The following questions and answers were submitted to 713Training.Com either at a teleconference or by email during this past week. The best of the best were chosen to be published below. The answers are provided by Victoria Ring who is not an attorney. Therefore, the information provided in this material is for training purposes only and no whole or part should be regarded as legal advice.
DEAR VICTORIA
If the only debt the debtor has is arrearages on the mortgage, can the arrearage be cured over a 5 year period or is a 3 year repayment plan required? At 3 years, the payments are too high. At 5 years, they can afford it. I think years ago arrearage on mortgages used to have to be cured in 3 years. Is that not the case now? From all of the literature I have read a 5 year repayment would be ok. Help!!!
ANSWER
It depends on the ability of the debtor to repay the arrearage. If they can pay them off in 3 years at 100%, you may wish to propose a 3 year plan. However, you cannot propose a 3 year plan at 99% or less. Instead, this would need to be a longer term to meet the 100% requirement for Chapter 13 Plans under 5 years in length. But, if the debtor is unable to pay 100% of the arrearages with interest within the 5 year maximum, the proposed Plan can be lowered to as little as 2% depending on the debtors ability to pay and the local rules of the court. However, as you are aware, every bankruptcy petition is unique and different strategies apply to different cases.
DEAR VICTORIA
I have a client with three vehicles titled in their name. One vehicle is used solely for the debtors trucking business. Can I exempt $6,750.00 from truck under California 704 exemptions as tools of trade?
ANSWER
I have found that many things are accepted in California that is not accepted in the majority of other states. I personally have never used the “tools of trade” exemption for a motor vehicle. It is my understanding that it is considered a motor vehicle instead of tools of trade. However, if you interpret the exemption to include motor vehicles, go ahead and try it. However, to be on the safe side, this is a question you really need to ask a California bankruptcy attorney since they would be more familiar with local rules of your state. Let me know what happens and I will pass the information on to others.
DEAR VICTORIA
I looked on the website and did not see any other workbooks. What I was wondering is if you have any more practice petitions that I could get my hands on? I would not mind even sending them to your staff to grade and you charge me for the work, just like your service you have for when we have a real petition to have checked over. I really feel that I just need to keep doing more over and over. I think I am starting and feel comfortable. Let me know if you can help in anyway.
ANSWER
I have had several requests for this from others so I am in the process now of putting together practice petitions for people like you for training. The problem I have is that today I mainly do petition reviews and amend petitions because of problems. Therefore, I normally never do a bankruptcy petition from start to finish and do not have all the components needed for to create practice petitions. This is why the project is taking me so long to compile and I apologize for the delay.
In the meantime, print out an entire bankruptcy petition and read the legal documentation (especially the Statement of Affairs pages). Highlight anything you do not understand and bring the questions with you to the next seminar or contact NAVBA members at www.navba.org and offer to pay them for their time to help you.
Note: NAVBA members are busy people. Either they are busy building their VBA business or they are busy doing petition work for attorneys. The members enjoy helping others, but you cannot expect to call them and expect a lot of free conversation and advice. If you talk more than 5 minutes in an initial telephone conversation with a NAVBA member, you need to offer to pay them for their time and schedule an appointment to meet during a time they are not in the heat of working.
For those of you who would like to have a petition reviewed and receive private training in how to improve your skills, visit:
http://www.713training.com/shop/cart.php?m=product_detail&p=86
DEAR VICTORIA
I just signed up an attorney that specializes in Personal Injury. He has occasionally done Bankruptcy’s but not a lot of them. He is going to start seeking more BK business so I can do the petitions. Anyway, I just wanted to let you know I enjoyed the class and also all the information you send us NAVBA members.
ANSWER
You bring up an excellent point. All areas of law are suffering right now in one form or another. The only type of law that is growing by astronomical figures is bankruptcy. Therefore, all attorneys are worth marketing to at this point in time. I am glad you found that information on your own and will continue marketing to other attorneys.
For those who need some really good marketing information that is guaranteed to help you:
Ebooks:
http://www.713training.com/shop/cart.php?m=product_detail&p=88
http://www.713training.com/shop/cart.php?m=product_detail&p=36
Training Video:
http://www.713training.com/shop/cart.php?m=product_detail&p=94
DEAR VICTORIA
I have a web site up and running but I do not feel confident enough to start marketing yet (although I have all the materials and strategy set to go). I know that first impressions are crucial and so I want to be a completely competent VBA before I solicit business from potential attorney clients. Your suggestion of an internship/apprenticeship sounds like the perfect next step for me on my way to creating this business. Do you think I should try to work with another more experienced VBA who needs some back-up help? Or do you think I should contact an attorney like the gentleman you mentioned, Art Houseman? Perhaps both? How can I get in touch with them? Any advice that you can offer would be greatly appreciated.
ANSWER
First of all, if you wait until you feel completely confident, you will never grow your business. Bankruptcy is like learning how to swim. You will never learn how until you jump in the water. I do not want to give you advice on what marketing methods to use because I have not performed an analysis on your goals and expectations. Only you know that information. Therefore, I suggest doing whatever you feel comfortable in doing. Just jump in the water, try everything you can, and see what works. Being in business is like playing the lottery. Sometimes something will work and other times it will not. An old saying that is still true today: Failure is the only means to bring success.
DEAR VICTORIA
I read an article you wrote and you were talking about an “employee mindset.” What does that mean?
ANSWER
Many employees do not understand what when a company spends money on them, that employee needs to generate that revenue back, plus make a profit in order for them to keep their job. Employee minded people look at their employer the same way a child looks at its parent. The employee centers their whole life and existence around their employer and they do not understand that they must create a profit for the company or they lose their job. When it happens, the employee is devastated; especially when it comes through no fault of their own.
This is OLD SCHOOL methods that were implemented between 1920 and 1990 when employers wanted to build huge companies and expand outside the US. Prior to 1920, most people owned their own business and provided products and services they developed from their minds and their bodies. Today, this is the only way to survive but most people have been programmed to think with an “employee mindset.” But there is hope; as it requires training to break out of this mold.
I strongly urge you to research methods you can use to break out of this mold and learn basic skills in building a business. Below are a few links to help you get started:
Go to the video search engine of Google:
http://video.google.com/
Type in the search words: start business
Also type in the search words: service business marketing
Watch some videos and learn a wide variety of skills from different business owners.
DEAR VICTORIA
Thank you so much for your efforts to protect all from these scam artists. Although I find it hard to believe anyone could be so gullible as to send that information to ANYONE, the facts are that people fall for this type of thing all the time. In fact, senior citizens are the most vulnerable, because they come from an era where people were more honest.
For those who do have credit cards, they should know that if they receive something like this, they should go to their credit card statement, get the customer service phone number, and call the company, who will quickly tell them its a scam, and also will inform the company that such a scam is being perpetrated on their customers in their name.
Thank you again for caring . . . And you are so smart to have never gone the “plastic” route . . . I am on my way to becoming debt free and once there, will never again go down that path. Hard lessons to learn!
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