We’ve received electronic copies of over 6,000 pages worth of documents. We are still in the process of reviewing the thousands of pages of financial and other related documentation that the trustee’s attorneys provided to us this past month to see what, if any, recovery may be available outside of the bankruptcy. We are still working with the trustee to try and either sell or allow clients to take title to the many properties within the bankruptcy estate. The trustee is dictating the schedule of which properties are addressed at which time, and we are in contact with those clients who are on the trustee’s current list. At the end of this process, as the estate winds up, we’ll know what, if any, recovery within the bankruptcy estate is available to our clients that had unsecured liens. As always, feel free to contact our office with any questions or concerns.
Why Do I Need an Attorney to File Bankruptcy?
The short answer: To avoid fraud charges and to prevent the bankruptcy trustee from taking assets which may be exempt.
Most people file bankruptcy because they can no longer pay their creditors. When you file a Chapter 7 bankruptcy you are asking for the federal government to stop all your creditors from collecting, and appoint a trustee who will collect for them up to the limits allowed under bankruptcy laws. The appointed trustee also has the job of detecting fraud, by finding people who are making misrepresentations as part of the bankruptcy process.
A good bankruptcy attorney can prepare the bankruptcy filings so that nothing is omitted. The trustees do not just look for statements that are not correct on the filings, but also statements that are missing. Bankruptcy filings require you to list all of your assets, and require you to sign under oath that you have listed all of your assets. You will then have a hearing before the trustee where you will take an oath and state under oath whether you have listed all of your assets. If you have omitted items, even inadvertently, there is a risk that the trustee will look further for fraud in your case. If a trustee believes there is fraud, then they will file a motion to prevent you from having your debts discharged or forgiven.
Plein Update (Jan. Email Blast)
After numerous discovery requests and subpoenas we’ve finally received the discovery in the Plein matter. We’ve received electronic copies of over 6,000 pages worth of documents. We are in the process of reviewing this documentation to see what, if any, recovery may be available outside of the bankruptcy. Additionally, originally the trustee intended to wrap up the bankruptcy by this past Dec., but he has extended the real estate listings through at least March.
“Should I Stay or Should I Go Now?”
2012 IS THE YEAR TO DECIDE WHETHER TO SHORT SELL, WALK AWAY OR STAY
Since real estate values began dropping in 2006, many homeowners have been trying to hold on to their homes hoping that the market would turn around or that they may be able to modify their existing mortgages pursuant to one of the various modification plans for which few, if any, people qualify. Many people already have reached the decision that they need to get out from under their underwater houses, and have either walked away and let the property go to Trustee’s Sale or have sold their property in a short sale. If you have been on the fence whether to unload your underwater home, now is the time to get off the fence and get on with your future. 2012 is the last year for a very important tax break for those people that are walking away from mortgage debt.
The Working Man’s Bailout: Chapter Seven Bankruptcy
The Carroll Law Firm is not “a Bankruptcy Law Firm”, and it never was our intention or expectation that we would be filing as many Bankruptcy Petitions on behalf of so many individuals, families and businesses. In fact, in 2007 when the Arizona office was first opened, if you needed representation in a Bankruptcy Proceeding, we would have referred you to another lawyer. Needless to say, as our Arizona office started to grow, we received more and more calls and consultations where it became obvious that for many of our clients a Bankruptcy filing made a lot of sense. So, we purchased the latest software, expanded the firm, and offered to represent people who needed to file Bankruptcy Proceedings.
Although most people have been able to survive the recession and still have their jobs and are able to pay their bills, many of their neighbors are not so fortunate. Their homes are underwater, they can no longer keep up with the minimum payments on their credit cards, which are now “tapped out,” and their income is shrinking. For years, most Americans lived “within their means” and many more lived beyond them. Based on past performance of real estate, there was a realistic expectation that they would continue to build equity in their homes. So what difference did it make if you ran up $10,000 in credit card debt if your home appreciated $20,000 last year. And when you reached your credit card limit you merely took an equity line against your home to pay off your credit card, and then started the “cycle” of debt building all over again. But then came the recession, and the cash cow that was our homes no longer had any equity, and when the borrowers reached their credit card limits they “hit the wall.” If they happened to be late on their credit card payments their minimum payments increased dramatically as the interest on the card adjusted to the “default rate”, which often was as much as 30%. They could no longer keep up with huge car payments and many had their vehicles repossessed resulting in thousands of dollars in deficiencies. Ultimately, their creditors levy their bank accounts sweeping away their small remaining savings balances and they find their wages are being garnished. What was once the American Dream has now become their worst nightmare, and they feel they are unable to control their lives.
