This was first posted in March 2008. More than two years later, the housing market is still in the pits, and more folks are opting to simply walk away from real estate they can no longer afford. Little has changed. And I dare say, it’s getting worse (although those seeking relection this year might want to disagree). If you own a condo or are in a homeowners association, the 2005 changes to the Bankruptcy Code force you to take some new issues into consideration.
Archive for the ‘Chapter 7’ Category
Yet Another Reason to Avoid the Rip-Off of Debt Settlement
Thursday, August 19th, 2010
I was recently retained by a client who – like many people struggling nowadays – tried to tackle their mounting financial problems by going to a debt settlement company. I’ve said it once, and I’ll say it again: debt settlement companies are a rip-off. The proof is in how empty my client’s wallet is now, and where my client is now.
Debt: The Prices You Pay
Wednesday, August 4th, 2010
Some espouse the belief that if you’re up to your eyeballs in debt, it’s better to eat beans and rice for weeks, months and years until the debt is paid. I won’t mention names. This isn’t about them. While it’s pretty indefensible to live a lifestyle you cannot afford at the expense of creditors, it’s even worse to lead a lifestyle that can be downright counterproductive and harmful when you’re trying to pay your creditors. There’s being “super frugal” and then there is being “stupid frugal.” So today, I want to cover a few things I’ve noticed people doing while they are trying to pay down their debt. I sharing my observations, but I think it’s good if you consider it food for thought.
Still Think You Can File Bankruptcy Without An Attorney?
Tuesday, July 27th, 2010
Even though I have written and spoken publicly about the perils of representing oneself in bankruptcy, people still do it. I recently came across a case where a lawyer – with a boatload of legal problems – was sanctioned for essentially abandoning his clients during a bankruptcy case. But I’m not writing about that lawyer or what he did that got him into so much hot water with the Bankruptcy Court. Rather, what I write about today is what District of Massachusetts Bankruptcy Judge Melvin Hoffman had to say about the bankruptcy process, and the role of a debtor’s attorney. So if you’re still thinking you can or should go through the bankruptcy process alone, take a few minutes and read this.
Another Road to Failure: How Do I Qualify for Bankruptcy?
Friday, June 4th, 2010
Once again, the misinformation about bankruptcy permeates the world wide inter-webs like a smelly fart on a school bus in the summery humid weather like we’re having here today in Boston. But since analyzing this “information” is almost like shooting fish in a barrel, I’m able to take some time and again grade this really bad article entitled: “How Do I Qualify for Bankruptcy?”
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…)
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.
The Peculiar Parallel of Debt Relief Agencies and Madonna
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.
Birds flying high, You know how I feel
Back in September, I blogged about the conflict that exists with the rights of married same gender spouses to file a joint bankruptcy petition, and the conflict posted by what I have no problem calling the politically and legislatively ill-conceived Defense of Marriage Act. I felt then that it was – to get a bit personal here - another betrayal by the Clinton Administration (the first being “Don’t Ask/Don’t Tell”).
And just a few weeks ago, I met with a debtor contemplating bankruptcy who wanted to file a joint bankruptcy petition with his same-sex spouse. I advised him that he had two choices: one, is that he could focus on getting the relief from the debt that he had and work towards getting his discharge and getting on with his life. That meant separate petitions, separate cases, separate docket numbers.
Or the other: he and his husband could hunker down, prepare for a long (and not an altogether inexpensive) legal battle that may – or may not – end up at the U.S. Supreme Court – and he could revel in proving a point (although I can think of few bankruptcy debtors who by the time they arrive at the steps of any US Bankruptcy Court actually feel that they need to prove a point… other than the one that is rather obvious). Ultimately, same sex married couples have not enjoyed the benefit of filing a joint bankruptcy petition because the Defense of Marriage Act precluded such joint filings by same sex spouses.
But today, I’m feeling good. (more…)
Tags: Commentary - Legal, Consumer Rights, Defense of Marriage Act (DOMA), Joint Debtors
Posted in Bankruptcy, Chapter 11, Chapter 13, Chapter 7, Consumer Rights | 1 Comment »