Good Lawyers in Injury Divorce DUI

Brant and Seymour Divorce Heating Up

admin — Wed, 01 Sep 2010 16:48:21 +0000

Peter M. Brant and his soon-to-be ex-wife and former super model Stephanie Seymour have been in an extravagant divorce to end their 15-year marriage. When Brant met Seymour, he was a billionaire and know for his vast art collection and his very own polo team. She was a Sports Illustrated swimsuit model and the ex-girlfriend of [...]

Why Bankruptcy Has Become Baby Boomers’ Safe Haven In Troubled Times

admin — Wed, 01 Sep 2010 01:26:40 +0000

The American Bankruptcy Institute’s ABI Journal recently released a study that says that 42 percent of all debtors filing for bankruptcy were between the ages of 45 and 64 in 2007 and that older Americans file for bankruptcy at a faster rate than young adults. The increased rate of bankruptcy filings among older Americans is due to a combination of unemployment, medical debt, high credit card debt, devalued homes and the decimation of retirement funds. Not to mention the amount of discrimination many older Americans face in the employment market making it difficult for them to reenter the workforce after suffering devastating financial blows. Many older Americans are losing their jobs and losing their health insurance which can make them vulnerable to the financial fallout of medical emergencies. Medical debts pile up and they file bankruptcy. But before an older debtor files bankruptcy because of unemployment or medical debt, they often drain their home of equity or raid their retirement account in an attempt to repay debtors and avoid bankruptcy. What they don’t’ understand is that by doing this they are often digging themselves deeper into a debt hole that only bankruptcy can dig them out of. And like a line of tipped over dominos older debtors with equity lines of credit struggle to repay their debts and succumb to foreclosure, rely on credit cards and eventually face creditor lawsuits after months of avoidance and using one source of debt to pay another. It is at this point that older debtors finally file for bankruptcy. And it is at this point in their financial crisis that bankruptcy is the save haven they so badly need.

How The Triple Threat Foreclosure Crisis Is Fueling The Rise Of Bankruptcy

admin — Wed, 01 Sep 2010 00:21:21 +0000

The truth is out, the housing industry is not recovering and the economy may be facing a double dip recession. Sales of previously occupied homes plunged to their lowest level in 15 years and that’s despite the presence of some of the lowest mortgage rates we’ve seen in decades. But what is driving this perfect storm of economic malaise? And why are the current conditions driving even more people into bankruptcy? Fear, unemployment and the mortgage industry’s resistance to change are three major factors driving the foreclosure crisis and the tsunami of bankruptcies hitting cities around the nation.

People are afraid, afraid of losing their jobs, losing their homes to foreclosure and not being able to sustain the payments on a new mortgage. This is why they aren’t buying the glut of houses on the market; but this is also why the mortgage industry has severely tightened their lending standards. The mortgage industry knows that unemployment, right now the leading cause of foreclosure and bankruptcy, is rampant and they are afraid of lending to the “wrong” people. But the irony of the mortgage industry’s stance during this foreclosure crisis is that they are primarily responsible for creating the quagmire that is currently crippling this economy. It is the mortgage industry that refuses to change, to modify toxic mortgages or to even untie the hands of the bankruptcy system so that bankruptcy judges can modify residential mortgages and save homeowners from foreclosure. But the other irony is that because the mortgage industry’s fear and resistance to change, even more homeowners are seeking the protection of bankruptcy. So many homes have lost significant value that many 2^nd and 3^rd mortgages are becoming unsecured debt and dischargeable in bankruptcy. In a twist of fate, this devaluation of personal real estate gives many homeowners the opportunity to save their home from foreclosure by using bankruptcy after all and many of them are jumping at the opportunity.

Your Post Bankruptcy Life: Employment

admin — Tue, 31 Aug 2010 23:18:43 +0000

Many unemployed debtors are filing bankruptcy because they simply can’t pay their bills, are facing lawsuits and asset seizures. Generally speaking these unemployed debtors have had decent credit and paid their debts faithfully and on-time while employed; but because of unemployment or persistent underemployed they have become delinquent and need to file bankruptcy. Unfortunately, some uninformed or misinformed employers may misunderstand a job candidate’s bankruptcy filing and misinterpret their bankruptcy filing as a moral and character failing. This type of thinking, especially during this economy is a sign that many employers need a dose of reeducation regarding personal bankruptcy. But until we can reeducate these businesses on a mass scale, post-bankruptcy debtors need to be careful to present their bankruptcy in the proper light. Below are two important things every post-bankruptcy debtor must do if they are looking for employment:

Don’t hide your bankruptcy. If an employer says that he/she is going to run a credit check then you need to make them aware of your bankruptcy filing.
Understand that those employers who misjudge bankruptcy filers are not necessarily against bankruptcy; but they are usually against many of the misconceptions about why people file bankruptcy. For example, some misinformed employers believe that bankruptcy filers are irresponsible, have poor impulse control or refuse to take responsibility for their actions. While there are certainly bankruptcy debtors who fall into those categories, most bankruptcy debtors are individuals who have fallen upon hard times and need a helping hand. It is the post-bankruptcy debtor’s job to assure the employer that they belong to the category of responsible debtors who have fallen upon hard times and used bankruptcy to get a second chance.

What I Wish I Had Known When I Started Law School, Part I

admin — Tue, 31 Aug 2010 13:06:10 +0000

Editors’ Note: As each new 1L class begins its legal education, our thoughts often turn back to our own first few weeks of law school. This post begins a new series on “What I Wish I Had Known When I Started Law School.” I went to law school for all the wrong reasons. When I started in Georgetown’s part-time, [...]

Lessons From Teresa Giudice’s Bankruptcy

admin — Tue, 31 Aug 2010 01:15:01 +0000

If you’ve been watching the news and following the celebrity blogs then you’ve probably heard that Teresa Giudice is taking a lot of heat for spending $60,000 on home furnishings after filing bankruptcy. Her bankruptcy attorney is supposedly defending the purchases saying that the money spent was from income earned after the bankruptcy fling and therefore could be legitimately spent for necessities such as furnishing her home.

“That was the money she earned as an advance for her book Skinny Italian,” her attorney Jim Kridel tells PEOPLE. “Since she earned it after the filing, she was absolutely free to spend it.”

But many people were shocked and upset about Giudice’s splurge not so much because she may have broken bankruptcy laws, but because they felt that she was spending lavishly while in bankruptcy. This is the deal, Giudice lives a lifestyle that requires lavish spending and that lifestyle is probably one of the things that drove her into bankruptcy. How many of us live a lifestyle where we live beyond our means, drive up debts we can’t pay and eventually need to file bankruptcy? Bankruptcy is offering Teresa Giudice and her husband an opportunity to get a fresh financial start; but she cannot successfully take advantage of that opportunity if she is not willing to change her spending habits after bankruptcy. The Giudice family must make the effort to drastically pull back on their spending and abandon the idea of living a luxurious lifestyle if they cannot afford it. Giudice and many other less wealthy individuals are seduced by the idea of appearing to live in the lap of luxury even if it means they will squander the second chance that bankruptcy affords them. Don’t allow the ego boost that a faux luxurious lifestyle provides to ruin you second chance after bankruptcy.

How To Property Disclose Income During Bankruptcy

admin — Mon, 30 Aug 2010 23:30:08 +0000

When a debtor files bankruptcy, they must fill out what is called the Statement of Financial Affairs. On the Statement of Financial Affairs the debtor must disclose all the income they have earned from employment or the operation of a business. They must also disclose to the bankruptcy court all income received from any other sources. Here a few things you need to know about properly disclosing income on your bankruptcy’s Statement of Financial Affairs:

The bankruptcy debtor must disclose all income received for the year that they are filing bankruptcy and the previous two years. For example, if a debtor filed bankruptcy in October 2010, they would need to disclose all income for the years 2008 and 2009. This can usually be accomplished by providing tax returns, W-2s, paystubs or a profit and loss statement if the debtor is self-employed or owns a business.
If a debtor is filing Chapter 13 bankruptcy or Chapter 11 bankruptcy they need to also disclose their spouse’s income. The disclosure of a spouse’s income when filing Chapter 7 bankruptcy is not required on the Statement of Financial Affairs unless the spouse is also filing bankruptcy. However, since the spouse’s income is already listed on the Means Test, many bankruptcy attorneys also list it on the Statement of Financial Affairs when filing Chapter 7 bankruptcy despite the fact that it is not required.
When disclosing income on the Statement of Financial Affairs the debtor must include all income even income that is exempt in bankruptcy such as Social Security and child support payments. Also, if the debtor is being paid in cash or “under the table” this income should also be included in the bankruptcy filing’s Statement of Financial Affairs.

How To Battle Non-Wage Garnishments

admin — Mon, 30 Aug 2010 22:12:53 +0000

If a debtor has become delinquent on their debt payments for long enough, creditors will eventually file a lawsuit against them and may win a judgment. With a judgment in place the creditor can garnish wages and get the right to use non-wage garnishments which typically means they will seize bank accounts. If a creditor serves the debtor’s bank a non-wage garnishment affidavit, the bank is required by law to hand over the debtor’s money on deposit up to the amount owed to the creditor, even if that puts the debtor’s bank account at a zero balance. For example if a debtor owed $3,000 and had $1,500 in their bank account, the non-wage garnishment could wipe out the account handing over the $1500 to creditors. But there are things a debtor can do to protect their bank accounts from non-wage garnishments:

Be aware of any lawsuits filed against you by creditors. If you are significantly delinquent on any debt payments, there will be a lawsuit, it is just a matter of time. If you are facing a lawsuit, don’t ignore it. Show up to court and consider filing bankruptcy to stop the lawsuit. Bankruptcy will stop the lawsuit and prevent a non-wage garnishment before it happens.
Don’t deposit all of your money into your bank account. Yes, we know that is inconvenient; but depositing money into your bank account gives the creditor access to your funds. Consider paying your bills using money orders until you can sort out your financial affairs. Also, consider filing bankruptcy if you have large amounts of debt that you simply cannot pay.
If a creditor has already won a judgment against you, consider challenging the validity of that judgment. Were you served properly? Many creditors fail to properly serve debtors when they file a lawsuit leaving the debtor unaware of litigation. If a creditor failed to serve you, you may be able to have the judgment thrown out. Has the statute of limitations passed? In Texas, credit card companies have only four years to sue a debtor for non-payment. If the creditor files a lawsuit after the statute of limitations has expired, the debtor can have that judgment thrown out.

Law and Theology – Who Says It’s Not Practical ???

admin — Mon, 30 Aug 2010 15:25:03 +0000

I was glad to see that Bruce linked to the fascinating debate on the nature of legal education prompted by Brent Newton’s article claiming that law professors “preach” what they don’t “practice.” I’ll comment later, although my general view, as someone who has much more practice experience than the typical full time legal academic, I [...]

Facebook: A Tool for Cheaters?

admin — Mon, 30 Aug 2010 15:19:56 +0000

Many people have learned that social media can be a devastating weapon in a divorce case. With the ability of a spouse to catch their significant other in a lie, or in compromising positions, it’s easy to see how websites like Facebook can open a flood gate of information. But do these social media websites do [...]

Homeowner Are Still Suffering From ARMs But Bankruptcy May Help

admin — Sun, 29 Aug 2010 21:14:11 +0000

When the foreclosure crisis first began we heard a lot about the devastating effects of adjustable rate mortgages (ARMs) which were financially crippling millions of homeowners whose interest rates had reset. Unfortunately for many homeowners, ARMs are still pushing many into foreclosure causing a silent crisis on the thousands of communities across the nation. At the height of the housing boom and lending mania homeowners were given the option of choosing to structure their mortgages in a way that allowed them to make very low monthly payments for the first 3 to 5 years of their mortgage repayment period, but held the risk that the mortgage payment would balloon to sometimes double or even triple the original monthly payment. Many of those homeowners ended up in foreclosure because they were not prepared for the drastic increase in their mortgage payments. The good news for those debtors facing foreclosure due to an ARM reset is that if the value of their home fell below the balance of their second or third mortgage they may be able to discharge those debts in Chapter 13 bankruptcy while keeping their home and enjoying a lower payment. How is that possible? Well under the rules of bankruptcy, a debt is only considered a secured debt as long as the property it is secured by has enough value in it. For example, if you purchased a $250,000 home with three mortgages, a $150,000 first mortgage, a $50,000 second mortgage and a $50,000 third mortgage and your property’s value fell to $150,000 by the time you filed for bankruptcy, the second and third mortgage would not be considered secured debt. Technically the second and third mortgages mentioned in the example could be discharged in bankruptcy. To find out more about how you can save your underwater home in bankruptcy speak with a Dallas-Fort Worth bankruptcy attorney.

New Efforts To Aid Unemployed Homeowners Avoid Foreclosure Misguided?

admin — Sun, 29 Aug 2010 18:09:16 +0000

The newest foreclosure prevention scheme to come out of the White House is a $3 billion loan program that’s intended to help unemployed homeowners avoid foreclosure. But some homeowner and consumer advocate groups are crying foul saying that the only people guaranteed to benefit will be the banks. Right now, the government is targeting states hardest hit by the foreclosure crisis (Texas is not currently included on that list) for a program that would offer loans of up to $50,000 over the course of two years to unemployed homeowners facing foreclosure. This money would be given to the banks to issue loans to unemployed homeowners facing foreclosure but the banks would not be required to provide matching funds, modify the mortgages or any other concessions that would further aid the homeowners. However, the banks would benefit once the loans are repaid with interest. Furthermore, many housing advocates are saying that because the banks are not required to make any type of beneficial changes to the mortgages which are often underwater, many of the homeowners still won’t have any equity in their homes at the end of two years leaving them once again vulnerable to foreclosure.

Housing advocates have a very good point. At this point the way the unemployed homeowner loan program is designed banks don’t really have any skin in the game. They get to control who gets the loan and they get the benefits when the loan is paid back; but they are not required to modify mortgages which have balances significantly above the real value of the home. Also, it is the homeowner once again who is taking on all of the risk as they will need to repay the loans in two years regardless of the home’s value and whether or not they have found employment. Also, there is a great risk that many people will opt for these loans instead of filing bankruptcy even if their financial situation clearly indicates that a bankruptcy filing is necessary.

Bankruptcy Automatic Stay Protection and Post-Foreclosure Proceedings

admin — Sun, 29 Aug 2010 14:58:35 +0000

Has your mortgage servicer already filed a foreclosure against your property? Has the mortgage servicer already won a foreclosure judgment for possession and is just waiting to evict you from the property? You may still be able to reap limited and temporary protections from the foreclosure eviction after filing bankruptcy. Here’s what you need to know:

Section 326(b)(22) of the Bankruptcy code states:

The filing of a petition…does not operate as a stay subject to subsection (l), under subsection (a)(3), of the continuation of any eviction, unlawful detainer action, or similar proceeding by a lessor against a debtor involving residential property in which the debtor resides as a tenant under a lease or rental agreement and with respect to which the lessor has obtained before the date of the filing of the bankruptcy petition, a judgment for possession of such property against the debtor.

In other words, filing bankruptcy after a mortgage servicer has successfully filed a foreclosure against your property and is in the process of evicting you will not reverse the foreclosure at this point. However, filing bankruptcy even at this point may buy the debtor more time to put their affairs in order before they are evicted. It is important to understand that if the mortgage servicer has not won a judgment for possession before you file bankruptcy, you may still be able to save your home. For example, if a debtor receives a notice saying that the mortgage servicer is planning to file foreclosure against the property, the debtor may still save the home if they file bankruptcy at any point before the mortgage servicer wins a judgment for possession. Speak with a qualified Dallas-Fort Worth bankruptcy attorney to find out exactly how bankruptcy can save your home from foreclosure.

Best of the Blogs

admin — Sun, 29 Aug 2010 05:56:43 +0000

This week: Those who don’t do, can’t teach? Also, an unconstitutional village ordinance on real estate for-sale signs may serve as a symbol of racial integration; the surprising stem cell research injunction; and is there a “private action” requirement in the Constitution? First, it’s recruiting season for new law professors, which means that this week it [...]

Foreclosures Continue To Rise Because Of Ineffective Programs

admin — Sun, 29 Aug 2010 03:45:59 +0000

The foreclosure crisis is threatening to enter a third year as the Tarrant County foreclosure rate for September showed an increase of 36 percent from August and Dallas County foreclosure postings jumped by 19 percent from a year ago. The root of the foreclosure crisis is not just unemployment and toxic mortgages but also the ineffective foreclosure prevention programs that the government continues to implement. It is very telling that the government continues to create and implement ineffective foreclosure programs such as Making Home Affordable while simple solutions such as allowing bankruptcy judges to modify toxic mortgages in Chapter 13 bankruptcy are ignored. Why is that? The obvious answer is that the mortgage industry has a lot of influence over our legislators while homeowners have few advocates strong enough to force the type of policy changes that are really necessary to stop the foreclosure crisis. Legislators seem to have forgotten who they truly represent and insist on funneling foreclosure prevention funding to mortgage companies instead of homeowners who need it. Billions were spent on the modification program that was designed to help 4 million homeowners avoid foreclosure; but many have not benefited. Many mortgage companies have enrolled homeowners into temporary modification programs only to deny them permanent modifications they really needed to avoid foreclosure. In the meantime the mortgage companies still benefit, reaping the rewards of the foreclosure prevention programs funded by taxpayers while avoiding the responsibilities of actually preventing foreclosure on a long-term basis. Also, many homeowners are given false hope that they can save their home with the ineffective foreclosure prevention programs only to find that the only way they have a fighting chance to save their home is if they file bankruptcy.

Exercising Your Debtor Rights

admin — Sun, 29 Aug 2010 01:46:03 +0000

Many debtors feel helpless under the onslaught of bills, but every debtor has a specific set of rights as established and protected by the Fair Debt Collection Practices Act. It is important that every debtor exercise his/her rights when they are contacted by a bill collector. Here’s what you need to know:

When a debt collector contacts you regarding a debt the law requires that they provide the following information in writing within 5 days:

The debt collector must provide the debtor with the exact amount of the debt owed. This is important because oftentimes when a debt is sold to a collections agency the amount owed is wrong. If the amount is not correct you have the right and it is in your best interests to challenge the incorrect amount.
The debt collector must provide the name of the creditor that says that you owe the debt. You would be surprised at the number of mix-ups in this area. Because debts are being sold so often and because of the carelessness of some debt collection agencies debtors can end up with debts that don’t belong to them. By providing this information in writing, you will have the opportunity to challenge the debt if you never took out a loan from the company listed.
The debt collector must also state in writing that the debtor has the right to dispute the validity of the debt within 30 days or the debt will be assumed valid. Debtors who think that the debt is not valid need to move quickly to dispute the debt in writing. After the dispute is submitted to the debt collector they must prove that the debt is valid and do so in writing.

Federal Reserve Adopts New Rules To End Harmful Mortgage Loan Kickbacks

admin — Sat, 28 Aug 2010 22:47:07 +0000

The Federal Reserve has adopted new rules banning what is called “yield spread premiums,” a practice which allowed mortgage brokers and lenders to earn extra profits every time a borrower was placed in a mortgage that had higher-than-market interest rates. What are yield spread premiums? Before the mortgage bubble, mortgage brokers were traditionally paid directly from the home buyer. But with yield spread premiums, mortgage brokers were allowed to receive compensation from both the buyer and lender. Lenders offered an incentive to brokers who placed borrowers in high interest toxic loans by paying bonuses on those loans. Many critics of yield spread premiums argue that this type of kick-back compensation fueled the foreclosure crisis by creating an environment where mortgage brokers were rewarded for placing unsuspecting borrowers in expensive and toxic loans that made them more vulnerable to foreclosure.

The new rules now prohibit bonuses based on a loan’s interest rate; but does allow compensation based on a fixed percentage of the actual loan amount. Also, the new rules state that the mortgage broker must provide the borrower with several mortgage options, including mortgages that have the lowest qualifying interest rate, the lowest points and origination fees and the lowest qualifying rate.

While it is good news that the Federal Reserve has finally stepped forward to stop these unethical business practices, it is unfortunate that they waited until the foreclosure crisis did major damage to those who fell prey to toxic mortgages. The Federal Reserve also needs to include some penalties for those who violate the new rules and remain vigilant for any signs that the mortgage industry may be discovering and exploiting loopholes in the new laws.

The Model and the Millionaire do Divorce Celebrity Style

admin — Sat, 28 Aug 2010 16:27:04 +0000

Friends were stunned when the model Stephanie Seymour and the millionaire many times over Peter Brant were married without a prenuptial agreement, according to a recent article in the New York Times. Donald Trump was among those surprised when the two married without a prenup. “It’s a lot easier to get done when you love each [...]

New Comments Address Fraud Sentencing and Deferred Prosecution Agreements

admin — Sat, 28 Aug 2010 02:25:11 +0000

The latest issue of the Marquette Law Review features a student comment by Ryan Parsons on the treatment of “temporary victims” under the federal sentencing guidelines. In crimes such as bank fraud, individual accountholders that have been defrauded are often reimbursed by the bank and, therefore, made economically whole. Such reimbursed accountholders are often ignored [...]

Statute Of Limitations, Credit Reports and Your Credit Card Delinquency

admin — Sat, 28 Aug 2010 00:45:20 +0000

Debtors facing collections actions by creditors are often unaware of time limits concerning their delinquent credit card accounts and other debts. In the state of Texas, a creditor cannot sue a debtor for payment on a delinquent account four years after last payment. For example, if you last made a payment on a credit card in 2006, the creditors would only have until 2010 to sue you for the balance of the loan. That doesn’t mean that the creditor has to stop pursuing you for payment; but it does mean that they can’t use the court system to help them collect on the credit card debt. Also, the credit bureaus are only allowed to keep delinquent account information on your credit report for seven years from the first date of delinquency. What this means is that if you stopped paying your credit card in June of 2005, the credit bureaus would only be allowed to report that information until June of 2012.

Debtors should be aware of the following issues that often come up with old delinquent credit card accounts and other delinquent debts when they are nearing the expiration of the statute of limitations:

Creditors will often file “midnight hour lawsuits” against a debtor whose delinquent credit card account or other debt is reaching the statue of limitations. The creditors file the lawsuit hoping that they will be able to win a default judgment and extend the time they can pursue the debtor for payment using the courts. Because many debtors fail to show up to court, many creditors are able to get default judgments even if the statute of limitations has expired.
Making a payment and in some cases acknowledging that you owe the debt can reset the clock for the statute of limitations. This is why debtors who have delinquent credit card accounts or other debts should not begin making payments on the old account unless they are sure they can pay it off.

Why You Should Not Opt-In For Overdraft “Protection”

admin — Fri, 27 Aug 2010 23:17:12 +0000

New laws have prohibited banks from automatically enrolling their checking account customers into overdraft “protection” schemes. But many banks are getting creative about convincing their customers that signing up for overdraft “protection” schemes is to their benefit. Don’t doubt for one minute that the only people that the overdraft “protection” schemes benefit are the banks. Below are several reasons why you should not enroll in your bank’s overdraft “protection” scheme:

High cost. It costs a lot of money to overdraft your checking account and enrolling in an overdraft “protection” program does not reduce or eliminate that cost. When a consumer overdrafts their bank account it can cost as much as $40 per transaction and some banks have been accused of engineering their overdraft “protection” schemes so that they earn the maximum amount of fees they can. A matter of fact, overdraft “protection” raked in nearly $40 billion in 2009 alone.
You probably don’t need overdraft “protection.” What you need is a system of balancing your checking account. First of all, if you don’t overdraft your checking account, this is a non-issue; but if you routinely overdraft your checking account, the good news is that the new laws state that if there are not enough funds in the account when you attempt to make a purchase that the transaction must be denied.
It really isn’t “free.” One of the biggest selling points of overdraft “protection” schemes is that they are supposedly free. But while they may be free at sign-up, once the “protection” is triggered the costs can pile up very quickly.

When Signing A Reaffirmation Agreement During Bankruptcy Makes Sense

admin — Fri, 27 Aug 2010 22:16:03 +0000

One of the most common reaffirmation agreements during bankruptcy is between a car lender and a debtor. A reaffirmation agreement is a contract between the creditor and the debtor stating that despite the bankruptcy filing the debtor is still responsible for paying the debt and agrees to continue paying as if there was no bankruptcy filing. In the case of a car loan, signing a reaffirmation agreement means that if the debtor fails to make payments on the car loan after bankruptcy, they can face vehicle repossession and they can be sued for the balance of the loan even after the car has been auctioned. Most bankruptcy attorneys will tell you to avoid filing a reaffirmation agreement; but there are a few instances where signing a reaffirmation agreement makes sense.

The debtor only owes a small amount on their car loan and the loan can be repaid within 12 months after the bankruptcy has been discharged. Of course, the debtor needs to have income to make those payments and that income should be stable and consistent. If a debtor is on unemployment benefits or is only working temporary or part-time jobs, signing a reaffirmation agreement even if the balance on the loan is low may not be wise.
The debtor’s monthly car payment is low. If a debtor is paying less than $200 per month on their car loan and they have a low car loan balance, it may not be so risky to sign the reaffirmation agreement during bankruptcy. However, if the debtor is unemployed or has limited income, it still may not be worth it to sign the reaffirmation agreement during bankruptcy.
The debtor has a co-signer who is not part of the bankruptcy. If the debtor fails to sign the reaffirmation agreement during bankruptcy and the creditor may go after the co-signer. In this case, the debtor may decide to sign the reaffirmation agreement so that co-signer does not suffer. But even in this case, the debtor should make sure that they can actually make the payments and fulfill their obligations to the car loan before signing the reaffirmation agreement.

The Dedication of Sensenbrenner Hall

admin — Fri, 27 Aug 2010 18:48:37 +0000

Today is the 86th anniversary of the dedication of the former Marquette law building now known as Sensenbrenner Hall. On Wednesday, August 27, 1924, a formal ceremony was held to mark the completion of the new law school building, known then only as the Law Building, shortly before the start of the 1924-25 academic year. The [...]

9th Circuit Holds That A Corporation Can’t Be Threatened

admin — Fri, 27 Aug 2010 17:25:47 +0000

Apparently, if you want to threaten Superbowl viewers lives without punishment, all you need to do is address your letters to media organizations instead of actual individuals. At least that’s what worked for Kurt Havelock, whose conviction of mailing threatening messages was overturned by the ninth circuit this week. According to the LA Times, Havelock was [...]

Elin Nordegren talks about divorce from Tiger Woods

admin — Fri, 27 Aug 2010 16:26:54 +0000

Elin Nordegren has granted an interview to People magazine, to talk about her recently finalized divorce from her now ex-husband, golfer Tiger Woods. As Tiger’s golf game suffers under what could be the stress of the divorce, Elin shared some of her experience in the interview that has the whole world listening to the story of [...]

Chicago Woman Charged with DUI after Car Accident Leaves One Child Fatality

admin — Fri, 27 Aug 2010 15:41:32 +0000

A Chicago woman has been charged with felony aggravated DUI resulting in an accident and bodily harm, driving under the influence, driving with alcohol in the vehicle, driving without insurance, driving 15-20 miles over the speed limit, failure to reduce speed, and a child restraint violation following a north side car accident that left her four year old son dead. The fatal Chicago car accident occurred near the corner of Fullerton and Kostner early last Sunday morning. According to reports, the defendant driver was travelling eastbound on Fullerton in a Dodge Avenger when she went through a red light and rear-ended a Honda Civic. The Civic reportedly struck another vehicle and came to rest against a building. The defendant’s vehicle then crossed over into the next lane and struck a Chevy Tahoe. Witnesses to the accident reported that the defendant driver of the Avenger took her two boys out of her vehicle and fled the scene immediately following the car crash. Her husband, who was in the front seat of the vehicle, also left the scene fleeing down Fullerton Ave.

The children involved in the fatal Chicago car accident were taken to Children’s Memorial Hospital where one young boy was pronounced dead. The boy suffered a lacerated liver and multiple contusion injuries. The defendant’s blood alcohol level was registered at .151 – almost twice the legal limit of .08. Responding police also found two open beer cans in the vehicle.

Alcohol related motor vehicle accidents can be very dangerous and even fatal. If you have been involved in an alcohol related vehicle accident and would like to speak with an experienced personal injury attorney in the Chicago area, please click here.

Walker, Neumann, and Eckstein Hall

admin — Fri, 27 Aug 2010 03:01:30 +0000

Before we get to the candidates, how did the building do? Wednesday night’s one-hour session between Mark Neumann and Scott Walker, who will face off in the Republican primary for governor on Sept. 14, was the first event of its kind in Eckstein Hall, the new home o f the Law School. The discussion – call [...]

How Lying During Bankruptcy Can Cost You

admin — Fri, 27 Aug 2010 01:02:55 +0000

Robert Negrelli, filed bankruptcy on March 23, 2005 and unfortunately lied to the bankruptcy court in an attempt to defraud the system. At the time, Negrelli was a licensed real estate broker, owned a real estate company and specialized in selling high-end homes; but claimed initially that he only earned $81,000 in the two year period prior to filing bankruptcy. Of course, his lie was soon discovered and he finally admitted that in fact he earned significantly more during the two year period prior to filing bankruptcy. Negrelli also blackmailed some unsecured creditors during his bankruptcy, telling them that if they filed a claim he would not pay them; but if they didn’t file a claim in bankruptcy, he would pay them in full at the resolution of the case. Negrelli has been charged with and pleaded guilty to bankruptcy fraud and now faces up to five years in prison and a $250,000 fine.

There is a lesson in Negrelli’s bankruptcy case – you cannot successfully manipulate the bankruptcy system and in trying to do so you put yourself at risk to lose far more than you can gain. Hiding income during bankruptcy is nearly impossible; just about any amount of money you earn can be traced, tracked down and accounted for. Threatening your creditors and failing to list them in your bankruptcy petition is a recipe for a prison sentence. Also, attempting to manipulate the bankruptcy system can result in a dismissal of your case, a denial of your bankruptcy discharge and a bar on future bankruptcy filings if the infraction is considered grievous enough by the bankruptcy court.

Did Fame Push ‘Real Housewives of New Jersey’ Star Into Bankruptcy?

admin — Thu, 26 Aug 2010 23:56:27 +0000

‘Real Housewives of New Jersey’ star Teresa Giudice and her husband Joe, who owe creditors nearly $11 million are feeling victimized by their fame, according to an unnamed friend.

“If she wasn’t on the show, this all would be much easier,” a friend of Teresa’s tells a news publication. “Everything would be settled by now, but because she is now famous everyone is using the situation to get press for themselves and humiliate her and her family. It’s honestly got to the point where she’s not sure if she wants to come back for another season.”

Well fame may be responsible for the Giudice bankruptcy; but not in the way that the friend suggests. While it’s true that there may be many who are attempting to profit from the Giudice infamous bankruptcy case, it is probably the fame that was at least partially responsible for pushing the Giudices to accumulate the type of debt that lead to their bankruptcy filing. All debtors experience the pressure to “perform” financially in the sense that they feel they must have the best car, the nicest house and the trendiest clothes. This pressure can often lead to the type of spending behavior that leads to bankruptcy; but when a person is famous that pressure can double or even triple. A matter of fact, fame can lead to the type of hyper-inflated feeling of financial invincibility that lead the Giudices to spend $60,000 on curtains, wall hangings, mirrors, frames, tables and chairs just days after filing bankruptcy. For most of us “ordinary folks” there are people around us who will say “Who do you think you are, Donald Trump?” But who is willing to say the same to a famous individual when they are spending themselves into bankruptcy? That’s why it is so easy for celebrities to waste millions and end up in bankruptcy court if they don’t have sound personal finance skills necessary to manage their budget whether big or small.

Why You Must Say No To Repaying Friends and Family After Bankruptcy

admin — Thu, 26 Aug 2010 22:55:59 +0000

Filing bankruptcy on debts owed to family and friends is a very emotionally charged issued. It hurts to file bankruptcy and not repay your loved ones especially if they loaned you money they could not afford to just give away. This is why we hear so many stories about debtors failing to include in their bankruptcy filing debts owed to family and friends or even worse, transferring cash and assets to family and friends right before they file bankruptcy. We know it is hard to include your friends and family in your bankruptcy filing and even harder to not repay them after you have discharged the debt and continued on with your post-bankruptcy life; but doing so is essential to your financial well being. Let’s take a look at why you should not promise to repay family and friends after bankruptcy:

If you filed bankruptcy because you were unable to pay your debts, it is unlikely that you will be able to repay those debts after your debts are discharged. Promising to repay loved ones after bankruptcy is unfair to them because it is a promise that you most likely won’t be able to keep. The reality is that if you are making the same about of income after bankruptcy as you were before bankruptcy you are not going to have enough extra to make payments on those discharged debts.
Bankruptcy is about debt forgiveness and that includes debts owed to family and friends. People file bankruptcy because they need their debts to be forgiven. If you tell your friends and family that you are going to repay them after bankruptcy you are essentially saying that you really don’t need debt forgiveness. Make it clear to your family and friends that you really do need debt forgiveness and let them know that while you wish you could repay them, you simply cannot.
By promising to repay your friends and family after bankruptcy you are in essence reaffirming your debt agreement with them. Let’s clarify, you are not legally reaffirming your debt agreement and they would not be able to sue you in court to force you to repay a debt that was discharged in bankruptcy; but they could emotionally hold that promise over your head. We know that there are some feelings of guilt surrounding discharging a loved one’s debt in bankruptcy; but debtors who promise to repay those discharged debts are setting themselves up for even more guilt and stress when they are unable to keep their promise in the future.