It’s not your fault. In addition to plain old overspending, many of life’s inevitable challenges by their very nature push us into debt, try as we might to stay out of it. Here are some of the biggies:
We’ll talk about medical expenses in this post.
Whatever you do, don’t get sick in this country. If you’re one of the lucky ones in this game of medical musical chairs, and you happen to have health insurance at the moment you need it, you might get through a serious illness without needing to file for bankruptcy. Even if you do have health insurance, it’s very likely that it won’t cover the entire cost of your treatment, and the bills for that treatment will just keep coming, month after month after month.
Perhaps you’re recovering from debilitating illness or a serious accident. You’re probably still not feeling up to par. You may have missed several weeks – or months – of work. You reel as you open the hospital bill ($7 for a Band-Aid?!). Then along comes the doctor’s bill. The hospital bill has doctor’s charges. The one that just arrived is the big one. Now you’ve been careful with your money, and it looks like you can handle this bill too. But then along come more bills: the anesthesiologist, the specialist, the pharmacy. Some of this stuff may be covered by insurance, but some of it may not. You could fight with the insurance company to get them to pay more, but that’s about as futile as taking on Mike Tyson.
Maybe the hospital can cut you a break. Some hospitals do have debt forgiveness programs or slow-pay options, where you can pay as little as $10 per month on your bill (most likely for the rest of your life), but many don’t advertise this fact. You’ll need to ask for this option early, before they send the debt to a collection agency.
It’s shocking to see how many hospitals take such drastic steps against their patients after they go home. Most of these patients have been out of work for some time, and many have lost their jobs completely. And the patient never knows how huge those debts will actually be until the tidal wave of bills has ebbed. Hospitals are some of the quickest creditors to send your bill to a collection agency, assuring that you will be harassed for this unplanned, unwanted debt. Some actually file lawsuits against their patients, getting judgment against them that become liens on their property and wage garnishment.
There are “nonprofit” hospitals you can use. But surprisingly, many of them are among the most aggressive bill collectors, priding themselves on high collection ratios and impressive earnings.
Many private doctors are much more generous to patients who cannot pay. Often, if you talk to their billing department about your situation, they will reduce or simply write off a balance if it is not covered by insurance. However, other doctors take the contentious approach, calling in the collection thugs or filing lawsuits against whose whom they are sworn to assist.
If you are having financial hardship and are considering filling for bankruptcy, contact an experienced Las Vegas bankruptcy lawyer at Aaron & Paternoster by calling (702) 384-4111. We offer FREE confidential Las Vegas bankruptcy consultation. Protect your legal rights – contact Las Vegas bankruptcy attorney NOW.
Aaron & Paternoster
2300 W. Sahara Avenue, Suite 650
Las Vegas, NV 89102
(702) 384-4111
http://www.aaronpaternoster.com/bankruptcy/
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So you’re in debt. The creditors are howling at your door. Each visit from the mailman brings a new avalanche of bills, all marked “Overdue.” Each ring of the phone is another collection agency greedily demanding payment…now! You’re scared you’re going to lose your house, your car, the shirt off your back, and your firstborn child. Really, it isn’t your fault! So lift your head and stop apologizing. You are who you are. You’re a good person – divine, actually. Our nature is to grow, expand, and to seek more. Desire is natural; it makes life happen.
Manufacturers of consumer goods, their advertisers, and the media are all vested in making sure that you are bombarded on a daily basis with an all-you-can-eat buffet of consumer products, from shampoos to electronics to cars. Are you a bad person for taking a bite now and then? Of course not. These people are your enablers. They know that if you don’t buy enough stuff, they won’t get to buy enough stuff.
The problem is one of education. That starving man should be allowed to eat, but he needs someone to stay with him and help him to make prudent decisions, or he could well end up in the hospital. In the same way, if you are left to make financial decisions without the help of those who know what they’re doing, you might well end up in bankruptcy court.
Whether you end up in bankruptcy court or in the hospital, in can be a good thing. Nice people are there to help you get back on your feet. It can be a new beginning, a fresh start. Most people file bankruptcy only once, and it changes their lives forever in a positive way.
If you are having financial hardship and are considering filling for bankruptcy, contact an experienced Las Vegas bankruptcy lawyer at Aaron & Paternoster by calling (702) 384-4111. We offer FREE confidential Las Vegas bankruptcy consultation. Protect your legal rights – contact Las Vegas bankruptcy attorney NOW.
Aaron & Paternoster
2300 W. Sahara Avenue, Suite 650
Las Vegas, NV 89102
(702) 384-4111
http://www.aaronpaternoster.com/bankruptcy/
Las Vegas Nevada Bankruptcy Lawyer | Bankruptcy Attorney in Las Vegas Nevada | Las Vegas Bankruptcy Lawyer | Las Vegas NV Bankruptcy Attorney | Bankruptcy in Las Vegas | Las Vegas Nevada Bankruptcy Attorney | Bankruptcy Lawyer in Las Vegas | Las Vegas Bankruptcy | Las Vegas NV Bankruptcy Lawyer | Bankruptcy Lawyer in Las Vegas Nevada | Bankruptcy in Las Vegas NV | Bankruptcy Attorney in Las Vegas NV | Las Vegas Bankruptcy Attorney | Las Vegas NV Bankruptcy | Bankruptcy Attorney in Las Vegas
Article I, Section 8, of the United States Constitution authorizes Congress to enact “uniform Laws on the subject of Bankruptcies.” Under this grant of authority, Congress enacted the “Bankruptcy Code” in 1978. The Bankruptcy Code, which is codified as title 11 of the United States Code, has been amended several times since its enactment. It is the uniform federal law that governs all bankruptcy cases.
The procedural aspects of the bankruptcy process are governed by the Federal Rules of Bankruptcy Procedure (often called the “Bankruptcy Rules”) and local rules of each bankruptcy court. The Bankruptcy Rules contain a set of official forms for use in bankruptcy cases. The Bankruptcy Code and Bankruptcy Rules (and local rules) set forth the formal legal procedures for dealing with the debt problems of individuals and businesses.
There is a bankruptcy court for each judicial district in the country. Each state has one or more districts. There are 90 bankruptcy districts across the country. The bankruptcy courts generally have their own clerk’s offices.
The court official with decision-making power over federal bankruptcy cases is the United States bankruptcy judge, a judicial officer of the United States district court. The bankruptcy judge may decide any matter connected with a bankruptcy case, such as eligibility to file or whether a debtor should receive a discharge of debts. Much of the bankruptcy process is administrative, however, and is conducted away from the courthouse. In cases under chapters 7, 12, or 13, and sometimes in chapter 11 cases, this administrative process is carried out by a trustee who is appointed to oversee the case.
A debtor’s involvement with the bankruptcy judge is usually very limited. A typical chapter 7 debtor will not appear in court and will not see the bankruptcy judge unless an objection is raised in the case. A chapter 13 debtor may only have to appear before the bankruptcy judge at a plan confirmation hearing. Usually, the only formal proceeding at which a debtor must appear is the meeting of creditors, which is usually held at the offices of the U.S. trustee. This meeting is informally called a “341 meeting” because section 341 of the Bankruptcy Code requires that the debtor attend this meeting so that creditors can question the debtor about debts and property.
A fundamental goal of the federal bankruptcy laws enacted by Congress is to give debtors a financial “fresh start” from burdensome debts. The Supreme Court made this point about the purpose of the bankruptcy law in a 1934 decision:
It gives to the honest but unfortunate debtor…a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt.
For more information on your bankruptcy rights contact experienced Las Vegas Bankruptcy Attorney at Aaron & Paternoster today, call (702) 384-4111.
Aaron & Paternoster
2300 W. Sahara Avenue, Suite 650
Las Vegas, NV 89102
Telephone: (702) 384-4111
1. Concealment of assets
2. Serial bankruptcy cases
3. Failure to keep usual business records
4. Incomplete or missing books and records
5. Conduct well outside ordinary business or industry standards and practice
6. Unusual depletion of assets shortly before the bankruptcy filing
7. Recent departure of debtor’s officers, directors or general partners
8. Unanswered questions or incomplete information on debtor’s schedules and statement of financial affairs
9. Frequent amendments to schedules, statements of financial affairs and monthly operating reports
10. Inconsistencies among recent financial statements, tax returns and debtor’s schedules and statements of financial affairs
11. Absence of knowledgeable officers to testify at the Section 345 meeting
12. Inability to contact principals of debtor at debtor’s stated location
13. Frequent dealings in cash rather than recorded transactions
14. Sudden depletion of inventory post-petition without plausible explanation
15. Inflated salaries, payments of bonuses or cash withdrawals by officers, directors, shareholders or other insiders
16. Transfer of property to insiders, shareholders and relatives shortly before bankruptcy
17. Payoff of loans to directors, officers, shareholders, relatives or other insiders shortly before filing.
18. Transactions with non-debtor subsidiaries, parent companies or affiliated corporations owned by the same or related persons or entity
19. A history of prior litigation or post-petition litigation involving breech of contracts, fraud misrepresentations, etc
20. Complicated corporate structures and relationships.
21. Creditor confusion concerning corporate structure.
22. Fire, theft or loss prior to or after filing.
23. Failure to pay withholding and sales tax.
24. Startup of a similar business near the time of bankruptcy filing.
Bustouts
A bustout is conducted by a company that is set up to fail from the outset. The operator obtains merchandise from creditors, disposes of the goods (usually for cash) and does not pay suppliers. A bustout can also be conducted by buying an existing company and using that company’s good credit to obtain goods, without the intent to pay, and then disposing of the goods immediately for cash.
Examples Of Bustouts
Distributors of Consumer Products (including cigarettes, diapers, etc.): Company operates for a short period of time and establishes good credit ratings with large consumer goods manufacturers. Orders increase suddenly, and payments are not made. Lulling techniques are used to forestall creditors. Goods are sold to retailers at below cost for cash. Afterwards, a bankruptcy petition is filed. Schedules filed by the debtor after the bankruptcy filing report trade debt owed to consumer products manufacturers with inventory unusually low compared to the date the debt was incurred.
Retail Bustouts: The merchant rents retail space and does not pay rent or suppliers.He files bankruptcy to stop eviction and to gain additional time to run the illegal operation. Oftentimes, retail stores are part of the distributor bustouts because they provide outlets for the consumable goods. (Examples include retail jewelry stores, oriental rug stores and discount stores.)
Tax Bustouts: An individual operates a series of businesses in the same industryand never pays taxes. He usually files Chapter 11 bankruptcy for the company just prior to or at the time the IRS files a lien on the debtor’s assets. He operates the business for a brief period of time while in Chapter 11 before the case is onverted or dismissed. He starts a new business with the debtor’s assets. (Examples include restaurants and employee leasing services.)
Credit Card Bustouts: Individuals contemplating bankruptcy run up large consumer credit card debt and then file bankruptcy. The purchases and cash advances occur within a short period of time. Frequently, the same individual files bankruptcy several times, using false social security numbers and aliases. Or the fraudulent perpetrator assumes another person’s name or social security number. False statements are usually made on credit applications, and the assets acquired from the fraud are concealed when the bankruptcy is filed.
Travel Agency Bustouts: Travel agency opens and secures authorization plates from the airline cooperative agency to write tickets. After paying the first few bills, a tremendous number of tickets, often overseas tickets, are written and not paid for. These tickets are sold for cash in bargain sales. Travel agency may also report the authorization plates stolen and then continue the scheme. Authorization plates and blank ticket stocks are often missing when the trustee or airline tries to recover.
The bankruptcy system is designed to give an individual or a company a chance to reorganize their affairs, or if reorganization is not possible, to equitably distribute the non-exempt assets of the debtor among the creditors. This is often referred to as “a fresh start”. The amount of money a creditor will receive in a case will range from nothing in many cases to 100 percent in a few cases. In every case there will be significant delays from the time a bankruptcy petition is filed until the case is closed and all creditors receive final payment.
The bankruptcy system is based on the theory that a debtor will make full disclosure of all assets and liabilities so that the final disposition is in accordance with the requirements of the law. Unfortunately, at times both debtors and creditors try to obtain more than they are entitled to under the Bankruptcy Code. There are a number of criminal statutes that prohibit this type conduct.
Although concealing assets or making false statements in a bankruptcy proceeding make up the majority of bankruptcy frauds, there are a number of fraud schemes that are more complicated or are primarily designed for reasons other than maximizing the retention of assets in bankruptcy. Such schemes often use the automatic stay provided by the Bankruptcy Code to conceal an earlier crime, maximize profit from an ongoing fraud scheme or buy time while the perpetrator finds a way to avoid victims or leave town.
A comprehensive list of fraud schemes will be presented in two articles. Within each fraud category examples of schemes will be presented, with red flags to look for, and courses of action to be pursued if a scheme is encountered. Again, keep in mind that this is a list of common warning signs in a fraud scheme. Many of these factors may be present in situations where there is no fraud, so do not jump to conclusions simply based on these warning signs.
Identifying Bankruptcy Fraud–Part 1 covers common fraud schemes involving bankruptcies and debtor fraud. Identifying Bankruptcy Fraud–Part 2 will focus on creditor fraud and professional fraud. Included in both articles is a list of warning signs of bankruptcy fraud.
The Administrative Office of the U.S. Courts compiles statistics on bankruptcy filings for each quarter ending December, March, June and September. The fiscal year for the federal Judiciary ends September 30. The calendar year ends December 31. Quarterly and 12-month statistics are available approximately 2 months after the close of a quarter.
Chapter 11 and Chapter 13 bankruptcy filing for the twelve month period ending September 20, 2008:
Chapter 11 and Chapter 13 bankruptcy filing for the twelve month period ending September 20, 2008:
Chapter 11 California Bankruptcy Filing: 83,975
Chapter 13 California Bankruptcy Filing: 27,180
Las Vegas Bankruptcy Basics – Part 1
IntroductionBankruptcy is a legal process that provides relief to many individuals who can no longer pay all of their debts. | Watch Video
Las Vegas Bankruptcy Basics – Part 2
Types of BankruptcyThere are three main types of bankruptcy cases for individuals, the most common of which are chapter 7 and chapter 13. | Watch Video
Las Vegas Bankruptcy Basics – Part 3
Limits of BankruptcySome debts cannot be discharged in a bankruptcy. | Watch Video
Las Vegas Bankruptcy Basics – Part 4
Filing for BankruptcyIn order to file for bankruptcy, an individual must take a credit counseling course and accurately complete and file a number of documents. | Watch Video
Las Vegas Bankruptcy Basics – Part 5
Creditors’ MeetingEvery debtor is required to appear at a creditors’ meeting conducted by a trustee who asks the debtor questions about the debtor’s financial condition and gives creditors the opportunity to do the same. | Watch Video
Las Vegas Bankruptcy Basics – Part 6
Bankruptcy CrimeA debtor must be honest and accurate in dealing with the court or face serious consequences, including being charged with a bankruptcy crime. | Watch Video
Las Vegas Bankruptcy Basics – Part 7
Court HearingsIn some cases, a debtor may be required to appear at hearings before a bankruptcy judge. | Watch Video
Las Vegas Bankruptcy Basics – Part 8
The DischargeDebtors are usually able to discharge most or all of their debts. Once a debt is discharged, a creditor may not attempt to collect it from the debtor. | Watch Video
Las Vegas Bankruptcy Basics – Part 9
Legal AssistanceDebtors are strongly encouraged to find competent legal counsel. Even if you cannot afford to pay an attorney, you may be able to qualify for free or discounted legal services. | Watch Video
Las Vegas bankruptcy law is designed to free people from economic bondage and give them a fresh start. Las Vegas bankruptcy law provides for the development of a plan that allows a debtor, who is unable to pay his creditors, to resolve his debts through the division of his assets among his creditors.
A Las Vegas bankruptcy attorney at Aaron & Paternoster will guide you through the complicated legal maze to file for Bankruptcy in Nevada under the U.S. Bankruptcy code. We are a debt relief agency that stops Tax Liens, Home Foreclosures, Creditor Harassment, Auto Repossession, Wage Garnishment, and Medical Bills through the use of Bankruptcy. Bankruptcy is a tool that can stop harassing phone calls and can assist in getting you out of debt and back on track.Our Las Vegas bankruptcy attorneys are experts at handling Chapter 7 Bankruptcy and Chapter 13 Bankruptcy filings. Contact us using for the form to the right and speak with a Las Vegas bankruptcy lawyer today.
If you are having financial hardship and are considering filling for bankruptcy, contact an experienced Law Vegas Bankruptcy lawyer at Aaron & Paternoster by calling (702) 384-4111. We offer FREE confidential bankruptcy consultation, so call today.