Flo - Flo, the upbeat Progressive Insurance salesgirl who sells insurance in a bright, white, afterlife-ish world, has become a runaway hit with ad watchers. Just be forewarned: her white outfit is one of the Halloween costume ideas here that’s easiest to get dirty. To achieve her high hairstyle, you can part your hair to the side and utilize a Bumpits with a blue headband in front of your bump. Then all you need is a white shirt, white jeans, blue Converse sneakers, a white apron, and a “tricked-out” nametag that says “FLO”. For makeup, wear bright red lipstick and fake eyelashes. Give yourself a smoky eye with gun-metal gray eyeshadow and black eyeliner, extending the line you device out from the corner of your eyes just a bit to get a classic cat peer look. Since Flo is such a friendly and helpful character, this is one of the best Halloween costume ideas for looking approachable.

Erin Esurance – If you’re looking for sexier Halloween costume ideas, you may want to get animated with an Erin Esurance getup. Erin Esurance’s peek girl look has made her one of the most popular insurance characters on TV, and she has a fun, funky, and covert style that’s fun to imitate. For her scrutinize, all you’ll need is a pink, short wig, a dim body suit, a pink belt, black, high-heeled boots, and a Bluetooth Headset (of course you don’t have to go out and engage this if you don’t already have one). You can also add some pink writstbands and wear a stretchy pink headband around your upper thigh for added pink accents. Now just finish your look off with some pink lipstick and use the same cat gaze makeup design described above, and you’ve got one of the sexiest Halloween costume ideas to ever come from an insurance commercial.

Caveman - This insurance icon is one of the easiest Halloween costume ideas on this list, as long as you purchase a mask like the one found here. Then all you have to do is wear a normal outfit like a button-up shirt and khaki pants, and everyone will know that you’re supposed to be one of the only commercial characters to ever get his own TV show.

Gecko – This is one of the more difficult insurance-related Halloween costume ideas to create yourself, but you could pull it off with a little work. To create the gecko head, you’ll need a green cold-weather face mask with impartial your eyes showing, black, white, and red fabric paint, and green face paint. You’ll also want a picture of the Geico Gecko for inspiration. On the side of the mask, paint two big, black, sideways teardrop shapes for the eyes, and paint two white dots on the middle top of them to make the eyes look like they’re shining. Now brush a little red paint in the center of the mask and a limited white paint over where your mouth would be. Then employ the shaded paint to establish two small black dots right under your survey hole for your nose and draw a long black line underneath the dots and on top of the white paint for your mouth. Then you’ll cover your eye area that’s exposed with the green face paint. Now you’ll just need to save on a green sweat suit or bodysuit, green gloves, and green shoes to complete the look. I know this is one of the Halloween costume ideas here that would win a lot of work to make, so if you don’t want to go through all the trouble, you could always simply purchase a gecko costume like the one found here.

These Halloween costume ideas are great for groups, so if you and your friends want to dress up like a few funky insurance frauds for Halloween, have fun hashing out who will get to be Flo, Erin Esurance, the caveman, and the gecko.

SOURCES:
http://www.buycostumes.com/Caveman-Mask-Adult/32190/ProductDetail.aspx
http://www.buycostumes.com/Gecko-Adult-Costume/32436/ProductDetail.aspx

Most of Geico Insurance customers now days were probably “Big Fans” of Disco music, back in the 1970′s. Simply because a lot of young people that live at home with their parents, have their car insurance under their parents name, thus in return most young people DO NOT retract car insurance. Using TOP name celebrities like “Peter Frampton” or “Little Richard” was a bad idea for Geico. These celebrities must be “getting really hard up to accept such an act of stupidity!”

Ironically, what a lot of people DO NOT realize is how serious automobile insurance can be? If you hit someone with your vehicle and they are seriously injured. Most likely their attorney will file a lawsuit against you! Automobile accident lawsuits are filed against the driver that caused the accident and NOT the insurance company.

If you go to court, “Is Geico going to get the caveman to represent you in front of a jury? ” I think not. Although attorneys are NOT allowed to mention the name of the insurance company during the trial, but can ask “Do you have any disagreements with Geico Insurance? ” during jury selection. The jury will then realize that it’s Geico Insurance who will pay the bill. “Hopefully the caveman will not be your attorney!”

The attorneys I have talked to, state that Geico Insurance is not that bad about settling out of court. Unlike Statefarm and Allstate which will always go to trial for any injury, which we ironically seem to pay higher insurance premium prices for? These two companies do seem to have decent commercials regarding your car insurance policy.

Personally, I believe that Geico needs to “Update” their TV commercials or advertisement campaign. At the present time, they are just taking up TV viewers time with nonsense and “stupidity” I am sure Geico pays these TV advertisement companies an enormous amount of money each year!

My advice for Geico, if they want to keep their existing customers, and possible future customers, is to do away with these “stupid” TV commercials and try something more modern. Perhaps using a parody of some kind taken from a movie? TV viewers still love entertainment and will most likely appreciate the creative change.

Thanks for reading,

Phillip Chambley.

Everyone, it seems, guarantees that they will save you money on your unusual insurance rates. Geico promises 15% or more, Progressive promises to compare quotes for you to rep you the best rate; Allstate promises “you will establish more”; Plot Farm promises the “best rates”; and the list continues on. Undoubtedly, all these companies, and many others, honestly are interested in saving you money, they want your business and in order to get your business they have to be competitive in their pricing.

Nevertheless, almost all these companies’ websites use fairly generic information forms when generating your car insurance quotes. These estimated quotes are often much higher than what they would be if you where to actually visit these agencies in person or speak with an agent. These is because local insurance agents also want your business, often more so than a national company, and are aware of the prices online and are likely to be wiling to do whatever they can to beat any online sign you may find. A good example of this is my experience with Allstate.

When I entered my information into Allstate’s online quote estimator the estimate was just over $1000 every six months or $180 a month. My wife and I have two cars, and have totaled one with in the last year, and have been in three other accidents (it has been a banner year). However, when I went into a local Allstate agent’s office he quoted me an insurance premium which was much less: $790 for six months or $132.38 a month. I was surprised at the difference. This may not always be the case, but often is. If you are truly looking for the best auto insurance rate available to you it would be worth your while to devote at least half of your looking efforts towards local agencies. Sometimes the best deals are with local car insurance agents who sell for a larger national company.

This year, we had one of the most exciting Super Bowls in new memory as the Pittsburgh Steelers managed to fight against the Arizona Cardinals’ big rally to win the game by only a couple of points. I love it when the games get this halt right as the clock winds down to the final seconds. The game could go either way, and the approach from behind find is always great to take in. While it doesn’t quite compare to my current Super Bowl where the San Francisco 49ers managed to edge past the Cincinnati Bengels, this is certainly one of the more memorable ones I have seen in awhile.

However, this year proved to be the weakest for Super Bowl commercials. Many of them could have been aired through those weekly programs we love, and they would barely leave much of an afterthought. Even the best ones reminded me of so many others that were incredibly awesome to say the least. Thank god the game was a tremendous one because it would have felt like a complete waste of a Sunday if it weren’t for that. Seriously, I can’t remember a more horrendously crappy year for commercials than this one. It was really more of a chance for NBC to pimp their own shows as much as they could since their ratings are way down in the dumpster.

Well, let’s look through them and peek what was thrust on us from eager advertisers:

SoBe in 3D

We got to see some of the players from the Pittsburgh Steelers do some stupid ballet which was later interrupted by those rather creepy lizards who did their dance to Michael Jackson’s “Thriller” last year with Naomi Campbell. I thought this one was lame and uninspired. While I love it when these NFL players show that they can laugh at themselves (we always here about the good they are doing for their communities), this feels like a one-note joke, even when it goes from classical ballet to a techno rap. In the raze, it objective felt dumb.

As for the lizards’ commercial from last year to “Thriller,” I liked it better and laughed harder when they got a whole prison in the Philippines to do it. Who would have opinion?

Pepsi Max – “I’m Trustworthy”

Ok, this one was kind of cute. We get to peek a bunch of guys get injure in the most painful ways, and yet they advance out of it on the other side saying, “I’m good.” Getting hit with a golf club, having a bowling ball hit you on the head, getting electrocuted and thrown aid 30 or so feet into a trailer, this is not your average everyday Pepsi commercial. Still, this is one that won’t stay in the collective consciousness for very long. Pepsi Max is Pepsi’s answer to Coke Zero, but with a commercial like this, it may go the way of Crystal Pepsi if they’re not careful.

I liked Crystal Pepsi…

CareerBuilder.com

This is definitely one of my favorites, and I actually laughed a lot at it. Some found the repetition of it (going back to the begin and reviewing all that came after it) to be annoying, I loved it. I mean, it’s just like the regular routine of our day jobs, only exaggerated greatly for comic effect. I don’t know of many people who daydream about riding seals in the ocean though. Hitting itsy-bitsy animals never did seem as ridiculously funny.

CareerBuilder.com also did one of the best Super Bowl ads of the last few years when they had all those corporate employees running away from a potential layoff, and they ended up running off of a cliff. This year’s wasn’t quite as good, but it came close.

GoDaddy.com

This is one of those commercials that ends in a cliffhanger as we explore these teenage boys watching Danica Patrick about to acquire a shower for the fourth time in a day, and they end up putting one their teachers in with her. I never really bother watching the conclusions of these commercials online because I waste enough time on the internet as it is. Danica does look really cute though.

Conan O’Brien and Bud Light: Swedish

This was funny for about a second. I like Conan O’Brien, and I like how it poked fun at all the big celebrities who do commercials overseas where they won’t seem like sellouts in America. But it quickly becomes stupid and not inspired enough to feel that Conan was giving us more than the average beer commercial, let alone the average light beer commercial.

I prefer the one from a while serve where two guys have to do a game of rock paper scissors to determine who will get the last Bud Light. It turns out that a real rock is the final decider in this duel.

Mr. Potato Head/Bridgestone: Taters

He was funnier in the “Toy Story” movies as was Mrs. Potato Head. Enough said.

Bud Light: Meeting

This is another one of those commercials that takes place in a conference room in a corporate building where people are working on how to increase their sales. Then there’s the one guy who says the dumbest thing and gets thrown out. In this case, the guy says that they should stop bringing Bud Light to their meetings. Everyone gets mute, and you know this guy is on his way out.

I will say that the ending is very humorous though. There’s not many commercials I remember where that one troublemaker ends up being thrown out the window from such a height. Some people just can’t take a joke, but we can with this one. This was one of the better ones in retrospect.

Hyundai: Inflamed Bosses

Here, all the car company CEO’s are going nuts over the new Hyundai car that they couldn’t come up with on their own. This is not entirely realistic considering the pathetic spot of the automobile industry at this point in time. It’s kind of hard to see them get all excited about a recent car when they have enough exertion getting rid of all their old ones.

ETrade.com

Ok, fresh rule, NO MORE COMMERCIALS WITH TALKING BABIES!!! EVER!!! This is a tired concept that should have died a long time ago with the “Study Who’s Talking” movies. Granted these commercials don’t stoop as low as those ones for Quizno’s which featured a baby less than a year old hitting on a beautiful model. Yes, I know babies are cute, but it doesn’t change the fact that seeing them doing adult things is just WRONG! Enough with the digital imagery showing them moving their mouths while voiceover actors provide them with dialogue. Seriously, enough is enough!

Doritos

This was one of my big favorites and one of the funniest. The one I am referring to is the one with the “crystal ball” which told one corporate employee if he was going to come by free Doritos or not. I was waiting for some cheesy special effect to make that little snow globe to life. Instead, it showed itself to be a baseball and a hammer all in one. Too bad it didn’t work as well with that other guy who hurled it at his boss’ nether regions. No promotion for you!

There was another good Doritos commercial with a guy who managed to change things around him with just one bite of a chip. Too bad he ran out of them before that bus hit him.

Pedigree

I loved the beginning of this one! It starts with a woman looking like she is about to take her dog for a walk, but instead her pet is a rampaging rhinoceros who crashes its way through the front door. This one gives homeowners good motivation to get more insurance. The commercial fizzled out after an ostrich made an appearance, but that opening was classic!

Monster.com

This was clever, maybe even more so than the careerbuilder.com commercial. We go from an office with a moose’s head on the wall, and then we go to the other side to find that the head is still firmly attached to the rest of the body while a corporate flunky works underneath it. Not a very appealing position for anyone to be in. Short and clever.

Budweiser

Enough with the Clydesdales! Bring back the frogs! Heck, bring back the lizards that got passed over for the frogs! I can live without Bud Bowl.

Movie Ads

Let’s try to go through these quickly:

Transformers: Revenge of the Fallen – Looks to be darker than the original. I wonder if Michael Bay is trying to make this one the “Empire Strikes Back” of the franchise.

GI Joe – It’s bad enough that they are messing up the “real American hero,” but this really looks like any other summer action movie. I hope it’s entertaining at least.

Land Of The Lost – It’s Will Ferrell playing Will Ferrell again, but this actually looks like it might be fun.

Up – Looks like another inspired concept for the brilliant folks at Pixar. Not definite this one will outdo “Wall-E” though.

Star Trek – Detached a little insecure about this one, but this does look to be action packed to say the least. Let’s fair hope J.J. Abrams remembers what made the show so great in the first place.

Fast & Furious – Obviously not art house fare. This one does however bring back the original cast, so it might actually be worth a look.

Year One – Could be very funny and cheesy at the same time. Harold Ramis directs Jack Shadowy, Michael Cera, and Paul Rudd among others. Maybe this will be the sleeper hit of the summer.

Monsters vs. Aliens – This one might be fun, but it will also be further proof of how DreamWorks pales in the animation department compared to Pixar.

There are probably several others I could mention, but they don’t really stay in my consciousness mind long enough to merit attention. Ok, some of these commercials were better than I gave them credit originally, but even the best ones of this year kept reminding me of the luminous ads from the past. That impartial took away from it even more. I expected more imagination and cleverness with these ads, and many of them felt like they could have gone on during any program, and not just for the Super Bowl.

We have come out of a great football season that brought us more exciting games than we could have expected, and it culminated with one of the most captivating Super Bowl games in recent memory. The fact that these commercials were below par this year took away from it for me. Maybe it’s just the curse of 2008 carrying over into 2009. At least we had Bruce Springsteen and the E Street Band to make up for it with a great halftime explain.

Better luck next year…

“SEC. 2. DETERMINATION OF SECURED STATUS. Fraction 506(b) of Title 11, the United States Code, is amended by adding at the demolish the following: `While a case is pending, no fee, costs, or charges may be added to a debt that is provided for in a chapter 13 plan and is secured by the debtor’s valuable station unless the holder of the secured claim gives timely discover of such fee, costs, or charge to the debtor and to the trustee.’. SEC. 3. LIMITATION OF 1978 EXEMPTION THAT PREVENTS FEDERAL BANKRUPTCY COURTS FROM MAKING MODIFICATIONS TO THE TERMS OF A MORTGAGE ON A DEBTOR’S PRINCIPAL RESIDENCE. Allotment 1322(b)(2) of title 11, United States Code, is amended by striking `, other than a claim secured only by a security interest in real property that is the debtor’s principal residence,’. SEC. 4. MODIFICATION OF CLAIMS SECURED BY DEBTOR’S PRINCIPAL Position. (a) Contents of Plan- Section 1322(b) of title 11, the United States Code, is amended– (1) in paragraph (10) by striking `and’ at the end, (2) by redesignating paragraph (11) as paragraph (12), and (3) by inserting after paragraph (10) the following: `(11) provide for payment of allowed claims secured by the debtor’s principal space consistent with section 1325(a)(5), over a period exceeding the period permitted under fraction 1322(d); and’. (b) Confirmation of Plan- Section 1325(b)(5) of title 11, the United States Code, is amended by inserting `except as otherwise provided in allotment 1322(b),’ after `(5)’. SEC. 5. ELIMINATION OF CREDIT COUNSELING REQUIREMENT FOR CHAPTER 13 DEBTORS FACING FORECLOSURE. Piece 109(h) of title 11, United States Code, is amended by adding at the end the following: `(5) The requirements of paragraph (1) shall not apply with respect to a debtor in a case under chapter 13 who submits to the court a certification that the holder of a claim secured by the debtor’s principal residence has initiated a judicial or non-judicial foreclosure on the debtor’s principal state.’. SEC. 6. CONFIRMATION OF Thought. Section 1325(a) of title 11, the United States Code, is amended– (1) in paragraph (8) by striking `and’ at the end, (2) in paragraph (9) by striking the period at the ruin and inserting `; and’, and (3) by inserting after paragraph (9) the following: `(10) notwithstanding paragraph (5)(B)(i)(I), the holder of a claim that is paid pursuant to section 1322(b)(11) shall retain the lien securing such claim until payment of such claim.’. SEC. 7. DISCHARGE. Section 1328 of title 11, the United States Code, is amended– (1) in subsection (a)– (A) by inserting `(other than payments to holders of allowed claims provided for under section 1322(b)(11)’ after `paid’ the 1st spot it appears, and (B) in paragraph (1) by inserting `or 1322(b)(11)’ after `1322(b)(5)’, and (2) in subsection (c)(1) by inserting `or 1322(b)(11)’ after `1322(b)(5)’.”

HR 3609 IH, Emergency Home Ownership and Mortgage Equity Protection Act of 2007, 110th Congress, 1st Sess., September 20, 2007. Library of Congress, Thomas, http://thomas.loc.gov/cgi-bin/query/z? c110:h3609.

I. AN INDIVIDUAL’S FINANCIAL LIFELINE.

Troubled times often lead to declining values in the American dollar, real estate and loan/credit defaults and then Bankruptcy. Bankruptcy can be traced back as far as the Old Testament, “every seven years, debts are forgiven.” (Deuteronomy 15:1-2). The root of the word Bankruptcy comes from “bancus ruptus,” Latin for bench and broken, respectively. Freund, William; Lewis, Charlton T; et al, A Latin Dictionary, Clarendon Press, 1966. For decades, Bankruptcy has allowed consumers room to legally declare an incapacity to settle debts owed to creditors. Most view a Bankruptcy in a poor light, however, when it comes to someone who relies on Bankruptcy, as a interim measure to restructure or get back on their feet, sometimes Bankruptcy is the sole option. Federal Law, Title 11 of the United States Code governs the Law of Bankruptcy, which is the law affected with the proposed bill H.R. 3609.

Corporations are downsizing, adding to one’s economic hardships. According to the Bureau of Labor and Statistics, today we have an 8.5% National Unemployment rate . As such, during a period of unemployment, bills are probably not getting paid and Credit Ratings are only becoming increasingly lower. Credit Ratings are composed of a statistical analysis of whether a person is creditworthy or not. Lenders use this derive to calculate interest rates, whether to lend to the individual based on the determination of whether the person will be able to pay them back. Many employers gawk at a person’s credit rating and obligation to determine one’s eligibility for a job. Even with solid references and employment history, someone can be denied employment if their Credit Report consists of subjective adverse information. Thus, a Bankruptcy becomes a practical option since employers cannot whisper a person employment because they are in Bankruptcy. (§525. Protection against discriminatory treatment, United States Bankruptcy Code prohibits employers from discriminating against insolvency.) Credit counseling is offered and mandated to help debtors manage their credit and spending.

Insurance Agencies also use the credit rating to determine insurance eligibility and price based on their assessment of uncertainty and insurance loss. House representatives continue to discuss legislation that will regulate the value of credit score insurance valuation. H.R. 5633 proposed the following and is quoted as follows:

“To amend the Fair Credit Reporting Act to prohibit certain discriminatory uses of consumer reports and consumer information in connection with certain personal lines of insurance, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE. SEC. 2. USE OF CONSUMER REPORTS AND CONSUMER INFORMATION IN A DISCRIMINATORY MANNER PROHIBITED.

(a) In General- Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) is amended– (1) in subsection (a), by striking `Subject to subsection (c)’ and inserting `Subject to subsections (c) and (h)’; and (2) in subsection (c)(1), by striking `A consumer reporting agency’ and inserting `Subject to subsection (h), a consumer reporting agency’. (b) Prohibition on Certain Discriminatory Uses of Consumer Reports and Consumer Information in Connection With Insurance- Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) is amended by adding at the end the following new subsection:

(h) Prohibition on Determined Discriminatory Uses of Consumer Reports and Consumer Information in Connection With Insurance- `(1) IN GENERAL- No consumer reporting agency may furnish a consumer report or consumer information with respect to any consumer to any person for use in making any decision to underwrite or rate any personal lines of insurance, and no person shall expend or rep a consumer report or consumer information with respect to any consumer in connection with the underwriting or rating of any personal line of insurance, for which the Commission determines, including any finding or determination made in any study for which a report is submitted to the Congress, that any such use of the consumer report or the consumer information– `(A) results in racial or ethnic discrimination; or `(B) represents a proxy or proxy achieve for race or ethnicity. `(2) INSURANCE INFORMATION NOT INCLUDED- Information derived from the following data bases shall not be treated as a consumer report or consumer information for purposes of paragraph (1): `(A) Databases that contain information on property loss data regarding personal lines of insurance, such as the Comprehensive Loss Underwriting Exchange (CLUE) and Automobile-Property Loss Underwriting System (A-PLUS). `(B) Databases that contain information on driver history, such as accidents or moving violations, typically maintained at State departments of motor vehicles. `(C) Databases that have information on a consumer’s medical history, to the extent such access and use for purposes described in paragraph (1) is consistent with the requirements of section 604(g). `(3) EFFECT ON Area LAWS- Notwithstanding section 625(b)(3)(C), no provision of this piece shall be construed as limiting or superseding the application of any Set laws or regulations that restrict or prohibit the use of consumer reports or consumer information in the underwriting or rating of any personal lines of insurance. `(4) DEFINITIONS- For purposes of this subsection, the following definitions shall apply: `(A) CONSUMER INFORMATION- The term `consumer information’ means any information from the file on any consumer at a consumer reporting agency, or any product derived from any such information. `(B) PERSONAL LINE OF INSURANCE- The term `personal line of insurance’ means any personal automobile or homeowners line of insurance, as defined in the Uniform Property and Casualty Product Coding Matrix established and maintained by the National Association of Insurance Commissioners (or any successor to such document). `(C) PROXY FOR Bustle OR ETHNICITY- The term `proxy for race or ethnicity’ means a substitute or stand-in for race or ethnicity, either by design or in effect, without regard to the extent of the effect.’”.

H.R. 5633 IH, Nondiscriminatory Use of Consumer Reports and Consumer Information Act of 2008, 110th Congress, 1st Sess., March 13, 2008.

H.R. 5633 was presented to the House Finance Committee to offer a non-discriminatory use of consumer confidence reports and providing limiting and prohibitory measures. The House members for the bill argued “credit-score ratings penalize consumers because of the business decisions of the lenders, unfairly penalizes consumers who are victims of medical and natural catastrophes, has an adverse and disparate impact on low-income families and credit reports often have incomplete and wrong information.” Hunter, Robert J. Consumer Federation of America, The Impact of Credit-Based Scoring on the Availability and Affordability of Insurance, Hearing Committee in Financial Services Subcommittee on Oversight and Investigations – House of Representatives, May 21, 2008. Those members opposed to the bill argue the requirement for credit scoring risk since “[l]ending institutions exercise credit to resolve the likelihood of repayment… The most significant difference between insurers and lending institutions is that insurers never consider income… The latest explore shows that 90.2 percent of automobile insurance policyholders and 90.8 percent of homeowners insurance policyholders either received a discount or were otherwise unaffected by the consume of credit.” Neeson, Charles, Westfield Group on behalf of Property Casualty Insurers Association of America, Hearing before the House Financial Services Subcommittee on Oversight and Investigations, The Impact of Credit-Based Insurance Scoring on the Availability and Affordability of Insurance, May 21, 2008. The H.R. 5633 bill never passed. However, bills are often revisited.

A majority of our states have already enacted some statute which limits the application of credit scores when predicting risk, thus reflecting the issue that consumers are often harmed without restrictions and cram-down provisions. In Folks v. Tuscaloosa County Credit Union, 989 So. 2d 531, 538 (Ala. Civ. App. 2007), an action for a deficiency claim was filed by debtor’s automobile lending company after his vehicle was repossessed. The state of Alabama enacted a statute limiting the use of debtor’s credit score to determine interest rates, in that a setoff approach is used in order to settle the deficiency. The Alaska Supreme Court decided against the request of an insurance companies expend a debtor’s credit score in order to renew insurance, interpreting Alaska Statute § 21.36.460, Uses of and restrictions on credit history or insurance scoring applicable to personal insurance. See State v. Progressive Cas. Ins. Co., 165 P.3d 624 (Alaska 2007).

Under our novel Administration and economic spot, views of a person’s insolvency are quickly changing. Analysts believe Bankruptcy filings will only increase should the new cram-down measures implement. Looking at the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA -amendments to the U.S. Bankruptcy Code) which impacted the intention consumer debts are processed by adding more restrictions and measures to alleviate the Bankruptcy process, and how this new proposed law will reverse some of these restrictions, legislators are posthaste recommending and voicing their opinions and perspectives. Our legislators address what a person’s eligibility is for bankruptcy and who decides which assets the debtor will preserve. Since the intent BAPCPA introduced was to invent a less spruce way to file Bankruptcy (as some say it was too easy), the new proposed act today impacts individuals filing Bankruptcy by requiring now a credit counseling certificate and a segregation of individuals by median income levels. According to the American Bankruptcy Committee, there is not enough historical data to rely on legislator’s true intent, and we must then rely on case history and policy when determining meaning and intent of the statute. Hollowell at 175. Since there is conflict in interpretation among the courts, it is well established this means the analytical framework is not sufficient. Hollowell at id. The required computation called the means test (§1325(b)(3)) – or projected disposable income, determines eligibility. Anyone having an excess of $166 over household expenses is now required to file a Chapter 13, rather than a Choice of either Chapter 13 (reorganization) or Chapter 7 (total liquidation); thus raising the bar of expectation courts have on the debtor and a more complex path to confirming a debtor’s reorganization opinion in order to prevent Chapter 7 abuse.

Normally a Chapter 11 Bankruptcy reserves application for a Business Entity reorganization. However, under the proposed Bankruptcy Code, debtors who do not qualify for Chapter 7 or 13, may only have a Chapter 11 option. (Seek Toibb v. Radloff, 501 U.S. 157 (1991)). §1115, 1123(a)(8), and 1129(a)(15) provide a requirement where a debtor must keep a percentage of future income to creditors.) This may introduce problems for debtors where there is more flexibility – a good problem to have.

II. ACTIONS A DEBTOR HAS TODAY THAT MAYBE AFFECTED BY H. R. 3609.

A. Mortgages and Foreclosure

California and other state statutes recognize ways dependable property may guarantee the payment of debt or plan for some other obligation: 1) mortgage (Cal. Civ. Code §2922); and deed to bag debt; and deed of trust sometimes called the grant deed, or trust deed. Cal Civ Code §1092 provides the benefit of grant deeds to transfer ownership to property. Grant deeds are the most popular instrument used in California. With the proposed law, now valuation will be determinative whether the property guarantees full payment of debt or not. The following explains the relationship between property and security deed.

A mortgage secures an obligation (debtor to pay) with a lien against the debtor’s real estate. Should the debtor default on her mortgage, debtor is level-headed lawfully in possession and control of the title and the lender only has an interest in her property (Cal. Civ. Code §2923). A security deed transfers the title to the lender/mortgagee with an opportunity to direct a foreclosure or take the property. A mortgage would force lenders to proceed through judicial foreclosure, which can be time lively and expensive. So long as there is a reasonable default, as stated in Ghirardo v. Antonioli, 14 Cal 4th 39, 57 Cal Rptr 2d 687 (Cal. 1996) “there may be only one action for the recovery of a debt secured by a trust deed, which action is one of foreclosure. Although an exception to this one action rule has developed in cases where foreclosure would be an idle act because the security has been destroyed or has become worthless, the exception does not apply if the beneficiary is responsible for the loss of security. When the mortgagee, by his or her beget act or neglect, deprives himself or herself of the right to foreclose the mortgage, he or she no longer has a suitable to an action upon the note.” (See also Cal. Code Civ. Proc. §726.) Lenders prefer to apply the non-judicial method security deed’s require.

While a security deed (grant deed a.k.a deed of trust) is mostly preferred and used routinely in almost residential and business real estate transactions, a mortgage can be used by someone unfamiliar with California law. Fortunately, laws governing security deeds and mortgages are similar. If the mortgage contains a provision that authorizes sale, it may be foreclosed through a non-judicial exercise foreclosure sale; like the same manner as a deed of trust.

From a Debtor-Borrower’s perspective, if she goes into foreclosure, she may only have a few options. A borrower may choose to sell the property, provide a Deed in lieu of foreclosure, work out some arrangement/loan modification, file bankruptcy and finally go into foreclosure proceedings. The threat of foreclosure brings lenders to an option to negotiate a defaulted loan. July 8, 2008, California legislators passed an amendment of California Civil Code 2923.6, now requiring lenders in the Site of California to win loan modifications if borrowers qualify under the unique requirements. California Civil Code 2923.6 applies to loans made from January 1, 2003, to December 31, 2007, and secured by residential real estate and are owner-occupied.

B. Stay Period, ultimately delaying the Foreclosure

California Senate Bill 1137 is a result of the sub-prime loan market collapse and as an urgency measure. Until this bill, mortgage lenders were under no statutory requirement to communicate its intention to act on a non-judicial foreclosure. This law applies to loans secured by an owner occupying residential real property and loans made between January 1, 2003 and December 31, 2007. These laws will stay in force until January 1, 2013. A new component added to the California Civil Code as follows:

“Until January 1, 2013, and as applied to residential mortgage loans made from January 1, 2003, to December 31, 2007, inclusive, that are for owner-occupied residences, this bill would, among other things, require a mortgagee, trustee, beneficiary, or authorized agent to wait 30 days after contact is made with the borrower, or 30 days after satisfying due diligence requirements to contact the borrower, as specified, before filing a notice of default. The bill would require contact with the borrower, as defined, in order to assess the borrower’s financial situation and explore options for the borrower to avoid foreclosure. The bill would require the mortgagee, beneficiary, or authorized agent to voice the borrower that he or she has the right to request a subsequent meeting within 14 days, and to provide the borrower the toll-free telephone number made available by the United States Department of Housing and Urban Development (HUD) to find a HUD-certified housing counseling agency. The bill would require the search for of default to include a specified declaration from the mortgagee, beneficiary, or authorized agent regarding its contact with the borrower or that the borrower has surrendered the property. If a notice of default had already been filed prior to the enactment of this act, the bill would instead require the mortgagee, trustee, beneficiary, or authorized agent, as part of the search for of sale, to include a specified declaration regarding contact with the borrower. The bill would authorize a borrower to designate a HUD-certified housing counseling agency, attorney, or other advisor to discuss with the mortgagee, beneficiary, or authorized agent, on the borrower’s behalf, options for the borrower to avoid foreclosure. The contact and meeting requirements of these provisions would not apply if a borrower has surrendered the property or the borrower has contracted with an organization, as specified. The bill would also require specified mailings to the resident of a property that is the subject of a eye of sale, as specified. In addition, the bill would make it a crime to chase down the notice of sale posted on a property within 72 hours of posting, thereby imposing a state-mandated local program.
Until January 1, 2013, this bill would require a legal owner to maintain vacant residential property purchased at a foreclosure sale, or acquired by that owner through foreclosure under a mortgage or deed of trust.” (Cal. Civ. Code §2923.5) (See also American Housing Rescue and Foreclosure Prevention Act of 2008, H.R. 3221, 110th Cong. §§ 401-402 (2008).

The end period will only delay the foreclosure, in my opinion, according to what I have witnessed working in my Law Firm. The issue that the debtor composed does not have a job, has not been resolved. Without a job, regardless of the halt period, the debtor will still not be able to pay the mortgage. However, with a stay period, the debtor has time until the new provisions are passed which then the debtor will have the option to file bankruptcy and cram-down the mortgage loan.

C. Deficiency Actions

When potentially-to-be-foreclosed property incurs a lien, at the judgment of foreclosure sells with a deficiency of proceeds to cover the lien, a lender may file a deficiency judgment against a debtor or anyone else liable within the foreclosure of the mortgage (Cal. Code §3151).

“California’s anti-deficiency laws do not preclude a creditor from pursuing all security given to collateralize an indebtedness. Thus, a guarantor of a security deed is not protected against a deficiency judgment.” Hodges v. Mark, 49 Cal. App. 4th 651, 656 (Cal. App. 2d Dist. 1996). Cal Code Civ Proc § 580b lists prohibitory conditions applying deficient judgments .

In order to place a deficiency action after a foreclosure sale, the lender must, within 30 days of the sale, report the transaction to the court and file with the clerk an application for an order confirming the sale. (Cal. Civ. Proc. §580(b)) The mortgagee must indicate the land sold for its true market value. In order to carry this burden of proof, the lender should have the property appraised shortly before sale by at least one MAI certified real estate appraiser and be willing to dispute on the property in an amount comparable to the appraised value. The foreclosure bid will repay the indebtedness to that extent; therefore; it is imperative the lender bid the appraised value of the property in a deficit situation with a correct good description. (Clayton Development Company v. Michael P. Falvey, 206 Cal. App. 3d 438)

Unless the debtor appears financially sound, it is probably not helpful waste efforts obtaining an appraisal, pursing confirmation and filing a deficiency action. However, some lenders may be under instructions from governmental agencies (Fannie Mae, Freddie Mac, etc.) or mortgage insurers to cure the deficiency rights in all cases.

“California’s anti-deficiency laws do not preclude a creditor from pursuing all security given to collateralize an indebtedness. Thus, a guarantor of a promissory note secured by a deed of trust is not protected against a deficiency judgment.” Hodges v. Mark, 49 Cal. App. 4th 651, 656 (Cal. App. 2d Dist. 1996).

In order to file a deficiency action after a foreclosure sale, the lender must, within 30 days of the sale, report the sale to the court and file with the clerk an application for an order confirming the sale. (Cal. Civ. Proc. §580(b)) The mortgagee must indicate the property sold for its true market value. In order to carry this burden of proof, the lender should have the property appraised shortly before sale by at least one MAI certified real estate appraiser and be prepared to yelp on the property in an amount equal to the appraised value. The foreclosure dispute will satisfy the indebtedness to that extent; therefore; it is imperative the lender bid the appraised value of the property in a deficiency situation. (206 Cal App 3d 438)

Unless the debtor appears financially sound, it is probably not worthwhile to use the time and money involved in obtaining an appraisal, pursing confirmation and filing a deficiency action. However, some lenders may be under instructions from governmental agencies (Fannie Mae, Freddie Mac, etc.) or mortgage insurers to retain the deficiency rights in all cases.

A probable effect of the H.R. 3609 is the new proposed law will cram-down any deficiency above right (appraised) value of the property.

D. Priorities

Home loans are always given a priority over other types of loans since they have high collateral value (a secured claim based on the value of the home). This means the priority of a lien applied in a home loan will generally be first. Lien priorities are charged on a property for payment of a debt on the property. Federal and state laws resolve the priority of liens, i.e. federal tax liens will typically be given top priority (paid first); see Slodov v. United States, 436 U.S. 238, 257-58, 56 L. Ed. 2d 251, 98 S. Ct. 1778 (1978). “[S]tate law dictates the existence of property interests, but the priority of those interests with respect to other portions of the tax law is an issue of federal law.” Bednarowski & Michaels Dev., L.L.C. v. Wallace, 293 F. Supp. 2d 728, 732 ( E.D. Mich. 2003). “A preexisting lien, i.e., a tax lien, encumbers whatever property the lienee thereafter acquires.” Wallace, 293 F. Supp. 2d at 733.

Lien Priorities are dealt with repeatedly in Foreclosure actions. Today, staunch estate property may fill multiple types of liens filed against it including a Trust Deed, a Federal Tax Lien, a Construction or Mechanics Lien. Some properties may also include a First and Second Mortgage Trust Deed, Homeowner Association (HOA) lien, or Delinquent Property taxes. Generally, lien priority attaches when the lien is recorded and expressly prioritized with the County Recorder. As such any transactions occurring during a loan re-work or foreclosure sale, it is necessary to search for any liens attached to the property.

In the United States we fight to retain our right to absorb property over any other right. Prioritizing home loans over all others clearly supports this policy. The cram-down goal is to give the home owner incentive to pay as powerful to their home loan as possible by reducing their lower priority – unsecured debt in order to free up extra cash to pay down the mortgage/home loan.

E. Loan Modifications

The decline of the American economy has led to an increase of loan modifications in order to set aside lender’s assets back into a working-asset rather than a loss and write-off. When a loan is modified, usually a) the loan maturity date shortens (the loan is due at an earlier date), b) the interest rate increases, or c) the entire amount of debt owed is increased. This is considered a material modification that would adversely affect the debtor and any subordinate lien holder on account.

“Despite the waiver as to application of loan proceeds, the court held that public policy requires protection of subordinating sellers and that a lender and a borrower may not bilaterally make a material modification in the loan to which the seller has subordinated, without the knowledge and consent of the seller to that modification, if the modification materially affects the seller’s rights.” Gluskin v. Atl. Sav. & Loan Assn., 108 Cal. Rptr. 318, (Ct. App. 1973). In Gluskin, Jack Gluskin owned 172 lots of land which he sold to the corporation Pathfinder under a promissory note secured by the Trust Deeds for the land plus fifty percent of profits on the sale of these new developments. Pathfinder then borrowed money from Atlantic Savings and Loan in order to construct a housing development on the land. And thus when Pathfinder defaulted, the stammer ascended on whether a loan modification made without Gluskin’s consent, created a priority Atlantic has over Gluskin since in the Gluskin Trust Deed contained a subordination provision expressly stating Gluskin subordinated under Atlantic’s Trust Deeds and that loans were given in reliance on the subordination. Here the Appellate Court reversed the lower court’s ruling for Atlanta since there was no finding of the fact that Gluskin had consented to this modification.

Shane v. Winter Hill Fed. Sav. & Loan Assn. raised the question about a loan modification where interest raised on a first mortgage applies to the second mortgage. In this Massachusetts court, trustee Richard Ross provided a $450,000 mortgage and deed for the Winter Hill Federal Savings and Loan Association for a property on Turnpike Street, Canton, Mass. Two years later, Ross executed a second mortgage for $100,000 on the aforementioned property, to a Realty company. The realty company had agreed to take on an option to cure a default by Winter Hill, by increasing the first mortgage’s interest rate. When Winter Hill defaulted again, they also notified the realty company of its intent to foreclose. The realty company also purchased the property subject to the first mortgage, and then filed claims against Winter Hill for the raise in interest. The realty’s interest was only that they had a claim in the security of the property, and had requested notice of any default and then have the option to rectify it and not be bound by any interest rate agreements she was a junior interest thereto. The court held that the interest rate increase agreed between the Ross and Winter Hill without notice to the Realty company, did prejudice the Realty company and they will not remain bound to that agreement as they were the second mortgagees.

Courts seem to finish more lenient applying loan modifications that have minimum impact on the debtor and may in some cases be of benefit to junior liens. Where loan modifications a) extend the maturity date, b) defer interest, c) slice the interest rate or d) cleave the loan amount, the extensions seemingly put a lender’s property back to a working and active status. Also, these types of modifications should not adjust the lender’s priority.

In Resolution Trust Corporation v. BVS Development, Inc., land developers sold land in exchange for deeds of trust for construction financing with subordinate interests, from Concord-Liberty Savings and Loan Assn. who partnered with Resolution Trust Corporation. When the development project soured, and the land developer’s defaulted on a $2.6 million loan, the lenders filed a foreclosure action. Defendant land developers argued that when their maturity date was extended, the subordinate clause was not appropriate and also cite the rule from Gluskin that the extension loan modification had not been consented had thus adversely affected their lien position. Here however, the amendment did not expand the chance of default, like it did in Gluskin. The land developers in fact, had more time to pay at the equivalent rate, unlike Gluskin where time was reduced and interest was increased.

“[T]he extension was made at a time when the borrower was in difficulty; it could be reasonably argued the extension gave the borrower a chance to turn itself around and pay off its debts. By itself, the extension cannot be said to be a material modification requiring an adjustment of priorities as a matter of law.” Lennar Northeast Partners v. Buice, 49 Cal. App. 4th 1576, 1584 (Cal. App. 3d Dist. 1996). Here the interest rate changed from a variable to a area rate. The maturity date was extended as well as the principal amount in order to encourage the Trust company-debtor regain control of payments. The lower court ruled Trust company no longer had a priority claim since they modified the terms of the agreement. This Appellate court reversed ruling no material modification or prejudice to the subordinate lien holders.

The current 1322 (b) statement striken “other than a claim secured only by a security interest in real property that is the debtor’s principal residence[,]” modifications will be allowed to a debtor’s principal residence. We are looking at cramming down the value of the property to what its actual value is today in order to free up extra cash applied to other unsecured and lower priority loans. This should not be considered a material modification since it is a best-effort to pay those we owe in the fairest scheme possible.

F. Title Insurance

Since valuation is at stake here and title insurance covers the dependable value of the property, two major organizations should be discussed regarding insurance related to real estate; The American Land Title Association (ATLA) and the California Land Title Association (CLTA). ATLA and CLTA provide title insurance endorsing that the property at issue is free and easy to transfer and provides certain assurances. When mortgage loans are modified, ATLA will not guarantee any subsequent agreements than the first policy contracted on the land. There are other coverage options that will require extra protection and endorse modifications set forth in ATLA Form 11 and CLTA Form 110.5. However, as mentioned in Gluskin, Shane and RTC, courts do not favor material modifications that prejudice junior lien holders; so long as Execute 11 and Form 110.5 do not contain a material modification, the title insurance coverage value should be ascertainable.

To be exhaustively diligent, the title to the property should be examined early in a foreclosure proceeding. A full title examination would, of course, be the most useful in that it would reveal any defects in the mortgagor’s title existing when the security deed was executed. However, where an attorney is provided with a mortgage title insurance notion (obtained when the security deed was executed) it is customary to conduct a restricted title examination coming forward from the date of the security deed (2008 Cal ALS 80, Cal. Code Civ. Proc.§880.020(a)(4)). The title insurance policy should be provided to an attorney at the outset (Cal Ins Code §1063.1).

The limited title examination should include a search of the following public records; 1) deed records, 2) federal tax lien docket, 3) lis pendens docket, 4) bankruptcy records and 5) possibly probate records. It is also recommended to check the bankruptcy records shortly before a foreclosure sale. These factors are simply a guideline and to be sure all bases are covered, and to be sure your property does not contain any hindering constructs that Title Insurance may not cover.

I will highlight important factors to know:

1. Deed Records.

The deed records kept by the Clerk of the Superior court in the count which the land lies should be examined to ascertain the names of all persons who have held right to the property since the execution of the security deed. A chain of title is needed in order to preserve evidence of ownership.

Only litigation which goes to the validity of the security deed or the right to foreclose should stop the foreclosure sale. Any other litigation regarding the property concerns rights of parties which are subject to the security deed and thus subject to foreclosure (Cal. Code Civ. Proc.§ 880.260 (a)(1)).

If the lis pendens docket reveals the property in foreclosure is in the custody of a receiver, the foreclosure should immediately cease. Such property is in the custody of the court appointing the receiver, and its assets may not be interfered with unless the mortgagee intervenes in the proceeding and obtains authorization to foreclose. Where the due date is ascertainable from the record, the 10-year limitations period of Civ. Code §82.020(a)(1), applies. Any recorded document that contains the due date of the note secured by the trust deed in question will suffice. Slintak v. Buckeye Retirement Co., L.L.C., Ltd., 139 Cal. App. 4th 575 (Cal. App. 2d Dist. 2006).

2. Bankruptcy Records.

The filing of a bankruptcy petition automatically enjoins a foreclosure against property of the debtor and of the insolvency estate (11 U.S.C.A §362(a) – automatic cease). All foreclosure activities should be dropped upon proper notification the prove owner has filed bankruptcy. Failure to end the foreclosure could result in the lender’s (and perhaps the attorney) being held in contempt of court. Furthermore, a foreclosure sale conducted in defiance of the quit is void. Before proceeding with foreclosure, the lender must either achieve a court order lifting the stay or wait until the stay otherwise terminates under 11 U.S.C.A §362. Debtors or their attorneys generally notify the foreclosing lender of a bankruptcy filing, but not always. Therefore, it is recommended to check the Bankruptcy Court records to ensure the present owner has not filed. Since bankruptcy filings are often take spot at the eleventh hour, the bankruptcy records should be checked shortly before the foreclosure sale date.

3. Federal Tax Liens.

A tax lien against anyone in the chain of title recorded must be dealt with in a specific manner. The trust deed will maintain its priority over subsequently filed federal tax lien. 26 U.S.C.A §7425 (b). Without IRS search for or consent, the federal lien will remain on the property generous to the purchaser’s title obtained at sale. The purchaser may apply for a Certificate of Discharge From Federal Tax Lien, however. 26 U.S.C.A §6325 (b).

4. Probate Records Need Not Be Examined.

A correct of sale in the security deed is a power coupled with an interest and is therefore irrevocable so that the power may be exercised regardless of the death of the mortgagor. In California, a trust state, when a trustor has died, the successors in interest are entitled to receive notice of default under certain circumstances. Essentially, proof of interest must be filed in the county where the land is located. It must provide constructive notice to the trustee prior to the recording of the notice of default. Further, it must supply an address to which notices may be mailed. The trustee should try to track down successor’s but does not include the duty to. See Estate of Yates, 25 Cal. App. 4th, 511 (1994).

In light of the title, with a due diligent search, the proposed cram-down should not have any affect on the insured amount of your property so long as modifications made have not been determined material.

III. AN UNREGULATED INDUSTRY LEADS TO FRAUD

The Real Estate Settlement Procedures Act (RESPA) allotment 6, 12 U.S.C. 2605, provides consumer protection with the mortgage-industry loans. The debtor may send a Qualified Written Request to the lender who in return must provide a written acknowledgment. During a suspension period, the lender cannot report to any consumer credit agencies (i.e. Equifax, etc). A debtor may also file a private lawsuit for a RESPA violation and noncompliance. The problem is that these written requests are often ignored and usually a strategy to obtain a stay order.

In my opinion, Consumer Protection is thinly spread between too many agencies. The Consumer Protection Agency, the Federal Trade Commission and the Securities and Exchange Commission all stake claims on protecting consumers. Loan servicers are usually a secondary party working for a profit. When a loan goes into foreclosure, more fees are tacked on. Because of little to no regulation in the mortgage industry abusive behavior tends to generate and fuel the already-stressed housing crisis.

Frustrated Homeowners deal with tacked on fee after fee, some services which have not even been performed (i.e. pre-paid charges for future overdue fees and inspection costs). Law Firms, such as mine, study these fees have a immediate impact on the increase of foreclosures since those fees only add to their monthly payments which keep increasing, the homeowner can no longer pay their monthly rate and thus default.

With further regulation which will be added with the new proposed bill, I believe new administration will be able to identify, manage and address complaints with ease. I also enjoy ignored complaints will lessen since these complaints will now be moot if the court will now be addressing the root of the problem – valuation of the total debt.

IV. CRAM-DOWN EFFECTS.

This proposed bill may encourage more Chapter 13 bankruptcy filings. The Helping Families Save their Homes Act and HOPE for Homeowners is a rescue opinion. President Obama is initiating so borrowers will have an opportunity to re-work their loan payments and pay all their debts without losing a home in foreclosure. The bill offers that legislation reimburse lenders part of their loss should a debtor is in a Chapter 13 and sells the property. Director Peter R. Orszag, of the Congressional Budget Office, analyzed forthcoming legislation and believes “the bill as a whole… would increase the budget deficit over the next decade, incur larger losses… higher coverage levels and insured deposits… gradually offset with higher future premiums.” Orszag, Peter R., Congressional Budget Office, Letter to Chairman Christopher J. Dodd- Chairman on Committee on Banking, Housing and Urban Affairs- United States Senate, October 1, 2008. The plan, designed to secure and manage failing and troubled assets will require additional administrative costs. The resale values will be hard to ascertain. Orszag believes proceeds gained in sales and future valuation increases will be less than the entire acquisition cost this government will continue making.

While Chairman Orszag proves a reasonable point, the solutions veteran today cannot be applied in today’s world economy. It is clearly failing. Without some change that will jumpstart our economy, we will continue on the spiral downward turn. A different strategy will produce a novel mechanism (i.e. The Energy Improvement and Extension Act of 2008 is another design to move our economy). The key here is to conserve where we never have before in order to unlock fresh avenues of financing and spending.

As you view, the tide of foreclosure is bringing heavy, quick-moving change. Presently, Bankruptcy Judges do not have the right or authority to unilaterally create mortgage loan modifications. Also, now loan modifications are usually worked by private consumer companies and law firms, mine included. Cram-down supporters say a cram-down is the ideal tool that encourages lenders to provide loan modifications for their borrowers. The cram-down bill allows federal judges to modify note terms, decrease interest rates and mortgage loan balances of bankrupt homeowners. It also will permanently extend the Federal Deposit Insurance Corp.’s insured coverage to $250,000. Nay-sayers believe cram-downs will create higher interest rates (higher costs to procure a loan) and an even-tighter credit market.

Those opposed against the proposed bill say these additions are unnecessary provisions. One provision allows bankruptcy judges the authority to change the mortgage loan terms, like the loan balance, in a Chapter 13 bankruptcy proceeding. When we allow judges to jabber these changes, a question arises as to how the collateral value of the property at issue is calculated. Many terror an economic impact. Most of the lending community (including the American Bankers Association and other Republicans) stands against the proposal declaring mortgage rates will increase, forcing lenders to require larger payments up front in order to account for the newly added risk.

I will discuss.

Bifurcation

Bifurcation means a forking; a division into two branches. Section 506 of the title 11 United States Code (a.k.a. cram-down provision) authorizes bankruptcy claims to be bifurcated or split into secured and unsecured claims. §506 (a) maybe applied to Chapters 7, 11 and 13 claims. Courts are split, however, as whether to allow bifurcation or not. Contemplate In re Mordred J. Richards et al. v. Federal Home Loan Mortgage Corp., 151 B.R. 8, *; 1993 Bankr. LEXIS 284, **; Bankr. L. Rep. (CCH) P75, 145; 28 Collier Bankr. Cas. 2d (MB) 626. 11 U.S.C 506 provides the following:

“(d) To the extent that a lien secures a claim against the debtor that is not an allowed secured claim, such line is void, unless -

(1)such claim was disallowed only under section 502(b)(5) or 502(e) of this title; or
(2)such claim in not an allowed secured claim due only to the failure of any entity to file a proof of such claim under section 501 of this title.”

Applied to section 1325 (a)(5) as follows:

“(a) Except as provided in subsection (b), the court shall confirm a understanding if — …

(5) with respect to each allowed secured claim provided for by the plan — …
(B)(ii) the value, as of the effective date of the plan, of property to be distributed under the plan on legend of such claim is not less than the allowed amount of such claim…”

Judge Feeny in Richards cites and summarizes various district court decisions in conflict with the interpretation -thus clearly ambiguous– the “denial of bifurcation would be a windfall to mortgagees whose worthless unsecured mortgages would continue to encumber debtors homes to the extent of the debt after Chapter 13. This result would counter to the reorganization provision of Chapter 13 premised upon the retention of assets and the fresh start policy of the Bankruptcy Code.” With the new provision the conflict of whether to bifurcate claims or not will likely be resolved since the courts will now be able to revise the actual secured claim amount.

Valuation of the property is “fixed at the time of belief confirmation,” Richards at 30. The result then under HR 3609, would be current asset value of homes will be significantly lower than what was originally mortgaged. The cram-down value will then be lower and the debtor pays less. Then, of course various arguments arise as to whether the loan is really secured or not since the sincere value is much lower. I will not address these arguments here. My goal is to simply answer the question at issue which I do not believe security is at issue – only valuation and added costs.

Filing Bankruptcy

“Under chapter 13 of the Bankruptcy Code, unless the debtor surrenders the property securing the lien to the holder of an allowed secured claim provided for by the concept or such holder accepts the plan, a chapter 13 plan that provides for a secured claim may not be assured of confirmation without a cram down provision comporting with section 1325(a)(5)(B). Chapter 13 cram down is comprised of two essential elements, lien retention and equivalent value, distributed in accordance with sure rules each of which must be provided for under the chapter 13 plan itself.” Collier on Chapter 13 Cramdown, 2008 Emerging Issues 1253. In today’s market, with declining housing markets, unemployment rates rising steadily our legislators are taking action in order to stabilize what we already know is a declining economy. Most understand the definition of cram-down as “a court-ordered reduction of the secured balance due on a home mortgage loan, granted to a homeowner who has filed for personal bankruptcy.” Finance and Business Terminologies, http://www.answers.com/topic/cram-down.

A judge will then identify the actual value of the home as the secured value, and the deficient balance as unsecured, then prioritized as such. Example: A bankruptcy judge considers a $400,000 property value that contains a $350,000 first mortgage and $50,000 unsecured debt. He can then allow $350,000 to the first mortgage holders, and cram-down the $50,000 unsecured debt to $10,000. With proposed law HR 3609 a mediate may alter the secured and unsecured debt as he sees it and to justify what the debtor actually owes maybe too much. If a debtor is making payments on a $200,000 mortgage on a home valued at $120,000, that debtor is paying over-the-top an unjust amount and thus not in compliance with §1325 (a)(5)(B)(ii).

Basic Contract rules provides when asset valuation declines rapidly due to unforeseen market changes, parties to that contract may be excused from performance due to commercial impracticability or courts tend to attend contract modifications. “When the occurrence of an unforeseen event would cause a promisor to acquire and unexpectedly mountainous loss in performing her contractual obligation, the parties might renegotiate and modify the promisor’s contract… The accepted law doctrines of impossibility and commercial impracticability release the promisor from her obligation on the grounds of an unforeseeable supervening event that increases the cost of either literal performance or damages liability to a level beyond the anticipated values at the time of contracting.” Triantis, George G., Unforeseen Contingencies. Risk Allocation in Contracts, University of Virginia Law School (1999). It is distinct with today’s market changes, the debtor’s value has significantly decreases and must be allowed and addressed with modification.

Section 5, H.R. 3609 Elimination of credit counseling requirement for chapter 12 debtors facing foreclosure, offers to strike from section 109 (h) of Title 11 “shall not apply with respect to a debtor in a case under chapter 13 who submits to the court a certification that the holder of a claim secured by the debtor’s valuable region.” This somewhat loosens the restrictions for what may or may not be of benefit to the debtor. Under credit counseling advisement, a person must understand the root of the financial problem. Sometimes it may only be a hardship where no matter how much credit counseling one gets, you would still have to file bankruptcy (i.e. medical costs for an unexpected accident or sickness).

V. Conclusion

H.R. 3609′s biggest impact here will be proper property valuation. Declines in property values are at the forefront. Homes that mortgaged at $200,000 may only be worth $120,000 today. While the new administration maybe and probably will be required to manage activity proposed here, I am not convinced this will negatively impact the current Mortgage business today. Will it stop excessive fees? Probably. Does that impact mortgagees? Yes. However, the leverage of these unique rules will only help manage fraudulent activity. Will title insurance coverage be affected? Yes, but only in the sense of what property will be automatically valued by the court. Credit Counseling will no longer be another hurdle to jump. Since managing a credit characterize should be a job in itself, and identity fraud is at it highest, we cannot solely rely on credit represent updates. That said, I believe opponents of the bill provide reasonable arguments; but do not address any other avenues resolving the conflict. If we march forward under the same rules and regulations, we will continue to spiral downward. I believe the change will a better influence and will allow debtor/homeowners the relief they need to save their most prized-possession-their home.

End Notes:

“Persons are classified as unemployed if they do not have a job, have actively looked for work in the prior 4 weeks, and are currently available for work. Persons who were not working and were waiting to be recalled to a job from which they had been temporarily laid off are also included as unemployed. The unemployment rate represents the number unemployed as a percent of the labor force.” (Bureau of Labor and Statistics, as of May 4th, 2009)

2 “No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt, solely because such debtor or bankrupt” (Title 11 sec. 525 (b) U.S. Bankruptcy Code)

3 See Hollowell, Eileen W., Levitt, Kathleen, et al; First This Procedure, Then That Way -Conflicting Interpretations of BACPA, American Bankruptcy Institute, Consumer Bankruptcy Committee, Volume 4, Number 2 (2007); http://www.abiworld.org/committees/newsletters/legis/vol4num2/1.pdf. A bankruptcy judge and Chapter 13 Trustee and others came together to discuss the importance of using plain language statutes provide and when ambiguous, a statute should be revisisted.
View In re Hardacre, 338 B.R. 718. The court here sorts out the meaning of projected disposable income and actual disposable income and the means test applied.

4 Deed in lieu of foreclosure. This is usually feasible only if the property is free from junior liens and encumbrances. There is, however, a risk of the conveyance being subsequently plot aside by a bankruptcy court as a preferential transfer if the property was worth substantially more than the indebtedness. If this device is used, the mortgagor should be required to impress an estoppel and solvency affidavit in addition to the deed. The mortgagee may also want to consider including non-merger language in the deed and not releasing its security deed for some time after the transfer to insure that it as least retains its secured spot in the event a bankruptcy court should set aside the conveyance. GBJ, Inc., II v. First Ave. Inv. Corp., 520 N.W.2d 508 (Minn. Ct. App. 1994).

5 The filing of a bankruptcy petition automatically enjoins a foreclosure against property of the debtor and of the bankruptcy estate (11 U.S.C.A §362(a) – automatic quit). All foreclosure activities should be dropped upon proper notification the current owner has filed bankruptcy. Failure to stop the foreclosure could result in the lender’s (and possibly the attorney) being held in contempt of court. Furthermore, a foreclosure sale conducted in violation of the stay is void. Before proceeding with foreclosure the lender must either find a court order lifting the stay or wait until the stay otherwise terminates under 11 U.S.C.A §362.

6 California Civil Code 2823.6(a) states that “a servicer acts in the best interest of all parties if it agrees to or implements a loan modification where the (1) loan is in payment default, and (2) anticipated recovery under the loan modification or workout plan exceeds the anticipated recovery through foreclosure on a procure present value basis.” California Civil Code 2823.6(b) now provides “that the mortgagee, beneficiary, or authorized agent offer the borrower a loan modification or workout plan if such a modification or plan is consistent with its contractual or other authority.”

7 397 Mass. 479; 492 N.E.2d 92; 1986 Mass. LEXIS 1291

8 42 F.3d 1206, *; 1994 U.S. App. LEXIS 34123, **; 94 Cal. Daily Op. Service 9295; 94 Daily Journal DAR 17208

9 “For purposes of this subsection, a qualified written request shall be a written correspondence, other than notice on a payment coupon or other payment medium supplied by the servicer, that–(i) includes, or otherwise enables the servicer to identify, the name and account of the borrower; and(ii) includes a statement of the reasons for the belief of the borrower, to the extent applicable, that the myth is in error or provides sufficient detail to the servicer regarding other information sought by the borrower.” (12 U.S.C 2605 (e)(1)(B)).

10 Better Business Bureau, report # unknown, author unknown, submitted March, 2009.

11 Bifurcation. Webster’s Dictionary, Merriam-Webster 11th Edition (2007).

It is an unfortunate fact that teenagers cause a spike in claim rates. Research has shown their accident rate to be up to ten times as high as that of older, more experienced drivers. This high risk group has a insist effect on quotes. The premium can almost double in some instances. Fortunately there are ways to soften the blow as far as your cheap auto insurance package is concerned.

1. Type Of Vehicle: While choosing a low risk vehicle for your teen may have you out of the running as far as the popularity contest is concerned, it will affect your insurance quote significantly. Companies frown on an expensive, fleet sports car with a teenager gradual the wheel. Don't dangle temptation in front of your teen. Choose that older, heavier car and you will qualify for a mighty lower premium, as well as a measure of peace of mind. Get a list of the no-go wheels from your insurer.

2. Driving History: Try to get your teen to understand that their driving history is just as important as their credit history. Avoiding a black label in any shape or form is vital. Don't claim for small mishaps. Tickets for speeding are a no-no.

Passing a course at a reputable driving school will also enable your carrier to see the teen as less of a risk. Why not join your child in a Defensive Driver Program, in order to qualify for a cheap auto insurance discount? This will equip both of you to cut the risk of rear-end crashes, while teaching you and your teen to exhaust emergency brake procedures correctly, to use safe following distances, and to drive safely in foul weather.

Expecting your teen carry his or her portion of the coverage is a great way to create a careful driver and stammer responsibility.

3. Avoid Distractions: Teach your teen to concentrate on driving and driving alone when in the car. No distractions are allowed. No cell phone calls. No fooling around with passengers. In fact, putting restrictions on carrying passengers during the first year or so of driving is probably sensible and can attend to get you cheap auto insurance. In some states teens are now barred from carrying more than one passenger. It has been proven that having three or more passengers makes the driver up to three times as likely to be involved in an accident. The new laws also prohibit driving during the dangerous unhurried night and early morning period. This already seems to have a beneficial effect on premiums.

4. Seat Belt Safety: Seat belt exhaust is without question one of the most vital aspects of driving. Your teen must know that his wheels will be confiscated if he ever drives without wearing a seat belt. This also applies to passengers. By signing a seat belt wearing undertaking, you may increase your chances of landing cheap auto insurance.

5. You Are The Role Model: Remember that you are your teen's role model when it comes to driving. If you don't stick to the rules, you can't expect your kids to do so. Your example over the years will play an important role in the way they approach their own driving later on.

6. Change Driver Status: Your teen may qualify to be an occasional driver, which will draw a lower premium. At first it will also be less expensive to have teens covered under your personal protection plan. They can change to their own plan later on, once they have established some sort of report.

7. Liability Coverage: Never, ever try to save on liability coverage when taking out cheap auto insurance. This is absolutely vital. If at all possible get a comprehensive umbrella policy. This will give you a huge cushion in case of a serious accident. It is astonishing how costs can add up if such an unfortunate incident occurs.

8. Get Good Grades: A number of companies allow generous discounts of up to 25% for good grades! Make a B average or higher a provision for allowing your teen on the road.

9. Company Car: If you have your own business, your teen may be able to use the company car without you

being slapped with a higher premium. Investigate this possibility.

10. Carry-Over From Your Teen: An important fact that is often overlooked is that your teen's carelessness or risky behavior may bump you into the high risk category with sky-high premiums! Your kid has to understand that his or her driving record is serious business, likely to affect the whole family. If not handled with responsibility, it may void your chances of ever getting cheap auto insurance.

As an atheist, I sometimes feel like the Geico Cavemen. Getting by in a world that views me as substandard, as not quite able to understand how the universe works. When a person dismisses the illogic and ignorance of mythical view, they suddenly are looked upon as alien by believers of those myths.

Sure, the believers wouldn’t call them myths. Not their beliefs, anyway. Those of others, sure – to the Christian Islam is myth, and vice versa. Yet, when a person calls them all out, says that they are all equally wrong, that person becomes the most vilified of all. Fundamentalists from all the religions hate each other, but they reserve a very special hatred for the Atheist.

And as an atheist, there are reminders everywhere of the pervasive and over-reaching nature of religion in America. There is a saying that in America we have freedom from religion as well as freedom of religion. But that’s not true, now is it?

Religion influences our entertainment, our national discourse, and most importantly, our politics. Any politician seeking national office need bow at the altar of religion whether they subscribe or not. We are more afraid of a breast shown during a Super bowl halftime show than we are of war rhetoric. What seems to be a basic question when removed from religion – whether or not same sex couples should be allowed to marry – becomes an entrenched national debate because of religion.

What’s a “caveman” to do? Just keep on movin’ looking for “that place” where they can be truly free from the tentacles of organized religion? Or stand his ground, holding out logic and reason as a shield? When I’m out and about and having fun and see fish on cars and crosses on the hill and churches on every corner, I feel for the Geico Cavemen.

I wrote this tongue-in-cheek, but just barely. I’m not really feeling persecuted, but I am troubled by the fact that we as a society can’t let go of our extinct mythologies. For until we do, we can’t really go ahead to a truly shapely and free society. Once everyone realizes that we are honest what we are, and for better or worse we have to live together, perhaps we can do impartial that.

If you have a family it can be complicated for you since you need to factor in the other drivers and their vehicles. The insurance broker will want to know as many facts about your family as they can, for example they will ask exactly how old each driver is, plus which cars each one is intending to drive as their primary vehicle, how far you drive each day, and what their credit score is among impartial a few.

There are now easily over a hundred “On-Line” insurance companies to choose from now, and getting them to quote you for free is fast and easy. Most of the on-line entities are brokers who use major insurance companies to provide the actual insurance, and I personally tend to shy away from the ones who do not directly offer the insurance themselves. Narrowing this down to only a handful of companies you want to deal with can take longer than it does to figure out the insurance you need. The challenge grows for each family member and the cars they drive.

Everyone already knows that lowering your coverage to state minimums will fall your rate, but that is not always an option when you have a family. So before we even discuss the best types of car insurance, we need to mention as many of the potential cost cutting devices first. Here is a reasonably thorough list which shows there are a great many places we can build money on our car insurance without compromising on our protection levels.

1) Low Mileage Discounts.
If you do not drive far each day you may qualify for a break here.

2) Car safety discounts.
If your car has various safety features including side air bags, and back up warning devices you can effect.

3) Keep your credit obtain up!
surprisingly the insurance companies occupy that folks with poor credit ratings are a higher risk unhurried the wheel. I don’t necessarily get this connection, but it is one thing they will look at.

4) Good driver discount.
No accidents, no violations, then you may qualify for a great discount here.

5) Find out about group discounts.
If you are a member of any affiliation that is recognized by your insurance company you can obtain a discount.

6) Comparison shop as much as you possibly can.
Use the Internet to have aggregation type companies compare your rates, also try the big names as well since they will likely be the underwriters you end up with anyhow.

7) Get home and auto policies from the same insurance provider.
If you can “bundle” your policies, then many companies offer 10-15% off the top.

Consider the insurance rate in the recent dwelling before moving.
Many people do not consider this when though-provoking, but your zip code can have a large impact on your insurance costs. In many areas where it is high you can move just one county over and lower your rates by 20%

9) spying on teen drivers using Cameras and GPS devices.
This is not always the most popular choice for teens, but if it is offered then this can save you significantly on your premiums. The downside is they will know when the driver is behaving badly, and this can affect your rates.

According to “Geico.com” you can accept decent premium discounts by getting your insurance through a specific group affiliation such as AARP, Society of Professional Journalists, credit unions, and many more.

Teen drivers can increase the premiums for the entire family since they have been targeted by insurance companies as some of the highest risk drivers. There may be situations where one driver can accelerate down the rest of the family with their record, and this may call for them to go on their own until their record improves.

According to “carinsurance.com” the average rate for an established family via companies like Safeco, and Liberty Mutual have consistently been below the national average, and their annual rate this month for the average family is just under $1400 per year.

There are many tricks you can use to earn your insurance rates down and one of the simplest is to look at going to the lowest allowable coverage for your state. This procedure is risky in the sense that an accident with injuries can be very costly to you if that coverage is minimal, or worst case, expired!

Make sure to check your coverage before you pay the premiums, and be certain to revisit everything on your policy periodically. Personally I prefer to have a local insurance agent to deal with directly, this way if I need help I can impartial head over to the office and chat face to face.

Thank you for reading my articles here on Associated Content – Yahoo!

Sources:

Recent personal experience dealing with Nationwide:
www.nationwide.com/

Also researching rates and programs through Geico at:
www.geico.com

Checking one large aggregation type company helps notice all in one view:
www.carinsurance.com

Insurance Firms Located in IdahoIdaho is fortunate that it is served by a wide selection of automobile insurance providers ranging in from State Farm Insurance, to Farmers, GEICO, Progressive, Allstate, Titan Auto, and the Liberty Mutual Insurance Business All insurance firms in Idaho are monitored by the Idaho Department of Insurance which is located in the state capital of Boise and all insurance complaints, questions and concerns will need to be directed by means of them.State Requirements for Insurance in IdahoLike most states, Idaho requires that all drivers, such as motorcycles, on the road need to have, at the minimum, liability insurance This liability insurance should at least contain $25,000.00 for injury or death of 1 individual, $50,000.00 for injury or death for two or extra persons, and $15,000.00 for property damage, though most insurance corporations will suggest to its motorists that the amounts insured must be higher Proof of this automobile insurance need to be kept in the auto at all times and if you are discovered to be driving with out it, you will be needed to offer proof for 1 year if you are a very first time offender If a driver is discovered to be driving with out insurance, their license can be suspended and a fine imposed by the judicial system.The state of Idaho does not need Uninsured / Underinsured Motorist coverage Though, since January of 2009, Idaho has needed that all insurance organizations to consist of an uninsured motorist bodily injury provision unless the clients expresses, in writing, that they do not want such coverage Average Insurance Rates for IdahoBased on figures, from the Insurance Data Institute, the average cost of automobile insurance for the Idaho driver was $564.00 for the year of 2007 This quantity makes it roughly $230.00 less high priced than the national U.S average at $794.00 for that exact same year to make certain your automobile.This quantity is only an average of insurance rates and the actual quantity will depend upon the driver and their personal data, as well as the automobile itself When applying for auto insurance, the insurance corporation could possibly ask, and figure out your rates, upon your age, past driving record, your education and profession as well as your marital status Idaho also enables insurance corporations to figure out your rates, as well as products provided, based on your personal credit history.Elements that are critical, when an insurance corporation is determining rates, also consist of the actual automobile that is being insured The year that auto was made as well as the make and model that it is, is also info they will want The quantity you paid for your auto and the present condition that it is in now Your insurance organization will also want to know what safety features, such as a driver’s air bag, that could be included in you automobile.Reasonably speaking, Idaho is an inexpensive state to insure your automobile, but by keeping your driving record clean and your personal credit history in excellent shape you will go even further in lowering your insurance rates .

To say that there is a health care crisis in America comes at no surprise to most U.S. citizens. Medical services have become too costly and too hard to acquire for many of us. Nobody answers the telephones on Wednesday afternoons, when private practitioners take off to play golf. No one is available when the child falls off the swing. Nobody seems to know how to give advice over the phone for the simplest of first aid treatment, or worse, they fear lawsuits if they should give the wrong advice. Patients are advised to “go to the nearest emergency room” instead of receiving care from their primary care physicians, all because the doctor does not want to be “bothered.”

For a family of ordinary means, the cost of a severe injury or sickness can be catastrophic. Numerous families across this nation have been forced into bankruptcy by a single illness!

For families with less than ordinary means, the quest for medical care may be a losing fight for life. Every day last year, hundreds of people died because they could not obtain emergency care. Health care investigators document this grim toll as death by “natural causes.” Some of the 1,000 victims were refused serve by private hospitals because they could not pay. Others died because emergency rooms or doctors were not available. One mother in one of my introduction to psychology courses told the class that one of her children died last year for want of emergency care. In her case, she did not have medical insurance, and the hospital let her sit outside in the waiting room with her badly injured child for five hours. Finally, the hospital staff came out and told her that they ‘did not have a bed’, and the child would need to be transferred to the county hospital. This hospital, which was 12 miles away, caused a fatal delay.

America has won world preeminence in medial research. Americans spend more on health than anyone else, yet the U.S. ranks 15th among industrialized nations in infant mortality, 12th in maternal mortality, 19th in male longevity, and 6th in female longevity. Nations that spent less did better!

The American Medical Association challenges these comparisons, saying that the “international statistics often cited to show that American health care is terrible are not generous for comparative purposes.” However, they also do not wish to imply that the health care in America is perfect. They know that there is room for improvement.

Improvement, in fact, is in the wind. In Washington, where several plans for health care reform has been proposed to Congress, a sense of urgency prevails. There is nationwide optimism that, through the Obama administration, health care reform will soon be a fact rather than a dream. The word is getting around. When the word gets around, Congress and the Administration have a way of doing something about it.

What, specifically? While the details of health care reform remain up in the air, there seems to be two “Health Care for All” initiative that are gaining steam.

The first is a national insurance belief to protect families from the cost burden of “catastrophic illnesses” such as chronic heart or kidney disease, or asthma, which for some families require annual outlays of thousands of dollars for many years. The time for this has arrived. It is politically acceptable. Under one plan before Congress, all costs over a certain dollar amount (which has yet to be distinct) will be underwritten by federally sponsored insurance.

A second initiative is “something for the abominable.” It is a program to replace and supersede Medicaid, which has been an unmitigated disaster in many parts of the country. The care Medicaid provides often is poor, and the cost is grand. Yet millions of low-income Americans, especially children, are not protected in any other way. One proposal in Congress would provide cash grants to pay health insurance premiums. Another would offer tax credits to insurance purchasers. In other plans, protection would be provided, at little or no charge, through a national health insurance notion.

Ironically, more health insurance, for most people, far from relieves the current crisis in health care. It is believed by some experts, in fact, that more health insurance will aggravate the situation. The health care system is already overworked, overloaded, and breaking down. Increasing the case load without streamlining the machinery could lead to peril.

I am reminded of the times when I had to visit the local Indian Clinics here in Oklahoma. These are free health care facilities for anyone who has a CDIB card (or in another words, can prove their Native heritage). I have never been to one of these clinics where the appointment resulted in anything but an all-day affair. The doctors tend to be foreign, whose English-speaking abilities leave much to be desired, and who have no clue about the cultural or ethnic traditions of Native American people. Even something as simple as getting a vaccination shot for your children can easily retain you in the clinic for 5 hours. I can only imagine that once a national health care system is invented, the level of care would more than likely be similar to these facilities. Frankly, the only people who go to these places are those who have no choice!

Some prescription-based savings programs have helped some people to obtain free or nearly-free medications. Sadly, the people who need health care the most cannot even access these programs, simply because they cannot afford to pay a doctor to get the needed prescription!

Critics of the prevailing fee-for-service method of dispensing medical care say that a basic question must be resolved: Is health care a business or a service? They insist that only if it is reorganized as a service will “Health Care for All” become a realistic goal.

Other critics concur in the need for basic change. Planners, physicians, and the public have begun to forge new systems of health care. These systems may rescue, or in many areas replace, the one-to-one relationship of patient and doctor and the fee-for-service setting of his private office.

In many communities the hospital emergency room has become an important round-the-clock health center for critical and not-so-critical situations. Emergency room visits have more than quadrupled in the last twenty years!

The greatest need is for health workers who can deliver famous care. That is, the simple case-finding, diagnostic and therapeutic services needed by large numbers of people. Much of the burden in our emergency rooms today can be handled by these general health care practitioners, if only care was awarded to them. Patients who have no health care insurance are regularly denied access to the simplest of doctor’s services, and therefore turn to the hospital emergency room, where they know they will receive care, even if that care comes 12 hours after admission.

All of the many plans for health care reform raise complex issues with regard to who will pay for the changes, and how, and who will lead the modern systems. How is each of us to resolve which concept or plans merit encourage and which should be resisted? How much participation and control does the plan delegate to the consumer? Who is eligible? Is the plan well-coordinated? What will it cost the consumer? Is quality control built into the system? Is provision made for continuing experimentation to rep better ways to deliver health care to the community?

American medicine is being asked to develop effective methods of continuously testing and improving the health care that brings medical advances to the American people. This may be the most crucial medical breakthrough of all!

Sources:

en.wikipedia.org/wiki/Health_care_reform_in_the_United_States
www.healthcarereformnow.org
www.whitehouse.gov/issues/health_care
www.heritage.org/Research/HealthCare/bg2128.cfm