Category Archives: Bankruptcy

Consumer Bankruptcy Update

Different consumer bankruptcy things happening.

Consumer Bankruptcy News - Michigan
Consumer Bankruptcy News – Michigan

Good Consumer News

The FTC caught another bad guy.

This time, the Federal Trade Commission shut down an operation that collected more than $690,000 in fake debts by threatening consumers with lawsuits or arrests. 

They are not the only ones using this scam.

When an individual called the provided number, they were often connected to a debt collector who falsely claimed to be an attorney or be working on behalf of attorneys, the complaint states.

To make these assertions seem legitimate, the FTC notes that the collectors would often possess or claim to possess individuals’ personal information, or claim to be from an unrelated, legitimate small business.

The rep then alleged that the individual was delinquent on a payday loan or other debt and that legal action would be taken.

The reps advised callers that they could settle the action by making a payment over the telephone using a credit or debit card.

In some cases, the complaint states, the collectors would threaten consumers with arrest if they failed to pay an alleged debt immediately.

I just got a check to settle a claim my client had for the same conduct by a different outfit.

Debt collectors only use these tactics because they work.

And there are not enough attorneys doing this work to get relief for abused consumers.

More Good News

The U. S. Supreme Court held that an inherited IRA was not exempt under the federal exemptions.

That was not good.

But a Texas bankruptcy judge has allowed an inherited IRA to be exempted under Texas state law, so, that is good.

So, it depends on what state you live in, what its exemptions are, but you have a chance, whereas there is no chance under the Federal exemptions.

Other Bad Debt Collectors

Debt collecting just does not draw the best people.

The government allows the IRS to hire debt collectors, and guess what?  They are abusing consumers!

Well, one of them, at least, according to  Stacy Cowley and Jessica Silver-Greenberg in the New York Times.

Raid your 401(k). Ask your boss for a loan, load up on your credit cards, or put up your house as collateral by taking out a second mortgage.

Those are some of the financially risky strategies that Pioneer Credit Recovery suggested to people struggling to pay overdue federal tax debt. The company is one of four debt collection agencies hired by the Internal Revenue Service to chase down late payments on 140,000 accounts with balances of up to $50,000.

The call scripts those agencies are using — obtained by a group of Democratic senators and reviewed by The New York Times — shed light on how the tax agency’s new fleet of private debt collectors extract payments from debtors. On Friday, those senators sent a letter to Pioneer, the I.R.S. and the Treasury Department accusing Pioneer of acting in “clear violation” of the tax code.

You cannot rely on advice from the enemy.  When the bad guys call, you need someone on your side.

Digiprove sealCopyright secured by Digiprove © 2017 Kurt O'Keefe

Car Debt And Bankruptcy

Car Bankruptcy

Most people who file any Chapter of bankruptcy   have a car, or some other vehicle. Or more than one. Which, more often than not, have a lien on them, meaning that my client still owes money on the car. Auto lending was one of the few types of credit that did not dry upContinue Reading

Debt Crisis Coming?

The economy has been OK to good for a while.  A long while. How much longer will the upturn last? Julia La Roche at Yahoo Finance has a story on a guy who is not comfortable with the rosy credit scenario continuing indefinitely. “It’s been a terrific market for investors for quite a long timeContinue Reading

Bankruptcy And Mortgages

Bankruptcy and mortgages covers a lot of ground, this may be a two-parter. Chapter 7 Bankruptcy and Mortgages Mortgage just means debt secured by real estate.  Home equity loan is just a marketing term, if you pledged your house as collateral, it is just another mortgage. As I am licenses in Michigan, Michigan is theContinue Reading

How Much Debt Is Too Much Debt?

How much debt is too much debt?

Someone called me today, his wife laid off a couple months ago, and she cannot pay her credit cards on unemployment. More Debt Than You Can Pay Is Too Much Well, yes.  But that is a little late to find out.  Bankruptcy should be a last resort. Most growing economies have citizens who save aContinue Reading

Bankruptcy And Credit Card Debt

Americans are swamped in $1 trillion of credit card debt– will bankruptcy be the answer? Different Bankruptcy Chapters LIquidation, or straight, bankruptcy is what Chapter 7 is called.  That is to wipe out debts.  You get a discharge, which, in effect, takes your name off the note or contract. Americans now owe $1 trillion inContinue Reading

Consumer Bankruptcy News – Michigan

Bankruptcy blame and fraud dominate this week’s Consumer Bankruptcy lawyer News – Michigan. Bankruptcy Lawyers Get Blamed – By The Judge We get blamed by our clients all the time, but getting blamed by the bankruptcy judge is much worse. More fundamentally, the court is disappointed in Martell’s counsel for attempting to disallow a claimContinue Reading

Consumer Bankruptcy News

Consumer bankruptcy filings are sure to go up. Mortgage debt is one reason.  The government just keeps pushing out mortgages to people who cannot otherwise get them.  Those with lower credit scores and income. Which people, of course, default more often. People who cannot pay their debts are the ones who file bankruptcy. Mortgage DebtContinue Reading