In an interview on WBZ-1030AM Radio in October, I was asked if I thought the changes in the bankruptcy laws were “fair.” My response: “ask me in a year.” Well, the Bankruptcy Abuse Prevention and Consumer Protection Act is here. As Gene Wilder gleefully shrieked in Young Frankenstein, “IT’S ALIVE!” One of the most important new requirements under the law is the need for get a “ticket” to the bankruptcy court. It’s not worth shrieking about, but it is worth making sure that consumers contemplating filing bankruptcy know about it.
Archive for December, 2005
And the Hits Just Keep on Coming…..
Wednesday, December 28th, 2005
It is bad enough that the new bankruptcy laws are making bankruptcy more arduous and expensive for debtors, but now Congress is set to stick it to debtors once again…by increasing filing fees.
As of October 17, BAPCPA’s increased filing fees for Chapter 7 cases went from $209 up to $274. Chapter 13 cases – which involve payment plans – actually went down from $194 to $189.
Now, a provision in the Deficit Reduction Act of 2005 increases filing fees for Chapter 7 cases another $25 to $299 and fees for Chapter 13 cases another $85 to $274. The biggest increase: Chapter 11 filing fees will jump from $1,039 to $2,789. Both the House and the Senate passed the bill but a procedural move in the Senate has sent the bill back to the House for another vote. The House is scheduled to vote on the bill when after it returns on January 31.
The effective date of the bill is 60 days after the President signs it. Mark your calendars accordingly.
Injunction Issued against Massachusetts Petition Preparer
Thursday, December 15th, 2005
This morning, while I was waiting for my case to be called, the US Bankruptcy Court in Boston issued a preliminary injunction against Bryon Martinez d/b/a Homestead Financial Corporation of Lynn, Massachusetts. The case is an Adversary Proceeding – a lawsuit filed in the bankruptcy court (Morse v. Martinez, Docket no. 05-1471) . The injunction prohibits him and his company from “preparing any bankruptcy documents for any person in any United States Bankruptcy Court in the District of Massachusetts …and from soliciting payment or receiving payment for providing any bankruptcy services or preparing any bankruptcy documents for any person in any [Massachusetts Bankruptcy Court].” The preliminary injunction is in effect until a full trial takes place.
According to the Complaint filed by the US Trustee, Martinez is a bankruptcy petition preparer (although not an attorney) who found his “clients” by combing through public records searching for folks who were facing foreclosure. He filed bankruptcy petitions on behalf of bankruptcy debtors, but did not disclose his status as a bankruptcy petition preparer (which is required by the US Bankruptcy Code). He would then tell his clients he would attempt to obtain refinancing of their homes, once the bankruptcy petition was filed.
Supreme Court Rules on Student Loans and Social Security Benefits
Wednesday, December 7th, 2005
Today, a unanimous Supreme Court ruled that the US government can offset Social Security benefits to collect delinquent student loans – even loans that have been outstanding for more than ten years.
The case is Lockhart v. United States.