Bankruptcy is controversial because it is a friction point between two important public policy clashes.  On one hand all of us want to pay off our creditors and honor our obligations, yet life happens and sometimes we bite off more than we can chew.  We have death, divorce, job loss, illness and poor choices.  What are we going to do, kill the debtor, cut off his hand, sell him into slavery, put him in jail??

Bankruptcy is a balancing point.  Bankruptcy decides who gets paid first if their is money available.  Sometimes when there is no money the debt gets wiped out for the honest but unfortunate debtor.  And it is ordained by GOD. 

God once created government and God was the head of the government.  He set up some financial rules that are quite different from the way we do things today.  For example it was illegal for one Jew to chard another Jew interest.  Leviticus 25:36-37, Deuteronomy 24:19.  Long term debt was illegal Deuteronomy 15:1-11.  In fact Leviticus Chapter 25 abd restated in Deuteronomy Chapter 15 was a prototype of Bankruptcy Law.  Between Jews first there would be no interest accruing and the borrower would only pay on the debt for up to 7 years.  Once every 7 years the debt is canceled.  If you got in debt three years after the cancellation you would have to repay for 4 years and so forth.  the point to understand is there were many ways one could become in debt.  God himself created a law for debt cancelation.  This is a series looking at God and bankruptcy.  More next week…

Jobs4TN Online is a virtual recruiter, automatically notifying job seekers when positons that they may be qualified for come available.  It in turn notifys employers when candidates who fit their needs register.

Gov. Bill Haslam committed to developing a new jobs database during his gubernatioral campaign.  The good news is that unemployment rate for tennessee is at its lowest since Novermber 2008 and has fallen below the national rate, but is still too high according to Gov. Haslam.

The system is much more than a traditional job site.  The jobs listed in Tennessee has gone from 30,000 to 85,000.  If an individual doesn’t have access or isn’t comfortable with a computor then referrals can be provided in person at the center once they have registered for services.

2. Relief-We can help creditors off your back TODAY!!!!

3. Mastery- We only practice bankrutpcy and keep up to date on the law

4. Compassion- Our experienced atorneys have your best interests at

     heart.

5. Experience- We’ve already filed thousands of successful cases.

6. Payments- No cash on hand? No problem. We offer easy payment plans.

7. Aggressive- We can even sue creditors for harassment, so you get paid.

8. Perfection- Each staff member iws specialized in an area of the process.

9. Empathy- We understand. Each staff member is here to help.

10. Freedom- We can help you become debt free almost immediately.

The issue itself is hardly new.  In Tennessee Mayer and Newton are following the legislation.  In Tennessee, federal guidelines generally do not allow for student loans to be discharged in bankruptcy.  The ongoing efforts of Senator Dick Durbin to change the situation is something the attorneys at Mayer and Newton heartily applaud and support.

The Seattle Times wonders wheter the problem is shaping up to become America’s next economic crisis.  Many students come to us seeking help with student loan debt and sometimes in worst case with payday loan debt. 

Having served as a debt consolidation lawyer for more than 50 years we are glad to see the problem finally getting  the attention it deserves.  What has been triggering all the fuss is that on July 1,2012 the interest rate on federal student loans is scheduled to double.  Rates will go from 3.4% to 6.8%  a big bad problem will become even worse.

Unlike other forms of consumer debt, student loan debt is growing and those defaulting is growing as well.

Republicans are in favor of preventing the increase in interest rates on student loans but they don’t like the way the Democrats would make up the 6 billion dollar measure.  Boosting Social Security and Medicare payroll taxes on high earning stockholders of some privately owned corporations.

Republicans want to vote on their own version of heading off the interest rate increase by eliminating a preventative health fund created by Obama in this 2010 health care overhaul.  The Democrats won’t pass it and if by a miracle it did pass the White House would veto.

Tuesdays vote was 52-45 in favor of starting debate on the Democratic legislation.  Harry Reid was the only Democratic to defect his party line. Both parties know they will have to reach a compromise but both sides are using as an election tool.

Mitch McConnel the senate Minority Leader from Kentucky stated that Dems were using the vote as a way to drive a wedge between Republicans and a constituency that they’re looking to court ahead of the November elections.  He feels that the Senate is no longer a place where problems are resolved but instead a campaign forum for the Democrats. 

Democrats feel like the Republicans are only protecting wealthy tax dodgers and that is what they are, instead of helping students achieve higher education dreams.

Both sides know that a bipartisan agreement on how to finance the legislation was needed for the effort to move forward, buty dared the other to propose a plan.

This amount for qualifying homeowners could amount to a monthly savings of up to 35 percent on mortage payments.  This effort is the result of a 25 billion dollar settlement agreement earlier this year with 49 states attorneys general.  Bank of America was investigated for abuses over the handling of foreclosures.

“To the extent principal reduction and other modification tools help us turn mortgages headed for foreclosure into long term performing loans, it will be positive for homeowners, mortage investors and communities,” Ron Sturzenegger, a leagcy asset servicing exec said in a statement.  A win win for everyone.

Bank of America will be contacting more than 200,000 homeowners who could be candidates for this plan.  The homeowners must meet certain criteria, including having a loan woned or serviced by Bank of America, owning more on their mortage than the property is worth, and being at least 60 days behind.

The bank said it had started making such offers in March to a smaller group of homeowners, those who were already seeking home mortgage modification.

See below for the video and whole story.  It is VERY interesting.

http://abcnews.go.com/US/va-woman-fights-collect-10-million-debt-collectors/story?id=16205697

Knowledge is Key

Credit counseling courses are open to anyone looking for ways to better manage their finances, or simpl learn about financial matters.  From budgeting  and saving, to investments, or debt relief, credit counseling companies can provide a wide array of infromation.  These courses are available online or in person and typically last about 90 minutes.  A small amount of time  for a lifetime of financial knowledge.

Finding the right credit counselor isn’t too hard to do.  There are some companies who many not be as qualified to provide the services as others.  It is important to find a reputable company that meets the standards of the US Department of Trustees, especially if the course is required as part of a bankruptcy.  A legitimate company will operate as a non profit organization and charge a minimal fee for services.

Mayer Newton strongly urges people to take this class to be informed and have some financial knowledge that is invaluable.

Fox News’ investigation into foreclosures in the California and an explanation of what home owners facing foreclosure must be aware of.