Brent W. Davis & Associates

Bankruptcy and Foreclosure Attorney

Free Consultation: Call (205) 989-1919

Alabama Bankruptcy Judge Punishes Creditor For Violation Of Discharge Injunction

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Alabama Bankruptcy Judge Punishes Creditor For Violation Of Discharge Injunction – Filing proof of claim in subsequent case:

In a recent Appeal to the US District Court, the Court Affirmed that Greenpoint Credit, LLC was rightfully punished for filing a claim that had been discharged in a earlier Chapter 7 bankruptcy case.   Alabama residents don’t win very often in Federal Court against big mortgage companies – except in Bankruptcy Court!   This powerful legal tool will eliminate your debts.  If your creditors try to collect the debt after the bankruptcy is discharged, you are protected.  Be sure to contact your Chapter 7 Bankruptcy lawyer to report ANY collection actions by bankrupted creditors.  As you can see here, creditors can be made to pay dearly for their illegal acts.

The Judge ruled that Greenpoint Credit, LLC had filed an old discharged mortgage deficiency claim in a new bankruptcy.  Greenpoint Credit, LLC was Ordered to pay $25,000.00 in emotional distress to the injured Alabama resident.  Damages for Emotional Distress are rarely granted in Alabama.  Greenpoint was also assessed an additional $50,000.00 in sanctions!  

Affirming In re McLean, 2013 WL 5963358 (Bankr. M.D. Ala. Nov. 8, 2013), McLean v. Greenpoint Credit LLC, — B.R. —-, 2014

WL 4207629 (M.D. Ala. Aug. 25, 2014), appeal filed, Green Point Credit v. McLean, Case

No. 14-14002 (11th Cir. filed Sept. 4, 2014) (case no. 1:13-cv-925).

Good reading: Inside the Dark, Lucrative World of Consumer Debt Collection on nytimes.com

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debt underworld collector crime

“Bad Paper: Chasing Debt From Wall Street to the Underworld” by Jake Halpern

     This article was great reading for a consumer bankruptcy lawyer in Alabama.   You will love the descriptions of the thugs and underhanded collection agencies that buy bad debts that were charged off by the original creditors-some of the debts were discharged in Chapter 7 or Chapter 13 bankruptcy years before.   Some shady collectors will threaten criminal prosecution of their demands for payment are not obeyed.   Too often the collector cannot produce any documentation of the debt other than the victim’s name, address, account number and balance.  

     Unscrupulous debt collection is not just something that happens in big cities.   Good people in Shelby and Jefferson County fall victim every day.  I can use Federal bankruptcy law to protect you and your loved ones from this collector abuse.  Get a fresh start.  Call anytime for a free consultation.  205-989-1919

 

 

 

For the full article go to http://goo.gl/KRlXss

Right Here in Alabama, the Number of People Filing Bankruptcy Continues to Fall.

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     Right here in Alabama, the number of people filing bankruptcy continues to fall.  The trend started in 2010.  It is the same all over America.  However, the number of consumers that have debt in collection has not shown a similar movement.   In  fact, accounts in collection have risen over the same period.  The New York Federal Reserve data shows that the number  is unchanged since 2010.

     The cause may be that the Great Recession of 2008 has prevented consumers from getting credit.   There may be less debt that can be discharged in bankruptcy.  About one-third of all households cannot get mortgages or have been denied credit in the past year.   Budgets are made tighter by heavy student loan debt.  This debt cannot generally be discharged in bankruptcy and with a bad economy and lower wages, the irresistible force is coming nearer to the immovable object and Americans are in between them.

     You do have options to escape or to relive some of that pressure.   Debts that cannot be discharged in Chapter 7 bankruptcy can be managed in Chapter 13 .  Debts can be reduced and restructured to make room in the family budget.   Car loan interest and payments can be drastically reduced.  Unsecured debts, like medical bills or credit cards or payday loans can be stripped of all interest and paid pennies on the dollar.  We offer free consultations.  Please contact us now to start a new tomorrow.  205-989-1919

The Means Test is a Paper Tiger for most bankruptcy filers

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Means Test is a Paper Tiger for most bankruptcy filers

Since 2005, bankruptcy filers have been required to pass a “Means Test” to qualify for a Chapter 7 bankruptcy debt discharge.  http://goo.gl/hNjjzv  Basically, the Means Test is a formula that determines whether the Court should divert your chapter 7 bankruptcy case to a chapter 13 debt repayment plan.  This sounds much more scary in theory than it turns out to be in practice.   Only a tiny fraction of bankruptcy filers “fail” the Means Test.   This is why bankruptcy lawyers call the Means Test a Paper Tiger; it’s only scary until you look at it closely  Lawyers can accurately predict who will and would not pass the Menas Test, long before the bankruptcy case is ever filed.  Call for your free consultation: 205-989-1919. 

 

Home “Short Sales” on underwater mortgages

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Since 2008, some homeowners have seen their home’s market value fall below their mortgage balances.  Many have found that they now owe tens of thousands of dollars more to the mortgage company than their home is worth. What can you do to protect yourself?

“Short Sale” is a real estate term that has entered our everyday language in recent years. A short sale is done when the market value of the home is less than the amount owed to the mortgage lender.  The mortgage lender must agree to take less than they are owed on the house so that the seller give the buyer good title to the house.   Here is where things get complicated.  The seller makes legal promises and warranties to the buyer, whether the house is sold short or at a profit.  This means that the seller can both lose money and be liable to the buyer into the future. 

So, what happens after the short sale? [Read more…]

I just got sued by my credit card lender!

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They can’t take your money unless they sue you.  Credit cards are unsecured loans.  There is no car or House or TV to take back if you can’t pay the bill.  The credit card lender can easily get the Judge to rule for them and enter a judgment against you for the bill plus their lawyer fees and costs.  They bring a copy of every credit card purchase you have ever made to show as evidence to the Judge.

In Alabama, the judgment allows the credit card lenders to take money out of your checking or savings account.  They can garnish your paycheck. This means that your employer is Ordered to take twenty-five cents of every doallar you earn and send it to the credit card lender that got the judgment against you.  If you own land they use the judgment to ask the Judge to put a lein on your home.  They get 1% interest every month that is added until the judgement is paid in full. [Read more…]

Should Grandma file Bankruptcy?

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Many of us hope to leave our family homestead and heirlooms to our children.  The problem these days is that there may be so much debt that creditors would take it all! Bankruptcy can prevent liens and judgments against the title to the home and preserve equity that can be passed on to our loved ones. 

When considering an estate plan or a last will and testament, it is wise to consult a Wills and Estates lawyer AND an experienced Bankruptcy lawyer, if the estate would be overburdened with debt.  Planning now can preserve your gifts to your family later.

 

Lien Stripping in Bankruptcy…Can it be done?

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Last Friday I attended a useful and scholarly Continuing Legal Education seminar hosted by the Birmingham Bar Assoc. Local attorney Robert C. Keller spoke for an hour on Automatic Stay Violations and on Lien Stripping in Chapter 13. He did a good job of making the topics clear and relevant to consumer bankruptcy practice. His materials were well researched. I will be scanning it into the research folder.

Missed mortgage payments

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When missed mortgage payments grow out of control, the home can be saved if a chapter 13 Federal Court protected repayment plan is filed BEFORE the foreclosure sale is held. This will also protect the homeowner from other creditors and restructure those debts.

Once you are protected by chapter 13, be aware that your mortgage escrow payments may rise temporarily, so that the taxes can be caught up. All letters from the mortgage company or from the Court should be opened as soon as they come in the mail because the time to act can be very short.

Brent will meet with you personally at your free consultation.

Consult Brent

Foreclosure – how to avoid it

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You have the power to stand up to the big mortgage companies.  

Did you know that the Founding Fathers of the United States of America specifically wrote your bankruptcy protections into our Constitution more than 230 years ago?  It’s true.  You can use a Federal Court protected debt repayment plan to stop home foreclosure, pay back what is behind on your mortgage, keep your car and other assets.  

What to do with your Debts

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Will I lose my house and car and the shirt off my back if I file for Chapter 7 Bankruptcy?

No, most people who are up to date on house and car payments keep those debts and keep paying for them. State laws protect your clothes amd books and heirlooms and other household goods from being taken. You just lose the debt that isn’t working for you.

Contact Bankruptcy Lawyer  Brent W. Davis

Protection from Creditors

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You can get protection from creditors and pay them back under the protection of the Federal Courts without filing Chapter 7 bankruptcy.  Many people qualify to pay pennies on the dollar.  Come by for a free evaluation by Mr. Davis  (not a legal secretary, like the big firms)!

Come in for a free hour of legal analysis

Brent W. Davis

New Location

Birmingham
Indian Springs Village

Brent W. Davis & Associates, LLC
2473 Valleydale Road, Suite B
Indian Springs Village AL 35244-2017

Phone: (205) 989-1919

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Mailing Address:

Post Office Box 1808
Pelham  AL 35124-5808

Brent W. Davis, L.L.C. serves clients throughout Alabama, including Birmingham, Pelham, Columbiana, Helena, Hoover, Oneonta, Bessemer, Mountain Brook, Alabaster, Calera, Springville, Remlap, Montevallo, Chelsea, Harpersville, Inverness, Jefferson County, Blount County, and Shelby County.