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Kevin's Corner

Practice Management Tip:

The Characteristics of a Good File Name

"Here's something I picked up at a recent Bankruptcy Boot Camp.

"While this tip may seem a bit simplistic, it's important that you take the time to not only develop a consistent way to name your electronic case files but to also make your file names as descriptive as possible.

"For a lot of attorneys, it may seem much more efficient from a time-management perspective to not put much thought into naming their case files, especially when there are many cases on the table.

"But what happens when you need to refer back to your old files?

"For example, what if you are representing a new client during a bankruptcy case in which a familiar debt collector contacts your client and commits violations?

"Having your files named in a consistent and descriptive manner could be a great way to reference back to past cases involving that collector and to determine how much of a settlement you've gotten from them for old violations. On the other hand, leaving your electronic files unorganized could strip you of this reference point and result in a lower settlement.

"With that in mind, what constitutes a good file name?

"A good file name begins with the date at the beginning, thus allowing you to sift through and organize your files in chronological order if the need ever arises. Formats like 2008-28-08 or 08-28-2008 are just two examples of how you can list the date in your file name. The choice is up to you; just make sure that you are consistent and list dates in a way that will be easy to organize.

"From here, it is wise to follow up with the last and first name of the client to establish which case you are looking at.

"At this point, a good file name includes a solid description of what the file is about and who it involves. For example, if the file is about a settlement offer from 'Debt Collector A,' make sure that these elements are present in your file description.

"Sometimes this means that you may be left with longer file names – this is perfectly fine. Remember that the more thought, text and consistency you put into your file name descriptions, the easier it will be to reference back to them when you need to retrieve information about other cases involving 'Debt Collector A.'

“Finally, your files should end with the file type. Whether you save your files as Word docs, PDFs, text files or something else, the important thing to remember is to maintain consistency.

"At first glance, you may not feel that much thought or detail is necessary when naming your files; however, you will likely find that maintaining descriptive file names will save you time and make at least one aspect of your job a whole lot easier in the future."

- Kevin Chern
President, Start Fresh Today

The Numbers Game on U.S. Foreclosure Activity

On August 14, RealtyTrac® released its July 2008 U.S. Foreclosure Market Report™, and the findings were consistent with what we've seen in the housing market for quite some time.

According to the report, foreclosure activity was up 8 percent in July 2008 when compared to June 2008 and up 55 percent when compared to July 2007.

Foreclosure filings were reported for approximately 272,171 properties this past July, with foreclosure filings referring to default notices, auction sale notices and bank repossessions.

Familiar names made up the top 10 states with the highest foreclosure rates, as the following table depicts:

State Foreclosure Rate
Nevada 1 in 106 homes
California 1 in 182 homes
Florida 1 in 186 homes
Arizona 1 in 195 homes
Ohio 1 in 375 homes
Georgia 1 in 385 homes
Michigan 1 in 389 homes
Colorado 1 in 390 homes
Utah 1 in 472 homes
Virginia 1 in 562 homes

On the Bankruptcy Calendar

Morgan King will be holding a Bankruptcy Academy on discharging taxes October 31 through November 1 in Boston, Massachusetts.

If you are interested in attending, Start Fresh Today President Kevin Chern can help you get a "preferred tuition" discount of 15 percent. Here's how.

When enrolling, enter the following coupon code – kevin2008 – to get the 15 percent discount.

Other bankruptcy-related events going on during the next couple of months include:

Are we missing anything on this list?

Let us know by shooting us an email to newsletters@startfreshtoday.com with any upcoming consumer-related bankruptcy events.

Bankruptcy Article of the Week

Intriguing Differences in Obama’s and Biden’s Bankruptcy Voting Histories

On Saturday, August 23, Democratic Presidential Candidate Barack Obama (D-IL) announced in front of the historic Old State Capitol building in Springfield, Illinois that fellow U.S. Senator Joe Biden (D-DE) will be his running mate for the upcoming November election.

As can be expected, political pundits examined this announcement in terms of what it does for Obama's candidacy.

Many praised the selection of the scrappy and often long-winded Biden, who's been in the Senate for more than 35 years. The choice is seen by some supporters as a savvy move by Obama; shoring up his lack of experience (especially on foreign policy) and alleged discomfort in participating in the back-and-forth fighting that often encapsulates modern politics.

Others wondered how Biden, who said earlier this year that the presidency didn't lend itself well to on-the-job training and that Obama didn't have the experience for the job, could do such an "about face."

While many political analysts have focused on these larger angles when examining the Obama-Biden pairing, what does the selection mean to the issue most important to us practicing bankruptcy lawyers?

When you look at Obama's and Biden's voting records on the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), there are some discrepancies worth noting.

Here's a cheat sheet on what to know when it comes to Obama's and Biden's past voting records on bankruptcy:

  • While Obama opposed BAPCPA, Biden was the most prominent and outspoken of the 18 Democrats who supported the bill that was clearly the workings of the credit card industry. Specifically, Biden voted for all four versions of the bill that became BAPCPA. Obama's opposition— Republican Presidential Candidate John McCain (R-AZ)—also voted in favor of BAPCPA.
  • Both in the Judiciary Committee and on the Senate floor, Biden voted against nearly all proposed amendments to BAPCPA, including one that would have required credit card companies to disclose more of their practices.
  • Biden also attempted to remove language in the BAPCPA bill that would have precluded a bankruptcy discharge for debts arising from protests at abortion clinics, a move that raised the eyebrows of respected Harvard Law Professor Elizabeth Warren in these various editorials.
  • While Obama has been viewed as a refreshing candidate of change, Biden has been dubbed by some as the "Senator from MBNA," referring to his close relationships with banks and credit-card issuers located in his home state and of course referencing his history of accepting campaign contributions from these businesses and often voting in favor of their interests.
  • When Obama and Biden were both seeking the Democratic nomination earlier this year, Obama called out Biden for voting in favor of BAPCPA.

With all this detailed, it should also be known that both Obama and Biden voted earlier this year in favor of Dick Durbin's defeated legislation that would have allowed bankruptcy judges to modify the existing terms of mortgages in Chapter 13 bankruptcy cases.

Still, Obama's and Biden's differences on bankruptcy reform is truly an interesting issue, especially when considering Obama's recent proposals on easing bankruptcy requirements for certain groups of people.

Now whether the McCain camp jumps on these differences and makes the topic of bankruptcy reform an even bigger issue in the upcoming election remains to be seen.

Catching Up on July Consumer Bankruptcy Filings

As it's been a while since our last newsletter, here's a recap on July consumer bankruptcy filings.

Figures from the American Bankruptcy Institute (ABI) and Automated Access to Court Electronic Records (AACER) reveal similar conclusions: bankruptcy filings continue to rise.

According to the ABI, there were 94,124 consumer bankruptcy filings in July 2008, representing a 48 percent increase from the same period a year ago.

Furthermore, July 2008 bankruptcy filings were up 13.2 percent from this June, when there were 82,770 consumer bankruptcy filings.

The ABI also noted that 32.5 percent of all July consumer bankruptcy cases consisted of Chapter 13 filings.

According to AACER, there were 96,355 filings in July 2008, representing the highest total since BAPCPA's inception in October 2005.

As broken down by University of Illinois Law Professor Robert Lawless on The Credit Slips Blog, there were approximately 4,830 bankruptcy filings per day over 22 business days in July, representing a 33.2 percent from July 2007 and a 2.4 percent increase from June 2008.

For more of a statistical breakdown on July bankruptcy filings and projections on just how many bankruptcy filings we may see this year, check out the following Credit Slips post:

Working Poor Numbers Increase, According to Study

On August 12, the Brookings Institution released an interesting report examining the number of low-income workers living in poor neighborhoods.

According to the report, the number of low-income workers and families living in poor metro areas increased by 41 percent in the first part of the decade.

This increase followed a dramatic decline in concentrated poverty during the 1990s, which does not say much about the condition of the economy thus far this decade.

The following table depicts the top three metro areas with the greatest increases in the percentage of concentrated poverty since 1999.

Concentrated Poverty
Percentage in:
Metro 1999 2005 Increase
Allentown-Bethlehem-Easton, PA-NJ 1.4% 19.6% 18.2%
Detroit-Warren-Livonia, MI 11.3% 27.5% 16.2%
Augusta-Richmond County, GA-SC 14.5% 29.3% 14.8%

For more information, access the Brookings Institution report below:

Kevin Chern Presents at Max Gardner’s Bankruptcy Boot Camp

On August 14 and 15, SFT President Kevin Chern presented for roughly 10 hours on the topic of "Using Technology to Scale Your Law Practice" at Max Gardner's Bankruptcy Boot Camp in beautiful Shelby, North Carolina.

Among the many topics covered were such notables as marketing for growth through the web, mail and television, and qualifying and objection handling.

Here's what one of the bankruptcy lawyers who attended the Boot Camp had to say about the presentation:

Kevin:

"Thanks again for your help in setting up the Boot Camp and the deal you put together. It really was an eye-opening and brain-hurting experience.

"I'm trying to implement some things immediately and filter in the others as I get more comfortable with the material.

"I look forward to the Chicago NACBA Convention!"

Hunter

Kevin would like to thank Hunter for his feedback and Max Gardner for putting on a fantastic Boot Camp and being such a gracious host throughout the weekend.

If interested in attending an upcoming Boot Camp, you can learn more at Max's Web site.

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