Blogs

JCH LAW FIRM is pleased to announce that Attorney Jeff Hsu, Certified Bankruptcy Specialist with the State Bar of California, will be presenting along with fellow attorney Dennis Huang this Thursday, March 12, 2015 at the Institute of Internal Auditors.  The presentation topic will address issues of bankruptcy fraud.
The post Attorney Jeffrey Hsu to Give Talk on Bankruptcy Fraud to the San Fernando Valley Institute of Internal Auditors 3.12.15 appeared first on JCH LAW FIRM.

Many people assume that their business will not be affected when they file bankruptcy.  They may be very wrong in that assumption.  Why?  The answer is “it depends on the type of bankruptcy filed”.  Most individuals file a chapter 7 bankruptcy.  In a chapter 7 the individual cannot keep their business, assuming it has any value.  Instead, it will be sold by the bankruptcy trustee and the funds paid to the creditors.   Even if the business is valueless the creditors still have a potential claim.  Also, the individual needs to consider how to protect future profits before continuing to operate the business.
For example: In re NAKHUDA, ) Bk. No. 14-41156 , BAP No. NC-14-1235-TaPaJu (9th Cir, 3/2/15).  In this case the Debtor disputed that a chapter 7 debtor, as matter of law, must shut down a business and turn it over to the trustee upon filing for bankruptcy.  The Debtor asserted that the Code is not so “black or white”.  Unfortunately the 9th Circuit Court of Appeals disagreed with the Debtor.
          “A chapter 7 debtor is required by statute to cease operation of a business upon filing for bankruptcy. First, as discussed in more detail below, a debtor has the affirmative duty to surrender all estate property and records to the chapter 7 trustee. See 11 U.S.C. § 521(a)(4). Unauthorized continuing operation of a chapter 7 debtor-owned business and retention of control over its assets is absolutely inconsistent with this statutory mandate. Further, the Code also makes clear that continued operation, if allowed at all, can only occur by (or in cooperation with) the chapter 7 trustee and only after approval by the bankruptcy court. See 11 U.S.C. § 721 (“The court may authorize the trustee to operate the business of the debtor for a limited period, if such operation is in the best interest of the estate and consistent with the orderly liquidation of the estate.”) (emphasis added). Thus, “[u]nlike in a chapter 11 case, where the Code expressly authorizes the debtor to continue to operate its business, in a chapter 7 case, the bankruptcy court can authorize only the trustee, and not the debtor, to operate the debtor’s business pursuant to section 721.” 6 Collier on Bankruptcy ¶ 721.01 (Alan N. Resnick & Henry J. Sommer eds., 16th ed. 2012) (emphasis added). ”
The moral is – never file for bankruptcy without first talking to a very experienced bankruptcy attorney.  Also, you need to be warned away from using any company, lawyer or document preparer who advertises their fees in an attempt to offer the “lowest price possible”.  Document preparers are not allowed to give you any legal advice, that includes correcting your misconceptions about how the bankruptcy may affect you or your property.  Also, law firms who advertise on TV, billboard or the Internet must pay for that advertising.  They do this by treating their clients like cattle – mass producing milk at the lowest rate possible.  They also do this by not providing quality legal advice tailored to the specifics of the individual.  Be very careful or you may have a very nasty surprise  waiting.
The post I Filed a Chapter 7. Why Did the Trustee Take My Business? appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.

Looking for a Bankruptcy Lawyer Near Triangle VA? Hi, I’m Prince William County Bankruptcy Lawyer Robert Weed. The Law Office of Robert Weed has handled six thousand bankruptcies in Prince William County.  About three hundred with people in Triangle VA. We’ve done the most bankruptcies of any law firm in Prince William County. Two of my […]The post Triangle VA Bankruptcy Lawyer Information by Robert Weed appeared first on Robert Weed.

Elkhorn, Wisconsin residents seeking debt relief or a debt settlement company must heed the old saying, “If it sounds too good to be true, then it probably is.” Unfortunately, there are a lot of dishonest companies in this world and some of them hail from the State of Wisconsin. According to the Wisconsin State Court of Appeals, a Wisconsin debt settlement company must pay its customers back $4.2 million in debt settlement service fees.
The Wisconsin debt settlement company of Morgan Drexen, Inc. advised its customers to stop paying all creditors. Instead, Morgan Drexen took the money and placed it into an account which Morgan Drexen controlled. Once a client’s “account” accumulated enough funds necessary to buy down debt, Morgan Drexen would negotiate settlements with its clients’ creditors, pay said creditors, and then pay themselves a fee for their service. Morgan Drexen, Inc. operated under this practice for five years, during which time they received $8 million from their Wisconsin client. They paid themselves $4.2 million, over half of all fund received.
Morgan Drexen, Inc. was accused of operating without a license. They argued the case, but a hearing examiner ordered them to return the $4.2 million and pay an additional $1.89 million for breaking the law. The case went to the District II Court of Appeals. The Appeals Court ruled that the hearing examiner did not err in determining Morgan Drexen violated the law.
It actually sounds like pretty good plan, right? I slowly pay a company “x” amount of dollars until I have saved enough to settle all my debts. The company does this on my behalf and takes their fee. No fuss. Easy. That’s where the old saying comes into play. It sounded too good to be true. And, so it was. They were violating the law and operating without a license. In addition, clients were paying far more money than it took to settle the clients’ debts, as over half of the money Morgan Drexen took in went straight into their own pockets.
This is a good time to warn Elkhorn, Wisconsin residents who are seeking debt repair or debt settlement help to be cautious. Research a company before doing business. Ask peers and family members for recommendations. Check the Better Business Bureau ratings. Search for reviews online. Better yet, work with someone local who you know and trust. If you do your homework, you are less likely to fall victim to an Elkhorn debt settlement scam.
 
Contact Our Elkhorn Debt Repair Attorney
If you have questions about debt repair or debt settlement, contact the offices of Wynn at Law, LLC. Wynn at Law, LLC has offices in Lake Geneva, Salem, and Delavan, Wisconsin. You can reach our Elkhorn debt repair attorney by phone at 262-725-0175 or by email via our website’s contact page.

 
 
 
*The content and material on this web page is for informational purposes only and does not constitute legal advice.