World banks have brought our economy to the brink of distruction. Whether it be the bad mortgages they wrote, the credit card debt they pushed like crack cocaine, or the refusal to modify mortgages and keep Americans in their homes, our banks have failed us. I thought I would share this article with you. It is a story of a couple that fights back for us all.
'Sweet Justice': A Florida Couple 'Forecloses' On Bank Of America
by Eyder Peralta
Over the past few years, we've heard plenty of horror stories about bungled foreclosures. The one of Warren and Maureen Nyerges, from the Naples, Fla. area, is just as bad. In 2009, they bought a home with cash, yet in 2010 Bank of America tried to foreclose on them. It took two months of phone calls and eventually court intervention to clear up the misunderstanding.
In December, a judge ordered the bank to pay the couple $2,500 in attorney fees. But months went by and the bank never cut a check. So, the Naples Daily News reports, Nyerges hired a lawyer, who pursued a levy, and this past Friday the showdown was on: The Nyergeses showed up to a local branch of Bank of America with the sheriff, the media and some movers with a truck:
"I'm either leaving the building with a whole bunch of furniture, or a check or cash or something," the attorney, Todd Allen, vowed.
It was a scene that turned the foreclosure crisis on its head, if briefly. Collier County sheriff's deputies entered the bank shortly after 9 a.m., located the bank manager and presented him with a court writ and a familiar choice: Pay the money or prepare to lose possessions.
Allen told local station WFMY that he had ordered the deputies to take photocopiers, desks, computers and even whatever cash was in the drawer to settle the debt. Allen said the bank manager on duty was "visibly shaken."
"Having two sheriff's deputies sitting across your desk and a lawyer standing up behind them demanding whatever assets are in the bank can be intimidating, but so is having your home foreclosed on, when it wasn't right," Allen said.
An hour later, the bank cut a check. Allen called it "sweet justice," because this case, he said, is a symptom of a larger problem. If you remember, Bank of America, GMAC and JPMorgan Chase were forced to freeze their foreclosures late last year, to evaluate whether they had made errors.
Wednesday, August 10, 2011
Wednesday, July 6, 2011
Stripping Your Second or Third Mortgage in Chaptr 13
For most individuals throughout the country their home values have dropped so dramatically that any equity that might have once existed has been wiped out. Additionally, many of the second and third mortgages that were taken out during the housing boom have become fully unsecured instruments which remain "secured in name only". For individuals who have seen a sudden drop in income, loss of a job, medical issues, or other unforeseen circumstances that have lead to financial trouble, this decline in housing value may actually be a good thing.
For individuals who own a home and are considering bankruptcy it is very important that you hire an attorney that is experienced with a specialized field in bankruptcy known as adversarial proceedings. It is through this process that an individual who has a "secured in name only" mortgage can strip this debt off their home and pay it back for pennies on the dollar while also discharging most of their other unsecured debts.
The process is simply but must be handled by someone who knows the ins and outs of the bankruptcy courts and the adversarial proceeding. For a lien strip to occur the attorney must first have sufficient evidence that the home is worth less than what is owed on the first mortgage. If the first mortgage "eats up" the total value of the home, then an adversary case can be brought within the Chapter 13 Bankruptcy to strip the second or third mortgage. A well drafted adversary case often leads to a default by the second or third mortgage company who does not feel the need to fight a lean strip they know they will lose. Once the adversary has been successful and the lien is stripped, the individual MUST COMPLETE THEIR CHAPTER 13 PLAN. Failure to complete your Chapter 13 Plan will lead to the mortgage springing back into existence, at which point you will be significantly behind on your mortgage.
For more information on stripping your second or third mortgage please contact me at (248) 629-6367.
For individuals who own a home and are considering bankruptcy it is very important that you hire an attorney that is experienced with a specialized field in bankruptcy known as adversarial proceedings. It is through this process that an individual who has a "secured in name only" mortgage can strip this debt off their home and pay it back for pennies on the dollar while also discharging most of their other unsecured debts.
The process is simply but must be handled by someone who knows the ins and outs of the bankruptcy courts and the adversarial proceeding. For a lien strip to occur the attorney must first have sufficient evidence that the home is worth less than what is owed on the first mortgage. If the first mortgage "eats up" the total value of the home, then an adversary case can be brought within the Chapter 13 Bankruptcy to strip the second or third mortgage. A well drafted adversary case often leads to a default by the second or third mortgage company who does not feel the need to fight a lean strip they know they will lose. Once the adversary has been successful and the lien is stripped, the individual MUST COMPLETE THEIR CHAPTER 13 PLAN. Failure to complete your Chapter 13 Plan will lead to the mortgage springing back into existence, at which point you will be significantly behind on your mortgage.
For more information on stripping your second or third mortgage please contact me at (248) 629-6367.
Wednesday, April 27, 2011
"No Big Deal" equals "Run Away Fast!!!!"
The other day I had a client come into my office for a free initial consultation. He sat down and the first thing he disclosed is that I was the second bankruptcy attorney he was meeting with. He went on to explain that the first attorney didn't listen very well and was very condescending. When he explained to the attorney that he had property up north that was owned free and clear with his three siblings he was told "that's No Big Deal, the creditors are not going to be interested in that property if you file a Chapter 7." The attorney then went about pressuring this man into signing up with him that day.
Luckily for my new client he felt very reluctant to believe that the property up north with an SEV of $32,000.00 and active mineral rights netting $150.00 a month would be "No Big Deal".
As we discussed his case it became abundantly clear that the client had assets that could not be protected in a Chapter 7 liquidation. The client did not want to put this property in jeopardy because the property was family property. Therefore we discussed putting the client into a low payment Chapter 13 to protect the property.
This client once again brought a disturbing trend to my attention. For some reason many bankruptcy attorneys in Michigan are becoming too specialized. They are only handling Chapter 7 OR Chapter 13 cases. The problem with this is that when an attorney only handles and only has knowledge about Chapter 7 cases and a client walks in the door, many of these attorneys are trying to fit a Chapter 13 client into a Chapter 7 hole so that they can gain another client. They have forgotten the fact that as lawyers we are hear to help the public, not line our pockets.
The bottom line is if you hear the term "No Big Deal" you should run away and find an attorney who can explain to you exactly what the risks are and let you decide what the best course of action is after you have received the best legal ADVICE available.
Luckily for my new client he felt very reluctant to believe that the property up north with an SEV of $32,000.00 and active mineral rights netting $150.00 a month would be "No Big Deal".
As we discussed his case it became abundantly clear that the client had assets that could not be protected in a Chapter 7 liquidation. The client did not want to put this property in jeopardy because the property was family property. Therefore we discussed putting the client into a low payment Chapter 13 to protect the property.
This client once again brought a disturbing trend to my attention. For some reason many bankruptcy attorneys in Michigan are becoming too specialized. They are only handling Chapter 7 OR Chapter 13 cases. The problem with this is that when an attorney only handles and only has knowledge about Chapter 7 cases and a client walks in the door, many of these attorneys are trying to fit a Chapter 13 client into a Chapter 7 hole so that they can gain another client. They have forgotten the fact that as lawyers we are hear to help the public, not line our pockets.
The bottom line is if you hear the term "No Big Deal" you should run away and find an attorney who can explain to you exactly what the risks are and let you decide what the best course of action is after you have received the best legal ADVICE available.
Tuesday, September 21, 2010
Avoid hiring the H & R Block of Bankruptcy Attorneys
H&R Block is well known for tax preperation. But well known and quality are two different things. The only difference between H&R Block doing your taxes and you doing them yourself is an expensive computer program and a few hours of training.
Unfortunately there are attorneys and bankruptcy petition preparers out there who offer this same cut rate service. These individuals have the expensive computer programs and a few hours training but they lack the experience and training necessary to guide you through an ever changing and complicated process. These individuals pay their staff below industry standards to enter in data that is provided by the client. A trained an experienced bankruptcy attorney often does not see these documents until he is down at court.
When shopping for a bankruptcy attorney it is important to distiguish between the real attorneys and the H&R Block wannabees.
Unfortunately there are attorneys and bankruptcy petition preparers out there who offer this same cut rate service. These individuals have the expensive computer programs and a few hours training but they lack the experience and training necessary to guide you through an ever changing and complicated process. These individuals pay their staff below industry standards to enter in data that is provided by the client. A trained an experienced bankruptcy attorney often does not see these documents until he is down at court.
When shopping for a bankruptcy attorney it is important to distiguish between the real attorneys and the H&R Block wannabees.
Wednesday, June 16, 2010
Avoid hiring an unethical or inexperienced bankruptcy attorney.
Bankruptcy is one of the most difficult times in an individual’s life. People often feel defeated after having gone through a major life changing event such as illness, job loss, or the death of a loved one. Their only choice is bankruptcy, but during this vulnerable time these individuals often make major mistakes in choosing an attorney to guide them back to financial stability.
Below are five major considerations when choosing a bankruptcy attorney:
1) Experience. In 2005 Congress passed major changes to America’s bankruptcy laws. Bankruptcy is now a highly specialized field and requires specialized knowledge on the part of the attorney to ensure the best results for you. While choosing a bankruptcy attorney one should focus less on the number of years that an attorney has been practicing and more on the percentage of their practice over the last few years that was focused on bankruptcy law.
2) Firm Size. Many of the larger bankruptcy firms in Metro Detroit tout their size as an asset to your case. However most large firms are set up as an assembly line. These firms have secretaries and paralegals performing the majority of the work on your case. Attorneys only review cases prior to client meetings and court hearings. This often means that details get missed, mistakes get made. In contrast most small firms are reliant on client referrals and word of mouth to gain business. This generally means that these firms are more focused on the client’s needs. Small firms usually have better client interaction and rely less on their support staff for complicated issues.
3) Teaching Ability. Attorneys spend years in school learning the law. They then begin their practice immersing themselves in the practical matters of court room procedures and “unwritten rules”. It is this knowledge that a clients seeks when they hire a bankruptcy attorney. For this reason clients have a right to expect that their attorney is able to break down the law in a way that allows them to understand exactly what they are getting into. Attorneys have no right to expect blind faith from their clients.
4) Hire a Law Firm, Not a Business. Every attorney has duel obligations to a law firm and a client. These duel obligations can cause a conflict if the firm is to heavily focused on the business aspect of the practice and not enough on the service end. Every law firm should focus on the clients first. It is true that a law firm is a business and as such needs to generate revenue. The problem comes into play when the firm begins to view its clients as assets that exist for the business’s profit. A law firm should never view its clients simply as an ATM machine.
5) Personal Comfort. An attorney client relationship is a complicated matter. The client hires the attorney but is not truly the attorney’s “boss”. The client must feel comfortable that the attorney is looking out for the client’s best interest or the client will not divulge all of the information that the attorney needs to put together the best case possible. You must feel comfortable with the attorney that you will be working with. Be sure which ever law firm you choose you are allowed to meet the attorney who will handle the majority of your case prior to hiring the firm.
Below are five major considerations when choosing a bankruptcy attorney:
1) Experience. In 2005 Congress passed major changes to America’s bankruptcy laws. Bankruptcy is now a highly specialized field and requires specialized knowledge on the part of the attorney to ensure the best results for you. While choosing a bankruptcy attorney one should focus less on the number of years that an attorney has been practicing and more on the percentage of their practice over the last few years that was focused on bankruptcy law.
2) Firm Size. Many of the larger bankruptcy firms in Metro Detroit tout their size as an asset to your case. However most large firms are set up as an assembly line. These firms have secretaries and paralegals performing the majority of the work on your case. Attorneys only review cases prior to client meetings and court hearings. This often means that details get missed, mistakes get made. In contrast most small firms are reliant on client referrals and word of mouth to gain business. This generally means that these firms are more focused on the client’s needs. Small firms usually have better client interaction and rely less on their support staff for complicated issues.
3) Teaching Ability. Attorneys spend years in school learning the law. They then begin their practice immersing themselves in the practical matters of court room procedures and “unwritten rules”. It is this knowledge that a clients seeks when they hire a bankruptcy attorney. For this reason clients have a right to expect that their attorney is able to break down the law in a way that allows them to understand exactly what they are getting into. Attorneys have no right to expect blind faith from their clients.
4) Hire a Law Firm, Not a Business. Every attorney has duel obligations to a law firm and a client. These duel obligations can cause a conflict if the firm is to heavily focused on the business aspect of the practice and not enough on the service end. Every law firm should focus on the clients first. It is true that a law firm is a business and as such needs to generate revenue. The problem comes into play when the firm begins to view its clients as assets that exist for the business’s profit. A law firm should never view its clients simply as an ATM machine.
5) Personal Comfort. An attorney client relationship is a complicated matter. The client hires the attorney but is not truly the attorney’s “boss”. The client must feel comfortable that the attorney is looking out for the client’s best interest or the client will not divulge all of the information that the attorney needs to put together the best case possible. You must feel comfortable with the attorney that you will be working with. Be sure which ever law firm you choose you are allowed to meet the attorney who will handle the majority of your case prior to hiring the firm.
Wednesday, June 9, 2010
Top 5 Reasons Individuals File for Bankruptcy Protection
After practicing bankruptcy in the Detroit Metro Area for the last several years I have come to the conclusion that most individuals who file bankruptcy do it for the right reasons. Below are the five most frequent reasons that I have heard from my clients as reasons they were forced to file.
1) Health-- Unfortunately many Americans are forced to file for bankruptcy due to health related reasons. This includes both uninsured individuals who cannot afford to repay their massive medical debt and individuals who are no longer able to work due to illness.
2) Loss of Job-- Many individuals are forced into bankruptcy because they have lost a job and have been unable to find a new job for 6 months or longer. Unfortunately this tends to be older workers who have lost a job that had good wages and benefits. These individuals often cannot find similar employment in part due to their age.
3) Divorce-- Divorce and bankruptcy go hand in hand. Nothing is harder on a marriage than financial struggles. Similarly nothing is harder on your budget than losing half your household income.
4) Lawsuits/Garnishments-- Many individuals are forced to file because they are sued by an individual for an amount they cannot afford to pay. Whether it be a car accident, a slip and fall, or simply a collection matter, lawsuits can really hurt individuals who are already struggling to get by.
5) Foreclosure-- Many individuals are able to face their struggles and come out on top without filing bankruptcy. However, just as many individuals believe they are about to come out from the dark ages of personal finance and get their life back on track the mortgage company steps in and begins foreclosure proceedings. For these individuals, a total bankruptcy may not be necessary, but a Chapter 13 Reorganization gets filed in order to save their home.
1) Health-- Unfortunately many Americans are forced to file for bankruptcy due to health related reasons. This includes both uninsured individuals who cannot afford to repay their massive medical debt and individuals who are no longer able to work due to illness.
2) Loss of Job-- Many individuals are forced into bankruptcy because they have lost a job and have been unable to find a new job for 6 months or longer. Unfortunately this tends to be older workers who have lost a job that had good wages and benefits. These individuals often cannot find similar employment in part due to their age.
3) Divorce-- Divorce and bankruptcy go hand in hand. Nothing is harder on a marriage than financial struggles. Similarly nothing is harder on your budget than losing half your household income.
4) Lawsuits/Garnishments-- Many individuals are forced to file because they are sued by an individual for an amount they cannot afford to pay. Whether it be a car accident, a slip and fall, or simply a collection matter, lawsuits can really hurt individuals who are already struggling to get by.
5) Foreclosure-- Many individuals are able to face their struggles and come out on top without filing bankruptcy. However, just as many individuals believe they are about to come out from the dark ages of personal finance and get their life back on track the mortgage company steps in and begins foreclosure proceedings. For these individuals, a total bankruptcy may not be necessary, but a Chapter 13 Reorganization gets filed in order to save their home.
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