Hello everyone:
I was at a 341 (meeting of creditors) in Kansas City, Kansas this morning. After watching the Trustee conduct several meetings, it made it clear to my client how much the bankruptcy law is still up in the air. We are waiting for the ruling on our 910 car in Missouri (what happens when the debtor purchased the car within 910 days of the bankruptcy filing and they roll into the loan the upside down part of the trade-in car). Kansas has several issues before the 10th Circuit Court including what interest should be paid on the 910 cars and what to do when they have rolled in the upside down part of the trade-in car.
My client heard the Trustee say that the issues have not be decided and it really hit home with him. I think partly because he has a 910 car. My client comment that he heard the Trustee say that the new law is still very new. That really hit home with me. It was just 2 years in October that we filed our last case under the old law. Now, we are in the brave new world still up in the air ... awaiting judges' rulings.
This year has been crazy. I think that everyone who is walking in my door is facing foreclosures, repos, and law suits. My clients have waited to see a bankruptcy attorney until they had no choice. I think that we had everyone file that was even thinking about bankruptcy before Oct 17, 2005 (last day of the old law). Now we are seeing people that never thought about bankruptcy before the rush to file. Some clients are more prepared and others are still babes in the woods.
I will update you all when the Judge issue their rulings on these issues. It will be an interesting year next year!
Bye for now, Susan Bratcher, attorney at law ....
Wednesday, November 28, 2007
Saturday, November 17, 2007
Foreclosures in Missouri
Sorry that I have been away so long. Bankruptcy filings are rising. We are seeing it every day. November is normally a slow month for my office, and this year here I am at 3 p.m. on Saturday with several new clients begging to get in to see us. The mortgage foreclosure rates show just how hard Missouri is being hit. I am not seeing the same numbers from my Kansas clients. It could be that because my office is in Missouri that I just see more. It is hard to see people losing their homes just because they took out a loan that they can't afford to pay because the interest rates have sky rocketed.
We hear it every day. I even get calls from real estate agents begging us to help them. I do not have the power to make everything better. In bankruptcy, I can help clients get the arrearages current by paying them through the plan. (The arrearages are the amounts that the debtors are behind on their payments.) However, clients must be able to make the on-going mortgage payments. I don't have the power to change the interest rates in general.
Also, as I have said before, refinancing is hard to do that first year of bankruptcy. I want to point my clients towards some banks that have been working with my clients. Hats off to these business: Platte Valley Bank and Lawson Bank. My clients received wonderful treatment by these banks, and I want to say thanks to them. (I don't have an account or a relationship with either of them.)
My clients are done filling out their paperwork ... so I have to go.
Hello to all of my clients and readers.
Susan Bratcher
We hear it every day. I even get calls from real estate agents begging us to help them. I do not have the power to make everything better. In bankruptcy, I can help clients get the arrearages current by paying them through the plan. (The arrearages are the amounts that the debtors are behind on their payments.) However, clients must be able to make the on-going mortgage payments. I don't have the power to change the interest rates in general.
Also, as I have said before, refinancing is hard to do that first year of bankruptcy. I want to point my clients towards some banks that have been working with my clients. Hats off to these business: Platte Valley Bank and Lawson Bank. My clients received wonderful treatment by these banks, and I want to say thanks to them. (I don't have an account or a relationship with either of them.)
My clients are done filling out their paperwork ... so I have to go.
Hello to all of my clients and readers.
Susan Bratcher
Thursday, September 6, 2007
Revoking Discharge or the Case is Not Over Just Because You Receive a Discharge
I am sorry that I have been away so long ... things are very busy. Last week I meet a new client with a revoked discharge from their Chapter 7 bankruptcy. I have not had one of my clients' discharge revoked (knock on wood) yet! However, one of my clients came close. Now, let me back up and explain some terms and law.
First, cases end one of a few ways, they can be discharged or dismissed. The goal of filing a bankruptcy case is to obtain a discharge of the debtor's debts. This means that the debtor does not owe the creditor any more at the end of the case. Some debts are not dischargable, such as child support, some taxes, and student loans (in general). Discharge is a good thing for the debtor. Dismissal means that the case is over but the debts are still out there. The bankruptcy did not resolve the debts and they still may be collectable. (See an attorney to see how these laws apply in your case.)
Second, in Missouri and Kansas Debtors can obtain a discharge and their case is still not over. How can that be? Well, I have a few cases where someone passed away within 180 days from the date of filing the bankruptcy case and if my client receives any money or property due to the death of that person the money belongs to the bankruptcy estate. One of the Chapter 7 trustees would say at the meeting of creditors (341 meeting) that the money or property was his not the debtors. Well, often the debtor has received the discharge before the death occurs. Then, we send the Trustee a letter letting them know that someone has passed away and my client might receive something. The Debtor has an ongoing duty to tell the Trustee this kind of information. The other thing is that a prorated portion of the next year's tax refund also belongs to the estate.
I can hear you asking how that is possible ... so back to the speech ... every thing that you own on the date of filing is part of the bankruptcy estate plus a few things including any money or property that you receive due to the death of someone withing 180 days from the date of filing. The death occurs within that time frame ... it may take years to receive the money or the property. Well, the tax refund is part of what debtors own on the date of filing. For example, if you file on June 30th then 1/2 of the year is over and 1/2 of the tax refund belongs to the trustee (after exemptions).
What happens sometimes is that Debtors are short on money and they spend the Trustee's share of the tax refund ... Then the Trustee files a Motion to have the money turned over to them. After all it is the Trustee's job to protect the creditors. If my clients are honest with me and themselves we can often work this out with the Trustee ... The Trustees are just doing their job but they have allowed our clients to make reasonable payments ... so that it will be paid off in about 10 months or less.
This is were some problems may arise. Clients must keep their attorneys informed as to their address and phone numbers. If the attorney can't reach the Debtor then the Debtor won't know that they need to do something. Then, the next thing you know the Trustee is seeking to revoke their discharge ... then the Debtor has done all of this work and still owes money to the creditors (exceptions may apply). It is the exceptions that make the practice of law interesting.
To all of my clients ... please keep us informed of your addresses even if you think that the case is long over. Maybe I will get the holiday and or Christmas cards out again this year! I have not mailed them out for 7 years ... it could be the right year to do it.
Well, I need to get some rest ... Have a wonderful day.
Susan
First, cases end one of a few ways, they can be discharged or dismissed. The goal of filing a bankruptcy case is to obtain a discharge of the debtor's debts. This means that the debtor does not owe the creditor any more at the end of the case. Some debts are not dischargable, such as child support, some taxes, and student loans (in general). Discharge is a good thing for the debtor. Dismissal means that the case is over but the debts are still out there. The bankruptcy did not resolve the debts and they still may be collectable. (See an attorney to see how these laws apply in your case.)
Second, in Missouri and Kansas Debtors can obtain a discharge and their case is still not over. How can that be? Well, I have a few cases where someone passed away within 180 days from the date of filing the bankruptcy case and if my client receives any money or property due to the death of that person the money belongs to the bankruptcy estate. One of the Chapter 7 trustees would say at the meeting of creditors (341 meeting) that the money or property was his not the debtors. Well, often the debtor has received the discharge before the death occurs. Then, we send the Trustee a letter letting them know that someone has passed away and my client might receive something. The Debtor has an ongoing duty to tell the Trustee this kind of information. The other thing is that a prorated portion of the next year's tax refund also belongs to the estate.
I can hear you asking how that is possible ... so back to the speech ... every thing that you own on the date of filing is part of the bankruptcy estate plus a few things including any money or property that you receive due to the death of someone withing 180 days from the date of filing. The death occurs within that time frame ... it may take years to receive the money or the property. Well, the tax refund is part of what debtors own on the date of filing. For example, if you file on June 30th then 1/2 of the year is over and 1/2 of the tax refund belongs to the trustee (after exemptions).
What happens sometimes is that Debtors are short on money and they spend the Trustee's share of the tax refund ... Then the Trustee files a Motion to have the money turned over to them. After all it is the Trustee's job to protect the creditors. If my clients are honest with me and themselves we can often work this out with the Trustee ... The Trustees are just doing their job but they have allowed our clients to make reasonable payments ... so that it will be paid off in about 10 months or less.
This is were some problems may arise. Clients must keep their attorneys informed as to their address and phone numbers. If the attorney can't reach the Debtor then the Debtor won't know that they need to do something. Then, the next thing you know the Trustee is seeking to revoke their discharge ... then the Debtor has done all of this work and still owes money to the creditors (exceptions may apply). It is the exceptions that make the practice of law interesting.
To all of my clients ... please keep us informed of your addresses even if you think that the case is long over. Maybe I will get the holiday and or Christmas cards out again this year! I have not mailed them out for 7 years ... it could be the right year to do it.
Well, I need to get some rest ... Have a wonderful day.
Susan
Sunday, August 19, 2007
Mortgage Companies Filing for Bankruptcy
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
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
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
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