The bankruptcy laws changed in 2005 in response to the lending industry’s lobbying efforts. The lending industry convinced our congressional leaders that too many people were abusing the process, getting a head start rather than a fresh start. Congress caved under the pressure and tightened the bankruptcy process in an effort to curb these perceived abuses.

Ironically, the lending industry simultaneously extends credit irresponsibly while chastising customers for using the credit offered irresponsibly. Is it more reasonable to hold the company accountable for irresponsible lending or the individual who relies on credit to afford the basic necessities in life? Isn’t the credit industry able to protect itself? Perhaps, by lending more responsibly? Why should we as a country protect companies who fail to substantiate a credit applicant’s income and income sources or to conduct a risk or "ability to repay" analysis?

More importantly, who is protecting your rights and interests? Creditors, who are obviously looking out for themselves, have the support of Congress. The trustee, an "economic monopolist," is also in an adverse position to you. Given the inherently biased system, don’t you need someone fighting for you? The benefits of legal representation are limitless and certainly will outweigh the costs.

Due to poor legislative drafting resulting in numerous errors and internal inconsistencies, bankruptcy is still available.  The bankruptcy process now is more complicated and requires more legal maneuvering. It has become a trap for the unwary.

CHAPTER 13 BANKRUPTCY

Chapter 13 reorganizations are riddled with problems. The chapter 13 debtor may find him or herself between the proverbial "rock" and "hardplace", which threatened Odysseus in Book XII of Homer’s "The Odyssey". Odysseus had to decide whether to face Scylla, a six-headed monster, or Charybdis, an unforgiving whirlpool, as he passed through the Strait of Messina.

The chapter 13 debtor is caught between fiction and reality. The chapter 13 plan payment is set in accordance with the Means Test, which is based upon IRS Allowances. The Means Test calculation is a theoretical analysis that rarely mirrors the debtor’s actual finances. The required plan payments are often entirely impractical for the debtor.

LIFE AFTER BANKRUPTCY

Bankruptcy will get you a fresh start.  You are back in control of your life.  After bankruptcy it is imperative that you make sound financial decisions, manage your money wisely, and save for the future.

You should start working to rebuild your credit as soon as your bankruptcy is filed.  The best way to start the rebuilding process is to make certain that you pay all monthly obligations such as vehicle or mortgage payments by the due date.  You may apply for a credit card but only charge what you can afford to pay off at the end of the month.  Avoid carrying a balance on any of your credit accounts from month to month. 

Restoring your creditworthiness will be a slow process.  It will require a commitment on your part to live within your means.

Your future depends on it.

HELPING IN THE LAS VEGAS COMMUNITY

I encourage everyone to give their time and to take any opportunity to make Las Vegas a better community.  There are many wonderful organizations in the Las Vegas area that can use your help.  These organizations are grateful for any assistance, financial or otherwise, that you can provide.  Even though financial donations are beneficial, it is the individual who offers to lend his skills or labor, who offers to listen to and teach a child, or who offers to deliver much needed items that is invaluable to the organization. 

Volunteering is simple.  A minimal time commitment can mean a better life for someone else.  Volunteering is emotionally gratifying.  It is also a great way of meeting caring people and learning new things. 

Every volunteer experience is different.  I have volunteered as a mock judge for local high school debate competitions.  I have helped teach children to read through the Clark County READS program.  Through Habitat for Humanity, I have helped build homes for the needy; dismantled salvage homes scheduled for demolition; and moved donated building materials and office furniture.  The Las Vegas Habitat for Humanity offers for sale donated materials and materials salvaged from homes to be demolished at drastically reduced prices through ReStore, located at 1401 N. Decatur Boulevard, Ste. 35 (southwest corner of Vegas Drive and Decatur Blvd.).  The proceeds are used to build homes for Las Vegas residents. 

Volunteering is a great way to make our community a better place.  The opportunities are endless.  Take a chance and lend a hand!

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