Posts tagged ‘bankruptcy’

January 2, 2013

Kenneth Plein Arrested

Kenneth Plein of Tri-Star Realty has been arrested and charged with five counts of theft, thirteen counts of sale of unregistered securities, as well as fraud and sale of securities by an unregistered agent. Mr. Plein was indicted on November 8, 2012, and a warrant was issued for his arrest on December 13, 2012. His pre-trial conference is currently scheduled for February 5, 2013.

A picture of his mugshot can be located here, and you may follow his criminal case developments here by searching for his name. Our firm represents several creditors who were victims of Mr. Plein’s alleged fraud schemes, and we know that many of our clients will be comforted to hear that Maricopa County has brought criminal charges against Mr. Plein.

October 10, 2012

Bankruptcy and Student Loans

With a new school year just beginning, students are starting back at schools and universities all over Arizona. Many people are looking into student loan options and figuring out how to finance their education. After graduation, many students can have substantial student loan debts in the thousands or hundreds of thousands of dollars, and cannot afford to make the monthly payments. When dealing with outstanding debt and student loan payments, you may consider filing bankruptcy. In most cases today, however, student loan debt is not dischargeable in bankruptcy.  A student loan debt is unsecured, meaning that there is nothing for the bank to take possession of and sell to reduce their losses. Student loan debt was not always this difficult to discharge. In the mid-1970s, student loan debt was treated the same as credit card and auto loans.

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June 29, 2012

Plein Update RE: Trustee’s Omnibus Objection to Secured Claims

The Bankruptcy Trustee is in the final stages of liquidating/abandoning the remaining assets in the matter and will be doing a final analysis of the remaining claims. The attorney for the Trustee will be filing a Notice advising all of the creditors (including all of our clients) that the Trustee will be asking for all remaining secured claims to be reclassified as unsecured. What this means is that those clients that have not been paid on their claims will all be grouped together in the unsecured class and will be paid a prorate distribution out of the remaining funds after the bankruptcy estate has been liquidated. For those clients that have been paid out of the sale of a specific property, there will be no further distribution as to the secured claim against the property that was sold. If you were not paid anything, or just a nominal amount to clear a lien, your claim will be part of the unsecured distribution.

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March 15, 2012

Plein Update (March Email Blast)

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.

August 23, 2011

Should I Max out my Credit Cards before Filing Bankruptcy?

We have heard of attorneys encouraging people to max out their credit cards before filing bankruptcy.  Our attorneys strongly disagree with this advice for several reasons.  First it is dishonest.  Some people would say that  filing bankruptcy is dishonest in itself, so why not get as much out of it as you can.  Filing bankruptcy is not dishonest.  Our attorneys help clients who have come to the realization that paying all of their creditors is either not possible, or puts such a burden on them and their family that it is necessary to file bankruptcy to obtain peace in their home.  This action is not dishonest, it is honestly evaluating options to get out of a bad situation, and bankruptcy is one of those options.

What is dishonest is making a promise to repay money when you do not intend to repay it.  We advise clients to first decide which option they think is best to get out of their current debt situation.  If they plan to file bankruptcy, then they need to stop borrowing money, unless there is a plan and an intention to repay the debt even after bankruptcy.  One example is borrowing money to buy a car, when you intend to keep the car and pay the debt after a bankruptcy.  When someone borrows money with a promise to pay it back, but at the time they borrow it they have no intention of paying it back, this action is fraud.  Our attorneys do not advise our clients to commit fraud, or assist them in doing so.

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