More on Debt Settlement ... Article from another blog

On the Bankruptcy Law Network blog, Adrian Lapas, Esq. posted this article - Debt Settlement–Yet Again? Many bankruptcy attorneys address the issue of "debt settlement." There may be some very limited use for such companies but they are not the remedy for most cases, at least in my opinion. This is a great and detailed article comparing bankruptcy to debt settlement. If you thought about trying "debt settlement" over bankruptcy, check this article out and do some more research. Also, do not confuse "debt settlement" with "debt management." They are two totally different  concepts.

 If you want assistance, legal representation, or just want to know more about Mark Medvesky or our firm of Wells, Hoffman, Holloway & Medvesky LLP, check out our website at www.whhmlaw.com.

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Bankruptcy - Show stoppers ... things that must be done for a successful bankruptcy

Image courtesy of Stuart Miles
at FreeDigitalPhotos.net

While there are some issues and some information that can be dealt with as a case progresses, there are several things that can prevent a debtor from filing for bankruptcy or prevent the debtor's discharge. Below are some of actions a person must take in order to start their bankruptcy.

1. Paystubs - a debtor must provide 6 months of paystubs to his or her attorney. They will be filed with the bankruptcy case. The paystubs are also needed to confirm a person's eligibility to file bankruptcy under Chapter 7.

2. Tax Returns - Debtors must have filed their federal taxes before they will be granted a discharge in bankruptcy. In a chapter 7 bankruptcy, the debtor must file their most recent tax return with the trustee at least seven days prior to the 341 creditors meeting. A case can be dismissed without it.

3. Credit counseling - Before someone can file for bankruptcy, he or she must complete a credit counseling course. It can be done on-line, over the telephone, or in person. Most people complete it through internet courses. Without a certificate for completing the course, the case will be dismissed.

4. Official Social Security Card - One of the first things a trustee checks when someone enters the room to start the creditors meeting is their social security card. It has to be an original card issued by the social security office. If a debtor does not have it at the meeting, the meeting will immediately be rescheduled. The meeting will not commence until the debtor can produce the card. Debtors must also show another photo ID as well.

5. Personal Financial Management (PFM) counseling - After filing the case, the debtor must complete a PFM counseling. It also can be done on-line, over the telephone, or in person. Most people complete it through internet courses. Without a certificate for completing the course, the debtor will be denied a discharge and the case will be dismissed.

The trustee will require other financial documents and statements. Sometimes those statements can be difficult to produce and other documents can be used to provide the same information. But the documents listed above must be produce in order to successfully complete a bankruptcy.

 If you want assistance, legal representation, or just want to know more about Mark Medvesky or our firm of Wells, Hoffman, Holloway & Medvesky LLP, check out our website at www.whhmlaw.com.

#bankruptcy #Chapter7 #Chapter13 #MontgomeryCounty #lawfirm #BucksCounty #Pennsylvania

Bankruptcy - preparing for the creditors meeting

Image courtesy of Stuart Miles
at FreeDigitalPhotos.net

The work doesn't stop once the case is filed. After a case is filed, a trustee is appointed and a creditors meeting is scheduled. During the creditors meeting, the trustee takes the debtor's testimony under oath and confirms the validity of the information supplied in the case documents filed by the debtor's attorney.

The trustee requires a collection of documents prior to the creditors meeting. The trustee needs to see the debtor's federal tax returns, bank statements, mortgage and real estate documents, asset valuations and appraisals, updated paystubs, and other documents depending on the facts of the case. These documents must be submitted to the trustee at least seven days prior to the meeting. 

If the documents are not submitted in time, the debtor's case can be dismissed. While most trustees in the district I practice will probably not try to dismiss a case with a late filing, they may cancel your meeting and reschedule it for another date. This is an incredible waste of time especially when the case is continued while you are sitting at the table ready to start the meeting.

So, it is important for debtors to cooperate with their attorneys. This is not the time to become complacent. Failing to provide updated documents in a timely manner can cause your case to be continued or dismissed.

 If you want assistance, legal representation, or just want to know more about Mark Medvesky or our firm of Wells, Hoffman, Holloway & Medvesky LLP, check out our website at www.whhmlaw.com.

#bankruptcy #Chapter7 #Chapter13 #MontgomeryCounty #lawfirm #BucksCounty #Pennsylvania

Bankruptcy - How honest should I be with my attorney?

Image courtesy of Stuart Miles at
FreeDigitalPhotos.net

Totally honest is the correct answer. The bankruptcy law has some pretty complex requirements. It takes some thoughtful planning in many cases. In the best situation an unstated fact can result in additional scrutiny by the trustee and court into a case. In the worst case, it can end with criminal charges.

One day I was sitting in the meeting room waiting for creditors meetings listening to someone else's meeting while I was waiting for my case to be called. The debtor was an older man who filed for chapter 7 protection. The trustee found rental real estate titled to the debtor in the neighboring county. It was not listed in the debtor's schedules. The property that could not be protected by exemptions. At first the debtor tried to deny it and then tried to explain it away. The trustee stayed on it.
 
The meeting, which usually lasts about 20 minutes, when on almost an hour. At the end of the hour, the case was continued in order for the debtor and his attorney to provide additional information to the trustee. While I do not know what the final outcome was for that case, I am sure of a couple things. First it took a significantly more amount of time than one would expect for a straightforward chapter 7 case. Second, the property the trustee found became subject to the trustee's power to sell it and pay creditors. Finally, I believe the debtor was at risk of criminal charges. I'm not sure how one convincingly explains how one holds commercial rental real estate and forgets that he is collecting rent for it when he files for bankruptcy.
 
If the attorney knew of the assets, he may have been able to develop a better solution for the debtor. Maybe sell some of the property and settle debts... maybe file for protection under chapter 11 instead ... maybe not file at all. But a debtor will never receive that advice if he or she fails to tell his or her attorney everything.

If you want assistance, legal representation, or just want to know more about Mark Medvesky or our firm of Wells, Hoffman, Holloway & Medvesky LLP, check out our website at www.whhmlaw.com.

#bankruptcy #Chapter7 #Chapter13 #MontgomeryCounty #lawfirm #BucksCounty #Pennsylvania