Consumer Bankruptcy Updates

Well, updating the last post, Teresa Giudice won the motion to

Bankruptcy news
Laugh In DVD
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approve the settlement splitting proceeds of her yet to conclude

malpractice lawsuit against her bankruptcy attorney with her

creditors.

What’s the Bankruptcy News?

Rowan & Martin’s Laugh In TV had a weekly sketch: “What’s the news?”

so that is why I stuck the picture in this post.

The U. S. Trustee is part of the Department of Justice, charged with overseeing all the bankruptcy cases in the country.

It seems that in California, they do not have enough to do, as they were investigating successful Chapter 13 cases, debtors who finished their payments according to the plan confirmed by the bankruptcy court.

I agree with my friend Cathy Moran.  Why are they worried about cases that are working?

Like any government agency, when they investigate, they have to find something wrong to justify the investigation, and then force changes that are of dubious value.

It seems they assumed Chapter 13 bankruptcy debtors were lying about the value of their property, in order to pay creditors less.

The creditors, of course, are free to look out for themselves.  And every Chapter 13 bankruptcy has a Chapter 13 bankruptcy trustee, who looks for these kind of things.

Nevertheless, Cathy Moran now has to:

There’s no reason to think that the results of the analysis would have been different had the trustee accumulated more paper in the file.  No finding that the facts were actually different than the debtor represented.  Just not enough paper.

So local practice will now require third party opinions of value even for underwater real estate, additional declarations, longer 341 meetings.  The list of new procedures, required questions, and supporting paper filled five pages.  Trees will die needlessly.

More Consumer Bankruptcy News

Debt relief scams.  “The Secret the Credit Card Companies Don’t Want You To Know”  “New Federal Government Program!” some of my favorite scam slogans.  Don’t waste your money on a bankruptcy attorney!

When it sounds too good to be true, it is.

Timothy McCallan may be the king of the debt relief scammers.

Thousands of customers signed up for debt settlement services offered by McCallan and paid him more than $100,000,000. Almost none of the money was paid to creditors of the customers as promised by McCallan,” U.S. Bankruptcy Judge William R. Sawyer wrote in an opinion entered in February.

Some good news, bankruptcy can be good for you!

Just ask Tommy Hilfiger about his bankruptcy.

“I was bankrupt when I was under 25 years old. I was in my mid-20s with my first business,” Hilfiger says.

“That was the best learning experience I ever had,” he says. “It was my MBA.”

. . . . . . . . .

Business was booming, and Hilfiger decided to forego college and start opening new stores across the state.

But soon after, Hilfiger’s accountant told him that the company had run out of money and that he needed to file for Chapter 11 bankruptcy.

It was a turning point that forced Hilfiger to get serious about business.

“Some people learn a lesson and then make the same mistake again,” he says. “I tried very hard not to make the same mistake twice.”

The near crisis taught him an important lesson about money: You have to know your company’s numbers inside and out.

Same goes for us, as consumers.  We need to know our numbers, inside and out.

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