Book Club Chat With Nora Raum
"Bankruptcy is a mystery to most people," writes Nora Raum, who has practiced law for nearly 20 years, specializing in personal bankruptcy. "They hear the word now and then, usually in connection with some huge corporation. But they have no idea what it means to people like them."
The answers to that mystery might be available during my online chat at noon ET today, when Raum joins me as my guest. Her book "Surviving Personal Bankruptcy" (Gotham, $20.00) is the Color of Money Book Club selection for October. She is also a newscaster for National Public Radio.
If you missed the piece about her book, you can read it in my Oct. 9 column, "When Bankruptcy Becomes Personal." If you can't be online at noon, submit a question or comment early.
More on bankruptcy:
Transcript of live discussion on bankruptcy law changes, Oct. 11
FindLaw resources on bankruptcy changes
"Bankruptcy Filings Soar in Advance of New Law," Caroline E. Mayer, Oct. 5
"A Rush to Beat Bankruptcy Deadline," Terence O'Hara, Oct. 15
It's Going to be a Cold and Costly Winter
In today's Color of Money column I answer a reader's question and concerns about rising energy costs.
"How scared should we really be about the price of gas in heating our homes this fall and winter?" a reader asked. "I've heard horror stories about how expensive it will be. I'm worried. Please tell me I'm wrong.''
As you probably know, she isn't wrong. Times are going to get tight for a lot of folks as they see their energy bills skyrocket this winter.
But there are some things we all can do to save on our energy bills. Read the column and find out.
And if you haven't been keeping up with the rising energy prices, read these Post stories:
"Inflation in Sept. Highest Since '80," Oct. 15, 2005. Post staff writer Nell Henderson reports that Hurricanes Katrina and Rita helped make energy prices soar in September at the fastest rate on record, contributing to the highest monthly consumer price inflation in 25 years.
"This Winter, Every Little Bit of Warm Will Help," Oct. 13, 2005. Special contributor Jeanne Huber answers a question from a reader about the steps homeowners can take to control heating costs that will really give a significant payoff.
"Gas and Oil Heating Costs to Soar This Winter," Justin Blum, Oct. 13
"Plugging Those Heat Leaks," Jeanne Huber, Oct. 20
Late Fee Reprieve
Tired of late fees on your credit card bill?
No problem. There's a new credit card out there that won't charge late fees for late payments.
Ah, but there is a catch.
As Post reporter Caroline E. Mayer wrote this week ("No Late Fees, but Watch Out for Late Rates") the offers for these new cards warn that late payments could trigger an increase in the interest rate charged on balances as well as a negative ding on your credit report.
Read Mayer's report and let me know what you think of these kinder, gentler no-fee cards? Send an e-mail to colorofmoney@washpost.com. In the subject line put "No Late Fees."
More resources:
Credit card publications from Consumer Action
Credit card and consumer loan information from the FTC
Financial Fact & Fiction
Myth: Laura Whalen of St. Louis asked: "I have heard that if one spouse has access to a 401(k) through work and the other does not, the spouse who does not have access cannot make a post-tax contribution to an IRA and get a tax deduction. But I have also heard that the spouse who doesn't have access can contribute up to $4,000 post-tax to an IRA before filing taxes for that year and get some kind of deduction for that. Which is true?"
Fact: Jim Dupree, spokesman for the IRS, can clear up the confusion. He points out that if one spouse participates in a qualified employer retirement plan -- such as a 401(k) plan -- and the other spouse does not, the spouse that does not participate in an employer-sponsored retirement plan may be able to make a deductible IRA contribution.
The IRA contribution is fully deductible if the spouse files a joint return and his or her modified adjusted gross income (AGI) does not exceed $150,000 (the deduction is phased out if the modified AGI is greater than $150,000 but less than $160,000).
For more information about this issue get IRS Publication 590, "Individual Retirement Arrangements" (PDF file).
If the spouse files a separate return, the IRA contribution is fully deductible if modified AGI is less than $10,000 (see pages 12 and 13 of the document). Of course, the spouse also must be otherwise eligible to make an IRA contribution by meeting the age and compensation requirements (see pages 6 to 9 of the document).
Have you heard conflicting information about a financial issue? If so, send me any "Money Myths" that you want cleared up. Send your question to colorofmoney@washpost.com. Put "Money Myth" in the subject line.
You are welcome to e-mail comments and questions to singletarym@washpost.com. Please include your name and hometown; your comments may be used in a future column or newsletter unless otherwise requested.
