Recent Blog Posts in June 2010

According to 11 U.S.C. 362, when a person files a bankruptcy case under any chapter of the Bankruptcy Code, it will trigger an injunction (stay) against the person's creditors.  This means that the creditors will not be allowed to continue any action against the person in debt or the person's property.

Essentially, once the automatic stay is in place, a certain amount of protection is extended to the person that is in debt.  Additionally, all of the debtor's assets and creditors have a chance to get on the same page so issues can be resolved by the bankruptcy court.

After an automatic stay has been issued in a bankruptcy case, whether chapter 7 or chapter 13, creditors will not be allowed to:

§  begin or continue lawsuits

§  make collection calls

§  conduct repossessions

§  commence foreclosure proceedings

§  garnish wages or issue levies

Automatic stays remain in effect until:  a judge lifts the stay per a creditor's request, the debtor's debts are discharged or the item of property is no longer property of the estate.

If you have additional questions about bankruptcy or automatic stays, contact the Stone Law Firm and schedule a consultation with a Salt Lake City bankruptcy attorney.

In Utah, it is reported that former House Majority Leader Kevin Garn was listed as a creditor in an individual's bankruptcy petition.  The woman filing for chapter 7 asserts that she was paid by Garn to keep silent about a nude hot-tubbing incident that occurred twenty years ago.  At the time of the incident, the woman was 15 years old.

In court documents filed last week Friday, Cheryl Ann Maher stated that she owed Garn $153,300 because she defaulted on a contract that was established in 2002.   She had listed Garn as a creditor as a precaution to prevent the former Utah House Majority Leader from demanding the repayment of "hush money" that stemmed from the hot tub incident in 1985.

In a phone interview, Maher said, "I filed ... because I don't have the money to repay him."  Even though Garn has not asked for repayment, she said that she is covering herself.  According to Maher, Garn agreed to pay her a lump sum o $150,000 in 2002 and $3,300 between the years of 1986 and 2002.   At first, Maher said Garn offered her $20,000, but her sister and ex husband persuaded the politician to pay her more.

When asked about the "hush money" incident and if he would challenge the $153,000 as a debt, Garn allegedly launched a profanity laced tirade. 

If you are planning to file for bankruptcy in Salt Lake City, know that the Stone Law Firm is here to help you.  Contact us to speak with a Salt Lake City bankruptcy attorney today!

When people are about to file for consumer bankruptcy, they have many concerns.  Often times, these concerns can be addressed and dealt with when people meet with a Salt Lake City bankruptcy lawyer.  Below, the Stone Law Firm lists common concerns people have when they are about to file for chapter 7 or chapter 13:

§  Not getting credit in the future.  While people may not be able to get new lines of credit immediately after filing for bankruptcy, they can obtain credit cards in the future if they act responsibly.  More and more lenders are allowing people who have filed for bankruptcy to obtain credit.

§  Losing homes.   Anytime people are afraid that they will lose their homes or other valuable possessions, they should consult with a bankruptcy lawyer.  In some cases, people are able to keep their homes after filing for consumer bankruptcy.  Of course, this varies case-to-case.

§  Embarrassment.  When people need to file for bankruptcy, they can feel ashamed or embarrassed.  However, the reality is that many people throughout the country have had to file for bankruptcy because they could not contend with financial hardships.  For this reason, people should never feel embarrassed.

If you would like to discuss your bankruptcy concerns, do not hesitate to contact the bankruptcy attorneys at the Stone Law Firm.

Many people wonder what happens during credit counseling and have questions about the credit counseling process.  In this post, we aim to provide people with the information they need to understand credit counseling before they file for Utah bankruptcy.

As mentioned in our prior post, "Credit Counseling Pre-requisite to Bankruptcy", people must fulfill the credit counseling requirement 180 days prior to filing for consumer bankruptcy.  When people go through credit counseling, they will meet one-on-one with a specialist or professional that is approved of by the U.S. Trustee Office.  Usually, the meeting will last for 60 to 90 minutes and will cost around $50.

People who go through credit counseling will have their personal finances evaluated and receive additional information related to the bankruptcy process.  After people have completed credit counseling, they will receive a certificate of completion which is automatically generated by the U.S. Trustee Office. 

If you have questions about credit counseling or bankruptcy, now is the time to contact the Stone Law Firm and speak with a Salt Lake City bankruptcy lawyer.

In the United States, people who are planning to file for consumer bankruptcy need to complete credit counseling.  This holds true whether they are filing for chapter 7 or chapter 13 bankruptcy. 

In 2005, the laws surrounding bankruptcy in the United States changed a great deal.   At that time, credit counseling became a mandatory pre-requisite.  According to the laws that were introduced, people who planned to file for bankruptcy must complete credit counseling 180 days before submitting their bankruptcy petitions.   Additionally, after bankruptcy paperwork is completed and submitted to the U.S. Bankruptcy Court, individuals must go through a debtor education program. 

Unfortunately, if people do not meet these requirements, they will not be eligible for consumer bankruptcy.  Therefore, it is extremely important that people fulfill these requirements so they can expedite the bankruptcy process. 

At the Stone Law Firm, we know that people can become confused by the steps they must take when filing for chapter 7 or chapter 13.  For this reason, we encourage people to contact our law office and meet with a Salt Lake City bankruptcy attorney from our firm.

Be sure to read our post "Credit Counseling Explained" to learn more.

If you watch the Real Housewives f New Jersey, you know who Teresa Giudice is and that she likes to lead an extravagant life.  However, this week, multiple news sources revealed that the housewife and her husband Joe filed for chapter 7 bankruptcy.  Throughout the first season of the show, Teresa would regularly spend over $2,000 on clothes for her daughter and furnished a $1.7 million home.

In October, it is reported that Joe filed a chapter 7 petition.  Now, Teresa is addressing the bankruptcy.  In an interview with People Magazine, she said that it is a personal matter.  She also said that she realizes her private live will always be subjected to "scrutiny and distortion".  She is, after all, a reality TV star.  Teresa commented that bankruptcy will serve as a "fresh start".

If you are thinking about filing for chapter 7 bankruptcy in Salt Lake City, contact the Stone Law Firm.   A Salt Lake City bankruptcy lawyer from our team would welcome the opportunity to speak with you.

One common issue that people have to deal with when they have credit card debt is creditor harassment.  While not all people will be harassed by their creditors or collection agencies when they owe money, many people are and need immediate help.  One of the best ways to put an end to creditor harassment, especially when you are on the verge of filing for chapter 7 or chapter 13, is to consult with a bankruptcy attorney. 

You should seek help whenever:

-          A creditor keeps calling persistently, even when asked to stop.

-          A creditor continually calls you at your place of employment.

-          A creditor issues threats or abusive language.

-          A creditor calls you names or issues verbal insults.

-          A creditor tries to call one of your family members or friends to discuss your debt.

-          A creditor creates false legal documents to get you to pay your debt.

If you are thinking about filing for bankruptcy in Salt Lake City and are dealing with creditor harassment, contact the Stone Law Firm to speak with a Salt Lake City bankruptcy attorney.

Welcome to Part Two of Having a Life After Bankruptcy.  If you missed, be sure to check out Having a Life After Bankruptcy Part One.  After you have filed for bankruptcy, here are more rules to follow:

Number Four:  try to maintain continual employment.  This means keeping a steady job so that you have reliable income each month.

Number Five:  take control of your debt by meeting with a financial planner.  Speaking with a financial professional will provide you with strategies to repay your debt and also help you create a do-able budget.

Number Six:  review your credit report.  Sometimes, you will find that information is incorrect and when this happens, you should also file a dispute with the credit bureau.  False information can adversely impact your credit rating, which is something you must avoid after filing for bankruptcy.

By following these basic rules, you will regain control of your finances and life in no time.

If you are thinking about filing for bankruptcy in Salt Lake City, contact the Stone Law Firm to speak with a Salt Lake City bankruptcy attorney.

One of the many things that people do not fully understand before they file for Chapter 7 or Chapter 13 is that there really is life after bankruptcy.  In fact, Utah bankruptcy can present people with numerous advantages while giving them a chance to start over with a clean slate.  The key to having a life after bankruptcy is following a few basic rules:

Number One:  pay your bills on time, every month, without fail.  Doing this will help you rebuild your credit rating.

Number Two:  try to live within your means.  This means that you will have to make a firm commitment to avoid overspending and making purchases that constrain your finances.

Number Three:  make a tailored budget that is feasible and stick to it.  It will serve as your financial plan on a month-to-month basis, help you stay on track with your bills, reduce debt and regain financial control.

Be sure to read our next entry, Having a Life After Bankruptcy Part Two to learn more.  If you are thinking about filing for bankruptcy in Salt Lake City, contact the Stone Law Firm to speak with a Salt Lake City bankruptcy attorney.