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Heard a commercial last week for Freedom Debt Relief on WTOP. They said that Freedom Debt Relief offers a “unique” alternative that will save “the most money” and get people out of debt in the “shortest amount of time.” I’ve sued a couple debt relief operations, most notably Legal Helpers Debt Resolution. I’ve shied away […]The post Freedom Debt Relief: Claims on the Radio–Are They True? by Robert Weed appeared first on Robert Weed.
One of the fundamental tenets of a business bankruptcy reorganization plan under
Chapter 11 of the Bankruptcy Code is the "absolute priority rule."
This rule, codified in section 1129(b)(2)(B)(ii) of the Bankruptcy Code,
provides that every unsecured creditor must be paid in full before the debtor
can retain any property under a reorganization plan. Chapter 11, however, is
not solely the domain of business debtors. Individuals (who more commonly seek
protection under Chapters 7 and 13) may also file for Chapter 11. So how does
the absolute priority rule affect individual debtors? That issue is analyzed in
a recent opinion, Ice House America, LLC v. Cardin, issued by the U.S.
Court of Appeals for the Sixth Circuit. Read More ›
Tags: 6th Circuit Court of Appeals, Chapter 11
A couple of weeks ago, I heard the saddest story from a 80+ year-old war hero. He told me that he had survived many attacks from enemy fire, but he fell victim to our local payday loan industry.
Retired and recently widowed, this war hero was forced to take out a payday loan to help his children's family out. (Most of his retirement is spent on family.) Unfortunately, he was not able to repay the loan on time and has losing a battle to late fees and interest rates that are eating away his monthly retirement fund. He spends nights wondering how he is going to be able to dig himself out this hole.
Bankruptcy may be a last resort.
Payday loans advertise themselves are being saviors to community as they can be a short term fix until the next payday; however, I think they are more a cancer on our local economy. In fact, I think these businesses pray upon the lower economic citizens in the Central Valley.
Fresno's "Check Into Cash" Charges APR of 460%.
I went online to check out a few Payday Loan companies in Fresno. I was shocked! Fresno's "Check Into Cash" payday loan store charges their customers an interest rate of 460%, per year. They proudly advertise it. Here is an image from their website:
The sad fact is that this not uncommon in the industry. Client borrows $255, and then repays $300 14 days later. That is 460%.
You might be thinking that I am making a big deal over $45. However, as a bankruptcy attorney, I have listened to the story dozens of times: Client goes and gets $255. Repays $300. Has to go back again. Then again. Sooner or later another "emergency" happens and there is no $300 to repay. The client then goes to a different check cashing store to get $255 to pay to the first store. Soon, the client is juggling multiple stores. No wonder that filing a Chapter 7 Bankruptcy becomes the only way out. But this is not how they advertise it Fresno
Cash Advances Promises They "Might" be the Answer to Financial Woes:
Cash advances or payday advances, are ideal for anyone who is in an emergency situation and needs money now. Whether you need cash to pay a utility bill, the landlord, get your car repaired, or any other unexpected expense, payday loans might be the answer and Check Into Cash is right around the corner. We have a Fresno payday loan center in Midtown Plaza ready to help you get your money today.
How does this happen? Why does it happen so often? Certainly it is not because of a lack of businesses that offer the service. I went onto a search engine and typed "payday loans Fresno". There were pages of advertisement. I looked at a map of Fresno, and the map had more than 70 businesses listed as payday loan centers. 70! Shaw Avenue is by the far the epicenter of check cashing stores. North of Alluvial Avenue had some payday loan businesses, but they were few in number. There were a good number of businesses located south of Shaw Avenue, but I was surprised that Shaw Avenue had the densest supply of businesses.
It is Easy To Get a Payday Loan!
Nor is it difficult to get money. I investigated a little further by researching a company online, Fresno Check Into Cash Fresno Payday Loans. Here is how they describe how you can get a loan:
You just have to write a check and leave it with the store. This seems too simple. I would imagine that you would have to show a driver's license and some pay stubs to show that you are gainfully employed. But, even if they required the additional amount, the process is still easy.
The funny thing is that if people were able to save $255 and put it into a savings account themselves, they would not be abused by such high fees. Its a shame that Fresno seems to have a city full of people who cannot save a little a money, but are able to keep 70+ businesses flush with cash.
Attorney Ken Jorgensen is located in Clovis, California. He handles personal, property and business disputes, including bankruptcy and eviction cases in California. You can find out more about Ken on Facebook, or at his websites, www.fresnolawgroup.com and www.fresnobankruptcylawgroup.com. He can be reached at [email protected] or by telephone at 1-559-324-1882.
With the addition of a new attorney who is looking to hit the ground running, our firm is excited to offer an estate planning special for the rest of this month. For individuals who are in need of a simple will and accompanying estate planning documents our firm will provide these services for $400.00 for the first ten clients to retain the firm in the month of May.
This package will include:
Simple Will
Durable Power of Attorney
Medical Power of Attorney
If you are interested in sitting down for a free initial consultation to discuss your estate planning and determine if a simple will is the right service for you, please contact our office at (248) 629-6367.
Dycke O'Neal, Inc. - - Recent Developments in the Collection of Deficiency Judgments after Mortgage Foreclosure
For the past 30 years in Miami-Dade County, Florida, large mortgage companies and banks virtually never pursued a "deficiency" judgment after a mortgage foreclosure on a first mortgage. The best advice at the time was not to be concerned about a deficiency judgment.
Recently though, things have apparently changed. Many people have been contacted or sued by Dycke O'Neal, Inc. which is a large "debt vulture" with its main office in Texas. This company has purchased foreclosure judgements from lenders who have already conducted their foreclosure sales, but retained the right to sue for a deficiency after the foreclosure sale. many people are being sued for amounts in the range of $100,000 to $200,000.
Deficiency Judgment
A typical residential mortgage foreclosure action usually only initially seeks a judgment setting a foreclosure sale of the real estate. It does not seek a "money judgment" upon the mortgage promissory note. But although most foreclosure judgments only determine the balance due and set a foreclosure sale, the judgment retains the jurisdiction to issue a deficiency judgment.
Limitation on Amount of Deficiency
The new "Florida Fair Foreclosure Act" effective on June 7, 2013 provides a limitation on the amount to be allowed as a deficiency regarding foreclosures of owner-occupied residential real estate. The amount to be awarded may not exceed the difference between the foreclosure judgment amount (or in the case of a short sale, the outstanding debt) and the fair market value of the property on the date of the foreclosure sale.
One-Year Statue of Limitations to Seek Deficiency Judgment
The new act also provides in Florida Section 95.11(5)(h) that for actions file on and after July 1, 2013, a claim of deficiency, subsequent to the foreclosure of one-to-four family residential properties, must be filed within one year from the day after (1) the certificate of title is issued or (2) the mortgage lender accept a deed-in-lieu of foreclosure. For other actions, a deficiency claim must be brought by the earlier of (1) five years after such action accrued or (2) by July 1, 2014.
(305) 891-4055 - Jordan E. Bublick is a Miami Bankruptcy Lawyer with over 25 years of experience in filing Chapter 13 and Chapter 7 Bankrkuptcy Cases and Mortgage Modifications
Dycke O'Neal, Inc. has filed almost 200 actions for mortgage deficiency judgments in Miami-Dade County just in the past five months - since January, 2014. Dycke O'Neal, Inc. is one creditor you do not want to meet. Dycke O'Neal, Inc. is a company out of Texas that has bought up thousands of foreclosure judgments throughout Florida to sue foreclosed homeowners for a "deficiency" judgment owed after their home is foreclosed. Dycke O'Neal, Inc. is not just after a few dollars - in many cases it is suing for about $100,000.00 to $200,000.00.
What is a Mortgage Deficiency?
A "deficiency" judgment is a money judgment for the difference between the balance due on the mortgage and the sales price at the foreclosure sale or in some cases the fair market value of the foreclosed mortgaged property.
The pursuance of a deficiency judgment is the second part of a foreclosure case. In the first part of a foreclosure case, the lender only seeks a judgment determining the balance due on the mortgage and setting a foreclosure sale of the real estate. The foreclosure judgment retains the jurisdiction for the court to enter a deficiency judgment after the foreclosure sale. In the recent decades, residential mortgage lenders virtually never pursued a deficiency judgment after a foreclosure sale. But things have recently changed in a dramatic with the flood of cases filed by Dycke O'Neal, Inc.
Some Relief - New Florida Fair Foreclosure Act of 2013
The new "Florida Fair Foreclosure Act," which was effective on June 7, 2013, provides some measure of relief to foreclosed home owners facing the threat of a deficiency judgment after a foreclosure sale.
The new act provides that for cases filed before July 1, 2013, a claim for a deficiency must be brought by the earlier of (1) five years after the action accrued or (2) by July 1, 2014. This means that the statute of limitations will bar many lenders on older foreclosure cases from filing a deficiency action on July 1, 2014.
For new actions filed on and after July 1, 2013, a claim for a deficiency judgment after a foreclosure sale of a one to four family residential property, must be filed within one year from the day after (1) the certificate of title is issued (which is normally 10 days after the foreclosure sale) or (2) the mortgage lender accepts a deed-in-lieu of foreclosure. Note that this new one year statute of limitations does not apply to foreclosures of other than one to four family residential properties.
This new act also provides a limitation on the amount to be allowed as a deficiency as to regarding foreclosures of owner-occupied residential real estate. The amount to be awarded may not exceed the difference between the foreclosure judgment amount (or in the case of a short sale, the outstanding debt) and the fair market value of the property on the date of the foreclosure sale.
Jordan E. Bublick is a Miami Bankruptcy Lawyer with over 25 years of experience in filing Chapter 13 and Chapter 7 Bankruptcy Cases and Mortgage Modifications (305) 891-4055
On March 4, 2014 the US Supreme Court issued its decision in the case of Law v. Siegal, 134 S.Ct. 118 (2014). The Court ruled that the Bankruptcy Court exceeded its authority when it ordered that the debtor's homestead be "surcharged" to pay the chapter 7 trustee's fees of $75,000.00.
The Court explained that the filing for bankruptcy under chapter 7 creates a bankruptcy "estate" generally consisting of all of the debtor's property. The Court further explained that "[t]he estate is placed under the control of a trustee, who is responsible for managing liquidation of the estate's assets and distribution of the proceeds." The Court noted that the Bankruptcy Code allows a debtor to exempt certain assets from the bankruptcy estate and that these exempt assets are generally not liable for any of the expenses in administering the bankruptcy estate.(305) 891-4055 - Jordan E. Bublick is a Miami Bankruptcy Lawyer with over 25 years of experience in filing Chapter 13 and Chapter 7 Bankrkuptcy Cases and Mortgage Modifications
In this next post we will be discussing the issue surrounding dismissal or conversion of bankruptcy and the role and mechanism of the means test and presumption of abuseThe post Bankruptcy Dismissal, Conversion, and the Means Test appeared first on Tucson Bankruptcy Attorney.
I am pleased to report that after our bankruptcy law firm’s successful expansion to Seattle,we are now opening a bankruptcy law office in Tacoma to serve the needs of consumers in Pierce County. We have launched a Tacoma bankruptcy website which can be found at http://www.tacoma-bankruptcyattorney.net/
Tacoma Bankruptcy Law Office
The original post is titled Tacoma Bankruptcy Law Office , and it came from Portland Bankruptcy Attorney | Northwest Debt Relief .
The filing of a chapter 13 bankruptcy case puts a stop to most creditor actions, including most foreclosure cases. Under chapter 13, a property owner is given the opportunity to reorganize his affairs while under the protection of the Bankruptcy Court.
The following three main features available under chapter 13 are described below.
1. Mortgage modification
2. Chapter 13 Plan to reinstate mortgage
3. Avoiding of junior mortgages
Mortgage Modification - Mediation
Within the chapter 13 case, a property owners may make use of the Bankruptcy Court's new "Loss Mitigation Mediation" (LMM).
This program is innovative in certain respects. Under this program, a Bankruptcy Court appoints a meditor to help the parties reach an agreement to modify the mortgage. A mediator is able to help the homeowner and mortgage company communicate and reach an agreement for modification.
This program also involves the use of an internet "portal" which allows the homeowner to upload all the documents needed for the mortgage company to consider for a modification. Through this portal the homeowner and mortgage company are also able to communicate.
Reinstate Mortgage
If a homeowner does not want to modify his mortgage, he may propose a chapter 13 plan to provide for the reinstatement of his mortgage by catching up the mortgage arrearage over a period of 3 to 5 years, while maintaining current payments.
Avoiding of Under Water Mortgages and Association Liens
If a second mortgage is "under water," the involved lien may be avoidable. To be avoidable as to residential property, there must not be any equity in the property to support the mortgage lien. That is, more is owed on the first mortgage than the value of the property. Association liens, including condominium association liens, may also be avoidable in whole or in part, to the extent that they are "under water."
(305) 891-4055 - Jordan E. Bublick is a Miami Bankruptcy Lawyer with over 25 years of experience in filing Chapter 13 and Chapter 7 Bankrkuptcy Cases and Mortgage Modifications
Updated daily, this blog will keep you informed on the latest bankruptcy news! 
Learn more about how Bankruptcy works and what you need to know.