Friday, April 18, 2008

Even Pro basketball players can get Bankruptcy Relief

Here is an article that I stumbled upon to show that even pro ball players have bankruptcy issues....although, he brought this on least he is taking steps to cure the on..

From the Press Register

Woman in court in Caffey case

Mother of ex-NBA player's son accused of violating court order
Wednesday, April 16, 2008
Staff Reporter

An Atlanta woman entitled to tens of thousands of dollars in child support from a former professional basketball player went to federal court in Mobile on Tuesday to battle a $40,000 judgment entered against her for violating the player's bankruptcy.

Tuesday's hearing repre sented the latest twist in a saga that has seen former Chicago Bulls power forward Jason Caffey -- who is from Mobile and was a star player for Da vidson High School -- go from admired millionaire athlete to an alleged deadbeat dad who claims he cannot make court-ordered payments to seven women who have had at least eight of his children.

Karen Russell, who has been fighting Caffey for years over payments for their 15-year-old son, did win a small victory in that Tuesday hearing.

U.S. Bankruptcy Judge Margaret A. Mahoney decided that Russell, who now lives in Atlanta, should be able to appeal the $40,000 order, even though the normal 10-day window for doing so has closed.

Earlier this year, Mahoney had ordered Russell to pay after determining that she violated a freeze on debt collection mandated by Caffey's bankruptcy.

Russell said outside the courtroom that she was stunned when she learned that Mahoney had entered the judgment against her.

"It's surprising to me that they would even allow him to file bankruptcy to get out of paying child support," she said.

Under federal law, a bankruptcy judge cannot wipe away Caffey's child support obligations. But all creditors -- including the mothers of his children -- are supposed to stop all efforts to collect their debts while Caffey works out a bankruptcy plan with the court.

Still to be resolved is Caffey's demand that Russell pay his attorneys' fees. Mahoney set a hearing next month for that matter and suggested that Russell might want to hold off on her appeal until a final decision is made then.

Tuscaloosa County Circuit Judge Herschel T. Hamner Jr. found Caffey in contempt in July for not paying child support, and an arrest warrant was issued in August.

Caffey filed for bankruptcy protection that same month, yet Hamner issued the arrest warrant shortly afterward.

Mahoney ruled that Russell had a duty to put an end to the proceedings once the bankruptcy was filed. Not only did Russell not do so, the judge ruled, but she accepted money in October as part of a settlement Caffey's lawyer negotiated in order to get his client out of jail.

Russell, meanwhile, claims that she never knew about the bankruptcy order. She said an address where the notice was mailed is a Montgomery post office box that she set up to receive child support payments.

Lawyers who were representing Russell at the time have said they did not receive notice, either, despite testimony that Caffey's lawyers left phone messages and sent copies of the order by fax and e-mail.

Russell, who works for a chemical company, said she met Caffey when both attended the University of Alabama. They did not date exclusively or for very long, she said, but the relationship produced a son. She said she began having problems getting Caffey to pay within months of a child support order in 1995.

The only time Caffey regularly paid, Russell said, was when it was automatically deducted from his paycheck from the NBA. Court records put the child support debt at more than $82,000; Russell said it exceeds $100,000 when attorneys' fees are included.

Russell's lawyer, Penny Douglass Furr, said the $40,000 judgment against her client is separate from the money Caffey owes, meaning she could not simply deduct the amount.

"That's basically a year's salary for Karen."

Tuesday, April 15, 2008

filing multiple bankruptcy cases

Subject: filing chapter 7 again
Question: Hello,

I want to know if I was discharged from a chapter 7 in 2003 or 2004, can I in 08 file again for a chapter 7 due to a hardship, it would be for a car for 20,500 i also have a credit card that i probably would keep with limit at 1,000 and payments are only 30 a month. I'm also a authorized user for my mom's AMEX and the is on my credit-what will happen to that? I just can't afford paying the vehicle it anymore. I have tried to trade and sell and because of the neg equity and economy no wants to buy. I live in Georgia, is this possible? What is my next step? Please help! Thanks in advance

Chapter 7 is only available again 8 years from the date you filed your last chapter 7. So, here, you would be able to file Chapter 13. With a chapter 13, you can pay back anywhere from 10% and up based on your income and your assets. Speak to a local attorney to help calculate your monthly payment.

Protecting assets in Chapter 13

Subject: bankruptcy
Question: I have thought about filing for bankruptcy, we bought a motor home when our finances were better, they have changed. with expenses of house payment and motor home payment and every day expenses it is getting too much. I am 66 and not working. my husband works because of health care and need the money. his income is around 19,000. we have a little in 401K. what will we be able to keep and can they garnish his wages and take our 401k?

Answer: This would depend on if you have any equity in the assets. Each state has exemptions to protect assets. Speak to a local attorney to do an asset/equity analysis, and if you don't have much equity, then you may qualify for chapter 7. If you have too much, then you would look at Chapter 13 to repay enough debt to protect the asset.

Thursday, April 3, 2008

Mortgage Relief

Good News.

I recently attended a meeting presented by several prominent bankruptcy Judges in Chicago, IL. They discussed numerous topics on the current laws, rules etc. They all seemed to be in agreement that the proposed changes to the bankruptcy code that are pending in Congress currently, namely -reduction of mortgage interest rates and reduction of over financed mortgages - would be beneficial to the economy. They feel that the bankruptcy code is the correct place, since the tools are in place to enforce it and implement these changes...aka....ME!

What is being considered is allowing a debtor who has an extremely high Mortgage ARM, be able to modify that term to a fixed rate loan. They also may allow us to cram down and strip off mortgage amounts above the property's fair market value.

The judges indicate that there will be strict guidelines - such as how low we can reduce the rate, how long we can reduce the rate, and having a window in which the loan had to have been incurred or refinanced. So, now, the task is yours to write your senators and congressmen and women to say that you support this legislation.