Bankruptcy Chapters

Massachusetts Bankruptcy Court hearings are generally open to the public, Boston bankruptcy lawyers,debtors, creditors and occasionally the media. Transcripts of the proceedings are generally available as well. Some content is generally redacted, or excluded, such as “social security numbers, financial account numbers and minors’ names and birth dates.” In a May 2, 2011 decision by Bankruptcy Judge Henry J. Boroff, the Court was asked to look at the rules for allowing a portion of a public hearing to be redacted from the transcript of the bankruptcy court record.

In a Chapter 7 case that would not normally get this level of judicial attention, Verizon violated the rules of the Bankruptcy Court Automatic Stay. That is, after someone files for Chapter 7 bankruptcy protection, a creditor, such as Verizon, cannot continue to attempt to collect a debt from the debtor. All lawsuits are “stayed.” Creditors can file appropriate proceedings in the Bankruptcy Court, requesting a release from the automatic stay. This happens frequently in foreclosure cases, and sometimes in Massachusetts personal injury cases where insurance is involved.

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Tags: Bankruptcy Court, Massachusetts Bankruptcy, Massachusetts Bankruptcy Court, Transcript

There is an old saying, “A drowning man will grab even the edge of a sword.” For a homeowner drowning in debt, any assistance may seem beneficial. Unfortunately, there are scam artists that use a desperate situation to make a few quick bucks.

Case in point is an Austin, Texas, man who recently pled guilty to operating a foreclosure-rescue scam. Frederic Alan Gladle, 53, admitted that for four years he defrauded homeowners that netted him more than $1.6 million in fees. According to court documents, Gladle used different aliases and the stolen the identity of at least one person to set up a mobile phone number.

Gladle, who played linebacker on the University of Southern California’s 1978 national football championship team and is married to the 1984 Playboy Playmate of the Year, charged distressed homeowners fees in exchange for fraudulently postponing foreclosure sales. He faces two to seven years in prison.

In a statement released by the U.S. Department of Justice, “Gladle admitted that he recruited homeowners whose properties were in danger of imminent foreclosure and falsely promised to delay the foreclosures for up to six months, in exchange for a fee of approximately $750 per month. G

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Tags: Homeowner, Homeowner Fraud

When you are considering a trip, usually, you make substantial preparations in anticipation of   that trip.  You make travel arrangements; you make sure you have a place to stay; you make reservations for any activities in which you wish to participate.  You will often make significant plans and preparations for any big event.  Bankruptcy is no different.  It is a significant life event that demands some thought and preparation before you embark on it.

In talking with potential bankruptcy clients, it seems that a lot of them wait until the last minute before contacting a bankruptcy lawyer to find out how bankruptcy may help them.  While visiting a bankruptcy lawyer most likely does not rank high on most peoples bucket list, if you are struggling financially, it most likely makes sense to determine if and how bankruptcy can help you sooner rather than later.

So, how can preparing for bankruptcy help?  First, you will need to have the fees for the lawyer and for the court available.  For now, for a chapter 7 filing, just the filing fee is $306.00.  Additionally, before you file, you must complete a consumer credit counseling session and get the certification that must be filed with the court.  If you fail to plan for your bankruptcy filing by finding out what you need ahead of time, when your car is on the verge of getting repod, you may not have the time and/or money to retain a bankruptcy lawyer.

Second, you can carefully go over your income and expenses and see where the trouble lies.  Certainly a bankruptcy lawyer can help you identify the problem (with appropriate information) but you also need to know how you got into this financial mess.  Some problems are easy to identifytemporary loss of income; extraordinary medical bills; overspending for a bit, etc.  Bankruptcy can assist in overcoming those past problems but you need to be aware of the problem so that you can avoid it in the future.  Bankruptcy is designed to be a fresh start.  You can greatly assist in obtaining that fresh start by breaking or modifying some of the habits that perhaps got you here in the first place.

Third, make sure you know who you owe and how much.  Find out if there is any collateral associated with the debts and gather up loan documents.  Your lawyer will need this but, more importantly, you need to know your own financial picture.  Credit reports are freely available and can be a big help.  Also, if lawsuits or foreclosures have been filed against you, make sure you have that paperworkall of it!  It is important!

Finally, change your mindset.  In dealing with individuals facing financial problems, it is often much more difficult instead of dealing with distressed businesses.  That is because a business looks at assets and liabilities and can make a rational decision as to whether keeping an asset is worth the corresponding liability.  Understandably, people are attached to their things.  But, after all, they are just things and you have to consider carefully whether retaining a thing is worth the potential stress and headache.  As an example, if you suffered a decrease in income and you have two relatively late model cars.  No one wants to give up one or two cars but sometimes it is better to surrender a vehicle or two in order to keep your house (if that is important to you).  There will be some emotional attachment to some things but it is imperative that you do this.  Determining what is important to you is important for your bankruptcy lawyer in setting achievable goals for your bankruptcy filing.

Finally, do some research.  There is a lot of information about bankruptcy that is freely available.  However, you should exercise extreme caution in considering the information.  Not that the information is inaccurate (some info may be outdated or simply inapplicable) but it takes an experienced profession to know what is appropriate and what is not.  But, by familiarizing yourself with some basic bankruptcy information, you will be in a better position to appreciate and assist your bankruptcy lawyer in setting realistic and achievable goals.

After all, the real goal of a bankruptcy filing is a fresh start.

The United States Bankruptcy Code is comprised of several different chapters. Some chapters deal with administrative matters. Other chapters provide specific guidance on how a case must proceed. Chapter 13, a repayment bankruptcy, is reserved for debtors who are “natural persons,” as opposed to businesses or corporations. Businesses and individuals can file Chapter 7, a liquidation bankruptcy, but only individuals can receive a Chapter 7 discharge.  When businesses need to restructure, they turn to Chapter 11, commonly called the “business bankruptcy.”

Recently the parent company of American Airlines filed for Chapter 11 bankruptcy protection. Chapter 11 is a business reorganization, not a liquidation, and has been used by several other airline companies (including Delta and United) to rewrite union contracts and reduce debt. American Airlines will continue to operate during the bankruptcy and travelers will see very little change – at least during the early phases of the bankruptcy.

American Airlines has declared bankruptcy because it needs protection from creditors to continue to operate while it reorganizes its finances. According

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Massachusetts bankruptcy filings fell in October 2011, which was the fourth straight month that we saw a decline in bankruptcies throughout the country. It is not clear if this was because folks have better control of their credit or because the next big wave, with respect to foreclosures, has yet to hit. It is also possible that lenders are not lending as much so folks are not credit restricted. The American Bankruptcy Institute reports a 19.6% decrease in personal bankruptcy filings in October 2011, from the October 2010 filings. Further, total consumer debt fell in the past two years. We have reported the decrease in Massachusetts bankruptcies in numerous blog posts. The news continues to be good!

And October had 2% fewer personal bankruptcies than September this year. For the year, the Administrative Office of the U.S. Bankruptcy Courts reports that the number of business and personal bankruptcies are down approximately 8% over the past year. By the end of the third quarter, September 30, 2011, the number of personal bankruptcies was 1,417,326.

Bankruptcy filings for 2011 are as follows: 353,082 total in the first quarter, with 252,338, or 71% as Chapter 7 no asset personal bankruptcies; 367,487 total in the second quarter with 265,759 or 72.32% as Chapter 7 cases.

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