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After Bankruptcy Mistakes: Navy Fed does the Right Thing; Wells Fargo Makes More Excuses. Everybody makes mistakes. Banks do, too. When you file bankruptcy, the banks you owe money to don’t always do what they are supposed to do. This is a true story of Navy Fed admitting their mistake and fixing it. Wells Fargo […]
After Bankruptcy Mistakes: Navy Fed does the Right Thing; Wells Fargo Makes More Excuses. Everybody makes mistakes. Banks do, too. When you file bankruptcy, the banks you owe money to don’t always do what they are supposed to do. This is a true story of Navy Fed admitting their mistake and fixing it. Wells Fargo […]
The post Navy Fed does the Right Thing; Wells Fargo Makes More Excuses by Robert Weed appeared first on Robert Weed.
After Bankruptcy Mistakes: Navy Fed does the Right Thing; Wells Fargo Makes More Excuses. Everybody makes mistakes. Banks do, too. When you file bankruptcy, the banks you owe money to don’t always do what they are supposed to do. This is a true story of Navy Fed admitting their mistake and fixing it. Wells Fargo […]The post Navy Fed does the Right Thing; Wells Fargo Makes More Excuses by Robert Weed appeared first on Robert Weed.
Fear Of Failure To List Creditors There is a fear that many chapter 7 debtors have with regard to failing to properly list creditors. The bankruptcy code provides that creditors be given due process with regard to the bankruptcy filing. This means that creditors must be given notice of the bankruptcy so that they have+ Read More
The post Chapter 7 Debtor Brings Motion To Reopen In Aurora appeared first on David M. Siegel.
Some of our Wynn at Law, LLC bankruptcy filing clients have such tremendous anxiety over the Section 341 meeting of creditors. They’ll imagine intimidation like in the photo. For some, it’s the hang up that keeps them from filing. For others, it’s the cause of more than a few sleepless nights. I put a lot of value in the statement that 90 percent of what you worry about never comes true. The creditor meeting falls into that category.
This meeting isn’t a hearing. It’s not even in a courtroom. You’re under oath of course. However, there isn’t a judge. Here’s the two-step for taking the terror out of the topic:
First, it’s required. There isn’t a way out of it, so you go through it in order to clear the path for your financial future.
Second, most of your creditors won’t show up at all! They’re all invited by law. In reality, they know you’re represented by competent counsel and it’s usually financially unrealistic for the creditor to spend the time and staff hours to come to your hearing. The ones who do show up may just want to know about recent cash advances or revolving credit charges to find out if you were on a spree you had no intention of paying back. Or the lender on secured property (a car or house) might show to find out if you’re reaffirming the loan or giving back the property. We’ll have already talked this through in our office. No worries.
In a previous post (http://wynnatlaw.blogspot.com/2017/02/attorney-shannon-wynn-honestly-you...), I mentioned the value of honesty. If you’ve accidentally missed something, Wynn at Law, LLC can amend the filing before the meeting. Your creditors won’t think your hiding something if you aren’t hiding anything. Again, no worries. If they do show, and they do ask questions, commonly they’ll want to know things we’ve already covered in advance. For example, if you’re getting an income tax refund (http://wynnatlaw.blogspot.com/2017/01/attorney-shannon-wynn-even-in.html) or if anyone owes you money or holds property that belongs to you or if you’ve recently transferred property. None of this is an ambush because you’ve already covered it with Wynn at Law, LLC.
*The content and material in this original post is for informational purposes only and does not constitute legal advice.
The post Demystify the creditor meeting in two steps appeared first on Wynn at Law, LLC.
Some of our Wynn at Law, LLC bankruptcy filing clients have such tremendous anxiety over the Section 341 meeting of creditors. They’ll imagine intimidation like in the photo. For some, it’s the hang up that keeps them from filing. For others, it’s the cause of more than a few sleepless nights. I put a lot of value in the statement that 90 percent of what you worry about never comes true. The creditor meeting falls into that category.
This meeting isn’t a hearing. It’s not even in a courtroom. You’re under oath of course. However, there isn’t a judge. Here’s the two-step for taking the terror out of the topic:
First, it’s required. There isn’t a way out of it, so you go through it in order to clear the path for your financial future.
Second, most of your creditors won’t show up at all! They’re all invited by law. In reality, they know you’re represented by competent counsel and it’s usually financially unrealistic for the creditor to spend the time and staff hours to come to your hearing. The ones who do show up may just want to know about recent cash advances or revolving credit charges to find out if you were on a spree you had no intention of paying back. Or the lender on secured property (a car or house) might show to find out if you’re reaffirming the loan or giving back the property. We’ll have already talked this through in our office. No worries.
In a previous post (http://wynnatlaw.blogspot.com/2017/02/attorney-shannon-wynn-honestly-you...), I mentioned the value of honesty. If you’ve accidentally missed something, Wynn at Law, LLC can amend the filing before the meeting. Your creditors won’t think your hiding something if you aren’t hiding anything. Again, no worries. If they do show, and they do ask questions, commonly they’ll want to know things we’ve already covered in advance. For example, if you’re getting an income tax refund (http://wynnatlaw.blogspot.com/2017/01/attorney-shannon-wynn-even-in.html) or if anyone owes you money or holds property that belongs to you or if you’ve recently transferred property. None of this is an ambush because you’ve already covered it with Wynn at Law, LLC.
*The content and material in this original post is for informational purposes only and does not constitute legal advice.
When Wynn at Law, LLC works with bankruptcy clients, we emphasize brutal honesty benefits them more than it would embarrass them. Bankruptcy isn’t meant to shame a debtor. It’s meant to help the debtor move out from under an unmovable mountain of bills. Honesty can be thought of as a carrot and stick.
The first way honesty benefits you is that full disclosure is required in the process. This isn’t negotiable. All debts. All assets. All income. You can’t intentionally hold something out or even omit something by accident. If the court or creditors find that you withheld debts or income, you may lose your bankruptcy discharge.
That’s the stick. The consequences could be as severe as facing an FBI investigation. Omission is still fraud even if it really is by accident that you left something out. The penalties you may face from missing debts or assets far outweigh the potential positives.
The carrot is that by being honest with yourself about your spending habits you can make changes needed to emerge from a bankruptcy on great footing. This honest self-evaluation of your spending missteps is a benefit of a bankruptcy filing, not a judgment about your shortcomings. Not everyone spends their way onto the Wynn at Law doorstep. A sudden and massive medical bill can wipe out years of being a responsible budgeter and credit card customer. But it also throws a light on all of your spending including your insurance, which may have been your only spending misstep. Wynn at Law, LLC is not an insurance agent or financial planner, but maybe you will want to consider one coming out of the filing.
Maybe you’re overspending on vacations or vehicles. Maybe it was a job loss and no rainy-day fund. Maybe it was just a matter of getting in too far, too fast with all those attractive revolving credit offers. Bankruptcy helps you see the pitfalls to avoid in your financial future. We are not here to judge. We are here to help.
*The content and material in this original post is for informational purposes only and does not constitute legal advice.
The post Honestly, you have to be honest appeared first on Wynn at Law, LLC.
When Wynn at Law, LLC works with bankruptcy clients, we emphasize brutal honesty benefits them more than it would embarrass them. Bankruptcy isn’t meant to shame a debtor. It’s meant to help the debtor move out from under an unmovable mountain of bills. Honesty can be thought of as a carrot and stick.
The first way honesty benefits you is that full disclosure is required in the process. This isn’t negotiable. All debts. All assets. All income. You can’t intentionally hold something out or even omit something by accident. If the court or creditors find that you withheld debts or income, you may lose your bankruptcy discharge.
That’s the stick. The consequences could be as severe as facing an FBI investigation. Omission is still fraud even if it really is by accident that you left something out. The penalties you may face from missing debts or assets far outweigh the potential positives.
The carrot is that by being honest with yourself about your spending habits you can make changes needed to emerge from a bankruptcy on great footing. This honest self-evaluation of your spending missteps is a benefit of a bankruptcy filing, not a judgment about your shortcomings. Not everyone spends their way onto the Wynn at Law doorstep. A sudden and massive medical bill can wipe out years of being a responsible budgeter and credit card customer. But it also throws a light on all of your spending including your insurance, which may have been your only spending misstep. Wynn at Law, LLC is not an insurance agent or financial planner, but maybe you will want to consider one coming out of the filing.
Maybe you’re overspending on vacations or vehicles. Maybe it was a job loss and no rainy-day fund. Maybe it was just a matter of getting in too far, too fast with all those attractive revolving credit offers. Bankruptcy helps you see the pitfalls to avoid in your financial future. We are not here to judge. We are here to help.
*The content and material in this original post is for informational purposes only and does not constitute legal advice.
The Automatic Stay Once your chapter 13 bankruptcy case is filed, there are a series of processes and events that take place. Each of these events are required and mandated by the United States Bankruptcy Code and assist in the smooth process of chapter 13 for all parties involved. The first thing that happens is+ Read More
The post What Happens Once My Chapter 13 Bankruptcy Is Filed? appeared first on David M. Siegel.
Please Note:
The information in this web site is not intended to constitute legal advice or to create an attorney-client relationship. It is also important to note that the information contained in this article may be outdated.
It is very important that you obtain legal advice from an experienced bankruptcy attorney regarding your particular situation. Consultation before you take action will certainly cost you less than what it will cost to fix your unintentional errors.
Filing bankruptcy for one company may bring the assets of another company owned by the same family or group into the bankruptcy of the first. In a recent decision, In re Cameron Construction & Roofing Co., Adv. P. No. 15-1121, 2016 WL 7241337 (Bankr. D. Mass. December 14, 2016), the Bankruptcy Court made the assets of an entity not in bankruptcy available to creditors in the bankruptcy proceeding (applying substantive consolidation).
In Cameron, there were two companies controlled by one person; one a roofing company and the other a real estate company. Each entity filed separate tax returns, issued separate W-2 forms to employees, and filed annual reports. To the outside world they appeared to be two separate entities, so why did the bankruptcy court find it appropriate to combine the assets?
- The founder of the companies exercised control over both entities
- Employees performed services for both companies, with no delineation between the two entities
- One entity paid above market rent to the other, with no written lease arrangement
- Neither company had any corporate records such as meeting minutes, votes or resolutions approving any transactions between the two entities
What should family business enterprises do to avoid this result? It is simple: use good business practices. Operate as though there are two wholly unrelated companies by following all rules, laws or regulations related to the operation of a business. :
- separate and distinct board of directors for each entity
- have regularly scheduled board of directors meetings, and minutes should be taken at each meeting.
- Make sure all related party transactions are formally reviewed, documented, and approved, either in meetings or by written consent.
- All arrangements between related entities be at at market rates (rent, services, etc) and the payments are clearly identified.
- If an employee is working for multiple entities – track their time and payments.
This might be expensive, but it certainly is a wise business practice, even if bankruptcy is in the cards for any of the entities.
The post Family Run Business and Bankruptcy appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
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