Archive for March, 2010
Friday, March 26th, 2010
I was recently talking with… I guess I could refer to him as ‘an entrepreneur.’ He was a former mortgage broker who found himself down on his luck after the real estate market tanked. Among the things he said to me was that he did not like bankruptcy at all. I asked him if he filed bankruptcy and had a bad experience with it – and he said no on both counts.
“So then what do you base your feelings about bankruptcy on?” I asked.
“Well, it kills your credit score, and I just don’t like it” he replied.
Initially, I thought it was an odd response. Now that I’ve had a few weeks to kick it around in my head, I think it is more than odd – it’s very ill-informed.
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Tags: Bankruptcy, credit, Credit Report
Posted in Bankruptcy, Chapter 7 | 4 Comments »
Thursday, March 25th, 2010
Others fear bankruptcy.
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Tags: Economy
Posted in Bankruptcy, Chapter 11, Chapter 13, Chapter 7 | No Comments »
Wednesday, March 24th, 2010
I’ve been reading many interesting comments online about yesterday’s Supreme Court ruling in Espinosa. Some of my colleagues are suggesting that this is a huge win for consumer debtors. I think Mr. Espinosa is justifiably happy. I’m not sure creditor’s attorneys are happy. I’m think debtor’s attorneys can be happy, sort of. I think Bankruptcy Judges might have something to be concerned with… and if it concerns Bankruptcy Judges, it ought to concern me.
And it does.
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Tags: Cram Downs, Creditors Rights, Student Loans, Supreme Court
Posted in Bankruptcy, Chapter 13, Creditors Rights | 1 Comment »
Tuesday, March 23rd, 2010
In another unanimous decision relating to an important bankruptcy issue, the US Supreme Court today ruled that a student loan creditor’s failure to object to confirmation to a chapter 13 plan was fatal to the creditor’s post-discharge attempts to collect the debt.
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Tags: Chapter 13 Trustee, Creditors, Creditors Rights, Student Loans, Supreme Court
Posted in Bankruptcy, Bankruptcy Litigation, Chapter 13, Creditors Rights | 2 Comments »
Wednesday, March 17th, 2010
I received a call today from a client what we in the biz refer to as a “Soldiers and Sailor’s Notice.” I had met this caller a few weeks ago – and at that time, was told that the home mortgage and loan were “in review” by the lender and servicer. The caller was confident that a modification would be offered – and it would be one they could live with. I have “I’ll believe it when I see it” view. But today, the caller had this notice – which was found tied to the front door knob by a rubber bank. The caller’s question for me: “what does this mean?” (more…)
Tags: foreclosure prevention, HAMP, modification, Modifications and Workouts, Mortgages and Foreclosures
Posted in Foreclosures and Real Estate | 3 Comments »
Friday, March 12th, 2010
Yesterday, I was discussing a “Debt Relief Agency” as it is defined in the Bankruptcy Code. Part of the angst I have with the whole debt relief agency provisions is that I am – by definition – only a debt relief agencies to “assisted persons.” Debt relief agencies have certain specific obligations… but only to “assisted persons.” Before I continue writing, I’m going to take some aspirin; this analysis made my head hurt.
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Tags: attorney, Bankruptcy Abuse Prevention & Consumer Protection Act of 2005, BAPCPA, debt, Debt Relief Agencies, Supreme Court, Unexempt assets
Posted in Bankruptcy | No Comments »
Thursday, March 11th, 2010
In yesterday’s blog, I suggested that some attorneys – namely on Craigslist – were not complying with the BAPCPA imposed requirement that they disclose that they are a “debt relief agency.” That might not have been completely fair.
Certainly, when an attorney fits into the definition of a “debt relief agency”, they must disclose that fact and are obligated to comply with additional disclosure requirements. But, if an attorney does not fit into the definition of a “debt relief agency”, may they still represent individuals in consumer bankruptcy matters? The answer is yes… and that raises some interesting questions.
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Tags: attorneys, Bankruptcy Abuse Prevention & Consumer Protection Act of 2005, BAPCPA, Craigslist, Debt Relief Agencies, Exemptions, Petition Preparers and Fees, Unexempt assets
Posted in Bankruptcy, Chapter 11, Chapter 13, Chapter 7 | No Comments »
Wednesday, March 10th, 2010
As I mentioned earlier this week, the US Supreme Court issued a ruling upholding the BAPCPA requirement that attorneys be considered “debt relief agencies.”
So we’re clear: I did not go to debt relief agency school. I went to law school. I’m not a member of the Boston Bar Association Debt Relief Agency Steering Committee; it’s the Bankruptcy Steering Committee. I’m not a member and author for the American Debt Relief Institute; it’s the American Bankruptcy Institute. I’m not a debt relief agent. I’m an attorney.
Now that I’ve cleared the air on that, let me share with you some of my concerns with this decision and its implications.
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Tags: Bankruptcy Abuse Prevention & Consumer Protection Act of 2005, bap, Craigslist, debt relief, Debt Relief Agencies, Exemptions, Supreme Court, Unexempt assets
Posted in Bankruptcy | No Comments »
Monday, March 8th, 2010
Have you see advertisements for bankruptcy attorneys and seen this phrase?
Has a bankruptcy attorney ever said to you “sorry, we cannot advise you to incur debt because you’re seeking bankruptcy protection”?
Ever wonder why? Well, wonder no more. This morning, the Supreme Court of the United States issued its decision in the case of Milvatez, Gallop & Milavetz, P.A., et al. v. United States. The high court has held that (1) attorneys who give bankruptcy assistance (as defined in the Bankruptcy Code) are debt relief agencies; (2) attorneys cannot advise clients to incur debt because they are filing bankruptcy. The decision is 35 pages, and I’ll be reading through it this week.
Read the decision here.
Tags: Bankruptcy Abuse Prevention & Consumer Protection Act of 2005, BAPCPA, Supreme Court
Posted in Bankruptcy | 1 Comment »
Thursday, March 4th, 2010
This first appeared on May 27, 2008. Unfortunately even today, there are people looking to scam those who can least afford it. If you’re facing foreclosure or know someone who is, this is an important read.
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Tags: Consumer Scams
Posted in Bankruptcy, Consumer Rights, Foreclosures and Real Estate | No Comments »
