Posted by: jed
on May 11, 2010
A common question that our clients have is whether they will be able to continue their utilities if they have an arrearage that is included in a bankruptcy. This may include electrical, gas, water, and other basic household utility services. This can be particularly concerning if the client is seeking to surrender their current personal residence and obtain other lodging, as they will have to open accounts with the utility companies.
If at the time of filing the client is behind in their payments, it is possible that a disruption in service may occur, however, under the Bankruptcy Code, a utility may not refuse or discontinue service because a customer has filed bankruptcy, but the utility may require that the client provide ìadequate assuranceî that they will be able to pay for their utility service in the future within 20 days of filing the bankruptcy petition. ìAdequate assuranceî may mean a cash deposit, a letter of credit, a certificate of deposit, a surety bond, a prepayment for future utility consumption, or some other type of security. Generally, what is required is some sort of deposit, though the amount of the deposit, where that is considered acceptable, is open to debate and negotiation.
Posted by: jed
on Mar 25, 2010
Under the Fair Debt Collection Practices Act (FDCPA), debt collectors cannot conduct activity which is deemed abusive, unfair, or deceptive practices to collect outstanding amounts owed by debtors. The FDCPA governs debt collectors who regularly collect debts owed to others and it covers personal, family, and household debts, including money owed on a personal credit card account, an auto loan, a medical bill, and a mortgage.
Certain actions are forbidden by the debt collectors including contacting the debtor at inconvenient times or places, such as early in the morning or after nine at night, unless agreed to by the debtor, and may not contact the debtor at work if they are told (orally or in writing) that it is not permitted to be contacted at work. Other actions that may not be taken by collectors are use threats of violence, repeatedly use the phone to annoy someone, falsely claim that they are attorneys, misrepresent the amount owed, or take or threaten to take property unless it can be done legally.
Every collector must send a written “validation notice” disclosing how much money is owed within five days after first contact with the debtor. This notice must also include the name of the creditor, and how to proceed if the debtor disputes owing the amount. In order to stop a collector from contacting the debtor, certain actions should be taken. The debtor can request the collector to stop making contact by sending a letter by certified mail and return receipt requested. A copy of the letter should be retained in the debtor's records. Upon receipt of the letter, the collector can only contact such person again to inform the debtor that there will be no further contact or to let the debtor know that they or the creditor intend to take a specific action, like filing a lawsuit. Although this may stop the creditor contacting the debtor, it does not discharge the debt.
Posted by: jed
on Mar 23, 2010
On May 22, 2009 the Credit Card Accountability Responsibility and Disclosure Act of 2009 (the Act) was signed into law by President Obama. It became effective on February 22, 2010 and is intended to protect consumers from changes to the terms of their credit cards that can destroy an unsuspecting consumer who was unaware.
The Act provides for the following dramatic changes:
Posted by: jed
on Mar 23, 2010
Can I Be Fired If I File for Bankruptcy?
Posted by: eric
on Mar 17, 2010
One common problem that our office sees regularly revolves around a lease or mortgage that the client really can’t afford anymore. Bankruptcy often provides a solution for people who feel trapped. The client is often concerned about being able to find a place to live and are afraid that they have no choice but to assume (or keep) their current lease or reaffirm a mortgage that they could not afford.
Consider this recent case that we handled: Our client lived in a rented apartment, and her lease ran another six (6) months. Our client wanted to find a cheaper place to live, however, she was concerned that she may not be eligible to sign a new lease after filing for bankruptcy. She asked for our advice about what to do.
