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If you have been struggling with debt, now may be the best time to consider filing for bankruptcy. For starters, with the holidays ahead you could dig yourself deeper into debt. Our Elkhorn, Wisconsin bankruptcy lawyer, Shannon Wynn, lists four reasons why you may want to consider filing for bankruptcy before the holidays.
 
4 Reasons To File an Elkhorn, Wisconsin Bankruptcy Before the Holidays
1. Stop accruing more debt during the holiday season. You are already in debt. The last thing you need is even more debt. Family dinner ingredients, travel expenses, and gifts can put you past the point of no return. If you file bankruptcy before the holidays, you won’t use your credit cards to pay for holiday expenses and gifts. Our Elkhorn, Wisconsin bankruptcy lawyer, Shannon Wynn, wants to remind you that paying for holiday gifts on your credit cards may prolong or prevent you from filing bankruptcy. The bankruptcy trustee may think you purposely racked up credit bills for fraudulent reasons. You may not get these charges discharged.
2. Stop embarrassing phone calls while hosting family, guests, and holiday parties. The last thing you want happening while entertaining family and friends is for your phone to be ringing off the hook with bill collectors on the other end. Not only is this situation embarrassing, but it is also depressing. The holidays are hard enough without being reminded about your financial problems. Our Elkhorn, Wisconsin bankruptcy lawyer, Shannon Wynn, wants you to know that as soon as you file for bankruptcy, all collection attempts must stop, including letters and phone calls. So, you won’t have to hide your mail during the holidays, either.
3. Start budgeting now, before spending even more on holiday items. Budgeting isn’t fun, but it is important. With the holidays approaching, you may be considering spending money on decorations, food, and gifts. Can you even afford all of this right now? Start a budget now while filing for bankruptcy to keep your finances in check.
4. Start 2017 with a clean slate. Wouldn’t it be great to start the new year debt free? Think of the great New Year resolutions you can make regarding your spending habits. No more collection attempts. The New Year is the perfect time to start rebuilding your credit. It’s a second chance for a fresh start.
 
Contact Our Elkhorn, Wisconsin Bankruptcy Lawyer, Shannon Wynn
If you are dreading the holiday season because of your financial situation, give us a call. Don’t put yourself further into debt. Don’t ruin your chances of ever being able to file for bankruptcy by racking up more credit card debt during the holidays. Now is the perfect time to strategize wisely about your finances. Before the holiday bills hit you like a freight train, contact our Elkhorn, Wisconsin bankruptcy lawyer, Shannon Wynn. You can schedule a free, initial consultation by calling our bankruptcy office at 262-725-0175 or by stopping one of our offices in Delavan, Muskego, Salem, or Lake Geneva.
 
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*The content and material on this web page is for informational purposes only and does not constitute legal advice.
The post 4 Reasons to File Bankruptcy Before the Holidays appeared first on Wynn at Law, LLC.

Here at Shenwick & Associates, the debtors that we represent (we represent creditors, too) are primarily looking to get their debts discharged in bankruptcy. However, what most debtors don't know is that besides getting rid of unsecured and secured debt, some liens or judgments secured by property can be eliminated by making a motion under § 522(f) of the Bankruptcy Code, which permits a debtor to wipe out the interest that a creditor has in property if the debtor's interest in the property would be exempt but for the existence of the creditor's lien or interest.

The most common types of liens that can be avoided under § 522(f) are judicial liens (a lien created when someone obtains a judgment against you and attaches the judgment against your property), but not including liens that secure a domestic support obligation); and nonpossessory, nonpurchase-money security interests. To qualify as a nonpossessory, nonpurchase-money security interest: (1) you (not the creditor) still possess the collateral; and (2) you used property you already owned as collateral for the loan, not money that you borrowed.

A lien is considered to impair an exemption to the extent that the sum of: (i) the lien; (ii) all other liens on the property; and (iii) the amount of the exemption that the debtor could claim if there were no liens on the property, exceeds the value that the debtor's interest in the property would have in the absence of any liens.

By way of example, let's assume that a house owned by a husband and wife has an appraised value of $500,000. The house is subject to a $200,000 mortgage. The husband and wife file for chapter 7 bankruptcy and have a combined $300,000 homestead exemption under New York State law. Prior to their bankruptcy filing, a judgment creditor records a $75,000 judgment against the house. The debtors may commence a motion under § 522(f) of the Bankruptcy Code to avoid or eliminate the $75,000 judgment docketed against the house.

To discuss whether lien avoidance as part of a bankruptcy filing would be a beneficial strategy for your debt issues, please contact Jim Shenwick.

No one enjoys receiving calls from debt collectors. While some collectors are professional, many can be rude, aggressive, and difficult to work with. Thus, many people are immediately suspicious of anything a debt collector might tell them or any action they may attempt to convince a person to take. In some instances, this suspicion is well-founded. At least some debt collectors violate the rules and regulations set forth by the Federal Debt Collection Practices Act (FDCPA) and other relevant laws. 
In many cases, debt collectors will attempt to get a family member to pay the debts of another member of the family. The debt collector may call someone and state that (s)he is legally obligated to pay the debt. While there are certain situations in which a family member can be liable for the debt of another person, in at least some cases, this type of statement is false and misleading.  This type of statement is likely grounds for a lawsuit, but individuals who fail to realize that they are not liable for most familial debts may mistakenly assume liability. Contact a Sacramento bankruptcy attorney of The Bankruptcy Group for more information if you’re concerned about debt or debt solutions.
California’s Community Property Regime Means a Surviving Spouse Can Be Held Accountable for Marital Debts
As a general rule, you are not responsible for the debts of your family members. However, one of the chief exceptions to this rule is introduced by California’s community property regime. Under the community property regime, the debts and assets a spouse accumulated prior to the marriage is typically “separate property,” and solely the responsibility of that spouse. By contrast, debts and assets accumulated during the course of the marriage are considered “community property” and are equally the responsibility of both spouses.

Thus, under California Probate Code sections 13550 and 13551:

…Upon the death of a married person, the surviving spouse is personally liable for the debts of the deceased spouse chargeable against the [following] property”:

(a) one-half of the community property belonging to the surviving spouse, except the property that is exempt from collection under California law;
(b) one-half of the community property belonging to the deceased spouse; and
(c) the decedent’s separate property that does not pass through probate.
Essentially, this means that the spouse can be held liable only for community property debts. He or she cannot be held liable for the separate property debts of the deceased spouse. Furthermore, the surviving spouse can only be held liable to the extent of community property shared by both spouses and the separate property of the deceased spouse. The creditor may not seize or otherwise claim the separate property of the surviving spouse. This is probably the most common scenario where an individual may be liable for a family member’s debts. However, there are limits to this potential liability and a prenuptial agreement can allow the spouses to avoid this type of liability altogether.
Family Members Who Sign a Guarantee or Assume Payments for Debts Often Mistakenly Create Personal Liability
In another scenario, an individual may not have any liability to pay the debts of a brother, sister, mother, or father. Still, the individual could believe a debt collector’s statements that they are liable for the debt and decide they will make payments on it. In many cases where creditors seek a family member to take responsibility for the debt, the statutory collections period has already elapsed and the debt is not collectable. However, making a payment on a debt that is past its statutory collections period can be viewed as a reaffirmation of the debt and personal liability can attach.
Another scenario where a family member may be liable for another family member’s debt involves personal guarantees or co-signer status. If you have signed a legal agreement stating that you are also responsible for a debt, it is highly likely that you are legally obligated to pay the debt if the original party is unable to do so.

Sacramento Bankruptcy Attorneys Can Assess Your Debt and Determine Whether You Are Liable
If you are concerned about excessive debts, frequent calls by bill collectors claiming that you are liable for a family member’s debt, or any other debt concerns, the attorneys of The Bankruptcy Group may be able to help. For those facing excessive debts, we can explain the various bankruptcy and non-bankruptcy solutions. To schedule a free and confidential consultation and find out more about debt relief solutions in California,  call 1-800-920-5351 or contact us online.
The post Does California’s Community Property Regime Make a Husband or Wife Responsible for the Debts of a Deceased Spouse? appeared first on BK Law.

Wells Fargo Bank has admitted to opening millions of customer accounts and credit card accounts without customer authorization since 2005.  Stories have emerged of a bank gone wild where employees working in an intense sales culture felt pressured to open new accounts to meet sales quotas.
Wells Fargo has agreed to pay $185 million in fines to the Consumer Financial Protection Bureau.
So what happens when customers file bankruptcy on credit card accounts fraudulently opened without any authorization?  Naturally, Wells Fargo filed bankruptcy Proof of Claims with the court itemizing the amounts not legally owed.  And that reality leads to the next logical question:  Has Wells Fargo committed bankruptcy fraud for filing false proof of claims?
False Claims—18 U.S.C. § 152(4):
A person who…knowingly and fraudulently presents any false claim for proof against the estate of a debtor, or uses any such claim in any case under title 11, in a personal capacity or as or through an agent, proxy, or attorney;…shall be fined…, imprisoned…, or both.
It would be hard for Wells Fargo to argue that it has not “knowingly and fraudulently” presented false claims in bankruptcy proceedings since they authored the false debt.
HOW DOES A BANKRUPTCY ATTORNEY IDENTIFY FRAUDULENT WELLS FARGO CLAIMS?
A tougher question for bankruptcy attorneys is how they will be able to distinguish valid claims filed by Wells Fargo from the fraudulent claim.  All the claims look the same, so how do you tell the difference?
Most claims filed in bankruptcy cases do not attach copies of signed credit agreements, so it is unlikely that clients will be able to spot fraudulent claims either.  Signed credit agreements are becoming a thing of the past and it is extremely rare for a proof of claim to include a copy of a signed revolving credit card agreement.
The Wells Fargo scandal highlights a major problem with this new age of “inferred consent” in the credit card industry.  As the the industry has moved away from traditional signed credit agreements to modern methods of assent over the phone or internet, it becomes increasingly difficult for consumers to deny liability for revolving credit accounts.  Increasingly, credit card bill collectors sue not under traditional breach of contract legal theories but under Account Stated doctrines where liability is claimed because the liability is stated in monthly account statements.
So, if a Wells Fargo Proof of  claim does not attach copies of signed credit agreements, how can we be sure the debt is real?  How should debtor attorneys react to all Wells Fargo claims?  Should objections be automatically filed to every Wells Fargo claim until they can be verified?  If no written agreement can be produced, should it be assumed that the debt is invalid?  Should the bank be entitled to recoup the money loaned without interest under some type of Quantum Meruit or Unjust Enrichment theory?
This latest Wells Fargo scandal poses a major dilemma for Wells Fargo, bankruptcy attorneys and the court.   Generally speaking, the filing of a proof of claim is prima facia evidence of the validity of a debt.  Does that legal presumption belong to Wells Fargo claims going forward?