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One of the benefits of the federal bankruptcy laws is a well-known exemption to the liquidation of assets. This exemption is known as the homestead exemptions, and under Washington law can help someone struggling through a bankruptcy emerge from the process with a small win.
Under the Washington exemption system, homeowners may exempt up to $125,000 of their home or other property covered by the homestead exemption.
If you owe money to any state for failing to pay income tax for pension or retirement benefits you receive while living in Washington, the homestead exemption is unlimited as to that debt.
Some states allow married couples filing a joint bankruptcy to double the homestead exemption amount, but in Washington, you cannot double. Even so, there are reasons a married couple would choose to file a joint bankruptcy.
These exemptions are an important part of the bankruptcy system, and allow those filing for bankruptcy to leave with some hope for starting over better than before.
Exemptions and the Law
These exemptions are found in the statutory language of the Bankruptcy Code and are very powerful under the law. This point was underscored by the Supreme Court in 2014 when they issued an opinion, overruling the 9th Circuit Court of Appeals who had denied a petitioner their right to a $75,000 exemption in the bankruptcy case.
In that case, Law v. Siegel, a man had filed for Chapter 7 bankruptcy, and claimed a $75,000 exemption for his home. At the same time, he claimed that a fictitious company (he invented), held over $100,000 in notes on his house, in addition to the mortgage owed to a bank. As his home was his only real asset, it left nothing for the trustee to liquidate for his estate.
Upon investigation, however, the trustee found out that this fictitious company did not exist, and therefore much of the home could be liquidated. It took several years of litigation and over $500,000 in litigation costs to find this out. When the bankruptcy finished the trustee asked the court to surcharge the man’s $75,000 home exemption, and apply that to the cost the case, and the bankruptcy court complied.
Supreme Court Overturns
This case went to the Supreme Court and they overturned the bankruptcy court and 9th Circuit Court of Appeals. They ruled that while the man’s conduct was fraudulent, and he should have been punished in a number of different ways, they could not just surcharge his home exemption when it is written into the statute, particularly where no other part of the code allows a judge to do this.
This case exemplifies how powerful the home exemption is in Washington bankruptcy cases, and why it is important to take advantage of this provision in the law. To do so you need the right legal team handling your case, and ensuring you get the best result possible for you bankruptcy case. These and other provisions can either help, or hurt you, depending on many factors.
Schedule a Free Consultation with Your Tacoma Bankruptcy Attorney
When it comes time to file for bankruptcy, you need a compassionate and skilled attorney who will be able to guide you through the process as cleanly as possible. Northwest Debt Relief Law Firm, we can help you with filing for Chapter 7, Chapter 11, and Chapter 13 bankruptcy in Washington State.  We will be there every step of the way to help navigate you through the often-complex and difficult bankruptcy process.
Give us a call at (253) 780-8008 to schedule a free consultation with one of our bankruptcy attorneys. If you have any other questions about bankruptcy, one of our attorneys will be more than happy to offer advice on your particular situation.

The post Bad Faith and Power of Homestead Exemptions Under Bankruptcy Laws appeared first on Portland Bankruptcy Attorney | Northwest Debt Relief.

Not all debt collection agencies are the same. The endbillcollections group deals only with commercial recesses and has:

• A success rate of 85%
• Incomparable experience in collecting large sums of money
• Vote A + with Better Business Bureau
• Competitive prices (there are no charges if we do not collect)
• Lawyer inside the company
• Recognition of the company’s experience
• 21 years of excellent service.

There are literally thousands of debt collection agencies in the United States. Many are simply companies with only one employee founded by former salesmen in the field of unemployed credit. These small collection agencies are generally not commercial recessed practices. They do not have the necessary business experience to understand the real reasons of the company’s debt or to know how to manipulate the situation to convince the Azenda to pay. They simply write letters and make phone calls soliciting payment and hope that this works.
Other debt collection agencies are huge. They collect all types of debt: by credit card, mortgage, rent of flats, medical expenses, insurance accounts, uncovered accounts of drugstores, telephone bills, etc. and also commercial collections. These credit recovery agencies will have palaces filled with magazines occupied by 12 dollar tele-collectors per hour reading written texts flowing on a computer screen. Computerized telephone composers contact the debtors who have switched to tele-collectors who have no knowledge of the situation except the amount due and the date of payment. The collectors do not take the time to understand the company they are calling, the nature of the debt, the reason for the non-payment, or the personality of the owner of the enterprise. They simply ask for money, which is much less effective than a professional approach.
There are many debt collection agencies of the same size as the endbillcollections group. But we do not know any commercial collection agency that has debt collectors with the business and professional experience that have ours. Just ask if these debt collectors:

• Have previous experience in owning and managing businesses;
• They have experience in negotiating mergers and acquisitions, intellectual property licenses, and cross-border ventures;
• They were required to provide training programmes for credit managers on collection of receivables and bad payers;
• They have been hired as consultants to travel abroad to negotiate transactions or resolve disputes;
• They have MBA of five best schools;
• They use all of this experience to deliver the best results in commercial credit recovery;
• Do they use a custom approach for each collection to maximize credit recovery?

Clearly the largest collection agencies may not have debt collectors with this level of experience and ability. The endbillcollections group is a commercial recovery agency ‘ boutique ‘ specializing in large commercial debts.
We have several customers whose turnover exceeds the billion dollars per year. They entrust us with all their recoveries of all sizes. We also accept new customers who have only one credit to recover. The average amount of the receivable must be at least 2,000 dollars.

Upright Law Sanctioned, a national bankruptcy firm, operating in both Oregon and Washington,  was recently sanctioned and enjoined by the U.S. Bankruptcy Court for for causing “unconscionable” harm to its clients. The court found that the law firm and its attorneys engaged in the unauthorized practice of law and provided inadequate representation to consumer debtor clients.
After making its findings of fact, the U.S. Bankruptcy Court entered orders in two actions brought by the U.S. Trustee. The court sanctioned Upright Law in the amount of $250,000; and imposed an additional penalty of $50,000 against the firm’s managing partner. Moreover, the Court ordered UpRight to disgorge all fees collected from the consumer debtors in both bankruptcy cases. The went on to revoke UpRight’s bankruptcy filing privileges in the Western District of Virginia for not less than five years.
UpRight operates a website offering legal services to consumers in financial distress, including debtors in both Oregon and Washington. Prospective consumers contact UpRight through the website and are quickly routed to UpRight’s sales agents. The Court found that the non-attorney “client consultants” were trained to close prospective clients by using high-pressure sales tactics and improperly provided legal advice to encourage them to file for bankruptcy relief. 
The bankruptcy court found that UpRight had “serious oversight issues” in failing to adequately supervise its salespeople to prevent their unauthorized practice of law, and that UpRight demonstrated a “focus on cash flow over professional responsibility.”
More recently, the Bankruptcy Court for the Western District of Washington in Seattle found that Upright had filed bankruptcies without original signatures from the debtors and properly disclose fees received from those debtors. Because the firm had already disgorged all its legal fees to the debtors prior to the close of the hearing, the Bankruptcy Court did not impose any further penalties.
Schedule a Free Consultation with Your Oregon and Washington Bankruptcy Attorney
When it comes time to file for bankruptcy, you need a compassionate and skilled attorney who will be able to guide you through the process as cleanly as possible. At Northwest Debt Relief Law Firm, we can help you with filing for Chapter 7, Chapter 11, and Chapter 13 bankruptcy in both Washington and Oregon.  We will be there every step of the way to help navigate you through the often-complex and difficult bankruptcy process.
Give us a call at our Tacoma location (253) 780-8008  or our Seattle location (206) 486-1280 to schedule a free consultation with one of our bankruptcy attorneys. If you have any other questions about bankruptcy, Tom McAvity will be more than happy to offer advice on your particular situation.
The post National Bankruptcy Firm, Upright Law Sanctioned, Punished for Hurting Consumers appeared first on Portland Bankruptcy Attorney | Northwest Debt Relief.

If you have a collection account that you want to take care of, but can’t afford to pay it in full, you may be able to negotiate a cheaper payment with the debtor. Even if you can’t get the collector to agree to accept a lower payout, you may be able to draw up an agreement to pay the debt in installments. Knowing how to negotiate with debt collectors will help you to process a payment solution that works in your favor.
1. Understanding how debt collectors work
Debt collections can also happen to more financially responsible consumers. A bill may slip your mind, you may have a dispute with the creditor of what you really owe or the billing statements may get lost in the mail before you know that the debt exists.
No matter how much you would ignore the collection, taking care of the collection accounts is usually better for you in the long run. Once you pay, it will interrupt your collection calls and letters for good, improve your credit history and eliminate the risk of being sued for debt.
As with any negotiation, knowing how much you can on the other party puts you in a better position to get what you want from the deal. The goal of the debt collector is to get as much money as possible from the debt collection and they do it in two ways. Debt collectors can add tax on the debt as permitted by state law.
Or, buyers of junk debt earn profits on the debts they have bought for only penny on the dollar. Collectors only make money when consumers pay the debt. They cannot seize property or take money from consumer bank accounts unless they sue and get a court ruling and permission to garnish consumer wages.
2. Know Your Rights
Before you talk to a debt collector, familiarize yourself with your rights. Otherwise, debt collectors who are smarter and savvy than you can easily take advantage of you.
Here are some things to know:

• Debt collectors can only call between 8:00 and 9pm.
  They can’t let you harass or use profane language when you talk to yourself.
• They cannot threaten to take illegal actions or that they do not intend to pursue with.
• Debt collectors can contact their employer, family members and friends to contact information about you.

Debt collectors may attempt to collect from you by calling, sending letters and listing a debt on your credit report until the debt falls within the time limit of credit reporting. You can stop calls and letters asking the collector to stop contacting you. However, it is generally not possible to remove a collection from your credit report, unless it is inaccurate or beyond the reporting time limit.
3. Make sure it is the debt
Don’t take it for granted that a collector you contact is pursuing a legitimate debt. Debt collectors have been known to pursue false debts or even attempt to collect on debts already paid.
Approves all debt collections with a healthy dose of skepticism.
You have the right to ask the debtor to prove that the debt is yours and that they are allowed to collect. This process is known as debt validation. You have 30 days from initial contact with the debtor to request, in writing, that the debtor will send you the proof of the debt. Once the collector receives your request for debt validation, it cannot continue to collect from you until they have sent the required proof.
Once the collector sends the proof and you are satisfied with the debt is legitimate, you can proceed with the rest of the negotiations. If not, send the collector a letter of termination and ending by asking to stop contacting you and contest the debt with the credit bureaus.
4. Get Some Leverage
There are some things that can work in your favor when you are negotiating with a debt collector.
First, if the collector has a lesser chance of winning a lawsuit against you, they may
The statute of limitation affects is the time when a debt is legally enforceable. Once the statute has passed, the debt collector will have a harder time getting a court to force you to pay the debt if you use the expired term as a defense in court. Just be sure not to accidentally restart the statute of limitation by admitting to the debt or making a partial payment. The statute of limitation varies depending on the state and type of debt and starts with your last activity on the account.
Another time period that can work on your behalf is the time limit of credit reporting. This period of time affects whether a debt can be listed on your credit report. If a debt has declined in your credit report, or is expected to fail soon, there is less incentive to pay it – it has no effect on your credit. However, you may feel motivated to pay the debt due to a moral obligation, to prevent debt collectors from contacting you on debt for good or to eliminate the risk of being sued. Using a credit expiration time limit as a betting tool can encourage the debt collector to work with your budget.
In General, the more debt the debt is, the more likely you can convince the debtor to accept less than the full payment. Search for and verify both the statute of limitations and the time limit of credit reporting before you start negotiating with the debt collector.
5. Figure of what you can pay
Paying your debt collection is important, especially if it prevents you from improving your credit or getting approval for other credit cards and loans. Before you offer a payment to the debt collector, consider the other financial obligations. Take a look at your budget-your earnings and expenses-to understand what you can pay towards the debt. Consider whether you can pay all in one lump sum or break it in a few payments. Keep in mind that debt collectors want to collect as quickly as possible, so the spread of payments for more than a couple of months will not be an option.
You could, for example, offer to pay a lump sum of $3 000 for a debt of $5 000. You will ask that the debtor receives his payment as full debt satisfaction, which means that the collector cancels the remaining $2 000. Or, you could offer four monthly payments of $250, to fully pay the debt. Make sure you can pay what you’ve offered. Once the debtor accepts, you can only have a small window to make the payment.
6. Knowing how your payment will interest you
Know what your offer means to you. Your payment will be reported to credit agencies if the debt still remains within the time limit of credit submission – which is seven years for most debts. Paying in full seems generally better than solving your debt, but a payment seems better than not paying.
Any payment on the debt will reopen the statute of debt limitation. It is important that you have an agreement on what will satisfy the debt and eliminate the risk of being sued in the future.
Debt settlement can have tax implications. If more than $600 of your debt is canceled, the collector must report the canceled amount to the IRS. You will be sent a 1099-C form to include the canceled debt as income on your next tax return.
7. Be prepared for a counterweight
Start trading by offering a somewhat inferior payment to what you really want to pay. The debt collector will likely contract with an amount higher than your bid or even insist on paying the full amount. The goal is finally to get the debt collector to accept an amount equal to or less than what you have decided you can pay.
8. Stand Your Ground
Debt collectors use all the information they can get about you to collect the debt on your part-so pay attention to what you divulge in your conversations. Stay in control of your emotions, no matter what and just talk about your offer. Avoid discussing your income or other financial obligations unless you are sure that giving this information will benefit the negotiations.
Keep in mind that debt collectors have access to your credit report and can use the information in it-like new loans or punctual payments on your other accounts-to push you to pay more than what you have offered. Stay in control of the conversation and stand firm in what you are willing and able to pay. Do not let a collector have a habit of letting other financial obligations slip.
You may have to go with several debt collectors before you come to an agreement. Don’t be surprised if you’ll end up talking to several people at the collection agency. Keep the notes of all your communications with debt collectors, noticing who you talked to and details about the conversation.
9. Get the Writing agreement
Once you and the debt collector have arrived at a payment amount that works for both, get the agreement in writing. This is especially necessary if you have processed an amount or a payment amount. Do not make a payment until a written agreement of the debtor is provided for.
Keep a copy of the agreement and proof of payments you make just in case there is ever a question if you have satisfied the debt.
For some, it’s easier to write a check for the entire amount and do it with the debt completely. But, if you’re looking to save money on debt or just can’t afford to pay it in full, negotiating a smaller payment is worth it. You can do it yourself, even if you have to write a letter to start negotiations. It is less expensive to hire a debt reduction firm to negotiate on its behalf.