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Western Sky To Stop Payday Lending

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Western Sky To Stop Payday Lending

Western Sky On-Line Payday Lender To Stop Making Loans!

I have written about payday loans many times and it always disturbs me to see what sharks these guys are. As a bankruptcy lawyer in New Jersey, I often see people who are in financial distress turn to some pretty unsavory companies.  Payday lenders are the scum of the earth and the damage inflicted because of such loans is nothing short of terrible.

Lately there has been a good deal of press about payday lenders with several states launching investigations and other actions.  Today, one of those companies, Western Sky Financial, says it will stop making loans.  As reported in The Washington Post an other news services that Western Sky will no longer be making their ultra high interest loans after September 3 as a result of governmental enforcement actions.

As being reported in the Wall Street Journal, several states have filed enforcement actions against Western Sky alleging that its loans violate state licensing and lending laws.  Western Sky contended that it was a entitled to tribal immunity because one of its owners is a member of the Cheyenne River Sioux tribe.  To date, every court that has considered this proposition has rejected Western Sky’s claim that it is entitled to tribal immunity.

Unfortunately, even though Western Sky says it will stop making loans, there are a large number of “loans” still outstanding.  If you have a payday loan from an out-of-state lender or an on-line lender, you should consult with a lawyer in your area to see if that loan is also illegal.

Considering bankruptcy?  Todd Murphy, a NJ Bankruptcy Attorney, is the New Jersey Bankruptcy Lawyer people have trusted for over 15 years for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy.  Our office is conveniently located to serve all of Essex County, Bergen County, Passaic County, Hudson County, Union County, Morris County, and Middlesex County.

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What happens to my Chapter 13 Plan If My Income Changes?

I got a raise!
I got a raise!

I got a raise!

It’s wonderful to get a raise or a promotion at work but what happens to my Chapter 13 Plan if my income changes after I file Chapter 13?

The answer to the question of “What Happens If My Income Changes” depends on a couple of things:

The Basic Requirement.

Under the bankruptcy code, you may be required to contribute your projected disposable income toward plan payments for the first 36 months of the plan. I say “may” because the code only requires you to contribute your full disposable income to plan payments if the trustee or a creditor requires it.  However, the trustee always requires it, at least at the start of the plan.

Will A Change In My Salary Require A Change In My Plan Payment?

When Your Income Goes Down: When your income goes down, you are going to want your plan payment to go down otherwise you won’t be able to make the payments.  In that case, call your NJ Bankruptcy Attorney right away to discuss filing an amendment to reduce your plan payment.

When Your Income Increases: When you income increases, the answer to the question depends on a couple of factors: when and how much the salary changes, as well as other changes in your circumstances.

  • When your income changes increases.
    1. Before the plan has been confirmed. After the case has been filed, but before the court has entered an order making it binding on creditors, the Trustee will be looking closely at your disposable income and will require that plan payments be consistent with your disposable income.
    2. After the 36th month of the plan. If your plan is longer than 36 months in length, the code makes no specific requirement that disposable income be contributed to the plan beyond the first 36 months. In Newark New Jersey, the trustee has accepted this limitation and has not asked for increases in plan payments based on increases in income after the 36th month.
    3. After your plan has been confirmed, but within the first 36 months. There is some authority to suggest that the plan is confirmed based upon projected disposable income and that changes in your income do not necessitate changes in your plan payments. Most trustees do not accept that view and will ask that your payments be adjusted if your disposable income changes significantly. If this view were rigidly adopted, the trustee would have to monitor your income closely. The trustee does not do this, and there is authority to suggest that this is beyond the scope of his or her duties. In Newark, the trustee has been requiring that debtors provide her with copies of income tax returns for the first two years of the plan. If she finds a significant increase in income, she asks for an amended budget to determine whether disposable income has increased. If it has, she asks for an increase in plan payments.
  • How much the salary changes, and other changes.
    The plan payments are based on disposable income, not just income. Disposable income is that portion of your income left over after you meet all of your reasonable living expenses – all of your expenses including not just rent/mortgage, utilities, food, clothing, but reasonable allowances for recreation, etc.. If your income goes up, but so do your expenses, there would be no change in disposable income. If your disposable income does go up significantly, the trustee may ask for an increase in your payments. If your payments increase, and if the length of your plan is greater than 36 months, the increase in payments is usually accompanied by a reduction in the length of the plan. In such a case you would simply be paying the plan off sooner.

Chapter 13 Bankruptcy can be tricky – especially in the long-run.  This is just one common example of why it is important to stay in touch with your Chapter 13 Bankruptcy Attorney all throughout the duration of your Chapter 13 Plan.

Considering bankruptcy?  Todd Murphy, a NJ Bankruptcy Attorney, is the New Jersey Bankruptcy Lawyer people have trusted for over 15 years for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy.  Our office is conveniently located to serve all of Essex County, Bergen County, Passaic County, Hudson County, Union County, Morris County, and Middlesex County.

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Advice for Making Chapter 13 Bankruptcy Work for You

Looking for advice for making Chapter 13 Bankruptcy work for you?

People file for Chapter 13 bankruptcy for many reasons such as to reorganize debts in a manageable way or to save a home from foreclosure.   Unfortunately, many Chapter 13 Bankruptcy cases fail in the long-run.  Here is some advice for making Chapter 13 Bankruptcy work for you.

It is important to remember that Chapter 13 Bankruptcy is a long process – often five years – and it is important to do everything you can do to make the most of all that Chapter 13 Bankruptcy can do for you.

Its a Long Haul.

First stop should be an experienced New Jersey Bankruptcy Attorney.  At the same time, you should consult a couple of good websites hosted by Bankruptcy Lawyers to educate yourself on the process.  Since you are reading this article, it appears you are already on the right track.

Bankruptcy Is A Game Changer.

The huge benefit of Chapter 13 Bankruptcy is it provides you with the opportunity to manage your debt based on your actual budget.  I’ll say that again – your budget.  It puts you in control of paying your debts according to your budget and schedule not your creditors demands.

Chapter 13 Bankruptcy gives you power over your creditors and protects you from almost all legal action against you.

Do Your Part.

If Your Expect Extraordinary Results You Must Put Forth Extraordinary Effort

Chapter 13 Bankruptcy is a lot of work.  Be sure you stay involved in the process, make your payments on time and work with your Bankruptcy Attorney to develop a budget and plan you can afford in the long term.

Careful Planning Makes It Work.

The Budget. Chapter 13 is a reorganization of your debts.  We start by analyzing your income then preparing a household budget that you can live on.  Whatever money is left of your income after paying all of the expenses in your household budget then is paid to the trustee to fund your “Chapter 13 Plan.”

The Plan. The Chapter 13 Plan is a plan to pay your creditors.  Creditors are first sorted by priority into secured or unsecured creditors.  Secured creditors include your mortgage lender and car loan lender and they get paid first.  If there is any money left over after paying the secured creditors, that money is divided amongst your unsecured creditors such as credit cards.   There are other features of a Chapter 13 Plan that can be beneficial such as eliminating second mortgages or adjusting the terms of loans other than your first mortgage.

Get The Right Bankruptcy Attorney On Your Team.

In choosing an attorney, look for someone who will take the necessary time to work with you to develop a budget and a plan that you can live with for five years.  Too many people can’t make their plan payments which can lead to many different problems the most serious of which is to have your case dismissed.  This means you lose all of the rights you gained from the bankruptcy laws.

Advice For Making Chapter 13 Bankruptcy Work For You.

But what should you do during the bankruptcy process to make it run smoothly?

  • You should remain involved in your case the entire time it is pending.  This means keeping in touch with your New Jersey Bankruptcy Attorney, and informing him/her of any changes in your income or expenses as well as  to your email address, your home address, or phone number.
  • You must make your Chapter 13 Bankruptcy Plan Payments on time every time.  Missing a payment can have very significant consequences.  Don’t make this mistake.
  • Make sure you keep your mortgage and car payments up to date.
  • If you sense that you might fall behind on payments or if you have an emergency, call your bankruptcy lawyer.
  • Remember that your lawyer’s job is to create a payment plan than should work for you. You are the one who makes it work.
  • If you receive something in the mail that you don’t understand, contact your Bankruptcy Attorney right away.

 

Keep Focused On The Goal.

 

Obstacles Are those frightful things you see when you take your eyes off the goal – Henry Ford

 

 

Considering bankruptcy?  Todd Murphy, a NJ Bankruptcy Attorney, is the New Jersey Bankruptcy Lawyer people have trusted for over 15 years for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy.  Our office is conveniently located to serve all of Essex County, Bergen County, Passaic County, Hudson County, Union County, Morris County, and Middlesex County

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Fight Collection Abuse

The Fair Debt Collection Practices Act helps protect consumers and fight collection abuse.  New Jersey bankruptcy firm Todd Murphy Law can help protect you from questionable or harassing debt collection practices.

The Fair Debt Collection Practices Act (FDCPA) prohibits the debt collector from contacting a third party (someone who has information about you) if they know that you are represented by a lawyer.  If you do not have a bankruptcy lawyer, the debt collector can only contact third parties to locate you.  Your New Jersey bankruptcy lawyer will inform your debt collectors that he/she is representing you.

A debt collector must inform you in every communication they have with you that the communication is from a debt collector.  The debt collector is required to send you a dispute/verification invitation within five days of their first contact with you.  If you submit a dispute within 30 days, the debt collector must stop trying to collect until the debt is verified.

Telephone calls from a debt collector to you must only occur between 8:00am and 9:00pm.  They cannot call you at work if there is an employer policy against such types of calls.

A debt collector must not harass, oppress, or abuse a consumer.  This is not well defined in the law, however, and is left to the courts to decide.  If there is abuse, try to record abusive collection language when you hear it, and keep a record of the calls in writing what took place and how it made you feel.  The more proof of the abuse you have the better, as it can be difficult to convince a judge or jury that abuse took place.

Debt collectors are not permitted to use false or misleading information to collect a debt, and may not collect more than what is owed.

If a debt collector violates any part of the FDCPA, you may be able to recover actual damages, $1000 in statutory penalties, and attorney fees.

We’re here to help protect against collection abuse practices. If you’re abused by a collector, contact an attorney immediately.

Call Todd Murphy Law today for a free consultation.

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Can Bankruptcy Stop A Foreclosure?

Yes – in many cases.

Bankruptcy is a very smart choice for most individuals who are having trouble with too much debt. It is a government sanctioned program designed to help you while giving you every protection available under the law.

One benefit of filing for Chapter 13 bankruptcy is that it can stop foreclosure.  Chapter 13 bankruptcy can even stop a foreclosure on the night before it is scheduled to happen.

Each foreclosure situation is different, so speaking to a New Jersey bankruptcy lawyer is the best way to determine if filing for bankruptcy is the best way for you to prevent foreclosure of your home.  Chapter 13 bankruptcy is designed to help you reorganize your finances, and in the process can help stop a scheduled foreclosure.