I Am Your Bankruptcy Lawyer … What Do I Do?
by Peter Orville, Binghamton Bankruptcy Lawyer

Consumer bankruptcy lawyers are among the most unappreciated and underpaid people in the entire bankruptcy system.

On a time spent basis, we rarely get paid our full hourly rate for the time we put into each case.

On a benefit to our client basis, we usually get only a tiny percentage of the financial benefit received.

On a service to the entire bankruptcy court system, we generally don’t even get a “thank you”.  Instead our work is often questioned, our fees are often slashed, and we are often blamed when our clients don’t follow through on their commitments.

What do I do for you, my client?

I hire a staff that is both sensitive to your needs and thorough in their review of your paperwork

Along with my staff, I help you to organize your information so together we can understand and solve the entire puzzle that is your financial situation.

I listen carefully to your questions and concerns.

I explain all of your options including bankruptcy and non bankruptcy possibilities.  I explain Chapter 7 and Chapter 13, and if you are a farmer, Chapter 12.

I help you to set up and live by a budget that allows you and your family to live within your means.

I double check all of your paperwork to make sure it accurately reflects and discloses your complete financial picture.

I file your bankruptcy petition, talk to your creditors for you, “hold your hand” at the meeting of creditors, and stand up for you in court whenever needed.

In fact, I stand up for you against whatever is coming at you from your creditors and bankruptcy trustees.

What do I do for the bankruptcy system?

I am the gatekeeper for the entire bankruptcy system.

Although the “tall building lawyers” who work on Chapter 11 cases get most of the attention at seminars, and are allowed by the bankruptcy judges to receive huge legal fees, it is I, along with my fellow consumer bankruptcy attorneys, that file nearly 95 percent of all of the bankruptcy cases.

I am the one who makes my clients’ case presentable and understandable by the trustee, the judge, and the creditors.

I am the one who organizes and sends the documentation to the trustee.

And I am the one who has to answer to the US Trustee’s office if my client’s situation doesn’t fit into the little boxes they understand.

And I am the one who forces the Bankruptcy Court to interpret the bankruptcy law.

And I am the one who fights against the restrictions that Congress tried to imposeto make it harder for financially struggling individuals and families.

And I am the one who works to get abusive creditors off their backs and truly achieve a fresh start.

And that is what filing for bankruptcy is all about.

1 Comment
 
 
Zombie Debt is debt so old that it is unenforceable as a matter of law.  But check out this post on how debt purchasers can bring ZOMBIE debt back to life:  http://www.bankruptcylawnetwork.com/how-debt-buyers-turn-zombie-debt-into-valid-claims/
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I received a phone call yesterday from a former client.  Her life partner has been diagnosed with early onset dementia.  She (the partner) is drawing down a qualified retirement account to service her credit card debt.  Few things distress me more than to hear something like this!

Retirement funds should never be used to service credit card debt.  Perhaps, under controlled conditions, they might be used to *retire* such debt but never to *service* such debt.

If you find yourself in this situation, please phone us immediately.

Happy Summer!
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SSD appeals often hinge on how one frames the questions to medical providers.  Don't go it alone: let us frame those questions for you.
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Retirement Funds 04/06/2011
 
Unless you plan to pay off your house in full, you should always consult a bankruptcy attorney before you start dipping into qualified retirement funds (IRA, 401(k), 403(b), etc.) in an attempt to save your house.  By all means, this applies to using such funds to pay off credit cards or medical bills.
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Many people are afraid of consulting a bankruptcy attorney and don't know whether they actually need a bankruptcy or not.  Moreover, many people who visit our Firm do not need a bankruptcy and we are not afraid to let them know that.  So, if you even suspect a bankruptcy might be of assistance to you, please make an appointment to see us at your earliest possible convenience.  The first consultation is free and you have njothign
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People ought to be very careful before they start withdrawing funds from their qualified retirement accounts to pay debts, including mortgage loans.  Aside from the negative tax consequences, there are few situations where such withdrawals are good decisions.  Please consult with a professional before doing so.
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Departing Friend 05/09/2010
 
It is with sadness that we announce the departure of Attorney Joe Corey.  Joe is, at least temporarily, pursuing other avenues as an Attorney.  He had been interning with our Firm.  We wish Joe the very best.
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This is perhaps the most asked question in my practice.  I am sorry to say that the answer is a definite "maybe."


No type of bankruptcy will currently allow someone to adjust the terms and conditions of a mortgage loan on their primary residence, as long as the house is used solely for that primary residence.  However, Chapter 13 bankruptcy will stop a Sheriff's Sale and allow you to make up your arrears, typically over 36 months.


Moreover, Chapter 13 allows someone to strip off mortgages that are wholly unsecured by value of the property.  So, for instance, if you own a house that is worth $90,000, your first mortgage loan balance is $100,000 and your second mortgage loan or HELOC balance is $20,000, the successful completion of a Chapter 13 Plan can get rid of the second loan altogether and leave you only with the first loan (and, of course, with possession of your house).

As always, the best thing to do is make an appointment to see an attorney.

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Why Chapter 13? 04/11/2010
 
Clients often express that they don't want to be in a Chapter 13 because they don't want the Court involved in their lives for 3 to 5 years.  While understandable, they often also don't know that, contrary to Chapter 7, the following relief is available in Chapter 13:


* the "stripping off" of a second or subsequent lien on real estate:  if your home is worth less than or equal to the balance of your first mortgage loan, you may be able to strip off the second and subsequent mortgage liens.  What this means, in plain English, is that, at the successful completion of your Chapter 13 Plan, you would never have to pay the second or subsequent loans again and you get to keep your house (this assumes you can make payments on your first loan).


* the lowering of interest rates on secured debt:  no matter when you acquired your property, such as a car, your interest rate might be lowered to a reasonable rate, currently around 5% - 6%.


* the ability to make up arrears on secured debt, taking up to 36 months or more to do so.


* while student loans are generally non-dischargeable, you still get 3-5 years during which you only need make your Chapter 13 payment and do not have to make independent payments to your student loan company.


* you can get up to 5 years to pay a taxing agency, such as the IRS, without incurring interest.


* in most cases, you can keep property you may have had to give up in a Chapter 7.


As you can see, Chapter 13 sometimes is better for the Debtor than Chapter 7.  However, only you and your attorney can make the proper determination over which Chapter is right for you (please note that Chapters 11 and 12, also available to consumer debtors, are beyond the scope of this Post).
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