State Pension Fund $8.4 Billion Short

February 15, 2013 By

If you’re like us, you hope to retire some day and you worry about how to make that happen.  Today, the Honolulu Star Advertiser’s leading article reports that the state’s largest public pension fund, Employees’ Retirement System (ERS), “is in its worst shape since at least 1980 with an $8.4 billion shortfall.”  However, the state does expect to have the program properly funded 30 years from now if the following conditions: current and new employees must contribute more, the portfolio must average an annual return of at least 7.75%, and people must not live longer than 83 years of age.  These seem like some pretty unlikely conditions to us.

This unwelcome news reminds us of a frequent story we hear from our clients about how they have exhausted all their retirement savings in an attempt to prevent a foreclosure, pay off onerous medical bills, or satisfy aggressive collection agencies.  We wish these clients had come to see us sooner!

Under bankruptcy law, there are exemptions that allow you to protect certain types of your retirement savings while still benefitting from the protections you are legally entitled to receive.  What this means is that it is possible to benefit from a bankruptcy filing without losing all of your hard-earned and carefully saved retirement money.

If you are contemplating emptying your retirement accounts to pay bills, please give us a call first and we will be more than happy to sit down with you for a free consultation to discuss your options.

Filed Under: Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Credit Cards, Debt Collection, Foreclosure

I’m Getting a Tax Refund, How Should I Use It?

December 16, 2012 By

USA Today reported in April 2012 that more than 200,000 American households were expected to use a portion of their 2011 tax refund checks to pay for bankruptcy filings.  Although we have not yet seen any projections for this coming tax season, we expect to see a similar result in 2013.

As you receive your tax refunds and make plans for using it to pay down your debts, we encourage you to check in with Abelmann Law and come in for a free consultation before you take any action.  We can assist you in analyzing the best strategy; you have many options other than just using the money to fill what may seem like a bottomless pit.

Filed Under: Credit Cards, Debt Collection, Tax Refund, Taxes

Bankruptcy Filings Expected to Increase in 2013

November 15, 2012 By

Simply put, rising consumer confidence is leading to households opening their wallets and increasing their credit card and auto loan debt burdens.  This, combined with the expected housing foreclosure pick up, has caused forecasters to predict an 8% increase in bankruptcy filings in 2013.  The following is from usblawg.com:

“Judge Julia Gibbons, chair of the budget committee of the Judicial Conference of the United States, which oversees the federal court system, told a Congressional committee earlier this year that court administrators expect bankruptcy filing to increase by 8 percent or more in 2013.

The court administrators’ projections assume consumer debt levels will start to climb again, resulting in more bankruptcies. Consumer spending increased by 3.3 percent in 2011 after a decline in 2010, according to data released by the U.S. Bureau of Labor Statistics in September. Stronger economic growth forecast for 2013 by Moody’s Analytics, an independent provider of economic forecasting, could make people feel more comfortable about opening their wallets and about taking on new debt.

If housing foreclosures pick up next year with the recovering housing market, then consumer bankruptcies will increase at an even faster pace in 2013, Gibbons predicted.”

Filed Under: Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Credit Cards, Foreclosure

Average Credit Card Debt Rises for Hawaiians in May

June 13, 2012 By

According to data compiled by Creditkarma.com, Hawaiian consumers’ credit card debt rose in May to an average of $7,250.  (Article here) This is an increase on April’s total and is the second highest total in the nation.   Additionally, Hawaii’s upward trend in credit card debt is running against the national downward trend.  Average credit scores in Hawaii also declined from April.

During these tough economic times, many residents of our beautiful islands continue to struggle to make ends meet.  If you are stressed out about rising debt, then please contact us.   We offer a free consultation and will be happy to sit down in a comfortable, pressure-free environment to discuss your options and come up with a plan to get you back on your feet.

Filed Under: Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Credit Cards, Credit Counseling

All Walks of Life

April 7, 2012 By

April 6 brought news that former NFL star defensive lineman Warren Sapp has filed for Chapter 7 bankruptcy protection.  This serves as a good reminder that, contrary to what many of us may have thought, the individuals and families that file for bankruptcy protection come from all walks of life and file for all varieties of reasons, including, illness, death in the family, and accidents.   The protection and the fresh start afforded by bankruptcy allows many people the chance to catch their breath, get back on their feet,  then return to pursuing their financial goals.  You may have heard of the following people who filed for bankruptcy protection:

  • Abraham Lincoln
  • Henry Ford
  • Walt Disney

If you’re stressed out and losing sleep over whether bankruptcy is the right decision for you, then please give us a call at Abelmann Law to schedule a free consultation.  We will sit down with you to discuss your current situation and help you to decide whether Debt Settlement, Chapter 7 bankruptcy or Chapter 13 bankruptcy is a good option.

Filed Under: Chapter 13 Bankruptcy, Chapter 7, Chapter 7 Bankruptcy, Credit Cards, Credit Counseling, Debt Collection

7 Illegal Habits of Debt Collectors

April 6, 2012 By

Along the same lines as our most recent post, we’ve come across this article (click here) entitled, “7 Illegal Habits of Highly Unscrupulous Debt Collectors.”  Again, given the skewed incentives, it should not surprise any of us that Debt Collectors will push the envelope of legality in an effort to get you to pay them money.  The reality of the situation is that they are repeatedly crossing the line.  Though you may owe money, you do have rights.  We suggest that you take 5 minutes and read the article – it’ll be worth your time.

If you are being harassed by Debt Collection agencies then you should call Abelmann Law to schedule your free consultation with an attorney.  We will go through your bills with you and review your options, which may or may not include Debt Settlement, Chapter 7 bankruptcy or Chapter 13 bankruptcy.

Filed Under: Chapter 13 Bankruptcy, Chapter 7, Chapter 7 Bankruptcy, Credit Cards, Debt Collection

Average auto debt in Hawaii drops one percent over last month

March 14, 2012 By

Creditkarma.com today released  its U.S. Credit Score Climate Report with trend data for February 2012.  The report shows that Hawaii was one of only three states to pay down average auto loan debt since last month, by one percent to $15,693.  Two other states increased their average auto loan debt by seven percent.

The report also appears to show that a correlation exists between states with the least amount of credit card debt and the lowest average credit scores.  Credit card debt as a whole is down 15 percent year-over-year.  We can theorize that Chapter 7 and Chapter 13 bankruptcies are affecting these statistics, as our own office average in Hawaii tends to reflect around $40,000 as the average  dischargeable credit card debt.

Creditkarma.com provides free credit scores and access to free credit monitoring.  It also contains useful tools for individuals to find ways to improve their credit score and make their finances more efficient.  We often recommend its use along with another helpful site, annualcreditreport.com.  This site allows you to obtain a free credit report from each of the three main credit bureaus (Experian, Equifax, and TransUnion) once in a twelve month period.  If you stagger your reports by ordering one every four months, you can keep pretty good track of your credit at no cost.

Filed Under: Auto Loans, Credit Cards

Average credit card debt in Hawaii drops 11 percent since 2011

February 12, 2012 By

A year-on-year comparison of the month of January shows that average credit card debt in Hawaii dropped 11% to $7,524, according to a report from creditkarma.com.  An article in the Pacific Business News reviews further statistics on Hawaii residents’ mortgage debt, credit scores, auto loan debt, and student loan debt.

These statistics are telling – in our everyday interaction with individuals and families here in Hawaii, we find that people are suffering from increased debt loads and a decreased ability to service that same debt.  One way to determine whether you are in need of a Chapter 7 bankruptcy or Chapter 13 bankruptcy is to organize a budget.  Set out all of your income – salary, business, social security, pension, family contributions, etc.  Then list out your fixed costs – mortgage/rent, car payments, insurance, etc.  Then add in your variable costs – utilities, gasoline, food, clothing, entertainment, etc.  If your outflow/costs exceed your inflow/income by a significant amount, and you don’t expect much to change in the near future, it may be worthwhile to consider whether bankruptcy is an appropriate solution to help you get a fresh start in your finances.

There are quite a few resources available virtually, such as online credit counseling services provided by Abacus, or in person in Honolulu, with services like Consumer Credit Counseling Services of Hawaii, that can help you to create a budget and analyze whether you need assistance with your debt.  You can also call us now at 589.1010 to set up a free consultation with our Hawaii attorneys.

Filed Under: Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Credit Cards, Credit Counseling