Nowadays most people do some research on bankruptcy before making an appointment to talk to a lawyer.  One common concern is the education requirements for bankruptcy.  People are required to complete an approved course on credit counseling and a second course on financial management.  The courses are specifically for bankruptcy and must be taken from an approved provider.  Fortunately, there are many approved providers online, the cost is nominal ($15 to $20) and providers offer fee waivers to low income individuals.  I suggest www.accessbk.org for people that ask.  Naturally, people wonder if the courses are long or difficult and if there is a test they need to pass.  The short answer is no, you do not need to a pass test but there is a mandatory online chat session at the end of each course.  Here is a general description of the courses.

Credit Counseling – This course must be completed within 180 days before a bankruptcy filing.  This course is a minimum of 60 minutes and is usually taken online.  The online course is an automated e-course that can be taken 7 days a week and 24 hours a day.  The course generally requires you to input an estimate of your household income and expenses.  This estimate is only used for this course and will not be compared to the bankruptcy papers.  The course will offer suggestions about your budget.  You are not required to implement the suggestions.  The course culminates in a one-page certificate of completion.  This certificate is filed with the court as part of the bankruptcy papers.

Personal Financial Management – This is the second course.  This course must be completed after the bankruptcy is filed.  This course is a minimum of 90 minutes and can be taken online.  This is a self-enrichment course and you are free to use the information as you see fit.

No computer?  No problem.  The course can be taken on any computer.  People often use a family member’s computer or go to a public library.  No computer skills?  No problem.  Frequently people ask a friend or family member to help them complete the course.  Alternatively, some providers offer the course by telephone but the cost is usually higher.

At the Law Office of Michael Primus we have helped thousands of clients get out of debt, stop wage garnishments, and start fresh through bankruptcy.  If you live in Contra Costa, Alameda or Solano counties and have debt problems, contact us for a free consultation.  We have offices in Walnut Creek, Antioch, and Hercules.

Served with a lawsuit?  Consider bankruptcy!!! Michael Primus can help.  Getting served with a lawsuit by a credit card company, collection agency, or any other creditor will ruin anyone’s day. Often it motivates people to come see me for a free consultation about filing personal bankruptcy here in Contra Costa County. The trouble is, many people procrastinate after being served with a lawsuit before they consider bankruptcy. People often (mistakenly) think they just need to go to the court on the date shown.  In fact, when a creditor files a collections lawsuit in California, the defendant has just 30 days to file a formal written response in court.  A court date is given on a document called a Notice of Case Management Conference; however, that court date only goes forward if a formal written response is filed within 30 days (including weekends) of the date the person was served. That court date is irrelevant if no response is filed.

So what happens if you have a judgment against you?  Bankruptcy law is federal law and can wipe out most judgments.  That means it’s not too late to file bankruptcy.  You can still discharge this debt provided that you are eligible for either Chapter 7 or Chapter 13, and that the debt was not incurred through some fraudulent act or other reason that might bar it from being discharged.

Call now for a free consultation.  Offices in Walnut Creek, Antioch and Hercules.

Law Office of Michael Primus

In the Bay Area, with all the bridges and corresponding tolls, it is not uncommon for people to amass unpaid Fastrak fines.  Usually, the FasTrak account was opened and set to auto-recharge from a credit card.  The trouble arises when the credit card is declined.  If you whiz through the Fastrak lane without sufficient funds in your FasTrak account, the owner of the vehicle will be fined.   I have seen people use the Fastrak lane without a valid transponder for months or years amassing thousands of dollars in tolls and fines.  Technically the charges are owed to the Metropolitan Transportation Commission but collection is managed by the Bay Area Toll Authority.  In turn, the Bay Area Toll Authority can refer the unpaid fines to the Franchise Tax Board as well as the Department of Motor Vehicles.  The Franchise Tax Board can intercept tax refunds, levy bank accounts or both to collect the money.  More daunting, a person’s driver’s license can be suspended if the charges remain unpaid.  All this creates a confusing maze of governmental agencies to deal with.

Bankruptcy forgives many debts but, at times, the law is unclear about forgiveness of some types of debt.  For instance, the bankruptcy laws forgive governmental claims for reimbursement of actual expenses incurred by the government but have an exception for governmental fines, penalties and some tax debts.  Said another way, if the charge (regardless of whether it is called a ticket, fine or something else) is intended to punish the wrongdoer it will not be forgiven.  If, however, the purpose is to reimburse the government for an expense the charge will be forgiven.   Most courts do not forgive a debt if the governmental claim has a dual purpose of reimbursing an out-of-pocket expense and punishing the wrongdoer.  Parking tickets owed to local government are a common example.  Some courts, including a court in San Francisco, interpret bankruptcy law to forgive parking tickets and related late charges when a bankruptcy is filed.  If the debt is forgiven there is no basis to withhold a driver’s license or vehicle registration.  Other courts may consider a parking ticket quasi-criminal and allow any charges to survive a bankruptcy.

FasTrak is a collection method for bridge (or express lane) tolls.  The question becomes what is the purpose of a Bay Area bridge toll and a related fine for failure to pay the toll?  According to the California Department of Transportation  the bulk of Bay Bridge toll revenues are turned over to the Metropolitan Transportation Commission and then redistributed to BART, MUNI and Alameda County Transit.  Accordingly, it seems tolls are used to reimburse actual government expenses  and therefore would be dischargeable in bankruptcy.   The fine for failure to pay a toll, which is defined as all charges beyond the actual toll(s), appears to be for the purpose of punishing the wrongdoer and reimbursing the government for the costs of collection.  This dual purpose could make that portion of the claim non-dischargeable in bankruptcy.  Looking at it this way results in the actual tolls being forgiven in bankruptcy but the fines surviving.

As of this writing (January 2020) I have routinely seen FasTrak tolls and fines being entirely forgiven in bankruptcy.  Perhaps it is because dividing the claim is complicated and the various governmental agencies want to avoid problems in court?  Perhaps it is because the courts have not developed clear rules regarding FasTrak fines in bankruptcy.  Today, my advice is to list  Fastrak, the Metropolitan Transportation Commission and the Bay Area Toll Authority in any bankruptcy involving Fastrak charges and expect the claim to be forgiven.  Once forgiven any hold on a driver’s license or vehicle registration will be lifted and the claim erased for all purposes.  This is an evolving area of law and is subject to change.

At the Law Office of Michael Primus we have helped thousands of clients get out of debt, stop wage garnishments, and start fresh through bankruptcy.  If you live in Contra Costa, Alameda or Solano counties and have debt problems, contact us for a free consultation.  We have offices in Walnut Creek, Antioch, and Hercules.

References: 11 U.S.C.  523(a)(7),  11 U.S.C. 525(a), California Vehicle Code section 40250 et. seq, Bankruptcy of Thomas, 2007 Bank LEXIS 1320 (Bankr N.D. CA 2007).

According to a recent study by the American Psychological Association, money and finances have remained a leading cause of stress for the past decade regardless of the economic climate.  Lower income households (below $50,000) experience higher stress levels than higher income (above $50,000) households.  Stress can be good, and most of us need some level of stress to feel useful and valuable.  I know the stress of a work deadline or an athletic competition motivates me.  Motivation is great, but according to the study too much stress can alter the brain’s chemicals and lead to depression particularly in susceptible people.

In 2017, the Harvard Medical School updated a 2009 study on depression.  According to this study, there are many possible causes of depression, including poor mood regulation by the brain, genetic susceptibility, stressful life events, some medications, and medical problems.  The study also determined that depression is complex and may be caused by a combination of these factors.

It is common knowledge that medical bills are a cause of bankruptcy, and medical problems are the obvious precursor to medical bills.  We also know – without any formal study –  that financial problems are stressful life events.  Bringing these facts together makes it easy to see how depression and financial hardship are connected.  Anecdotally, I can say I have had many depressed people come to me for bankruptcy.  Sadly, depression is often untreated.  Today there are many resources available including a recent book entitled, “Fearing Nothing,” by Michael O’Brien.

At the Law Office of Michael Primus we have helped thousands of clients get out of debt, stop wage garnishments, and start fresh through bankruptcy.  If you live in Contra Costa, Alameda or Solano counties and have debt problems, contact us for a free consultation.  We have offices in Walnut Creek, Antioch, and Hercules.

References:

www.apa.org/news/press/releases/2015/02/money-stress

www.health.harvard.edu/mind-and-mood/what-causes-depression