Bankruptcy Reform 7 years later. A friend reminded me that October 17 was the anniversary of the effective date of the “Bankruptcy Reform” act. Then-President George W. Bush signed the law earlier, but most parts of the law became effective October 17, 2005. Some things have changed greatly, some things have not. Frankly, the changes have been less horrible than many of us (including me) feared. Bankruptcy has become more complicated, and therefore more expensive. For instance, I now have to gather up paystub information for the prior six-plus months, and complete a form called a means test. Very fortunately, if the result is “under median”, we only have to complete two or three of the multi-page form. Another change has been the requirement to get pre-bankruptcy credit counseling from an approved counseling agency. Because that was relatively unusual back in 2005, we thought that would be a substantial impediment to clients being able to file. However, a whole new industry seems to have grown up to provide credit counseling on-line or by telephone. There are probably at least forty such counseling companies who are approved in Minnesota. What has not changed is that clients are still in a lot of pain when they come in; what has not changed is that people tend to throw in all their financial reserves in an effort to avoid having to file; what has not changed is that people are very reluctant to file a bankruptcy. On that “happy” note, I will close this post; however, I add that I am grateful that despite the best efforts of the credit card industry, which lobbied so hard for the 2005 law change, the bankruptcy law still generlaly works so that I can still help people shed their financial “millstone”.
Source: blogspot.com
Video: Before Filing for Bankruptcy: Myths and Misconceptions
Tully’s Coffee Shops’ parent files for bankruptcy in Seattle
TC Global, Inc., the Seattle-based company that operates Tully’s Coffee Shops and markets its branded coffee, has filed for Chapter 11 protection in the U.S. Bankruptcy Court in the Western District of Washington. In the federal filings, the company estimated its liabilities totaling $3.7 million, including $2.6 million in unsecured debt. The company also listed $5.9 million in personal property. The company said increased commodity prices and existing leases helped lead to the decision to close a number of its stores with lower sales. The company did not say exactly how many or which stores will close. It aims to reorganize by getting new capital, cuttings its budgets and dumping stores with high leases. Tully’s operates six coffee shops in the Portland area, including one in the Clackamas Albertsons and four others in Fred Meyer stores located in Scappoose, Vancouver and Gresham. The company operates two other free-standing stores in Vancouver. The bankruptcy doesn’t affect Tully’s wholesale (the bagged coffees found in grocery stores or in other coffee shops) and online business, which Green Mountain Coffee Roasters, Inc., bought for $40.3 million in 2009. Green Mountain then leased back rights to TC Global that allowed them to operate stores in the U.S. and abroad. — Laura Gunderson
Source: oregonlive.com
JONES HARVEST FRAUD VICTIMS: BANKRUPTCY IN INDIANA
Dear Friends, This is an update about Brien Jones of Jones Harvest Publishing. On October 13, 2012, I received a letter from the bankruptcy court in Indiana stating that Brien and Brandy Jones have filed for bankruptcy. On the day that I received this notice, Brien Jones a picture on his Facebook page with his family taken from brighter days–the days when he had a “brick and mortar” bookstore opened on the monies he swindled out of two of his authors. Well, at least he named the store after them. I find it ironic that Brien Jones would post this picture of his family on the day that Jones knew that people would be receiving this notice from the Indiana bankruptcy court. I think this takes a lot of audacity to post a family group picture and smile–obviously with contempt. I say contempt because numerous ex-employees have told me how they would sit and laugh at the misfortunes of those who put their trust–and money–in the hands of this unscrupulous family. And I say family because his wife Brandy participated in the scam, and his mother defended it. I have his mother’s email asking me why I was picking on her son. I went on to inform her about each of the authors and former employees who had put in their complaints to me and how her son wasn’t being “picked on” but rather “exposed.” Jones, who masterminded most of the thievery of Airleaf Publishing, went on to start his own company where he learned he could out-steal even himself. For instance, under the guise of Christian books, he found a Christian author, Linda Ockels, to collaborate with him to mislead unsuspecting Christian authors into a publishing scam by creating a division of Jones Harvest called “My Perfect Heart.” I mention that because I think that it is a double disgrace to rob people in the name of “Christianity.” Ockels disappeared several years ago before Jones closed up shop. I suppose her authors were angry when they realized there were no sales–or in some cases–any books published after contributing their hard-saved money. Brien Jones robbed people who were elderly, disabled, limited in their English speaking/writing ability, and people overseas who could do little to fight for justice while here in America there was no justice against his fraudulence. Here’s something that I’ll never understand. If a man robs a convenience store for $300.00, he can go away to jail for years. But if a crook robs hundreds or even thousands of people through fraudulence, the State of Indiana doesn’t view this as a crime. There is something very sad here with this twisted logic. This week, I spoke to several representatives of the bankruptcy court in Indiana including the case manager for the case. Since they weren’t very sympathetic or helpful telling me that we should all hire an attorney, I sent a letter to the Bankruptcy Court Trustee, Ann M. DeLaney. I want to let her know that what Brien Jones has done to authors is not “bad business” worthy of bankruptcy. Here is what I wrote: October 17, 2012 Ms. Ann M. DeLaney P.O. Box 441285, Indianapolis, IN 46244 Dear Ms. DeLaney, My name is Bonnie Kaye. I am the organizer of a large group of victims of a predatory publishing scam carried out by Brien Arthur Jones who is applying for bankruptcy in your court. The case number is: 12-11565-JKC-13. You can find my websites that were developed to keep our members informed and to warn new unsuspecting victims of this scam at www.Jonesharvestfraudvictims.com and www.Airleafvictims.com. To date, over 600 authors have come to me after being defrauded by Airleaf Publishing while Brien Jones served as the Executive Vice President of Sales, working in collaboration with his boss Carl Lau. Incidentally, I was successful in getting the General Attorney’s office to issue a judgment to Carl Lau on behalf of 122 authors within a certain cohort of time (they couldn’t handle the whole group). Like Brien Jones, Carl Lau declared bankruptcy and therefore, none of us were ever awarded the money owed to us. Over 130 authors have come to me after being defrauded by Brien and Brandy Jones trading as Jones Harvest Publishing, and now the same is about to happen letting them off the hook as well. The State of Indiana has done very little to stop this fraudulence over the past seven years in spite of hundreds of complaints that were filed by authors to the government agencies supposedly set up for the protection of the people. In fact, the U.S. Attorney’s office, who received comprehensive evidence compiled and presented by the FBI and U.S. Post Office of this fraudulence, concluded these actions were “bad business” and not criminal activity. Ms. DeLaney, the Jones family is not a family that came on hard times due to the economy. On the contrary, some of our authors lost their entire savings due to the deceit and fake promises of Brien Jones. They were promised books that would be made into movies, turned into best sellers, and having their names live forever in the annals of great literature. The preyed on the most vulnerable of vulnerable people–the elderly including people in nursing homes, people in poverty who were hoping to find an avenue to feed their families, immigrants to our country who had limited English knowledge, devout Christians who were sold book packages under the guise of “Christianity,” and people with disabilities. They bilked some people out of hundreds of dolalrs–and others out of thousands or tens of thousands of dollars. You can read some of these testimonies on my websites, or I can send you some of their anguished letters they sent to me for help in their desperation. I have a list of the monies they brought in over some of those years to give you an idea of how massive this predatory scheme was. I would be happy to turn that over to your office upon request. On the day that I and others received the bankruptcy notice, Brien Jones posted a picture of his family smiling on Facebook as if they had no cares in the world. That’s because they don’t. If you allow this bankruptcy to go through, then once again, they have reason to laugh with contempt because they will once again get away with everything illegal they have done resulting in hurting so many people. According to the notice that your office sent to me and others, you are having a meeting with the creditors on October 31. In all fairness, so many of these creditors will be unable to find their way into your courtroom on that date due distance, age, and medical conditions. I am sure that many of them haven’t even been notified. Is there a way that their voices can be heard and represented by giving them more time to be notified and prepared? Please see my blogs at http://jonesharvestfraudvictims.blogspot.com/. This will give you many of the details that have come about over the past few years. In fact, by the time you do read the blog, this letter will be posted on there for our members to read. Ms. DeLaney, I am letting our members know about this situation. I will wait for your response. If I don’t hear from you, I will advise them to get in touch with you on their own. Thank you for your help and consideration. Sincerely, Bonnie Kaye, M.Ed. Organizer, JonesHarvestFraudVictims.com If you have been a victim of Brien Jones, Brandy Jones, and/or Jones Harvest Publishing, now is the time to be heard. Write to the bankruptcy court in Indiana and let them know how you have been robbed by one of the most grand publishing schemes in history. You can write to: Ms. Ann M. DeLaney P.O. Box 441285, Indianapolis, IN 46244 Write to Ms. DeLaney and let her know that you want justice! Write to me if you have any questions at Bonkaye@aol.com. Love, Bonnie
Source: blogspot.com
IRS Kept Tax Refund Even Though I Filed Chapter 13 Bankruptcy
(b) Bankruptcy Code section 362(b)(26) expressly allows the IRS to keep the tax refund if the debtor’s bankruptcy case was filed after the end of the applicable tax period for which the refund (for individual income tax, the tax period ends December 31) and the refund is being used to pay prior year(s) taxes. This concept is known as the right of set off. The IRS’s claim to the refund matures on December 31, but the claim doesn’t get paid until the debtor files her tax return. This bankruptcy code section is saying that the Automatic Stay (which prevents most collection activities against the debtor) does not apply to the IRS’s ability to take a refund to pay taxes owed for prior years. The bankruptcy Automatic Stay does not quash the IRS’s right of set off.
Source: mpslawoffices.com
Bankruptcy in the Neighborhood
The question involves the impact that your neighbors declaring bankruptcy have on your declaring bankruptcy. There are a variety of possible channels through which neighbors can influence individuals in the bankruptcy context. It is possible that neighbor’s behavior can influence perceptions of the social stigma of bankruptcy. If many of your neighbors are filing for bankruptcy, then you may feel that there is less stigma involved, which could encourage you to file yourself (“because everybody else is doing it”). Alternatively, it may be possible that by talking to your neighbors who have previously filed, you can learn about the process involved in bankruptcy (“look how easy bankruptcy is”), which may also encourage you to file.
Source: creditslips.org