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http://nwdrlf.com/wp-content/uploads/2016/08/Attorney_McAvity_July_22_Bankruptcy.mp3
Katherine:
Hello, everyone. Tom McAvity, I’m messing it up. Last time I did so fine.
Tom:
That’s it. No, you nailed it. You nailed it.
Katherine:
Say it again. You say it and then I’m going to say it right after you.
Tom:
McAvity.
Katherine:
McAvity. Oh, I did.
Tom:
Yeah, you did.
Katherine:
I was like, I messed it up. Attorney McAvity is joining us back, and he is so gracious with me and his name. We’re going to have this nailed down. He is a friend, so this needs to be said, and he’s coming back to talk with us about some of the things that will help us relieve our debt as well as answer some bankruptcy questions.
Last time he was on with us, he answered some really great questions, listener questions for us. This time he’s going to share a little bit more about himself, and he’s going to tell us about his book that he’s written about bankruptcy. Before we do get into about his book, I want him to say hello to this audience and tell us a little bit about himself, to reintroduce himself to the audience. I’ve got to get my tongue together today, right?
Tom:
I’m sorry
Katherine:
I said I need to get my tongue together today, right?
Tom:
We did.
Katherine:
Okay, I want you to tell the audience just a little bit about yourself.
Tom:
Oh, sure, well, my name’s Tom McAvity, as you know. I’m a bankruptcy attorney in the Pacific northwest area. I concentrated my practice in Oregon and Washington. We have offices in Seattle, Portland, Salem, and Vancouver, all out in the Pacific northwest. I’ve been doing this for about 16 years. For whatever reason, I just love it. There’s nothing I’d rather do than practice bankruptcy, which I know some of us are, but it’s true. I love it.
Katherine:
I think that helps a lot of people who come to you to feel good about this process, because bankruptcy could be a bad word, or feel like it’s a bad word until we know better. Someone like you can definitely help. Let’s talk about your book. Tell us about that book you’ve written on bankruptcy.
Tom:
It’s funny, I never had any desire to be an author or write a book, so it didn’t come from that, but I realize that there are a lot of us, if we want information, we’ll just get on the line and just start talking to someone. I understand that. It’s the camp that I’ve often been in. I know that there’s certain subjects that I just don’t feel calling someone about. I’d prefer to maybe read about it online or buy a book, to read about it a little bit, to put my toe in the water, I guess, before diving in. I guess the frustration that I’ve always felt was some subjects are relatively easy to research online. You read an article or two and you’re ready to go and decide if it’s something you want to do or not.
What I find is with bankruptcy, there’s just so much conflicting information online and so many articles that maybe address a couple of issues but don’t really delve deep enough, or there’s conflicting articles, or it’s kind of on point but not really. I just wanted to provide something for people who maybe weren’t even calling a bankruptcy firm yet. That’s not where they are, but they still need the information. I figured we would just provide the information and just leave it there. If they want to follow up they can, and if not, they still have the information they need.
Katherine:
They feel empowered because it’s something about, we go through school learning to be the smartest kid in the classroom, and then we call and we don’t know any answers and we feel foolish because they are empowered. Tell us, what is the name of the book and where can people get a copy of it?
Tom:
It’s The Benefits of Bankruptcy in Oregon and Washington, and it’s written specifically for people in Oregon and Washington, and most of it would be on point for people in other states but I wrote it for the Oregon and Washington reader in mind. I guess there’s a couple different ways you can get it. You can download it off our website, which is probably the way that I would grab it. We’re also free to send a free copy to anyone who asks. There’s no obligation or charge. We’ll just put one out in the mail right to you and leave it with you.
Katherine:
Okay, give that website real quick, and then we’re going to go to our next question.
Tom:
I’m sorry, I didn’t hear that part.
Katherine:
Sure, give your website and then we’ll go to the next question.
Tom:
Oh, yeah, that would be helpful, wouldn’t it? It’s www dot nw, like northwwest, d-r like doctor, l-f like Larry and Frank dot -com. http://nwdrlf.com. There’s information on the book right on the website.
Katherine:
Okay, now you stated out the interview off today talking about you love your work as a bankruptcy attorney and you wouldn’t do anything else. What is it you enjoy so much about practicing bankruptcy?
Tom:
I think what drew me to it originally is, it’s just nice to be in an area of law where every time, almost, well, I would say no matter what, every time a client comes in to see us, at the end of the day they’re better off having done so, where some areas of the law you can’t always guarantee that kind of result. You can do a great job in a divorce, but your client’s life is still wrecked. Certainly that’s true in criminal, but in bankruptcy law, almost every single time the client’s immeasurably better off from having hired us. That’s a good feeling. Also I believe that everybody entitled to second chances. I just believe that strongly I’ve been given a second or third chance in life, on more than one occasion, and I just thing that everyone deserves one. That’s what drew me in.
Katherine:
You really get to help people. I’ve heard some attorneys, not bankruptcy attorneys, but they got into law because they wanted to help people and the area that they went in wasn’t what they thought it was going to be. You sound like you were able to help people. Do what you love, practicing bankruptcy law, as well as helping people get that second chance in their life. It really worked out for you. Maybe they just need to become bankruptcy attorneys too.
Tom:
I think some attorneys maybe just wanted to be attorneys. I don’t think they necessarily like people all that much.
Katherine:
The truth is out.
Tom:
You can even see through it. I think that is the truth for a lot of attorneys. They just like to talk to other attorneys.
Katherine:
Uh-oh, the secret is out. Let’s talk about your firm. There’s a couple of things I noticed. It’s not just bankruptcy. You also mentioned debt relief. Let’s talk about that your firm offers.
Tom:
We have a lot of clients that come to us just because they only have one creditor and they’re getting sued and we’ll defend clients that are in that position where bankruptcy is just not a realistic option, but at the same time, they need help with that one creditor. Also we help people who are in a mess with their student loans, and boy, that’s an ever increasing portion of this country. People are just having student loan problems. I’m more happy to step in to help people in that area. The final thing we do with debt relief is we help in foreclosure defense where a creditor has started the foreclosure process and our clients either need more time to work out leaving the property or maybe the need some more time to work out staying in the property but for whatever reasons, they need to deal with it on their terms. We’re happy to help out on that front as well.
Katherine:
Is this what makes it special in the Oregon and Washington area? Or is it something else?
Tom:
That makes our firm special?
Katherine:
Yes.
Tom:
I would say what really makes our firm special is not me but my staff. I think I have some really great people working for me right now. I would say that in what we provide, we provide a couple things, I’m not aware of any firm that provides both of these things for sure. We do a payment plan with our clients that enable to get a bankruptcy filed quickly and get under the protection of the bankruptcy code and then pay the majority of their fees and installments after their case is filed. I can’t tell you how valuable that is to a lot of our clients who live paycheck to paycheck or getting garnished or whatever else. They’re often sent away by other firms but tell them, yeah, we’ll file a bankruptcy for you but you have to come up with $1,500 or $2,000 out of pocket and cash before well lift a finger for you.
For most people, that’s never going to happen. We’re happy to step up with something that’s a little more attainable for people that are in trouble.
I think the other thing that we offer, we take a more holistic approach. We’re not here to just eliminate the debts. Once upon a time, we were, but at a certain point I realized that what our clients are really after is a chance at getting back into financial mainstream. They’re not just looking to eliminate debt. That’s part of it but the real goal is being able to participate like anyone else. Being able to get that car payment when they can afford to get that car payment, or be able to rent an apartment without fear that the landlord’s going to turn them away because their credit rating is too low, or when a married couple might be trying to get that first house and needs to be able to do so.
We started offering, I started paying a company to help our clients with repairing their credit scores once the bankruptcy is over, once it’s done in the hopes that they can get their credit score back up where it needs to be as quickly as possible. They’re not miracle workers. They don’t clean up your credit score. I think that’s a bit of a urban … What they do though, is provide education and materials to help or clients build back as quickly as possible. Get the right card, get the right accounts, conduct their payment history in a certain way. All that stuff that the experts have known for years but the average person may not be aware of. They normally can get people back into the mid-700s in terms of their credit score within an 18 month time period after the bankruptcy. If we can provide that, it’s just a gift, I guess, to our clients. It makes our product an even stronger one.
Katherine:
I agree. I got one last question for you during our time this month. When someone is shopping around for a bankruptcy attorney, what should they be looking for in a firm?
Tom:
Boy, that’s a tough question. I’d like to say us, because of what offer.
Katherine:
That’s the right answer.
Tom:
Yeah, that’s the right answer, but at the same time, I think you need to be able to work with someone. If you come into an office and you, for whatever reason, no one has done anything wrong, it’s not anything wrong with the attorney or anything wrong with the client, but you just don’t connect very well in that appointment or don’t feel like you’re a priority to that attorney it’s probably time to find another one. I’d have to say every once in a great while I will be with someone and just realize if this relationship continues, it’s going to be a rocky one. It’s not because there’s anything wrong with a client or there’s anything wrong with me, it’s just you’re supposed to work with who you are supposed to work with.
Katherine:
I want to thank you.
Tom:
I don’t know if I explained that real well, but every once in a while you’ll deal with someone that you know it’s not going to work.
Katherine:
I think we have a good start, and I can get some listener questions to move us next month if that was not clear, but I think you got us to a good start in the direction. They’ll definitely call you all in the Oregon and Washington area. I think you did get us in the right direction of the things to consider as your interviewing bankruptcy attorneys and for them to pick up a copy of your book. That’s going to help them feel a little more confident about asking questions or even approaching someone to talk about this in this area.
You feel like you failed. You feel like you messed up and you can give them the confidence, even though the book without having to talk to someone to allow them to, because in the beginning you feel empowered about having this conversation. It’s a tough conversation.
Tom:
It is a tough one.
Katherine:
You’re grown, and how could this have happened? It’s life, and it happens, and someone like you can help them feel confident in that. Thank you again for being here with us and on next month you’ll come back and join us for another conversation, answer some questions, and things like that. In the meantime, how can people get in touch with you outside of This Needs To Be Said?
Tom:
I’m sorry, I didn’t hear that last …
Katherine:
How can people get in touch with you outside of This Needs To Be Said?
Tom:
Oh, absolutely. They can reach me at my email address at [email protected] and they can get me directly at our Portland number, at 503-232-5303,or in Seattle at 206-674-4559. We have a Vancouver and Salem phone number but for the life of me I can’t remember them right now. Those two numbers will work for anyone.
Katherine:
Awesome. And thank you until next month. Thank you, Tom.
Tom:
Thanks so much for having me.
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The original post is titled Attorney Tom McAvity – July 2016 Interview , and it came from Portland Bankruptcy Attorney | Northwest Debt Relief .
http://nwdrlf.com/wp-content/uploads/2016/08/Attorney_McAvity_July_22_Bankruptcy.mp3
Katherine:
Hello, everyone. Tom McAvity, I’m messing it up. Last time I did so fine.
Tom:
That’s it. No, you nailed it. You nailed it.
Katherine:
Say it again. You say it and then I’m going to say it right after you.
Tom:
McAvity.
Katherine:
McAvity. Oh, I did.
Tom:
Yeah, you did.
Katherine:
I was like, I messed it up. Attorney McAvity is joining us back, and he is so gracious with me and his name. We’re going to have this nailed down. He is a friend, so this needs to be said, and he’s coming back to talk with us about some of the things that will help us relieve our debt as well as answer some bankruptcy questions.
Last time he was on with us, he answered some really great questions, listener questions for us. This time he’s going to share a little bit more about himself, and he’s going to tell us about his book that he’s written about bankruptcy. Before we do get into about his book, I want him to say hello to this audience and tell us a little bit about himself, to reintroduce himself to the audience. I’ve got to get my tongue together today, right?
Tom:
I’m sorry
Katherine:
I said I need to get my tongue together today, right?
Tom:
We did.
Katherine:
Okay, I want you to tell the audience just a little bit about yourself.
Tom:
Oh, sure, well, my name’s Tom McAvity, as you know. I’m a bankruptcy attorney in the Pacific northwest area. I concentrated my practice in Oregon and Washington. We have offices in Seattle, Portland, Salem, and Vancouver, all out in the Pacific northwest. I’ve been doing this for about 16 years. For whatever reason, I just love it. There’s nothing I’d rather do than practice bankruptcy, which I know some of us are, but it’s true. I love it.
Katherine:
I think that helps a lot of people who come to you to feel good about this process, because bankruptcy could be a bad word, or feel like it’s a bad word until we know better. Someone like you can definitely help. Let’s talk about your book. Tell us about that book you’ve written on bankruptcy.
Tom:
It’s funny, I never had any desire to be an author or write a book, so it didn’t come from that, but I realize that there are a lot of us, if we want information, we’ll just get on the line and just start talking to someone. I understand that. It’s the camp that I’ve often been in. I know that there’s certain subjects that I just don’t feel calling someone about. I’d prefer to maybe read about it online or buy a book, to read about it a little bit, to put my toe in the water, I guess, before diving in. I guess the frustration that I’ve always felt was some subjects are relatively easy to research online. You read an article or two and you’re ready to go and decide if it’s something you want to do or not.
What I find is with bankruptcy, there’s just so much conflicting information online and so many articles that maybe address a couple of issues but don’t really delve deep enough, or there’s conflicting articles, or it’s kind of on point but not really. I just wanted to provide something for people who maybe weren’t even calling a bankruptcy firm yet. That’s not where they are, but they still need the information. I figured we would just provide the information and just leave it there. If they want to follow up they can, and if not, they still have the information they need.
Katherine:
They feel empowered because it’s something about, we go through school learning to be the smartest kid in the classroom, and then we call and we don’t know any answers and we feel foolish because they are empowered. Tell us, what is the name of the book and where can people get a copy of it?
Tom:
It’s The Benefits of Bankruptcy in Oregon and Washington, and it’s written specifically for people in Oregon and Washington, and most of it would be on point for people in other states but I wrote it for the Oregon and Washington reader in mind. I guess there’s a couple different ways you can get it. You can download it off our website, which is probably the way that I would grab it. We’re also free to send a free copy to anyone who asks. There’s no obligation or charge. We’ll just put one out in the mail right to you and leave it with you.
Katherine:
Okay, give that website real quick, and then we’re going to go to our next question.
Tom:
I’m sorry, I didn’t hear that part.
Katherine:
Sure, give your website and then we’ll go to the next question.
Tom:
Oh, yeah, that would be helpful, wouldn’t it? It’s www dot nw, like northwwest, d-r like doctor, l-f like Larry and Frank dot -com. http://nwdrlf.com. There’s information on the book right on the website.
Katherine:
Okay, now you stated out the interview off today talking about you love your work as a bankruptcy attorney and you wouldn’t do anything else. What is it you enjoy so much about practicing bankruptcy?
Tom:
I think what drew me to it originally is, it’s just nice to be in an area of law where every time, almost, well, I would say no matter what, every time a client comes in to see us, at the end of the day they’re better off having done so, where some areas of the law you can’t always guarantee that kind of result. You can do a great job in a divorce, but your client’s life is still wrecked. Certainly that’s true in criminal, but in bankruptcy law, almost every single time the client’s immeasurably better off from having hired us. That’s a good feeling. Also I believe that everybody entitled to second chances. I just believe that strongly I’ve been given a second or third chance in life, on more than one occasion, and I just thing that everyone deserves one. That’s what drew me in.
Katherine:
You really get to help people. I’ve heard some attorneys, not bankruptcy attorneys, but they got into law because they wanted to help people and the area that they went in wasn’t what they thought it was going to be. You sound like you were able to help people. Do what you love, practicing bankruptcy law, as well as helping people get that second chance in their life. It really worked out for you. Maybe they just need to become bankruptcy attorneys too.
Tom:
I think some attorneys maybe just wanted to be attorneys. I don’t think they necessarily like people all that much.
Katherine:
The truth is out.
Tom:
You can even see through it. I think that is the truth for a lot of attorneys. They just like to talk to other attorneys.
Katherine:
Uh-oh, the secret is out. Let’s talk about your firm. There’s a couple of things I noticed. It’s not just bankruptcy. You also mentioned debt relief. Let’s talk about that your firm offers.
Tom:
We have a lot of clients that come to us just because they only have one creditor and they’re getting sued and we’ll defend clients that are in that position where bankruptcy is just not a realistic option, but at the same time, they need help with that one creditor. Also we help people who are in a mess with their student loans, and boy, that’s an ever increasing portion of this country. People are just having student loan problems. I’m more happy to step in to help people in that area. The final thing we do with debt relief is we help in foreclosure defense where a creditor has started the foreclosure process and our clients either need more time to work out leaving the property or maybe the need some more time to work out staying in the property but for whatever reasons, they need to deal with it on their terms. We’re happy to help out on that front as well.
Katherine:
Is this what makes it special in the Oregon and Washington area? Or is it something else?
Tom:
That makes our firm special?
Katherine:
Yes.
Tom:
I would say what really makes our firm special is not me but my staff. I think I have some really great people working for me right now. I would say that in what we provide, we provide a couple things, I’m not aware of any firm that provides both of these things for sure. We do a payment plan with our clients that enable to get a bankruptcy filed quickly and get under the protection of the bankruptcy code and then pay the majority of their fees and installments after their case is filed. I can’t tell you how valuable that is to a lot of our clients who live paycheck to paycheck or getting garnished or whatever else. They’re often sent away by other firms but tell them, yeah, we’ll file a bankruptcy for you but you have to come up with $1,500 or $2,000 out of pocket and cash before well lift a finger for you.
For most people, that’s never going to happen. We’re happy to step up with something that’s a little more attainable for people that are in trouble.
I think the other thing that we offer, we take a more holistic approach. We’re not here to just eliminate the debts. Once upon a time, we were, but at a certain point I realized that what our clients are really after is a chance at getting back into financial mainstream. They’re not just looking to eliminate debt. That’s part of it but the real goal is being able to participate like anyone else. Being able to get that car payment when they can afford to get that car payment, or be able to rent an apartment without fear that the landlord’s going to turn them away because their credit rating is too low, or when a married couple might be trying to get that first house and needs to be able to do so.
We started offering, I started paying a company to help our clients with repairing their credit scores once the bankruptcy is over, once it’s done in the hopes that they can get their credit score back up where it needs to be as quickly as possible. They’re not miracle workers. They don’t clean up your credit score. I think that’s a bit of a urban … What they do though, is provide education and materials to help or clients build back as quickly as possible. Get the right card, get the right accounts, conduct their payment history in a certain way. All that stuff that the experts have known for years but the average person may not be aware of. They normally can get people back into the mid-700s in terms of their credit score within an 18 month time period after the bankruptcy. If we can provide that, it’s just a gift, I guess, to our clients. It makes our product an even stronger one.
Katherine:
I agree. I got one last question for you during our time this month. When someone is shopping around for a bankruptcy attorney, what should they be looking for in a firm?
Tom:
Boy, that’s a tough question. I’d like to say us, because of what offer.
Katherine:
That’s the right answer.
Tom:
Yeah, that’s the right answer, but at the same time, I think you need to be able to work with someone. If you come into an office and you, for whatever reason, no one has done anything wrong, it’s not anything wrong with the attorney or anything wrong with the client, but you just don’t connect very well in that appointment or don’t feel like you’re a priority to that attorney it’s probably time to find another one. I’d have to say every once in a great while I will be with someone and just realize if this relationship continues, it’s going to be a rocky one. It’s not because there’s anything wrong with a client or there’s anything wrong with me, it’s just you’re supposed to work with who you are supposed to work with.
Katherine:
I want to thank you.
Tom:
I don’t know if I explained that real well, but every once in a while you’ll deal with someone that you know it’s not going to work.
Katherine:
I think we have a good start, and I can get some listener questions to move us next month if that was not clear, but I think you got us to a good start in the direction. They’ll definitely call you all in the Oregon and Washington area. I think you did get us in the right direction of the things to consider as your interviewing bankruptcy attorneys and for them to pick up a copy of your book. That’s going to help them feel a little more confident about asking questions or even approaching someone to talk about this in this area.
You feel like you failed. You feel like you messed up and you can give them the confidence, even though the book without having to talk to someone to allow them to, because in the beginning you feel empowered about having this conversation. It’s a tough conversation.
Tom:
It is a tough one.
Katherine:
You’re grown, and how could this have happened? It’s life, and it happens, and someone like you can help them feel confident in that. Thank you again for being here with us and on next month you’ll come back and join us for another conversation, answer some questions, and things like that. In the meantime, how can people get in touch with you outside of This Needs To Be Said?
Tom:
I’m sorry, I didn’t hear that last …
Katherine:
How can people get in touch with you outside of This Needs To Be Said?
Tom:
Oh, absolutely. They can reach me at my email address at [email protected] and they can get me directly at our Portland number, at 503-232-5303,or in Seattle at 206-674-4559. We have a Vancouver and Salem phone number but for the life of me I can’t remember them right now. Those two numbers will work for anyone.
Katherine:
Awesome. And thank you until next month. Thank you, Tom.
Tom:
Thanks so much for having me.
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The original post is titled Attorney Tom McAvity – July 2016 Interview , and it came from Portland Bankruptcy Attorney | Northwest Debt Relief .
Here at Shenwick & Associates, most clients come to us with concerns about debt, from either the perspective of a debtor or a creditor. This month, we’re going to take a look at the difference between how debts are treated by law and how debts are listed on a credit report. As with all actions (lawsuits), there is a statute of limitations on how long creditors can sue you to collect on a debt, get a judgment against you, and garnish your wages or levy against your financial accounts. In New York, the statute of limitations is six years, pursuant to section 213 (2) of the Civil Practice Law and Rules (CPLR) (for “an action upon a contractual obligation or liability, express or implied . . .”). However, once a judgment has been entered against you, a creditor has up to 20 years to enforce that judgment, pursuant to section 211(b) of the CPLR. However, there are two major caveats to be aware of regarding the statute of limitations:
- Sometimes, creditors and/or collection agencies will attempt to sue debtors even after the statute of limitations has expired. If you or an attorney that represents you fails to appear in court to claim that the statute of limitations on the debt has expired, the court may issue a default judgment against you, and then the 20 year period for enforcing the judgment starts running.
- If you acknowledge a debt (in writing and signed) and/or make a payment on a debt, that will restart the 20 year period for enforcing the judgment.
With regard to reporting of debts on a credit report, rather than the state laws that govern the statute of limitations to collect on a debt and enforce a judgment, credit reports are governed by federal law, specifically the Fair Credit Reporting Act (“FCRA”), which is codified at sections 1681 through 1681x of title 15 of the U.S. Code. Under the FCRA, credit reporting agencies are required to remove information about a debt after seven years, regardless of the ownership or sale of the debt (i.e. to a collection agency) or whether or not you’ve acknowledged the debt. The seven year period commences 180 days after the last payment on the debt. However, there are also some exceptions to these general reporting requirements. They don’t apply to consumer credit reports to be used in connection with: (1) a credit transaction involving, or which may reasonably be expected to involve, a principal amount of $150,000 or more; (2) the underwriting of life insurance involving, or which may reasonably be expected to involve, a face amount of $150,000 or more; or (3) the employment of any individual at an annual salary which equals, or which may reasonably be expected to equal $75,000, or more. Remember that consumers are entitled to free credit reports every 12 months from the three big credit reporting agencies (Equifax, Experian and TransUnion) from Annual Credit Report.com. For all of your questions about debts and credit reports, please contact Jim Shenwick.
Power of Attorney for Healthcare
A Power of Attorney for Healthcare designates someone to represent you when you are unable to make decisions or unable to communicate decisions about your healthcare. This healthcare “agent” will be someone you trust to make all necessary medical decisions on your behalf and respect your wishes regarding life support, religion, and personal choices.
Why You Need a Healthcare Power of Attorney
A Power of Attorney for Healthcare covers situations that a living will does not. A living will takes affect if you are terminally ill, in a permanent vegetative state, or other similar condition defined by Wisconsin law. What happens if you are only temporarily in a coma or temporarily unable to communicate? This is where a Power of Attorney for Healthcare is used.
Power of Attorney for Finances
A Power of Attorney for Finances authorizes someone to represent you in financial matters. This “agent”, acting on your behalf, will have the authority to perform financial tasks, such as withdrawing money from your bank account or signing documents. A Power of Attorney for Finances can be effective immediately or after a future event.
Why You Need a Financial Power of Attorney
A Financial Power of Attorney is useful immediately if a person is leaving town and cannot be present for an important transaction, such as the sale of real estate. Most people design their Power of Attorney for Finances to be in effect upon a future event. This future event is usually if a person becomes mentally or physically unable to make important decisions. For instance, if you develop dementia or become comatose, someone would need access to your business and/or personal bank accounts to pay bills, etc.
Your “agent” must be at least eighteen years of age and of sound mind. Choose someone you trust. The authority your “agent” has is totally up to you. You may grant your “agent” the authority to only sign a single document during a single transaction or you may grant your “agent” the authority to act on your behalf regarding all your financial matters.
Speak with our Walworth County Estate Planning Attorney
Our Walworth County Estate Planning Attorney can design a Power of Attorney for Healthcare and/or Finances encompassing your wishes and ensuring the State of Wisconsin’s legal requirements. You should always be prepared in case of emergency or accident. Contact our Walworth County Estate Planning Attorney by phone at 262-725-0175 or by email via our website’s contact page. Wynn at Law, LLC has estate planning law offices located in Lake Geneva, Delavan, Salem, and Muskego.
*The content and material on this web page is for informational purposes only and does not constitute legal advice.
This is the bankruptcy case study for Michael M., who resides in Aurora, DuPage County, Illinois. Michael is currently being garnished for a hospital bill and is seeking protection under the bankruptcy code. He is inquiring as to whether or not he can file a Chapter 7 to stop the garnishment and yet keep+ Read More
The post Bankruptcy Case Study For Michael M. appeared first on David M. Siegel.
FIFTH THIRD BANK TO PAY $18 million to African-American and Hispanic auto borrowers for lending discrimination and $3 million to credit card customers for deceptive marketing practices.
Consumer Financial Protection Bureau “CFPB” and Department of Justice (DOJ) entered into an agreement with Fifth Third Bank requiring that the bank change its pricing and compensation structure in order to reduce the risks of discrimination, and to pay $18 million to harmed African-American and Hispanic borrowers. The CFPB’s action against Fifth Third’s deceptive marketing of credit card add-on products requires the bank to provide an estimated $3 million in relief to eligible harmed consumers and pay a $500,000 penalty.
It appears that Fifth Third may have let their employees or contract auto dealers run amuck because CFPB Director Richard Cordray said “Fifth Third’s move to a new pricing and compensation system represents a significant step toward protecting consumers from discrimination.”
Auto-Lending Enforcement Action
As an indirect auto lender, Fifth Third sets a risk-based interest rate, or “buy rate,” that it conveys to auto dealers. The bank then allows auto dealers to charge a higher interest rate when they finalize the deal with the consumer. This is typically called “dealer markup.” Markups can generate compensation for dealers while giving them the discretion to charge consumers different rates regardless of consumer creditworthiness. Over the time period under review, Fifth Third permitted dealers to mark up consumers’ interest rates as much as 2.5 percent.
- Resulted in African-American and Hispanic borrowers paying higher dealer markups without regard to the creditworthiness of the borrowers.
- Injured thousands of minority borrowers by charging $200 more for auto loans.
Under the CFPB order, Fifth Third must:
- Substantially reduce or eliminate entirely dealer discretion.r.
- Pay $18 million in damages for consumer harm.
- Pay to hire a settlement administrator to distribute funds to victims.
CFPB’s consent order in the auto lending matter
Credit Card Enforcement ActionThe CFPB reached an an agreement with Fifth Third for deceptive acts or practices in the marketing and sales of its “Debt Protection” credit card add-on product. The telemarketers promised to allow enrolled cardholders to request the cancellation of credit card payments if they experienced certain hardships such as job loss, disability, and hospitalization. The Bureau found that Fifth Third’s telemarketers deceptively marketed the add-on product during call including: misrepresenting costs and fees for coverage; misrepresenting or omitting information about eligibility for coverage; and illegal practices in the enrollment process.
This has taken quite a while to process because in September 2012, Fifth Third ceased telemarketing the product and ceased all other enrollments in February 2013.
The CFPB’s order requires that Fifth Third provide $3 million in relief to roughly 24,500 customers, cease engaging in illegal practices, and pay a $500,000 penalty to the CFPB civil penalty fund.
The CFPB’s consent order in the credit card add-on matter.
For auto loan or credit card questions or to submit a complaint, consumers can contact the CFPB at (855) 411-2372 or visit consumerfinance.gov.
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Zombie debt buyers – Encore Capital Group (Midland Funding, Asset Acceptance) and Portfolio Recovery Associates – ordered to stop using illegal actions to collect debts.
The Consumer Financial Protection Bureau (CFPB) found that Encore Capital Group (subsidiaries also named are Midland Funding LLC, Midland Credit Management, and Asset Acceptance Capital Corp) and Portfolio Recovery Associates bought debts that were or should be noncollectable and used abusive and illegal actions to collect. The companies knew many of these debts were uncollectable, lied to the consumer in attempt to collect debts, sold debts they knew to be noncollectable to other debt buyers and churned out lawsuits using robo-signed court documents (with little or no backup documentation).
The CFPB ordered the companies to overhaul their debt collection and pay consumer refunds, plus stop collection on millions $ worth of debts. Encore must pay up to $42 million in consumer refunds and a $10 million penalty, and stop collection on over $125 million worth of debts. Portfolio Recovery Associates must pay $19 million in consumer refunds and an $8 million penalty, and stop collecting on over $3 million worth of debts.
Big Banks Plead Guilty to Criminal Charges
How large is this problem? These two companies have purchased the rights to collect over $200 billion (yes I said BILLION) in defaulted consumer debts on credit cards, phone bills, and other accounts.
Collecting Bad Debts. Specifically, the CFPB found that the companies:
- Attempted to collect on unsubstantiated or inaccurate debt
- Illegal Litigation Practices:
- Misrepresented their intention to prove debts they sued consumers over.
- Relied on misleading, robo-signed court filings to churn out lawsuits.
- Sued or threatened to sue consumers past the statute of limitations.
- Pressured consumers to make payments using misrepresentations.
- Encore falsely told consumers the burden of proof was on them to disprove the debt.
- Portfolio Recovery Associates falsely claimed an attorney had reviewed the file and a lawsuit was imminent.
- Other Illegal Collection Practices:
- Encore disregarded or failed to adequately investigate consumers’ disputes.
- Encore farmed out disputed debts to law firms without forwarding required information.
- Encore made harassing collection calls to consumers.
- Portfolio Recovery Associates misled consumers into consenting to receive auto-dialed cell phone calls.
Enforcement Action
Under the terms of the CFPB orders released today, Encore and Portfolio Recovery Associates are required to:
- Stop reselling debts.
- Refund millions of dollars to consumers:
- Encore must pay up to $42 million in refunds.
- Portfolio Recovery Associates must pay $19 million in refunds.
Cease collections on millions of dollars of debt: - Encore must stop collecting on $125 million of debt.
- Portfolio Recovery Associates must stop collecting on $3 million of debt.
- Stop collecting debts they can’t verify.
- Ensure accuracy when filing lawsuits.
- Provide consumers information before filing suit.
- Use accurate affidavits.
- Reform collection of older debts.
Pay civil money penalties:
- Encore must pay a penalty of $10 million to the CFPB’s Civil Penalty Fund.
- Portfolio Recovery Associates must pay a penalty of $8 million to the CFPB’s Civil Penalty Fund.
The Encore consent order
The Portfolio Recovery Associates consent order
Want a laugh – take a look at the web sites for each of these companies. They have friendly, smiling faces and offer to “help you pay your debts”. Can you say “wolves in sheep’s clothing”? When I tried opening one my Firefox browser warned me this is a dangerous site.
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Private Student Loans and Bankruptcy – an evolving tug of war.
Just because a school calls a loan a “private student loan” does not mean it is a student loan for bankruptcy purposes. There are specifics requirements for a loan to qualify as a student loan under the Bankruptcy Code. If a loan is not a student loan then it is most likely discharged (forgiven) like medical bills and creditors cards.
So, what are the requirements of the U.S. Bankruptcy Code?
- The loan must be a “qualified education loan, as defined in section 221(d)(1) of the Internal Revenue Code of 1986.”
- Next question – what is a “qualified education loan“ under the Internal Revenue Code? It must be a loan from an “eligible educational institution.”
- How do you determine if your school is an “eligible educational institution”? Each year the Department of Education publishes a list of qualifying schools.
If your school is not on this list, the loan is not a “student loan” as defined by the Bankruptcy Code and can be discharged in bankruptcy.
Next steps:
- Determine whether your student loan is private or federal. Note – the above argument only works on private student loans. If you are unsure look at the National Student Loan Data System. If your loan is there you have a federal student loan, but it is not then you probably have a private loan. You should also check your credit report if you’re still unsure. (Sallie Mae and Navient have both federal and private student loans.)
- Once you have determined this is a private student loan then find out if the loan is from an “eligible educational institution.” See the list released each year by the Department of Education of qualified educational institutions. Note – make sure to look for the list for the year you received your student loans.
Beware the law is evolving every day and may change the above information. Also the court decisions may different in each state.
This information is not intended to be legal advice. In order to know your rights seek the advice of an experienced bankruptcy and student loan attorney licensed in your state.
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Chapter 13 bankruptcy cases are difficult for the debtor as well as the attorney. The debtor has to fulfill a series of requirements prior to filing as well as additional requirements subsequent to filing. The attorney does the bulk of his work upfront and fights to get paid as the case progresses. In recent weeks,+ Read More
The post It’s Getting Harder And Harder To Get Paid In A Chapter 13 Bankruptcy Case appeared first on David M. Siegel.
Santander Bank Fined $10 Million for Illegal Overdraft PracticesThe Consumer Financial Protection Bureau (CFPB) ordered Santander Bank, N.A. to pay a $10 million fine for illegal marketing of overdraft services and using a telemarketing firm that signed some bank customers for the overdraft service without their consent.
According to CFPB Director Richard Cordray “Santander tricked consumers into signing up for an overdraft service they didn’t want and charged them fees. Santander’s telemarketer used deceptive sales pitches to mislead customers into enrolling in overdraft service. We will put a stop to any such unlawful practices that harm consumers.”
Why are these actions illegal?
Since 2010, federal rules have prohibited banks and credit unions from charging overdraft fees on ATM and one-time debit card transactions unless consumers specifically agreed. If consumers don’t agree, the banks may decline the transactions because of insufficient or unavailable funds, and cannot charge an overdraft fee.
The Bureau found Santander Bank’s illegal and improper practices included:
- Signing consumers up for overdraft service without their consent.
- Deceiving consumers that overdraft service was free.
- Deceiving consumers about the fees they would face if they did not opt in.
- Falsely claiming the call was not a sales pitch.
- Failing to stop its telemarketer’s deceptive tactics.
Enforcement Action – So what has CFPB ordered Santander Bank to do?
- Validate all opt-ins associated with the telemarketer.
- Not use a vendor to telemarket overdraft service.
- Increase oversight of all third-party telemarketers.
- Pay a $10 million penalty.
The full text of the CFPB’s consent order: http://files.consumerfinance.gov/f/documents/20160714_cfpb_Consent_Order.pdf
The purpose of the Consumer Financial Protection Bureau. The CFPB is “a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives.” For more information, visit consumerfinance.gov.
Youtube from CFPB: https://www.youtube.com/watch?v=BHMUVfjffhA&feature=youtu.be
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