Bankruptcy

Lending to Unemployed: Frankly, There?s Got to be a Better Way

Posted on November 18, 2009
Yesterday I tweeted about Barney Frank?s idea of giving unemployed homeowners access to low interest loans.  The theory is that it help fills a gap in the Obama Administration?s plan to address foreclosures caused by unemployment.  I think this is a bad idea (and a bit of mid-term election posturing)...

Security Clearances & Bankruptcy

Posted on November 13, 2009
Occasionally, clients will ask me about whether their security clearance is at risk if they file for bankruptcy protection.  This came up yesterday when I came across a comment from a reader who expressed real concerns over his fear of losing his clearance if he filed...

November 11: Today We Remember

Posted on November 11, 2009
"Today we remember and honor the past service of America's veterans, and today we renew our commitment to meet the challenges of America's future for which they gave so much. Almost two centuries ago, Daniel Webster said in his dedication of the monument at Bunker Hill: 'There remains to us ...

Honesty and Bankruptcy, Part III: The Reality Check and the Boy Scout

Posted on November 02, 2009
In the last two entries, I shared my observations of honesty and dishonesty in the bankruptcy process.  It has been an issue that has been crawling under my skin for many months now.  And in this last installment of Honesty and Bankruptcy, I explain why that is...

Honesty and Bankruptcy, Part II: Feeling Dishonest

Posted on November 02, 2009
It seems that many people are hypersensitive over H1N1.  I was at the market yesterday and an older man sneezed, and by the looks on the faces of those standing around him, you?d have thought someone nearby was pointing and shrieking that he was a leper...

Honesty and Bankruptcy, Part I: Day of the Living Dishonest

Posted on October 31, 2009
When rapper Chris Brown beat up his then girlfriend Rhianna, there was an odd reaction from much of Hollywood.  As Adam Carolla and Dr. Drew were recently discussing on Carolla?s podcast, Hollywood?s reaction ? especially at red carpet events ? seemed less than honest and at times downright pathetic...

Another Reason Why Going Pro Se is a Bad Idea

Posted on October 21, 2009
There are many reasons that people choose to represent themselves (what is referred to as pro se) rather than hire an attorney.  Rarely are any of them good reasons.  To a lay person, I realize that this sounds almost disingenuous coming from someone who is an attorney ? but the ...

When You Discover that You Are a Creditor in a Bankruptcy Case?

Posted on October 19, 2009
Last week, I was in the clerk?s office and overheard two people ask the clerk which forms needed to be filed in a bankruptcy case.  But this person was not a debtor ? they were a creditor.  Their landlord had filed bankruptcy.  The former tenant was looking for their security ...

Cutting Corners in Chapter 13

Posted on October 19, 2009
While sitting in US Bankruptcy Court yesterday waiting for my client?s case to be called, I observed a hearing that I think is worth sharing.  The chapter 13 bankruptcy debtor was represented by an attorney, but the attorney wasn?t there.  The debtor was there, and was prepared to present and ...

I Was Wrong About BAPCPA

Posted on October 19, 2009
Five years ago Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act ? and at that time, I couldn?t understand what ?abuse? Congress was trying to prevent.  As a matter of fact, I penned an op-ed in the Boston Globe expressing my hope that Congress would not pass the ...

I Am a Twit. Maybe.

Posted on October 19, 2009
Remember a few months ago when I openly mocked Twitter and those who tweeted?  Well, after much convincing and research, I?ve decided to take the bold step to explore whether I was wrong.  I have no problem admitting I was wrong.  I think. Twitter is that nifty social networking site that ...

Social Networking Sites and Bankruptcy: The Intersection is Dead Ahead

Posted on September 30, 2009
There are a growing number of social networking sites out there on the world-wide-interwebs that people are latching onto.   In fact, both the firm and I have latched onto Facebook (we just lauched our Fan page this week!).  So I was intrigued after recently reading that a growing number of ...

The Elephant in the Room: Married Same-Sex Debtors

Posted on September 22, 2009
The decision to seek bankruptcy protection is never easy, and when two people are involved, it is not necessarily easier.  Married opposite-sex debtors have the option of seeking bankruptcy protection jointly in one case.  But as a growing handful of states recognize same-sex marriages or its legal equivalent (?unions?), and ...

Lessons of a Life Lived: Senator Edward M. Kennedy

Posted on September 01, 2009
Over the last several days, much has been written about Ted Kennedy.  As a young lad growing up on Cape Cod, the Kennedy?s were an undeniable part of my life.  And while I did not take to the street to witness the motorcade that traveled up from Hyannis ...

Power(lessness)

Posted on August 14, 2009
When the money stuff is not going the way you hoped, or planned, there can be a sense that things are just beyond your control.  And sometimes they are.  Sometimes people lose jobs, get sick or get divorced.  Sometimes bad things happen to good people...

If Only You Knew?

Posted on August 13, 2009
Let's assume that you work for a company and things are not going well.  You start negotiating a severance.  Does the employer have an obligation to share with you its intention to seek bankruptcy protection?  Maybe.  If you ask.  But what if you don't ask?  What if they don't tell?  ...

A Discussion About ?Professional Courtesy?

Posted on August 12, 2009
A few months ago, I terminated representation of a particular client.  There are many reasons representation ends ? and from a factual standpoint, they are no one?s business except me and the client.  The reasons for that are quite simple: I am duty bound to keep the confidences of my ...

Proactive v. Reactive: Start Talking

Posted on July 29, 2009
It can be difficult to deal with oppressive debt, especially when it can feel that there are no options.  It can leave you feeling embarrassed and vulnerable.  When it comes to older folks, that embarrassment and vulnerability can be heightened for a variety of reasons...

?Extend and Pretend? Doth Not A Modification Make

Posted on July 29, 2009
Today?s editorial in USA Today chides lenders for playing the ?extend and pretend? game with mortgage modifications.  The piece is one of the first of what I hope is a larger chorus of supporters of amending the Bankruptcy Code to permit modifications on residences...

Unintended Consequences in Estate Planning

Posted on July 29, 2009
Remember yesterday when I discussed talking to your parents about their debt?  I think it?s important for families to start talking.  I also think it may be important for parents to speak to their adult children about debt, especially when you hear what happened to a client of mine...

Reactive vs. Proactive

Posted on July 24, 2009
I?ve mentioned that sometimes it?s better to proactive than reactive.  Being proactive is calling a bankruptcy attorney when you sense that the barn out back may be a fire hazard.  Being reactive is calling a bankruptcy attorney when the barn is burning, you can?t remember where you put the garden ...

NY AG Seeks to Vacate 100,000 Judgments

Posted on July 23, 2009
Way back in 2005, I wrote about a need to reform our state rules on returns of service.  You'll find that article here.  In August of 2006, then Mass. Bar Association President Warren Fitzgerald wrote a column in the Boston Globe also calling for reform based on the failure of ...

Thinking About a Consult?

Posted on July 23, 2009
Today, as I found myself on the phone repeating myself - a lot.  It then occurred to me that I could probably explain how our consult process works here on the website.  In other words, how do you get from reading this website and digesting the information to getting some ...

Feeds

Posted on July 23, 2009
I've learned that some readers who have signed up for the RSS fees or email updates may not be receiving new posts as they appear.  We're working on the issue - and we should have it fixed soon. -Bill

Things I Won?t Do

Posted on July 23, 2009
Among the many reasons why I blog on this site is to give people a perspective of me that will help them decide whether I am the right attorney for them.  Sometimes the things I write about concern my legal expertise in bankruptcy, and other times, I blog about my ...

Property Insurance and Chapter 13

Posted on July 23, 2009
If you're thinking about Chapter 13, it's important for you to know that your real property (real estate) must be insured.  Increasingly, I am finding that homeowners are allowing their policies to lapse.  This poses a problem - especially for debtors who wait until the last ...

July 4, 2009

Posted on July 23, 2009
On February 9, 1775 the English Parliament declared Massachusetts to be in a state of rebellion.  Several weeks later, on March 23rd, Virginia lawyer Patrick Henry attended a meeting of the colony's House of Delegates held at St. John's Church in Richmond...

?20 Months Too Late?: Let?s Start Rethinking Mortgage Modifications in Chapter 13

Posted on July 23, 2009
I've been thinking about yesterday's blog entry.  When I first read the First Circuit decision, I wondered why the case was brought.  Here was a homeowner arguing that a mere technical violation of TILA would enable him to rescind a mortgage that he signed 20 months prior...

20 Months Too Late

Posted on July 23, 2009
When a homeowner refinances their mortgage, the lender must give certain notices under the federal Truth in Lending Act, also referred to as TILA.  For a number of good reasons, homeowners must be given a notice that informs them of their rights to rescind their mortgage...

We?re on Facebook!

Posted on July 23, 2009
Readers know about my hesitancy about getting on the Twitter bandwagon.  I'm still questioning its usefulness for bankruptcy attorneys like me.   Certainly, Twitter's role in getting out information out of Terhan this past week has demonstrated its usefulness...

Wondering What a Bankruptcy Attorney Really Does?

Posted on July 23, 2009
Thursday I was in Bankruptcy Court waiting for my client's case to be called.  Before the judge took the bench, a gentleman sat behind me and tapped me on the shoulder. "You a bankruptcy lawyer?" he asked. "I am." "How easy is it for me to convert my case from Chapter 13 to ...

This is Suze Orman...

Posted on February 10, 2009
Last fall I shared my thoughts about Dave Ramsey. The blog article brought in more comments than I usually get. I've had my eye on Suze Orman ever since I happened to catch her CNBC show over the holidays. James Scurlock has written an article over at Slate...

As the Economy Turns...

Posted on January 28, 2009
Today, my Bankruptcy Colleague and fellow-blogger Jonathan Ginsberg wrote about The Psychology of Debt Collection: Avoid the Manipulation. The Boston Globe reports that the Massachusetts Attorney General has filed a bill to slow down foreclosures. But the legislation would only protect those in "risky" loans...

Another Foreclosure Workshop Planned

Posted on January 27, 2009
From the Boston Globe: The Federal Reserve Bank will sponsor a second workshop aimed at preventing foreclosures by bringing borrowers and lenders together to find alternatives. The workshop, scheduled for February 14 at the Connecticut Convention Center in Hartford, is modeled after a successful event held at Gillette Stadium in Foxborough in August...

Monday's News...

Posted on January 26, 2009
There's so much going on in the news that it almost seems silly to repost it here. But I did come across a few items that I wanted to share. In the UK, Debt Collectors are ?getting heavy.? A plan to let homeowners modify their mortgages in bankruptcy may lower foreclosure rates by as much as 20 percent...

Before Foreclosure Rescue Scammers Start Knocking...

Posted on January 23, 2009
I came across an interesting story (and video) over at CNBC.com: Fraud at your Front Door which discusses foreclosure rescue scam artists who are knocking at the front door of homeowners facing foreclosure. I have met clients who have told me they have been approached by individuals how have been at their doors offering assistance...

Student Loans: The Financial Shackles of Higher Education

Posted on January 20, 2009
Debtors with student loans have an often insurmountable burden in proving their loans are dischargeable in bankruptcy. Section 523(a)(8) requires them to show that the loans are an undue hardship and an example of how the definition of ?undue hardship? lacks any common sense can be found here...

As the Economy Sinks, Bad Debt Collectors Rise to the Surface

Posted on January 16, 2009
The pace of foreclosures has been slow since there?s a moratorium on Freddie Mac and Fannie Mae mortgages. That however, is not stopping collectors for other consumer debts getting more aggressive. Today?s Boston Herald reports that credit card delinquencies are on the rise, and collection agencies may be stepping up their collection efforts, and even crossing the line...

So You Think It's a Good Time to Buy a House?

Posted on January 12, 2009
Contrary to what you may hear in advertisements, 2009 may not be a good time to buy a home unless you are planning on living there for several years. This bit of news is not actually a huge shock for me, but it is not helpful for several of my clients whose success depends ? at the very least ? on people buying real estate in 2009...

Mortgage Modification Legislation Update: Citigroup Supports the Bill

Posted on January 08, 2009
Big news out of Washington, from the Washington Post: Financial giant Citigroup Inc has agreed to support a controversial rewrite of U.S. bankruptcy law aimed at helping troubled mortgage borrowers, three Democratic senators said on Thursday. Senators Richard Durbin of Illinois, Charles Schumer of New York and Christopher Dodd of Connecticut said the legal reform would help "millions of families save their homes...

Keep the Bankruptcy Option on the Table

Posted on January 06, 2009
The new Congress will be introducing legislation that will allow homeowners in bankruptcy to "cram down" their mortgages on their principal residences. When a home is worth less than the amount owed on the mortgage (or as I typically see, mortgages), a cram down will enable the homeowner to reduce the amount owed to the value of the property...

2009: Perchance to Dream

Posted on December 31, 2008
New Years is a time when many make resolutions. Some resolve to quit smoking. Some resolve to lose weight. The list of resolutions is endless. Personally, I think many resolutions are pretty useless. I didn?t stop smoking because of a resolution (but I did quit...

Furnishing Tax Returns to Creditors

Posted on December 29, 2008
Among the changes to the Bankruptcy Code was the added requirement that debtors provide a copy of their federal income tax return/transcript to trustees, and if requested, creditors. The code provides that the case shall be dismissed if the returns are not disclosed timely manner...

Christmas 2008

Posted on December 24, 2008
The last time I wrote a Christmas blog was 2006. While trying to gather my thoughts this Christmas, I re-read that blog entry. After reading it, I decided it was best to simply point to it. The message is the same. The reasons why I wrote it then have not really changed...

A Difference We Can Make This Holiday and in the Years Ahead

Posted on December 16, 2008
When I was in my third year of law school, I adopted two female kittens from a local shelter: Annie, a 9 month old yellow short hair, and Cissie, a 6 month old grey and brown tabby. Their impact on my life has been immeasurable. Annie had these big, brown, doe-like eyes...

Patrick Administration Provides New Resource to Assist Tenants Impacted by Foreclosure

Posted on December 16, 2008
FOR IMMEDIATE RELEASE BOSTON ? December 9, 2008 ? As part of the Patrick-Murray Administration?s ongoing response to the foreclosure crisis, the Executive Office of Housing and Economic Development and the Office of Consumer Affairs and Business Regulation, with support from Massachusetts Housing Partnership, released a brochure outlining the rights and responsibilities of tenants living in foreclosed buildings...

A Holiday Shopping Tip (or Warning)

Posted on November 26, 2008
With Black Friday soon upon us, and the holiday shopping season, I want to get a message out to those folks who are struggling. Perhaps there are folks who know they are going to lose their jobs after the New Year. Perhaps there are folks who have been using credit to get by and now see a bankruptcy petition on the horizon...

Why Bankruptcy Lawyers Require Fees Before Filing

Posted on November 25, 2008
There really is a good reason. And to help prove my point, I turn to an October 2008 decision out of the US Bankruptcy Court for the Eastern District of Pennsylvania: In re Mansfield. In that case, the court was called upon to ask what it viewed as a ?deceptively simple question:? may an attorney who charges a ?flat fee? for services pursue the uncollected balance due? In this case, the attorney charged a flat fee for preparing the necessary documents and schedules, but also for attending the first meeting of creditors (which occurs after the case is filed)...

When Things Go Very Wrong

Posted on November 24, 2008
Last week I received a phone call from someone who wanted to know about the status of a bankruptcy case. It was not their bankruptcy, rather the case of another person. Apparently, the caller was a creditor of the bankruptcy debtor. The caller had a case pending in state court and wanted to know if the claim was discharged in the bankruptcy...

Today's News...

Posted on November 11, 2008
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...

November 11: Today We Remember

Posted on November 11, 2008
"Today we remember and honor the past service of America's veterans, and today we renew our commitment to meet the challenges of America's future for which they gave so much. Almost two centuries ago, Daniel Webster said in his dedication of the monument at Bunker Hill: 'There remains to us a great duty of defense and preservation, and there is open to us also a noble pursuit to which the spirit of the times strongly invites us...

What's Your House Worth?

Posted on November 09, 2008
When I confer with a client who is facing the prospect of bankruptcy to protect their home, I have many important questions. One of them is ?what is the value of your home?? The answers are usually varied, and in most recent situations, clients have only old or not useful information...

Hope is Not a Strategy

Posted on November 03, 2008
In the last several months, people in precarious financial circumstances who are either facing bankruptcy or are already in bankruptcy are basing their financial recovery strategy on one thing: hope. They hope the mortgage company will work with them...

Changing Chapter 13: Some Facts on the "Pandora's Box"

Posted on October 23, 2008
There?s been some press about a proposed change to chapter 13 that would permit debtors to modify the mortgages on their primary residence. Yesterday, I attended the briefing at the State House given by Rep. William Delahunt where the need for the legislation was discussed...

Pop-Financial-Guru: My Take on Dave Ramsey

Posted on October 22, 2008
I?ve often wondered why people wait so long before they file bankruptcy. Like, for example, wait until the morning that their house is scheduled to be auctioned. Wait until they know the tow-truck is coming to take their car away. Then, I wondered if Pop Culture?s Financial Gurus had anything to do with it...

Debtor Can't Reopen Case to Enforce Discharge. Yet.

Posted on October 15, 2008
In an October 3 decision, a Massachusetts Bankruptcy Court ruled that a debtor could not reopen her chapter 7 bankruptcy to commence an adversary proceeding to enforce the discharge. The debtor was involved in an auto accident in 2003 which resulted in the death of another person...

US Trustee and Capital One Reach Settlement

Posted on October 02, 2008
From the US Trustee Program press office: The U.S. Trustee Program (USTP or Program) announced today that it has entered into a settlement agreement with Capital One Bank (USA) N.A. (Capital One) that, if approved by the United States Bankruptcy Court for the District of Massachusetts, will resolve USTP allegations that Capital One sought to collect debts that had been discharged in prior bankruptcy cases...

Hey, I'm just the messenger...

Posted on October 01, 2008
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...

Good Faith and Bad Art

Posted on September 29, 2008
In bankruptcy, good faith is a lot like good art. It is difficult to describe, but you know it when you see it. The same can be said with bad faith. A recent chapter 13 case out of the 9th Circuit illustrates that point. The debtor filed a chapter 13 case in August 2004...

Mortgage Modification Update: Not so Hopeful

Posted on September 18, 2008
Are you hoping that your mortgage company will "work with you" and modify your loan? Good luck. On August 12, there was a Free Foreclosure Prevention Workshop at Gillette Stadium. I have heard a number of different perspectives from people who attended...

10th Circuit: Legal Interest Acquired Post-petition is Property of the Estate

Posted on September 17, 2008
When someone files bankruptcy, an estate is created. The property in the estate is defined in the Code, and it is the property in the estate that is used to pay creditors. But how do you value property of the estate if the nature of the interest held in the real estate changes after the petition date? On Friday, the 7th Circuit Court of Appeals answered that question...

Storm Preparation: Only So Much

Posted on September 17, 2008
Over the last several months, I?ve blogged about issues people should consider if they think bankruptcy is on the horizon. I called it ?Storm Preparation? because I have sensed for some time now that financially, things were going to get worse, and I wanted readers to think about issues ahead of time to avoid problems down the road...

WhatsaMatta with WaMu?

Posted on September 09, 2008
So yesterday I received this letter from WaMu: Dear William McLoud [sic]: Our customer (my client) informed us of his/her intent to file (chapter 7) bankruptcy. We realize this decision was not an easy one. We would like to resolve this matter and offer an alternative that may minimize the negative impact that filing for bankruptcy can have on your client?s credit and employment opportunities...

Overspending and Bankruptcy

Posted on September 03, 2008
I was motivated to blog after reading about a study out of the University of California, Davis that claims that overspending is what leads people into personal bankruptcy. Over-spending. Should we congratulate them for mastering the obvious? Don?t get me wrong, I know that people spend more than they can handle (this might actually come as a tremendous surprise to the folks at UC?but many businesses, and governments, such as the federal government of the United States, do the same thing)...

Storm Preparation: Plan B

Posted on September 03, 2008
Recently, I have foun that it is more chapter 13 clientsl contact mes within just a few weeks of a foreclosure auction. Sometimes, it?s just a few days. And even sometimes it is the next (or even the same) day. Never before have I spoken to them. Never before have they contemplated bankruptcy...

Today's News...

Posted on August 20, 2008
While many might be on vacation, I was too busy to pull together a Storm Preparation for today. I did however manage to find a few news items. Remember Filene?s? This gaping hole? which looks like England after WWII - is about a block from my office...

Are Short Sales Just Silly?

Posted on August 15, 2008
It?s a question I have been asking myself of late. A Short Sale is when a lender (the mortgagee) agrees to release the mortgage from the property so that it may be sold to a buyer for less than when is owed on the mortgage. I am hearing that many people are exploring short sales as a means of ?avoiding foreclosure...

The Easy Life of a Consumer Bankruptcy Attorney

Posted on August 14, 2008
Every now and then, I get a call from someone who already has a bankruptcy case pending. Sometimes, they do not like how things are going with their attorney. Other times, they don?t have one at all and find that they are in over their head. And sometimes, by the time they are calling me, they find themselves in what can best be described as a world of hurt...

Storm Preparation: Letting Go and Moving On

Posted on August 13, 2008
I write the Storm Preparation series for those folks out there who are considering bankruptcy but just aren?t there yet. I know they are out there because they tell me ? usually weeks and months after following this blog (and doing their own research and homework) and getting the courage (or in some cases a summons to appear which prompts them) to call...

Equal and Monthly Payments: The Voyage of the Balloon

Posted on August 11, 2008
May a debtor propose a chapter 13 plan that provides for the payment of mortgage arrears with regular monthly payments followed by a balloon payment at the end of the plan? So far, the answer is still no (although the issue is still working its way through the courts)...

Late Filing of Documents = Dismissal

Posted on August 07, 2008
One of the goals of BAPCPA (the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005) was to prevent abuse by debtors. One of those abuses targeted were ?repeat filers? and another was the failure to file documents. If schedules and other documents are not timely filed, the court is obligated to dismiss the bankruptcy case...

Free Foreclosure Prevention Workshop

Posted on August 06, 2008
We are passing this information along. People who attend are encouraged to let us know how or if they found the help they need. HOPE NOW Alliance in partnership with NeighborWorks® America, The New England Patriots Charitable Foundation and the Federal Reserve Bank of Boston will host a foreclosure prevention workshop at Gillette Stadium on Tuesday, August 12, from 1:00 PM ? 8:00 PM...

Storm Preparation: Over Withholding

Posted on August 06, 2008
Many people over withhold taxes on their paychecks. In other words, they have more taken out so that come April 15, they will expect a nice refund rather than having to pay more to Uncle Sam. But over withholding can make preparing for a bankruptcy filing a little difficult...

"Stated Income" Loan Discharged Despite False Representations on Application

Posted on August 01, 2008
One of the focuses of my bankruptcy practice is litigating Adversary Proceedings. I came across a case out of the Northern District of California. The first sentence under the heading of ?Summary of Facts? read: ?[t]his adversary proceeding is a poster child for some of the practices that have left to the current crisis in our housing market...

Thursdays news...

Posted on July 31, 2008
The look on his face says it all: the story behind that stray 44-pound cat from New Jersey is actually not so funny any more. Next stop, Wonderland: who will think about the dogs? Are we in a recession? Yes, we are. No, we?re not! Yes, we are!

Storm Preparation: Chapter 13 and DSOs

Posted on July 30, 2008
When BAPCPA was enacted, a new concept in bankruptcy law emerged: ?domestic support obligations? or "DSOs". Child support, alimony and other support obligations received specific consideration in bankruptcy, and in particular, chapter 13. If you are looking at the potential of a bankruptcy filing, there?s something you need to know about how domestic support obligations and chapter 13 work together...

Storm Preparation: Some Thoughts on What We Can Do

Posted on July 23, 2008
I didn?t sleep well last night. I tuned into the 11 o?clock news and learned about a Taunton homeowner in foreclosure who committed suicide on the day her home was scheduled to be auctioned. Since Wednesday is Storm Preparation day, the news story prompted me to get down to the nitty-gritty of things: reaching out...

Tuesday's News...

Posted on July 22, 2008
Shocker: BAPCPA put more profits into the pockets of credit card companies says Harvard Law Professor Elizabeth Warren. Yesterday I blogged about honesty in the bankruptcy. Today, there?s a report out of Wichita of a former debtor who was not so honest...

A Shakedown Backfires

Posted on July 21, 2008
This week?s Newsweek has a great article on the abusive tactics debt collectors are increasingly using. The article is called "A New Shakedown? and it?s worth the read ? especially in light of the shakedown a creditor recently pulled in a Nebraska bankruptcy case...

Honesty Goes A Long Way

Posted on July 21, 2008
Today I received a call from a prospective client who was upset with their current bankruptcy attorney. They claimed that their current attorney was not giving them accurate advice, specifically, that the attorney had informed them that information pertaining to a non-filing spouse?s income and expenses was not needed to prepare a bankruptcy filing...

Lessons in Loan Modifications

Posted on July 17, 2008
Suze Orman is growing on me. Sort of. She often has sage advice for consumers, and lately she has been making regular appearances on CNN?s Larry King Live. I cannot say I completely agree with everything she says, but lately, she has been telling it like it is and when it comes to financial news and advice, it's refreshing to see some honestly on TV...

Who's Happy about this Economy?

Posted on July 16, 2008
Yesterday, I met with a couple where we discussed their need to file bankruptcy. The husband expressed embarrassment at their decision to file and (like many of my clients) expressed concern that their employer or coworkers could learn about it. I did not think it was a possibility, and I told them so...

IndyMac Update: Foreclosures are halted

Posted on July 14, 2008
From Reuters: The Federal Deposit Insurance Corp has temporarily halted any foreclosures on the $15 billion of bank-owned mortgage loans found in IndyMac's portfolio, FDIC Chairman Sheila Bair said on Monday. Hat tip: Calculated Risk.

Hope Floats (or Sinks)

Posted on July 14, 2008
We?re hearing a lot about ?hope? lately. Recently, I met two people in seemingly hopeless financial situations who are relying on hope to get them through. There is hope. Then there is denial. And sometimes, it can be difficult to see the difference between the two...

Rumor Control: TheStreet.com gets it wrong.

Posted on July 10, 2008
With the limited exception of realizing while in court that I have worn two different colored socks and I am convinced that everyone can tell, there?s nothing that drives me more nuts than exaggerated and half-baked claims about bankruptcy. A recent article on TheStreet...

Charge (not so) Smart

Posted on July 09, 2008
Housing Wire reports that there is a new company that will allow consumers to use their credit cards to pay their mortgage payments. ?Our offering is perfect for the individual who may experience an unexpected lifestyle change such as a temporary income interruption or fluctuation,? said Mitch Friedman, co-founder of ChargeSmart, ?or for the savvy consumer who wants to earn rewards for the ease of using his or her credit card for payment...

?I Need to Get Through the Winter?

Posted on July 07, 2008
For weeks I have wondered what impact the high price of home heating oil was going to have on people who need it. Would it push them into bankruptcy (or worse)? Since it is usually an accumulation of things that leads one to file bankruptcy, there is no clear way I can predict that the price of oil is going to push people over the financial edge...

In CONGRESS, July 4, 1776

Posted on July 04, 2008
The unanimous Declaration of the thirteen united States of America, When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation...

Inaccurate Schedules Lead to Discharge Denial

Posted on July 02, 2008
There is any number of ways that a debtor can get a discharge denied, and certainly, I have blogged about them here. One of the big ones is the most obvious: lying. I came across a recent case out of the Southern District of New York that should serve as a warning to all debtors ? and especially to those debtors who think they can file bankruptcy without an experienced bankruptcy attorney...

Storm Preparation

Posted on July 02, 2008
As I write this, there is loud thunder clapping outside. I did not bring an umbrella to work. Obviously, I am not prepared today. And unfortunately, I'm too busy to put together a respectable Storm Preparation blog today. So I'm going to take a short break from that for both this week and next...

The 401(k) in Chapter 13

Posted on July 01, 2008
In a recent decision, a Massachusetts Bankruptcy Judge ruled that a Chapter 13 debtor may deduct contributions to a 401(k) retirement plan while in bankruptcy. It?s a ruling anyone contemplating chapter 13 should pay attention to. The debtor?s schedules listed his gross income as $9,666...

Walking Away from the Mortgage and the Home? Consider this?

Posted on June 27, 2008
Some homeowners are giving up on the thought of keeping their home. There are a number of reasons for this. And if you are among the many homeowners contemplating walking away from their home, and the mortgage debt, you should consider a few things...

Game Over: Chapter 13 Debtor Sent Packing to State Court

Posted on June 26, 2008
A chapter 13 can be dismissed for lots of reasons: there is no money to fund a plan, the plan cannot be confirmed, or (as I discussed yesterday) tax returns have not been filed. A chapter 13 may also be dismissed for another important reason: the case was not filed in good faith...

Storm Preparation: Bankruptcy & Tax Returns II

Posted on June 25, 2008
When I was in college, Hurricane Gloria was bearing down on Southern New England. I went to stay with my grandparent at their house in Tiverton. As the winds were blowing (and at the insistence of my grandmother), we nailed plywood to the windows that faced the water...

Where Did It All Go?

Posted on June 19, 2008
Keeping good financial records is always a good idea and if you?re filing bankruptcy, having good records on hand will help your case go smoothly. As married debtors in the Western District of Pennsylvania recently learned, not having them can lead to a denial of the Chapter 7 discharge...

Storm Preparation: Acceptance

Posted on June 18, 2008
The fifth ? and last stage of the Kubler-Ross grief process is acceptance. In researching and preparing for this blog, I had one nagging question in my head: how the heck do we get there? How does someone get to a point where they accept that they must seek the protection of a US Bankruptcy Court from their creditors? The answer is simply not easy and the only way I think I could describe it to you is to share my own journey through grief?and how I got to acceptance...

Sunday news...

Posted on June 15, 2008
MSNBC presents the Housing Bubble in Four Chapters. Over at Calculated Risk, there's some news about Sunday board meetings, which "are never good news." And over at the Washington Post: Anatomy of a Meltdown: The Credit Crisis (hat tip, Calculated Risk)...

News for a Friday the 13th...

Posted on June 13, 2008
From CNBC: Those $600 "economic stimulus"/"loan on next year's tax refund" checks: they are going to keep us out of a recession. For now (but what do you do if your bills are more than $600?). From Bloomberg: Foreclosures up 48% in may and repossessions have doubled...

Fake Accident Claim Leads to Nondischargeable Debt

Posted on June 12, 2008
Bankruptcy is available for honest debtors who have found themselves in unfortunate circumstances. Not every debtor is honest, nor is every debtor in unfortunate circumstances is entitled to bankruptcy. Take the case of William Berrien: I presume he was in unfortunate circumstances because he found himself in need of money...

Storm Preparation: Depression

Posted on June 11, 2008
Our journey through the Kubler-Ross model takes us to stage four: depression. If I wrote that people who are overwhelmed by debt may be depressed, and implied that this might be some new-found discovery, some might congratulate me on my mastery of the obvious...

Massachusetts Debt Collector Gets Sanctioned by Florida Bankruptcy Court

Posted on June 10, 2008
A Massachusetts debt collector along with the creditor has been sanctioned by the bankruptcy court in Florida for violating the discharge injunction. On April 4, 2007 Olson filed a Chapter 7 petition in the US Bankruptcy Court for the Southern District of Florida...

8th Circuit: Failure to Stop Abuse is not a Willful Injury

Posted on June 09, 2008
This recent bankruptcy court decision is not an easy one to discuss, and I'll warn my readers up front, this may not be an easy read. The case posed this question: Can a mother who allowed her child to be abused to the point where it lead to his murder escape the penalties for his wrongful death in bankruptcy? I know what my heart said...

Reaffirming Mortgages

Posted on June 06, 2008
When a debtor ?reaffirms? the debt, they are removing that debt from the bankruptcy process. They are agreeing to pay the debt, even though it would be otherwise discharged. For the reaffirmation to be enforceable there must be an agreement which must comply with the bankruptcy code and it must be filed and in some cases approved by the bankruptcy court...

High Income Debtor Gets Chapter 7 Relief

Posted on June 05, 2008
There are these nasty rumors being spread around that bankruptcy is no longer available to people. I hear ? time and time again ? that people think bankruptcy is not available because of the ?means test? or because it?s ?harder to wipe away debts.? A recent decision out of Bankruptcy Court for the District of Nebraska involving a debtor with a high household income confirms otherwise...

Storm Preparation: Bargaining

Posted on June 04, 2008
Of the five stages of the Kubler-Ross Model that people facing bankruptcy go through, the most potentially problematic is the third stage: bargaining. I suggest that this stage might invite the most problems because it is here that debtors do anything and everything to avoid bankruptcy...

Mass AG Sues Option One

Posted on June 03, 2008
Massachusetts Attorney General Martha Coakley's office has brought suit against Option One. From the press release: Today, Massachusetts Attorney General Martha Coakley?s Office filed a lawsuit in Suffolk Superior Court against Option One Mortgage Corp...

Storm Preparation: Stage Two, Anger

Posted on May 28, 2008
This week the focus is on anger, the second of the five stages of grief. People in a debt crisis might be angry at themselves, their family members, their political leaders or the local mortgage broker. There might also be a whole host of regrets that come to the surface as well: they might regret buying the house, the car or taking that new job they just got laid off from...

Predators in our Midst: A Warning for Homeowners Facing Foreclosure

Posted on May 27, 2008
I know that attorneys and other professionals may send written solicitations to homeowners who are facing the possibility of foreclosure. However, I have heard that there are unscrupulous individuals who may be posing as attorneys or are providing bankruptcy ?assistance? when in fact, they are not qualified to do so...

Hoping to Modify a Loan with Countrywide?

Posted on May 21, 2008
You might be interested in this from Housing Wire: Countrywide['s] CEO mistakenly replied directly to a troubled homeowner?s form hardship letter, characterizing it as ?disgusting.? Specifically, in response to a form hardship letter from one Daniel Bailey, Mozilo wrote: This is unbelievable...

Storm Preparation: Stage One, Denial

Posted on May 21, 2008
As I mentioned last week, Storm Preparation is covering the five stages of grief as it applies to bankruptcy. Denial is the first of the five and is the first stage we?ll cover in this series. Denial has been interpreted as ?a conscious or unconscious refusal to accept facts, information, reality, etc...

Section 523(a)(8): Reality v. Student Loans

Posted on May 20, 2008
It is exceptionally difficult ? and for many, impossible ? to discharge student loans in bankruptcy. Section 523(a)(8) exempts such loans from discharge unless the debtor can show that exempting the debt from discharge will ?impose an undue hardship on the debtor and the debtor?s dependants...

I Have a Bone to Pick with a Credit Union

Posted on May 19, 2008
I also have a bone to pick with the firm they have retained for collections. I?m not going to name them ? for now. But I am compelled to share what happened to a former client. This client filed chapter 13 in 2000. The credit union didn?t file a proof of claim on time...

A Lesson in Exemptions

Posted on May 16, 2008
In May 7 decision the First Circuit Court of Appeals ruled that a debtor was limited to the amount of his stated objections. For those thinking of preparing cases on their own, or for others with perhaps different motives, the case teaches a good lesson: you reap what you sow...

Did Congress Pop the Balloon?

Posted on May 15, 2008
A chapter 13 debtor proposes a plan to pay creditors over a period of time. Their creditors may include credit cards and utilities, and as in most cases I deal with, prepetition mortgage arrears. In some cases, debtors simply make a monthly payment to the chapter 13 trustee over the life of the plan...

Storm Preparation: The Stages

Posted on May 14, 2008
I?ve of written about the emotions that one goes through when contemplating bankruptcy. In one of my older blog postings, I harkened back to a cold February day where I had to put my 16 year old cat to sleep. There were a plethora of emotions that filled that experience, and some of which were the same that I see in my clients who are facing debt problems...

Audits Have Returned

Posted on May 13, 2008
In January, the Executive Office of the US Trustee announced that audits of consumer debtor cases were suspended due to budgetary constraints. On May 9, the US Trustee program announced that it was resuming random audits. Originally, 1 out of every 250 cases filed in a judicial district could expect to be selected...

Storm Preparation: Stop Using Credit

Posted on May 07, 2008
By the time many people contact a bankruptcy attorney, their credit card balances are already high ? if not at their limit. Sometimes, when there is room to spare on the balance, it can be tempting to use credit if a bankruptcy filing is down the road...

The Case of The Dream Pool

Posted on May 06, 2008
I recently read a bankruptcy court decision concerning a very serious matter: nondischargeability of a debt. While serious, there was also a bit of humor in it. The facts of this case were just too good not to share. The Plaintiffs were homeowners who wanted to have a swimming pool...

Pro Se Perils: No Ticket and No Excuse

Posted on May 05, 2008
There seem to be debtors everywhere who think they can file bankruptcy without an attorney. Of course, in many, many cases, debtors only end up causing themselves greater problems. A case out of the Eastern District of Pennsylvania proves my point. The debtor in that case got his case dismissed because he did not received the requisite credit counseling...

Storm Preparation: Look at your Debt and Plan Accordingly

Posted on April 30, 2008
Since the housing bubble that is deflating or exploding (depending on your perspective), it is becoming more and more common for debtors seeking to reorganize to be seeking bankruptcy protection. To be a chapter 13 debtor your debt cannot exceed a certain amount...

Not Huge and Very Stupid: A Discharge is Denied

Posted on April 29, 2008
I have been asked by clients if they can avoid having to list all of their credit cards on their bankruptcy schedules. The answer is simple: ?no.? However, they must list all of their debts. And if you owe the credit card company money, you must list it on your bankruptcy schedules (open lines of credit are not debts, although no debtor should expect that an inactive line of credit will survive a bankruptcy filing)...

Things To Think About on a Thursday

Posted on April 24, 2008
I believe there are folks who believe that I am a huge Negative Nancy when it comes to talking about the economy. So much so, that they do not even want to bring up the subject around me. As I have mentioned: I am not an economist. I did not do well in economics while in college...

Storm Prepration: Do Not Transfer Property

Posted on April 23, 2008
I cannot tell you the number of times I have heard prospective clients tell me something like this: ?I have been wanting to file bankruptcy for several months, but I wanted to put my house into my relative?s name first.?When I hear that, I usually cringe...

Today's news...

Posted on April 22, 2008
If you're trying to get a loan modification, you might be interested in this from the LA Times. Condo owners take note: your neighbor's financial woes might become your own. See the Miami Herald for more. Which reminds me, if you own a condo and are hoping to refinance, you might be interested in this Boston Herald article...

What would you do....

Posted on April 18, 2008
Very often, I find myself speaking to debtors and wondering what I would do if I were in their shoes. This week, I spoke with a debtor who has had a chapter 13 case pending for about a year and was representing himself. The debtor was facing a Motion for Relief from Stay for failing to make post-petition mortgage payments, although the plan payments were current...

When Parents are in Debt

Posted on April 17, 2008
Parents ? like all of us ? get older. Parents ? like all of us ? are human. And parents ? at times ? find themselves in a financial mess. Over the years, I have had a chance to represent older debtors, and in many cases, that representation resulted from the urging of their children...

Storm Preparation: Talk to Your Kids

Posted on April 16, 2008
When I was growing up, I was never made privy to my parents? financial affairs. I never knew if things were ?bad? (primarily because we were lead to believe they always were ?bad?) and we never really knew if they were ?good? (if for no other reason, because we assumed it was bad)...

This Debtor Knew When to Fold

Posted on April 11, 2008
When people gamble, they can win. But let?s face it: not often. When they lose, they can lose big. When is a gambler entitled to relief under the Bankruptcy Code? While the answer is not entirely black and white, a February 29 decision out of the Northern District Ohio sheds some light on the issue...

Storm Preparation: Payment Advices

Posted on April 09, 2008
Since the 2005 Bankruptcy Act, debtors have had to gather and provide their attorneys more documentation. There are a variety of documents that debtors need to collect, but the class of documents that is often difficult to put one?s hands on at the last minute is pay stubs...

Poster Children for Bankruptcy Reform

Posted on April 08, 2008
There has been so much written about BAPCPA and the creditors who practically wrote the law and got it passed. While I cannot doubt that creditors ? such as the good folks at MBNA (which was bought out by Bank of America), paid their lobbyists millions of dollars for years to get the Bankruptcy Code changed, a recent case perhaps rightly suggested that lenders had good reason to seek a change in the law...

The Insider View of Friendship

Posted on April 04, 2008
When is a ?friend? an insider and when is an ?insider? a friend? That was a question that a Kansas Bankruptcy Court had to struggle with in the case of In re Tankersley. The chapter 7 debtor?s friend (Anne) paid about $21,000 on the debtor?s mortgage...

Would-a, Should-a, Could-a.

Posted on April 03, 2008
Everyone has found themselves saying that at one time or another. Perhaps it was the regrettable decision of a particular business venture (or business partner), or perhaps it was ordering the chicken salad special, rather than a turkey club. Or, perhaps, you happened to be joint debtors who recently learned what can happen when you do not do what you should have and could have done...

Storm Preparation: Bankruptcy & Tax Returns

Posted on April 02, 2008
There are many important aspects of filing bankruptcy and getting the relief that the bankruptcy code offers. In setting the stage for filing bankruptcy and getting the relief you need, debtors need to be aware of some important obligations: the need to file tax returns.

A Word of Caution: Foreclosure Prevention Counselors

Posted on March 27, 2008
There are a number non-profit organizations in Metro-Boston (and state wide) that provide mortgage and foreclosure assistance to homeowners facing foreclosure. Over the last several months, I have personally encountered situations where these (for lack of a better term) foreclosure prevention counselors have actually caused more harm than good (or at least have the potential to)...

Todays news....and a New Series

Posted on March 26, 2008
First, the news... When a storm is coming, it's not uncommon for New Englanders to stock up on bread and milk. According to today's Financial Times, banks are apparently stocking up on cash. Does the FDIC's announcment that it plans to add 140 new workers in anticpation of bank failures have anything to do with it? New home sales fell to a 13-year low in February...

Today's news...

Posted on March 25, 2008
A friend passed along this story from today's Boston Globe: "Going Into 'survival mode.'"" The report takes a look at the ways people from all over the area are cutting back on monthly expenses as the anxiety over the economy continues to rise. It's worth the read...

Co-Debtor Stay in Chapter 13: The Debtor's Business

Posted on March 24, 2008
People own businesses: corporations, LLCs or other types of formal or informal business entities. When those people need to file bankruptcy, does the automatic stay that takes effect immediately upon filing also extend to those wholly-owned companies? The Bankruptcy Court in the Southern District of New York ruled on that issue on February 8, 2008...

Housing Discrimination Judgment: Non Dischargeable

Posted on March 21, 2008
The US Bankruptcy Court in Worcester was recently called upon to answer this question: may a landlord who discriminated against a prospective tenant because of the tenant?s Section 8 status discharge the judgment in bankruptcy? In a February 11, 2008 decision, the answer was a resounding ?no...

Today's News...

Posted on March 21, 2008
From FoxBusiness: a look at the legislation Congress is mulling over to give bankruptcy judges more authority to modify residential mortgages. Have you ever heard those radio commercials touting "debt elimination?" It usually has an announcer proclaiming that "my plan does not reduce your debt, it eliminates it!" One commercial in particular on a local station also has a speaker who says "using this system, I will be able to pay my 30 year mortgage in just three years making only the money I am making now...

Honesty: Truly the best policy

Posted on March 20, 2008
If you think you can get away with not being honest with your bankruptcy lawyer, think again. In a January 31 decision out of the Southern District of Mississippi, a bankruptcy attorney has been required to turn over his complete file to his client?s adversary and testify...

Preferences: What are they?

Posted on March 18, 2008
Companies and consumers who find themselves with financial pressures often borrow money from family and friends to make ends meet with the hope that bankruptcy can be avoided. But if bankruptcy cannot be avoided, there may be a motive to pay back those family members and friends who helped out before filing the petition...

Thoughts on When to "Walk Away"

Posted on March 14, 2008
There are many reports of struggling homeowners ?walking away? from their properties. If you own a condominium, shares in a cooperative or a lot or home in a housing association (which I?ll refer to here as ?real estate?) and you?re contemplating walking away and bankruptcy, an amendment to the Bankruptcy Code may influence many of your decisions...

When Mortgage Brokers Request Secrecy

Posted on March 13, 2008
Earlier this week I was talking with a client who let me know that their home was headed into foreclosure. I was a bit surprised to hear this because I had been led to believe that there was no problem making the home mortgage payments, only the other debt (which included other real estate)...

Mortgage Modification in a Chapter 13 Bankruptcy

Posted on March 12, 2008
A recent Massachusetts Bankruptcy Court decision set forth the standard that the majority of Federal Circuits have adopted: a bankruptcy debtor may avoid a wholly unsecured lien on the home. The case involved a debtor who claimed their home was worth $370,000...

Another Reason to Avoid "Debt Settlement"

Posted on March 11, 2008
I have written about so-called "debt settlement" companies that tout a benefit of paying off your debt quicker and cheaper. In the long run, consumers are left with less money and still at the door of the bankrutpcy court. From the March 6 issue of Business Week: The booming business has caught the attention of prosecutors and regulators, who say such programs can leave consumers in worse financial shape...

Today's News....

Posted on March 11, 2008
From the Globe: Massachusetts bankruptcy filings are up 22% from last year. Massachusetts Democrat Barney Frank presents his case for a housing rescue. The slowing economy is not keeping gasoline prices from creeping up and up.

Unauthorized Post Petition Transfer Leads to Denial of Discharge

Posted on March 09, 2008
Transferring real estate while contemplating bankruptcy can raise some issues. But transferring real estate after the bankruptcy case has been filed without the permission of the bankruptcy court is a big ?no no.? And as a debtor in learned in a February 11 Bankruptcy Court ruling out of Worcester, it can raises some serious problems...

Today's News....

Posted on March 08, 2008
From today's Boston Globe: Brokers at Lehi Mortgage Services Inc. have been accused of fraud by the Massachusetts Attorney General. Lehi Mortgage "engaged in a widespread practice" of submitting false information about bank accounts and incomes that "it knew or should have known were inflated," the attorney general's suit said...

6th Circuit Orders Turnover of Tax Refund

Posted on March 08, 2008
The Bankruptcy Appellate Panel in the 6th Circuit affirmed an Ohio Bankruptcy Court order requiring the debtors to turn over their tax refunds to the chapter 7 trustee. The debtors filed their chapter 7 case in March 2005 and their meeting of creditors was approximately two months later...

"Let Bankruptcy Judges Step In"

Posted on March 06, 2008
Congress is trying to move a bill that woujld give bankruptcy court judges more power to modify mortgages. From Law Professor Lynn LoPucki in today's Atlantic Journal Constitution: ...the bankers want to negotiate in an environment where they, not neutral bankruptcy judges, have the final say...

Today's News...

Posted on March 05, 2008
Countrywide is not having a particularly good week. The New York Times reports that the US Trustee for the Southwest Region has brought suit in Miami against the mortgage company with claims it is abusing the bankruptcy process. Today's editorial in The New York Times points out that despite a White House-backed mortgage industry group formed to help homeowners, these homeowners are not getting the help they need...

Failure to Turnover Tax Refund Leads to Discharge Revocation

Posted on March 04, 2008
In January, the 8th Circuit Bankruptcy Appellate Panel affirmed a bankruptcy court ruling that revoked the discharge of a debtor who kept his tax refund. The debtor filed his petition on October 10, 2005 and his meeting of creditors took place about one month later...

US Trustee Sues Countrywide

Posted on March 03, 2008
The United States Trustee has filed suit in the US Bankruptcy Court in Atlanta seeking sanctions against Countrywide Home Loans. From the New York Times: ?Countrywide?s failure to ensure the accuracy of its pleadings and accounts in this case is not an isolated incident,? Donald F...

Today's News...

Posted on March 03, 2008
From PalmBeachPost.com: Family pets and animal shelters continue to feel the strain of the foreclosure crisis. Has someone given you a Sharper Image gift card? That's a bummer. As Congress debates some amendments to the bankruptcy code, there's news that bankruptcy filings spiked in February...

Gambling, Gamblers and Bankruptcy

Posted on February 26, 2008
There are many things that bring people into bankruptcy. More than a few times, I?ve represented people who have had something in common: a gambling problem. There are unique legal and practical issues that face gambling debtors. But before I get into my professional perception of things, let me share with you some personal experiences...

Good News and Bad News

Posted on February 22, 2008
Bad news: Check this out at Calculated Risk: Moodys: 8.8 Million Homeowners Underwater From Boston.com: Mass. foreclosures rise 128% in January Good News: T.G.I.F. (sorry, that's all I got... enjoy your weekend).

Things Are Going to Get Worse Before They Get Better...

Posted on February 14, 2008
I have a message to all of those folks out there who are hoping that the economy will get better, that their mortgage company will ?work? with them, or that the government will do something to help them through the financial quagmire they find themselves in: the sun is not going to come out tomorrow...

Truth & Consequences Continued: Georgetown Study contradicts Mortgage Bankers Association Analysis

Posted on February 07, 2008
According to a study released by the Georgetown Law Center, ?there would be ?no or little? impact on home-mortgage interest rates if Congress moves ahead with pending legislation -- H.R. 3609, The Emergency Home Ownership and Mortgage Equity Protection Act of 2007) and Senate (S...

Thanks for Letting Us Know. Now what?

Posted on February 07, 2008
Many times we hear that it is exotic mortgages with resetting ARMS that are fueling the sub-prime foreclosure melt-down. A new report from the State Foreclosure Prevention Working Group suggests something far more nefarious. "A significant percentage of subprime adjustable-rate loans are delinquent before they experience payment shock from their first adjustment, reflecting weak underwriting or fraud in the origination of the loan," the report concluded...

Truth and Consequences: The Bankruptcy Debate Continues

Posted on January 29, 2008
The Mortgage Bankers Association which represents the real estate finance industry is apparently not pleased with a report by the Center for Responsible Lending which urges reforms to the US Bankruptcy Code. According to David Kittle, the Chairman Elect of the MBA: Policymakers should ignore this report as it is more rhetoric than fact...

Today's News...

Posted on January 22, 2008
The Dow has dropped 10 percent since January 1. Some of the victims of the sub-prime mortgage mess are bigger than a bread box, have more than two legs and are very innocent. Ohioans are wondering the government is to blame for the sub-prime foreclosure mess...

There?s No Money for Audits

Posted on January 22, 2008
The Executive Office of the US Trustee announced that it has suspended designation of bankruptcy cases subject to audit. The reason? Congress provided no funding in the FY 2008 Consolidated Appropriations Act. Read more here.

Destroyed Documents leads to Denial of Discharge

Posted on January 15, 2008
Thinking about filing bankruptcy? Do you have a paper shredder or know a friend with a dumpster? You should know that a US Bankruptcy Court judge in Boston recently ruled that a Chapter 7 debtor was not entitled to a discharge because documents had been destroyed...

Is Countrywide Fabricating Evidence?

Posted on January 08, 2008
Today?s New York Times is reporting that Countrywide Financial ?fabricated documents related to the bankruptcy case of a Pennsylvania homeowner.? Apparently, the documents were letters addressed to the homeowner claiming that $4,700 was owed. Countrywide?s local counsel told the bankruptcy court that the letters were ?recreated...

When Your Mortgage Company Files Bankruptcy

Posted on December 26, 2007
The foreclosure crisis sweeping the nation is also sending some mortgage companies into financial ruin, leaving many folks caught in the middle. Last week the Federal Trade Commission issued a new publication giving consumers advice on what to do if their mortgage company files bankruptcy...

The US Trustee v. Countrywide

Posted on November 28, 2007
It has been reported that the US Trustee has subpoened records from Countrywide Financial, one the largest mortgage lenders - if not the largest. According to CNNMoney.com (and a New York Times report), in two separate bankruptcy cases in Southern Florida, the debtors objected to Countrywide's claims of what was owed on their home loans...

The News Today...

Posted on November 25, 2007
If the Federal Reserve cuts rates, mortgage payments should decline, right? Perhaps not. Today's Boston Globe also reports on foreclosure rescue scams. And finally, may Bostonians have noticed the number of new condominium construction projects that have sprung up over the last few years...

A Thanksgiving Message for My Clients and others...

Posted on November 20, 2007
I imagine it is very hard to think of Thanksgiving when foreclosures in Massachusetts continue to rise. I think I am safe saying that it's going to be hard for me to think of it, since I'll be likely thinking about the work I am not getting done while I am visiting family...

Deutsche Bank Gets a Kick

Posted on November 15, 2007
On October 31, a US District Court judge sitting in the Northern District of Ohio issued a decision involving Deutsche Bank?s attempts to foreclosure on a number of properties in Ohio. The bank claimed that the federal court had jurisdiction because there was diversity of the parties: the parties resided or had a principal place of business in different states, and the amount in controversy exceeds $75,000...

The Two Edge?s of BAPCPA?s Sword

Posted on November 13, 2007
There?s been a lot of debate over how unfair BAPCPA (the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005) is on consumer debtors. Some of that debate can actually be found on this site. There have been aspects of BAPCPA that I have called silly, and some that we have to question the logic on...

Bad Decisions and Hard Lessons: What happens when you should know better?

Posted on November 13, 2007
Last week, the US Bankruptcy Court in the Western District of Kentucky ruled that a Chapter 7 debtor?s credit card debt was not dischargeable because the debtor used a card that should have been closed. The debtor and the plaintiff divorced in 2003 and as a part of the divorce, the parties agreed to pay their own credit card debt as well as hold each other harmless in the event of default...

Nasty Debt Collector, WaMu Responds, and BAPCPA

Posted on November 08, 2007
Houston-based LTD Financial Services got slapped with $1.3 million in civil penalties to settle FDCPA violation charges. Washington Mutual issued a press release in response to the action filed by the NY Attorney General. We reported on that action earlier this week...

Rumor Control: Credit Reports and What's Dischargeable in Chapter 7

Posted on November 08, 2007
I received a call today from someone with questions about Chapter 7. I receive many calls a day, but what made this call interesting was that the caller told me that they conferred with another attorney and was told that with the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, only 50% of debt was now dischargeable in a Chapter 7...

Costly Bankruptcy Preparation Mistakes

Posted on November 05, 2007
An interesting case out of the 9th Circuit last week should serve as a reminder to Bankruptcy Attorneys to check and double check documents. It should also serve as a warning to debtors who may be inclined to avoid doing the same thing. The case involved an $18,000 tax debt that the debtor owed to the Franchise Tax Board in California...