Hawaii Bankruptcy Attorney

The Student Loan Debt Bomb

Chris Rollins — Thu, 19 Apr 2012 01:48:09 +0000

We probably don’t have to tell you that it’s expensive to put yourself or a loved one through college. Student loan debt has increased steadily to where we’re now seeing undergraduates averaging more than $23,300 in debt at graduation. This is in addition to the average of roughly $3,000 in credit card debt for each college student. If you consider the above, then take into account the fact that average income has declined or held steady over the past several years, it doesn’t take a math major to figure out that there is a problem at hand.

The Baltimore Sun recently published an article pointing out that student loan debt now exceeds credit card and auto loan totals. (Click here for the article) Millions of Americans are struggling to make ends meet as a result of high student loan payments. ”Just as the housing crisis has trapped millions of borrowers in mortgages that are underwater, student debt could very well prevent millions of Americans from fully participating in the economy or ever achieving financial security,” testified Illinois Attorney General Lisa Madigan on March 20 before a U.S. Senate judiciary subcommittee.

Although student loan debt is not dischargeable in bankruptcy except in very extreme circumstances, Abelmann Law also specializes in debt counseling and finding creative solutions to your financial worries. Please call or email to schedule a free consultation.

Deserving local family saved from foreclosure

Rick Abelmann — Wed, 11 Apr 2012 06:13:41 +0000

Recently we helped a client who was in a very difficult situation – he was trying to stop the foreclosure process threatening his home, while at the same time caring for his ailing wife who is terminally ill. Doloroso Dumlao was being forced to choose between spending his last days with his wife and using all of his time filling out forms and coming to our office. Calls to his lender, Citimortgage, seemed to be ineffective – I spent hours going around in circles just trying to get representatives to understand that his wife was physically unable to sign a power of attorney, affidavits, or any of the loan modification application forms due to her illness. We were trying to help Mr. Dumlao avoid having to file Chapter 13 bankruptcy, as the mortgage was his only real debt.

After contacting several different people at Citi, in the financial services industry, and in the media, we received the good news this morning that Citi had temporarily halted the foreclosure process and would continue processing Mr. Dumlao’s loan modification and other loss mitigation options, allowing him to rest easy with his wife for the last days of her life. The news story is here by Tim Sakahara of Hawaii News Now.

Bankruptcy is not always the best, or even the only option. We firmly believe that quality bankruptcy attorneys will explain and help you pursue all of your options – not just the ones you think might work. We are hopeful that the Dumlaos will be able to have peace during the next few weeks as they struggle through this stage of their lives. We wish them our best and stand by ready to assist should the need arise. If you or your loved ones are in financial distress and want to discuss options, please feel free to contact our office to set up a free consultation.

Family fights terminal illness and foreclosure

All Walks of Life

Chris Rollins — Sat, 07 Apr 2012 00:46:33 +0000

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.

7 Illegal Habits of Debt Collectors

Chris Rollins — Fri, 06 Apr 2012 04:03:53 +0000

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.

Collection Agencies Win Free Trips by Harassing Borrowers into Unreasonable Terms

Chris Rollins — Tue, 27 Mar 2012 01:41:03 +0000

On March 25, Bloomberg.com published a troubling report detailing the incentives offered to collection agencies attempting to collect on delinquent debts. While it should come as no surprise that collections agencies are pushing the legal limits with their methods, at Abelmann Law we find it particularly concerning that the agencies are failing to advise individuals of the various repayment options available to them. In many cases the result is increased financial hardship for families that are already struggling under a heavy debt burden. Meanwhile, “successful” debt collection agents are rewarded with cash bonuses, foreign trips and gift certificates.

While the above-mentioned report focuses on debt collection practices in the student loan industry, we think you will agree that the problem does not end there. If you are being hounded by creditors, we would like to talk to you about your options. Bankruptcy may not be your best option, but we will be more than happy to tell you this and provide counsel with respect to your other options. If bankruptcy is the answer, then we are here to discuss Chapter 7 and Chapter 13 bankruptcy with you and assist in making this very important decision to get back on your feet with a fresh start.

Average auto debt in Hawaii drops one percent over last month

Rick Abelmann — Wed, 14 Mar 2012 17:56:58 +0000

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.

Hawaii bankruptcy filings drop 22% since February of 2011

Rick Abelmann — Thu, 01 Mar 2012 18:10:44 +0000

Statistics by the United States Bankruptcy Court for the District of Hawaii covering February 2011 filings have been released, showing an overall 22.2% decrease in the overall number of filings from the same month last year. At 224 bankruptcies filed in February 2012, we are trending back to the levels previously seen in 2009, which still well exceed filings during 2006-2008. Chapter 7 bankruptcies in all islands decreased by 27.4% over February 2011, and Chapter 13 bankruptcies decreased by 8.6% over February 2011.

A breakdown by county shows that Oahu bankruptcy consistently accounts for nearly 60% of all bankruptcies filed in the State of Hawaii, followed by Maui County, Hawaii County, and Kauai County in order of volume.

The number of bankruptcies filed during any given month is influenced by many factors, including the overall health and direction of the economy, availability of funds to retain a bankruptcy attorney and to pay filing fees, tax refunds, holidays, and whether foreclosures are being processed by lenders on defaulted properties.

Wrongful Foreclosures Still Occurring

Rick Abelmann — Wed, 22 Feb 2012 06:30:22 +0000

A survey published in February 2012 by three consumer-protection groups shows that “mortgage servicers continue to initiate foreclosure proceedings improperly, either while a homeowner is awaiting a loan modification or due to improper fees or payment processing.” The three groups are the National Association of Consumer Advocates (NACA), the National Consumer Law Center (NCLC), and the National Association of Consumer Bankruptcy Attorneys (NACBA).

Unfortunately, the results of this survey are consistent with what we find here in Hawaii – many homeowners are trying desperately to obtain loan modifications or stay current on their payments, and are finding that the loan servicers completely ignore such attempts while pursuing foreclosure, forcing such homeowners to seek protection by filing bankruptcy. The results show that about 85% of the attorneys representing homeowners awaiting loan modifications under HAMP see foreclosures occurring during that time.

While Act 48 temporarily stopped many foreclosures in Hawaii, most of the servicers have converted their foreclosure processing into judicial foreclosures, sidestepping the remedies set up by the legislature in Act 48 and continuing to reflect the problems with the dual-track system of pursuing loan modification discussions and foreclosure processing simultaneously.

Many of our clients are using Chapter 13 bankruptcy to stop foreclosure and ensure that sufficient time is allowed for their loan modification applications to be processed. A stepped Chapter 13 plan can often provide the time necessary for a homeowner to get a real chance at having the loan modification application considered properly, and can also provide a means for the homeowner to catch up on arrears over a five year timeframe.

We are working on awareness of this issue on a state and national level so that policymakers may address this along with other problems plaguing our housing market.

Average credit card debt in Hawaii drops 11 percent since 2011

Rick Abelmann — Sun, 12 Feb 2012 07:00:58 +0000

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.