Starting Over Financial Blog: Moving from Financial Crisis to Financial Empowerment

We’re Moving!

Well folks, the time has come.  Now that I’ve gotten my feet wet in this “web based reality” that we live in, I have upgraded my website and am working on creating a centralized “hub” of information.

This “hub” can now be found at www.nycdebtandbankruptcylaw.com.  (Don’t worry, you if you are used to typing www.danielfavorslaw.com – you will be redirected to the right location.)

So while this blog site will no longer be updated, you can follow along with our usual cast of characters and new blog articles at www.nycdebtandbankruptcylaw.com/blogpage.

We’ll check in with Brandon and Bonita Big Spender, see if Malika Mail Avoider had any response to her collection letters, find out if Tasha Professional ever figured out the difference between income and wealth and much more.  We’ll meet new characters and read more tips on how to keep your sanity while the rest of the economic world falls apart.

My hope is that the new site will allow you to have a centralized location for news and updates designed for communities of color in the world of personal finance and financial distress.  Check in often for upcoming free e-courses and articles designed to empower you and your financial situation. If you need some immediate attention, you can click here for help with debt collection abuse and here for help deciding if bankruptcy is right for you.

Remember – financial distress is not your destination. It is only a stop on your road to financial empowerment.  See you at the new site!

Start Over & Leave Your Debt Behind: The New York Consumer’s Guide to Eliminating Debt Through Bankruptcy & Creating a Happier Financial Life

Start Over & Leave Your Debt Behind: The New York Consumer's Guide To Eliminating Debt Through Bankruptcy & Creating a Happier Financial Life

You asked me questions about your finances.  I listened and provided information in blogs and articles.

You asked me follow up questions.  I listened some more and gave away more information in blogs, articles and community forums dedicated to helping you address financial crisis management.

By the time you asked even more questions, I realized that we have a full-scale “financial crisis knowledge gap” raging across our community.

Many of you may recall the proverb that says the “people are destroyed for lack of knowledge.”  The same is true in the area of finances. Lack of knowledge is keeping communities of color trapped in financial distress.

Out of that process came the idea for this book: Start Over & Leave Your Debt Behind: The New York Consumer’s Guide to Eliminating Debt Through Bankruptcy & Creating a Happier Financial Life.

It is a free book.

No, I did not stutter.  The book is free and available for download at a computer near you.  Right now.

Download it.

Read it.

Digest the information.

Come up with some more questions and follow the steps inside so you can do some homework on your current financial situation.

After reading it, if you find that you need to have a talk with someone about your financial distress, give me a call.

I do not charge for consultations and believe that a consultation can provide the additional information you need in order to make an informed, rational and proactive decision about bankruptcy and your finances.

Recent figures from the Census Bureau show that the percentage of Americans struggling below the poverty line in 2009 was the highest it has been in 15 years. Various interviews with poverty experts and aid groups said the increase appeared to be continuing this year. Nearly four million additional Americans found themselves in poverty in 2009.  The total number of Americans living in poverty now reaches 44 million, or one in seven residents. Millions more were surviving only because of expanded unemployment insurance and other assistance.

Don’t be a statistic.  Get the book.  Read it. Share it with others http://www.freenycbankruptcybook.com

Call or email when you are ready to talk.

Bankruptcy is not for everyone.  But if you read this free book and think it might be right for you, my number is: 646.421.6579.  You can also reach me via email at info@danielfavorslaw.com.

Remember – knowledge is power.  Take the time to empower yourself today.  You, your family and your financial future will thank you.

Best of luck,

Lurie

photo credit: http://www.dreamstime.com/wavebreakmediamicro_info

Kevin Powell. Confronting His Finances & Leading By Example.

This is one of the recent finance related events that I have been eager to blog about.

For the Brooklyn readers, you will probably know the name Kevin Powell already.  Kevin is currently running for congress for New York’s 10th Congressional District for the United States House of Representatives.  This district covers a bunch of Brooklyn neighborhoods, including: East New York, Canarsie, Bedford-Stuyvesant, Cypress Hills, Clinton Hill, Ocean Hill, Bergen Beach, Midwood, Flatlands, Downtown Brooklyn, Boerum Hill, Starrett City and Fort Greene, as well as parts of East Flatbush, Williamsburg and Brownsville. You can find out more about him, his platform and his history at www.kevinpowell.net.

Now, why is a blog dedicated to helping people learn the tools they need to take control of their financial life, blogging about a candidate for U.S. Congress? The answer is simple. Kevin recently wrote an article called Kevin Powell’s Financial Life. And Yours Too.

And believe me – it is a great read.

Essentially, Powell used the article to pull back the veil on his finances after being attacked by his opponent and some in the media for having financial debt and owing taxes. Powell’s post starts with a reference to the scripture that says “You shall know the truth and the truth shall set you free.” What follows is a riveting account of how personal finances and the lack of economic knowledge can plague even those on the front lines in our community.

Read the rest of this entry »

Start Over & Leave Your Debt Behind: The New York Consumer’s Guide to Bankruptcy and a Happier Financial Life

The beautiful, hot, summery vacation days of August are gone and the kids are back in school.  The days are getting cooler and shorter and this morning I swear I felt a breeze of fall wind.  Sigh…it is bitter sweet indeed.

This blog has been on hiatus for the past three weeks but that does not mean that the world of personal finance, or the present financial crisis, has stopped. In fact, there have been a number of developments that I plan to address over the course of the next few blog posts.  However, there are a few things I am very excited about that I want to bring to your attention right away.

Who Said Education Can’t Be Free?

The first item on my list is a pet project that I have been working on to present to the community.  Many of you have sent in questions about personal financial crisis issues and bankruptcy via email and the Starting Over Financial Blog.  While my goal is to answer every question individually, it soon became clear that there is a huge ENORMOUS gap in information (not to mention the misinformation) about bankruptcy that is written with communities of color in mind.

Soo…For that reason…

I just wrote a book about bankruptcy designed to help fill that gap.

And yes, I am very excited about it.

But do you want to know the best part of all?

The book will be offered as a free – yes FREE – download starting next week!

That’s right folks – next week, you will be able to download my free e-book:

“Start Over & Leave Your Debt Behind: The New York Consumer’s Guide to Bankruptcy and a Happier Financial Life.”

My prayer is that this book will fill in some of the missing pieces of information about debt, financial crisis and bankruptcy and will speak in terms that are relevant to communities of color.

Who Said Continuing Education Can’t Be Free?

In addition to the e-book, I am also looking forward to presenting a FREE E-Course on stopping bill collection harassment! Frequent readers will recall that I spend a lot of time talking about bill collection abuse and how to fight back.

Well in the next few weeks, I will begin to roll out an e-course that will go more in depth on key topics like: 1) What to do when you receive harassing collection calls; 2) How to handle threatening letters sent by bill collectors; and 3) What to do if you find out you’ve already been sued, and much more.

Those of you who know me from other projects and community-based programs probably won’t be surprised by this.  But if you are “meeting” me for the first time on this blog – you may be asking yourself, “now why on earth would an attorney just give away information for free?”

Well there are a few reasons actually.  The first is that I believe to whom much is given, much is required.  Those of us in the community who have been blessed have a responsibility to give back and support those who are less fortunate.

But that is not the only reason.  Quite frankly, as an attorney, it makes my job easier when potential clients come to my office already possessing a basic level of information about financial crisis issues.  It makes the attorney/client relationship flow much more smoothly and allows the potential client to be even more empowered going forward. And empowerment is the key.

Sure, I could work like many attorneys and provide legal services that stop once your bankruptcy is filed or your lawsuit is over.  But that does not leave the community in a better position.  It is only when we are empowered that the entire community can benefit.  So yes.  Some attorneys do care enough to give away some knowledge for free.  It makes us all better off.

Who Said Lawyers Don’t Give Information Away?

Over the course of my legal career, I have been blessed to work with and learn from some really great people.  Some of the bankruptcy attorneys I respect a great deal have just launched a website that I think you need to know about.

www.moneyhealthcentral.com is a new website that “seeks to give you realistic solutions and ideas to keep you out of debt, get you out if you’re already there – and help you stay financially healthy.” The site was started by a group of veteran bankruptcy attorneys from across the country who are dedicated to helping to educate the American consumer about debt.  Please check out the site and learn all you can about how to prevent – or escape – a financial crisis.

So that is it for now.  I have a number of posts in the works that I think you will enjoy and which I hope will be empowering.  And remember – next week be on the look out for the link to download the free e-book!

Debt Settlement Companies: Selling Pipe Dreams to People in a Financial Nightmare

It All Starts with the Commercial

I’m sure you’ve heard the commercials and radio ads.  They sound something like this:

“If you are at least $10,000 in debt, you are eligible to consolidate your debt! Call 1-800-EraseMyDebt to find out how we can cut your credit card debt in half!”

As an attorney representing consumers who are facing financial troubles – these commercials really grate on my nerves.  The ads are so prevalent that it can be difficult to show clients and the general public just how debt settlement companies work.  They are often one step above the neighborhood burglar.

Read the rest of this entry »

Credit Score! What Have You Done For Me Lately? Ooh Ooh Ooh Yeah!

A lot of readers will recognize the title of this post. It was inspired by hit singer Janet Jackson’s popular song entitled: What Have You Done For Me Lately?

The song describes a love interest that used to be attentive and offered up the world.  However, in the lyrics we find that the relationship has soured and now those promises and gifts of yesterday are no more. After remembering how good times used to be and evaluating the history of the relationship, Jackson asks a poignant question:

What have you done for me lately?

That’s pretty much how I feel about credit and the drive to increase credit scores so that you can get more of it by any means necessary. More after the jump.

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Brandon and Bonita Make a Mental Money Shift

You can read Part 1 of this series here.

Small Changes…Slow Progress

Brandon and Bonita Big-Spender realized that their time was running out.  They had already tapped their relatively small savings and had quickly moved onto using their credit cards to help them stay afloat in the short term.

Brandon found a part time job tutoring high school and college students and Bonita tried to work as much overtime as possible.  But they still did not make enough money to pay their bills and get their spending under control.

You see even though the Big-Spenders had changed certain spending behaviors after Brandon lost his lucrative job – they never changed their mentality with regards to money.  For example – after Brandon was laid off, the Big-Spenders cut some of the obvious big-ticket spending items out of their budget.

They weren’t taking lavish vacations and they down graded from using the expensive luxury gym and began working out at the local YMCA.  Bonita increased the amount of time in between her hair appointments and they both ate at home more frequently instead of eating out.  Yet, they found that even though some of their behaviors had changed – they were barely scraping by.  And their stress was mounting.

Read the rest of this entry »

Mr. and Mrs. Big-Spender Meet Reality

Brandon and Bonita Big-Spender were the “stars” in their respective families. They were each first generation college graduates and enjoyed the fruits of hard work and discipline.  As opposed to falling victim to some of the pitfalls of America’s urban environments, Brandon and Bonita excelled at school and married shortly after their college graduations.

The Big-Spenders seriously enjoyed living the good life. Brandon’s job on Wall Street paid very well and Bonita earned a great salary as a physician’s assistant.

Proud of their accomplishments, the Big-Spenders paid little attention to the fact that they had not accumulated any real wealth.  With eyes that glazed over as they read the numbers on their paychecks, the Big-Spenders went about spending their way to the life they had always dreamed of as youth.

For this couple, payday was a mini-holiday because it signified the ability to buy more things. Whether it was cars, clothes, accessories, you name it, the Big-Spenders knew how to put their cash to use.  They saw each dollar they earned in income as an opportunity to shop and buy more of the items they wanted – and quite frankly felt they deserved. They were by no means selfish, however.  They spent their money almost as freely on their respective extended families and friends as they did on themselves.

Spending money gave them a short-term rush and feeling of power.  It made them feel good and important. The temporary joy they felt when trying on new clothes, test-driving a new car or taking another vacation was fantastic.  Having grown up in environments largely defined by the sheer lack of resources, the Big-Spenders used their adult earnings to feed their childhood insecurities.

Then the first shoe dropped.

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Five Times As Many Homeowners Kicked Out of Plan To Slow Foreclosures As Were Granted Relief

We thought this post from the Huffington Post was particularly disconcerting.  We also thought it was timely as we are attending a program on defending homeowners in foreclosure today.

According to the article:

Nearly 155,000 homeowners were bounced from the administration’s Home Affordable Modification Program in May versus about 30,000 who were offered new temporary trial plans of lower monthly payments.

The program started nearly 16 months ago and was intended to help 7 to 9 million families restructure or refinance their mortgages so that they could avoid foreclosure. However,

nearly 436,000 homeowners have been kicked out of the centerpiece of the administration’s $75 billion plan to help distressed borrowers, while only about 340,000 homeowners have received permanent relief.

Much thanks to the New York City Bar for offering today’s program on foreclosure prevention. Looking forward to learning more about helping homeowners find some relief – as it is obviously very much needed.

Have you noticed the impact of foreclosures in your neighborhood? How is this crisis impacting your community? Sound off in the comments and let us know how the growing number of foreclosures is shaping lives in your area.

How Malika Mail-Avoider Fought Back

(For new readers, see Part 1 of this installment)

Malika Mail-Avoider decided she had had enough.  She gathered up all of her un-opened mail and began sorting out the bills.  This was no easy task.  She had been ignoring the mail for so long that it took some time to figure out what each bill collector wanted.

She started by looking at the dates of the letters and realized that with some of the bills, she was still within the 30-day window to demand her verification rights! She felt a small ray of hope. But then she realized she did not know what to do next. Should she call the collectors and ask for verification? (No.) Should she wait for them to contact her again? (Definitely not.)

Malika needs to pull out a pen and paper or find a computer where she can write/type a letter that requests verification. Why is this? Because while Malika could request verification over the phone – how will she ever prove that she did? More importantly, under the statute, her request must be in writing. While she could wait for them to call again – if they call after the 30-day window then Malika looses out on some key rights.

There is no “one” correct way to request validation. The letter Malika needs to write could be as simple as this:

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