Charlotte, NC Bankruptcy Lawyer and Debt Settlement Legal Services

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I consider myself one of the “small people” that the leader of BP condescended to “ care about”. Raised with 6 other children on a teacher’s income, as a boy, I trimmed hedges and mowed lawns to buy tennis shoes. Later on, I worked fulltime, attended business school and law school in the evenings, and repaired everything from cars to dishwashers with whatever I could find in my garage. So from one small person to another, here is my best advice.
Don’t Wait!!
The cost of waiting is too high. There have been over 50,000 payment claims filed and only 26,500 paid. Passively waiting is the kiss of death and can thrust you and your family into financial crisis, spiraling credit card debt and even bankruptcy. Don’t wait for the date to come, start following up ahead of time and keep detailed records of calls, names, dates, etc.. Consult an Expert.
Not a relative or a friend of a neighbor who once knew someone in a similar situation 20 years ago. Seek out a licensed and credentialed resource (see below) that is knowledgeable about the current legislation and changes to direct you & establish a plan of action. Once the plan is in place, follow it. Ask questions when you are unclear and ask for everything in writing.

Below are the websites and contact numbers for the Bar Associations and some suggested guides for Gulf Disaster Victims seeking Legal Assistance.

www.floridabar.org
www.lsba.org
www.msbar.org

Call the Florida Bar toll free
1.866.854.5050
Call the Louisiana Bar toll free
1.800.421.5722
Call the Mississippi Bar
1.601.948.4471

Helpful Guides:

Mass Disaster: A Victim’s Guide
A Consumer Guide to Client Rights
Guide to Find Lawyer

Remember to verify the lawyer’s credentials before agreeing to representation or handing over any payments. Look for address, Bar number, area of expertise & eligibility to practice law in that state.

While watching the ongoing coverage of the BP Oil Spill in the Gulf, Americans residing in areas outside of the Gulf may naively assume that only those individuals residing and working in the affected geographical areas will be financially impacted. Not true. Many American wallets across the country will be pinched and feel the painful costs in the aftermath of the oil spill.
A simple explanation of the Butterfly Effect metaphor; the concept is based in chaos theory and refers to the far reaching “ripple effects” that are created from the changes which occur once a butterfly flaps its wings. This theory is studied at length in both semi-classical and quantum physics. The Butterfly Effect also appears in popular culture, typically in time travel fiction and films such as drama, “The Butterfly Effect”, starring Ashton Kutcher.
Picture a giant green and yellow BP butterfly covered in dollar sign tattoos., flapping its wings furiously. Here is a preliminary list of who will be affected financially from complete to partial loss of income, reduction in spending or use of services, organizational cost cutting and finally increased cost of goods and services. This is by no means a full compilation, more like the tip of the iceberg.

1) Residents of the Gulf employed by fishing industry
2) Residents of the Gulf employed by hospitality and tourism industry
3) Small Businesses Owners in the Gulf such as diners, gas stations, and franchises
4) Residents of the Gulf employed by small businesses
5) Shareholders who rely upon BP stock dividends as part of their annual income.
6) BP employees
7) Vendors & Sub-contractors doing business with BP
Banks doing business with all of the previously listed
9) Insurance Companies, their employees and shareholders
10) Individuals and Businesses faced with higher insurance premiums
11) Individuals and Businesses who purchase gas and seafood products….
Due to spatial constraints, I end the list and trust that the point is made; the damage is not limited by geographical proximity. BP has set up a $20 billion trust for reparations, as of Day 65, over 51,000 lost wage claims were filed but only approximately 26,500 claim payments were actually issued by BP. Therefore, it is safe to assume that the other claimants are in some degree of financial crisis, with escalating credit card dependency and diminishing cash reserves. Chapter 7 or Chapter 13 Bankruptcy may be the only option for some individuals. Remember though, these are the people that are covered by BP’s $20 billion dollar trust fund, what about everyone else?

WARNING: The Latest Internet Scam is Credit Card Debt Termination.

Too good to be true because it is 100% False.
Consumers be warned- “credit card debt termination” scams are spreading like wildfire right now on the Internet. It usually goes by the name “Credit Card Termination or some variation on that name, and victims are paying thousands of dollars for this bogus service with the false belief that their debt will dissipate and their credit scored will not be damaged. By presenting a phony interpretation of banking and accounting laws, these con artists claim that they can legally terminate all of your credit card debt. They will go as far as hosting phony arbitrations and presenting victims with fake court documents.

This scheme has its roots in the income tax protest movement of the 1970s, where people were claiming that paying taxes was unconstitutional. Among professionals in the collection industry, the “Credit Card Termination” scam is called the “monetary protest movement.” The common theme with these programs is that our banking system prohibits banks from lending out their own money. So how does a credit card bank extend credit then? The protesters claim that the credit card agreement itself becomes a form of money the moment you sign it. Their premise is that the bank “deposits” your agreement as an asset on their books, and then any credit you use is offset as a liability against that asset. The scam promoters claim that all you need to do to wipe out your debt is demand your original “deposit” back from the bank, which will be offset against what you borrowed. THIS IS NOT TRUE or LEGITIMATE!! Just as the IRS shut down the tax protesters, the Attorney General’s Offices are actively prosecuting businesses and individuals for their participation in these fraudulent “debt termination” services.

Individuals in financial crisis may be tempted and lured in by the false promises and bogus testimonials advertised on the web pages of these, only to find themselves in worse trouble and greater debt. As I have advocated in other articles, investigate the credibility of any debt service providers you are considering. Are they licensed attorneys? Do they belong to the Better Business Bureau? Is there a physical office and address you can verify? Though you may feel stressed out, hopeless and think that things could not get any worse- trust me, get involved with one of these bogus “debt termination” scams and things will get a lot worse as your creditors, assuming that you have blithely ignored them, come after you.

As the Baby Boomer workforce faces retirement, personal debt will be a problem for many. Baby Boomers have earned the moniker “Sandwich Generation” as they are the first generation to face significant financial obligations for the previous generation as well as the future generation. Medical bills and assisted care for aging parents and skyrocketing education expenses are just a few examples of costs that will force a growing number of Baby Boomers to carry more debt into retirement. This debt will drain further an already underfunded retirement savings and force many Boomers to work longer or accept a lower standard of living.

The recession and weak economy have further hindered Baby Boomers in their quest to retire and enjoy the fruits of their lifetime of labor. 401K account balances have dwindled and have mockingly referred to as “201K’s”. On top of this, Social Security and Medicare will be going through many changes, which may further complicate future plans for Baby Boomers.

While most financial guides advocate the best way to prepare for retirement is to “save more money”, this advice is not particularly helpful or feasible for many Baby Boomers, given the financial realities they face. Neither are the traditional principles of curtailing spending or increasing earnings. 

* Save More – If they could, they would. Baby Boomers are the most driven and successful generation in terms of goal attainment and focus; patronizing, irrelevant advice such as this is both unhelpful as well as irritating.

* Spend Less – This works only on discretionary spending and is not particularly applicable to health insurance, medicine and medical care spending which is significant and ongoing for Baby Boomers caring for aging parents.
* Earn More – With soaring unemployment, organizational downsizing and cost cutting, it is more and more difficult for Baby Boomers to find paycheck which will cover their expenses and financial obligations AND fund retirement.

Most Baby Boomers ascribe to traditional values of honoring financial obligations and payments to their creditors, resulting in a highly stressful juggling act. Adding to the stress of the situation is the self imposed isolation; most Baby Boomers are ashamed to acknowledge, discuss or seek help with their debt.

If you are a Baby Boomer and have nodded in agreement while reading this article, let me ask for a few more moments of your time. There is nothing dishonorable about obtaining advice and assistance to manage financial hardship. If you are the sole supporter of your family, seeking help is the smart and responsible decision rather than suffering alone, letting the stress of the situation wear you down both physically and mentally. Recall airline safety demonstrations- place your own emergency oxygen mask on first before assisting your dependents.

“I feel like I can breathe again”, many of my clients say after learning about the debt relief options available to them. Legitimate debt relief providers, such as licensed attorneys and non-profit organizations, can give the information, guidance and planning individuals in financial crisis need to end the spiral of mounting debt and move towards financial wellness. Baby Boomers, make happiness the main ingredient in the generational “sandwich” of your lives.

In the current economic environment, many people have fallen into debt. As the debts continue to multiply, the ability to pay them becomes virtually impossible. As the reasons and causes of the debt vary from each individual, so do the solutions. It is important to understand that Bankruptcy is NOT a one size fits all solution.

Contrary to popular belief, not everyone is eligible to declare bankruptcy. In October of 2008, the means test established by the 2005 Federal Bankruptcy Reform act was adjusted. This means test compares your income with the median average monthly income in your state to determine whether you are eligible to have your debts discharged in bankruptcy or whether you must participate in a repayment plan and/or file Chapter 13 bankruptcy instead of Chapter 7 bankruptcy. Median income figures were adjusted by the Department of Justice on October 1, 2008, altering the numbers at which you would be considered eligible for discharge of debt. If you have questions about these laws or the impact on your case, consult with an experienced bankruptcy attorney in your state who can provide you with relevant local information and rules.

While bankruptcy should be considered as an option, it should not be recommended immediately as the ONLY option. Without a detailed, personal financial analysis and application of the Federal Bankruptcy Means Test, it is impossible to truly know if the individual even qualifies to file bankruptcy. If a service provider instantly pushes for bankruptcy as the only solution- this should be a red flag to individuals that they may need to get a second opinion.

About the Author: Joseph M. Bochicchio, PLLC. is a licensed Charlotte, NC Bankruptcy Lawyer with nearly 2 decades of experience in finance and law. His Charlotte Debt Settlement Law Firm is committed to providing legal and ethical guidance for North Carolinians facing financial hardship.