October 1, 2007
INTERVIEW: NORA RAUM-BANKRUPTCY LAWYER FOR 20 YEARS
Edited by Nora Raum
Nora Raum is an attorney at law in Arlington, Va. who has been handling bankruptcy cases since 1986. By the time I finished the interview I actually wished I lived back in Arlington so I could work with her. Keep reading to learn why.
When you go to her website at www.noraraum.com and click the link "About Nora Raum" this is the passage that comes up:
I am required to tell you that I am a "debt relief agency." Of course, I'm not an agency at all, I'm a person.
But since I'm a lawyer who handles bankruptcy cases, the law makes me identify myself as a "debt relief agency."
In other words, I'm forced to lie.
I assure you I don't usually lie and am very unhappy about this requirement.
There. I've complied.
Nora: People come in miserable and upset, I've seen quite a few tears. They always say I never thought I would do this.
Samarra: It is wonderful that you provide laughter and cheer. Why do you think this decision is such an emotional one?
Nora: There is a stigma attached to it. People believe that it signifies that you are a bad person and that you have failed. I remind them that this is a business decision. If the choices are "am I going to use the money for food for my kid or am I going to make a payment to Capital One?" you need to start considering filing for bankruptcy. I've done tons of bankruptcies over my 20 year career and when it's completed clients never say I wish I never did it, they say I wish I had done it earlier. It gives you the chance to make a fresh start.
Samarra: I currently have $14,000 in debt. Now that I'm more educated about my finances I want to get rid of it yesterday. How does one determine if they should consider filing for bankruptcy or not?
Nora: In my book, Surviving Personal Bankruptcy: Your Guide to the Personal, Legal and Financial Issues", I have a chapter entitled "Ten Signs That You Need This Book". Please read the book for more details. Briefly some questions to ask yourself:
a) are you are getting cash advances to pay the minimum due on your credit cards?
b) are you are hiding the bills from your spouse?
c) do you know how much you owe?
Anyone not able to pay off their debt in a couple of years may want to consider filing for bankruptcy.
Samarra: Are most people needing to file for bankruptcy simply because of too many shopping sprees?
Nora: No, actually, the big three reasons that occur and push people over the edge are divorce, loss of jobs and medical reasons. Situations that are out of their control. Most of them say that it started in college. Many kids are graduating from college with $5,000 in debt. The card companies make it look so easy. They are targeting specific markets and sucking them in. I tell my clients to be very careful. The more exclamation points on the promotion, the more you should know to stay away. They make really outlandish offers and the biggest problem is that people sign and don't read the fine print.
Samarra: Is that what motivated you to write your book?
Nora: Yes and no. It started as a 5 page guide that I would give them with a consultation. I talk very fast and I found that people weren't absorbing the information. They really enjoyed the booklet and I felt that I could really help people with this information. I provide worksheets, alternatives to filing, tips on finding the right lawyer if you decide to file and much more hands on information.
Samarra: It seems bankruptcy occurs a lot more often today but you've been doing them all these years. Has your practice always been dedicated to only bankruptcies?
Nora: No, but it has been for the last fifteen years. Prior to that I used to do divorce and criminal law. I hated doing divorces, I couldn't stand watching the way people would use their children to get back at each other. On the other hand I loved criminal law. It was an intellectual puzzle. But when I had my youngest son who is now a senior in high school, I needed to do something that would be more stable and allow me to raise him. My husband is a reporter for the Associated Press and he travels often. Criminal law was all encompassing, you could get called in the middle of night and the trials could go on and on. I saw a way that I could focus on one area that I enjoyed. I also like to get things done and the process takes about three months and you know well in advance when the hearing is. That in conjunction with my newscasting work at NPR has paid the bills, allowed me to raise my family and have the flexibility of time that is so important to me. Last week I met with my sisters in Delaware for a few hours in the middle of the day. I love being able to do that.
Samarra: I bet. That is an interesting combination. Radio and law?
Nora: Yes, I've been doing radio for nearly 35 years. I'm originally from Harrisburg, Pennsylvania. As soon as I graduated from high school, I went to a radio school in New York. At that time in order to be on the air you had to have your FCC license. So I graduated from the school and began working in radio. I've been a deejay, news director and have been working part time as a newscaster for NPR for many, many years. At one of my jobs in Warrenton, Va, I was the news director/newscaster and deejay. It was a country station and I didn't listen to country music so I would choose songs based on the titles that I liked to say. For example: “She's acting single, I'm drinking double.” (laughter) I wasn't very good at it, I would say I had a good show when I didn't start a single song on the wrong speed. Yes, the 70's, it was records back then. I was able to do a lot of things then that people really wouldn't be able to do today.
Samarra: Speaking of which, at some point, were you a lawyer at a large law firm and then you opened your law office?
Nora: For about half a year, I worked for this older gentleman who had his own practice. It didn't pay very well but I received excellent experience. I thought, I could do what he was doing and I opened my own practice. I went from his office to my own.
Samarra: You have two children. How did you find the time to go to school, work, run a business and raise a family?
Nora: In my earlier years my first husband had a federal government job and that is how I ended up here in Virginia. I had my first child, got my first radio job and eventually worked full-time in radio while going to college at night. I went to Northern Virginia Community College and American University. I loved covering the courts and decided I'd go to law school at night which is what my husband had done. My plan was to cover the courts on the radio. No one was doing that then except Nina Totenburg who is still doing that to this day. I couldn't make a living with that idea. So I had my law degree but didn't do anything with it at first. Then I got frustrated with one of my employers in radio and thought well I have this law degree and that is when I worked with the gentleman I mentioned earlier. I love that about both of these professions. I've been able to go in and out of them as I've needed to.
Samarra: What have you learned the most about handling your own finances through your work as a bankruptcy lawyer?
Nora: How easy it is for it to happen. One thing can happen that can alter everything in an instant. I'm lecturing my son all the time. Balance your checkbook, budget, be careful. They should be teaching finance in Jr. High School.
Samarra: What are your suggestions for people who think they do need to file bankruptcy but they don't have the money to hire a lawyer? Can they file themselves?
Nora: Before they changed the laws some people could probably do it themselves but I wouldn't suggest doing it that way anymore. There are classes-financial management, etc. and steps that would be easy to miss. As far as being able to afford a lawyer, once you decide to file, stop paying the minimums on your credit cards and use that money to pay the lawyer instead. Find out if the lawyer will accept a payment plan. Think of it as an investment. You're probably going to pay $2,000-$3,000 dollars for the lawyer but in comparison to the debt that will be exonerated, it will be well worth giving yourself the opportunity to make a fresh start.
Samarra: Can a person really make a fresh start? I know many worry about their credit being messed up forever and not ever really being able to get a loan to buy a house?
Nora: In most cases the person’s credit is already messed up. By filing bankruptcy you’ll have the opportunity to have a good record sooner rather than later or in some cases never. Legally it can stay on your report for 10 years but some people can buy a house in 3 to 4 years.
Samarra: You really make it seem as if the biggest issue is the emotional stigma that people attach to it. There are real advantages to choosing to file for bankruptcy.
Nora: Remember, I've been doing this for 20 years. As I say on my website and to all my clients, there is definitely life after bankruptcy. In fact, it can give you a fresh start!
Samarra: Thank you so much Nora! I am ordering your book right now!
I invite everyone to visit her website. It provides the answers to many questions and you'll be smiling at her humor along the way. If you don't reside in Virginia she won't be able to represent you but you can order her book now by sending her an e-mail at nora@noraraum.com.
PLAN OF ACTION
Look at your financial situation and take action.
If you need to file for bankruptcy read Nora's book which gives you tips on how to choose a lawyer. If you decide that you do not need to file bankruptcy begin to make a plan or seek a financial counselor to make a plan to pay off your debts and save and invest to ensure your financial future.
The greatest way to combat the emotional shame that arises around our finances is to share our experience with each other and together start taking actions.
EMBARK ON A FRESH START!
SAMARRA AM MANAGEMENT EVENT
Free Teleseminar
Date: Monday, October 29, 2007
Time: 8pm-9pm
Topic: "CCC: Why We Can't Resist Their S***wipe"
Mark Your Calendars-Free Teleseminars the last Monday of each month!
If you have an upcoming event, seminar, performance, etc. please email
me at samarra_am_management@yahoo.com. It may be exactly what someone
has been looking for.
____________________________________________________
Any affirmations, suggestions, requests, job notices, teleseminars or
events please email me at samarra_am_management@yahoo.com.
Any comments regarding any of the weekly "Emotional Money" issues
please post and join in the conversation.
To unsubscribe to "Emotional Money" weekly ezine type in subject line
"unsubscribe Emotional Money." To unsubscribe to all notices regarding
Samarra Am Management events type in subject line "unsubscribe Samarra
Am Management."
