S is for Scared: Meeting Of Creditors

So, you filed bankruptcy and have received your commencement notice from the court that includes, among other things, the date, time and place of your Meeting of Creditors.

For many of my clients, the name conjures up thoughts from a horror movie, only worse because instead of watching it on the big screen, you have suddenly been thrust into, and made a part of, the movie.

"Meeting of Creditors"; that's really a bad name, but it is what the bankruptcy code has given it. So, why is it a bad name? Because it is rare that creditors show up. Certainly they are invited when they receive the commencement notice of your case (Form B9A). Yes, this is the same form you received in the mail. But in reality, there is seldom any reason for creditors to show up.

So, naturally you ask, for the times creditors show up, why do they show up? Good question. The answer may not be very straight forward, because obviously there could be as many different reasons as there are creditors. However, in the past I have seen creditors show up for several reasons, which can for the most part be categorized as follows:

1. The creditor is unsophisticated, and simply does not know he, she, or it does not need to be there.
2. The creditor is not clear as to your intentions are regarding a secured asset, and simply wants a clarification as to what your intentions are.
3. The creditor suspects fraud, or the hiding of assets.
4. The creditor is upset, and has hired an attorney to attend the meeting of creditors to ask questions, sometimes to try to determine if there are any grounds for the court to deny the granting of a discharge.
   

OK, so by now I suspect you are really nervous about attending the meeting of creditors. Well, you can relax, as long as the documents supplied to the court are truthful and you have been represented by an attorney, you really do not have anything to worry about.

You should expect the trustee to ask you hard questions (similar to the ones I asked in my office during consultation). They will most likely include some of the following:

1. 
   Please state your name, address, and telephone number for the record.
2. What is your work number?
3. Did you receive and read the information sheet from the US Trustee's office?
4. Did you read the documents your attorney prepared for you before signing?
5. Are they truthful and correct?
6. When you spoke with me on the phone, did you answer all my questions truthfully?
7. Are there any changes that need to be made?
8. Is there anybody that owes you money?
9. Is there anybody you could bring a cause of action against for damages for anything, including a personal injury?
10. Have you ever received an inheritance?
11. Have you received your tax refund?
12. How much was it, and when did you receive it?
13. What did you do with it? (or, Do not spend the refund after receiving it before you contact my office [referring to the trustee's office]).
    
14. Most of all, remember you are placed under oath. Make sure all you answers are truthful. Should you get caught lying in federal court, it can definitely ruin your day!
    

There may also be some questions about schedules filed with the court.

I know what your thinking, hard stuff; yeh, right ;)
 

That's it. It is usually uneventful, and that is part of the reason you hired an attorney to help you with the bankruptcy, to try to make sure it stays that way.
 

If you are still nervous, just show up about 20 minutes early to sit in the room and listen to questions the trustee is asking other debtors. Most likely, your questions will be similar.

For the Middle District of Florida, Jacksonville Division, remember a few things:

1) take any documents with you the trustee asked you to bring (if any);

2) make sure you have your government issued Photo ID (such as a Driver License) and Social Security card; and

3) leave you cell phone in your car, as they are not allowed in the courthouse.

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Other notable terms starting with S:

Schedules and Statements Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell

Security Interest Jay S. Fleischman

Spouse Cleveland Bankruptcy Attorney Bill Balena

Statement of Intention Metro Richmond Consumer and Bankruptcy Attorney, Mitchell Goldstein

Statutory Lien Dorota Trzeciecka Bankruptcy Blog

Step Plan Kurt O'Keefe Michigan bankruptcy lawyer

Strip Bay Area bankruptcy lawyer Cathy Moran

Student Loans Colorado Springs Bankruptcy Lawyer Bob Doig

Student Loans Hawaii Bankruptcy Lawyer, Stuart T. Ing

Stuff WilksLaw, - DC Metro

Surrender Metro Richmond Consumer and Bankruptcy Attorney, Mitchell Goldstein

F is for FREE Annual Credit Report

"F" is for FREE. What is free without lots of adds trying to solicit your business; how about a free credit report. Have you ever wondered why they would go to the expense of advertising something for FREE?

Well, I imagine you have guessed the correct answer. It's because its not really free. You have to sign up for a service by giving them account or credit card information. So, how is their service free. Well, some services allow you to cancel your agreement within a given number of days, and be charged nothing. So, it's really not free if you have to do extra work to get it.

The good news is, there actually is a source for getting a free credit report once every 12 months. It is from annualcreditreport.com. According to the Federal Trade Commission, annualcreditreport.com is the only authorized source to get your free annual credit report under federal law. You can go to their website or call 877-322-8228. You can also order by mail by filling out the Annual Credit Report Request Form and mailing it to

Annual Credit Report Request Service

P.O. Box 105281

Atlanta, GA 30348-5281.

The following is taken from the FTC website.

What is AnnualCreditReport.com?

AnnualCreditReport.com is the ONLY authorized source for the free annual credit report that's yours by law. The Fair Credit Reporting Act guarantees you access to your credit report for free from each of the three nationwide credit reporting companies — Experian, Equifax, and TransUnion — every 12 months. The Federal Trade Commission has received complaints from consumers who thought they were ordering their free annual credit report, and yet couldn't get it without paying fees or buying other services. TV ads, email offers, or online search results may tout "free" credit reports, but there is only one authorized source for a truly free credit report.

I’ve seen a box at the top of some websites saying:

"You have the right to a free credit report from AnnualCreditReport.com or 877-322-8228, the ONLY authorized source under federal law."

What’s this about?

A new law requires commercial websites that say they offer free credit reports to include a box letting you know you can get a free credit report at www.AnnualCreditReport.com. Click on the link to www.AnnualCreditReport.com, the only place to get the free report that's yours by law.

Many companies claim to offer free credit reports – and some do. But others give you a report only if you buy other products or services. Still others say they’re giving you a “free” report and then bill you for services you have to cancel. If you go to www.AnnualCreditReport.com and follow the prompts for your free credit report, you can be sure the reports you get really are free.

How do I request my free credit report?

You can request your free report online, by phone or by mail. Visit AnnualCreditReport.com, call 1-877-322-8228, or fill out the Annual Credit Report Request form and mail it to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.  No matter how you request your report, you have the option to request all three reports at once or to order one report at a time.  By requesting the reports separately, you can monitor your credit more frequently throughout the year.  

Why should I request my credit report?

Because the information in your credit report is used to evaluate your applications for credit, insurance, employment, and renting a home, you should be sure the information is accurate and up-to-date.  In addition, monitoring your credit is one of the best ways to spot identity theft.  Check your credit report at least once a year to correct errors and detect unauthorized activity. 

What should I look for when I review my credit report?

If you see accounts you don’t recognize or information that is inaccurate, contact the credit reporting agency and the information provider.  For more information, read the FTC’s tips on how to dispute credit errors. 
If you suspect identity theft, you may need to place a fraud alert on your credit report, close compromised accounts, file a complaint with the FTC, or file a police report.  Start by visiting the FTC’s identity theft website.

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Other notable "F is for..." links are as follows:

Failure Begets Success    Philadelphia Suburban Bankruptcy Lawyer, Chris Carr MBA   

Family Farmer/Fisherman    Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell   

Financial Fatigue    Cleveland Area Bankruptcy Lawyer, Bill Balena   

First    Northern California Bankruptcy Lawyer, Cathy Moran   

Foreclosure    Colorado Springs Bankruptcy Attorney Bob Doig   

Foreclosure    Kauai Bankruptcy Attorney, Stuart Ing   

Foreclosure    Jacksonville Bankruptcy Attorney, Monica D. Shepard   

Forgiveness of Debt    Los Angeles Bankruptcy Attorney, Mark J. Markus   

Forms    Jacksonville, Florida Bankruptcy Attorney, J. Dinkins G. Grange   

Fraud    Philadelphia Bankruptcy Attorney, Kim Coleman   

Fraudulent Transfer    Allen Park, Michigan Bankruptcy Attorney, Christopher McAvoy   

Fraudulent Transfer    San Francisco Bankruptcy Attorney, Jeena Cho   

Free Consultation    Wisconsin Bankruptcy Lawyer, Bret Nason   

Fresh Start    Marin County Bankruptcy Attorney, Catherine Eranthe   

Fresh Start    Metro Richmond Consumer and Bankruptcy Attorney, Mitchell Goldstein   

Fresh start    Daniel J. Winter, Chicago Bankruptcy Lawyer   

Future Flow Agreement    New York Bankruptcy Lawyer, Jay S. Fleischman   

Free Consultation    Livonia, Michigan Bankruptcy Attorney, Peter Behrmann   

Bankruptcy Attorney Fees    Michigan Bankruptcy Attorney Kurt OKeefe   

Filing Requirements    Miami Bankruptcy Attorney, Dorota Trzeciecka    

P is for Payment: Behind On Car Payments After Filing Chapter 7

Yes, "P" is for Payment.  So, you just filed a Chapter 7 bankruptcy, and at the time of filing, you were current on your payments on your vehicle. You intend to reaffirm (keep) the vehicle. But now, after filing and before your discharge, you have become late on a payment. How will this effect you?

First, when presented with this question, the number one concern usually centers around whether the creditor can repossess the vehicle. The short answer is “That Depends”. When you file bankruptcy, and automatic stay is put in place preventing any collection efforts until one of several things happen.

First, if the case is dismissed, the automatic stay is lifted; that is to say, the creditor can commence, or continue, collection efforts including the repossession of the vehicle. If your case is dismissed, you are no longer in bankruptcy, therefore, you are no longer afforded the protections of bankruptcy. Depending you the circumstances surrounding your dismissal, you may have to wait before you can refile.

Secondly, you are suppose to perform your intention (reaffirm, surrender, or redeem) within 30 days after the date set for your meeting of creditors, also known as the 341 meeting. If you fail to perform your stated intention, then the creditor can go after the asset. However, from a practical standpoint, the creditor may wish to seek permission from the court before going after the vehicle.

If your initial intention regarding the vehicle is to reaffirm it, you may want to consider if this is really in your best interest. If the payments get behind after you have signed and filed the statement of intentions, and you have been granted a discharge, the creditor can repossess the vehicle, and go after you for a deficiency balance the same as if you had not filed bankruptcy. The difference is, it may be a while before bankruptcy can help you again.
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Other notable sites for "P is for ...":

Pay Advice    New York Bankruptcy Lawyer, Jay S. Fleischman  

Phone Call    Cleveland Bankruptcy Attorney, Bill Balena   

Plan    Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell

Preference    Maui Bankruptcy Attorney, BankruptcyHI.com   

Preferences    Colorado Springs Bankruptcy Attorney Bob Doig   

Pride    Southgate, Michigan Bankruptcy Lawyer, Christopher McAvoy   

Property of the Estate    Wisconsin Bankruptcy Lawyer, Bret Nason   

Privacy    Metro Richmond Consumer and Bankruptcy Attorney, Mitchell Goldstein   

Also (URLs not available):

Prior Bankruptcy, Will it be a problem?    Philadelphia Suburban Bankruptcy Lawyer, Chris Carr

and

Priority Debt    San Mateo Bankruptcy Lawyer, Jeff Curl   

N is for Negative Notice: Local Rule 2002-4, FLMB

UPDATE - Revised 8/3/2020
The Court REVISES its Permissive Use of Negative Notice List and Accompanying Orders List on a regular basis. The latest revised list may be viewed on the Court's website or by clicking here.
 

                                                                                 Negative Notice

Yes, N is for Negative Notice.  I realize this page is really catering to attorneys where I practice, and as such, may not be very useful to others.  This page deals with procedural matters within in the Middle District of Florida only.  

The following is taken from the FLMB Newsletter, Volume 1, Issue 1, (No, not Willow Pond, as in the pic to the left) from Chief Judge Karen S. Jennemann.  This is a newsletter for the Middle District of Florida, and the following should not be used in other bankruptcy districts.  

 Local Rule 2002-4 provides for negative notice as permissible when filing certain pleadings in order to determine if a matter is contested. You must provide at least 21 days for responses unless the list provides otherwise. Check Local Rule 2002-4 for more details on how negative notice works in our district.

• NOTE: This list has been EXTENSIVELY REVISED.  See the latest posted updates at Negative Notice List.
  
  Should you have a question regarding the Negative Notice List, please feel free to contact me, or another bankruptcy attorney for advise.
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  Other links to the letter "N" are as follows:
  Naked    New York Bankruptcy Lawyer, Jay S. Fleischman    
  Never    Cleveland Bankruptcy Attorney William Balena
  No Asset    Metro Richmond Consumer and Bankruptcy Attorney, Mitchell Goldstein
  No Asset Report    Honolulu Bankruptcy Lawyer, Stuart T. Ing 
  Non-PMSI    Philadelphia Suburban Bankruptcy Lawyer, Chris Carr
  Nondischargeable    Northern California Bankruptcy Lawyer, Cathy Moran 
  Nondischargeable    Metro Richmond Consumer and Bankruptcy Attorney, Mitchell Goldstein
  Nondischargeable Debt    Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell
  Notice    Colorado Springs Bankruptcy Attorney Bob Doig
  Non-exempt Property    Miami Bankruptcy Attorney, Dorota Trzeciecka  
  Notice    Taylor, Michigan Bankruptcy Attorney, Chris McAvoy
  
  
  
  
  
  

The Principal Paydown Plan Hits a Snag

Please find following, a letter from Billy Brewer, the President of the National Association of Consumer Bankruptcy Attorneys concerning the Principal Paydown Plan.  Despite the efforts of many, the Federal Housing Finance Agency does not favor the plan.  Hopefully with the help of those favoring the plan, it will move forward, but just not as fast as what we had hoped for.

Thanks to the good work of so many members, NACBA’s Principal Paydown Plan to help underwater homeowners in chapter 13 bankruptcy avoid foreclosure, has been endorsed by a substantial number of Members of Congress who in turn have pushed for action by the Federal Housing Finance Agency (FHFA) to implement the plan.  In a series of private meetings and in letters to FHFA, Senators and Members of Congress have asked the FHFA to use its authority over Fannie Mae and Freddie Mac to require them to agree to the Principal Paydown Plan when proposed by a homeowner trying to save a home in chapter 13 bankruptcy.

Despite FHFA Director DeMarco’s initial positive comments about the Principal Paydown Plan, which he said struck him as “being responsible,” and a “credible way to address the crisis while recognizing various interests mortgaged properties,” he recently wrote to Congress informing them that the agency would not be implementing the Principal Paydown Plan.  FHFA concluded that few GSE borrowers have filed for chapter 13 bankruptcy and are underwater and therefore the proposal would not be all that helpful.  They did, however, commit to doing what they can to help eligible borrowers in bankruptcy get the HAMP modifications they qualify for.

While the FHFA response is disappointing and inadequate, and we believe wrong, we are gratified that the many Members of Congress who have pushed for this solution continue to be engaged and are looking for ways to get the Principal Paydown Plan implemented despite the FHFA’s position.  These Members of Congress recognize, as so many of us do, that the foreclosure crisis is not going away anytime soon and so long as it continues, the nation will not enjoy the kind of recovery that is needed to stabilize the economy and get people back to work.

We hope you will join the Board of Directors and Legislative Committee in continuing to get the word out about the Principal Paydown Plan and to seek support for it.  Our allies on and off Capitol Hill are committed to keeping up the push.  We take some comfort in knowing that NACBA was among the first to sound the bell more than five years ago about the impending foreclosure crisis and to propose a widely embraced solution that would have helped minimize the damage that has been done to the economy.  We were right then in proposing legislation to permit modification of mortgages in bankruptcy, an idea that again is gaining currency among policymakers, economists and others.  The Principal Paydown Plan was designed to achieve the same desired result without engaging the same level of opposition to changes to the bankruptcy code.  

We look forward to continuing to work with you to build support for the Principal Paydown Plan.  Please contact either of us if you have questions or comments.

Billy Brewer
President

Manage and Reduce Debt

Many people view bankruptcy as a quick and simple way to get out of overwhelming debt. While bankruptcy is, in fact, a solution for many, it should be viewed as a last case alternative. If there is a way to reduce your debt to a manageable level, or eliminate it altogether (yep, debt free), this is almost always favorable to filing bankruptcy.

Toward this end, how can one get a handle on reducing debt. First, one should be aware of scam artist. There are many organizations that will be happy to take your money with the promise of paying off your credit cards. It usually involves a company paying your credit cards, as they can work something out with the credit card company, as they collect your money. Of course, they collect their fees from your money before paying anything. The question I always have is, does the organization you are sending your money to, do something you can not do yourself?

Recently, I received a link to a CNN Money article about the reduction in the average credit card debt, and included a link to CNN Money. The article list 6 online solutions to debt relief. While they do have some drawbacks, they should be looked at. Best of all, they are free. You don't send them any money. They simply try to give you a game plan. Their web sites are as follows:

ReadyForZero

LearnVest

PayOff

CreditSesame

Bills.com

Mint.com

I DO NOT endorse any of these sites! They are simply here to show you some of the sites referenced by CNN Money.  Please beware the internet can be full of scams, viruses, malware, etc.

Traffic Crash, Bankruptcy, and Who Pays

So, you are in a traffic crash. Of course, as soon as you see one of those 800-ASK-???? adds, everyone that thinks the other person is at fault becomes injured. They call their local attorney, instead of an 800 number, and get signed up.

Well, how about the person that is at fault. It could very easily be someone that is having financial difficulties anyway. In fact, it could be you. So, if you file bankruptcy, will you still have to pay the other driver you injured? This questions should more appropriately be rephrased to ask if you file bankruptcy, will the injured party still be able to collect? While these questions look very similar, there actually is an important distinction I will hopefully make clear by the time you finish reading this blog.

First, we should look at the cause of the wreck. If you were impaired at the time of the crash, you may not be able to discharge this debt. According to the bankruptcy code, you will not discharge a debt “for willful and malicious injury by the debtor to another entity or to the property of another entity” (11 USC 523(a)(6)). So, if you were partaking in some recreational activities causing you to become impaired at the time of the crash, you could very well fall under this exception to the dischargeability of the debt.

Now, lets look at what happens if the debt is actually discharged. After you file the bankruptcy, you can expect the Plaintiff, or injured party, to hire an attorney and file a motion for relief from automatic stay. What the heck does this mean? It, for the most part, is the injured party, through their attorney, asking the bankruptcy court to allow him or her to proceed in state court outside of bankruptcy. If the relief is granted by the court, the order will generally limit the injured party to being able to proceed, but not collect directly from you, the debtor. They are limited to collecting from third parties, such as insurance companies.

So, if you file bankruptcy, an injured party may still be able to collect, but if you receive a discharge, the injured party may be limited to being able to collect from your insurance company.