The Power of the Automatic Stay

Firethorne Country Club filed for Chapter 11 in March. In a prime example of the power of the automatic stay, the club’s owners bought some time to reorganize before a creditor could seize operations. A 2 p.m. hearing in federal court on was canceled after Firethorne’s owner’s filed the bankruptcy petition just after 1 p.m. How [...]

The Do Not Call Registry: Can It Stop Creditor Calls?

Last week I wrote about creditors that text collections messages to debtors’ cell phones.  We had a question from a reader about the legality of creditors using cell phones in light of the federal Do Not Call Registry. Specifically, if you place your cell phone on the Registry, are creditors prohibited from calling you? The [...]

Texting to Collect?

We work with both debtors and creditors, which makes the issue of texting to collect on past-due debts very interesting. A South African study showed that using cellphone SMS messaging in debt collection has driven response rates as much as 200% higher than what was achieved by letters and even summonses. From the debtor’s perspective, a text [...]

Much-Needed Debt Settlement Regulation

We’ve written a great deal about the abuses and excesses of debt settlement operations lately. Last month federal legislation was proposed to tighten the screws on unsavory practices in this industry.  It pointed out that while costs vary, ”a company might charge up to 20 percent of the total debt. Fees are usually demanded upfront, even [...]

Good-bye Forever: The Permanent Injunction

We wrote about the automatic stay (immediate debtor relief)  in an earlier post. When the debtor has fulfilled his or her post-petition obligations, the bankruptcy case is closed and a discharge order is issued, pursuant to 11 U.S.C. §524, discharging (wiping out) eligible debts as of the date of the bankruptcy filing. When the bankruptcy [...]

Buying Time to Re-launch

We see it every month: homeowners struggle to pay their mortgages and feed their families but fall behind and eventually are served with a foreclosure notice. If they’ve been making partial payments instead of saving money to re-launch their lives in a rental property, bankruptcy protection might be the only thing between them and a [...]

How Debt Settlement Works

The nonprofit Consumer Credit Counseling Service of Orange County produced an excellent video on how debt settlement works — usually against you. We’ve written on this topic several times on our blog as well. If you decide to hire someone to help you settle, consolidate or otherwise manage your debts, then be very wary of [...]

I’ll Just Ignore the Certified Letters

Some people think they can tie their creditors’ hands by ignoring requests for payment or by contesting their debts with a credit bureau. They also call our offices for help cleaning up their credit reports, which is not a service we offer. If you wish to dispute an entry to your credit report, we suggest you use [...]

Creditor Protection Without Bankruptcy

With so many people unwinding unprofitable businesses and adjusting their lifestyles after financial hardship, many are confused about assets a creditor can seize and if bankruptcy is the only way to protect themselves from the proverbial wolves at the door. While we offer general information here, it is not comprehensive and not intended as legal [...]

Can a Creditor Take My 401k?

Although creditors have been known to claim that they can liquidate everything including the clothes on your back to settle your debts, each state provides guidance on what assets are safe from creditors. These are termed “exempt property.” So what about life insurance and retirement plans? Are they at risk if a creditor takes you [...]

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