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Attorney Cannot Keep Ferrari & MG from Debtor Client

January 22, 2017

Background:

  • Attorney was a debtor’s business attorney.
  • There was a long-standing personal relationship between the debtor and the attorney.
  • Even though the debtor had no funds to pay the Attorney, the attorney continued to provide legal services for the debtor which resulted in $70,000.00 outstanding.
  • Debtor filed for Chapter 7.

Continue reading…

Used Car Dealer False Statements – Deceived Bank

January 7, 2017

Honesty includes disclosure of all facts –Used Car Dealer Misrepresents Intent to Bank.

Background:

  • Debtor owned a used car dealership and began to have financial problems with his business debts.
  • Debtor using an auction sale contract purchased a 2007 Mercedes-Benz for $19K.
  • Car had a book value of $30K
  • Debtor represented that the car was purchased for a personal vehicle and approached the bank for a loan.

Continue reading…

Dining Out – Effect on 2017 Budgets and Waistlines

dining-outDecember 13, 2016

I read something interesting today:   Dining out is the No. 1 item that Americans blow their budgets on, according to the Principal Financial Group’s annual Financial Well Being Index, which was released in December 2016. The company surveyed more than 1,100 employed American adults.

Besides your Budget – eating out has these effects:

  • tend to consume 200 more calories than when they eat at home
  • eat more or eat higher calorie foods
  • obesity and higher body fat

Continue reading…

Discharging of Student Loans – 46 yr. old Pilot – Denied

plane-crashingDischarging of Student Loans – 46 year old Pilot – Denied

I have covered before the Brunner test, to determine if you can meet the undue hardship requirement for student loan discharge.   Here we have a case wherein a pilot is seeking the court to discharge his student loans. Continue reading…

Tenant’s Rights in the Foreclosure Process

November 28, 2016tenant

I receive many calls from tenants as well as landlords who own/rent a residential property related to the foreclosure process and how it affects rental payments..

A tenant must continue to pay rent to their landlord or to the receiver if one is appointed until the ownership changes.   Tenants should keep receipts of all money that is paid to their landlord not only to avoid eviction but also to provide to the new owner of the property.

If tenants do not pay rent, a landlord can evict a tenant.   However, the landlord must go through the Court in the normal court process.

Pending foreclosure action alone is not grounds for eviction to remove a bona fide tenant.  Tenants have rights whether there is written lease with the landlord or not.

Tenants who want to stay in the home that is in foreclosure can only be removed through the Court process.

However, since the foreclosure process may take some time, it is important for tenants to continue to pay rent.   Landlords can evict tenants even if the house is in the foreclosure process.

Sheriff’s sale notices are listed in the County Sherriff’s websites so you can always see when the sheriff’s sale is to take place.

What is Median Income in NJ? – Highest Compared to Other States

njNovember 15, 2016

Median income is the amount that divides the income distribution into two equal groups:

  1. Half having income above that amount
  2. Half having income below that amount.

New Jersey has the highest median income in all 50 states.

  • 1 earner = $62,149
  • Family Size: *
    • 2 = $74,367
    • 3 = $92,489
    • 4 = $113,455

 Add $8,400 for each individual in excess of 4.

 Median income is an important factor that your Bankruptcy attorney will use to work with you in determining not only the type of bankruptcy but also your eligibility.

If you  would like to see the complete chart, go to:   https://www.justice.gov/ust/eo/bapcpa/20161101/bci_data/median_income_table.htm

Law Firm Called Sloppy and Arrogant – $50K+ punitive damages to Debtor

November 7, 2016Shame on You

Law firm that sued Debtor must pay $50,000 in punitive damages, plus.

Details of Case:

  • Debtor filed bankruptcy.
  • Debtor was a basketball coach and was sued by a former player for sexual contact.
  • Law Firm who represented player dismissed their law suit against the coach.
  • Law Firm was notified of the Bankruptcy.
  • One year later, the Law Firm filed a Complaint in State Court for damages from the Debtor.
  • Debtor (pro se) filed an Answer to the Complaint and copied the Law Firm.
  • Law Firm claimed they did not receive the answer since it was sent to the wrong address.
  • Debtor mailed the notice to the lead associate working on the case.

Continue reading…

Discharging of Student Loans – Brunner Test: Undue Hardship

October 30, 2016

Student Loan CapSuccessfully getting student loans discharged in a Chapter 7 bankruptcy case is very difficult. For the most part, you must show that repayment would cause you “undue hardship.”   Most courts us a 3-factor test, called the Brunner test, to determine if you can meet the undue hardship requirement for student loan discharge.

What is the Brunner Test?

There are 3 factors or prongs that must be met: Continue reading…

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