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Attention Creditors: Don't mess with my clients. You might regret it.
January 24, 2012
This is a true story demonstrating how one particular credit card company, through their high-priced attorneys, tried to intimidate and harass my clients, but didn't get away with it.
Nearly a year ago I filed a chapter 7 bankruptcy case on behalf of my clients who reside in Bergen County, New Jersey. Among their enormous debts, they had an outstanding balance with their credit card. Their bankruptcy case was filed in the United States Bankruptcy Court in Newark, NJ.
Their use of credit cards was not for extravagant vacations, jewelry, or flat screen TVs. These clients were counting every nickel in order to scrape together enough money to keep the lights on and buy groceries.
I know this because I review my clients' credit card statements before I file any bankruptcy case on their behalf.
These clients had seen their income reduced to a minimal amount.
They haven't been able to pay their mortgage in about a year, and they realize that their time in their home is limited.
They used their credit cards to purchase groceries, gasoline, and used the convenience checks that their favorite credit cards often send out to cardholders - in order to pay their utility bills and even make a few mortgage payments, expecting and hoping that their income would return to a "normal" level by the time the bill arrived, so that they could pay it in full - or at the very least make the minimum payment during the next payment cycle.
Shortly after filing their bankruptcy petition, I received a subpoena from the attorneys representing one particular credit card, demanding that my clients appear in their Manhattan office with voluminous personal and business financial documents. Many of the documents requested have absolutely no bearing whatsoever on my clients' use of their credit card, or their bankruptcy filing.
These attorneys, in their sky rise office in Penn Plaza decided to ignore some fundamental laws and rules specifying an appropriate method for delivering a subpoena of this type. Instead of personally serving my clients, they decided to just send a copy to me, via first class mail.
These same high-priced, fancy-suit attorneys also ignored the rules which prohibit them from asking my New Jersey clients, who filed their case in a New Jersey court, to trek down to midtown Manhattan with boxes of unnecessary documents. Perhaps they forgot that New York is actually a different state than New Jersey. ..I'm not really sure what they were thinking..or what they were inhaling, when they drafted this subpoena and sent it off in the mail.
Oh, did I mention that these attorneys asked my clients to bring in 3 years' worth of tax returns, one year's worth of every personal and business bank statement, utility bill, transportation expense, medical and drug expense, and other documents the nature of which are extremely excessive and irrelevant to their bankruptcy filing?
My adversaries were incredibly generous in their letter, by including an offer to settle this matter for a nominal fee. You see, they suggested that they will run back into their cave in midtown Manhattan if my client would just pay them a lump sum payment of about $8,500.
I mentioned that my clients barely had enough money to buy groceries, right?
Instead of having my clients gather their documents and prepare for a trip to Manhattan, I decided to file a “Motion to Quash” their subpoena, arguing that it was procedurally defective, over-burdensome and outright harassment of my clients who came to the Bankruptcy Court in order to protect themselves from the type of bullying they were experiencing through this subpoena.
Yes, “Motion to Quash” is an actual legal term.
The bankruptcy court apparently agreed with me, because the judge not only granted my Motion to Quash, but also awarded my client $15,000 in punitive damages based on the excessive behavior of my adversary.
I bet you are wondering how my adversary responded…
When my adversary received the Order, he reached out to me, attempting to claim that he never got a copy of my motion and didn't even know about the hearing. I emailed him an MP3 file containing a message he left for me, just several days after he received my motion…asking me to call him back on this motion which I filed on this particular case.
Perhaps working in midtown Manhattan causes fancy-suit attorneys to lose their memory.
After he received my email with the MP3 file of his own voice, he decided to file a Motion for Reconsideration, asking the same judge to re-visit this issue..claiming that he didn't know anything about my motion because a clerk in his office inadvertently updated their database indicating that this case was closed.
Huh?
A clerk updated the database indicating that the case was closed, yet he still got my mail, and still called me to talk about my motion, which he now claims he knew nothing about?
He filed this motion, arguing he knew nothing about it, even AFTER I emailed him with his voicemail recording, reminding him that he truly DID know about it?
I guess fancy-suit attorneys in midtown Manhattan work such long hours that their sense of logic begins to fade quickly.
Well, the judge didn't exactly buy his story either..so his Motion for Reconsideration was denied when the judge recently decided on this matter.
In the meantime, my clients also got their bankruptcy discharge..and hopefully I taught this credit card company to lay off my clients.
Now, through this blog posting, I am hoping that perhaps other creditors will learn an important lesson:
Be careful of your summer clerks! They might inadvertently mark your active cases as “closed”…and then, who knows what might happen?!
David Giller, Esq. is a Consumer Law attorney, providing professional, confidential and compassionate legal advice throughout New York City and northern New Jersey in financially stressful matters including bankruptcy, foreclosure defense, debt settlement, Fair Debt Collection Practices Act and Fair Credit Reporting Act. To learn more about David or his law practice, visit www.gillerlaw.com or call 201-478-7412.
Nearly a year ago I filed a chapter 7 bankruptcy case on behalf of my clients who reside in Bergen County, New Jersey. Among their enormous debts, they had an outstanding balance with their credit card. Their bankruptcy case was filed in the United States Bankruptcy Court in Newark, NJ.
Their use of credit cards was not for extravagant vacations, jewelry, or flat screen TVs. These clients were counting every nickel in order to scrape together enough money to keep the lights on and buy groceries.
I know this because I review my clients' credit card statements before I file any bankruptcy case on their behalf.
These clients had seen their income reduced to a minimal amount.
They haven't been able to pay their mortgage in about a year, and they realize that their time in their home is limited.
They used their credit cards to purchase groceries, gasoline, and used the convenience checks that their favorite credit cards often send out to cardholders - in order to pay their utility bills and even make a few mortgage payments, expecting and hoping that their income would return to a "normal" level by the time the bill arrived, so that they could pay it in full - or at the very least make the minimum payment during the next payment cycle.
Shortly after filing their bankruptcy petition, I received a subpoena from the attorneys representing one particular credit card, demanding that my clients appear in their Manhattan office with voluminous personal and business financial documents. Many of the documents requested have absolutely no bearing whatsoever on my clients' use of their credit card, or their bankruptcy filing.
These attorneys, in their sky rise office in Penn Plaza decided to ignore some fundamental laws and rules specifying an appropriate method for delivering a subpoena of this type. Instead of personally serving my clients, they decided to just send a copy to me, via first class mail.
These same high-priced, fancy-suit attorneys also ignored the rules which prohibit them from asking my New Jersey clients, who filed their case in a New Jersey court, to trek down to midtown Manhattan with boxes of unnecessary documents. Perhaps they forgot that New York is actually a different state than New Jersey. ..I'm not really sure what they were thinking..or what they were inhaling, when they drafted this subpoena and sent it off in the mail.
Oh, did I mention that these attorneys asked my clients to bring in 3 years' worth of tax returns, one year's worth of every personal and business bank statement, utility bill, transportation expense, medical and drug expense, and other documents the nature of which are extremely excessive and irrelevant to their bankruptcy filing?
My adversaries were incredibly generous in their letter, by including an offer to settle this matter for a nominal fee. You see, they suggested that they will run back into their cave in midtown Manhattan if my client would just pay them a lump sum payment of about $8,500.
I mentioned that my clients barely had enough money to buy groceries, right?
Instead of having my clients gather their documents and prepare for a trip to Manhattan, I decided to file a “Motion to Quash” their subpoena, arguing that it was procedurally defective, over-burdensome and outright harassment of my clients who came to the Bankruptcy Court in order to protect themselves from the type of bullying they were experiencing through this subpoena.
Yes, “Motion to Quash” is an actual legal term.
The bankruptcy court apparently agreed with me, because the judge not only granted my Motion to Quash, but also awarded my client $15,000 in punitive damages based on the excessive behavior of my adversary.
I bet you are wondering how my adversary responded…
When my adversary received the Order, he reached out to me, attempting to claim that he never got a copy of my motion and didn't even know about the hearing. I emailed him an MP3 file containing a message he left for me, just several days after he received my motion…asking me to call him back on this motion which I filed on this particular case.
Perhaps working in midtown Manhattan causes fancy-suit attorneys to lose their memory.
After he received my email with the MP3 file of his own voice, he decided to file a Motion for Reconsideration, asking the same judge to re-visit this issue..claiming that he didn't know anything about my motion because a clerk in his office inadvertently updated their database indicating that this case was closed.
Huh?
A clerk updated the database indicating that the case was closed, yet he still got my mail, and still called me to talk about my motion, which he now claims he knew nothing about?
He filed this motion, arguing he knew nothing about it, even AFTER I emailed him with his voicemail recording, reminding him that he truly DID know about it?
I guess fancy-suit attorneys in midtown Manhattan work such long hours that their sense of logic begins to fade quickly.
Well, the judge didn't exactly buy his story either..so his Motion for Reconsideration was denied when the judge recently decided on this matter.
In the meantime, my clients also got their bankruptcy discharge..and hopefully I taught this credit card company to lay off my clients.
Now, through this blog posting, I am hoping that perhaps other creditors will learn an important lesson:
Be careful of your summer clerks! They might inadvertently mark your active cases as “closed”…and then, who knows what might happen?!
David Giller, Esq. is a Consumer Law attorney, providing professional, confidential and compassionate legal advice throughout New York City and northern New Jersey in financially stressful matters including bankruptcy, foreclosure defense, debt settlement, Fair Debt Collection Practices Act and Fair Credit Reporting Act. To learn more about David or his law practice, visit www.gillerlaw.com or call 201-478-7412.
How Will Settling My Credit Card Accounts Impact My Credit Report?
January 22, 2012
I am often asked to help clients negotiate their credit card debts.
I’ve certainly done it before, quite successfully…but there are always some caveats that I warn clients in advance.
One of them relates to the impact of a settled account - on their credit reports.
While your account gets settled and you only pay a fraction of the debt owed to your credit card companies, these credit card companies report these simple (and true) facts to the credit reporting agencies.
Your accounts will have a notation in the credit report indicating that they were “settled,” meaning that you paid less than the amount actually owed.
No, this is not a good thing to have on your credit report…but it’s the lesser of two evils, when the only other option is to have the credit card companies sue you for unpaid funds, and they would end up placing a lien on your bank accounts or garnishing your wages until the entire balance is paid in full.
For more on this subject, you can check out this recent article posted online by Fox Business News.
David Giller, Esq. is a Consumer Law attorney, providing professional, confidential and compassionate legal advice throughout New York City and northern New Jersey in financially stressful matters including bankruptcy, foreclosure defense, debt settlement, Fair Debt Collection Practices Act and Fair Credit Reporting Act. To learn more about David or his law practice, visit www.gillerlaw.com or call 201-478-7412.
I’ve certainly done it before, quite successfully…but there are always some caveats that I warn clients in advance.
One of them relates to the impact of a settled account - on their credit reports.
While your account gets settled and you only pay a fraction of the debt owed to your credit card companies, these credit card companies report these simple (and true) facts to the credit reporting agencies.
Your accounts will have a notation in the credit report indicating that they were “settled,” meaning that you paid less than the amount actually owed.
No, this is not a good thing to have on your credit report…but it’s the lesser of two evils, when the only other option is to have the credit card companies sue you for unpaid funds, and they would end up placing a lien on your bank accounts or garnishing your wages until the entire balance is paid in full.
For more on this subject, you can check out this recent article posted online by Fox Business News.
David Giller, Esq. is a Consumer Law attorney, providing professional, confidential and compassionate legal advice throughout New York City and northern New Jersey in financially stressful matters including bankruptcy, foreclosure defense, debt settlement, Fair Debt Collection Practices Act and Fair Credit Reporting Act. To learn more about David or his law practice, visit www.gillerlaw.com or call 201-478-7412.
Bankruptcy and Divorce
January 22, 2012
I’m not a therapist, but as a bankruptcy attorney I can tell you that I have definitely seen a very strong correlation between martial stress and financial stress.
Very often divorce is followed by bankruptcy or bankruptcy follows divorce.
If you find yourself in this situation, there are some critical issues and concepts you should be aware of.
This posting should help you gain a better understanding of these issues.
David Giller, Esq. is a Consumer Law attorney, providing professional, confidential and compassionate legal advice throughout New York City and northern New Jersey in financially stressful matters including bankruptcy, foreclosure defense, debt settlement, Fair Debt Collection Practices Act and Fair Credit Reporting Act. To learn more about David or his law practice, visit www.gillerlaw.com or call 201-478-7412.
Very often divorce is followed by bankruptcy or bankruptcy follows divorce.
If you find yourself in this situation, there are some critical issues and concepts you should be aware of.
This posting should help you gain a better understanding of these issues.
David Giller, Esq. is a Consumer Law attorney, providing professional, confidential and compassionate legal advice throughout New York City and northern New Jersey in financially stressful matters including bankruptcy, foreclosure defense, debt settlement, Fair Debt Collection Practices Act and Fair Credit Reporting Act. To learn more about David or his law practice, visit www.gillerlaw.com or call 201-478-7412.
I Received A Letter From The IRS - What Should I Do Next?!
January 22, 2012
You received a letter from the IRS.
You’re concerned.
You’re not sure what to do.
Your heart is beating so strong, that you can’t even make sense of the words on the paper, even though they are written in simple English.
Do you know what most people do?
Most people put the letter back in the envelope, and toss it in the pile of mail, magazines, and bills that they will get to…eventually.
Most people do absolutely nothing because they are so terrified of being faced with the IRS, that they become paralyzed….somehow hoping that the issue with just disappear…resolve itself….and the IRS will just forget about it, since they didn’t get a response.
Do you think that the IRS will just forget about it?
I can guarantee that they won’t.
I have met many clients who came to my office with stacks of sealed envelopes from the IRS…sent certified mail, return receipt requested. Did I mention that my clients bring in these envelopes SEALED?
If you’ve recently received some mail from the IRS, please take the first step and open it up.
Then read it.
Take a deep breath and read it again.
Now, call your accountant, or an experienced attorney, for a better understanding of what you should do before the IRS puts a lien on your bank account.
David Giller, Esq. is a Consumer Law attorney, providing professional, confidential and compassionate legal advice throughout New York City and northern New Jersey in financially stressful matters including bankruptcy, foreclosure defense, debt settlement, Fair Debt Collection Practices Act and Fair Credit Reporting Act. To learn more about David or his law practice, visit www.gillerlaw.com or call 201-478-7412.
You’re concerned.
You’re not sure what to do.
Your heart is beating so strong, that you can’t even make sense of the words on the paper, even though they are written in simple English.
Do you know what most people do?
Most people put the letter back in the envelope, and toss it in the pile of mail, magazines, and bills that they will get to…eventually.
Most people do absolutely nothing because they are so terrified of being faced with the IRS, that they become paralyzed….somehow hoping that the issue with just disappear…resolve itself….and the IRS will just forget about it, since they didn’t get a response.
Do you think that the IRS will just forget about it?
I can guarantee that they won’t.
I have met many clients who came to my office with stacks of sealed envelopes from the IRS…sent certified mail, return receipt requested. Did I mention that my clients bring in these envelopes SEALED?
If you’ve recently received some mail from the IRS, please take the first step and open it up.
Then read it.
Take a deep breath and read it again.
Now, call your accountant, or an experienced attorney, for a better understanding of what you should do before the IRS puts a lien on your bank account.
David Giller, Esq. is a Consumer Law attorney, providing professional, confidential and compassionate legal advice throughout New York City and northern New Jersey in financially stressful matters including bankruptcy, foreclosure defense, debt settlement, Fair Debt Collection Practices Act and Fair Credit Reporting Act. To learn more about David or his law practice, visit www.gillerlaw.com or call 201-478-7412.
Recent Articles Worth Sharing - Jan 19, 2012
January 19, 2012
6 Credit Card Services You Don’t (Usually) Need - by WiseBread
3 Steps to Changing Your Financial Habits - by MoneyNing
Talk Your Way to A Better Raise - CNN Money
3 Ways to Take Control of Your Finances in 2012 - by DailyFinance (AOL)
Savings Strategies for Singles - by Fox Business
Lawsuits Ease Over Credit Card Debt - by BankruptcyHome.com
How Donald Trump Uses Bankruptcy to Become More Successful - by National Bankruptcy Forum
If Your Debts Are Mostly Secured, Should You File for Bankruptcy? - by National Bankruptcy Forum
Will I Lose My Tax Refund If I File Bankruptcy? - by National Bankruptcy Forum
Using Bankruptcy to Restore Your Driver’s License - by National Bankruptcy Forum
David Giller, Esq. is a Consumer Law attorney, providing professional, confidential and compassionate legal advice throughout New York City and northern New Jersey in financially stressful matters including bankruptcy, foreclosure defense, debt settlement, Fair Debt Collection Practices Act and Fair Credit Reporting Act. To learn more about David or his law practice, visit www.gillerlaw.com or call 201-478-7412.
3 Steps to Changing Your Financial Habits - by MoneyNing
Talk Your Way to A Better Raise - CNN Money
3 Ways to Take Control of Your Finances in 2012 - by DailyFinance (AOL)
Savings Strategies for Singles - by Fox Business
Lawsuits Ease Over Credit Card Debt - by BankruptcyHome.com
How Donald Trump Uses Bankruptcy to Become More Successful - by National Bankruptcy Forum
If Your Debts Are Mostly Secured, Should You File for Bankruptcy? - by National Bankruptcy Forum
Will I Lose My Tax Refund If I File Bankruptcy? - by National Bankruptcy Forum
Using Bankruptcy to Restore Your Driver’s License - by National Bankruptcy Forum
David Giller, Esq. is a Consumer Law attorney, providing professional, confidential and compassionate legal advice throughout New York City and northern New Jersey in financially stressful matters including bankruptcy, foreclosure defense, debt settlement, Fair Debt Collection Practices Act and Fair Credit Reporting Act. To learn more about David or his law practice, visit www.gillerlaw.com or call 201-478-7412.
5 Signs Your Finances Are On The Brink
January 19, 2012
You might feel that the financial pressure is “on” - but you’re not sure if it’s considered normal, or you’re truly in trouble.
This recent article from MSN Money highlights 5 signs to help you identify if you’re in need of a serious financial makeover.
Here are the core takeaways:
1. You keep overdrawing your checking account.
2. Your credit card payments are dwindling.
3. Your emergency fund reads “zero.”
4. Your have to choose which bills to pay.
5. Your credit score is below 620.
David Giller, Esq. is a Consumer Law attorney, providing professional, confidential and compassionate legal advice throughout New York City and northern New Jersey in financially stressful matters including bankruptcy, foreclosure defense, debt settlement, Fair Debt Collection Practices Act and Fair Credit Reporting Act. To learn more about David or his law practice, visit www.gillerlaw.com or call 201-478-7412.
This recent article from MSN Money highlights 5 signs to help you identify if you’re in need of a serious financial makeover.
Here are the core takeaways:
1. You keep overdrawing your checking account.
2. Your credit card payments are dwindling.
3. Your emergency fund reads “zero.”
4. Your have to choose which bills to pay.
5. Your credit score is below 620.
David Giller, Esq. is a Consumer Law attorney, providing professional, confidential and compassionate legal advice throughout New York City and northern New Jersey in financially stressful matters including bankruptcy, foreclosure defense, debt settlement, Fair Debt Collection Practices Act and Fair Credit Reporting Act. To learn more about David or his law practice, visit www.gillerlaw.com or call 201-478-7412.
In Response To Those Argue That Bankruptcy Is Immoral and Unethical
January 06, 2012
Very often I encounter individuals who feel very strongly that bankruptcy is immoral, unethical and somehow violates their religious beliefs.
If the debtor went ahead and took out loans without any intent to pay them back, or used their credit cards in order to make purchases they knew outright that they would simply find ways to avoid, then I agree wholeheartedly that it would be immoral and unethical to pursue bankruptcy as an attempt to avoid repaying those debts.
In fact, it would also be downright illegal.
However, every debtor I've met to date has been an individual who made purchases with their credit cards or took out loans that they intended to repay, upon earning a better income which would allow them to fund their day-to-day living expenses as well as paying back these outstanding debts. To those debtors who still feel that pursuing bankruptcy as a viable option is immoral and unethical, I invite you to open the Bible, and look at Deutoronomy 15:1-2 (דברים פרק טו)
In English:
1 At the end of every seven years thou shalt make a release.
2 And this is the manner of the release: every creditor shall release that which he hath lent unto his neighbour; he shall not exact it of his neighbour and his brother; because the LORD'S release hath been proclaimed.
For even further elaboration, I will include the detailed explanation of these passages by Rashi - both in English translation as well as the original Hebrew:
At the end of seven years [you shall make a release]: One might think that this means seven years [starting from the transaction] of each loan. Scripture, therefore, states, “The seventh year [i.e., the year of release] has approached…” (verse 9). But if you say [that] “seven years” [means] for each loan, after each individual loan, how has it approached? [No loan was yet transacted.] Consequently, you learn [that Scripture means] seven years according to the counting of the Shemitha [cycle]. — [Sifrei]
מקץ שבע שנים: יכול שבע שנים לכל מלוה ומלוה, תלמוד לומר (פסוק ט) קרבה שנת השבע. ואם אתה אומר שבע שנים לכל מלוה ומלוה להלואת כל אחד ואחד, היאך היא קרבה, הא למדת שבע שנים למנין השמיטות:
to release the hand of every creditor: [lit. to release every master the loan of his hand, which makes no sense. Therefore, Rashi interprets the verse to mean] to release the hand of every creditor [from reclaiming the loan].
שמוט כל בעל משה ידו: שמוט את ידו של כל בעל משה:
David Giller, Esq. is a Consumer Law attorney, providing professional, confidential and compassionate legal advice throughout New York City and northern New Jersey in financially stressful matters including bankruptcy, foreclosure defense, debt settlement, Fair Debt Collection Practices Act and Fair Credit Reporting Act. To learn more about David or his law practice, visit www.gillerlaw.com or call 201-478-7412.
If the debtor went ahead and took out loans without any intent to pay them back, or used their credit cards in order to make purchases they knew outright that they would simply find ways to avoid, then I agree wholeheartedly that it would be immoral and unethical to pursue bankruptcy as an attempt to avoid repaying those debts.
In fact, it would also be downright illegal.
However, every debtor I've met to date has been an individual who made purchases with their credit cards or took out loans that they intended to repay, upon earning a better income which would allow them to fund their day-to-day living expenses as well as paying back these outstanding debts. To those debtors who still feel that pursuing bankruptcy as a viable option is immoral and unethical, I invite you to open the Bible, and look at Deutoronomy 15:1-2 (דברים פרק טו)
In English:
1 At the end of every seven years thou shalt make a release.
2 And this is the manner of the release: every creditor shall release that which he hath lent unto his neighbour; he shall not exact it of his neighbour and his brother; because the LORD'S release hath been proclaimed.
For even further elaboration, I will include the detailed explanation of these passages by Rashi - both in English translation as well as the original Hebrew:
At the end of seven years [you shall make a release]: One might think that this means seven years [starting from the transaction] of each loan. Scripture, therefore, states, “The seventh year [i.e., the year of release] has approached…” (verse 9). But if you say [that] “seven years” [means] for each loan, after each individual loan, how has it approached? [No loan was yet transacted.] Consequently, you learn [that Scripture means] seven years according to the counting of the Shemitha [cycle]. — [Sifrei]
מקץ שבע שנים: יכול שבע שנים לכל מלוה ומלוה, תלמוד לומר (פסוק ט) קרבה שנת השבע. ואם אתה אומר שבע שנים לכל מלוה ומלוה להלואת כל אחד ואחד, היאך היא קרבה, הא למדת שבע שנים למנין השמיטות:
to release the hand of every creditor: [lit. to release every master the loan of his hand, which makes no sense. Therefore, Rashi interprets the verse to mean] to release the hand of every creditor [from reclaiming the loan].
שמוט כל בעל משה ידו: שמוט את ידו של כל בעל משה:
David Giller, Esq. is a Consumer Law attorney, providing professional, confidential and compassionate legal advice throughout New York City and northern New Jersey in financially stressful matters including bankruptcy, foreclosure defense, debt settlement, Fair Debt Collection Practices Act and Fair Credit Reporting Act. To learn more about David or his law practice, visit www.gillerlaw.com or call 201-478-7412.
Federal Reserve: Foreclosure is NOT the Best Solution to the Housing Crisis
January 04, 2012
Ben Bernanke, the Federal Reserve Chairman, has finally said it.
In a 26-page white paper on the current housing crisis, the Federal Reserve agrees that more lenders should proactively pursue mortgage modification in lieu of costly, time consuming and self-destructive foreclosure actions.
As published in this recent article published in the Huffington Post, and this one published in the Wall Street Journal, the US Federal Reserve declared that foreclosure is not the ideal solution for financially distressed homeowners who are behind in their mortgages. Instead, Bernanke urges lenders to aggressively pursue mortgage modifications in order to reach a broader economic recovery in today’s market.
Let’s hope that more lender will start to listen.
Mortgage modifications are certainly better than lenders foreclosing on homes, taking possession of them, and after the homeowner vacates the premises…having empty abandoned homes further damage the housing market for the neighboring properties. The lenders are still left with properties that are not producing income, the neighboring properties continue to decline in value and the homeowners are now applying their reduced income towards a rental property.
Unfortunately, most banks don’t see it this way, or at least don’t have the incentive (yet) to change their approach.
Hopefully this will change.
…Soon….
David Giller, Esq. is a Consumer Law attorney, providing professional, confidential and compassionate legal advice throughout New York City and northern New Jersey in financially stressful matters including bankruptcy, foreclosure defense, debt settlement, Fair Debt Collection Practices Act and Fair Credit Reporting Act. To learn more about David or his law practice, visit www.gillerlaw.com or call 201-478-7412.
In a 26-page white paper on the current housing crisis, the Federal Reserve agrees that more lenders should proactively pursue mortgage modification in lieu of costly, time consuming and self-destructive foreclosure actions.
As published in this recent article published in the Huffington Post, and this one published in the Wall Street Journal, the US Federal Reserve declared that foreclosure is not the ideal solution for financially distressed homeowners who are behind in their mortgages. Instead, Bernanke urges lenders to aggressively pursue mortgage modifications in order to reach a broader economic recovery in today’s market.
Let’s hope that more lender will start to listen.
Mortgage modifications are certainly better than lenders foreclosing on homes, taking possession of them, and after the homeowner vacates the premises…having empty abandoned homes further damage the housing market for the neighboring properties. The lenders are still left with properties that are not producing income, the neighboring properties continue to decline in value and the homeowners are now applying their reduced income towards a rental property.
Unfortunately, most banks don’t see it this way, or at least don’t have the incentive (yet) to change their approach.
Hopefully this will change.
…Soon….
David Giller, Esq. is a Consumer Law attorney, providing professional, confidential and compassionate legal advice throughout New York City and northern New Jersey in financially stressful matters including bankruptcy, foreclosure defense, debt settlement, Fair Debt Collection Practices Act and Fair Credit Reporting Act. To learn more about David or his law practice, visit www.gillerlaw.com or call 201-478-7412.
Recent Articles Worth Sharing: Jan 4 2012
January 04, 2012
MoneyNing Blog: 4 Ways to Use Your Money to Buy a Little More Happiness
The Simple Dollar: Avoiding Lifestyle Inflation
Consumer Commentary: 12 Alternative Financial Resolutions for 2012
CashMoneyLife: Improve Your Credit Score Without Using Credit Cards
The Simple Dollar: Spend Less Than You Earn
Bankruptcy Home: Bankruptcy and 3 Excellent Reasons for Protection
National Bankruptcy Forum: Beginning the Bankruptcy Process
David Giller, Esq. is a Consumer Law attorney, providing professional, confidential and compassionate legal advice throughout New York City and northern New Jersey in financially stressful matters including bankruptcy, foreclosure defense, debt settlement, Fair Debt Collection Practices Act and Fair Credit Reporting Act. To learn more about David or his law practice, visit www.gillerlaw.com or call 201-478-7412.
The Simple Dollar: Avoiding Lifestyle Inflation
Consumer Commentary: 12 Alternative Financial Resolutions for 2012
CashMoneyLife: Improve Your Credit Score Without Using Credit Cards
The Simple Dollar: Spend Less Than You Earn
Bankruptcy Home: Bankruptcy and 3 Excellent Reasons for Protection
National Bankruptcy Forum: Beginning the Bankruptcy Process
David Giller, Esq. is a Consumer Law attorney, providing professional, confidential and compassionate legal advice throughout New York City and northern New Jersey in financially stressful matters including bankruptcy, foreclosure defense, debt settlement, Fair Debt Collection Practices Act and Fair Credit Reporting Act. To learn more about David or his law practice, visit www.gillerlaw.com or call 201-478-7412.
In or Out of Mortgage Trouble? A Study of Bankrupt Homeowners
January 04, 2012
The general public often makes broad (and incorrect) assumptions regarding people who file for bankruptcy.
The American Bankruptcy Law Journal recently published a fantastic study, highlighting the various sundry issues which cause homeowners to lead down the path of filing for bankruptcy.
This paper includes descriptive details about bankrupt homeowners, such as the number of missed mortgage payments, use of adjustable rate mortgages, mortgage brokers, mobile homes and refinancing or home equity lines of credit.
This article provides tremendous insight into the factual, economic, psychological and socio-economic components associated with the subject of bankruptcy filing for families struggling to stay afloat during difficult economic times.
David Giller, Esq. is a Consumer Law attorney, providing professional, confidential and compassionate legal advice throughout New York City and northern New Jersey in financially stressful matters including bankruptcy, foreclosure defense, debt settlement, Fair Debt Collection Practices Act and Fair Credit Reporting Act. To learn more about David or his law practice, visit www.gillerlaw.com or call 201-478-7412.
The American Bankruptcy Law Journal recently published a fantastic study, highlighting the various sundry issues which cause homeowners to lead down the path of filing for bankruptcy.
This paper includes descriptive details about bankrupt homeowners, such as the number of missed mortgage payments, use of adjustable rate mortgages, mortgage brokers, mobile homes and refinancing or home equity lines of credit.
This article provides tremendous insight into the factual, economic, psychological and socio-economic components associated with the subject of bankruptcy filing for families struggling to stay afloat during difficult economic times.
David Giller, Esq. is a Consumer Law attorney, providing professional, confidential and compassionate legal advice throughout New York City and northern New Jersey in financially stressful matters including bankruptcy, foreclosure defense, debt settlement, Fair Debt Collection Practices Act and Fair Credit Reporting Act. To learn more about David or his law practice, visit www.gillerlaw.com or call 201-478-7412.