Archive | 2013

Winning Ways to Distribute Your Tax Refund

If you’re receiving a tax refund for tax year 2012, or any tax year, congratulations! The government is refunding the no interest loan that you made in that tax year. Your refund may be small, in which case you deserve congratulations again for not making too large a loan to Uncle Sam, or it may be larger, in which case it may make sense to review your withholding options.

Those topics are for another day. Let’s take the case of the typical taxpayer.

In 2012, for the 2011 tax year, taxpayers received a tax refund that averaged $2,700. That’s more than a month’s worth of income for two thirds of US taxpayers.
So, what would you do if you received an extra month’s pay?
I agree with most personal finance advisors who recommend that you pay yourself first. The one thing that you can count on is the need to save for events in life that you didn’t count on. You may not have planned for an event that involves an unexpected expense, but if you have a savings plan, you have better options than someone who has no plan.
OK, so how much of the refund should I save? Let’s pick $1,000.
Here are some ideas—winning ways—to make that payment to yourself.
1.       Make savings a habit. Start a Roth IRA. If you don’t qualify yourself, consider opening one for a family member. If you or your family member had taxable income for the year (even if no tax was due or paid), you can usually contribute up to $5,000.00 into a Roth IRA. The Tax Code provides that this contribution will grow tax-free year after year. What’s more, it can be withdrawn penalty free and tax-free after the person who owns the Roth IRA reaches age 59 1/2. Even if financial troubles occur in the future, the money in the Roth IRA is virtually unreachable by creditors, even if you or your loved one has to file for bankruptcy.
2.       Create a personal financial emergency fund. Set up a separate savings account for this purpose at a bank or credit union. Financial planners recommend that this fund cover three to six months of your typical living expenses. Most employers’ payroll systems can help you set up a paycheck allotment or auto-deposit of $100 monthly into your emergency fund. In just two years, your fund will grow to nearly $5,000.00.
3.       Get a professional financial review. If you feel that you might have enough income for some modest retirement counseling, then get a professional review of your finances from a fee-only non-commissioned financial advisor. You should expect to pay less than $1,000.00 for your personal review, leaving the balance to allocate as your advisor recommends. How is this different than calling Edward Jones or Charles Schwab? There is a big difference: your local stockbroker is a salesperson, not a truly neutral financial advisor. Contact the National Association of Personal Financial Advisors for a local referral.
4.       Invest in your home. Whether you concentrate on a specific room in your home—the kitchen, a bathroom, the family room—or spread your efforts inside and out, you can make noticeable improvements by doing it yourself. Not only will you enjoy living in your upgraded home, you may find that the home improvements you made improved the resale value of your home should you need to sell your home someday.
5.       Invest in yourself. Some people may not like it, but those who “dress for success” usually do succeed more than someone with the same skills and personality who don’t pay attention to their appearance at work and socially. The book at the link was originally published in 1975. The advice is just as good today as it was then. Don’t overspend though. Limit yourself to $500, and follow the guidelines in the Dress for Success book or other business-friendly sources. You can always upgrade your wardrobe again after you get that big raise because you showed your bosses that you take your work, and your appearance at work, seriously.
If you feel your wardrobe is covered, there are other good ways to invest in yourself—your skills, your mind and body, even your creativity.
6.       Extend the life of your car. The tips at the link helped one car owner keep his machine running for 3 million miles. Keeping your car running well, and avoiding major expenses—like purchasing a replacement car—is a great way to save. If you already do a great job of maintaining your vehicle in tip top condition, you may want to treat yourself to a great detailing job for the exterior and interior. Tacoma’s own Griot’s Garage has great tips and videos that will help.
7.       Hire a lawyer. There are events in life that require professional advice and services. You’ve seen several of them in the 6 winning ways I covered above. A lawyer can help you author key documents that establish plans that cover events in life that many of us don’t want to think about, but must be addressed sooner or later. Starting with a will to simply cover the division of your assets, nominations of a guardian to care for minor children, care for pets upon your passing, “health care directives” to instruct health care providers about how you want your care handled under certain circumstances, and finally, directions for the division of “non-probate” assets such as life insurance policies, IRAs and 401k’s and “probate assets” such as homes and realty investments in your will. Your lawyer can help you ensure that your wishes are clearly established in a will that will help your loved ones avoid surprises and unnecessary stress that your family after your passing. If you divorce your spouse someday, the same lawyer who helped you establish your will is in a great position to help you to address any changes to your beneficiary designations as a result of your divorce.
You or someone you know may want to turn over a new leaf, and implement one or more of these ideas. Great! However, if indebtedness is too great, you may need to take steps to deal with that past debt before you can return to positive net financial worth. If you can’t see a way clear to paying off your debts in full within two years, filing a bankruptcy case can often quickly restore your creditworthiness and put you back on the path towards a brighter financial future. Call us at (253) 383-1001, or visit our site:washingtonbankruptcy.com/contact-us, to schedule a free personal consultation with me so that I can explain how and why. Don’t wait; stop procrastinating! Act now to regain your peace of mind right away.

Who is Robert Shiller and why are his recent comments on housing price recovery so important? What does he have to say?

Robert Shiller says that values in the housing market are not poised for an overall recovery, notwithstanding spring-summer 2012 housing price increases in a some cities. He says that today’s low interest rates alone are not enough to spur a housing price recovery.

Why should we care what Robert Shiller says?

Well, this guy is big – really big. In fact, he “invented” the perhaps most widely watched economic indicator of housing market price movement in the United States.

He is “Shiller” of the Standard & Poor’s Case-Shiller 20-City Housing Price Index. So, when Robert Shiller talks about housing price movements, people listen, and listen very closely.

Mr. Shiller notes that there was in fact a 9 percent increase in housing prices over the time period March – September 2012 in his eponymous Case-Shiller housing price index. Some optimistic pundits have said that this good news shows near certain promise that we are “turning the corner” in the housing price slump.

Strongly disagreeing with these optimists, Mr. Shiller says in so many words that this 2012 Spring-Summer uptick doesn’t mean a thing in terms of predicting a long term positive trend of housing price recovery.

Mr. Shiller is more than pleased to splash the optimists with a few buckets of cold water reality.

Mr. Shiller offers well reasoned responses to the optimism of others. Mr. Shiller doubts that housing price optimism is well placed. Let’s examine three expressions of optimism and compare Mr. Shiller’s three down-to-earth responses:

1. Optimism: Concurrent with the housing price increase nemployment rates dropped from 8.2% to 7.8% March – September 2012
Mr. Shiller’s cautious response: No big deal; unemployment rate declines simply continued a trend inexistence since 2009 and unemployment tends to decline in the summer season anyway.
2. Optimism: Housing start permit applications have increased and the National Association of Homebuilders/Wells Fargo Index of traffic of prospective home buyers increased over the summer and fall of 2012.
Mr. Shiller’s pessimistic response: No big deal; the more important spring 2012 study/survey by Wellesley College’s Karl Case and McGraw-Hill Contruction’s Anne Thompson contradicts that there was no increased optimism or enthusiasm expressed by prospective homebuyers.
3. Optimism: Foreclosure activity decreased in 2012, thus presumably making less inventory available on the market.
Mr. Shiller’s discounting response: No big deal; this just continues a longer term trend in existence as reported by Realty Trac and thus should not by itself be seen as the kickoff of any long term trend of housing price increases.

Finally, Mr. Shiller presents five reasoned and discouraging response to optimism concerning housing price recovery:

1. Mr. Shiller says that the 86 percent increase in housing prices 1997 through 2006 was an historical anomaly, unlikely to be repeated by now wary investors. Such anomalies have eventually reverted to keep the long term growth in housing prices pegged to and indexed to an inflation adjusted consistent value says Mr. Shiller. The recent “housing price boom” was almost completely reversed by 2012, putting housing prices back on an inflation adjusted consistent value curve at just a point or two above ongoing inflation rates.
2. Mr. Shiller notes that there has only been one other major national housing price boom in the last century – 1942 to 1953 in which housing prices in real terms rose 68% nationally. It took 44 years (to 1997) for the next “boom” to kick in – and on that metric, the next boom is going to kick in at about the year 2050. Care to wait around for it? (Note: I, James MaGee will be 92 years of age when it starts to kick in….)
3. Mr. Shiller notes that home ownership is actually in decline, at 69% in the third quarter of 2006, down to 65.5% in the third quarter 2012.
4. Mr. Shiller notes that the wild lending that fueled the boom is more reigned in now by (a) new ability-to-pay standards announced by mortgage lenders and (b) the oversight of the new federal Consumer Financial Protection Bureau.
5. Finally, the Zillow-PulsenoicsHome Price Expectation Survey (involving the input of 100 housing price forecasters) was predicting very modest inflation adjusted housing price growth increases of only 1 to 2 percent per year over the next half-decade.

Mr. Shiller’s final word: Don’t expect an increase in your home price to bail you out of any problematic financial situation, and don’t do anything dramatic or difficult such as over-reaching financially to buy an expensive home or buy a home for short term use if you expect to have to move fairly soon, as there is too much uncertainty to justify any aggressive speculative moves right now.

Much thanks to the New York Times, Sunday, January 27, 2013 edition, page 1, Sunday Business Section: Economic View, by Robert J. Shiller; Titled, “A New Housing Boom? Don’t Count on It.”

World’s largest law firm files for bankruptcy

3 Harvard law school graduates founded the firm in 1909, and in 2007 it came to be known as Dewey and LeBoeuf. On February 27, 2013, a New York Federal Bankruptcy Judge formally dissolved the firm, putting an end to 103 years of business. The well known Dewey and LeBoeuf has ceased to exist. It is dead.

There are two important things to learn from the Dewey & LeBoeuf bankruptcy filing.

First, if 1,200 of the world’s smartest and highest paid lawyers (many of whom were bankruptcy, restructuring and workout experts!) cannot figure out how to avoid bankruptcy, then you should not denigrate yourself emotionally for being unable to avoid bankruptcy filing.

Second, you should not repay friends and relatives right before you file for bankruptcy – more on this later in the article – and this is perhaps the most important practical teaching from Dewey and LeBoeuf.

Dewey and LeBoeuf reported 2011 gross revenue of $935 million for its approximate 1,200 lawyers. The firm had a large bankruptcy and restructurings department with bankruptcy/restructuring experience dating back to the 1920s, yet the firm could not seem to save itself, despite its all-star lineup of Ivy League law school graduate partners and associates.

Even worse, a number of firm team leaders are now under criminal investigation for allegedly hiding the troubled finances of the firm. Steven H. Davis, the firm’s former chairman and Stephen DiCarmine, the firm’s former executive director, both face criminal probes and Mr. Davis has retained a defense lawyer, says the NY Times.

Sadly, the Dewey lawyers could not seem to work together to save their law firm – when the going looked rough in 2011 and early 2012, some 200 of the 300 equity partners jumped ship to other law firms. Perhaps even worse, one important law firm member, Martin J. Bienenstock (the former head of Dewey’s bankruptcy practice) was accused by two former partners Elizabeth B. Sandza and Andrew J. Fawbush of devising a scheme and plan to pay himself $6 million from Dewey funds in 2010 while the rank-and-file partners saw their 2010 pay deferred and then ultimately “clawed back” by the bankruptcy court for repayment to creditors.

What does “clawed back” mean? Well, in this context it might mean that Sandza and Fawbush (and other partners) had to refund their 2010 paychecks back to the law firm for whom they worked upon the filing of the bankruptcy, meaning much of their 2010 work may end up having been done for free and perhaps was ultimately not compensated.

How did Sandza and Fawbush end up having to refund some or all of their 2010 paychecks/compensation, along with a number of other partners?

While the news accounts I can readily find are sparse and I rely mostly on one NY Times article referenced below, here is my hunch: When Sandza and Fawbush agreed to defer some of their 2010 pay to be received later than when it was normally due to them, their ultimate receipt of pay fell into a “preference period” pre-bankruptcy, wherein in the year or so leading up to the bankruptcy, funds they received as compensation were deemed returnable to the bankruptcy court for distribution to creditors as what is known as a “preference” or “preferential transfer”. The concept might be that Sandza and Fawbush as equity partners and thus are presumed to have known what was going on with the law firm’s finances yet took pay out anyway in a time period that was too close to the bankruptcy, presumably knowing that the pay should have gone to reimburse and pay law firm creditors instead of going to pay Sandza and Fawbush their partnership share.

Why would Sandza and Fawbush be upset with Bienenstock – as Bienenstock seems not to have had his 2010 pay “clawed back” into the bankruptcy? (Beinenstock, according to the New York Times, may have been paid earlier than were Sandza and Fawbush, who saw their 2010 compensation payments deferred) Well, one can only speculate that if Bienenstock saw the trouble on the horizon he might have pushed for being paid sooner than others because he knew that if he didn’t get paid quickly and ahead of others that his $6 million payment could fall into the “preference period” prior to the eventual May 2012 bankruptcy filing. Since he was an expert on bankruptcy issues, perhaps Sandza and Fawbush believe that Bienenstock might have taken advantage of that expertise to push for his $6 million in pay sooner so that it would not fall into the suspected “preference period” and be subject to a “clawback” into the bankruptcy court for distribution to creditors.

Why blog about the failed mega-law firm Dewey & LeBoeuf? How are Sandza, Fawbush and Bienenstock relevant to a consumer mom and pop bankruptcy filing? Good questions – there are two answers:

First, I meet with so many people who are down on themselves for having to file for bankruptcy, even though they had perfectly good reasons for falling into financial hardship. These reasons include job loss, illness, falling home values, large family size and crazy home loans with “exploding arm” sudden interest rate increases. So I ask this important question: If one of the biggest law firms in the world which was chock-full of Harvard and other Ivy League law school graduates could not figure out how to pay the bills and stay solvent, then how on earth are my well-meaning clients supposed to do much better? Remember, these brainiac lawyers went through a bankruptcy filing and went on to live their lives and care for their families – why should my clients not grant themselves the same emotional luxury? Think about it: Dewey and LeBoeuf had a 103 year track record and were EXPERTS at keeping businesses out of bankruptcy and helping businesses who ran into financial trouble – yet these 1,200 experts could not muster a plan of action to save themselves, despite enjoying some of the highest pay and billings in the entire legal world. The world was their oyster – and they still couldn’t figure out how to make ends meet.

Second, the “preference” and “claw back” issues. There is a lesson here for everyone considering a bankruptcy filing. If you are facing trouble and think you may need to file for bankruptcy relief, then DO NOT, I repeat DO NOT repay friends and relative or transfer assets or property to friends or relatives right before the bankruptcy filing until after you have secured competent legal advice from a knowledgeable bankruptcy lawyer and asked the question about how much you should pay back or what you should transfer to mom. For if you repay mom that $10,000 right before the bankruptcy, then mom might find herself being sued by the bankruptcy court trustee in your bankruptcy case with a demand to pay into the bankruptcy court some or all of the $10,000. Better to just wait until after the bankruptcy is over and then voluntarily repay mother that $10,000. Plenty of people mess this one up – don’t you be one of them.

Now, there may be some times that you would want to pay mother right before bankruptcy or transfer something to a friend or relative, but these are few and far between, so before you decide to repay mom or transfer an asset to a friend or relative, make sure you consult with a competent bankruptcy lawyer before making the repayment if you think that you could potentially be facing a bankruptcy filing in the future – even the distant future.

How about repaying other creditors other than friends or family right before a bankruptcy? This blog post is already too long, so I will just say that before you make any such payments you should first consult with competent, experienced and qualified bankruptcy counsel to make sure you do not run afoul – and end up like Sandza and Fawbush. Sandza and Fawbush would essentially argue that Bienenstock knew what he was doing and that he executed it well – The result: Bienenstock will probably get to keep his $6 million, Sandza and Fawbush get nothing. Knowledge is king, my friend!

As a footnote, the NY Times reports that, all in all, about 450 Dewey partners and former partners will end up returning about $450 million to the law firm in return for insulating themselves from future lawsuits connected to Dewey’s demise.

Many thanks to Peter Lattman of the New York Times, who provided information contained herein, including details on the Sandza, Fawbush & Bienenstock dispute in his article “With a Judge’s Decision, Dewey is Officially Dissolved”, NY Times, page B5, February 28, 2013.

Can you reach the max?

Retirement is coming, if it is not already here for you. If you have income for which to fund a 401k or to contribute to an IRA, I would like you to think about these three questions I answered in this article, and the list of tips I also present in this article.

If you already have a 401k or IRA for retirement savings, you should read carefully, because a “game plan” concerning how you are going to use your retirement savings- or not use your retirement savings- is a very important foundational building block when it comes to retirement savings. Decisions about your 401k and decisions about bankruptcy are intertwined for many people.

Question 1: Should I file for chapter 7 bankruptcy to wipe out debts? Or in the alternative should I not file for bankruptcy but instead cash out my 401k to pay off debts?

Answer: With only a few exceptions, I strongly recommend a bankruptcy filing over 401k withdrawals.

Question 2: Should I file for Chapter 13 bankruptcy reorganization over cashing out a 401k account with the purpose of staving off a foreclosure or preventing vehicle repossession?

Answer: With few exceptions, I strongly recommend a Chapter 13 bankruptcy reorganization over cashing out a 401k account with the purpose of staving off a foreclosure or preventing vehicle repossession.

Question 3: Should I take out a loan or cash out a 401k or IRA in order to pay Federal Income Tax debt?

Answer: You can almost always pay back the federal income tax debt interest and penalty free through a Chapter 13 bankruptcy reorganization, or alternatively you often can enter into a very reasonable tax repayment plan with the IRS. Sometimes, very old Federal Income Tax debt is even erased by bankruptcy. Thus, for many people tax repayment though chapter 13 plan can make more sense than a 401k loan or IRA cash out. There is an additional benefit: although most people don’t realize it, if your income is not super-high, you still can often wipe out credit card debts, eliminate second mortgage obligation and write off medical bills without any repayment of these debts by filing a chapter 13 case, so in many regards, a chapter 13 case can wipe out debt much like a chapter 7 case, with the added benefit of an easy cheesy Federal Income Tax repayment plan- and state tax can be repaid easily though chapter 13 too!

These are some more very important tips about how to handle your 401k, IRA, VIP, TSP or other tax deferred retirement savings, courtesy of a great article from Forbes.com which you can find here:

http://www.forbes.com/pictures/lmf45ekmg/can-you-reach-the-max/

Can You Reach The Max Part 2

Should I file for chapter 13 bankruptcy to save my house from foreclosure or my car from repossession or should I cash out my 401k to get the money to pay the mortgage or car payment? People ask me this question all the time. Here is my answer: With few exceptions, I strongly recommend a chapter 13 bankruptcy reorganization over cashing out a 401k account with the purpose of staving off a foreclosure or preventing a vehicle repossession.

Here are the next five Forbes.com steps to help you boost your 401k:

5. Taking loans out of you 401k is hard because many times you have to pay the money back. But hardship withdrawals can be allowed. If you are behind on payments such as your mortgage that would be a loan you would have to pay back but if your house was foreclosing you could be able to take out a hardship withdrawal. Not everything is a hardship though so just make sure you know the rules.
4. Many times if you make a lot of money you can only contribute a certain amount to your 401k as to prevent discrimination. If your spouse has access to a 401k, they should be saving as much as they can as well. If you or your spouse have access to saving for a 401k, take advantage of that especially if one of you has limitations on your savings part.
3. If you have an old 401k account, you should combine the two in most cases. Add the old account to the new; it is much easier to keep track of one account.
2. When you first sign up for a 401k you pick investments and many times don’t get around to changing, or revising it to make the best choice for your savings. For example don’t just choose company stock because it’s there, don’t forget to revise your 401k and choose your best options.
1.Don’t cash out your 401k as soon as it is available to you. Leave it as long as it is still invested in good options. Just because it reaches the penalty free mark or you retire, doesn’t mean that’s the best time to cash out for you.

I might also add that under most circumstances you should not take a 401k loan or cash out a 401k or IRA to pay off federal income tax debt because you can almost always pay back the federal income tax debt interest and penalty fee though Chapter 13 bankruptcy reorganization, or often enter into a very reasonable tax repayment plan with the IRS.

If you have already taken out a big 401k loan or cashed out an IRA (or taken a large withdrawal or fully or partially cashed out a 401k) you really need to begin to rebuild.

Can you reach the max?

10 Steps to Boost Your 401(k) Balance

Should I file for Chapter 7 bankruptcy to wipe out debts or should I cash my 401k to pay off debts? Many face this question and it is an inquiry I must often answer: Here is my response: With only a few exceptions, I strongly recommend a bankruptcy filing over 401k withdrawals.

If you have already cashed out your 401k account or IRA (or taken a large withdrawal or large loan) you really need to begin to rebuild. I found this article with many helpful 401k tips and I wanted to share with you.

Tips 6-10:

10. Many companies suspended 401k’s during the recession and are now slowly reinstating them. Make sure to match their contribution so you can restart the building of your 401k.
9. Start saving your salary increase and thinking about adding it to your 401k. If you get a raise, add that much more to your 401k and if you receive a bonus try to contribute as much as you can to it.
8. Most employers let you set your contribution to your 401k mid year, not just during a special enrollment time or at the start of a new job. Don’t forget you can reset your percentage mid year, not just at one time.
7. If you are on the younger side, consider the Roth 401k, if your employer offers it. The special thing with a Roth is that it lets you contribute already taxed dollars to your 401k and then withdrawals in retirement are tax-free!
6. A lot of employers allow their employees to take loans out of their 401k, and many people take advantage of it. The problem with that is that many people who take the loans forget to pay them back or just cant afford to. But if you get laid off or find another job, your loan is due immediately, which can put you into deep debt.

Stay tuned for the next five steps to help you reach your max 401k savings,

The article can be found here:

http://www.forbes.com/pictures/lmf45ekmg/can-you-reach-the-max/

Dating, Marriage and Credit Scores: A New Twist in the Road To A Happy Life

He was tall, religious, well employed in finance and had great teeth. Even better, he came from a nice family background, and was brought up similarly to her. She was attractive, peppy and fully employed as a flight attendant.

But Chicago’s Jessica LaShawn was dumped after a first date when somewhere between salad and dessert Jessica truthfully answered a question about her credit score. Jessica’s FICO score was subprime (below 660), as she had paid late on some bills and had some lingering unresolved debts. A couple of days later, Jessica received an apologetic text message from her potential prince charming – no second date – it wasn’t Jessica, it was Jessica’s credit score which caused him to decline a second date with her. Good bye prince charming. Good bye, white picket fence…

Credit Scores are newly becoming a relationship metric, as many people are deciding who to consider and who not to consider for marriage based in part upon credit scores. Dating site executives report that they are receiving more inquiries and interest about when and how to bring up the issue of credit scores when deciding whether to date or pursue a relationship with a potential suitor.

Similarly, many marriage counselors relate that improving credit scores is a frequent topic of discussion with marital and relationship counseling clients. Dissimilar levels of concerns about maintaining an acceptable credit score can lead to significant friction in a long term relationship.

So how does bankruptcy fit into the universe of dating, marriage and credit scores?

Credit scores affect us all. Credit scores are kept on about 200 million Americans by FICO. More than 34% of these Americans (68.6 million) tracked by FICO have subprime credit scores of less than 660. FICO is short for Fair Isaac Corporation.

About 18.5% of Americans (37 million) enjoy the highest credit score range of 850-900, another 19.0% (38 million) enjoy very good credit scores of 750-800. About 16.0% of Americans (32 million) enjoy “good” credit scores of 700 – 750 and 12.2% of Americans (24.4 million) have borderline FICO credit scores of 650-700.

If unpaid bills, high credit card balances, lingering tax debts, old foreclosures and unresolved vehicle repossession deficiency obligations are keeping you in the “below 700” catagory with respect to FICO scores, what can you do?

How about a bankruptcy? What? Doesn’t bankruptcy ruin your credit, you ask?

Well, sometimes you have to go down before you can go up.

Many experts recite that a bankruptcy will temporarily dump your credit score down to 550, but then in many circumatances you will automatically start a very steady and sure climb back to a level of 700 (good), 750 (very good) or maybe even higher.

The New York Time (April 12, 2012) reports that the car loan or credit card for which you were unable to qualify right before bankruptcy can very likely immediately be yours right after a bankruptcy filing. This might suprise you, but after bankruptcy, many creditors will actively and very aggressively again solicit your business. This sounds very counterintuitive and maybe even a bit crazy, but strangely it is true.

After almost 19 years, I keep thinking that some day I will have seen it all when it comes to Creditors. However, the Creditors keep suprising me with new ideas and schemes, and these are often to your benefit, so check out this new shocking twist: I have had a few Chapter 7 clients show up at Court bearing letters that recite in essece the following:

“Dear Newly Bankrupt Potentially Valued Client: We have reviewed that you have a vehicle financed with another lender. We want you talk to your lawyer at court about giving up that old financed car in a voluntary repossession, thus giving the car back to your lender. If you do this, then on your way home from bankruptcy court just stop by our car lot and secure quick financing for a newer and better car.”

How does that grab you? Stop by the car lot on the way home from bankruptcy court and pick up a new car? Strange, but often true.

If your marriage relationship is suffering the stress of not meeting financial and mateiral goals due to chronically low credit scores, then consider a bankruptcy filing to charge up the material needs which, face it, are an important part of living with some contentedness in a long term relationship.

We all like to say that love is enough, but we all know that every marriage has material needs and material aspirations. Even if such material goals are modest, such as replacing that aging car, starting to save for retirement or college, moving up to a more suitably sized home, getting on a cell phone data plan instead of being stuck with an expensive “prepaid phone” or maybe even renting a little nicer place to live – we all have needs and aspirations. Chronically low credit scores can take away some of the material comforts that we look forward to enjoying with our mate in a long term relationship, and these disappointments can take a little of the joy out of your daily walk of relationship and marriage.

And in Jessica’s LaShawn’s date with Mr. Right, he had her at hello…but it was quickly goodbye due to Jessica’s chronically low credit score. If Jessica had filed for bankruptcy well before her dream date appeared and had thus already started the amazingly quick post-bankruptcy credit score recovery process, she would probably have received that offer of a second date. But she was not proactive and did not file for bankruptcy. Jessica just ignored her declining credit situation because it was too uncomfortable to face. The result? Sadly, for Jessica the story is “white picket fence postponed”.

Get on with your life and start living now: Consider bankruptcy as a strategic tool for your long term dating, relationship and marital hapiness. You will be shocked at how quickly your creditworthiness is restored post-bankruptcy.

And while you are at it, spread the good news that there is hope for the future through bankruptcy- people need to know, and if you won’t tell them, they will never learn.

[Special thanks to Jessica Silver-Greenberg, for writing “Perfect 10? Never Mind That. Ask Her for Her Credit Score.” NY Times, Page A1, Wednesday, December 26, 2012.]

Considering the need for a bankruptcy filing to get your credit back on track? Contact us at 253-383-1001 for an appointment in Tacoma, Puyallup, Olympia, Chehalis, Renton or Bremerton.

Retirement But Not Totally Overview

The economy has had a great impact upon those people facing retirement. Many have lost jobs, or been forced to take jobs paying much less then pre-recession employment. In addition, many people have lost homes due to foreclosure, feeling compelled to walk away because of mortgages balances which greatly exceed their home’s value. Bankruptcy filings in the pre-retirement demographic are skyrocketing, and have been high for many years.

With rising medical costs, rising food costs and expensive gasoline, many people are worried whether social security and perhaps a small pension will provide a comfortable retirement.

One way to improve the quality of life in retirement is to continue to work, and some places in the country offer better working opportunities for retirement age people than do other locations.

Is retirement on the horizon for you? Are you worried whether your retirement income will stretch to provide a quality lifestyle? If these are concerns for you, consider relocating to one of these 25 havens for retirees who might wish to continue to work past retirement age.

Forbes magazine compiled a list of places to where a retiree or a person facing retirement might want to consider relocating if there is a need or desire to work past retirement age. Below is the “James Magee short list” of the top three places for a quality retirement.

1. Iowa City, Iowa: With Iowa Medical School in its midst, Iowa City’s doctor count is six times above the national average. Also unemployment is at 3.8% and job opportunities are growing.
2. Corvallis, Oregon: Corvallis is a college town which helps the strong economy, this city has a 5.8% unemployment rate and room for even more economic growth. There’s no state sales tax, and has plenty of doctors and a low violent crime rate.
3. Pittsburg, Pennsylvania: Unemployment is at 6.6%. Although the winters here are extremely cold, the cost of living is 6% below the national average and homes are going for $121,000. Also the doctors per capita ranks at one of the nations highest.

Retirement is a lot different then it was many years ago. In this country’s current economy, it is much harder to retire and retirement occurs at an older age. A wonderful alternative is to pursue a working retirement, keeping a job but still enjoying the retired life. Any of the 25 cities on Forbes.com’s list are wonderful alternative cities to relocate to. If you are so far in debt but you have bankruptcy as an option, it may be your best option. Your debt can be taken care of by filing for bankruptcy and once debt free you can easily relocate and start a fresh retirement in one of these cities with low unemployment rates, nice climates and so many other perks.

The Forbes.com article can be found here:

http://www.forbes.com/pictures/mjd45idmk/retirement-but-not-totally/