Oct 19, 2014

Bankrupt? You too can pay off $524,248 with just $51,720


http://johnchiv.blogspot.com/2014/10/is-bankruptcy-filing-by-eureka-city.html?m=0

The link from yesterday gives background to this post and no one was aware of this until I reported it.

 Consider the following before the November 4 election.

Is the Kim Bergel Bankruptcy, a sweet deal?

Total debt $ 524,248.

Kim Bergel and her husband file Chapter 13 on July 27, 2012. According to paperwork, two months payment was suspended in November and December 2013, so they paid $900 per month for 15 months. Payments were to resume in January 2014,$ 910 was the monthly amount in the amended plan.

In Chapter 13 bankruptcy, you keep your property, but pay back all or a portion of your debts over a three to five year period. The Bergel's Chapter 13 plan is to conclude in five years from start of case, according to court documents. Let us assume, payments will be made until July 27, 2012. So 42 months of $910.

The total amount above was with cents rounded off to $524,  If they make all their payments, they pay $51,720 and the rest of the debt is forgiven.

Since they don't have to surrender their property, what is stopping them from racking up more debt?

Low income and poor folk are ineligible for Chapter 13 because you have to afford the payments.

Kim Bergel endorses Measure R. She can stiff paying her workman's comp but those big bad employers and non-profits with 25 employees are the ones we need to go after?

Supporting local businesses must mean not paying them what is owed.

Should you trust her endorsers current Councilmembers Linda Atkins and Melinda
Ciarabellini, and former Councilmember Jeff Leonard and former Humboldt County Supervisor Bonnie Neely?

Are they, along with all your Labor Councils and Humboldt County Democrats watching out for regular folk? They didn't even vet the candidate they support.

Can you trust a candidate with your money and your future? If you and I are in debt, could we afford the same sweet deal?

Also, to clarify why I didn't contact Kim, I stopped trying after my calls were not returned. I was the first one to report she was running, way before her media announcement. Way before I knew who was supporting her. Still, no response. That does not change the facts above which are from court documents.







1 comment:

  1. John, before you go too far down the road of moral superiority, perhaps you should investigate and report on Mike Newman's 2004 Chapter 7 (non-repayment) bankruptcy.
    I'd be curious to know if his pre-economic bankruptcy was a result of a nearly fatal accident as ours was. I'd also be interested in ascertaining whether or not he made an effort of nearly four years duration to avoid bankruptcy as we did.

    Rest assured Kim is very unlikely to engage in a mud-slinging campaign. Mike may be similarly inclined. But if you want to get into it, I can certainly oblige you.

    ReplyDelete

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