On the Indiana Bankruptcy Blog I typically focus on those who have debt problems and are considering Chapter 7 or Chapter 13 bankruptcy. However, a bank statement that came across my desk the other day made reminded me that it is not only those who have debt problems that need to reign in spending. The bank statement I saw the other day reminded me that when people do have enough money to pay their bills and have a little bit left over how easy it can be to squander that money.
It makes sense. If Susie has $2,000.00 of take home income and $2,000.00 of bills and living expenses to pay each month she must account for every penny or she will not have enough left to pay her bills and eat by the end of the month. On the other hand, if Susie has $3,000.00 in income and the same $2,000.00 worth of expenses does she really know where that other $1,000.00 goes each month? I assert to you that the answer to this question for most people is "no." While it is excellent that in the second example Susie has more than enough money to "get by," the truth is that she could be throwing away $1,000.00 per month without even realizing it.
In my experience the most common way that people blow through money without even realizing it is what I call Death by a Thousand Debit Card Swipes. People swipe that debit card like crazy. Most of the transactions are relatively small. Typically under $50.00 and seem insignificant, but this is where the bank statement comes in. Take a look at your bank statement. Do you have 4 pages of debit card transactions? Those little purchases here and there add up. What I have observed is that most of those transactions are for useless stuff that we consume such as fast food, liquor stores, gas station snacks, etc. It isn't that people go out on a shopping spree at the mall and spend $300.00 on a new outfit they can wear to work, it is that they go out and spend $300.00 on stuff that they eat or drink. And when you have more than enough money to pay your bills is when it is easy to overspend on the little things that add up to make a huge difference.
Have you ever heard the expression that when you make more money you spend more money? I review income and expenses for people with financial problems for a living and I can say with certainty that this seems to be true in almost all situations. Once we can afford the nicer car we buy the nicer car, house, gym membership, etc. Think about how much faster you could achieve your financial goals if you simply froze your standard of living at your current income level. With each raise or new source of income taking the remaining funds and investing them. If you didn't spend the difference on gum and fountain drinks you would be able to have all the things you wanted much faster than if you increased your payments along with your income...because lets face it. Just because you have something doesn't mean you own it. Just because there is a new car parked in your driveway that is depreciating by the minute does not mean that you have achieved financial success if you still owe 59 payments. True financial success is when the car of your dreams is parked in your front yard and you purchased it with cash. At that point you actually own something and you aren't just making payments to someone else to own it several years down the road when it will be worth a fraction of its value today.
But even more dangerous than the more expensive car example in the "make more, spend more" method is death by a thousand debit card swipes. My advice is to go through your last 2 bank statements and see how much money you spent that you didn't really need to spend. Add it up and think about how much money you are spending over a year. How would you rather use that money? A family vacation? Funding Retirement? The possibilities are endless. Pay attention to how much you swipe that card and avoid financial death by a thousand debit card swipes.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses.
Thursday, January 26, 2012
Monday, January 23, 2012
Will My Indiana Chapter 7 Bankruptcy Be "Approved"?
Of course, those who find themselves in need of a bankruptcy are worried. They are often worried about the many things they don't know about Chapter 7 Bankruptcy and one of these things is whether their bankruptcy will be "Approved." Potential clients are typically under the impression that when they go to their hearing it will be in front of a judge and we will need to defend that they deserve to file bankruptcy because they don't make enough money to pay their bills. Since this is really not what happens in the Chapter 7 Bankruptcy process I wanted to blog about being "Approved" for Indiana Chapter 7 Bankruptcy from an attorney's perspective.
First things first. If you have not filed a Chapter 7 bankruptcy within the last 8 years, are truthful in the submission of your bankruptcy petition, pass the income and means test requirements and take the credit counseling and financial management courses necessary you will receive a bankruptcy discharge. The bankruptcy discharge is the legal word for you no longer owing the dischargeable debts listed in your bankruptcy petition.
When a Chapter 7 bankruptcy petition is filed there is no instant approval or denial. A few days after the Chapter 7 bankruptcy petition is filed it is set for a 341 meeting of creditors, which the Chapter 7 bankruptcy debtor(s) are required to attend. At the 341 hearing there is a trustee, who is an attorney.....not a judge. The trustee is not the one who decides whether or not your Chapter 7 bankruptcy sails through the process to discharge, so don't go into the 341 meeting thinking that you are going to get a stamp of approval or denial. If the trustee believes that there is a problem with your Chapter 7 bankruptcy going through to discharge he or she simply submits a form the the United States Trustee's office.
The United States Trustee's office has 10 days from the 341 hearing to file what is called a notice of presumed abuse. So if it has been more than 10 days since your Chapter 7 bankruptcy has been filed, the trustee is not going to object to you receiving a discharge in Chapter 7 bankruptcy. If a notice of presumed abuse is filed in your case there is an additional process, which you can read about in my prior blog here, but rest assured that in my experience most of these cases proceed to discharge.
So I guess what I would say to those considering bankruptcy is try to relax, although I know this can be difficult. In my experience, the vast majority of Chapter 7 bankruptcy petitions that are filed for people living in the Indianapolis are go through and receive a discharge without any problems. The bottom line is that if you have found an attorney you trust and he or she tells you that your Chapter 7 bankruptcy will go through just fine, chances are that it probably will. So, try not to worry about whether your petition will be approved. Instead, concentrate on getting your financial management course completed and pay attention to any other correspondence you receive from your attorney.
I represent those who need to file Chapter 7 and Chapter 13 bankruptcy in Indianapolis, Carmel, Zionsville, Noblesville, Fishers, Tipton, Anderson and the surrounding areas. I offer an initial consultation at no cost where we discus your finances, assets and go over whether bankruptcy would make sense for you. At this meeting I answer your questions and there is no requirement that you move forward with bankruptcy. It is simply an informational meeting. If you would like to come in to discuss whether bankruptcy might be a way to solve your financial problems click here or call our office at 317-575-8222.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses.
First things first. If you have not filed a Chapter 7 bankruptcy within the last 8 years, are truthful in the submission of your bankruptcy petition, pass the income and means test requirements and take the credit counseling and financial management courses necessary you will receive a bankruptcy discharge. The bankruptcy discharge is the legal word for you no longer owing the dischargeable debts listed in your bankruptcy petition.
When a Chapter 7 bankruptcy petition is filed there is no instant approval or denial. A few days after the Chapter 7 bankruptcy petition is filed it is set for a 341 meeting of creditors, which the Chapter 7 bankruptcy debtor(s) are required to attend. At the 341 hearing there is a trustee, who is an attorney.....not a judge. The trustee is not the one who decides whether or not your Chapter 7 bankruptcy sails through the process to discharge, so don't go into the 341 meeting thinking that you are going to get a stamp of approval or denial. If the trustee believes that there is a problem with your Chapter 7 bankruptcy going through to discharge he or she simply submits a form the the United States Trustee's office.
The United States Trustee's office has 10 days from the 341 hearing to file what is called a notice of presumed abuse. So if it has been more than 10 days since your Chapter 7 bankruptcy has been filed, the trustee is not going to object to you receiving a discharge in Chapter 7 bankruptcy. If a notice of presumed abuse is filed in your case there is an additional process, which you can read about in my prior blog here, but rest assured that in my experience most of these cases proceed to discharge.
So I guess what I would say to those considering bankruptcy is try to relax, although I know this can be difficult. In my experience, the vast majority of Chapter 7 bankruptcy petitions that are filed for people living in the Indianapolis are go through and receive a discharge without any problems. The bottom line is that if you have found an attorney you trust and he or she tells you that your Chapter 7 bankruptcy will go through just fine, chances are that it probably will. So, try not to worry about whether your petition will be approved. Instead, concentrate on getting your financial management course completed and pay attention to any other correspondence you receive from your attorney.
I represent those who need to file Chapter 7 and Chapter 13 bankruptcy in Indianapolis, Carmel, Zionsville, Noblesville, Fishers, Tipton, Anderson and the surrounding areas. I offer an initial consultation at no cost where we discus your finances, assets and go over whether bankruptcy would make sense for you. At this meeting I answer your questions and there is no requirement that you move forward with bankruptcy. It is simply an informational meeting. If you would like to come in to discuss whether bankruptcy might be a way to solve your financial problems click here or call our office at 317-575-8222.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses.
Tuesday, January 17, 2012
Preparing to Meet With an Indiana Bankruptcy Lawyer: What do you need?
So, you have made the first step toward solving your debt problems. I offer my congratulations on this, because you are going to be able to come up with a plan! You are going to be able to sleep at night and that 20,000 pound gorilla is going to be removed from your shoulders....and the solutions may not even include filing for bankruptcy.
I know that those who contact Halcomb Singler to meet with me regarding bankruptcy are often stressed out, nervous, emotional and are at the end of their rope. I know they have tried to avoid calling my office or the office of any Indiana bankruptcy attorney. I both respect and understand that fact. And I know that once a person contacts a bankruptcy attorney they often move from being stressed about contacting a bankruptcy attorney to being nervous about meeting with a bankruptcy attorney.
When you meet with a bankruptcy attorney you are not armed with the information that he or she will need to determine whether bankruptcy can help and/or to answer your questions regarding the bankruptcy. I cannot speak for all attorneys, but I know what information I need to be able to evaluate options for solving debt problems:
1. What is your household income on a monthly basis after taxes (this includes what is made by a live-in significant other);
2. What are your monthly living expenses?
3. To whom do you owe money and approximately how much? (i.e, how much do you owe in personal loans, credit cards, medical bills, on auto loans, mortgage(s), etc.) Don't worry about these being down to the penny....a ballpark number will do just fine.
4. How much are your assets worth? (I will need to know the approximate value of any real estate, vehicles, or valuable pieces of personal property....probably $4,000.00 or more).
That's it. That's all I really need you to be able to tell me. Based on these answers I will let you know whether bankruptcy could be helpful and if I do believe your bankruptcy would be helpful perhaps even what type of bankruptcy to file. With that being said, I will need much, much more information before I am actually able to file your bankruptcy. But I will give you a questionnaire and checklist of documents in the event you decide to move forward that will give me all of the information I need to make sure that your bankruptcy petition if filed and that you receive the discharge you need.
And don't worry about feeling self conscious that the attorney is "judging" your debt. Bankruptcy attorneys talk about debt all day long and they simply need to know the numbers to properly give advice. I believe being embarrassed about debt in a conversation with a bankruptcy attorney is similar to being embarrassed at the dentist because you have a cavity or bad breath. The bottom line is you shouldn't be embarrassed by seeking the assistance of a professional whose job it is to help those in your situation!
To have an initial bankruptcy conversation with me at Halcomb Singler just call my office at 317-575-8222 to set up an appointment. I accept new clients who live in Indianapolis, Noblesville, Fishers, Anderson, Zionsville, Carmel, Tipton, Kokomo and the surrounding areas. I look forward to speaking with you.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses.
I know that those who contact Halcomb Singler to meet with me regarding bankruptcy are often stressed out, nervous, emotional and are at the end of their rope. I know they have tried to avoid calling my office or the office of any Indiana bankruptcy attorney. I both respect and understand that fact. And I know that once a person contacts a bankruptcy attorney they often move from being stressed about contacting a bankruptcy attorney to being nervous about meeting with a bankruptcy attorney.
When you meet with a bankruptcy attorney you are not armed with the information that he or she will need to determine whether bankruptcy can help and/or to answer your questions regarding the bankruptcy. I cannot speak for all attorneys, but I know what information I need to be able to evaluate options for solving debt problems:
1. What is your household income on a monthly basis after taxes (this includes what is made by a live-in significant other);
2. What are your monthly living expenses?
3. To whom do you owe money and approximately how much? (i.e, how much do you owe in personal loans, credit cards, medical bills, on auto loans, mortgage(s), etc.) Don't worry about these being down to the penny....a ballpark number will do just fine.
4. How much are your assets worth? (I will need to know the approximate value of any real estate, vehicles, or valuable pieces of personal property....probably $4,000.00 or more).
That's it. That's all I really need you to be able to tell me. Based on these answers I will let you know whether bankruptcy could be helpful and if I do believe your bankruptcy would be helpful perhaps even what type of bankruptcy to file. With that being said, I will need much, much more information before I am actually able to file your bankruptcy. But I will give you a questionnaire and checklist of documents in the event you decide to move forward that will give me all of the information I need to make sure that your bankruptcy petition if filed and that you receive the discharge you need.
And don't worry about feeling self conscious that the attorney is "judging" your debt. Bankruptcy attorneys talk about debt all day long and they simply need to know the numbers to properly give advice. I believe being embarrassed about debt in a conversation with a bankruptcy attorney is similar to being embarrassed at the dentist because you have a cavity or bad breath. The bottom line is you shouldn't be embarrassed by seeking the assistance of a professional whose job it is to help those in your situation!
To have an initial bankruptcy conversation with me at Halcomb Singler just call my office at 317-575-8222 to set up an appointment. I accept new clients who live in Indianapolis, Noblesville, Fishers, Anderson, Zionsville, Carmel, Tipton, Kokomo and the surrounding areas. I look forward to speaking with you.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses.
Thursday, January 12, 2012
There is No Such Thing as "One Size Fits All" Legal Advice
Forgive me for a moment as I am clearly straying from the topic of debt/bankruptcy/money management with this posting. However, I have seen several examples of late of those who wasted good money on "forms" from the internet or though buying a DVD set or even by buying a form agreement at a store. This includes you Suze Orman (I am a fan of hers for the most part but don't like when she gives legal advice or sells estate planning packages on DVD).
I am afraid that in my opinion there is no "free lunch" to speak of in the legal world. The one caveat to that, of course, would be a parent who paid his or her child's way through undergrad and law school...I'm pretty sure that you should be entitled to some free legal advice. But outside of a very close family member being an attorney I submit that it is always better to seek reasonably priced legal services than to search the internet for answers, to buy a form at a store or to order a dvd set offline and I'd like to explain why I believe this to be true.
The reason it is best to find cost-effective legal representation is because no two legal problems are the same. No two situations require the same exact wording in an agreement as another. As the title states, there is no such thing as "one size fits all" legal advice. Because at the end of the day if the form you downloaded from the internet or purchased from a store actually was the correct form (doubtful), then do you really know how to fill it out? Do you really understand what you are signing? Do you know that you are protected by the agreement in the event the other party doesn't do what you believe they should do?
I'm going to go ahead and guess that your answers to the above questions are "no." The reason that I know this to be true is that at Halcomb Singler, LLP, we often have people come in for a consultation because they have an issue with one of these agreements, estate planning documents or other forms that they completed without the assistance of an attorney. In most of these situations the potential client would have spent far less on attorneys fees if they had contacted a lawyer in the first place to effectuate their agreement, estate plan, deed, etc. But once toothpaste is out of the tube it is much more difficult (and therefore much more expensive) for a lawyer to fix the situation.
We have seen a lot of crazy attempts at armchair lawyering including filling out a mortgage "form" when the parties intended to enter into a land sale agreement, people who believe signing a contract with a code section after they name makes the agreement void, a person who downloaded a form for a will from and then failed to execute it in the manner required by Indiana law.
The bottom line is that every person's legal situation is vastly different from the next. At Halcomb Singler, LLP, we sit down and meet with clients to find out what legal need that they have, to discuss it with them to make sure that we present any available options and then to allow them to choose the option that they believe is best for their legal needs and bank account. We understand that very few individuals or small businesses can afford thousands of dollars in legal fees and we do what we can to keep our fees low or charge a flat fee when possible. And the best news is that there are many, many lawyers and law firms who operate in the same manner who represent mostly small businesses and individuals and are not sending out a bill for several thousand dollars each month.
I know it seems easier to try to save a few bucks on the front end of a legal transaction by attempting to do it yourself or to buy a one size fits all legal solution. However, I urge you to consider finding an attorney with whom you feel comfortable to review your situation and advise you of your options. I think in many cases you might even be pleasantly surprised by the fee.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses.
I am afraid that in my opinion there is no "free lunch" to speak of in the legal world. The one caveat to that, of course, would be a parent who paid his or her child's way through undergrad and law school...I'm pretty sure that you should be entitled to some free legal advice. But outside of a very close family member being an attorney I submit that it is always better to seek reasonably priced legal services than to search the internet for answers, to buy a form at a store or to order a dvd set offline and I'd like to explain why I believe this to be true.
The reason it is best to find cost-effective legal representation is because no two legal problems are the same. No two situations require the same exact wording in an agreement as another. As the title states, there is no such thing as "one size fits all" legal advice. Because at the end of the day if the form you downloaded from the internet or purchased from a store actually was the correct form (doubtful), then do you really know how to fill it out? Do you really understand what you are signing? Do you know that you are protected by the agreement in the event the other party doesn't do what you believe they should do?
I'm going to go ahead and guess that your answers to the above questions are "no." The reason that I know this to be true is that at Halcomb Singler, LLP, we often have people come in for a consultation because they have an issue with one of these agreements, estate planning documents or other forms that they completed without the assistance of an attorney. In most of these situations the potential client would have spent far less on attorneys fees if they had contacted a lawyer in the first place to effectuate their agreement, estate plan, deed, etc. But once toothpaste is out of the tube it is much more difficult (and therefore much more expensive) for a lawyer to fix the situation.
We have seen a lot of crazy attempts at armchair lawyering including filling out a mortgage "form" when the parties intended to enter into a land sale agreement, people who believe signing a contract with a code section after they name makes the agreement void, a person who downloaded a form for a will from and then failed to execute it in the manner required by Indiana law.
The bottom line is that every person's legal situation is vastly different from the next. At Halcomb Singler, LLP, we sit down and meet with clients to find out what legal need that they have, to discuss it with them to make sure that we present any available options and then to allow them to choose the option that they believe is best for their legal needs and bank account. We understand that very few individuals or small businesses can afford thousands of dollars in legal fees and we do what we can to keep our fees low or charge a flat fee when possible. And the best news is that there are many, many lawyers and law firms who operate in the same manner who represent mostly small businesses and individuals and are not sending out a bill for several thousand dollars each month.
I know it seems easier to try to save a few bucks on the front end of a legal transaction by attempting to do it yourself or to buy a one size fits all legal solution. However, I urge you to consider finding an attorney with whom you feel comfortable to review your situation and advise you of your options. I think in many cases you might even be pleasantly surprised by the fee.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses.
Saturday, January 7, 2012
Can I Keep One Credit Card For After My Bankruptcy?
Many of people considering bankruptcy that meet with me at Halcomb Singler, LLP, ask whether they can leave a credit card out of their bankruptcy filing so that they can have a credit card to use after the bankruptcy is over.
Let me begin by saying that this is a valid question. Even making an appointment to speak with a bankruptcy attorney is a stressful and scary proposition to many of the people I meet with at my law firm. I encourage potential clients to ask me whatever questions they like and I will answer them all. I allot one hour for each appointment with a new client. I don't want to rush potential clients after they have taken the step to reach out for assistance with their debt problems.
With that being said, the short answer to the question of whether one credit card can be left out of a bankruptcy filing for use after the bankruptcy is no. Simply put, if you decide to file for bankruptcy each and every debt you owe on the date of the filing of the bankruptcy petition must be included. You must attest under oath that the petition lists each and every one of your debts.
But I'd like to talk further about this issue than just the quick "no" offered by the bankruptcy Court and discuss this issue further. I wonder why we as a society are so attached to credit cards? Why do we feel that we cannot operate without the safety net of credit cards? It is my hope that with the recent recession that people will cut credit cards out. This is especially true of those who file bankruptcy. Although it is true that bankruptcy should be avoided when possible, filing bankruptcy can be a blessing for those who need a fresh start. It is unwise to take that fresh start lightly. In my opinion those who have filed bankruptcy are in a great position to live the rest of their lives without debt. Why get off on the wrong foot again by using a credit card after bankruptcy?
Most tell me that they need the card to be able to rent a car or to stay in a hotel. I can attest personally that this is not true. I do not use credit cards and have both rented cars and stayed in hotels using my debit card. I recently went on a cruise and my debit card was used as my onboard credit card. The bottom line is that you don't need a credit card to do anything. You only need to use a credit card if you don't have enough money in your bank account to pay for what it is that you would like to do. If that is the case you can't afford it. The best way to make sure you take full advantage of all that bankruptcy can provide is to make sure that you build up savings and avoid credit after your bankruptcy has been discharged.
So if you find yourself in financial crisis this new year, bankruptcy may be able to help. Bankruptcy is not a magic wand that automatically fixes all debt problems. However, for many people, bankruptcy has given them the fresh start they need to lead successful financial futures. There are no dumb questions about bankruptcy. If you live in the central Indiana/Indianapolis area and are questioning whether bankruptcy can give you the fresh start you need please call me. I will sit down with you personally, go over your situation, and offer my opinion as to whether bankruptcy could help. There is no fee for this consultation and if you do decide you are going to proceed with bankruptcy Halcomb Singler offers flat fees and payment plans. If you would like to set up an initial consultation call our office at (317) 575-8222 or click here and we will contact you to set up an appointment. Happy New Year!
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses.
Let me begin by saying that this is a valid question. Even making an appointment to speak with a bankruptcy attorney is a stressful and scary proposition to many of the people I meet with at my law firm. I encourage potential clients to ask me whatever questions they like and I will answer them all. I allot one hour for each appointment with a new client. I don't want to rush potential clients after they have taken the step to reach out for assistance with their debt problems.
With that being said, the short answer to the question of whether one credit card can be left out of a bankruptcy filing for use after the bankruptcy is no. Simply put, if you decide to file for bankruptcy each and every debt you owe on the date of the filing of the bankruptcy petition must be included. You must attest under oath that the petition lists each and every one of your debts.
But I'd like to talk further about this issue than just the quick "no" offered by the bankruptcy Court and discuss this issue further. I wonder why we as a society are so attached to credit cards? Why do we feel that we cannot operate without the safety net of credit cards? It is my hope that with the recent recession that people will cut credit cards out. This is especially true of those who file bankruptcy. Although it is true that bankruptcy should be avoided when possible, filing bankruptcy can be a blessing for those who need a fresh start. It is unwise to take that fresh start lightly. In my opinion those who have filed bankruptcy are in a great position to live the rest of their lives without debt. Why get off on the wrong foot again by using a credit card after bankruptcy?
Most tell me that they need the card to be able to rent a car or to stay in a hotel. I can attest personally that this is not true. I do not use credit cards and have both rented cars and stayed in hotels using my debit card. I recently went on a cruise and my debit card was used as my onboard credit card. The bottom line is that you don't need a credit card to do anything. You only need to use a credit card if you don't have enough money in your bank account to pay for what it is that you would like to do. If that is the case you can't afford it. The best way to make sure you take full advantage of all that bankruptcy can provide is to make sure that you build up savings and avoid credit after your bankruptcy has been discharged.
So if you find yourself in financial crisis this new year, bankruptcy may be able to help. Bankruptcy is not a magic wand that automatically fixes all debt problems. However, for many people, bankruptcy has given them the fresh start they need to lead successful financial futures. There are no dumb questions about bankruptcy. If you live in the central Indiana/Indianapolis area and are questioning whether bankruptcy can give you the fresh start you need please call me. I will sit down with you personally, go over your situation, and offer my opinion as to whether bankruptcy could help. There is no fee for this consultation and if you do decide you are going to proceed with bankruptcy Halcomb Singler offers flat fees and payment plans. If you would like to set up an initial consultation call our office at (317) 575-8222 or click here and we will contact you to set up an appointment. Happy New Year!
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses.
Tuesday, January 3, 2012
Top 10 Dumb Expenses To Cut in 2012
As a bankruptcy attorney at Halcomb Singler, LLP, I meet with people or speak to people who are struggling financially just about every day. I have realized that many people have a hard time identifying expenses that they can cut out of their budget to free up some extra cash or to make ends meet. Lets face it, when we get used to a certain standard of living it is not always easy to cut some things out. As an outsider, it is easier for me to see what expenses are cutting into cash flow. I can say that the expenses hurting people are often what I call death by a million cuts. They are not necessarily the house payment or utility bills, but thing that people do not budget for, such as impulse buys, children's activities, etc. So I wanted to start out 2012 with my list of the top 10 expenses to cut this year.
1. Expensive Cell Phone Plans: Is it even possible to buy a phone without internet capabilities that is actually just a phone? Smart phones can make life easier, but for a family I see many people who have cell phone bills the size of a decent car payment. The most common reason for this is that they are paying for cell phones for several children. There must be a limit to what you spend on your cell phone. Solutions? There are many. One would be not to buy your kids cell phones. Let them know if they would like a cell phone they need to earn the money to pay for it. This will teach your kids how to be good with their money. Or, if your kids must have a cell phone and could not possibly work, have them share one. No reason for a car payment cell phone bill in 2012.
2. Eating Lunch Out: It never ceases to amaze me how many people eat lunch out every day. In addition to the havoc that this can cause to your waistline, going out to lunch every day is a seriously expensive habit. People always want to tell me that it is ok because each lunch only costs them $5-10 per day, which is equal to $150.00-300.00 per month. That is out of control. That means in one year that you are spending $3600.00 just on lunches. Married? It doubles to $7,200.00. Have 2 kids in school who buy a lunch? It would mean spending about $9,000.00 per year on school lunches. If that isn't enough to convince you that the time spent each night packing lunches isn't worth it I don't know what would.
3. Health Clubs Sometimes. Ok, this is a touch subject that I have to watch because I could get hypocritical pretty fast.....because I spend a LOT of money for my gym membership. However, I go 4 to 6 days per week and have been working out at that frequency for my entire adult life. So my "sometimes" here goes for those of you who don't stick to working out. As it is New Years many gyms are packed with people who those of us who work out all year hate. We sit around and wait until February when the crowd at the gym has thinned and then are really happy at the end of March when all of those "New Years Resolution People" have left and the gym is no longer splitting at the seams. So, if you are using your gym all year long I think it ok to spend money (so long as you can afford it). Lets face it....staying healthy for as long as possible will save you a lot of money on health care in the long run. However, if you aren't using your gym membership (like so many do not after March), get rid of it because it is an unnecessary expense.
4. Storage Units: Ok, if you are in the process of attempting to sell your house and had to de-clutter you get a pass. But if you are paying $100.00 per month for a storage unit just because you have bought so much stuff that it doesn't fit into your house you are wasting money. Why not have a garage sale and sell the extra stuff or put it on Craigslist? If it is in storage it can't mean that much to you in the first place so why not eliminate this expense while at the same time making some extra cash.
5. Coffe: The average foo foo drink at Starbucks is like $5.00 and is full of sugar. See the reasoning for number 2, but I see so many people spending so much money on Starbucks that I thought it deserved its own number.
6. Overpaying for Cable: Okay....I am not to the point where I am going to tell you that you should cancel cable (unless you are not making ends meet). But many people pay too much for cable. If you have extra channels like HBO, Showtime, etc, you are paying too much. Regular cable at my house has at least 100 channels. If you can't figure out something to watch on 100 channels turn off the TV and find something productive to do. Also, call and negotiate with your cable company about once a year to make sure you are getting the best rate.
7. Stop buying crap. Since this is extremely vague, let me elaborate. I am talking about little things that are so cute and you buy them to display or for a joke or just because it was a dollar. I am thinking St. Patrick's Day decorations, Halloween decorations, kitchen plates just for Easter, a bowl of pine cones to set on a random table in the dining room or generally anything that requires dusting that is not a piece of furniture. I am always amazed at the amount of pointless crap that most American accumulate that is virtually useless, but which they paid for. If you don't believe me pay attention to how much stuff you throw out next time you move. The little things add up....plus your next move will be easier without this stuff.
8. The latest and greatest in gadgets. Somehow I have managed to survive as an adult in our society without an i phone, an i pod and i pad or a GPS. I actually don't even have the internet at my house. Although some may find this shocking I really don't mind. I have a smartphone and it allows me to find the same information as all of these devices. I don't know if my cell phone is 4G and I don't care. This year resolve to yourself that you are not less of a person if you do not go out and get the latest and greatest cell phone the moment it comes out. Instead, use your old crappy cell phone until it breaks into pieces and smile about how much more money is in your bank account.
9. Stuff for your kids. Kids are cute and we like to make them happy. But for both your sake and the sake of the kids there must be a limit to what you spend on them. Getting your kid into horseback riding, for example, may result in the need for a second mortgage on your house. Budget your children's activities and set a limit for each child. Tell the children the limit and let them choose which activity(ies) are the most important. Again, this teaches children that there are constraints on what they can do due to money and they will focus on the activity or activities that make them happiest.
10. Tobacco. This is so common sense that I almost left it off of the list. But if you are trying to cut something out of your budget in 2012 I'd go for that thing that you are paying to kill you and to cost you a lot of money in future medical bills. It is also something you can cut out that increases the likelihood you will live long enough to see your children get married and have children. I think it is actually smarter to gamble the amount of money you are spending each month on tobacco than to buy tobacco. Although gambling could also be on this list.
What are some dumb things you can think of that we spend money on? Have suggestions on how to spend less money on dumb things? Post your thoughts to comments!
P.S. I think I need to add fake nails as #11. No reason to spend $25.00 every month on keeping your fake nails looking nice. Instead buy a bottle of nail polish for $8.00 that will last you the year.
1. Expensive Cell Phone Plans: Is it even possible to buy a phone without internet capabilities that is actually just a phone? Smart phones can make life easier, but for a family I see many people who have cell phone bills the size of a decent car payment. The most common reason for this is that they are paying for cell phones for several children. There must be a limit to what you spend on your cell phone. Solutions? There are many. One would be not to buy your kids cell phones. Let them know if they would like a cell phone they need to earn the money to pay for it. This will teach your kids how to be good with their money. Or, if your kids must have a cell phone and could not possibly work, have them share one. No reason for a car payment cell phone bill in 2012.
2. Eating Lunch Out: It never ceases to amaze me how many people eat lunch out every day. In addition to the havoc that this can cause to your waistline, going out to lunch every day is a seriously expensive habit. People always want to tell me that it is ok because each lunch only costs them $5-10 per day, which is equal to $150.00-300.00 per month. That is out of control. That means in one year that you are spending $3600.00 just on lunches. Married? It doubles to $7,200.00. Have 2 kids in school who buy a lunch? It would mean spending about $9,000.00 per year on school lunches. If that isn't enough to convince you that the time spent each night packing lunches isn't worth it I don't know what would.
3. Health Clubs Sometimes. Ok, this is a touch subject that I have to watch because I could get hypocritical pretty fast.....because I spend a LOT of money for my gym membership. However, I go 4 to 6 days per week and have been working out at that frequency for my entire adult life. So my "sometimes" here goes for those of you who don't stick to working out. As it is New Years many gyms are packed with people who those of us who work out all year hate. We sit around and wait until February when the crowd at the gym has thinned and then are really happy at the end of March when all of those "New Years Resolution People" have left and the gym is no longer splitting at the seams. So, if you are using your gym all year long I think it ok to spend money (so long as you can afford it). Lets face it....staying healthy for as long as possible will save you a lot of money on health care in the long run. However, if you aren't using your gym membership (like so many do not after March), get rid of it because it is an unnecessary expense.
4. Storage Units: Ok, if you are in the process of attempting to sell your house and had to de-clutter you get a pass. But if you are paying $100.00 per month for a storage unit just because you have bought so much stuff that it doesn't fit into your house you are wasting money. Why not have a garage sale and sell the extra stuff or put it on Craigslist? If it is in storage it can't mean that much to you in the first place so why not eliminate this expense while at the same time making some extra cash.
5. Coffe: The average foo foo drink at Starbucks is like $5.00 and is full of sugar. See the reasoning for number 2, but I see so many people spending so much money on Starbucks that I thought it deserved its own number.
6. Overpaying for Cable: Okay....I am not to the point where I am going to tell you that you should cancel cable (unless you are not making ends meet). But many people pay too much for cable. If you have extra channels like HBO, Showtime, etc, you are paying too much. Regular cable at my house has at least 100 channels. If you can't figure out something to watch on 100 channels turn off the TV and find something productive to do. Also, call and negotiate with your cable company about once a year to make sure you are getting the best rate.
7. Stop buying crap. Since this is extremely vague, let me elaborate. I am talking about little things that are so cute and you buy them to display or for a joke or just because it was a dollar. I am thinking St. Patrick's Day decorations, Halloween decorations, kitchen plates just for Easter, a bowl of pine cones to set on a random table in the dining room or generally anything that requires dusting that is not a piece of furniture. I am always amazed at the amount of pointless crap that most American accumulate that is virtually useless, but which they paid for. If you don't believe me pay attention to how much stuff you throw out next time you move. The little things add up....plus your next move will be easier without this stuff.
8. The latest and greatest in gadgets. Somehow I have managed to survive as an adult in our society without an i phone, an i pod and i pad or a GPS. I actually don't even have the internet at my house. Although some may find this shocking I really don't mind. I have a smartphone and it allows me to find the same information as all of these devices. I don't know if my cell phone is 4G and I don't care. This year resolve to yourself that you are not less of a person if you do not go out and get the latest and greatest cell phone the moment it comes out. Instead, use your old crappy cell phone until it breaks into pieces and smile about how much more money is in your bank account.
9. Stuff for your kids. Kids are cute and we like to make them happy. But for both your sake and the sake of the kids there must be a limit to what you spend on them. Getting your kid into horseback riding, for example, may result in the need for a second mortgage on your house. Budget your children's activities and set a limit for each child. Tell the children the limit and let them choose which activity(ies) are the most important. Again, this teaches children that there are constraints on what they can do due to money and they will focus on the activity or activities that make them happiest.
10. Tobacco. This is so common sense that I almost left it off of the list. But if you are trying to cut something out of your budget in 2012 I'd go for that thing that you are paying to kill you and to cost you a lot of money in future medical bills. It is also something you can cut out that increases the likelihood you will live long enough to see your children get married and have children. I think it is actually smarter to gamble the amount of money you are spending each month on tobacco than to buy tobacco. Although gambling could also be on this list.
What are some dumb things you can think of that we spend money on? Have suggestions on how to spend less money on dumb things? Post your thoughts to comments!
P.S. I think I need to add fake nails as #11. No reason to spend $25.00 every month on keeping your fake nails looking nice. Instead buy a bottle of nail polish for $8.00 that will last you the year.
Halcomb Singler, LLP, is a debt relief agency. It helps people file for bankruptcy under the bankruptcy code. No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so. The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses.
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