Archive for the ‘Uncategorized’ Category

The Sunday News

A fellow bankruptcy attorney shared this article that appeared in last month’s New York Times Magazine.  I see in it some of the same difficulties I see in clients.  It also makes me question how “half-empty” the glass really is.  Although in the interest of full disclosure, the writer has a book coming out.  In other news…

ONE FLAG! Six Flags Amusement Parks files for Chapter 11 protection.

Nashua NH Telegraph:  Welcome to the New Consumer Economy.

Boston Herald:  Consumer spending may never be the same as it was.

South Coast: Home values could take years to recover.  We also could be hitting bottom (I’m not being sarcastic, it says the market “could be a reading a valley”).  I could also be a ledge (ok, that was sarcastic).

Nantucket foreclosures.  I wonder if these homeowners claim their loan was predatory?  I also have to question whether it was.

A bad apple is removed from the barrel: Brockton lawyer settles fraud suit with the Massachusetts Attorney General’s office.

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Coming Soon: Chapter 13 in 13 Chapters

chapter13coverI’m pleased to announce the soon-to-be published consumer bankruptcy manual: Chapter 13 in 13 Chapters. The manual is available exclusively through the American Bankruptcy Institute.   Pre-publication orders are being accepted now.

This manual provides a comprehensive overview of the chapter 13 process from the perspective of both debtors and creditors. Everything from filing preparation and debtor education to the role of the chapter 13 trustee to the discharge of debts is covered, as well as things to consider before a case is converted and when to modify the terms of a payment plan. Written by William J. McLeod and edited by M. Regina Thomas (McCalla Raymer, LLC, Atlanta, GA), the manual provides sage advice for the chapter 13 attorney regarding the timing of the debtor’s tax filings, anticipating and addressing a debtor’s change in circumstances post-confirmation, enforcing the debtor’s rights against a creditor’s collection activity, and post-discharge actions. Heavily peppered with case citations and key excerpts from relevant sections of the Bankruptcy Code, Chapter 13 in 13 Chapters is the essential reference guide that chapter 13 attorneys should have at their fingertips to assist in their practice and to share with clients to help explain the bankruptcy process.

To pre-order, please click here.

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The Recession is Not Over, Take 2

My good friend and my bookkeeper has told me that she has seen the economy declining for a number of years, based on what she has seen with her clients and their vendors.  “In fact,” she once told me “I can tell how bad it is really getting by how easy it is to find a parking space on Newbury Street.”

According to a report in today’s Boston Globe, the Pottery Barn is closing its Newbury Street store.

“It’s surprising to see some one like Pottery Barn go. But there’s been so many stores leaving,” said Debbie Greenberg, owner of upscale boutique Louis Boston, which is planning to vacate its landmark Newbury Street space by next spring for another neighborhood. “The rents went up so high, and then only the stores that could afford it came, making it look like the same street in Chicago and Dallas. It’s not original anymore.”

Looks like finding a parking space on Newbury Street just got a little easier.  And after Louis Boston moves, it perhaps will get even moreso.

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ABC News: “The Recession is Almost Over”

I kid you not.  According to ABC News:

There is a growing belief among financial experts that the recession is over.

Barry Knapp, a strategist at Barclays Capital, wrote recently that the economy appears “to be in the sweet spot of a recovery” and that the recession may have ended last month, according to Bloomberg News.

Liz Ann Sonders, chief investment strategist at Charles Schwab, said on “Good Morning America” today that she agrees with that conclusion

So far, there are a little over 200 comments to this story.  Most of them do not agree with the sentiments in the report.  I think it’s fair to count me in with those who do not agree.

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Twitter, Tweets and Twits

There is this whole Twitter craze going around, and I understand that it’s becoming the new hip way to market oneself in cyber-land.  I fear I sound too old for my age when I say that I really just don’t get it.

As I understand it, people can send 140 character messages, also referred to as “Tweets” that let “followers” know what they are doing or thinking.  I honestly cannot fathom who would be even remotely interested in my daily thoughts, musings or activities as they happen.

For example, today I noticed that one of my colleagues (and I use that term loosely) left a comment to the article on Filing Bankruptcy Without an Attorney.  Comments on this blog are moderated because occasionally, some are not appropriate.  This comment said the following: “Our attorneys have expertise, [sic] our firm goes beyond filing, [sic] we utilize every opportunity in Bankruptcy i.e. Avoid Liens on Property, Redemption, Selling real estate in Bankruptcy. For more details, log on [to our website].”  My colleague (again, used loosely) then proceeded to list out their firm contact information.  The comment left me feeling a bit put off.

I cannot imagine that as I was deleting the comment I would have the wherewithal to mention that I could not believe how infuriating it was that my colleague this dude opted to try and advertise his services here without even the courtesy of a voice mail message saying “hey, I know we have never been introduced but do you mind…?”.  And, I might add, especially the wherewithal to get it done in just 140 characters.

Then, there is this lunch program I attended today.  It was an informative and timely discussion on the role of mediation in bankruptcy cases (a topic I’ll be writing about in the coming days and weeks).  However, could I send a “tweet” about that?  Probably but not without missing something being discussed.  I can’t exactly say “hold that thought, I’d like to ‘tweet’ about it.”  Arguably, I could “tweet” that I wish that the room had better acoustics, but who cares about that?

So what would I tweet about?  There’s the “I just watched Attorney X get his head handed to him by the judge” tweet.  Or I could send this tweet: “I cannot believe how slow Trustee Y is with their creditor’s meetings today. Clearly they didn’t have enough coffee, and I’m going to be here all day.”  Neither are particularly nice Tweets, but these things could happen, and I could Tweet about them.  And I bet some people might feel a tad resentful.  Or bored.

The Tweeting could also end up being something mind-numbingly boring: “I just read a decision out of Florida that a mortgage prepayment may arise to a level of an avoidable preference.”  Or even worse:  “I’ve just scoured three years worth of bank statements.  It’s time for lunch!  And it’s stuffed peppers day at Pace’s!”  Might watching paint dry be more entertaining and informative?

In fairness, I have not ruled out Tweeting, but I am ensconced on the fence.  I do need to learn more about it and really think about whether it is something that my clients and my readers will benefit from…or if it is something that is not nearly as fun as watching paint dry.

It would help if you shared your two cents.  Please comment.  I promise I won’t delete it.  Unless of course, you’re selling something.  Sorry, but we cannot have any of that.  ;-)

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Filing Bankruptcy Without an Attorney

According to a New York Times article, more and more people are representing themselves in court.  I have had much experience counseling debtors who have initially elected to seek bankruptcy protection without the benefit of counsel.  There are many reasons for this: the lack of money to hire an attorney being one of them, if not the biggest.  Another, and perhaps more troubling reason is that pro see filers have a belief that a judge will help them through the process.

From the article:

Judges complain that people miss deadlines, fail to bring the right documents or evidence and are simply unprepared for legal proceedings. Such mistakes make it more likely they will fare poorly – no matter the merit of their cases.

This applies in any courtroom, and in any legal proceeding.  If you want to represent yourself, you have to be prepared.  That means, you have to know what the legal issues are (not what you think the legal issues are or should be) and have your ducks and documents all lined up.  It also helps if you know the law.

But relying on the judge to help your is tantamount to ignoring that the role of the judge actually is.  As the Times discusses:

Overseeing a proceeding where one or both sides lack lawyers puts a judge in a difficult position: The judge is supposed to be neutral but also has an interest in moving things along.

“If you see a person making a terrible mistake, you can’t always jump in and save them,” said Judge Borbely, the circuit court judge in Vermilion County, Ill. “You cannot take the role of an advocate.”

To ensure fair outcomes, courts must do more to help people navigate the courts, said John T. Broderick, the chief justice of New Hampshire. “If you and I went to the hospital and they said, ‘Do you have insurance?’ and we don’t, and they said, ‘There are some textbooks over there with some really good illustrations,’ ” Judge Broderick said, “we would think that was immoral.”

At the same time however, while courts can and do offer navigation assistance (such as the Pro Se Clerk at the US Bankruptcy Court), they cannot offer legal advice and the judges cannot be your advocate.

(more…)

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Is Everyone ‘Subprime’?

That’s the question being asked by the folks over at Calculated Risk in light of a report issued today by the Office of the Comptroller of the Currency and the Office of Thrift Supervision.

More here:

Calculated Risk

Office of the Comptroller of the Currency and the Office of Thrift Supervision

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Victims of Foreclosure

I’ve written about it here before, and it’s worth repeating: the economy and the looming foreclosure crisis is affecting not only families. Pets are also feeling the effects.

From today’s Boston Herald:

The first wave of foreclosure-related pet surrenders arrived on [Boston's Animal Rescue League's] South End doorstep early last year, but soon after owners began just kicking pets out of the house, or driving away from foreclosed homes and leaving them behind.

If you’re facing financial difficulty, I implore you: please do not abandon your pet to fend for itself.  They will not be better off if left behind.  They will not be better off if dropped off at the side of the road.  Call a local shelter and get help with adoption.

And please, if you can help the Animal Rescue League, please do.

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Today’s News…

FHFA announces a mortgage modification progam. Details are here. More here. Time will tell if this is just more hoopla.

Citigroup announces a moratorium on foreclosures in certain circumstances:

It said it won’t begin a foreclosure or complete a foreclosure sale on a home on which it owns the mortgage so long as the borrower wants to stay in the home, which is his or her principal residence; “is working in good faith with Citi, and has sufficient income for affordable mortgage payments.”

What does “sufficient income for affordable mortgage payments” mean? If the income is not sufficient, how can the payments be affordable? And if the payments are not afforable, is it really because the income is not sufficient? So…. okay, perhaps I am overthinking it.

In other news, the Filene’s project at Downtown Crossing is not the only local contruction project that is now stalled.

And finally, when discussing the state of the economy, it appears that more and more people are using the “D” word.

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Hey, I’m just the messenger…

As the Senate begins to vote on the bailout, and as Washington and even some local leadership continues its campaign of fear mongering support, here’s some food for thought, courtesy of the good folks over at Calculated Risk:

As of Sept 30th, the national debt was $10,024,724,896,912.49.

What’s another $700,000,000,000?

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