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.

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.