Kentucky Bankruptcy Law

Counsel with Care

Online cash advances

Since I started off on a soapbox today, I might as well end on one. Here is my best advice regarding onling cash advances: DO NOT USE THEM! Frankly, it is very dangerous and incredibly expensive to ever use a cash advance agency. Once you begin using them, then massive fees associated with them just makes you come up short more and more financially resulting in using them more frequently. Now, I know, there are some folks who just have their backs up against a wall and it is the only reasonable alternative they see. In that case, go to a local one with a mailing address. When you use the online ones, they have hidden their mailing address purposely to avoid being served with legal notices such as bankruptcy filing notices. You could end up with that debt not discharged because they did not get notice (applies to Chapter 13 and asset Chapter 7 cases). Additionally, there are some special rules about cash advances that I will address at another time. Bottom line – avoid if at all possible!

November 18, 2010 Posted by | Bankruptcy, Cash Advances, Chapter 13, Chapter 7 | , , , , | Leave a comment

Emergency filing

Here is the main thing I have to offer about filing an emergency bankruptcy petition: DO NOT DO IT. Now that I have that out of the way, I will rejoin the world of reality. Sometimes filing a last minute emergency bankruptcy petition happens. Such filings are referred to a “skeletal” petitions because there is no way anyone can do all the work it takes to prepare the schedules and statements of financial affairs in the last minute, the last hour, or even the last day. So, all that gets filed is the petition (the first three pages), the mailing matrix of creditors, and a few verifications and notice items. The flesh of the petition is then left to complete and must be filed within fourteen (14) days. For me, a practitioner who likes to cross the t’s and dot the i’s, that is not enough time with all the other matters I must also tend to. Invariably, something gets left out and amendments must be filed or the Debtors do not get everything pulled together to meet the deadline and their case is dismissed.

There seems to be two reasons that skeletal petitions become inevitable: 1) people so dread the idea of filing bankruptcy that they put it off until the very last possible moment even when they see it coming, or 2) people ignore and deny the lawsuits and judgments or foreclosure until the garnishment hits or the master commissioner sale is about to happen and they wake up surprised. Bottom line is that folks want to hold on to the notion that if they just wait, things are bound to get better.

This reminds me of the story of the guy that was stranded on an tiny island and was starving to death. Despite his dour predicament, he was sure God was going to save him. A ship comes by and the Captain hollers over and offers to help. The man, steadfast in his faith yells back, “Jesus is coming for me; He’ll save me. You go ahead.” A second ship comes by, but the man remains rooted deeply in his faith that God will work a miracle and save him. So, the man sends the second Captain away and moments later is face to face with Jesus in heaven, having expired on earth. The man is thrilled, but perplexed. He asks Jesus why he did not rescue him off of the island. Jesus looks back and says, “I sent two boats after you!”

So, perhaps bankruptcy is your boat. Certainly, remain hopeful of a better alternative, but go ahead and get prepared for what you already see coming at you. The benefits to seeing an attorney early on and then gathering together the information and documents needed are: 1) fewer chances of mistakes if the bankruptcy is filed so you are more likely to sail through it, 2) lower cost, and 3) peace of mind rather than panic.

November 18, 2010 Posted by | Bankruptcy, Chapter 13, Chapter 7, Planning | , , , , , , | Leave a comment