Through Twitter, I came across this article “How to File Chapter 13 Bankruptcy Without a Lawyer.” Since I wrote a book about chapter 13 – where I emphasize the need for competent representation – and, since I am also a lawyer, the title alone intrigued me. So I clicked and read the article. Then, I got steamed because not only was the article excruciatingly inaccurate, in some instances it was flat out wrong. So, I’ve copied and pasted each of the “9 Steps,” and offered my response and I grade each answer.
Archive for the ‘Bankruptcy’ Category
Cheap Becomes Expensive
Tuesday, May 18th, 2010
Like many attorneys, I get calls from prospective clients asking me what my fee is for a bankruptcy filing. It’s not a particularly difficult question to answer – in theory. But at the same time, it is. Generally, I know that if their concern is price, then who they retain as their attorney is not all that important to them. But I also get calls from prospective clients who have or had another (and less expensive) attorney who now is not performing at what they believe is an acceptable level. Perhaps they aren’t returning calls. Perhaps they are not giving straight answers to honest questions. Or perhaps better said, the cheap attorney doesn’t know what the hell they are doing. The desire to go cheap has now turned into something expensive. (more…)
When the Nest is not Empty: Some Food for Thought for Parents Struggling with Debt
Thursday, April 29th, 2010
Over the last several months, I’ve have met a number of parents seeking advice about bankruptcy. While every family has its own unique set of circumstances, all of these people I’m referring to are homeowners, and all have been struggling making mortgage payments. All have adult kids living at home. And let’s face it – if they are sitting across the table from me – a bankruptcy attorney – things aren’t going so well.
Some have kids who have graduated from high school, college or graduate school, and they are still living at home. Some are working, some are not. Some kids are working, while going to school part time. Others cannot find employment or are under employed.
I will inevitably ask one question: “Is [the adult child who is working full time or even part time] contributing to the household income?” If, the answer is “no”, there might be some bigger problems.
E.D.Michigan Caps Petition Preparer Fees
Friday, April 23rd, 2010
I came across this interesting order issued on Tuesday, April 20th by the US Bankruptcy Court for the Eastern District of Michigan. The Administrative Order caps the maximum allowable fee charged by a bankruptcy petition preparer in any case to just $100.
It Was 5 Years Ago Today
Tuesday, April 20th, 2010
Five years ago today – at approximately 2:42pm in the afternoon, I was using a elliptical machine at the gym. The news showed then President George W. Bush about to sign into law the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, or what we commonly refer to as BAPCPA or “the 2005 Act.”
He then gave these remarks (which I read on the closed captioning):
Can Declaring Bankruptcy Improve Your Credit Score?
Monday, April 19th, 2010
Clients will almost always ask me what the impact a bankruptcy filing will have on their credit score. Usually, the question I am asked is “will I ever be able to get a loan again?”
In all my years of practicing bankruptcy law, the response has never changed. It will depend on two things: that which the client can control, and that which the client has no control.
A client who has filed bankruptcy should use credit wisely after bankruptcy. Got a car payment? Always be on time. Got a mortgage payment? Never be late and always pay the amount in full. Check your credit report at least twice per year and look for incorrect entries and take prompt action to see that they are corrected. These are the things a client can control. But that alone will not help a client get access to credit.
When Bankruptcy Attorneys do a Wicked Bad Job
Tuesday, April 6th, 2010
I’ve been doing a lot of research lately on attorney malpractice… specifically, bankruptcy attorney malpractice. More and more attorneys are popping into bankruptcy practice because they think it’s the new growth area. And sadly, some are doing a god-awful job at it – and in some cases, they are hurting debtors. So in my research, I came across this case that came down last Friday out of the Northern District of California.
What caught my eye about it was the opening sentence: “[t]he schedules filed in this Chapter 7 case by [debtors’] attorney …contained horrific omissions, including a furniture store filled with furniture, a $13,000.00 bank account, a 2008 Mercedes automobile, and real property.” [emphasis added]. As I read the decision, I learned that the term “horrific” was justified, and then I wondered to myself…’how many other lawyers are out there doing the exact same thing as this guy?’
Why Not Wipe The Slate Clean?
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.
Blackberries & Form-Fillers: What Bankruptcy Practice is Really About
As I continue to work through (in my mind) the issues raised by the proposed auction at 115 Cottonwood in Fairhaven, I recall attending a seminar where one of the speakers remarked that consumers have become “Blackberried.” Specifically, the speaker mentioned that clients had a tendency to send via Blackberry or email a specific legal question, and then call within 10 minutes or so wondering why no response to the question had been provided. The speaker remarked at how clients wanted information “now” – but lawyers on the other hand, sometimes need time to think and analyze before responding.
The same can be said for certain practice areas. For many years, I thought that consumer bankruptcy practice was just completing forms and filing them. Many, many years ago, before I embarked out on my own an old friend and colleague from law school told me that the only way to practice bankruptcy law successfully was by “volume.” That might have been true (way) back then, before BAPCPA was enacted, but it’s not the case now. And it cannot be.
When I got out of law school, the thought of being a bankruptcy lawyer never entered my mind. In fact, it was the last thing I wanted to do. I viewed it as little more than completing forms. Over time, I learned that I was wrong.
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Tags: attorneys, Commentary - Legal, Petition Preparers and Fees
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