Thanks to all my clients and friends sending emails and calling about mortgage companies filing for bankruptcy. Many of my clients are taking joy from this news. Is it really surprising that what goes around comes around? When clients can't make their monthly payments, they often don't have any options ... many are having to let their homes go back to the creditors. With so many houses on the market, those homes are not selling. Many of my clients have tried everything before coming to see an attorney to talk about bankruptcy. This is not any one's first choice ... it is most of their only option to get a fresh start.
So, now mortgage companies as reaping the the rewards of their lending policies and loan packages. I have real estate agents and their clients calling and begging me to help them ... as the mortgage broker told them that they did not need to worry about the interest rate increases because they would be able to re-finance before the two years. Now, money is not as readily available and those loans are not to be found. I hate those 2 year fixed rate with the 6 month ARM rates. I believe that the mortgage brokers thought that they were helping the borrowers, because many of them used the same loan package on their own homes. But now ... everyone is hurting. The holders of the notes are, well, some are filing for bankruptcy.
I expect more news about lenders filing in the next year. With foreclosure rates staying at record highs ... the only ones I see winning are my counterparts doing the foreclosures. ... And now I wonder if they will be paid all that they are owed as the mortgage companies file for protection under bankruptcy ... even those law firms may take a hit ... and not receive all of their fees ... it all depends on the bankruptcy cases of the lenders.
The reality that when everyone is losing their home to foreclosure we all lose something. Home ownership is a big American dream ... I have seen people do everything they can to save their home ... not just because it is a place to live but because part of home ownership is the dream that you have one part of this earth and it is yours. Don't give up hope ... many people will own a home again. Something will change ... time will tell.
I think that I need to get a real estate blog up ... I will see what this week holds and maybe I can start working on it.
Have a great weekend.
Susan
Sunday, August 19, 2007
Friday, August 17, 2007
Cash in Checking Accounts
Today, I was in bankruptcy court in Kansas City, Kansas, and the Judge made several interesting statements. He said that there is an ongoing problem with bank accounts. Kansas has no exemptions for cash or money in bank accounts. Before the internet was so common, it was hard to know it there were outstanding checks or not. I asked my clients to go to the bank and see if this check or that check had cleared. I also suggested that my client use money orders for a few weeks before filing. Then there were no mistakes. I tell everyone that Trustees want all of the money in the checking accounts on the day of filing. If clients just expect to turn the money over ... then there are no surprises. That is what I want my clients to have during this process .... no surprises ... well good ones are ok.
In Missouri, we have a wild card to use to protect cash, bank accounts, and tax refunds. However, it is limited. I still like the bank accounts to be as low as possible. I beg my clients to get the money out of the accounts before we file. That does not mean having the money in their hands, but rather to spend it on things that my clients need .. like lights, water, gas, and insurance.
Well, have a great weekend. I will get the part II up soon. We have had a very busy week with too many people in the hospital and a death in the family. It will get better ... take care.
Susan
In Missouri, we have a wild card to use to protect cash, bank accounts, and tax refunds. However, it is limited. I still like the bank accounts to be as low as possible. I beg my clients to get the money out of the accounts before we file. That does not mean having the money in their hands, but rather to spend it on things that my clients need .. like lights, water, gas, and insurance.
Well, have a great weekend. I will get the part II up soon. We have had a very busy week with too many people in the hospital and a death in the family. It will get better ... take care.
Susan
Wednesday, August 15, 2007
Thanks and ID Problems
I want to start this post with a big thank you to Debbie. One of my best friends was in the hosptial this weekend with heart problems. My son and I were at Gates & Sons eating a very late lunch after going to the hosptial. My check book fell to the ground and a very nice lady, Debbie found it. She tried to get the staff at Gates to make an announcement but that did not work out. She call my number, and we made arrangments to meet so that she could return it to me. Thanks.
I was so lucky. Several of my clients have not been so lucky. When I was an attorney for legal aid, we had a client that lost his ID and he was not as lucky. He was arrested often ... on traffic charges. Then, he would tell the Judge that it was not him and he wanted to be finger printed. Then, after the finger prints showed that it was not him, the court would release him. He was arrested so often that he lost his job. How easy that could have been any of us.
I have other clients that have loans in their names that they did not make. It is so easy to get credit online and over the phone without showing any ID. One of my family members had her purse stolen. Then next thing she knew, checks were being cashed all over the city. I saw one of the checks that Walmart cashed and it was not even signed. It took a lot of work to clear things up ... I am not sure that it is all cleared up even today ... years later.
A few weeks ago, I was preparing a case for filing and my clients' credit report kept showing a mortgage, when my client did not have a mortgage. I am still waiting to file that bankruptcy case until we have the credit report in hand. Under the new law, you must list creditors or you risk not having that debt discharged. Better safe than sorry.
Tom, the other attorney in my office, went to classes this spring on Fair Credit Reporting Act. We have been getting calls from our old clients about creditors sueing them after the debt was discharged. We are working on several cases with a law firm on the other side of the state. I will tell you their name in a later post. What is happening is that old debts are being sold for pennies on the dollar and the new buyer is doing all they can to collect. I don't know why the account is not marked bankruptcy.
If you receive a summons to appear in court on a debt that was listed on your bankruptcy case and that debt was discharged then see an attorney. If you are my client please bring the papers in ASAP so that the other attorney does not take a judgment against you. It is more work to set aside the judgment, than it is to file "Suggestions of Bankruptcy" and get the case dismissed. One some of these cases, we have been sending out discovery requests and then the case is dismissed.
Well, I need to get off my little soap box. I was lucky and I know it. I am thankful that Debbie took the time to pick up my check book and call me. Thank you very much Debbie.
I was so lucky. Several of my clients have not been so lucky. When I was an attorney for legal aid, we had a client that lost his ID and he was not as lucky. He was arrested often ... on traffic charges. Then, he would tell the Judge that it was not him and he wanted to be finger printed. Then, after the finger prints showed that it was not him, the court would release him. He was arrested so often that he lost his job. How easy that could have been any of us.
I have other clients that have loans in their names that they did not make. It is so easy to get credit online and over the phone without showing any ID. One of my family members had her purse stolen. Then next thing she knew, checks were being cashed all over the city. I saw one of the checks that Walmart cashed and it was not even signed. It took a lot of work to clear things up ... I am not sure that it is all cleared up even today ... years later.
A few weeks ago, I was preparing a case for filing and my clients' credit report kept showing a mortgage, when my client did not have a mortgage. I am still waiting to file that bankruptcy case until we have the credit report in hand. Under the new law, you must list creditors or you risk not having that debt discharged. Better safe than sorry.
Tom, the other attorney in my office, went to classes this spring on Fair Credit Reporting Act. We have been getting calls from our old clients about creditors sueing them after the debt was discharged. We are working on several cases with a law firm on the other side of the state. I will tell you their name in a later post. What is happening is that old debts are being sold for pennies on the dollar and the new buyer is doing all they can to collect. I don't know why the account is not marked bankruptcy.
If you receive a summons to appear in court on a debt that was listed on your bankruptcy case and that debt was discharged then see an attorney. If you are my client please bring the papers in ASAP so that the other attorney does not take a judgment against you. It is more work to set aside the judgment, than it is to file "Suggestions of Bankruptcy" and get the case dismissed. One some of these cases, we have been sending out discovery requests and then the case is dismissed.
Well, I need to get off my little soap box. I was lucky and I know it. I am thankful that Debbie took the time to pick up my check book and call me. Thank you very much Debbie.
Saturday, August 11, 2007
Announcments
Announcing the web pages: http://www.bratcherlaw.biz/ is up and running. I still am working on it but it is ok shape for everyone to look it over. Call us if you are considering bankruptcy in the Kansas City area. (816) 453-2240.
I am still trying to learn how to make all of this internet advertising work without spending all of my free time on it and/or all of my money.
Next, I will be at an auction for one of my probate cases on Sept 8, 2007. I will be giving everyone the web cite for the auction house. It is very exciting to get everything sold from this estate! I will be out of the office that afternoon to attend the sale just outside of Topeka, Kansas.
I am considering letting all the calls on Friday afternoons go to voice mail. We did this in the past to give us some time to get more work done. We also need some more training classes for new employees, and I think it is a good time to cross-train everyone in the office. We will be sending almost everyone out sometime in the next 2 months for outside training. Tom is going to mortgage classes in September. Tom and I are going to a class on probate and giving. I hope to send Jewel and Donna to classes at the courthouse to learn how to file cases on ECF. ECF is the paperless system that the federal courts us.
I expect home loans to become very harder to come by as Countrywide said that they are not buying any new loans. Oh, my gosh. Tom was telling me that the paper said that Countrywide is the largest lender, but I did not check it out yet! I know that we see Countrywide loans all the time. Many lenders are in trouble because they have loans going unpaid. Just look around at the new houses unsold. Times are still very bad out there.
Have a great weekend.
Susan
I am still trying to learn how to make all of this internet advertising work without spending all of my free time on it and/or all of my money.
Next, I will be at an auction for one of my probate cases on Sept 8, 2007. I will be giving everyone the web cite for the auction house. It is very exciting to get everything sold from this estate! I will be out of the office that afternoon to attend the sale just outside of Topeka, Kansas.
I am considering letting all the calls on Friday afternoons go to voice mail. We did this in the past to give us some time to get more work done. We also need some more training classes for new employees, and I think it is a good time to cross-train everyone in the office. We will be sending almost everyone out sometime in the next 2 months for outside training. Tom is going to mortgage classes in September. Tom and I are going to a class on probate and giving. I hope to send Jewel and Donna to classes at the courthouse to learn how to file cases on ECF. ECF is the paperless system that the federal courts us.
I expect home loans to become very harder to come by as Countrywide said that they are not buying any new loans. Oh, my gosh. Tom was telling me that the paper said that Countrywide is the largest lender, but I did not check it out yet! I know that we see Countrywide loans all the time. Many lenders are in trouble because they have loans going unpaid. Just look around at the new houses unsold. Times are still very bad out there.
Have a great weekend.
Susan
Friday, August 10, 2007
What to Look for in an Attorney
Hiring an attorney is difficult for several reasons:
1. You are under stress most of the time when you hire an attorney -- something has gone wrong and you want an attorney to "fix" it.
2. Good attorneys are busy. This is true of every other profession that I know. For example, we schedule my husband's doctor's appointment for route care 1 month before we want to see the doctor.
3. It is hard to tell if the attorney is a good match or not at just one meeting.
So what is a person to do?
Know your goals for the relationship. I try to keep my clients' eyes on their goals for the case. If they hire me for a bankruptcy then they have a reason to be in the case. For example: I am trying to get my clients to think about what they want at the end of the case: it could be to just stop the creditors and/or collectors from calling; or it could be to pay off a car. It helps everyone to know what you want ... if you don't know what you want then you are not likely to get it.
Communication styles matter. You and your attorney must be able to communicate. Don't let the attorney talk over your head. A good attorney will take you step by step through the process of the case. If you don't understand you could make a lot of mistakes. Ask questions! Now please don't call every 5 minutes with a new question ... nor am I suggesting that you ask everyone in the office the same question over and over just to see if you get a different answer. But you need to understand what is going on in your case. It is your life and you need to understand what is going on in your case.
1. You are under stress most of the time when you hire an attorney -- something has gone wrong and you want an attorney to "fix" it.
2. Good attorneys are busy. This is true of every other profession that I know. For example, we schedule my husband's doctor's appointment for route care 1 month before we want to see the doctor.
3. It is hard to tell if the attorney is a good match or not at just one meeting.
So what is a person to do?
Know your goals for the relationship. I try to keep my clients' eyes on their goals for the case. If they hire me for a bankruptcy then they have a reason to be in the case. For example: I am trying to get my clients to think about what they want at the end of the case: it could be to just stop the creditors and/or collectors from calling; or it could be to pay off a car. It helps everyone to know what you want ... if you don't know what you want then you are not likely to get it.
Communication styles matter. You and your attorney must be able to communicate. Don't let the attorney talk over your head. A good attorney will take you step by step through the process of the case. If you don't understand you could make a lot of mistakes. Ask questions! Now please don't call every 5 minutes with a new question ... nor am I suggesting that you ask everyone in the office the same question over and over just to see if you get a different answer. But you need to understand what is going on in your case. It is your life and you need to understand what is going on in your case.
Thursday, August 9, 2007
Stipulated Orders With Drop Dead Clauses
It has been a hard week in the office. I know that money is still tight out there for many people. And don't even get me started on the 6-month mortgage increases that are putting so many houses into foreclosure. How do I know that money is tight? Well, clients have been ringing the phone off the hook begging for just one more chance to save their home from foreclosure. We have been lucky and smart . . . but we have not been able to help everyone. I hate that so much! I got into bankruptcy to help people and I want it to work as much as the clients do ... some times I think that I want it more ... I hate to lose.
This is how it goes: clients are behind in their mortgage payments and on the steps of foreclosure ... so they see us and because they did not wait until the last second to see us they file a Chapter 13 bankruptcy to save their home. We work our behinds off typing up just enough the case to stop the foreclosure ... we make it look too easy I think some times ... because we do it all the time. We call, fax and mail a copy of the bankrutpcy notice to the creditor's attorney ... we have had to have our clients stand on the Courthouse steps and hand the creditor's attorney a copy. And we win for our clients a chance to save their home! Yea!
I tell everyone make your house payments ... you may not get another bite of the apple ... and keep a copy of the payment because you have to prove that you made the payments! So, life goes on and my clients run into a bit a rough spot. Then, the next thing you know I get a motion to lift the stay on the house. We send our clients a copy of the motion and a letter telling them to get on the phone or in the office with proofs of payments and let us know what they want to do. Nine times out of ten, my clients want to keep the house. So, if we can't prove that they are current ... we agree to a 6 month repayment plan for the missed payments due the middle of the month. We try our hardest to not agree to a Drop Dead Clause .... A Drop Dead Clause means if you brake it you lose ... you are dead in the water. But as the Judges are allowing the stays to be lifted if the agreement is not signed ... we are doing more Drop Dead Agreements. Additionally, the Judges are clear, for the most part, that Debtors do not get an endless number of chances. (I have had the Judge tell me that they were sorry that my client was losing their house but ... only so many chances. My Judge did not have to tell me that because I knew that he wanted my client to be able stop their home going into foreclosure... but at some point the creditor has to be able to move forward and sell the property. I have great Judges, who work hard to apply all of the laws fairly.)
Then, life goes on and my clients get behind in their house payments for the 3rd time. I get a letter or notice from the creditor saying that my clients are in default. Because of these drop dead agreements, our clients have 10 days to get current or prove that they are current or the creditor's attorney sends an order to the court lifting the stay. We have only 10 days to file an objection -- and then only if we can show that the order should not have been entered. Or, I have filed a motion to reconsider ... if the facts were good. Last week, we disagreed with the creditor's attorneys to the point that we are sueing the mortgage company and their attorneys. More on that later ... with my client's permission of course.
So, we when get the notices, we write our clients. We also try to call them. I have to get more email addresses because I think that I will have the staff start writting them. (Problems with being sure that no one else can read it ... more later.) Yesterday, I was about to give up on my client being able to keep the house. As I was leaving to go to court, I asked Tom to get out the Order and look at it to see if there was any hope for our client. Creditors often change law firms, and the new firm may not have read the order carefully to see if the clause was there or not. Well, thank goodness, my client's order was lacking the part requiring them to make the on-going payments or face the drop dead clause ... so our clients dodged the bullet.
For my clients: I hate signing Drop Dead Agreements but I will:
(1) if it is to save your home;
(2) and you tell me that you understand.
But then understand that my hands will likely be tied if you fail to live up to the terms of the agreement. You have agreed in advance to what would/should happen it you don't make the payments on time.
So much for my soap box tonight. Bankruptcy Part II will be posted next week.
Take care,
Susan
This is how it goes: clients are behind in their mortgage payments and on the steps of foreclosure ... so they see us and because they did not wait until the last second to see us they file a Chapter 13 bankruptcy to save their home. We work our behinds off typing up just enough the case to stop the foreclosure ... we make it look too easy I think some times ... because we do it all the time. We call, fax and mail a copy of the bankrutpcy notice to the creditor's attorney ... we have had to have our clients stand on the Courthouse steps and hand the creditor's attorney a copy. And we win for our clients a chance to save their home! Yea!
I tell everyone make your house payments ... you may not get another bite of the apple ... and keep a copy of the payment because you have to prove that you made the payments! So, life goes on and my clients run into a bit a rough spot. Then, the next thing you know I get a motion to lift the stay on the house. We send our clients a copy of the motion and a letter telling them to get on the phone or in the office with proofs of payments and let us know what they want to do. Nine times out of ten, my clients want to keep the house. So, if we can't prove that they are current ... we agree to a 6 month repayment plan for the missed payments due the middle of the month. We try our hardest to not agree to a Drop Dead Clause .... A Drop Dead Clause means if you brake it you lose ... you are dead in the water. But as the Judges are allowing the stays to be lifted if the agreement is not signed ... we are doing more Drop Dead Agreements. Additionally, the Judges are clear, for the most part, that Debtors do not get an endless number of chances. (I have had the Judge tell me that they were sorry that my client was losing their house but ... only so many chances. My Judge did not have to tell me that because I knew that he wanted my client to be able stop their home going into foreclosure... but at some point the creditor has to be able to move forward and sell the property. I have great Judges, who work hard to apply all of the laws fairly.)
Then, life goes on and my clients get behind in their house payments for the 3rd time. I get a letter or notice from the creditor saying that my clients are in default. Because of these drop dead agreements, our clients have 10 days to get current or prove that they are current or the creditor's attorney sends an order to the court lifting the stay. We have only 10 days to file an objection -- and then only if we can show that the order should not have been entered. Or, I have filed a motion to reconsider ... if the facts were good. Last week, we disagreed with the creditor's attorneys to the point that we are sueing the mortgage company and their attorneys. More on that later ... with my client's permission of course.
So, we when get the notices, we write our clients. We also try to call them. I have to get more email addresses because I think that I will have the staff start writting them. (Problems with being sure that no one else can read it ... more later.) Yesterday, I was about to give up on my client being able to keep the house. As I was leaving to go to court, I asked Tom to get out the Order and look at it to see if there was any hope for our client. Creditors often change law firms, and the new firm may not have read the order carefully to see if the clause was there or not. Well, thank goodness, my client's order was lacking the part requiring them to make the on-going payments or face the drop dead clause ... so our clients dodged the bullet.
For my clients: I hate signing Drop Dead Agreements but I will:
(1) if it is to save your home;
(2) and you tell me that you understand.
But then understand that my hands will likely be tied if you fail to live up to the terms of the agreement. You have agreed in advance to what would/should happen it you don't make the payments on time.
So much for my soap box tonight. Bankruptcy Part II will be posted next week.
Take care,
Susan
Tuesday, August 7, 2007
Bankruptcy Basis in Missouri and Kansas part one
Part One
There are 4 types of bankruptcy that people can file. There are other types – for other entities like rail roads companies can file. But there are only 4 types for people. First, let’s talk about the ones that most of my clients don’t file. Chapter 11 is reorganization; it is not for most people because the retainer for the attorney’s fees is over $10,000. The second type is for farmers. That leaves us with Chapter 7 and Chapter 13. Chapter 7 is liquidation, and Chapter 13 is reorganization.
I file more Chapter 13s than Chapter 7s in my practice because my clients have houses and cars to save and they can do that can do in Chapter 13. Chapter 7 is liquidation, but most people don’t lose anything. Missouri and Kansas both decided to only allow their state’s exemptions and you can’t use the federal exemptions in bankruptcy cases … unless you are not a resident of the state.
Kansas is a great debtor state. Missouri is a creditor state. This makes practice in our border town very interesting. I tell my clients and my staff to walk me through the following questions before I can answer bankruptcy questions. First, is the case Kansas or Missouri? Second, is the case Chapter 7 or Chapter 13? Third, is the case filed? The answers to these questions change my advice.
Why is Kansas a debtor state? Because the exemptions are very good for debtors in Kansas, so it is a good place to be a debtor. The exemption for cars/trucks is $20,000 per car per debtor. Compared with Missouri’s cars/trucks exemption is only $3,000 per debtor per car. In Kansas, the household goods exemption is all of the furniture, clothing, heating fuel that you and your family need for the next year. In Missouri, the household good exemption is $3,000 per debtor. The crazy part is there is no exemption for cash in Kansas. Missouri has a wild card exemption and exemptions for each child under the age of 18 and head of house hold exemption which can be applied to cash, tax refunds or any thing that they want to exempt. Missouri is a creditor state because it is a good place to be a creditor.
This blog is not intended to give anyone legal advice. See an attorney for legal advice in your case.
If you are looking for an attorney in the Kansas City Area, call our office for an appointment at (816-453-2240) or email us at www.bratcherlaw@yahoo.com. We represent Debtors in Chapter 7 and 13s.
There are 4 types of bankruptcy that people can file. There are other types – for other entities like rail roads companies can file. But there are only 4 types for people. First, let’s talk about the ones that most of my clients don’t file. Chapter 11 is reorganization; it is not for most people because the retainer for the attorney’s fees is over $10,000. The second type is for farmers. That leaves us with Chapter 7 and Chapter 13. Chapter 7 is liquidation, and Chapter 13 is reorganization.
I file more Chapter 13s than Chapter 7s in my practice because my clients have houses and cars to save and they can do that can do in Chapter 13. Chapter 7 is liquidation, but most people don’t lose anything. Missouri and Kansas both decided to only allow their state’s exemptions and you can’t use the federal exemptions in bankruptcy cases … unless you are not a resident of the state.
Kansas is a great debtor state. Missouri is a creditor state. This makes practice in our border town very interesting. I tell my clients and my staff to walk me through the following questions before I can answer bankruptcy questions. First, is the case Kansas or Missouri? Second, is the case Chapter 7 or Chapter 13? Third, is the case filed? The answers to these questions change my advice.
Why is Kansas a debtor state? Because the exemptions are very good for debtors in Kansas, so it is a good place to be a debtor. The exemption for cars/trucks is $20,000 per car per debtor. Compared with Missouri’s cars/trucks exemption is only $3,000 per debtor per car. In Kansas, the household goods exemption is all of the furniture, clothing, heating fuel that you and your family need for the next year. In Missouri, the household good exemption is $3,000 per debtor. The crazy part is there is no exemption for cash in Kansas. Missouri has a wild card exemption and exemptions for each child under the age of 18 and head of house hold exemption which can be applied to cash, tax refunds or any thing that they want to exempt. Missouri is a creditor state because it is a good place to be a creditor.
This blog is not intended to give anyone legal advice. See an attorney for legal advice in your case.
If you are looking for an attorney in the Kansas City Area, call our office for an appointment at (816-453-2240) or email us at www.bratcherlaw@yahoo.com. We represent Debtors in Chapter 7 and 13s.
Monday, August 6, 2007
Borrowing Money While in Bankruptcy
First, it is possible to borrow money while you are in Chapter 13. Shocked? Most of my clients are when I first tell them this. Yet, every month we have clients buying new and newer cars/trucks and houses while they are still in bankruptcy. It requires some planning but we do it every month. As a general rule, it is hard to borrow money when you are in your case, but just last week we did some motions for several clients to buy cars/trucks at very good interest rates -- under 8%.
So, how did they do it? First, you have to believe that it is possible. Clients are not bad people or even bad credit risks just because they are in bankruptcy. Many clients just need a little time to get back on their feet. When I was at the CLE in Florida this summer I talked to a mortgage lender who lends to Chapter 13 debtors to help them buy out of their case by refinancing their mortgages. This is not for everyone. But it is the right thing for some people. Check with your attorney (if you are my client schedule an appointment) to see if it is right for you.
To borrow enough money to buy a car/truck are house, in Western District of Missouri and Kansas - Kansas City Bankruptcy Courts we have to have all of the facts for the court -- what they want to buy, how much money is the sales price and how much money is the loan, the interest rate, the monthly payment amount, and the number of months of payments. We put this all in a motion and put the issue before the court. We may ask the Court to rule on the matter without having a hearing. We do this all the time and only a few times do we have to have a hearing.
With my client's permission, I want to tell you about what happened to a client this year. They were in Chapter 13, and they needed to buy a different car/truck. So, they go to the car dealership and pick one out. They tell everyone that they are in bankruptcy and they need to contact their attorney and get permission to borrow. The car dealership tells them at they are wrong. Many of my clients in Missouri get out their trustee's book and see that it says that they need permission and they call us. Good job! My clients call me and they say that man (Mr. Fink, the chapter 13 Trustee( told them at the 341 meeting (meeting of creditors) that they needed to contact their attorney and get an order from the Court. But the car dealerships don't all know anything about bankruptcy. Many of them believe that all my clients need is a note from the Trustee. Well, there is no note to borrow large amounts of funds available from the Trustee's office. (Some amounts may be approved by some Trustees, but not enough to buy a new car or a house.) It takes a court order. We get the Court Orders from a Judge. It requires a motion and maybe a hearing before the court. I have been told by my clients that the car dealerships told them that we were not very good attorneys if we could not get the letter from the Trustee's office to borrow amounts like $10,000. Well, if it could be done we would be doing that. It is faster than drafting the motions and seeking court approval.
Back to my story, in the end the car dealership conceded that they were wrong and it took a court order for my clients to borrow money. This is because the finance companies wanted either an order or a discharge from my clients. So, for all of my clients -- call us and we will work to get you an order to get that new or newer car/truck or a house.
Bye for now,
Susan
So, how did they do it? First, you have to believe that it is possible. Clients are not bad people or even bad credit risks just because they are in bankruptcy. Many clients just need a little time to get back on their feet. When I was at the CLE in Florida this summer I talked to a mortgage lender who lends to Chapter 13 debtors to help them buy out of their case by refinancing their mortgages. This is not for everyone. But it is the right thing for some people. Check with your attorney (if you are my client schedule an appointment) to see if it is right for you.
To borrow enough money to buy a car/truck are house, in Western District of Missouri and Kansas - Kansas City Bankruptcy Courts we have to have all of the facts for the court -- what they want to buy, how much money is the sales price and how much money is the loan, the interest rate, the monthly payment amount, and the number of months of payments. We put this all in a motion and put the issue before the court. We may ask the Court to rule on the matter without having a hearing. We do this all the time and only a few times do we have to have a hearing.
With my client's permission, I want to tell you about what happened to a client this year. They were in Chapter 13, and they needed to buy a different car/truck. So, they go to the car dealership and pick one out. They tell everyone that they are in bankruptcy and they need to contact their attorney and get permission to borrow. The car dealership tells them at they are wrong. Many of my clients in Missouri get out their trustee's book and see that it says that they need permission and they call us. Good job! My clients call me and they say that man (Mr. Fink, the chapter 13 Trustee( told them at the 341 meeting (meeting of creditors) that they needed to contact their attorney and get an order from the Court. But the car dealerships don't all know anything about bankruptcy. Many of them believe that all my clients need is a note from the Trustee. Well, there is no note to borrow large amounts of funds available from the Trustee's office. (Some amounts may be approved by some Trustees, but not enough to buy a new car or a house.) It takes a court order. We get the Court Orders from a Judge. It requires a motion and maybe a hearing before the court. I have been told by my clients that the car dealerships told them that we were not very good attorneys if we could not get the letter from the Trustee's office to borrow amounts like $10,000. Well, if it could be done we would be doing that. It is faster than drafting the motions and seeking court approval.
Back to my story, in the end the car dealership conceded that they were wrong and it took a court order for my clients to borrow money. This is because the finance companies wanted either an order or a discharge from my clients. So, for all of my clients -- call us and we will work to get you an order to get that new or newer car/truck or a house.
Bye for now,
Susan
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