In an article entitled “Bankruptcy Reform a joke, but nobody’s laughing,” Houston Chronicle business columnist Loren Steffy quoted J. Thomas Black in his August 20, 2006 column about bankruptcy. “It’s more onerous on the people that the law ought to be there to help, the poorest people, the least educated people, says Thomas Black, a local attorney and state chairman for the National Association of Consumer Bankruptcy Attorneys.” While the new bankruptcy reform law does require more paperwork and higher fees, debt relief under the bankruptcy laws is still available to those who need it. The so-called “means test” that is supposed to guide more people into repayment plans under Chapter 13, rarely has that effect. Even if a prospective bankruptcy debtor has higher than median income for their state, secured and priority debts, as well as a plethora of other possible deductions from income are available. And that’s even without planning. Take my word for it, if you need and want bankruptcy relief, you’re in good faith and the totality of your circumstances warrant it, the means test will not be an obstacle that can’t be overcome. ■

I have had more trouble with myself than with any other person I have ever met.

 

                Dwight L. Moody (1837-1899)

                              Evangelist

Reporter Dave Fehling and Channel 11 KHOU-TV featured J. Thomas Black and a brave couple of his clients that are in bankruptcy in a story entitled “Sick and Broke With Insurance,” on the August 30 newscast. The news story explained that many people are in bankruptcy because of illness or injury, in some cases even if they have health insurance. Mr. Black was quoted as saying: “My clients don’t need me to tell them life’s not fair. But it’s a darn shame when they  (Congress) make it more expensive and more difficult and increase the obstacles (to filing bankruptcy) when they’re down and out, particularly when they’re sick,” he said.

Minimize Your Risk of Identity Theft. Identity Theft is a big problem and growing. The ID thieves are very resourceful. They can steal your mail, “dive in your dumpster,” or “phish” for your personal ID information online. Things to do to minimize your risk: (1) check your credit reports regularly. They are now free once per year, and you can order them online. Go to my web site www.jthomasblack.com and click on “Links” and “Credit Reporting and Improving Your Credit.” You’ll see the link to order your free reports. (2) Use random passwords rather than birthdays or other obvious passwords, and change them often; (3) Make sure personal information at your home is secure from cleaning people or repair workers; (4) don’t give out personal information over the phone or internet; “phishing” emails now often copy the look of your bank or brokerage account website, in attempts to defraud you; (5) Remove your mail asap from your mailbox, or use a post office box for personal mail like me; (6) shred credit card offers and other papers with personal information on it, before throwing it away; (7) opt out of pre-screened credit card offers. Again, you can go to my web site www.jthomasblack.com  and click “Links” and “Credit Reporting and Improving Your Credit.” There is a link for the optout site. It doesn’t stop all of the offers but it helps. (8) keep your social security card in a safe place, but not on your person; (9) update your virus protection software regularly, use a secure browser and firewall program, and don’t download files or click on hyperlinks coming from strangers; and finally (10) identity already stolen? Go to my site for a link to the official FTC site on identity theft, and what to do to fix it.

By the way, if your identity is stolen, you may be entitled to money damages from the parties that were responsible for your information being misused, which may include the creditor or credit reporting agency. Call my office at 713-772-8037 for a free consultation with me to discuss the facts and bring all the relevant documents. ■

SAVE $$$$$

Light Bill Too High? You have the “Power to Choose.” I don’t know about you, but my electricity bills have recently been, well, shocking. If you haven’t “shopped” for electricity lately, you may want to do it. Go to my web site under Links, and click on “Consumer Information.” There is a link to a site that allows you to enter your zip code, and then be provided with a list of all of the electricity providers in your area, and how much they charge. I did it last year at this time, and I’ve saved 12% off my light bill, and I’m earning frequent flyer miles to boot! Review the offers carefully before you switch, some are dependent on meeting certain credit criteria, or signing a contract.  

J. Thomas Black acquired advanced legal training in August at an intensive four day training session in western North Carolina with the famous (at least among bankruptcy lawyers) O. Max Gardner III at his Bankruptcy Boot Camp. Max teaches the Bankruptcy Litigation Model, which is a method of aggressively representing consumer bankruptcy clients and in appropriate cases, seeking money damages and other relief for them against creditors and debt collectors who violate consumer protection laws. In the past year, Mr. Black has brought several of these cases and has recovered several thousand dollars for each of the consumers involved. Mr. Black now has the added benefit of Max’s experience, and his legal tools and techniques including thousands of pages of detailed forms and methods of practice. Thanks Max! ■

Do you have money or credit problems? Are bill collectors dunning you for money that you do not owe? Are they threatening to do something to you that they are not allowed to by law? Is your mortgage company charging you fees and costs that are not due? Does your credit report have inaccurate items that the credit bureau refuses to fix? Are you just overwhelmed with debt? Call my office for your free consultation with me. Call 713-772-8037 and press 0 during working hours, and make an appointment to meet with me. Bring all the documents about your claim or situation.

Education is when you read the fine print. Experience is what you get if you don’t.        

     Pete Seeger

                        Singer and composer

I.R.S. News – New Offer in Compromise Rules in Effect. The Internal Revenue Service has new rules if you cannot pay your taxes in full and must make an “Offer in Compromise.” As of July 16, if you are making a lump sum Offer, you must pay 20% of the amount of your offer when you file it. If the offer is rejected, you get credit for the payment, but it is not returned as it would have been under the old rules. The problem with that is, many people borrow money from relatives to settle with the I.R.S., so that this will discourage offers to settle. There is also now a $150 filing fee to file an Offer. If you don’t have a lump sum of money to offer the I.R.S. to settle up, a taxpayer can file a periodic payment offer, to pay an offer off in installments. Please note: When you see these ads on TV promising that you can settle with the I.R.S. for $20, or for “pennies on the dollar,” most of them, from what my clients tell me, are scams. I have settled I.R.S. debts for clients for pennies on the dollar, but the facts must be right. And, you must have a great deal of patience. It can take many months for the I.R.S. to consider your offer; and they may reject it. If they reject it, you and your attorney or CPA may have to appeal the rejection if you hope to have it approved. More information about dealing with I.R.S. tax problems is available on my website at www.jthomasblack.com, click on “legal information” and “I.R.S. Collection Defense,” or call my 24-hour information line at 713-772-5730. ■

Why does a slight tax increase cost you $200 and a substantial tax cut save you thirty cents?

                                    - Peg Bracken

ARE YOU IN CHAPTER 13 NOW? You can check on the status of your Trustee payments, how much you still owe on your case, etc., by going to your Trustee’s web site, click on “Chapter 13 Inquiry” and enter the login “debtor” and password “debtor.” Don’t know your Trustee web site address? Go to www.jthomasblack.com and click on “links” and “Bankruptcy and debt relief.” The Trustee web sites are all listed. Remember, you must have Court permission to (1) buy or sell a house; or (2) refinance. Your Trustee office can provide you a form to apply for permission to finance a vehicle. Call the office or email me at tom@jthomasblack.com if you have questions.

J. Thomas Black was licensed as an attorney in Texas by the Texas Supreme Court in May, 1982. Mr. Black is Board Certified in Consumer Bankruptcy law by the Texas Board of Legal Specialization. Mr. Black is also a Certified Financial Planner™ professional.