Saturday, October 16, 2010

Goodbye Blogger, Hello WordPress.

When I first opened my practice in 2004, I knew that I needed a website to promote my services.  I had heard of blogging and figured that I needed one for my website.  So I started off with Yahoo's over priced web hosting service and a blog powered by Google's Blogger.com.

A lot has changed since 2004.  I no longer work alone at a desk in the plan room of my father's construction company.  I've got a real office and my wife works with me as a top notch bankruptcy paralegal.  My practice has grown up and I've outgrown Blogger.com.

After more than 300 blog posts, this will be my last blog entry via Blogger.com.  The blog and the entire website both have a fresh new look courtesy of WordPress and a Headway theme.  It has been a good run, but it is time to say goodbye to Blogger and hello to WordPress.  Please click here to start reading the new blog.

About the Author: Carl H. Starrett II has been a licensed attorney since 1993 and is a member in good standing with the California State Bar, the San Diego County Bar Association and the National Association of Consumer Bankruptcy Attorneys. Mr. Starrett practices in the areas of bankruptcy, business litigation, construction, corporate planning and debt collection.

Thursday, September 30, 2010

Why I Am Done With The Chargers for 2010

An open letter to the San Diego Chargers:

This is a letter that I actually started to write as a result of the blackout from the home opener.  I decided to finish it learning about another blackout due to the failure to sell enough tickets to the second home game.

I am a San Diego bankruptcy attorney and I help clients everyday with a variety of difficult financial circumstances.  Many of my clients are victims of the economy and perhaps have suffered a job loss.  Other clients made bad decisions such as a mortgage they could not afford or purchased too much on their credit regardless.  I try to teach them to live within their means and try to apply those lessons in my own life.  What this means is that I will rarely pay to see a game in person due to the high cost of tickets, parking, food, souvenirs and Lord knows what else.  However, the blackouts of the first 2 home games is causing me to wonder if I will even watch another Charger game the rest of the year.

The NFL has a well known rule about keeping home games off local TV if the team doesn't sell  all the tickets at least 72 hours before start time for the game.  According an article by Tim Sullivan of the Union-Tribune, the cost to the Chargers to lift the blackout of the first home game would have been no more than $221,380.80.  I did an little research and confirmed that NFL teams can lift the blackout if they pay the visiting team its share of the revenue for the unsold tickets.  The visiting teams share is 34% of the face value of the ticket.

Although it would seem this cost (tax deductible to the Chargers) would have been offset by revenue generated from having the game on TV, the Chargers are apparently more interested in stubbornly holding onto the idea of more fans in the seats.  With unemployment at more than 10% in San Diego, this is not about a city with a reputation for having “fair weather” fans, this is about the Chargers turning their backs on the fan base that will support their team even if they cannot afford to go to the game.

The blackouts also hurt local businesses that rely on game day revenue when the Charger games are not on TV.  The Chargers do not seem to realize nor care about this.  I find the Chargers actions to be short sighted and insensitive to the fans and their economic hardships.  I find it hard to support a team whose management team seems to be out of touch with the fans on issues like this.

I am trying hard to find a good reason to watch a Charger game the rest of the season.  It sure would be nice to hear from the organization about this.

About the Author: Carl H. Starrett II has been a licensed attorney since 1993 and is a member in good standing with the California State Bar, the San Diego County Bar Association and the National Association of Consumer Bankruptcy Attorneys. Mr. Starrett practices in the areas of bankruptcy, business litigation, construction, corporate planning and debt collection.

Sunday, September 12, 2010

5 Reasons Why Chapter 13 Bankruptcy is Better Than Debt Settlement

Not too long ago, I started an advertising campaign on a local radio station. I excitedly tuned into the station and listened for my first "spot" to run. The station's staff had not entered the proper "conflict codes", so they also ran an advertisement for a debt settlement company right after mine. The debt settlement company made lots of empty promises and it inspired me to write this article.  Here are 5 reasons why I believe that chapter 13 bankruptcy is a better option for people who wish to repay some of their debts than hiring a debt settlement company that tries to settle doubts outside of bankruptcy:
  • Debt forgiveness received from bankruptcy is not taxable. If you settle a debt for less than what you owe, the creditor must send you an IRS 1099 form if the amount forgiven is greater than $600. If you pay $2000 to settle a $4000 debt, you might have taxable income of $2000. Debts that are forgiven in bankruptcy are never taxable. 
  • Chapter 13 Bankruptcy lets you deal with all of your creditors in one proceeding. A confirmed Chapter 13 repayment plan is binding on all of your creditors, even creditors such as the IRS or your care lender. Debt settlement companies, however, typically only work with unsecured creditors such as creditor card companies and they won’t assist you with tax debts. Some creditors like American Express will only work with the borrower and not a debt settlement company. The automatic stay created by the filing of a bankruptcy prohibits any of your creditors from suing you. 
  • Chapter 13 bankruptcy gives you more control than debt settlement. In Chapter 13, you submit a payment proposal to the court based on your ability to pay. If you can convince the Chapter 13 trustee and the judge that your plan complies with the law and is proposed in good faith, you don't have to worry about negotiating with multiple creditors. 
  • You can modify some car loans in Chapter 13. If you purchase a car and the original loan is more than 910 days old, a Chapter 13 bankruptcy could help you force the lender to modify the loan. A number of my clients have used Chapter 13 to reduce the balance of their care loan and reduce the interest to as little as 4.25%. 
  • Some debtors can use Chapter 13 to get rid of a second mortgage. If a debtor's home is worth less than the balance owed on a first mortgage, a homeowner that qualifies for Chapter 13 can get a court order stripping the second mortgage from their home. I recently helped a couple remove a $116,000 second mortgage from their home. Debt settlement cannot promise that.
Debt settlement companies often play on a debtor’s feelings of guilt about their debts or promote myths about how bankruptcy can harm a debtor's credit rating while ignoring the harm caused by debt settlement. I have yet to see a satisfied debt settlement customer come through my doors and Chapter 13 gives the debtor the opportunity to provide a court ordered plan to get their financial affairs back in order.

If you are in financial difficulty and are in Southern California, a free a consultation is just a phone call away. Please call me today at (619) 448-2129 to explore you options for a fresh start with bankruptcy.

About the Author
:
Carl H. Starrett II has been a licensed attorney since 1993 and is a member in good standing with the California State Bar, the San Diego County Bar Association and the National Association of Consumer Bankruptcy Attorneys. Mr. Starrett practices in the areas of bankruptcy, business litigation, construction, corporate planning and debt collection.

Saturday, August 21, 2010

Spotting Loan Modification Scams

In tough economic times, the offer of a quick fix or a miracle cure can often be too much to resist when a desperate homeowner is trying to catch up on past due mortgage payments.  With loan modification scams on the rise, a number of states have passed laws designed to protect consumers from predators offering fraudulent loan modification services.  The following tips can help consumers avoided getting scammed:
  1. Avoid any loan modification company that demands advance fees.  With limited exceptions, California has banned any type of advance fee to work with your lender to modify, refinance or reinstate your mortgage.  The obvious risk is that they may pocket your money and do nothing to save your home from foreclosure.
  2. Over the top guarantees.  No matter how much experience someone claims to have, nobody can truly guarantee that they can stop foreclosure or modify a loan.  The only thing they can really promise is that they will do their best to help you.
  3. The company advises you to stop paying your mortgage.  People who are behind on their mortgages are often having other bill problems and they can be tempted to spend the mortgage payment on other perceived needs.  When the lender wants a good faith payment during negotiations, the money is gone. Do not make your payments to the loan modification provider under an circumstances.
  4. The company asks you to sign over your house or sign paperwork that you haven't read.  A legitimate housing counselor would always give you time to review the document and understand it.
  5. A company/person you don’t know asks you to release personal financial information online or over the phone. You should only give this type of information to companies that you know and trust, like your mortgage lender or a HUD-approved counseling agency.
If you cannot afford an attorney to assist you with a loan modification, there are a number of free or low cost resources available to you:
  • U.S. Government Program to Refinance or Modify Loans:
    To find out if you qualify, and how much your loan might be reduced, Click Here .
  • HUD-Approved Foreclosure Counseling Agencies:
    Click Here to find a HUD-approved counselor or call 877-HUD-1515.
We do not offer loan modification services.  However we do help debtors file for Chapter 13 bankruptcy to get caught up on their mortgage payments and use bankruptcy to help remove second mortgages under certain circumstances.  If you live in the San Diego area, are suffering financial difficulties and have exhausted your loan modification options, please call us at (619) 448-2129 to see if bankruptcy can help you.

About the Author: Carl H. Starrett II has been a licensed attorney since 1993 and is a member in good standing with the California State Bar, the San Diego County Bar Association and the National Association of Consumer Bankruptcy Attorneys. Mr. Starrett practices in the areas of bankruptcy, business litigation, construction, corporate planning and debt collection.

Sunday, July 25, 2010

Insolvency Is Not Bankruptcy

In a recent blog entry, I discussed the misleading concept that some debtors think of themselves as "judgment proof".  However a recent question from a client about insolvency as an "alternative" to bankruptcy indicated that another article on the topic might be warranted.

There are two types of insolvency:  (1) cash flow insolvency, where you cannot pay your debts as they come due; and (2) balance sheet insolvency, where the debts exceed the value of your assets.  Insolvency might make a bill collector's job more difficult, it is NOT as a legal defense to the nonpayment of debts and cannot protect you from a lawsuit for unpaid bills.

You cannot be "declared" insolvent nor can you "claim" insolvency except perhaps when dealing with debt forgiveness income on your tax return.  If a debtor settles a creditor card debt for less than the full amount owed, they will send out a 1099 to the debtor and the IRS.  If the debtor meets the definition in the Internal Revenue Code for insolvency, the debt forgiveness might not be counted as taxable income.  However, the creditor is free to file a lawsuit and get a judgment to garnish the debtor's wages.

Insolvency by itself is not an alternative to bankruptcy.  It is a bit like trying to hide assets or doing nothing in the hope that creditors won't find anything.  It is also like running and hiding from a bully.  Sometimes  you need to confront the bully.

If you are in Southern California and are tired of running from your creditors and the harassing phone calls, please call me today and (619) 448-2129 for a free consultation.

About the Author: Carl H. Starrett II has been a licensed attorney since 1993 and is a member in good standing with the California State Bar, the San Diego County Bar Association and the National Association of Consumer Bankruptcy Attorneys. Mr. Starrett practices in the areas of bankruptcy, business litigation, construction, corporate planning and debt collection.