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Credit After Bankuptcy

8 years 3 months ago

You should complete your Chapter 13 bankruptcy case before you apply for new credit. You should wait the 3-5 years while the case is running since you are holding off your current creditors. In some cases, a vehicle can be purchased and financed after filing, provided a proper motion is brought before the court which+ Read More
The post Credit After Bankuptcy appeared first on David M. Siegel.

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Credit After Bankuptcy

4 years 4 months ago

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Credit After Bankuptcy

7 years 1 month ago

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California Court: Credit Reports Not Required to Include Pending Chapter 13 Bankruptcy Cases

8 years 3 months ago

Judge Saundra Brown Armstrong of the U.S. District Court for the Northern District of California recently ruled that pending Chapter 13 bankruptcy cases do not need to be included on credit reports. The decision pertains only to cases in progress, and does not affect the inclusion of cases which have already been discharged or dismissed. Our Roseville bankruptcy attorneys examine the court’s decision, explain how long a dismissed or discharged Chapter 13 bankruptcy will remain on your credit report, and discuss how Chapter 13 impacts your credit score.

CA Judge: Pending Chapter 13 Cases Not Required on Credit Reports
California resident Daina Reckelhoff filed for Chapter 13 bankruptcy on April 30, 2015. Her plan of reorganization was approved by the bankruptcy court 33 days later, on June 2, 2015.
Lasting anywhere from three to five years, the reorganization plan is the central feature of every Chapter 13 bankruptcy case, not only in California but throughout the United States. Absent from Chapter 7 bankruptcy, which instead involves liquidation of assets, the Chapter 13 reorganization plan allows debtors to keep their belongings, their vehicles, and even their homes in exchange for monthly payments, which are structured so that secured debts (such as mortgages) and priority debts (such as child support) are paid first.
A Chapter 13 bankruptcy cannot be discharged until the debtor has completed his or her reorganization plan, a process which can take anywhere from 36 to 60 months. Until then, information about the pending case need not be disclosed on the filer’s credit report, as Judge Armstrong recently ruled in Reckelhoff v. Experian Info. Sols, Inc. (2017).
Reckelhoff, claiming damages under both the federal Fair Credit Reporting Act (FCRA) and the California Consumer Credit Reporting Agencies Act (CCRAA), brought the action against Experian after discovering that information about her pending case was absent from her credit report. However, the court dismissed the lawsuit after pointing out that filing for bankruptcy did not necessarily guarantee a future discharge.
Writing the opinion for the court, Judge Armstrong noted, “[T]he mere confirmation of a payment plan is insufficient to alter the legal status of a debt; this is so because if a debtor fails to comply with the Chapter 13 plan, the debtor’s bankruptcy petition can be dismissed – in which case the debt will be owed as if no petition for bankruptcy was filed.”
It should be quickly noted that residents of the Roseville, Sacramento, or Folsom areas will generally file for bankruptcy in the U.S. Bankruptcy Court for the Eastern District of California, which has jurisdiction over Placer and Sacramento Counties, among more than two dozen others. The Sacramento Division processes bankruptcy cases at the Robert T. Matsui United States Courthouse, which is located at 501 I Street in downtown Sacramento. The Sacramento Chapter 13 attorneys of The Bankruptcy Group can make sure that your bankruptcy documents are filed in the right place in a timely fashion.
How Long Does Chapter 13 Last on Your Credit Report?
Regardless of whether the case is ultimately discharged or dismissed, a Chapter 13 bankruptcy will generally remain on your credit report for a period of seven years. Fortunately, the seven-year period begins counting down from the filing date, not the date of discharge (which may fall anywhere from three to five years after the filing date). While the length of time is the same for dismissed cases and discharged cases – seven years, in either situation – case dismissals should be indicated on the credit report.
Each of the three major credit bureaus – TransUnion, Equifax, and Experian – should remove the bankruptcy from your credit report automatically after a period of seven years has elapsed (or, in the case of a Chapter 7 bankruptcy, after a period of 10 years has elapsed). However, it is still a good idea to check your credit report for accuracy. Regardless of when or whether you have filed for bankruptcy in California or elsewhere, you are entitled to receive one free copy of your credit report per year, upon request, from each of the credit bureaus.
Your Credit Score After a Chapter 13 Discharge
The bad news is that Chapter 13 bankruptcy will initially cause a drop in your credit score. The good news is that the drop is only temporary – and furthermore, with many of your debts now manageably restructured thanks to bankruptcy, you will be better able to build and maintain good credit going forward. Though the timeline varies from person to person, most debtors in California are able to establish good credit within approximately two to four years of receiving a bankruptcy discharge.
bankruptcy in california
Bankruptcy Chapter 13 Attorneys Serving Roseville, Sacramento, and Folsom
Proudly serving Folsom, Roseville, and Sacramento, the California bankruptcy lawyers of The Bankruptcy Group have extensive experience helping individuals, married couples, and sole proprietors restructure their debts, save their belongings, and end creditor harassment by filing for Chapter 13. To schedule a free and confidential bankruptcy consultation with our Folsom Chapter 13 attorneys, contact the law offices of The Bankruptcy Group at (800) 920-5351. Alternately, you may wish to speak with our bankruptcy Chapter 7 attorneys or Chapter 11 bankruptcy attorneys.
The post California Court: Credit Reports Not Required to Include Pending Chapter 13 Bankruptcy Cases appeared first on The Bankruptcy Group, P.C..

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Defeat LVNV Funding Lawsuits With These Magic Words

7 years 4 months ago

Being Sued for a Debt? Just Follow These 3 Steps:
STEP 1: Enter your information below.
STEP 2: Talk with one of our attorneys to review your options.
STEP 3: Commit to a plan of attack.

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If a debt collector like LVNV Funding sues you for money, you may be able to win the case. You just need to be willing to stand up for yourself and remember some simple advice.
In a story heard on This American Life, reporter Jake Halpern interviews a Georgia couple who got sued by LVNV Funding for an old credit card debt. They’d never heard of LVNV, so they decided to go to court and try to make some sense of the lawsuit. LVNV told them the debt had originated from American Express; though the couple didn’t deny the fact that they’d fallen behind on that account, they had no idea how LVNV Funding fit into the picture.
Standing before the judge, they demanded that the lawyer for LVNV show evidence of their ownership of the debt. In response, LVNV’s attorneys (who had previously not been particularly helpful to them) dropped the case.
The couple needed to use two magic words to make LVNV leave them alone.
prove it Who Is LVNV Funding?
According to the company’s website, LVNV Funding LLC, (“LVNV”) buys past due debts from banks and finance companies. LVNV then hires Resurgent Capital Services LP (Resurgent) to manage that debt. Resurgent may try to collect the debt from people, but most often the company will hire collection agencies to handle the day-to-day collection activities.
LVNV is a wholly owned subsidiary of Sherman Originator LLC. Sherman Originator LLC, in turn, is owned by Sherman Financial Group LLC.
Resurgent is owned by Alegis Group LLC and Sherman Financial Group, LLC. Alegis Group LLC is also a subsidiary of Sherman Financial Group, LLC.
According to court papers filed in a Maryland case in 2011, Sherman Financial Group LLC is a company that buys and services portfolios of consumer debt in default that it acquires at a large discount, and in originating and servicing credit card receivables. The company buys, services, resells and secures consumer debt that includes credit card receivables, telecommunications receivables, student loans, mortgage deficiencies, and all types of bankruptcy debt. SFG consists of numerous asset holding and operating entities throughout the U.S. and Mexico City, Mexico. As of December 31, 2006, SFG reported total assets of $1.204 billion and net income of $347 million.
Sherman Financial Group, LLC is owned by Sherman Capital, LLC.
If you’re interested, here is a corporate disclosure statement in a class action filed against Sherman.
This setup is intentionally confusing, with the organizations intertwined in such a way as to keep people from understanding who funds the purchase of such large amounts of consumer debt.
Why Can’t LVNV Prove the Case?
When you make the collection company prove the case, that means you want the other side to provide you with the following:

you signed the application
the entity suing you purchased the right to collect on the debt
the balance claimed as being due is calculated properly
the loan has not been rendered unenforceable due to the expiration of the statute of limitations

For companies such as LVNV Funding, meeting this minimal standard should be easy – after all, the company buys old debt for a living. But the company’s business model relies on buying debts for as little as possible, thereby enabling it to maximize profits on collection. To get rock bottom pricing on the accounts it purchases, LVNV gets the bare minimum amount of information needed and in the most cost-effective format.
That format takes the shape of a simple computer file containing the name and address of the cardholder, the original account number, the balance due and the last date of use. LVNV has the option of buying additional documentation and information, but it comes at a steep price.
Spending the extra money may make business sense on a single debt, but not when the company is buying thousands of accounts at once.

Being Sued for a Debt? Just Follow These 3 Steps:
STEP 1: Enter your information below.
STEP 2: Talk with one of our attorneys to review your options.
STEP 3: Commit to a plan of attack.

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LVNV Doesn’t Care If It Loses
Remember that Sherman Capital LLC made $347 million in 2006, the last year for which I’ve been able to locate documents. LVNV, which is just one of many companies owned by Sherman Capital, files thousands of lawsuits each year. Even if the company paid $0.50 for every $1.00 of debt, it would need to win only half of those cases in order to break even.
The reality of the debt buyer’s business model, however, is far more profitable. In fact, the US Federal Trade Commission estimates that companies such as LVNV win nearly ninety percent of debt collection cases because people don’t respond to the lawsuit. This failure to respond, called default, lets LVNV and other debt buyers get a court judgment without providing any proof of the debt.
That judgment allows LVNV to freeze bank accounts, take part of a consumer’s paycheck through wage garnishment and, in some states, put a lien on real estate and automobiles. LVNV’s lawyers can also collect legal fees, court costs and interest on the judgment, which makes this a profitable business model.
When someone fights the lawsuit, LVNV can spend the time and money to fight back or use those resources to pursue default judgments. In many cases, it makes more economic sense for the company to drop the case because it can make more money chasing people who don’t take action to protect themselves.
Defend the Lawsuit on Your Own, Or Hire a Lawyer?
You may not need to hire a lawyer to represent you in court against a debt buyer, but it’s a good idea to speak with one before making a decision.
When the debt is small relative to the cost of representation, bringing an attorney with you may be overkill. After all, it doesn’t make financial sense to spend $2,500 for a lawyer to defend against a $3,500 lawsuit. If you’re struggling with a number of past due debts then it may make sense to consider other options such as bankruptcy as a way to resolve all your financial problems at once. These factors will help you decide on your best course of action, and the best way to achieve your long-term financial goals.
Don’t Lose Your Rights Due to Inaction
You get only a short time to take action once you receive the lawsuit papers. Miss your window of opportunity and the debt collector will get an automatic judgment against you for the full amount of the debt.
Talk with a lawyer, decide on your best course of action, and move forward from there. You get only one chance, so be sure to make the most of it.

The post Defeat LVNV Funding Lawsuits With These Magic Words appeared first on Shaev & Fleischman P.C..

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Defeat LVNV Funding Lawsuits With These Magic Words

3 years 8 months ago

WARNING - READ THIS FIRST I provide legal advice and representation in debt collection lawsuits only for residents of New York and California. If you live in any other state aside from California or New York, I will not speak with you about any a debt collection lawsuit or judgment that was Read the article
The post Defeat LVNV Funding Lawsuits With These Magic Words appeared first on Shaev & Fleischman P.C..

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Sixth Circuit Affirms Decision to Deny Chapter 7 Debtor’s Proposed Exemption Because She Lacked Equity in Property After a Sale

8 years 3 months ago

In the case of Susan G. Brown v. Douglas Ellmann [1], the U.S. Court of Appeals for the Sixth Circuit (the “Sixth Circuit”) recently affirmed a bankruptcy court’s decision to deny a Chapter 7 debtor’s proposed exemptions for the value of redemption rights she enjoyed under Michigan law related to the sale of a property she surrendered to the bankruptcy estate. [1] Case No. 16-1967 (6th Cir., March 20, 2017). Read More ›
Tags: 6th Circuit Court of Appeals, Chapter 7

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Sixth Circuit Affirms Decision to Deny Chapter 7 Debtor’s Proposed Exemption Because She Lacked Equity in Property After a Sale

7 years 9 months ago

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Despite Dismal Past Failures Congress Unleashes New Tax Debt Collection Policy

8 years 2 months ago

tax debt collection Debt Collectors abusive shakedown
April, 2017 – according an article in the New York Times, Congress instructed the Internal Revenue Service is going to use private debt-collection companies to collect overdue payments from taxpayers, despite this idea being a complete failure in 1996 and again in 2006. This new provision was buried in a $305 billion highway funding bill – a great place to hide a significant change in the IRS tax debt collection policy.
Who will be harmed?

Nina E. Olson, whose job at the Internal Revenue Service is to be an advocate on behalf of taxpayers, believes that assigning collection to debt collectors is “a bad idea,” she wrote in a letter to Congress. “It disproportionately impacts low-income and other vulnerable taxpayers, and despite two attempts at making it work, the program has lost money both times, undermining the sole rationale for its existence.”

Ms. Olson refers to psychological tricks that may have coerced some debtors into payments they could not afford forcing them to chose between housing or paying tax obligations. Tactics that are not used by IRS collection agents.
Why is this a problem with this type of tax debt collection?
For many years criminals have preyed on taxpayers, most who are elderly and other vulnerable groups, lying that they represent the IRS. For years consumer protection groups have been educating the public that IRS agents do not call or email a delinquent taxpayer, instead those contacts are made by letter. For more on that subject read: impersonating I.R.S. collectors.
What companies were hired?
tax debt collection Congress wants taxes paid before food or housing.
Four – Pioneer Credit Recovery, a subsidiary of Navient, who has a tortured history of poor debt collection practices (fired by Education Department for misleading borrowers) so of course another government agency should offer them the same opportunity to abuse the vulnerable. CBE Group, ConServe and Performant. Could there be a problem in giving an organization with a proven history of abuse authority to collect from a vulnerable community? Now what could possibly happen?
What is the benefit to the collection companies?
They will work on commission, earning up to 25 percent of debts collected.This will definitely encourage abusive behavior!
If history bears out this program will be another complete failure and result again in abuse of the vulnerable.
Proponents of the tax debt collection plan say the potential gain will net $2.4 billion over the next 10 years, yet the two past failed attempts show it cost the tax payer more than was collected.

According to Morgan King:
Key provisions governing private collection of IRS taxes:

Taxpayers will be protected by rights provided under the Fair Debt Collection Practices Act (FDCPA).
Both private collector and IRS will send letters to the taxpayer informing them about assignment to private collector.
Payments are to be made directly to the IRS.

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About the Author:
Diane L. Drain is a well known and respected Arizona bankruptcy attorney. She is an expert in both consumer bankruptcy and Arizona foreclosure. Since 1985 she has been a dedicated advocate for her clients and spokesperson for Arizona citizens. Diane is a retired professor of law teaching bankruptcy for more than 20 years. As a teacher she believes in offering everyone, not just her clients, advice about the Arizona bankruptcy laws. She is also a mentor to hundreds of Arizona attorneys.
I would be flattered if you connected with me on GOOGLE+
*From Diane: This article/blog is available for educational purposes only and does not provide specific legal advice. By using this information, you agree there is no attorney client relationship between you and me, and that this information should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state.*

The post Despite Dismal Past Failures Congress Unleashes New Tax Debt Collection Policy appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.

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Make an equitable real estate offer with these five tips

8 years 3 months ago

Wynn at Law, LLC is honored to be part of more successful real estate offers than we can count since the 2008 recession. Every one of them had five components in common that made for ‘clean’ bids and negotiations without animosity.
1) Know what you’re buying. This means getting your property inspected and making sure that your offer is based on what the inspector says. Making an offer with the inspections waived is a huge gamble with one of your largest investments… it can be done, but it takes a perfect storm of knowing the property extremely well, a bargain on the market as-is, and a knowledgeable attorney in your corner. A tip: Walk through the house with an inspector before your offer.
2) Know what it’s worth. Real estate ‘comps’ show what similar homes have sold for in the area. A good agent will produce them for you. You can also sleuth for them on your own through public records. You’ll know what the owner paid when. You can also find permits issued for renovations the current owner made so you’ll know the work was locally inspected.
3) Know your seller. Is the bank selling the property? Or is the owner distressed? Or is the family selling on behalf of a decedent? Each selling situation has its own nuances. For example, the bank is less emotionally attached to a number than a long-time owner.
4) Know your own finances. Offer c-a-s-h. This is true whether it is your cash, or a lender’s money. From the bank’s perspective in a foreclosure or distressed property, by placing a cash offer they view you as not subject to financing. Regardless of whether it’s bank-owned or family-owned property, the seller’s been previously dealing with offers that involve financing.
5) Know your real estate attorney. Wynn at Law LLC knows the real estate in southeast Wisconsin, most of the agents and many of the local lenders. As we mentioned in a previous article, the sooner in the home-buying process our firm is involved, the more we can assist in a smooth, legally sound transaction.
The fair comes in August
Remember our article on honesty? If you’re low-balling an offer just for the sake of doing it, think twice. This tactic can burn your bridges with local realty professionals and homeowners alike. ‘Fair’ isn’t really a real estate term. It’s a subjective concept: What’s fair to the seller or the buyer or the bank are not likely to be the same. Wynn at Law LLC sees the best offers as being equitable, rather than fair. From our experience, the only ‘fair’ upon which there is objective agreement is the one at the fairgrounds in August.

*The content and material in this original post is for informational purposes only and does not constitute legal advice.
The post Make an equitable real estate offer with these five tips appeared first on Wynn at Law, LLC.