Bankruptcy Chapters

The good news is that the Social Security Administration has announced that next year, for the first time since 2009, there will be a cost of living adjustment in Social Security benefits in the amount of 3.6%. As a Massachusetts bankruptcy lawyer, I often get asked: can the Massachusetts Bankruptcy Trustee take my Social Security Check? Does Social Security get factored into the Means Test in Massachusetts?

First, let’s review why there is a 3.6% increase coming. 55 million people will get the Cost of Living Adjustment (COLA) in their Social Security check starting January 2012. Approximately 8 million Supplemental Security Income (SSI) beneficiaries will get the same increase in benefits. Since 1972, this there have been COLA adjustments, based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers from last year’s third quarter to this year’s third quarter. It is the US Bureau of Labor Statistics, in the Department of Labor, that determines the CPI-W. For the last two years, as many of our Massachusetts consumer clients know, there was no increase in CPI-W, and therefore, no increase in the cost of living adjustment in their monthly Social Security checks.

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Tags: Security, Social Security

In a down economy, finances can be tight  and people may be interested in the options that they have. Bankruptcy may be the best way for you and your family to get back on the right track.

According to the American Bankruptcy Institute, personal bankruptcies are down eight percent across the country. There are two different types of personal bankruptcy, Chapter 7 and Chapter 13.

Chapter 7 bankruptcy is the most common type of personal bankruptcy and it works to liquidate property owned by the debtor and it is distributed to creditors by bank trustees. Chapter 7 does not include a repayment plan. Chapter 13 bankruptcy occurs when the person filing for bankruptcy has a steady income and makes a plant to repay all of their debt.

Tags: Bankruptcy, Bankruptcy Filings

Think all secured credit cards are the same? It’s ok, you can admit it. I mean, it’s a natural assumption; they all require minimum security deposits of around $200, the exact amount you put down equals your credit line, you get back your deposit minus any outstanding balances when you close your account, and so on and so forth. Interestingly though, a new study helps complete the picture and reveals some important differences between secured credit card issuers.

Overview & Application RequirementsThe first thing you need to know is that not all banks or credit card companies offer secured credit cards. In fact, only 62% of the issuers investigated in the study do. What’s more, there are some minimum requirements for approval that all issuers must abide by. Some are going to seem familiar, others may be a surprise:

• You need to place a security deposit (min. and max. deposits vary by issuer)
• You must have a Social Security Number and complete an application with accurate information
• Your income and assets must be greater than your monthly financial obligations, including the minimum payment you will be required to make for your secured credit card. This

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Tags: Cards, Credit Cards, Secured Credit, Secured Credit Cards

Sterling Energy Systems Inc., a manufacturer of solar-power equipment, recently filed for Chapter 7 bankruptcy.  The company is based in Scottsdale, Arizona.

Executives with Sterling Energy Systems say that rising costs, low demand, and trouble raising funds has hurt their business.  Sterling reportedly tried to find a buyer, but did not find anyone and decided to file for bankruptcy instead.  Under Chapter 7 bankruptcy, the company will be able to eliminate their debts.

The company’s Chapter 7 filing lists between $1 million and $10 million of assets and between $50 million and $100 million in debts.

Several other solar-power companies have recently filed for bankruptcy as the industry struggles.

If you or someone you know has questions about being eligible to eliminate your debts through Chapter 7 bankruptcy, contact the Birmingham Chapter 7 bankruptcy lawyers of Greenway Law, LLC by calling 205-324-4000 today.

Tags: Equipment, Equipment Manufacturer

Even in today’s specialized legal world, there are still some “general practice” attorneys who work in many different areas of the law. A general practice attorney may represent clients in family law like divorces with little or no property, minor criminal issues, small land disputes, small probate estates, low dollar personal injury cases, and the like. While a general practice attorney can successfully represent clients in many legal matters, some areas of the law require a more specialized knowledge.

From the outside, a bankruptcy case seems like a simple process. You attend a couple education classes, there are standardized forms that are filled out, you pay a filing fee, and finally go to a meeting with the bankruptcy trustee. Simple, right? In some cases it is that easy, but don’t let bankruptcy’s streamlined process fool you.

Bankruptcy is a mixture of state and federal statutes, case law, procedural rules, and court and creditor customs. General practice attorneys are just not as familiar with these various rules and practices. An experienced bankruptcy attorney is also able to identify problem areas, like preferential payments to creditors or equity issues, which could have serious consequences to your bankruptcy case. Even the

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