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Tag Archives: Bremerton Bankruptcy

Credit CARD Act of 2009 – what it means to you – Part 3 of 7 – Minimum payment protections

[Categories: Washington Bankruptcy Attorney]

When the prohibition against a retroactive rate increase applies (e.g. the payment is late but not more than 60 days late) the CARD Act limits how much the lender can increase your minimum payment. The lender’s options are limited. The lender may either: (1) use the existing minimum payment terms; give you five years to pay off the outstading balance at the old interest rate or (3) increase the minimum payment to no more than twice as much of a contribution to paying down the balance as the old minimum payment.

Special thanks to the National Consumer Law Center www.consumerlaw.org, "Guide to Surviving Debt" chapter 5, page 78. 2010 editions.

Credit CARD Act of 2009 – what it means to you – Part 1 of 7 – Protections re: rate increases

Eight protections (among a number of others) include the following. Here is the first protection:

– Protections against rate increases for future transactions. The Credit CARD Act prohibits credit card lenders from increasing the interest rate that applies to the balance you’ve already incurred on your credit card, a practice known as "retroactive rate increase". There are several exceptions to this rule, which are the following:

(a) Varaible rates – if it is a variable rate card, (e.g. prime plus 7.0%) then the rate can change on all purchases/cash advances when the index changes;

(b) Teaser rates – a lender may raise the rate after the expiration of a teaser rate, but only to the post-teaser rate previously disclosed. Also, teaser rates cannot last fewer than six months.

(c) Sixty-plus days late – a retroactive rate increase on existing balances is permissible as a penalty rate when you are more than sixty days late in making the required minimum payment. NOTE: You can get the old non-penalty rate back and reinstated if you make the next six months worth of minimum payments on time.

Special thanks to the National Consumer Law Center’s "Guide to Surviving Debt", 2010 edition, available at www.consumerlaw.org for a mere $20.00 or so. I highly recommend it.

Rent-a-kitchen – Beating unemployment.

I found this Wednesday, December 15, 2010, New York Times Article (page 1) by Fernanda Santos to be inspiring.

Ms. Santos writes about Marisa Angebranndt, once employed by a hedge fund, who rents space in a commercial kitchen to make "whoopie pies" for sale. She adapted her grandmother’s recipie, but made it more modern with butter cream filling.

Similarly, Shefalee Patel now rents space in that same commercial kitchen to make Indian sweets.

Miguel Urrego, uses the kitchen, renting space to make a diverse menu of catered food items.

The kitchen is known as the Entrepreneur’s Space, is on 37th street near Northern Boulevard in Long Island City, Queens, New York.

Aspiring chefs and cooks can rent space by the hour in a commercial kitchen which meets all applicable health and building codes. It is quite large, at 5,000 square feet. Rent is high during the day, at close to $231 for an 8 a.m. to 4 p.m. shift, but drops to $154 for the 1 a.m. to 7:30 a.m. shift.

The people using the kitchen sell what they make for a living in a number of different networks. THe Entrepreneur’s Space has no retail outlet – so you cook your food in it and then go out and sell it, or you secure orders and then you cook the food in the Entrepreneur’s Space.

The Entrepreneur’s Space is recognized as a place to combine an interest in food, and an income.

The Entrepreneur’s Space almost closed down last year in late August, but had it closed, it would have displaced some 100 small busineses reports Ms. Santos.

The kitchen was originally started with the Consortium for Worker Education, a union-backed nonprofit group. It was recently extended a lifeline with an infusion of funds from the Queens Economic Development Corporation, plus a number of other city and small group participants.

I was once introduced to a lady who made wedding cakes in a little-used kitchen space that had fallen into disuse when a social club quit using the kitchen space. The cakes were beautiful and she developed quite a little sustainable business in the old kitchen space, paying a small amount of rent.

Many people who are not presently employed have plenty of skills to contribute. I found this article encouraging and interesting, so I mention it for your inspiration.

http://www.nytimes.com/2010/12/15/nyregion/15kitchen.html?_r=1&scp=1&sq=A%20kitchen-for-rent%20is%20a%20lifeline%20for%20the%20laid-off&st=cse

Chinese Curriculum: Plenty of math and science – with English taught from the first grade.

Thanks to DAvid Barboza of the NY Times for his December 30, 2010, article, page A4 "Shanghai Schools’ Approach Pushes Students to Top of Tests".

Zhou Han, age 14, studies the erhu (pronounced R-hoo), a classical chinese instrument something like a large violin. She has a math tutor. She entered writing and speech making competitions. She started studying English language in the first grade.

Her school operates from about 8:20 a.m. to 4 p.m., and attends extra credit courses after school or on Saturdays.

She attends Jing’An middle school, affiliated with Jing’An Teachers’ College in Shanghai, China. This is arguably the best middle school in China.

It a test of math, reading comprehension and science ability, 5,100 Shanghai 15 year olds outperformed students from 65 other countries. American students came in between 15th and 31st out of the 65 countries in these catagories.

"Discipline is rarely a problem", said Ding Yi, vice principal at the Jing’An middle school.

There is a complaint that the Chinese public schools emphasize wrote learning and preparing for tests, according to Jiang Xueqian, deputy principal at Peking University High School in Beijing, writes the NY Times’ David Barboza. Mr. Jiang would like to see more emphasis on critical thinking, curiosity and independent thinking.

http://www.nytimes.com/2010/12/30/world/asia/30shanghai.html?scp=1&sq=Shanghai%20Schools’%20approach%20pushes%20students%20to%20top%20of%20tests&st=cse

Never be unemployed again – Spanish speaking Anglos (caucasians) are always in demand.

Over 40% of New Mexico’s population is hispanic, with many speaking Spanish as their primary language, according to The Economist magazine, September 11, 2010, pg 35 "The law of large numbers: the hispanicisation of America"

Similarly, 30% to 40% of the population of California, Arizona and Texas is latino.

Suprisingly, 10% to 20% of the population of Washington, Illinois, Oregon, Idaho, Utah, Illinois, New York, Connecticut and New Jersey is also hispanic.

Many hispanics tend to prefer Republican politics as of late, but anti-immigration sentiment is pushing many back towards Democratic candidates.

Now, human migration is something that is difficult to contain. Eventually, people just migrate. Fences, attack dogs, barbed wire, guard towers and infrared equipped helicopters may slow down migration, but eventually, if people have to move they just move, is my take on the matter (you are free to disagree!).

In late 2005 (contemporaneous with the birth of my first child) I decided to "fix" my Spanish abilities. Learning Spanish will make you "recession proof", I believe. I think that a bi-lingual person will always be able to find employment, even if not "translator" fluent.

Spanish is a wonderful language. I often now prefer to speak Spanish. It is logical and regularly follows its own gramatical rules. It is straightforward to spell and write in Spanish. I like to say that Spanish promotes literacy, whereas English almost discourages literacy.

Here is my recipie for Spanish:

Spend one month in either Antigua, Guatemala or Granada, NIcaragua, studying four to six hours per day, one on one with a teacher at Ixchel Spanish School (Antigua, Guatemala) or Roger Ramirez’s One-on-One Tutoring, in Granada, Nicaragua.

Usually, it is about $100 per week for twenty hours weekly of one-on-one teaching, or about $150 weekly for six hours daily totaling 30 hours per week. This is really the best way to learn.

You can arrange (sponsored and arranged by the school) for room and board with a local family, wherein meals are usually provided six days per week, breakfast, lunch and dinner. The cost for room and board is usually $75-$100 per week, room and board (no joke! it really is that inexpensive!). However, you should tip your homestay family and your teacher at the end of your stay maybe 10% to 25% of your expenditure, but tips are not required.

If you are a big eater, or want a bit more meat, you can arrange to pay a little more to your family, or supplement a bit by eating out.

After you return home, you should search out a local tutor for weekly two hour sessions for about a year. I would write short stories in Spanish, and then my teacher and I would correct and re-write the stories.

You should also subscribe to National Geographic in Spanish, and force yourself to read every issue and define the words you do not know, writing the definitions in the margins.

For fun, you can pick up "people en espanol" magazine.

Pike Place Market in Seattle has a newstand which usually carries a nice selection of foreign newspapers. ISimilar my use of "people en espanol" magazine, I used to buy one every month and read it – looking up and writing in the margins the definitions to unfamiliar words.

I know that many of the readers of this blog might find this far-fetched – after all, there are mortgages and car payments to pay and if facing unemployment, funds can be thin.

However, I can think of no schooling course or training course which will help you to better "stand out from the crowd".

Anglos (caucasians) who can speak Spanish do so well in the workplace and interview process because they are not "immigrants" to the American way of doing things. Spanish speaking Anglos fit well into business organizations and understand employers’ expectations and can provide nuanced service. Clearly, an immigrant speaking Spanish as a first language and later learning English can learn to fit well into an enterprise, but Enlish is so darn complicated and hard to read/write that immigrants struggle with English.

Spanish is a great language – it has a huge and rich vocabulary, and can express many things better than can English.

Challenge yourself to meet the demographic demands of a changing America – learn Spanish – you will never regret it….and say goodbye forever to the unemployment line.

Credit Cards: Additional things to think about before getting a new credit card – Preventing trouble

I have another post "Credit Cards: Things to think about before getting a new card…"

But here are four more things to think about – and probably these are the four most important TIPS anyone can offer when obtaining a new credit card.

– Look for the grace period – Credit cards DO NOT HAVE to offer a grace period during which you can pay off credit purchases (paying it in full) without incurring finance charges. Note that cash advances usually don’t ahve a grace period. Without a grace period, finance charges begin accruing immediately and a low rate may actually be higher than it looks.

Under the new CARD Act of 2009, lenders must mail your credit card statement at least twenty-one days before the end of the grace period. Of course, a grace period that is even longer is more beneficial. If you are running very close to the deadline, you might consider paying, at least for that month, over the internet or by phone. Under the new CARD Act, a lender can only charge you for paying by phone if you need the help of a live customer service representative.

-Watch out for bait & switch offers – Some credit card leners will send you an offer advertising a low-interest credit card wtih a high limit. However, nestled in the fine print in the offer is a less attractive, more expensive card if you don’t qualify. The substituted card often has a higher interest rate, more expensive fees, and/or a lower credit limit. If what they send you is not what they advertised to you, send the card back, certified mail, return receipt requested, along with a letter explaining your rejection of the card.

-Review and compare – BEFORE you send back the credit card application make a photocopy of the front and back of the application including the "disclosure boxes". When you receive the credit card, then compare the new disclosures you get with the card to the credit card application disclosures and make sure that they are the same.

-Cancel the credit card if you discover terms you don’t like – You don’t need to keep a credit card if you don’t like the terms. If the lender changes the terms for your card, you have the right under the Credit CARD act to reject the changes and close your account. If you have used the card you need to pay off the blance.

Many thanks to the National Consumer Law Center’s "Guide to Surviving Debt", available at www.consumerlaw.org for only about $20.00. You should also consider taking a look at our sister website www.life-after-bankruptcy.info.

3% Drop in Bankruptcies reported January 5, 2011 – Seattle Times

December 2010 bankruptcy filings decreased 3% nationally as compared to December 2009, with 113,000 bankruptcy filings in Dec. 2010.

There are about 90 bankruptcy districts in the nation.

There was a similar decrease in filings October 2009 to October 2010.

The nation recorded about 1.55 million bankruptcy filings in 2010, an increase of 8.0% from 2009.

There was an increase of 32% from 2008 to 2009, and a 33% increase from 2007 to 2008.

The number of filings in 2010 matched that for 2004.

The West, however, indicated ongoing growth in filings, with Hawaii up 22%, Utah increasing 19%, California up 19% and Arizona up 18%.

Bob Lawless, a University of Illinois College of Law professor believes that the slight decrease in filings might be a reflection of the increased difficulty in obtaining credit advances over the past couple of years.

As reported by Make Baker of the Associated Press, See The Seattle Times, 1/5/11 Page A-9 Business.

Unemployment up in two-thirds of metropolitain areas re: November 2010

Unemployment rates rose in more than two-thirds of the nation’s largest metro areas in November, a sharp reversal from the previous month and the most since June.

The Department of Labor recited on January 2, 2011, that unemployment rates rose in 258 of the 372 largest cities, fell in 88 cities and remained the same in 26 cities. That was worse than the previous month, in which rates fell in 200 areas.

Areas with weakness in the housing market are seeing growing unemployment e.g. California, Nevada, Florida and Georgia. Las Vegas, Atlanta, San Francisco and Miami also saw increases in unemployment.

November 2010 unemployment rose to 9.8% from 9.6% over October 2010.

Many laid-off workers are giving up on job searches.

Washington may have made some small gains during this time period, but remains at 9.2% unemployment for November 2010.

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Auto Sales in trouble (again!) likely never to regain 2005 peak of 17.4 million

Buyers are only just easing back into the market, reports the Seattle Times, January 5, 2011, page A-7.

Auto sales peaked at 17.4 million back in 2005 and dropped to 10.6 million in 2009. The peak was fueled, in part, by big incentives – like employee-discounts-for-everyone schemes popular in 2005.

GM vice president of U.S. sales for GM Don Johnson says GM expects sales eventually will creep back to 15 or 16 million, but not much higher.

The average vehicle on the U.S. roads is now 10.2 years old, the oldest since 1997, and a full year older than in 2007.

Cars made up 49.8 percent of sales in 2010, while truck sales made up 50.2 percent,a nd trucks and SUV sales keep growing: in December 2010, they were 54.3% of total sales.