The Trustee in the Plein Matter is still in the process of finalizing liquidation of assets and processing of claims on behalf of the Bankruptcy Estate. Part of the wrap up of the Estate was the filing of Adversary Proceedings (i.e., Complaints) against any parties that received checks from Plein within the two years immediately preceding the filing of his Bankruptcy Petitions on behalf of himself, his late wife, and Plein Enterprises. The Trustee has previously determined that, at the time of filing, and for a period prior to his filing, Plein was not running a business, but rather a “Ponzi Scheme”, wherein he was taking money from new investors and paying some of those funds to investors and keeping the rest.
The Difference Between the Discharge and Closing of a Bankruptcy Case
Toward the end of bankruptcy are two separate events: one is receiving a discharge, and the second is the closing of the case. In almost every case the discharge is granted and an order is sent by the courts about 110 days after the filing of the bankruptcy. Once the discharge is entered the automatic bankruptcy stay ends, and creditors are allowed to foreclose if they still have a valid lien. In most case the creditors with valid liens wait for the case to be closed or pay for a motion for relief from the automatic bankruptcy stay so that they have a court order stating that they can foreclose.
Receiving the discharge does not mean that the case is closed, as the trustee will still need to determine what assets if any need to be collected, and distributed to creditors. This process can take a few months or over a year.
The trustees operate under a set of guidelines directing them to make sure a case is fully administered, with all assets collected and distributed within 2 years from the filing date. Trustees want to get things handled as fast as possible, but they have a lot of cases, and may take time to get to your case. If the trustee determines that there are no assets the case will close a lot faster than if there are assets.
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.
Can I get rid of my second mortgage in bankruptcy?
During this down economy, the real estate values have declined drastically. This has caused many to find themselves in an upside- down house. This means that a home’s value is less than the mortgage owed. Unfortunately, this is causing some to walk away from their home without looking for possible solutions to their financial situation. We at The Carroll Law Firm believe that we are the perfect lawyers to help you explore all of your options.
We can help you examine both Chapter 7 bankruptcy which can give you a fresh start and Chapter 13 bankruptcy where you can establish a repayment plan for less than you owe. With Chapter 13 bankruptcy, it is possible to cancel a second mortgage completely. With our firm’s assistance, we may be able to help you obtain loan modification for second mortgages or help in negotiating interest rates.
The Carroll Law Firm understands the fear of losing your home or other property. We know that this can be both scary and stressful. That is why we want to help you to move forward by providing you with our experience, various options, and our support for your family. We recognize that every situation is different, and our goal is to help you make the best decisions for you and your family. Call us now for a free 30 minute consultation.