Sunday, November 24, 2019

Avoid Bankruptcy Scammers

It seems that whenever folks are desperate for help there is always a potential for unscrupulous entities swooping in. For example, in a recent case in Detroit, MI a petition preparer was sentenced to four (4) years in prison for violating various bankruptcy court orders.
In 2012, a Maryland individual who posed as an attorney and filed numerous cases was shutdown by the the Maryland bankruptcy court and ordered to pay hundreds of thousands in fines. This individual had apparently even decorated his office with law books to create an air of legitimacy.
How to Avoid Scammers

Another Bank Settles with Fannie and Freddie

Credit Suisse to pay $234 million to Fannie Mae and $651 million to Freddie Mac

Federal Housing Finance Agency has recovered more than $10.1 billion from banks over the sale of toxic mortgage backed securities.

Settlements have also being reached with Wells Fargo & Co, JPMorgan Chase, Citigroup Inc, Deutsche Bank AG, and Morgan Stanley. So basically most major banks were involved here. Outstanding lawsuit include the behemoth that is Bank of America Corp

Motion for Relief from Stay

In an ideal world, mail from creditors and debt collectors should stop after your chapter 7 bankruptcy is filed. Sometimes, creditors and debt collectors are slow to stop the collection letters but usually this can be dealt with in a simple phone call.

For secured creditors such as car lenders and mortgage lenders the communication is more intense and ongoing. These lenders want to know whether you intend to keep or surrender the car or home. Secondly, they want to make sure the property is in a safe situation including things such as ensuring the insurance is up to date.

Protect your Tax Refund in Bankruptcy

One universal fear whenever folks are thinking of filing bankruptcy is whether they are going to lose their valued possessions. For most folks they are worried about losing their home, car or tax refunds.

Most folks are relieved to know that just because you file for bankruptcy does not mean you lose everything. The law has a way to protect some of your property. This is accomplished through the of exemptions. Exemptions are laws that keep certain property out of bankruptcy and reach of your creditors. The exemptions vary by state and therefore you have to ensure you understand what state’s exemptions you can use.

GM Recall – Reference Guide

As you may know from media reports, General Motors has issued some of the largest recalls in the country. The first recall deal with a condition with the ignition switch that may cause the keys to unintentionally move or switch to the “accessory” or “off” position, turning off the engine and most of the electrical components of the vehicle.

Citi Settles with Investors

Citigroup has agreed to pay $1.13 billion to settle claims by investors who demanded that it buy back billions in residential mortgage-backed securities. The bank reached an agreement with institutional investors who purchased over $59 billion in home-loans-backed securities from 2005 to 2008. For the full story go to Dealbook.

Goes to show the power of clout and sophistication in the mortage game. Institutional investors have the skills and money to go after Citi and bring them to the table. The average homeowner however is lucky enough to have access to a pro bono or volunteer group offering mortgage assistance because he or she cannot afford to retain a lawyer while keeping the lights on. The foreclosure crisis is not a hot as it was couple of years ago, but hundreds if not thousand of homeowners across Maryland continue to face the threat of default and eventually foreclosure. Loan modifications are slow to come and when they do the terms are often untenable, setting the homeowner for further default just a couple of months down the road.

Stecklow – Debtor Doesn’t Have to Re-Open No Asset Case to Include Unscheduled Creditors

Debtors filed motion to reopen Chapter 7 case. The Bankruptcy Court, Paul Mannes, Chief Judge, held that debtors would not be allowed to reopen “no asset” Chapter 7 case to add previously unscheduled and unnoticed creditors to schedule of creditors holding unsecured nonpriority claims.

Avoid Bankruptcy Scammers

It seems that whenever folks are desperate for help there is always a potential for unscrupulous entities swooping in. For example, in a ...