptcy.
A. Myth
B. Fact

6. I will lose everything that I have if I file for Bankruptcy.
A. Myth
B. Fact

7. All debt is discharged in a Chapter 7 Bankruptcy.
A. Myth
B. Fact

8. Only deadbeats file for Bankruptcy.
A. Myth
B. Fact

9. You can only file for Bankruptcy one time.
A. Myth
B. Fact

10. Filing for Bankruptcy is hard.
A. Myth
B. Fact

Think you knew your Bankruptcy facts?
Find out now.

Buyer Beware of Debt Settlement Industry

The New York Times published an interesting article on June 18, 2010 by Peter S. Goodman titled The New Poor Peddling Relief, Firms Put Debtors in Deeper Hole. This article is a good read for anyone who is struggling with debt and considering calling a debt settlement company. Choosing a debt settlement agency should not be a decision taken lightly. Consumers must do their research. In Kansas the Office of the State Bank Commissioner, has a List of Approved Registered Credit Services Organizations.

“In the Kansas City area, Linda Robertson, 58, rues the day she bought the pitch from a debt settlement company advertising on the radio, promising to spare her from bankruptcy and eliminate her debts. She wound up sending nearly $4,000 into a special account established under the company’s guidance before a credit card company sued her, prompting her to drop out of the program.” (Goodman, 2010) Ms. Robertson filed for bankruptcy after the debt settlement company failed her. (Goodman, 2010)

Our office, also, has meet hard working families who have hoped to pay their debts through debt settlement companies. The programs did not work for them and they called our office seeking bankruptcy relief. Bankruptcy is not the right solution for everyone, just as debt settlement is not the right option for every debtor.

As the industry has grown, so have allegations of unfair practices. Since 2004, at least 21 states have brought at least 128 enforcement actions against debt relief companies, according to the National Association of Attorneys General. (Goodman, 2010) Consumer complaints received by states more than doubled between 2007 and 2009, according to comments filed with the Federal Trade Commission. (Goodman, 2010)

People who are overwhelmed by debt need to explore all their options carefully. Do not allow yourself to be taken advantage! Debtors must consider what options are best for their families now and in the future. It is also important for debtors to be realistic about their financial situations. Even if companies are willing to settle some of your debts, will you be able to pay the settled amounts?



Goodman, P. S. (2010, June 18). The New Poor Peddling Relief, Firms Put Debtors in Deeper Hole. New York Times .

This blog is designed for general information only on Bankruptcy, Estate Planning, and Family Law. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. The choice of a lawyer is an important decision and should not be based solely upon advertisements.

Walden & Pfannenstiel, LLC is a debt relief agency, proudly helping people file for bankruptcy relief under the Bankruptcy Code throughout Kansas and Missouri.

Your Credit Report

An interesting article was published on Monday by the Associated Press regarding credit scores and their continued decline. This is timely information, as we talked about What Your Free Credit Report Saying About You just last week. If you have not already gotten a free copy of your credit report, we would encourage you to do so. And, if you happen to be one of the 43.4 million people that now have a credit score of 599 or less -- remember that you are not alone, help is available!

What is Your Free Credit Report Saying About You?

What is Your Free Credit Report Saying About You?

Today the credit world is driven by consumers’ credit reports and credit scores. Everyone knows that the consumers with the best credit scores receive the most favorable financing terms. The enticing automobile commercials with the attractive financing terms of 0.00% for 60 months apply only to well qualified buyers, meaning everyone else is at the mercy of their credit score. Accurate credit reports are essential for today’s consumers, so they can receive the best financing options available.

It is important for all consumers to understand how and what kind of debts are reported on a credit report. The information reported on your credit report will determine your credit score. The 3 major credit reporting agencies are Experian, TransUnion, and Equifax. Each of these agencies has helpful information on their websites to educate consumers on the issues surrounding their credit reports.

Each site also gives directions on how to handle disputes. When reviewing your credit report if you find a debt that is not yours or a debt being reported incorrectly, you will need to file a dispute with the credit reporting agencies (Experian, TransUnion, and Equifax). You will want to check that the problem is resolved with each of the credit reporting agencies. The credit reporting agencies are not responsible for correcting problems with other companies, because it is the responsibility of the credit company to fix the problem with all the agencies.

People usually want to know how long negative accounts stay on their credit report. All delinquent accounts are deleted from your credit report 7 years from the original delinquency date (the date the account first became delinquent and was never current again). Negative accounts can include: delinquent accounts, car repossessions, medical bill collection actions, foreclosures, settled accounts (resulting from a possible short sale, etc), charged off accounts, and collection accounts.

Positive accounts will stay on your credit report for 10 years. Positive accounts are reported longer for the benefit of the consumer.

Bankruptcy will appear on a credit report under the public records section of the credit report. This is the section where any lawsuits for collection of debt also appear. A chapter 7 bankruptcy will appear in the public records section for 10 years. A chapter 13 bankruptcy will appear in the public records section for 7 years. The accounts involved in the bankruptcy will be reported as “included in bankruptcy.” The bankruptcy will not affect how long the accounts will stay on your credit report; the accounts will be removed from your credit report after 7 years from their delinquency date just like any other negative accounts.

It is very important for everyone to review their credit report on a regular basis. The 3 major credit reporting agencies allow consumers to view 1 credit report from their company each year. This means you can view your credit report 3 times per year for free! Go to www.annualcreditreport.com to review one of your free credit reports today to ensure the information creditors are reviewing is accurate.

Estate Planning Letters Of Instructions

Last week we left you with one option for making sure that your affairs are in order. This week we are going to take a look at some more practical suggestions.

Once you have had your Estate Planning Documents prepared and executed, you need to make sure that they are organized, safeguarded, and communicated.

One suggestion is to use Letters of Instructions. While your Last Will & Testament states to whom you wish your real and personal property to be distributed upon your death, a Letter of Instructions is a more informal document for which your family will be thanking you. Be sure to include not just names, but addresses and account numbers as appropriate.

 Financial Details: You can reduce the stress on your family or executor if you have a complete list of all of your accounts, assets, and liabilities. It is difficult for your property to be divided, if it can’t be found.
o Income
o Bank Accounts – Checking and Savings
o Pension Plans
o Brokerage Accounts
o Retirement Accounts
o Insurance Policies
o Safety Deposit Boxes
o Business Ownership or Interest
o Mortgage / Loans

 Location of Official Papers
o Social Security Cards
o Marriage Certificates
o Birth Certificates

 Your Advisors – Name, Address, and Telephone number
o Attorneys
o Accountants
o Insurance
o Doctors
o Religious

 List of Family and Friends you want to be notified of your death – Name, Address, and Telephone number

 Any animals or personal property that would need immediate attention upon your death

 Any arrangements you have made regarding anatomical gifts

 Funeral Wishes
o Beliefs or ideas you want expressed
o Pre-paid funeral plan information
o Service details that are important to you – who to officiate, what songs to be played, a charity to receive donations

 Specific Personal Property Distribution. You can mitigate much of the family disagreements that arise by naming individual objects for particular people.
o Jewelry
o Furniture
o Photos

While you are the one responsible for creating and maintaining your Estate Plan, it is actually for the benefit of the loved ones you leave behind. Include as much detail in your Estate Plan as possible. Open the lines of communication today to avoid uncertainty in the future.

Putting Your Affairs In Order

We have already talked about the importance of Estate Planning and making sure you are covered for the “what ifs”. You know that you need to have a Last Will & Testament, Powers of Attorney, and Non-probate Transfers in place. You are aware that you can learn more about these vital documents or have them prepared on your behalf by contacting us today at wpllc@wplawpractice.com / 913.438.1112.

But, what about the emotional, logistical, and familial aspects of Estate Planning -- Are you prepared? Is your family?

For example, a woman recently went to her doctor. The doctor, after an examination, sighed and said, “I've some bad news. You have cancer, and you'd best put your affairs in order.”

The woman was shocked, but managed to compose herself and walk into the waiting room where her daughter had been waiting.

“Well daughter, we women celebrate when things are good, and we celebrate when things don't go so well. In this case, things aren't well. I have cancer. Let's head to the club and have a martini.”

After 3 or 4 martinis, the two were feeling a little less somber. There were some laughs and more martinis. They were eventually approached by some of the woman's old friends, who were curious as to what the two were celebrating. The woman told her friends they were drinking to her impending end.

“I've been diagnosed with a STD.” The friends were aghast and gave the woman their condolences.

After the friends left, the woman's daughter leaned over and whispered, “Momma, I thought you said you were dying of cancer, and you just told your friends you were dying of a STD.”

The woman said, “Yeah, well, I don't want any of those women sleeping with your father after I'm gone.”

While that is indeed 'Putting Your Affairs In Order' – we’ll have some more practical suggestions for you next week.

ADVANTAGES OF ESTATE PLANNING DOCUMENTS

Along with your Last Will & Testament, there are several other basic estate documents you should consider. Take a look at the advantages of:

Powers of Attorney
• Establishing a powers of attorney is inexpensive.
• You can decide who should make decisions on your behalf if you are unable.
• You control whether your agent has general or specific power.
• The document can require the agent to become bonded or to give an account of his or her transactions.

Living Will
• Provides you with the authority to reject medical treatment.
• Provides your family and health care professionals a clear description about the types of treatments you wish to have.
• Prevents arguments among family members.
• Prevents your family from going through the strain and difficulty to decide to keep you alive or not.

Non-probate transfers
• Avoids expense of probate
• Avoids delay of probate.
• You can change beneficiaries or revoke transfers at any time, retaining full control of the property throughout your lifetime.
• No risk to you or co-owners.

To learn more about these estate planning documents, you can visit http://wplawpractice.com/estateplanning_26.html .
If you are ready to have documents prepared on your own behalf or have specific questions about your estate, contact us today. 913.438.1112 or wpllc@wplawpractice.com .

Estate Planning for the What Ifs

The official start of summer is right around the corner. As the weather heats up families head to the highways to begin their long anticipated summer vacations. Families are going to enjoy horseback riding, river rafting, hiking, and other various fun filled activities. During these care free, relaxing times no one wants to think about the dreaded “what ifs.”

However, it is important to think of the “what ifs” before you head out on that well deserved vacation. What if there is an accident and you are not able to make decisions concerning your physical welfare or finances? What if there is an accident and you perish leaving your loved ones to sort out your finances and last wishes? Creating a Last Will & Testament, Powers of Attorney, Transfer on Death Deeds, Living Wills, and Trusts are the necessary steps to plan for the “what ifs.”

A Last Will & Testament is a person’s opportunity to put into writing how and to whom they wish their real and personal property to be distributed upon their death. If someone passes without a Will, the State’s laws determine who will inherit and how much. A Will also gives parents or guardians the opportunity to inform the court who they believe is a suitable guardian for their minor children or ward. Trust language for certain beneficiaries can be inserted into the Will so those individuals receive their inheritances at the age you believe is appropriate. The benefits of a Will are numerous and should be discussed with an attorney.

Next week we will briefly review the benefits of the other estate planning documents every individual should consider.

Office Closure & Memorial Day

Another great week ending at Walden & Pfannenstiel with a CLE! Our office will be closed this afternoon as we head back to our alma mater KU to discuss a movement that is now underway to formulate a new set of aspirational rules to raise the standards of the Bar. How can we make law into a craft wherein members of the Bar take pride in their work, rather than see it wholly as a source of wealth?

We will also be closed on Monday as we remember the service members who have given their lives to defend our country and freedom.

You never know when or where you are going to run in to a hero – might be a family member, a friend, neighbor, co-worker or client, -- regardless, these every day heroes deserve our respect and appreciation. A very special “Thank You!” goes out to all of the ladies and gentlemen that are currently and have previously served our great country.

Wishing everyone a happy, healthy, and safe Memorial Day weekend!

3rd Annual Frank W. Koger Bankruptcy Symposium

Walden & Pfannenstiel, LLC attended the 3rd Annual Frank W. Koger Bankruptcy Symposium. The Frank W. Koger Bankruptcy Symposium began in May 2008 as a memoriam to the late Honorable Frank W. Koger. The Symposium is held annually each spring at the Charles Evans Whittaker Courthouse in Kansas City, Missouri.

Biography
Frank W. Koger was appointed as a United States Bankruptcy Judge in 1986. In 1996 he was appointed to the newly formed Bankruptcy Appellate Panel for the Eighth Circuit, and served as its first Chief Judge until his death.

While serving as a Bankruptcy Judge he was elected President of the National Conference of Bankruptcy Judges in 1996, and served six years on the Bankruptcy Committee of the Judicial Conference of the United States. As a Bankruptcy Judge, he published 321 opinions, and wrote or participated in another 31 as a Bankruptcy Appellate Judge. His opinions are scholarly, and sometimes humorous, but always reflective of the practical approach he brought to each and every matter that came before him.

His accomplishments as a bankruptcy judge were not surprising to those who had watched his career. He had been first in his class, and an editor of the Law Review, at the Kansas City University School of Law, graduating in 1953. After three years in the Air Force as a Staff Judge Advocate, he returned to Kansas City in 1956, where he practiced law for the next thirty years in the firm eventually known as Shockley, Reid & Koger. During that time, he was elected President of the Commercial Law League of America, taught at several law schools and for the American Institute of Banking, and served as a long-term member of the Board of Directors of St. Luke’s Hospital, among many other civic commitments.

Frank Koger’s life cannot and should not be remembered only for his contributions and service to the law. Just as remarkable was his strong commitment to his wife, Jeanine, to their daughters, Missy and Courtney, and to their granddaughter, Tory.

Great Speakers:

Nancy Rapoport the Gordon Silver Professor of Law at the William S. Boyd School of Law, University of Nevada, Las Vegas started the day with a Multi-media Bankruptcy Ethics Presentation. Showing clips from movies where they got the law right (Body Heat, 1981), they got the ethics mostly right (The Firm, 1993), and where Hollywood was just way off (Legal Eagles, 1986). Are your local attorneys like those portrayed in Hollywood? She'd say there is a mix: The "good" (Inherit the Wind, 1960), the "bad" (Liar, Liar, 1997), and the "ugly" (Jurassic Park, 1993).

Kenneth Klee provided information as found in his new book, Bankruptcy and the Supreme Court. He wrote the book as a desk reference for judges and lawyers to provide access into the Supreme Court's position on key issues of bankruptcy law. It allows attorneys to have a starting point from which to conduct research. It is very interesting that Mr. Klee had to go back to 1898 as a starting point. There were 570 bankruptcy cases heard by the Supreme Court in the last 111 years (that's a lot!) and the Supreme Court values its old holdings. Of course, then you get in to what Congress has been up to over the years...

Next we had an opportunity to ask the experts -- the U.S. Courts, WDMO Bankruptcy Judges, Assistant U.S. Trustee, and Chapter 13 Trustee -- our burning bankruptcy questions, and as oft is the answer in the field of law “it depends.”

The Symposium ended with a FREE BBQ lunch provided by the Court and catered by KC’s own Fiorella’s Jack Stack Barbecue.