Category Archives: Bankruptcy

More Debt, More Debtor Harassment

More consumer debt always leads to more bankruptcy

more debt harassment
Oliver Twist wants more


Does more debt lead to more debtor harassment?

The November data are in, and, yes, consumer debt, that month of big Christmas shopping, went way up.

Having read the latest Consumer Protection Financial Bureau consent judgment against a debt collection law firm, I wonder if there is a connection.

This law firm collected medical debt.   A lot of it,  From the CPFB consent judgment:

Corporate Respondent is a law firm that specializes in medical Debt. It has offices in Tulsa and Oklahoma City, Oklahoma that attempted collection on approximately 700,000 Debts totaling over $500 million annually. Corporate Respondent is paid on a contingency basis for its collection work and this work has generated millions of dollars in revenue.

Wow.  Medical debt is different from consumer debt, in that few of us choose when we incur medical debt.

Illegal Debtor Harassment?

I love capitalism, the only ethical economic way of life.

That does not mean there is no sin or bad guys operating.  It does not preclude greed, one of the seven deadly sins.

Greed has led to nickel scraping outsourcing, in the case of this Oklahoma law firm, the lawyers did not bother actually reading the files that it received. (You can read the entire order at the link above.)

  1. Upon receiving a new account from a client, Corporate Respondent’s computer system automatically sends the Consumer whose Debt is the subject of the account an initial Demand Letter.
  2. Prior to October of 2012, this initial Demand Letter did not include any disclaimer to alert Consumers that no attorney had reviewed their account prior to the initial demand being mailed.
  3. Since at least January 2012, in many instances, no attorney reviews Consumers’ accounts before Corporate Respondent sends Consumers the initial Demand Letter.
  4. After the initial Demand Letter is mailed, Corporate Respondent assigns accounts to account managers, who, after 33 days, call Consumers seeking payments.When account managers call Consumers, they immediately identify themselves as calling from a law firm. When Consumers call Works & Lentz, if a person does not answer, the automated greeting identifies Works & Lentz as a law firm, stating: “You have reached Works & Lentz, Attorneys at Law.”Now, this type of mass produced lawsuit, run by potted plant attorneys, who just robo-sign everything, is not an exception.  It is the norm in consumer debt collection.

    I just succeeded this week in getting a case dismissed in which the zombie debt buyer produced NO documentation that it had actually purchased the loan on which it was suing.  On which loan the last payment was made out side the statute of limitations, so they would have lost the suit anyway.Our FDCPA (Fair Debt Collection Practices Act) suit is in the works.

  5. Contact me if you are being harassed by debt collectors, including law firms.
  6. (I do not know why I cannot get rid of these numbers.  !@#$%^&*()
Digiprove sealCopyright secured by Digiprove © 2017 Kurt O'Keefe

Bankruptcy and Interest Rate Increase

The Fed increased interest rates 25 basis points,   that is, .25%, and, the banks followed along. Lots of consumer credit is tied to “prime” rates set by banks. Which uniformly go up when the Fed raises its rate, which is why the Fed raises that rate. How Much Consumer Credit Is Tied To PrimeContinue Reading

Thankful For Bankruptcy

thankful for bankruptcy

Sure, I am a bankruptcy lawyer, why would I not be We all should be, not just us insolvency professionals.. Why Thankful for Bankruptcy? Because, in short, bankruptcy is good for the economy. Because, starting over is a good thing to be able to do when a business fails. Or a consumer. Walt Disney isContinue Reading

Home Bankruptcy Exemption In Michigan

If you file bankruptcy, you want to know if you can keep your home.  You want to know, what is the home bankruptcy exemption? Home Bankruptcy State Exemptions In Michigan Michigan has home exemption choices for folks who file bankruptcy here. Tenancy by entireties is available as one option. That is a fancy legal termContinue Reading

What Is Mortgage Arrearage?

Mortgage arrearage is the amount you are behind in your mortgage payments.  Not behind like in the picture, Behind as in missed payments, plus late fees, plus, well, some other things. Mortgage Arrearage Interest accrues on the unpaid balance of a loan, so if you cannot make your mortgage payment, the balance goes up, notContinue Reading

House and Bankruptcy

Your house and bankruptcy covers a lot of issues. A new client has one scenario:  has a house that is underwater (not ice yet, like the picture displayed) being worth less than what is owed on that house. So, they rent a different house for their residence. But, those tenants are not paying their rent.Continue Reading

A Day In The Life Of A Bankruptcy Attorney

Lots of complicated bankruptcy questions fell in my lap today. So, I thought I would recap some of my bankruptcy attorney highlights. Bankruptcy Attorney and the Trustee First up, a follow up to a question, from a year ago, from an out of Michigan attorney who is a creditor. Because the Chapter 7 bankruptcy debtor,Continue Reading

Bankruptcy Filings Going Up?

Bankruptcy filings follow, logically, consumer debt. When debt goes up, eventually, Bankruptcy Filings Go up. Is Consumer Debt Going Up? Uh, yup. Consumer borrowing picked up a bit in May from the prior month, but the pace of growth remained well below the surge seen in March, suggesting that consumers are still reluctant to run upContinue Reading