We thought this one was pretty interesting. What had happened is persuant to his filing bankruptcy the trustee alledges that Denny Heckler had transfered over 100 million dollars from his dealership in Minnesota to his other dealerships. So the trustee is sueing him for bankruptcy fraud.

To make matters worse, the IRS got a foot in the game by announcing that Heckler owes over 2.5 million dollars in back taxes.

Like we have always said it pays to be honest and upfront from the beginning, or you will be paying a lot more in the “end”.

Following is a copy of the press release sent out from the US Bankruptcy Court:

June 08, 2009 — Bankruptcy filings for the 12-month period ending March 31, 2009, were up 33.3 percent over bankruptcy filings for the 12-month period ending March 31, 2008, according to statistics released today by the Administrative Office of the U.S. Courts. March 2009 bankruptcy filings totaled 1,202,503, compared to the total 901,927 bankruptcy cases filed in the 12-month period ending March 31, 2008. The largest percentage increase occurred in Chapter 11 filings, a 69.1 percent increase over March 2008 Chapter 11 filings.

Related Items Per Capita Filings 2009 (pdf) (excel) Table F-2 (filing by month) (pdf) (excel) Table F (12-month period) (pdf) (excel) Table F-2 (12-month period) (pdf) (excel) Table F-2 (3-month period) (pdf) (excel)

A significant decline in bankruptcy filings occurred in October 2006, when many of the provisions of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) took effect. Bankruptcy filings have risen steadily since then and the March 2009 total filings are the highest since BAPCA was implemented.

Business and Non-business Filings
The majority of bankruptcy filings are filings involving predominantly non-business debts. Non-business filings (also called personal or consumer filings) for the 12-month period ending March 31, 2009, totaled 1,153,412, up 32.4 percent from the 871,186 bankruptcies filed in the 12-month period ending March 31, 2008.

Filings involving predominantly business debts also rose. They totaled 49,091, up 59.7 percent from the 30,741 business bankruptcies filed in the 12-month period ending March 31, 2008.

Filings by Chapter
For the 12-month period ending March 31, 2009, filings rose for all bankruptcy chapters.

• Chapter 7 filings rose 46.3 percent to 819,362, compared to the 560,015 Chapter 7 filings in the 12-month period ending March 31, 2008.
• Chapter 13 filings rose 10.9 percent to 370,875, from the 334,551 bankruptcies filed in the 12-month period ending March 31, 2008.
• Chapter 11 filings rose 69.1 percent, to 11,785, compared to the 6,971 Chapter 11 filings in the same time period in 2008.
• Chapter 12 filings rose 7.0 percent to 367, from the 343 filings for the 12-month period ending March 2008.

For more on bankruptcy and its chapters, visit the Judiciary’s web site or go to www.fjc.gov/federal/courts.nsf. Local bankruptcy court rules can be found at www.uscourts.gov/rules/bk-localrules.html. Historic data on bankruptcy filings is available on the Judiciary’s website under Bankruptcy Statistics. Additional bankruptcy statistics, including bankruptcies by county, can be found on the Judiciary’s PACER system.

For more information on Chapter’s 7, 13, 11 filings call us at 801-513-0898 or visit www.carrlawut.com

For more information on Chapter’s 7, 13, 11 filings call us at 801-513-0898 or visit www.carrlawut.com

WASHINGTON —The Internal Revenue Service and Treasury Department today announced that a tax break for the purchase of new motor vehicles is available in states that do not have a state sales tax. Under the American Recovery and Reinvestment Act of 2009, taxpayers who buy a new motor vehicle this year are entitled to deduct state or local sales or excise taxes paid on the purchase.

The IRS and Treasury have determined that purchases made in states without a sales tax — such as Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon — can also qualify for the deduction.

The IRS said today that taxpayers who purchase a new motor vehicle in states that do not have state sales taxes are entitled to deduct other fees or taxes imposed by the state or local government. The fees or taxes that qualify must be assessed on the purchase of the vehicle and must be based on the vehicle’s sales price or as a per unit fee. According to the IRS, Congress intended for these fees or taxes to qualify for this special tax deduction.

“This special tax break is available for people purchasing a new car this year, and that can include people in states without a sales tax,” said IRS Commissioner Doug Shulman. “This means that more people can take advantage of this deduction when they file their tax returns next year.”

To qualify for this deduction, the vehicle must be purchased after Feb. 16, 2009, and before Jan. 1, 2010. Taxpayers can claim this special deduction only on their 2009 tax returns to be filed next year.

The deduction is limited to the fees or taxes paid on up to $49,500 of the purchase price of a qualified new car, light truck, motor home or motorcycle.

The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers.

The special deduction is available regardless of whether taxpayers itemize deductions on their returns. Taxpayers who do not itemize will add this additional amount to the standard deduction on their 2009 tax return. The IRS reminded taxpayers the deduction may not be taken on 2008 returns.

For more tax help check out www.carrlawut.com

WASHINGTON — IRS Commissioner Doug Shulman announced today that by the end of 2009, he will propose a comprehensive set of recommendations to help the Internal Revenue Service better leverage the tax return preparer community with the twin goals of increasing taxpayer compliance and ensuring uniform and high ethical standards of conduct for tax preparers.

Some of the potential recommendations could focus on a new model for the regulation of tax return preparers; service and outreach for return preparers; education and training of return preparers; and enforcement related to return preparer misconduct. The Commissioner will submit recommendations to the Treasury Secretary and the President by the end of the year.

“Tax return preparers help Americans with one of their biggest financial transactions each year. We must ensure that all preparers are ethical, provide good service and are qualified,” Shulman said. “At the end the day, tax preparers and the associated industry must be part of our overall game plan to strengthen the integrity of the tax system.”

The first part of this groundbreaking effort will involve fact finding and receiving input from a large and diverse constituent community that includes those that are licensed by state and federal authorities — such as enrolled agents, lawyers and accountants — as well as unlicensed tax preparers and software vendors. The effort will also seek input and dialog with consumer groups and taxpayers.

“We plan to have a transparent and open dialogue about the issues,” Shulman said. “At this early and critical stage of the process, we need to hear from the broadest possible range of stakeholders.”

Later this year, the IRS plans to hold a number of open meetings in Washington and around the country with constituent groups.

More information, including schedules and agendas for public meetings, will be posted on the “Tax Professionals” page on this Web site and will be communicated to stakeholder groups.

Visit here to find a tax preparer and get tax resolution.

Check out this link to the IRS website regarding this new credit

www.irs.gov/makingworkpaycredit

The intentions were too save the economy or at least one of the factors that brought the present economy into the situation it is in. The Housing Market.  Some would argue that it is not working. Ecspecially with the rise in foreclosures and bankruptcy, you could argue that to be the fact. Now on the other hand a great amount of people have benefitted from this law. Another argument is that we have not seen the numbers for how many of these modified loans will go into default.

The end of last month T. Rowe- Price associates sent a letter to washington stating their dislike for the plan and called for a halt in the modification plan. Click here to see full letter.

If more banks jump on board we could see more pressure to change it or halt it indefinite.  At Carr and Pew think that it is time now to start your Modification. You need to act quickly and don’t lose your home. Call us now 801-513-0898

check here www.carrlawut.com

One thing with the new “Obama” Law that allows you to modify a mortgage loan is, not everyone currently qualifies for a Mortgage Loan Modification. You have to meet certain parameters to modify a loan. One of those is show a current hardship. Not everyone can do so. even if you have been months and months late on your mortgage payments.

If you are having a hardship and cannot pay your mortgage payments or are behind and cannot meet the arrears payments the Bank wants you to pay there is another option. A Chapter 13 Bankruptcy can help save the home you have invested so much into. There are a lot of things that can be done in a Chapter 13 to save your home but it is an option.

Last week I attended a four day bankruptcy conference for the National Association of Consumer Bankruptcy Attorneys (“NACBA”) in Chicago. It was a great experience. The Nation’s bankruptcy experts turned out to put on seminars, prepare instruction material, and to learn advance practice techniques. For those of you laboring under preconceived notions regarding bankruptcy attorneys, we rarely appear on TV shows, drive luxury cars, or have luxurious offices. Our clients do not have a lot of money, so are fees are modest. Now don’t get me wrong, most of us make a good living. But, it’s not the money that draws attorneys into bankruptcy. It’s the people. At our firm, we enjoy making an immediate difference in people’s lives. We make a difference. We give people hope. We give them a fresh start.

Our work is not a drop-down drag-out battle to see who gets the dog in the Divorce. Some lawsuits last for years before there is any hope of a settlement or a judgment. You never know which way the suit will go. Whereas, Bankruptcy allows us to help people who are in desperate need and help them NOW. We help people find financial relief and prosperity. We help families.

Why the long description of a Bankruptcy Attorney? Because it will help you understand the people, the cause, and the passion of NACBA. There were hundreds of Bankruptcy Attorneys from around the Nation. Everyone one of us had a desire to become better advocates for our clients and help them find relief. We discussed new ways to fight for consumer rights; new ways to go after the credit industry, including debt collectors, and make them accountable for the flagrant and purposeful breach of the law. We as consumers have rights. Many do not know these rights. Debt collectors take advantage of this and harass us and demean us because we owe a debt. At our firm, we stop the harassment!

The Credit Industry has billions of dollars at their disposal and pay lobbyist a good sum of money to have the Government address their concerns. Who is fighting for the consumer? …. NACBA. We as members of this noble organization ban together to fight for consumer rights, we fight for our clients. I was extremely impressed during a portion of the meeting that was spent discussing the goals, hopes, and obstacles for NACBA. Most Debtors do not have the money to take an issue up through the legal ranks. Litigation is expensive. Even if you win, the other party can appeal and take the issue to a higher court, maybe even up to the US Supreme Court. Neither debtors nor the Attorney have the financial resources to fight a case through the various courts. Winning does not mean financial gain. It is usually a matter of setting precedence for future Debtors making their bankruptcies easier in the future. The creditors who may be opposing the Debtor have plenty of money and resources to fight as much and as long as possible. NACBA has staff on hand to help Attorneys fight these cases, which ultimately help you, the consumer. In addition, NACBA has staff that lobby for consumer rights. How is NACBA funded? By its members.

During the conference, thousands of dollars were raised to help consumers and debtors. This money came from bankruptcy attorneys. As I said before, it’s about the people. In a financial world driven by money, I was truly honored to be surrounded by my peers who seek to help others. We put our hearts and money into our efforts. We are all truly blessed by people who start a great cause for others and to be surrounded by people supporting that cause. For some it is a job, for others it is a Cause. Remember, in struggling with and fighting debt, You are NOT alone! Your life does not need to be controlled by debt.

To learn more about NACBA, please visit www.nacba.org

For a FREE consultation – Call:

480-278-1278 for Arizona

801-513-0898 for Utah

Lawrence “D” Pew, Esq.

Carr & Pew, PLLC

www.carrlawaz.com

www.carrlawut.com

This Bill is an attempt to help consumer borrowers by limiting interest rate hikes on past purchases, requiring clearer disclosure of terms and eliminating many of the ”gotcha” practices that cost consumers millions in fees and interest. The Bill is the culmination of years of work, hearings, and studies into the nearly $1 trillion credit card industry. The provisions are the most sweeping changes to credit card industry practices in more than three decades — a period of exponential growth in credit card use, easy credit offers and growing American dependence on credit to pay basic living expenses.  The Bill enactment comes as the Fed, led by Mr. Bernanke, recently placed restrictions on the credit industry. The release of the new rules by the Fed was largely due to this year’s financial upheaval, bank failures, bankruptcies, and stock market swings not seen since the Great Depression.

These changes have been brought about by the number of consumers that have called, complained, and begged for help to the Fed and the Local and Federal Governments.  Most of us are burdened down by credit card debts, that we can no longer pay.  The credit card companies offer little or no help.  With sky-high interest rates, many of us have paid the principal amount several times over.  For every $1.00 spent on credit cards, we have paid back the credit card companies, at least, $2.00 – $4.00.  However, somehow we still owe them more. 

The new law protects consumers from surprise charges and overhauls credit card regulations that the president blames in part for the economic downturn.   “With this bill we’re putting in place some common sense reforms,” Obama said. “Just as we demand credit card users to act responsibly, we demand that credit card companies act responsibly, too.”  However, the new credit card rules, which go into effect in nine months, prohibits companies from giving cards to people under 21 unless they can prove they have the means to pay the debt or a parent or guardian co-signs for the card.  Under the bill, a customer would have to be more than 60 days behind on a payment before seeing a rate increase on an existing balance. Even then, the lender would be required to restore the previous, lower rate if the cardholder pays the minimum balance on time for six months.   The bill requires a 45 days’ notice and an explanation before their interest rates increased.

We are a Nation at risk and we need help. The Nilson Report estimated that more than 700 million credit cards were in circulation in the United States. That’s more than two cards for every man, woman and child.  We carry hefty balances.  Many of us have had medical issues, loss of employment, emergencies, reduced wages, or we made some bad decisions.  Now we are left with credit card debt.  According to the Federal Reserve, the nation is some $2.5 trillion in debt, a figure that does not include home mortgages. Credit, the president said, has become “less of a lifeline and more of an anchor.”

However, many ask if this enough help to make a difference.  The problem has all ready occurred.  The Bill does not take for another 9 months.  What will the credit card companies due in the meantime?  We have seen many raise their rates before the legislation goes into effect.  Many have been unable to get approved for new credit.  Some conservatives have expressed reservations about the unintended consequences of the new law and it could result in a contraction of credit available, at a time when it is needed the most.  In addition, this new Bill was NOT a homerun for the Consumer.  Credit card companies killed two proposals to impose caps of 15 percent and 36 percent annual percentage rate (APR) on credit cards and other loans. An industry lobbyist told CBS News “that that’s because in many cases credit card issuers are already charging more than 36 percent — if you add up the charges for things like late payments, insufficient funds, annual fees and cash advances. The industry says they could not survive if they were limited to 36 percent APR.”  Why did the Bill passed by the President do more for us, the average Joe or Jane?  Sen. Dick Durbin, D-Ill., recently told a local Chicago radio station that in his opinion the banking industry “frankly owns the place.”   In addition, Sen. Bernie Sanders, D-Vt., offered some evidence to back that up in a recent floor speech. He cited a recent report from the Consumer Education Foundation that said the financial services lobby spent $5.1 billion on campaign contributions and lobbying in past decade. He also notes that they have five lobbyists for every member of Congress.

Who is fighting for us?  ………..             Nobody!  While that is not completely accurate, however it is a David vs. Goliath situation.  Any guess as to who is David?  You and me.  Some Senators and Representatives do care and are advocating for basic rights.  However, they do not have the financial backing or support that they should have.  When the economy was in high gear, did anyone care about the interest rates charged by the credit industry?  NO.   Many refinanced their debt by taking out second mortgages and home equity lines of credit.  These instruments have better interest rates and are mostly likely tax deductible.  Now that home values have fallen, like a meteor to the earth, the years of the credit industry abuse is apparent as a crater’s devastating mark.  Only now that the economy is in shambles does the plight of the consumer get brought to the surface.  Now remember, it is not only the consumer in dire straits, but mega companies and small businesses face similar woes.  I applaud the steps of the Government to help the consumer, but who did they help first?  It was the mega companies.  The Government has given billions to these companies.  These CEOs, CFOs, and upper management make a great living.  I would love to be paid millions to run a company into the ground.  Now I am not saying their jobs are easy or that I would have the intuition to see the economic implosion, but you and I need help.  Would we have been better served to have a moratorium on interest charged for 2 years and our credit card balances knocked down by 10 to 20%?  If this was the case, I know a lot of our clients would not have had to file for bankruptcy.  Their minimum payments would have decreased and they would have been able to pay off their debts quickly?  Instead of taking a huge loss, the credit card companies would have received a substantial amount of money.

While our law firm has a substantial amount of influence, we do not have near enough pull in legislative matters.  Nor is the above the solution, it was just an idea.  However, our firm provides an economic stimulus package, at least that what we tell our clients.  Many feel ashamed or embarrassed by coming to talk with us and proceeding with bankruptcy.  We respect our clients’ moral commitments, honor, personal pride, and uprightness.  However, we are all entitled to a little mercy now and then.  Multi-billion dollar companies are receiving money from the government; some are even filing for bankruptcy themselves (including GM).  Has the government sent you a check recently? (not counting your tax refund).  Whether it be Bankruptcy, Mortgage Modification, or Settling your Debt, we are offering to our clients a little economic stimulus package or bailout.  We are taking advantage of federal laws and common business sense to help our clients financially.  You are NOT alone!  Your life does not have to be controlled by debt!

This Bill is a great step in the right direction, but what about the credit card debt staring us down right NOW?  The damage has been done.  With the economy getting worse and unemployment on the rise, many will never be able to pay back their credit card debt.  Please, Please, Please, do NOT pull out your retirement money to pay off your debt.  Do NOT use equity in your home to pay off credit card debt.  First, find out your options.  Your retirement money is just that, YOUR retirement.  With fear of the demise of Social Security, you may need every last penny, unless you plan on working the rest of your life.  There are better alternatives.  Your family’s well being, comfort, and protection should always be first.  Explore your options, for your family’s sake, before you make you make any major financial decisions.  For most cases, we offer a FREE consultation. 

Lawrence “D” Pew, Esq.

Carr & Pew, PLLC

www.carrlawaz.com