Consumer Tips

Does Posting a Legal Notice on your Facebook Wall Protect Your Copyright and Privacy Rights?

By: Michael Havlik 

Earlier this year, anyone actively on Facebook probably saw a resurgence of friends posting a copyright/privacy notice on their wall, addressed to Facebook, and attempting to restrict Facebook’s privacy policies as applied to the user. The message, often full of arcane legalese and citations to various statutes, usually ends with a warning that you, as the user’s friend, remain unprotected unless you perpetuate the message by copy/pasting it to your own wall.

Is there any validity to the message, and any reason why you should post it on your wall? To answer that question, we’ll analyze several of the common claims and citations included in these messages.

(Spoiler alert: as humorously detailed in this video, the message is essentially a hoax, utter nonsense, and has no legal effect whatsoever.)

“I do not give Facebook or any entities associated with Facebook permission to use my pictures, information, or posts, both past and future.”

Facebook’s terms of service state that users “grant [Facebook] a non-exclusive, transferable, sub-licensable, royalty-free, worldwide license to use any IP content that you post.” This is fairly standard language on any social media website. It is binding to all Facebook users, and you cannot modify this “contract” unilaterally by posting a disclaimer on your wall. Coincidently, it is also binding on you regardless whether you’ve read the terms of service or not. If you aren’t comfortable with granting Facebook a license to use your content, you have one option: don’t upload your content on Facebook.

 “I declare that my rights are attached to all my personal data, drawings, paintings, photos, video, texts etc. published on my profile and my page. For commercial use of the foregoing my written consent is required at all times. This places me under the protection of copyright.”

Contrary to the apparent public belief, Facebook does not claim any “copyright” or ownership to any of your personal information that you upload. Also, “my rights are attached…” is meaningless legalese in this context. When this verbiage began circulating several years ago, Facebook released a statement clarifying that “anyone who uses Facebook owns and controls the content and information they post, as stated in our terms. . . . That is our policy, and it always has been.” Indeed, the current terms of service state that “[y]ou own all of the content and information you post on Facebook.”

“…Unless you post this message on your wall, anyone can infringe on your right to privacy once you post to this site.”

This is false. To the contrary, the public can only access the content that you don’t protect using Facebook’s privacy controls.

“NOTE: Facebook is now a public entity. All members must post a note like this. If you do not publish this statement at least once you tacitly allowing the use of your photos, as well as information contained in the profile status updates.”

True, Facebook went public on May 18, 2012. This only means, however, that anyone can now buy and sell its shares on a public market exchange; being a public entity doesn’t change anything under applicable privacy laws. Also true: by using Facebook, you have affirmatively (albeit tacitly) agreed to be bound by the website’s terms of service agreement. This “contract” states that you agree to give Facebook a license to all your information that you upload. Think of this as the price of admission.

“The violation of privacy can be punished by law (pursuant to the UCC and Rome Statute).” Or the alternative, a reference to the “Berne Convention.”

Although the “UCC,” “Rome Statute,” and “Berne Convention” are all real laws, they have nothing to do with internet privacy. The “UCC” is short for the “Uniform Commercial Code,” a set of standardized laws that all states have enacted to govern commercial activity. These laws generally deal with the sale of goods, not privacy rights. The Rome Statute of the International Criminal Court was adopted in 1998 and deal with international crimes against humanity, genocide, and the like. Similarly, the Berne convention, though a real law, is inapplicable in this context.

Discharging Debts Through Bankruptcy

By: Michael Richardson 

An underlying policy of bankruptcy law is to help consumers receive a fresh start in their financial lives. Many times, the only way to help people receive this fresh start is to allow them to completely get rid of a certain amount of debt. Getting rid of debt through bankruptcy is a process called discharge.

Discharge of debt occurs at the end of a consumer’s bankruptcy case. After the consumer’s non-exempt property has been collected and sold at auction, the proceeds of the auction sale are distributed to the consumer’s creditors. Once all of the auctions proceeds are gone, the consumer can discharge many of her debts one and for all. Indeed, the ability to discharge burdensome debt is one of the more attractive provisions of the bankruptcy laws.

However, not all of kinds of debt can be discharged through bankruptcy, and it is important to be aware of the types of consumer debts that are “non-dischargeable.” Debt that is “non-dischargeable” is debt that survives through the end of bankruptcy, and the consumer will still owe the same amount of that particular debt. For example, many consumers likely wonder if they can discharge their student loan debt through bankruptcy. Unfortunately, student loan debt is non-dischargeable through bankruptcy. The reason for this is because Congress decided that if a consumer could discharge her student loan debt by filing for bankruptcy, then lenders of student loans would be less willing to loan students money to pay for tuition. So, Congress created bankruptcy laws that do no allow for the discharge of student loans in order to encourage more institutions to lend students money to pay for their education.   Other debts that are non-dischargeable include state and federal taxes, debt obtained through fraud by the consumer, domestic support obligations, fines or penalties payable to the government, and debt resulting from deliberate actions of the consumer resulting in harm to another person or entity.[1]

Importantly, however, a consumer might be able to discharge her student loans and other non-dischargeable debt if she can show what is called “undue hardship.” A consumer with undue hardship usually cannot maintain a minimal standard of living if forced to repay the loans and the court sees that these burdensome circumstances will persist into the future. It must be noted that the standard for proving undue hardship is a high standard and somewhat difficult for consumers to show in bankruptcy. If, however, the consumer can prove undue hardship, then a court has the ability to discharge the student loan debt or at least reduce the amount owed.

In addition, the bankruptcy laws are very clear in saying that dishonesty is frowned upon. In fact, a court may completely deny the ability of a consumer to discharge her debt if it finds that the consumer has lied to the court or to the consumer’s creditors. In these cases, where the court finds that the consumer has been intentionally dishonest regarding her bankruptcy, the consumer may not be able to discharge any of her debt thereby eliminating one of the most beneficial parts of filing for bankruptcy.

In summary, filing for bankruptcy can allow for a consumer to discharge a significant portion of her debt and allow the consumer to leave bankruptcy with a fresh start. However, some kinds of debt cannot be discharged, unless undue hardship is shown. As with all aspects of filing for bankruptcy, is it vital to consult with an attorney to discuss your options.

[1] For full list of non-dischargeable debt, see § 523(a).

Bankruptcy Basics – Exempt Property

By: Michael Richardson

In a traditional Chapter 7 liquidation bankruptcy, the court will gather all of the debtor’s property to eventually sell at auction. The proceeds from the auction sale are then disbursed to the debtor’s creditors to satisfy existing debts. Once all of the auction proceeds are disbursed, the debtor is discharged from bankruptcy.

While this process is seemingly straightforward, a consumer considering bankruptcy might wonder: can the court sell all of my property? The short answer to this question is no.

Certain property is exempt from sale at auction, and the debtor who filed bankruptcy is permitted to keep some of her property. These “exemptions” reflect an underlying policy of United States bankruptcy law – we want to leave every debtor with enough basic property to have a reasonable chance to successfully emerge from bankruptcy. In other words, exemptions help provide a debtor with a fresh start.

In Colorado, the following types of property are exempt from sale, up to a certain dollar amount, in a Chapter 7 liquidation bankruptcy[1]:

  • Homestead: real property, mobile home or manufactured home you occupy up to $60,000 or $90,000 if occupied by an elderly (60+) or disabled debtor or spouse
  • Insurance Benefits: disability benefits up to $200 per month; if lump sum received, the entire amount is exempt
    • Includes group life insurance policy or proceeds
  • Pensions: ERISA – qualified benefits, including IRAs
  • Personal Property:
    • Clothing up to $1,500;
    • Food and Fuel up to $600;
    • Household goods up to $3,000;
    • Jewelry and articles of adornment up to $1,000;
    • Motor vehicles used for work up to $3,000;
    • Pictures and books up to $1,500;
    • Full amount of any federal or state earned income tax credit refund
  • Tools of the Trade: Horses, mules, wagons, carts, machinery, harness, and tools of farmer up to $25,000
    • Also includes the library of a professional up to $3,000 or stock in trade, supplies, fixtures, machines, tools, maps, equipment, books and business materials up to $10,000
    • Also includes livestock and poultry of farmer up to $3,000

A consumer might wonder what happens if she owns a piece of property that falls into one of these exemption categories, but the property is worth more than the dollar limit of the exemption. For example, a debtor owns an item of jewelry that is valued at $1,500, but Colorado law allows an exemption for jewelry only up to $1,000. In that case, the jewelry would be sold at auction for $1,500. The debtor would receive $1,000 from the sale, and the remaining $500 would be distributed to the creditors.

Importantly, property that is subject to a security interest affects whether the debtor may successfully claim an exemption. For example, let’s say a debtor who has filed for bankruptcy owns a car worth $3,000. When the debtor purchased the car, the dealership provided financing in exchange for a security interest in the car in the amount of $2,000. In that case, the car would be sold for $3,000, the dealership would receive $2,000, and the debtor would keep the remainder up to the limit of the exemption.

Finally, there is also something in the bankruptcy context called “exemption planning.” Let’s say a debtor knows that she will file for bankruptcy within the next few weeks. Aware of the exemptions available to her, the debtor converts non-exempt property into her homestead in order to maximize the amount of exemptions available. While some courts have found this type of conduct permissible, the debtor walks a fine line in these situations. If a court finds that the debtor has funneled assets into exempt property with the intent to defraud creditors, the court may completely prohibit the debtor from discharging any of her debt, or even dismiss the debtor’s case entirely.

[1] This is not an exhaustive list. For the full list of exemptions under Colorado law, see Colo. Rev. Stat. §13-54-102(1).

Handling Phone Calls With A Debt Collector

By: Andrew Merchant

The Consumer Financial Protection Bureau estimates that over 77 million people in the U.S. have at least one debt in the collection phase. For these 77 million people it is quite possible that a debt collector may be contacting them regarding the debt. But even if you are not one of those 77 million people, you may still be contacted by a debt collector. This is because records can become mixed up, data entered wrong, or maybe even you have the same name as the actual debtor. Whatever the reason, debt collectors have been known to contact people who don’t even have a debt due.

So whether you have a debt in collection or not, you should be aware of best practices when a debt collector contacts you. This blog takes a look things you can do to protect your interests when on the phone with a debt collector.

In Colorado, the law says that a debt collector who is calling you must identify himself within 60 seconds of making contact with you. While it is difficult to ever know whom you are speaking with, once you realize you are talking to a debt collector, keep track of whether the debt collector identified himself and how long it took to do so.

When you’re on the phone with the debt collector, be firm but polite and try not to give them more information than necessary. While you should never lie, it is not illegal for you to keep your financial, employment and other information private. Part of the debt collector’s job is to find out how much they can get you to repay. Keeping your information protected and confidential may give you leverage when it’s time to negotiate a repayment amount.

Don’t be afraid to ask the debt collector questions. Knowledge is power, and the more you know about what they know can help you. Also, asking questions can help you keep better notes of the conversation with debt collector. For example, if a debt collector were to threaten you with a lawsuit it would be good to ask him when and where he plans on doing so. If the debt collector then back peddles with no good answer, it might mean he is threatening you with an action which he doesn’t intend to follow through on – in some cases it’s illegal for the debt collector to threaten something he doesn’t intend to do.

In discussing the debt being collected, be very cautious in committing yourself to any plan or in even acknowledging any debt. You have a right to request verification from the debt collector, and in almost all cases you should make the written request necessary for the debt collector to verify the debt. And there is no need to immediately commit to a payment plan over the phone – take the time to consider the plan thoughtfully and if possible ask a legal or financial expert.

No matter what, take detailed notes during and after your phone call. Not only is it important to keep track of the facts the debt collector shared, it is also important for you to document any false or illegal things the debt collector might have stated. Having a good record will help you in the event you file a complaint or bring your own legal action against the debt collector. At a minimum, be sure to note:

  • The name of the person on the other end of the line
  • The company he or she works for
  • The date and time of the phone call – and how long it lasted
  • The things discussed like timelines, debt amounts, or any other notable comments (such as threats or abusive language)

Armed with the above information you should feel competent to handle a discussion with a debt collector.

Handling Phone Calls With A Debt Collector

By: Andrew Marchant 
The Consumer Financial Protection Bureau estimates that over 77 million people in the U.S. have at least one debt in the collection phase. For these 77 million people it is quite possible that a debt collector may be contacting them regarding the debt. But even if you are not one of those 77 million people, you may still be contacted by a debt collector. This is because records can become mixed up, data entered wrong, or maybe even you have the same name as the actual debtor. Whatever the reason, debt collectors have been known to contact people who don’t even have a debt due.

So whether you have a debt in collection or not, you should be aware of best practices when a debt collector contacts you. This blog takes a look things you can do to protect your interests when on the phone with a debt collector.

In Colorado, the law says that a debt collector who is calling you must identify himself within 60 seconds of making contact with you. While it is difficult to ever know whom you are speaking with, once you realize you are talking to a debt collector, keep track of whether the debt collector identified himself and how long it took to do so.

When you’re on the phone with the debt collector, be firm but polite and try not to give them more information than necessary. While you should never lie, it is not illegal for you to keep your financial, employment and other information private. Part of the debt collector’s job is to find out how much they can get you to repay. Keeping your information protected and confidential may give you leverage when it’s time to negotiate a repayment amount.

Don’t be afraid to ask the debt collector questions. Knowledge is power, and the more you know about what they know can help you. Also, asking questions can help you keep better notes of the conversation with debt collector. For example, if a debt collector were to threaten you with a lawsuit it would be good to ask him when and where he plans on doing so. If the debt collector then back peddles with no good answer, it might mean he is threatening you with an action which he doesn’t intend to follow through on – in some cases it’s illegal for the debt collector to threaten something he doesn’t intend to do.

In discussing the debt being collected, be very cautious in committing yourself to any plan or in even acknowledging any debt. You have a right to request verification from the debt collector, and in almost all cases you should make the written request necessary for the debt collector to verify the debt. And there is no need to immediately commit to a payment plan over the phone – take the time to consider the plan thoughtfully and if possible ask a legal or financial expert.

No matter what, take detailed notes during and after your phone call. Not only is it important to keep track of the facts the debt collector shared, it is also important for you to document any false or illegal things the debt collector might have stated. Having a good record will help you in the event you file a complaint or bring your own legal action against the debt collector. At a minimum, be sure to note:

  • The name of the person on the other end of the line
  • The company he or she works for
  • The date and time of the phone call – and how long it lasted
  • The things discussed like timelines, debt amounts, or any other notable comments (such as threats or abusive language)

Armed with the above information you should feel competent to handle a discussion with a debt collector.

Using Social Media to Improve the Consumer Complaint Process

By: Braden Johnson 

Our social media driven culture is used to posting, sharing, Tweeting, chatting, pinning, blogging, and Skyping – with friends and strangers alike. But, in the past decade, businesses have emerged as a new player in the social media hierarchy. This has given consumers new tools for reaching out to businesses, and has created a whole new type of online customer service.

Consider an airline passenger who, on a long flight, was frustrated when the television screen in front of him was not working. From his phone, he wrote a short Twitter message to JetBlue, the airline on which he was flying, to describe the problem. Before his plane landed, representatives from JetBlue issued a personal response, apologizing for the problem and offering him a $15 credit on his next flight.

This story serves as a great example of the power of social media to reach companies. There are several advantages to this new system. First, social media platforms provide a forum where consumers and businesses can correspond directly. Neither party has to wait until the other is available, which means no waiting on hold and no missed callbacks. Not only does this make the process more convenient for consumers, it benefits businesses by simplifying the complaint resolution process and saving time. Noting these benefits, many companies have started training customer service representatives to respond to social media complaints.

Second, the consumer’s compliant — and the company’s response — are visible to millions of internet users. This creates a virtual handbook of consumer Q&A, where consumers can learn from the resolutions provided for prior customers. More importantly, it also puts pressure on companies to respond fairly to customer concerns. Observers can also see the time that elapsed between complaint and resolution. This can help customers get an idea of how long the process should take, and keeps the business accountable to its consumers for its response time. Companies who do not help their consumers in a fair and timely way risk offending their customer base.

Consumers can use this new approach with relative ease. Twitter and Facebook, the two most common social media forums for customer complaints, offer free accounts. To sign up, all the user needs to provide is a name, birthday, and an email address. After joining, consumers can use the search bar to find the company they wish to speak to, and then type a simple message. The next step is to wait, and follow any instructions that the company provides in its reply. After a few days, if no one responds, the consumer should try other contact methods like email or telephone.

Just because the process is easy does not mean it is foolproof. In fact, some consumers who have posted complaints on social media have later been sued by the company for harassment, defamation, or libel. MyConsumerTips already has a blog (link here) describing how to avoid those lawsuits, but the key takeaway is: use good judgement. Don’t lie, don’t exaggerate, and don’t be malicious. For serious complaints, the consumer may consider contacting the state attorney general’s office or the Consumer Financial Protection Bureau instead.

There are some other drawbacks to social media complaints. First, a response is not guaranteed, and it may not come in the timeline that you expect. Second, social media is a bad forum for some types of questions. Imagine Tweeting to Ikea for help putting a bookcase together. The conversation might take hundreds of back-and-forth messages, which would overrun the company’s Twitter page.

Questions which require personal information are also bad for social media. Imagine posting a question on your bank’s Facebook page, asking whether your recent foreclosure has impacted your line of credit. Not only have you broadcast your recent foreclosure to millions of strangers, the bank will probably need more information (at a minimum, your account number) in order to fully answer your question. You should never give out personal information on social media sites.

Noting the obvious benefits of social media customer service, some industry analysts believe that it will displace email and telephone as the primary means for consumer complaints. Whether or not that occurs, consumers who follow the tips outlined above may find that reaching out via social media is faster, easier, and more successful than other means. Happy Tweeting!

Handling Phone Calls With A Debt Collector

By: Andrew Marchant 

The Consumer Financial Protection Bureau estimates that over 77 million people in the U.S. have at least one debt in the collection phase. For these 77 million people it is quite possible that a debt collector may be contacting them regarding the debt. But even if you are not one of those 77 million people, you may still be contacted by a debt collector. This is because records can become mixed up, data entered wrong, or maybe even you have the same name as the actual debtor. Whatever the reason, debt collectors have been known to contact people who don’t even have a debt due.

So whether you have a debt in collection or not, you should be aware of best practices when a debt collector contacts you. This blog takes a look things you can do to protect your interests when on the phone with a debt collector.

In Colorado, the law says that a debt collector who is calling you must identify himself within 60 seconds of making contact with you. While it is difficult to ever know whom you are speaking with, once you realize you are talking to a debt collector, keep track of whether the debt collector identified himself and how long it took to do so.

When you’re on the phone with the debt collector, be firm but polite and try not to give them more information than necessary. While you should never lie, it is not illegal for you to keep your financial, employment and other information private. Part of the debt collector’s job is to find out how much they can get you to repay. Keeping your information protected and confidential may give you leverage when it’s time to negotiate a repayment amount.

Don’t be afraid to ask the debt collector questions. Knowledge is power, and the more you know about what they know can help you. Also, asking questions can help you keep better notes of the conversation with debt collector. For example, if a debt collector were to threaten you with a lawsuit it would be good to ask him when and where he plans on doing so. If the debt collector then back peddles with no good answer, it might mean he is threatening you with an action which he doesn’t intend to follow through on – in some cases it’s illegal for the debt collector to threaten something he doesn’t intend to do.

In discussing the debt being collected, be very cautious in committing yourself to any plan or in even acknowledging any debt. You have a right to request verification from the debt collector, and in almost all cases you should make the written request necessary for the debt collector to verify the debt. And there is no need to immediately commit to a payment plan over the phone – take the time to consider the plan thoughtfully and if possible ask a legal or financial expert.

No matter what, take detailed notes during and after your phone call. Not only is it important to keep track of the facts the debt collector shared, it is also important for you to document any false or illegal things the debt collector might have stated. Having a good record will help you in the event you file a complaint or bring your own legal action against the debt collector. At a minimum, be sure to note:

  • The name of the person on the other end of the line
  • The company he or she works for
  • The date and time of the phone call – and how long it lasted
  • The things discussed like timelines, debt amounts, or any other notable comments (such as threats or abusive language)

Armed with the above information you should feel competent to handle a discussion with a debt collector.

A Colorado Tenant’s Guide to the Warranty of Habitability

By: Elizabeth Sullivan 

What is the warranty of habitability?

A guarantee in every residential lease that the apartment or home is fit for people to live in. Colo. Rev. Stat. § 38-12-503(1).

 

What kind of conditions would make an apartment or home “uninhabitable” under the law?

The statute lists 11 specific examples of uninhabitable conditions. If an apartment or home lacks one of the following characteristics, it could be considered uninhabitable.

  • 1) Waterproofing and weather protection of the roof, exterior walls, windows, or doors;
  • 2) Plumbing and gas facilities;
  • 3) Running water and reasonable amounts of hot water;
  • 4) Functioning heat correctly installed and in good working order;
  • 5) Electrical lighting correctly installed and in good working order;
  • 6) Common areas that are reasonably clean;
  • 7) Extermination of rodents or vermin;
  • 8) Adequate garbage receptacles;
  • 9) Floors, stairways, and railings in good repair;
  • 10) Locks on exterior doors and locks or security devices on windows; and
  • 11) Compliance with building, housing, and health codes, which, if violated, would cause the home to be dangerous to the tenant

This is not an exclusive list. Other conditions that make an apartment or home unsuitable to live in could count as an uninhabitable condition. Colo. Rev. Stat. § 38-12-505.

 

Does the tenant have to maintain the property in any way?

  • First, a tenant must fulfill maintenance duties agreed to in the lease, with some exceptions.
  • Second, a tenant must maintain the premises in a clean and safe manner which means:
    • complying with building, health, and housing codes;
    • keeping the inside of the apartment or home clean and sanitary;
    • disposing of garbage in a sanitary manner;
    • using utilities, such as heat and air-conditioning, in a reasonable manner;
    • not disturbing the neighbors peaceful enjoyment of their apartment or home; and
    • notifying the landlord if the apartment or home is uninhabitable.
  • And, of course, a tenant should not destroy or damage any part of the apartment or home.

Colo. Rev. Stat. § 38-12-504.

 

Is an “uninhabitable” condition enough to hold the landlord responsible under the law?

No. There are three requirements that must be met before a tenant can hold a landlord responsible under the law:

  • 1) The premises are uninhabitable (one of the conditions listed above or something similar);
  • 2) The condition is “materially dangerous or hazardous” to the tenant; and
  • 3) The tenant gave written notice of the condition to the landlord and the landlord failed to fix the problem in a reasonable amount of time Colo. Rev. Stat. § 38-12-503(2)(a)-(c).

If these three requirements are satisfied, the landlord has “breached the warranty of habitability.” If there is an uninhabitable condition in your home, and you feel that the condition is dangerous or hazardous to you, make sure that you give your landlord written notice of that condition. You can find a sample letter here.

 

What if the tenant caused the uninhabitable condition?

When damage to the property is caused by the tenant or the tenant’s guest, the landlord has not breached the warranty of habitability. However, the landlord can still be responsible under the warranty of habitability if the tenant is a victim of domestic violence or abuse, the damage was a result of that violence, and the tenant gave the landlord written documentation of the domestic violence or abuse. Colo. Rev. Stat. § 38-12-503(4).

 

What remedies are available to tenants?

There are several remedies available to tenants, but some of the rules, such when the tenant can seek each remedy, are complicated. Tenants should read through the statute before choosing to pursue one remedy over another. The remedies include:

  • 1) Terminating the lease early;
  • 2) A court order requiring the landlord to repair the problem (this is called injunctive relief);
  • 3) Damages (such as rent reduction and other expenses); and
  • 4) Attorney fees and costs in some circumstances.

Colo. Rev. Stat. § 38-12-507.

 

Are there any exceptions?

Yes, there are exceptions. Typical residential leases covering apartments or houses are covered by the warranty of habitability. However, the warranty of habitability does not apply to residences at public or private institutions, occupancy in a hotel or motel less than 30 days, or occupancy in a yurt or hut, among many other exceptions. If you are wondering if you fall under an exception, check this list.   Colo. Rev. Stat. § 38-12-511.

Exempt Property in Chapter 7 Liquidation Bankruptcy

By: Michael Richardson 

In a traditional Chapter 7 liquidation bankruptcy, the court will gather all of the your property to eventually sell at auction. The money gathered from the auction sale is then distributed to your creditors to satisfy your debts. Once all of the auction money is disbursed, you are discharged from bankruptcy.

While the basics are straightforward, a consumer considering bankruptcy might wonder: can the court sell ALL of my property? The short answer to this question is no.

Certain property is exempt from sale at auction, and you are permitted to keep some of your property. These “exemptions” reflect an underlying policy of United States bankruptcy law –to leave every debtor with enough basic property to have a reasonable chance to successfully emerge from bankruptcy. In other words, exemptions help provide you with a fresh start.

In Colorado, the following types of property are exempt from sale, up to a certain dollar amount, in a Chapter 7 liquidation bankruptcy[1]:

  • Your home
    • Includes real property, mobile homes or manufactured homes
    • Up to $60,000 or $90,000 if occupied by an elderly (60+) or disabled person
  • Personal Property
    • Clothing up to $1,500;
    • Food and Fuel up to $600;
    • Household goods up to $3,000;
    • Jewelry up to $1,000;
    • Motor vehicles used for work up to $3,000;
    • Pictures and books up to $1,500;
    • Full amount of any federal or state earned income tax credit refund
  • Insurance Benefits
    • Includes disability benefits up to $200 per month, in addition to group life insurance policy
  • Pensions
    • Includes ERISA – qualified benefits, including IRAs
  • Tools of the Trade
    • For example: Horses, mules, wagons, carts, machinery, harness, and tools of farmer up to $25,000
    • Also includes the library of a professional up to $3,000 or stock in trade, supplies, fixtures, machines, tools, maps, equipment, books and business materials up to $10,000
    • Also includes livestock and poultry of farmer up to $3,000

A consumer might wonder what happens if she owns a piece of property that falls into one of these exemption categories, but the property is worth more than the dollar limit of the exemption. For example, let’s say you own an item of jewelry that is valued at $1,500, but Colorado law allows an exemption for jewelry only up to $1,000. In that case, the jewelry would be sold at auction for $1,500. The debtor would receive $1,000 from the sale, and the remaining $500 would be distributed to the creditors.

In some situations, the person or company who sold you the property may not allow you to claim an exemption in bankruptcy. For example, let’s say someone named Alice has filed for bankruptcy. Two years before filing for bankruptcy, Alice bought a car from a dealership. In exchange for providing financing for the car, Alice agreed to allow the dealership to take back the car if she did not make her monthly car payments. With this type of agreement, Alice would not be able to fully take advantage of the exemption available to her.

Finally, there is also something in the bankruptcy context called “exemption planning.” Let’s say a consumer, Alice, knows that she will file for bankruptcy within the next few weeks. Aware of the exemptions available to her, Alice converts non-exempt property into her homestead in order to maximize the amount of exemptions available. While some courts have found this type of conduct permissible, Alice walks a fine line in these situations. If a court finds that Alice has funneled assets into exempt property with the intent to defraud her creditors, the court may completely prohibit Alice from discharging any of her debt, or even dismiss her case entirely. For this and other reasons, it is important to consult an attorney if you are considering filing for bankruptcy.

For those who are considering Chapter 7 liquidation bankruptcy, exemptions will play an important role. It is true that much of your property will be sold at auction if you file for bankruptcy. However, the court cannot take everything you own. Exemptions provide a consumer with the first step towards a fresh start.

 

[1] This is not an exhaustive list. For the full list of exemptions under Colorado law, see Colo. Rev. Stat. §13-54-102(1).

Making and Saving Money in the Sharing Economy, Part II

By: Otto Hanson 

This article is the second in a two-part series on this topic.  To see the whole story, please start with Making and Saving Money in the Sharing Economy, Part I.

Airbnb.com

What is it? A web and smart phone app that connects people with extra sleeping quarters to those in need of a place to sleep for short periods. On Airbnb.com you can rent anything from a couch to a castle, from a basement to a bedroom.

What should I look out for? Like Uber and Lyft, make sure that your insurance provider knows what you’re up to and that your renter’s or home-owner’s insurance policy covers you and your guests. Airbnb does offer a $1 million host guarantee, which protects hosts from theft or damage to property caused by a guest. Also like Uber and Lyft, always pay attention to reviews left by others. Also, Airbnb will verify user’s IDs, making sure that a person is who they say they are and that they can be located if needed. Always look for the “Verified ID” badge on a user’s profile.

Finally, as a host, you should always pay attention to local laws and regulations regarding zoning, occupancy restrictions, licensing requirements and taxes. Many municipalities forbid short-term rentals, others require that hosts collect and remit lodging taxes to city governments.  In Boulder, CO, for example, short term rentals in residential units may violate zoning restrictions, licensing requirements, and short term lodging taxation requirements.  However, for the time being, the City of Boulder has publicly announced that it will not be enforcing these regulations against short term rentals.   Always call you local government office to find out if you can offer short term rentals from your home.

 

DogVacay.com

What is it? A platform connecting people with pets to people willing to look after pets.

What do I need to become a pet-sitter? Smart phone or camera + computer; love of pets; and a home that lets you take in pets or transportation to and from the pet-owner’s home (some pet owners prefer their pets stay at home).

How much are people making? The average nightly rate per pet is around $30. When you’re starting out on any sharing economy platform, it’s usually wise to offer low prices until you’ve been reviewed by a few people. Once you’ve got some reviews you can always raise your prices!

 

TaskRabbit.com

What is it? A platform connecting people who need odd jobs done to people who can do those jobs. This is especially exciting in Boulder / Denver because very few “taskers” are listed.

What do I need to become a tasker? Access to the website or smart phone app, time to do tasks, a relatively clean background check (TaskRabbit.com requires this) and a client-focused attitude.

How much are people making? The average hourly rate is around $25, but varies greatly depending on the type of task and the experience / reviews of the tasker.

 

RelayRides.com

What is it? A platform connecting people who need to rent a car to people who are willing to rent out their car. This is also exciting in Boulder because we have a large volume of tourists visiting the city, and very few cars available on the site. Want to rent out your bike instead? Try Spinlister.com.

What do I need to become a tasker? Access to the website or smart phone app, a reliable car, and a strong insurance policy. Note that RelayRides may insure your vehicle for certain liabilities, and renters have the option of purchasing additional coverage through RelayRides.

How much are people making? Depending on the make, model, and condition of your car, you could rent it out for anywhere from $15 to a few hundred dollars a day.

 

General notes on becoming a provider on sharing platforms

When you become a provider of any type of resource, product, or service, you essentially become a business owner. Your customers will have basic expectations about the quality of the product or service they receive. Those expectations may be based on what you’ve promised on your profile or listing, or based on general, reasonable expectations in the field. No matter where the expectations come from, your success will depend on meeting and exceeding customer’s expectations.

Customers will leave reviews about their experience with you. If those reviews are positive, you are likely to get more business, if they’re negative, you may never get another customer on that platform. You cannot simply delete a profile and start from scratch – once you start on any of these platforms, you’re stuck with any reviews you get for life.

Next, as someone providing a product or service in exchange for money, you have a heightened responsibility to make sure that what you’re providing is safe. Always think of safety first, and never put your customer or their property in dangerous situations.

Finally, always be sure that the laws in your jurisdiction do not forbid whatever you’re doing, and remember that you will probably have to pay taxes on any income.