Kevin's Corner
Bankruptcy Practice Tip on Cutting Costs
"A crucial element in providing assistance to your clients is the overall financial health of your firm. It would be difficult to advocate on behalf of your client if you are constantly worried about "bleeding out" and having to file a bankruptcy petition of your own. To prevent this scenario from happening to you, there are some key things you can implement that will make a world of difference to keeping the firm financially solvent.
"First of all, don't pay for what you don't use or need. Make it a point to get rid of software licenses or office gadgets that are not crucial to your firm's overall operating strategy. Funds that are currently being utilized in "non-core" areas of the firm should be shifted to areas that provide greater profitability.
"Also, evaluate your advertising spending and remove campaigns that are not increasing the firm's bottom line. This is done by reviewing your funded advertising investments and critiquing the results of those campaigns. For instance, if you are advertising in a local directory and 60% of your clients are a result of this campaign versus receiving little or no client activity from a national online directory, you might want to think about revamping your marketing plan as it pertains to your online presence and look for more effective ways to market yourself online.
"Finally, use smart hiring practices and weigh payroll issues carefully. Sometimes, getting the best employee does not always mean paying a hefty price. Think about offering quality of life benefits in exchange for dollars. Do you really need your legal assistant to work on Saturdays? Is your firm open to telecommuting for some positions?
"Providing your staff with quality of life benefits that are tailored to being more family friendly can be an excellent trade-off in lieu of higher salaries. Plus, the quality of life benefits that you provide have a tendency to create happier, more productive employees. Happy employees could mean a greater retention rate for your firm, which in turn cuts the amount of dollars spent to train new hires.
"By no means am I suggesting that you take the hatchet approach to your firm's financial plan, but what I am suggesting is that you use a scalpel to trim the fat associated with unnecessary and unprofitable spending. So, don't be afraid to set an example - in an environment of financial uncertainties, dare to be fiscally sound!"
- Kevin Chern
President, Start Fresh Today
The Numbers Game
Here are the latest bankruptcy-related figures that we should be aware of:
- Credit card defaults up 45 percent in third quarter.
- September foreclosures up 71 percent from same time last year.
- Home values fall 17.7 percent in 10 major markets during the last year.
Happy Halloween
Bankruptcy Article of the Week
Countrywide Offering New Financial Product – Renegade Banking
Illinois bank regulators have decided to prohibit Countrywide Home Loans, Inc. from making new loans in the State of Illinois. However, there is only one problem – Countrywide, now owned by Bank of America, says it has no intention of following the state's decision. According to the Chicago Tribune, bank regulators only want to allow Countrywide the authority to restructure the loans of existing customers.
Countrywide has been under investigation for the past 18 months by the Illinois Department of Financial and Professional Regulation. This investigation documented numerous infractions, including the closing of 21 branches without proper notification.
Illinois fined Countrywide $185,000.00 for the closings and placed the bank's license under review. Illinois issued a provisional license to allow Countrywide and Bank of America to continue restructuring loans for nearly 11,000 Illinois homeowners under a multistate agreement entered into earlier this month between Bank of America and Illinois. This agreement also involved eight other states.
Dan Frahm, a Bank of America spokesman, commented: "We will fully cooperate with the [state] on this issue but we think it's very important that our customers, our existing customers or even those considering future home financing options understand that Countrywide is still open for business in Illinois."
Countrywide Home Loans operates under a state license, but its home loans are made through Countrywide Bank FSB, a federally chartered bank.
When told of Bank of America's plan to ignore the Illinois ruling, Susan Hofer, spokeswoman for the Illinois Department of Financial and Professional Regulation, had this to say: "We have no control over their federal charter. We took this action because we don't believe that Countrywide Home Loans Inc. should be issuing new loans. We can't tell the federal government what they should do. All we can say is we don't think Countrywide should be making loans."
So, if you live in Illinois and need a home loan, Countrywide would be more than happy to assist you with their new renegade banking plan.
Countdown 2008: The Weight of Your Vote
So you've done your homework and you know whom you're voting for. Before you know it you'll be proudly slapping that "I voted" sticker on your jacket.
But, still … there's that lingering question: Does your vote really matter?
With the complications of the past two elections, there's no wonder that many are questioning whether their voice is actually being heard—especially when the matter of the electoral college is brought up.
But your vote does indeed count with the electoral college in place; it just counts in a more complicated way.
How It Works
When you vote for president, you're actually voting in a state election, not a national election. Your vote has the same weight as anyone else in your state; however, it will count more or less than someone in another state.
Your vote counts more in a small state because each individual vote has more of an influence. Subsequently, if you live in a large state, your state as a whole has a greater number of electoral votes; but each individual vote has less influence because of the sheer number of votes.
Your vote matters. See you on Tuesday.
Election Projections
- It takes 270 electoral votes to win the presidency.
- CNN Electoral Estimates:
- Barack Obama (D) 277 electoral votes (192 "safe" votes & 85 "leaning" votes)
- John McCain (R) 174 electoral votes (122 "safe" votes & 52 "leaning" votes) (Toss Up: 87 votes)
- CNN Projected Toss-Up States: Nevada, Colorado, Missouri, Ohio, North Carolina & Florida.
SFT Product Features
Learn more about what Start Fresh Today's products can do for you and your clients.
- Free Product Demos: Take a ride around our credit counseling, debtor education and other due-diligence products.
- Prepay Functionality Program: Save yourself some time by purchasing a set amount of our products in advance each month. Get started with this quick and easy form or by contacting Rori Endick at 954-377-9051.