tag:blogger.com,1999:blog-14977704031558882732024-03-14T03:35:59.720-04:00http://miami-bankruptcy-attorney.orgDedicated to Educating & Providing Consumers Lasting Relief from Debt.http://miami-bankruptcy-attorney.orghttp://www.blogger.com/profile/13324503480917359901noreply@blogger.comBlogger15125tag:blogger.com,1999:blog-1497770403155888273.post-36040828136357307802011-08-23T05:26:00.000-04:002011-08-22T15:44:34.020-04:00ONLY AN ATTORNEY CAN TACKLE ALL YOUR DEBT - http://miami-bankruptcy-attorney.org<div align="center" class="MsoNormal" style="margin: 0in 0in 10pt; text-align: center;"><a href="http://miami-bankruptcy-attorney.org/">http://miami-bankruptcy-attorney.org</a></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;"><b style="mso-bidi-font-weight: normal;">INTRODUCTION</b>:</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt; text-indent: 0.5in;"><span style="font-family: Calibri;">As an attorney licensed and practicing in Florida, New York and New Jersey, with a focus on Total Consumer Debt Relief, I am receiving more and more clients who were once signed into an alleged debt settlement program, hired a non attorney to address their debt or had already paid exorbitant amounts of money to such companies and their debt was NOT settled. Many of these practitioners fail to inform the debtor of their limitations, instead often taking loads of upfront money a violation of FTC and State Law, while not performing any service.<span style="mso-spacerun: yes;"> </span>I have also encountered many companies that promise to eliminate all debt. </span></div><div class="MsoNormal" style="margin: 0in 0in 10pt; text-indent: 0.5in;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Calibri;">THE PROBLEM:</span></b></div><div class="MsoNormal" style="margin: 0in 0in 10pt; text-indent: 0.5in;"><span style="font-family: Calibri;">These purported specialists fail to inform the debtor that they can only attempt to address unsecured debt such as credit cards and medical bill. A non attorney is legally prohibited from giving legal advice and most are not qualified to deal with secured debt like real estate mortgages or car loans.<span style="mso-spacerun: yes;"> </span>These companies also fail to inform the debtor that their "services" are merely a negotiation and not a legal one and that the creditor, credit card company or debt collection agency do not have any obligation to talk to the settlement company, let alone actually settle the debt for less than is owed. They don’t know or fail to inform the debtor about IRS tax consequences when a debt is forgiven or settled (over a certain Dollar amount). The last straw is when these debt settlement experts instruct the debtor to STOP PAYING on their debt. This raises very serious legal questions. Yet despite the many problems of addressing debt without a qualified attorney, many of these clandestine individuals and companies are signing up thousands of unassuming hard working Americans on a daily basis. </span></div><div class="MsoNormal" style="margin: 0in 0in 10pt; text-indent: 0.5in;"><span style="font-family: Calibri;">Debt settlement companies and non attorney settlement “specialists” do not work. <span style="mso-spacerun: yes;"> </span>Firstly, the debtors credit is already damaged at the point these companies start their game. Secondly, the negotiation can be achieved and handled by the debtor themselves without having to pay out money to get rid of debt. Something that is highly Counter-productive. Thirdly, the fees these companies charge are so outrageous the debtor is pushed into an even greater debt predicament.<span style="mso-spacerun: yes;"> </span>It's not as if the “expert” or debt settlement company has any formal training or qualifications to handle debt elimination and negotiation and there is no formal or legal template or system in existence.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Calibri;">THE SOLUTION:</span></b></div><div class="MsoNormal" style="margin: 0in 0in 10pt; text-indent: 0.5in;"><span style="font-family: Calibri;">The solution to REAL, LEGAL AND COMPLETE debt relief, is working through an attorney licensed and specializing in Total Consumer Debt Relief.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt; text-indent: 0.5in;"><span style="font-family: Calibri;">With an experienced attorney a debtor has the ability to view their financial hardship and debt in a total and comprehensive fashion and not in a bubble or vacuum of credit card debt alone. They are able to address and tackle the CAUSE and not the symptom and view and potentially address ALL DEBT both secured and unsecured including credit cards, medical bills, tax liens, car repossessions, mortgage debt, judgments, garnishments and foreclosures. This allows for a plan of action that is comprehensive and does not give the debtor temporary relief or a false sense of security while ignoring the 800 pound gorilla sitting right next door. The attorney will look at the debtors ENTIRE fiscal position and apply the best and most COMPREHENSIVE solution to tackle it ALL. The goal is to provide the debtor with LASTING relief and not mere sprinkles or pockets of hope. The debtor will be given the most appropriate legal solution to tackle ALL of their debt for once and for all. Perhaps the debts are so outrageous that the client is better suited for bankruptcy, thereby eliminating everything (barring some exceptions like IRS taxes, child support and alimony). Many debtors do not know that the Bankruptcy Code allows them to keep several valuable assets while simultaneously eliminating all debt. In fact, it is Federal Law, which says that a qualified Pension Plan such as a 401K or IRA and a debtors Life Insurance Policy, are off limits from any creditor and the Bankruptcy Court and Trustee. This means that when a debtor files for bankruptcy, provided they qualify in all other areas, they will eliminate all their debt secured and unsecured and still be able to keep their Pension Plan and Life Insurance Policy unscathed.<span style="mso-spacerun: yes;"> </span>Obviously bankruptcy is not an all encompassing solution and its ramifications need to be explored by the attorney on a case by case basis with the specific debtor’s situation in mind. Nevertheless, this illustrates just one example of a Comprehensive Debt Relief Solution and why a debtor is advised to seek out a qualified attorney to assist with their debt.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt; text-indent: 0.5in;"><span style="font-family: Calibri;">Even in the event the debtor is facing credit card debt exclusively and therefore perhaps may not be a good candidate for bankruptcy or cannot qualify for bankruptcy, a qualified attorney can accomplish the same settlement, if not better with more effective results, at far less cost, than any debt settlement expert or company will obtain.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt; text-indent: 0.5in;"><span style="font-family: Calibri;">The empirical data shows that the debt settlement companies "fees" including processing and "monthly" are so large and unfair that they put the debtor into an even deeper financial hole. An attorney must give a retainer agreement and layout in plain English up front, what he or she is doing for the client and how much it will cost. A good attorney will not even take money or start a case if they see that the client's desires are not legally possible or there is no legal defense. A qualified attorney will never make promises or guarantees about success, let alone promise total elimination or settlement. Certainly a qualified attorney will not give the debtor false hope and promise to eliminate any specific percentage of their debt. Unfortunately the debt settlement company’s standard protocol is to promise to eliminate 50 to even 90% of the debt. No one can make such promises especially when a creditor is not legally bound to listen, let alone negotiate. </span></div><div class="MsoNormal" style="margin: 0in 0in 10pt; text-indent: 0.5in;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Calibri;">ADDITIONAL PROBLEMS ARISE:</span></b></div><div class="MsoNormal" style="margin: 0in 0in 10pt; text-indent: 0.5in;"><span style="font-family: Calibri;">When a debtor hires a debt expert or company without hiring a qualified Debt Relief Attorney additional problems arise. There is also the all too common issue of multiple creditors and the inability of the expert or debt settlement company to get ALL of the debtors creditors into one all encompassing settlement. Worse yet, is the failure of the debt settlement company to contact the true and actual creditor making sure the party they are "negotiating" with is the true debt holder and not a third party collection agency without authorization to issue settlements, thus leaving the debtor open to collections down the road. What about the credit card companies and savvy banks who issue a settlement subject to reserving the right for a deficiency judgment? In English... “We will let you pay off the balance and reduce it by x% but we still reserve the legal right to sue you and come after you for the x% we temporarily forgave at a later time when you have income or assets.” Often such judgments stay in affect for 20 years and lead to wage garnishments, liens and writs of possession. A qualified attorney will make sure that any such settlement RELEASES the client from any future deficiency judgments. Most importantly the attorney has a huge trump card and bargaining chip. The credit card companies know that the attorney can eliminate their client's debt legally by assisting their client with bankruptcy or LITIGATING AND SUING the creditor, credit card company or debt collection agency. </span></div><div class="MsoNormal" style="margin: 0in 0in 10pt; text-indent: 0.5in;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Calibri;">LAWS PROTECTING DEBTORS</span></b></div><div class="MsoNormal" style="margin: 0in 0in 10pt; text-indent: 0.5in;"><span style="font-family: Calibri;">There are a myriad of different laws on the federal and state level that govern creditors, lenders credit card issuers and debt collectors and that can be used by a qualified attorney to find a breach of law and used to litigate on behalf of a debtor.<span style="mso-spacerun: yes;"> </span></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;"><u>Examples of the more common laws are</u>:</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">* The Truth in Lending Act. (TILA)</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">* State Unfair and Deceptive Acts and Practices. (UDAP)</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">* The Fair Credit Reporting Act. (FCRA)</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">* The Fair Credit Billing Act. (FCBA)</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">* As well as State Specific FDCPA laws. </span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 10pt; text-indent: 0.5in;"><span style="font-family: Calibri;">Dozens of additional statutes and laws exist designed to PROTECT THE CONSUMER and govern the creditors. One slip up on any of these laws and a competent attorney can litigate and sue the creditor for such a violation. Common examples of violations are a creditor or lender not offering the client the necessary notices of increases in their APR (annual percentage rate), charging unexplained late fees, or mailing statements and bills late. The potential violation list goes on and on.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Calibri;">SUMMARY</span></b></div><div class="MsoNormal" style="margin: 0in 0in 10pt; text-indent: 0.5in;"><span style="font-family: Calibri;">A debtor gets the best of all worlds and solutions with a qualified Consumer Debt Relief Attorney. He or she goes into battle with a myriad of armor and weapons and is ready to fight all debt at its root. The client has experienced and effective counsel at their side and the attorney is equipped and licensed to challenge ALL of the client's debt even if it means litigation. Sometimes such litigation can end up making money for the client in cases of restitution and punitive damages. Furthermore, by hiring an attorney to handle their debt, the debtor is not "losing" their opportunity for debt settlement when it comes to credit card debt. The attorney can and if appropriate will negotiate with the credit card issuers, provided it brings the same or better results at a fraction of the cost to the debtor and that all the legalities and ramifications of such a settlement are addressed, such as no deficiency judgments and explaining the IRS tax consequences. The attorney can drop the ultimate bomb and simply end it all on behalf of the debtor by painlessly and effectively filing bankruptcy if appropriate. (For another conversation as to when bankruptcy should be explored and employed - suffice as to say it must be explored on a case by case basis). Using a qualified Debt Relief Attorney to tackle your debts including credit cards is a superior and a more successful methodology to tackling debt versus signing with an unknown expert or debt settlement company, especially when creditors are not legally obligated to negotiate.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt; text-indent: 0.5in;"><span style="font-family: Calibri;">We are being bombarded on TV and RADIO about "magical" debt elimination programs or hearing and reading of genius debt settlement systems. BEWARE, there are many unscrupulous folks and companies out there praying on those in debt, promising illegal solutions and taking loads of the debtor’s hard earned money while doing nothing.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt; text-indent: 0.5in;"><span style="font-family: Calibri;">Are there legitimate settlement companies and players? Perhaps, but their systems are economically flawed since they ask the debtor to pay out even more money. </span></div><div class="MsoNormal" style="margin: 0in 0in 10pt; text-indent: 0.5in;"><span style="font-family: Calibri;">Thus, it is important that a debtor educate themselves about all available debt elimination options, the process, players, pros, cons and alternatives.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 10pt; text-indent: 0.5in;"><span style="font-family: Calibri;">Whichever way you slice it, debt is an ugly game and the faster and cheaper it takes to get out of it, the better. However, make sure the methods used and players engaged in them are legal and that you are not digging a deeper hole for yourself. Make your decisions on facts and law not emotion or based on cunning and false advertising.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt; text-indent: 0.5in;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 10pt; text-indent: 0.5in;"><span style="font-family: Calibri;">Know your rights and remember while debt is a stressful matter, there are multiple laws in place to 1) Protect you and 2) Offer recourse and even potential restitution.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">Consult with an attorney who knows how to use these laws and who will protect you. Any reasonable law firm should offer a free and comprehensive initial consultation.</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><span style="font-family: Calibri;">Good Luck!</span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
</div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="font-family: Calibri;">Authored By: <span style="mso-spacerun: yes;"> </span>Grant Phillips, Esq.<span style="mso-spacerun: yes;"> </span></span></i></b></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="font-family: Calibri;">Grant is a licensed attorney practicing in the states of FL, NY and NJ with a focus on Consumer Debt Relief. He often blogs and writes under the name miamidebtlawyer.com, his articles are educational, thought provoking, deliberate and address Total Debt Relief, Bankruptcy and Consumer Relief Topics. </span></i></b></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="font-family: Calibri;">For more visit <a href="http://miami-bankruptcy-attorney.org/">http://miami-bankruptcy-attorney.org</a></span></i></b></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
</div>http://miami-bankruptcy-attorney.orghttp://www.blogger.com/profile/13324503480917359901noreply@blogger.com0tag:blogger.com,1999:blog-1497770403155888273.post-84992818427426805302011-08-22T15:29:00.000-04:002011-08-22T15:44:03.152-04:00LAUGHTER - THE BEST MEDICINE. While Debt is very stressful and serious it shall pass. Try to have a laugh courtesy of "The Office."<div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.youtube.com/embed/O0cJ9Ktutcs?feature=player_embedded' frameborder='0'></iframe></div>http://miami-bankruptcy-attorney.orghttp://www.blogger.com/profile/13324503480917359901noreply@blogger.com0tag:blogger.com,1999:blog-1497770403155888273.post-91121546846501559052011-08-22T15:18:00.001-04:002011-08-22T15:43:04.342-04:00Bankruptcy Filings Rising with Unemployment<a href="http://miami-bankruptcy-attorney.org/">http://miami-bankruptcy-attorney.org</a><br />
<div><div>According to the National Bankruptcy Research Center, bankruptcy filings throughout America have risen continually since 2007. It was in 2007 that the United States tumbled into a deep recession. With unemployment figures flirting near 10% bankruptcy filing also rose in October.<br />
Currently 1 in every 175 American is filing for bankruptcy. According to the National Bankruptcy research centre October typically sees the highest filings of the year; the good news is that filings in October of this year were three percent lower than filings in October 2009.<br />
The data continues to show a domination of Chapter 7 filings filings; only 30% of the October filings sought relief under Chapter 13. In 2005 there was a big push in bankruptcy legislation to encourage consumers to choose Chapter 13 rather than Chapter 7.<br />
The States with the highest share of Chapter 13 filings remain concentrated in the Gulf Coast. Thus, 62% of filings this year in Louisiana have been under Chapter 13, with similarly high shares in Alabama (56%) and Texas (50%). For more see <a href="http://miami-bankruptcy-attorney.org/">http://miami-bankruptcy-attorney.org</a></div></div>http://miami-bankruptcy-attorney.orghttp://www.blogger.com/profile/13324503480917359901noreply@blogger.com0tag:blogger.com,1999:blog-1497770403155888273.post-34116195533316581712011-08-21T09:40:00.000-04:002011-08-22T15:43:35.908-04:00VIDEO ON BANKRUPTCY BASICS<a href="http://youtu.be/KU5UDYBAFSQ">http://youtu.be/KU5UDYBAFSQ</a><br />
<br />
HIT THE ABOVE LINK TO WATCH A SHORT VIDEO COURTESY OF publicresource.org ON BANKRUPTCY BASICS. FOR MORE SEE <a href="http://miami-bankruptcy-attorney.org/">http://miami-bankruptcy-attorney.org</a>http://miami-bankruptcy-attorney.orghttp://www.blogger.com/profile/13324503480917359901noreply@blogger.com0tag:blogger.com,1999:blog-1497770403155888273.post-52931436969736361412011-06-22T21:16:00.002-04:002011-08-22T15:26:49.565-04:00Walt Disney, Donald Trump (through companies owned by him), Ulysses S. Grant, Willie Nelson, Mark Twain, Larry King, and even Abraham Lincoln filed Bankruptcy.Bankruptcy brings up strong feelings. Many people don’t realize <strong><u>Bankruptcy is actually in the U.S. Constitution, and that Walt Disney, Donald Trump (through companies owned by him), Ulysses S. Grant, Willie Nelson, Mark Twain, Larry King, and even Abraham Lincoln filed Bankruptcy.</u></strong> In other words, if you need to file Bankruptcy, you’re in solid company. The people listed above ended up with major success after filing Bankruptcy.<br />
<br />
Bankruptcy gives you a chance to begin financially over. Some refer to it as a fresh start and keeps your creditors from tearing your life apart. Some economists even beleieve that US Bankruptcy laws are a major factor behind the American economy’s long-term strength. In much of Europe and Japan, recessions lingered for years and economic growth has been stymied because people and companies couldn’t get out from under their debts. That’s not to say Bankruptcy should be our first choice, but it should be a choice.<br />
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Bankruptcy is business decision or if you like a tool. If you are facing garnishments, lawsuits, and other collections, it benefits all of us if you get out from under that debt and back into activity with the U.S. economy. That’s why Bankruptcy laws exist. Dont overthink it! for more see <a href="http://miami-bankruptcy-attorney.org/">http://miami-bankruptcy-attorney.org</a>http://miami-bankruptcy-attorney.orghttp://www.blogger.com/profile/13324503480917359901noreply@blogger.com0tag:blogger.com,1999:blog-1497770403155888273.post-51481015938276902352011-06-22T20:56:00.000-04:002011-06-22T20:56:39.922-04:00HOME OWNER ASSOCIATION SUED IN CLASS ACTION FOR COLLECTION PRACTICE<h1 class="articlehed1">Class-action suit filed over HOA debt-collection practices<!-- end story-header --></h1><div class="article"><div class="inline"><div class="byline">By <cite>Steve Green</cite> </div><div class="bypubdate">13 June 2011</div></div>Legal headaches seem to be intensifying for Nevada homeowner associations and their collection agencies, with the filing Monday of another class-action lawsuit over HOA debt-collection practices.<br />
Attorneys for Benita Jones Ebel filed suit in U.S. District Court in Las Vegas against Nevada Association Services Inc. (NAS), claiming it’s been violating the federal Fair Debt Collection Practices Act by sending "dunning letters" that are "unfair and unconscionable" and invaded her privacy.<br />
Ebel in the lawsuit seeks to represent a class of people who received such letters over alleged debts resulting from unpaid HOA assessments.<br />
The suit specifically charges that in a Dec. 17 collection letter regarding an alleged debt to the Rancho Viejo HOA, NAS threatened to file a lien against Ebel’s home if the debt wasn’t paid within 10 days.<br />
This violated the law in that consumers have 30 days to dispute such debts, the lawsuit suggests.<br />
"As a result of defendant’s threat to record a notice of delinquent assessment lien, defendant threatened to take non-judicial action to effect … disablement of plaintiff’s property without the present right to do so," charged the suit, which was filed by attorneys with Cogburn Law Offices.<br />
David Stone, president of Nevada Association Services, said Monday his company complies with the debt collection law.<br />
"We will file the appropriate responsive pleading, and if this is found to be a frivolous lawsuit we will be seeking attorney's fees. We expect this claim to be adjudicated in our favor, as similar claims have been. We have been sued before and I expect more lawsuits. Plaintiffs are looking for a quick payday and this is not going to happen," Stone said.<br />
With the recession causing many homeowners to fall behind on paying HOA assessments, and vacant and foreclosed homes sometimes producing no revenue for HOAs, collection activity has picked up in recent years and controversies and lawsuits have followed.<br />
Numerous collection lawsuits are pending in state and federal court in Las Vegas and a massive complaint was filed last month with the state Real Estate Division against more than 500 Nevada homeowner associations.<br />
Yet another pending lawsuit, filed by a Bank of America subsidiary, claims HOAs have been trying to get the bank to pay for unauthorized attorney’s fees and collection costs related to assessments against foreclosed homes.</div>http://miami-bankruptcy-attorney.orghttp://www.blogger.com/profile/13324503480917359901noreply@blogger.com0tag:blogger.com,1999:blog-1497770403155888273.post-90962694201280906002011-02-18T17:17:00.000-05:002011-02-18T17:17:37.368-05:00Fannie Mae Fires South Florida Foreclosure Mill. Founding Partner Found in Contempt of Court By Miami Judge.<div id="partnerbannerblock"><div class="partnerbanner"><a href="http://m.pbpost.com/pbpost/index.htm"><img alt="Palm Beach Post" src="http://img.vrvm.com/media/render.htm?m=133542311&height=36&keepAspect=true" /></a> </div><div class="partnerbanner"> </div></div><div id="bannerad"></div><div id="contentblock"><div class="content bold"><strong><u>Lawyer held in contempt over 'fraud' in foreclosure filing</u></strong></div><div class="content bold"> </div><div class="content"><em>Kimberly MillerChristine Stapleton</em></div><div class="content italic"><em>Posted: 02/12/2011 4:36 PM</em></div><div class="content italic"> </div><div class="content" style="padding-bottom: 4px; padding-top: 4px;"> A day after federal mortgage giant Fannie Mae fired the prominent law firm of Ben-Ezra & Katz, a Miami judge found the firm's founding partner, Marc Ben-Ezra, in contempt of court for filing "sham" foreclosure documents and "wasting the court's time." </div><div class="content">On Thursday, Fannie Mae cited document "execution issues" as the reason it terminated the law firm. <br />
Ben-Ezra & Katz becomes the second south Florida law firm making a mass exodus from the foreclosure business. <br />
The Plantation law firm of David J. Stern began dumping thousands of its Fannie Mae cases late last year after evidence of robo-signing and other faulty documents became known. <br />
"It's a huge can of worms that is being opened up because of changes in law firms," said James Bonfiglio, a Boynton Beach attorney who represents homeowners. "This is the way it's going to go and it's going to be<a href="" name="display"> </a> a huge mess for the next couple of years." <br />
Miami-Dade Circuit Judge Maxine Cohen Lando expressed her displeasure Friday in a case that involved a property in Homestead with a $265,134 foreclosure judgment issued in July. <br />
Lando said the so-called original note and original mortgage were filed months after the bank said those documents were lost. <br />
"That in itself is a fraud upon the court," Lando wrote in an order to show cause as to why she should not hold Ben-Ezra & Katz attorneys in contempt. <br />
But, she added, the action "pales in comparison" to the fact that the mortgage and note are to a different property in Lehigh Acres, and that the documents are improperly signed and notarized. Lando said her verbal contempt finding on Friday would be followed by a written order. <br />
Although Marc Ben-Ezra, 44, was not the direct attorney handling the case, the homeowner's attorney Maria Mussari said the judge ordered the owner or head of the firm to appear. Ben-Ezra has no disciplinary history with the Florida Bar . <br />
The judge dismissed the foreclosure case and banned the lender from refiling it. <br />
In a statement late Thursday, the law firm acknowledged it had found "technical paperwork issues," but added that "there is no issue of whether the information in the affected files is correct. No homeowner has been hurt because of this." <br />
The firm said it was correcting the issues. "Fannie Mae did not give us the chance to execute that plan," the statement said. <br />
Fannie Mae set a deadline of Tuesday for servicers to find new firms to handle the Ben-Ezra & Katz cases. But finding replacement lawyers has proven to be frustrating. Statewide, Ben-Ezra & Katz has handled at least 18,000 cases, according to Legalprise, a West Palm Beach data analysis firm. <br />
After Fannie Mae cut ties with the Plantation-based firm of David J. Stern, the firm withdrew from thousands of cases. Today, its replacements often come to court complaining that Stern's office has not yet turned over files. Some of Stern's cases remain lawyer-less. No one knows who represents the lender. <br />
"Nobody shows up!" said Tom Ice, a Royal Palm Beach attorney whose firm has begun asking judges to dismiss lawyer-less cases. Last week Circuit Judge John Hoy dismissed one of them. Ice is waiting to see if any lawyer will refile the case. <br />
"It's absolute pandemonium," Ice said. </div></div>http://miami-bankruptcy-attorney.orghttp://www.blogger.com/profile/13324503480917359901noreply@blogger.com0tag:blogger.com,1999:blog-1497770403155888273.post-10581516434392931052011-01-19T13:36:00.002-05:002011-01-19T13:41:38.572-05:00US Bancorp and Wells Fargo & Co. lost a foreclosure case in Massachusetts' highest court last week<table border="1" cellpadding="7" cellspacing="0" dir="ltr" style="width: 720px;"><tbody>
<tr><td height="822" valign="top"><div align="left"></div><b><span style="color: blue; font-size: medium;"><span style="color: blue; font-size: medium;">BANKS LOSE IMPORTANT FORECLOSURE CASE </span></span></b><br />
<b><span style="color: blue; font-size: medium;"><span style="color: blue; font-size: medium;">IN MASSACHUSETTS HIGH COURT </span></span><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">US Bancorp and Wells Fargo & Co. </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">lost a foreclosure case </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">in Massachusetts' highest court last week that will likely make </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">foreclosures more difficult in Massachusetts, and could also </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">influence other courts in the clash between bank foreclosure practices </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">and state real estate law. </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><br />
The state Supreme Judicial Court upheld a judge's decision </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">holding that two foreclosures were invalid because the banks </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">did not prove they owned the mortgages. In both cases, </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">the mortgage was pooled with other mortgages into a </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">trust and converted into mortgage-backed securities </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">that can be bought and sold by investors. US Bank was </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">the trustee of one of the trusts, and Wells Fargo was the </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">trustee of the other trust. In both cases, the back-up </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">documentation provided to the court did not clearly </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">demonstrate that the mortgage had been transferred </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">to the trust. In fact, in both cases a written assignment </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">of the mortgage to the trust was executed and recorded </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">months after the completion of the foreclosure. The assignment </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">to Wells Fargo as trustee declared an effective date </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">that preceded the publication of the notice of sale </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">(one of the conditions for a foreclosure in Massachusetts)</span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"> and the foreclosure sale. In upholding the lower court's decision, </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">the court stated that "the judge did not err in concluding that </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">the securitization documents submitted by [US Bank and </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">Wells Fargo] failed to demonstrate that they were the holders </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">of the...mortgages...at the time of the publication of the </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">notices [of sale] and the sales. The judge, therefore, did not err</span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"> in rendering judgments against [US Bank and Wells Fargo]." </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">A judge in a concurring opinion added that he was surprised by</span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"> "the utter carelessness with which [US Bank and Wells Fargo]</span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"> documented the titles to their assets." One of the arguments </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">made by US Bank and Wells Fargo was that, because they held</span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"> the mortgage note, they had a sufficient financial interest in </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">the mortgage to allow them to foreclose. The law of many states</span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"> provides that the mortgage follows the note, so that if a party </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">has possession of the note, it is presumed to have good title </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">to the mortgage. Massachusetts, however, is not one of those states. </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">In Massachusetts, where a note has been assigned but there </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">is no written assignment of the mortgage underlying the note, </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">the assignment of the note does not carry with it the assignment </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">of the mortgage. Rather, the holder of the mortgage holds the </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">mortgage in trust for the purchaser of the note, who has an </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">equitable right to obtain an assignment of the mortgage, </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">which may be accomplished by filing an action in court and </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">obtaining an equitable order of assignment. In the absence </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">of a valid written assignment of a mortgage or a court order </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">of assignment (neither of which were provided by either </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">US Bank or Wells Fargo), the mortgage holder remains unchanged. </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">While it remains to be seen whether banks will be permitted </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">to get away with shoddy documentation in states where the law </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">is that the mortgage follows the note, this decision serves as a warning </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">to other banks and lenders to have their record keeping in place </span></span></span></b><br />
<b><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;"><span style="color: #473e4e; font-family: Trebuchet MS, Trebuchet MS; font-size: small;">before starting a foreclosure. <br />
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<tr><td height="59" valign="top"><div align="left"></div><span style="color: #473e4e; font-size: small;"><span style="color: #473e4e; font-size: small;">Authored by: </span></span><span style="color: #d57300; font-size: small;"><span style="color: #d57300; font-size: small;">Sherwin F. Root </span></span></td></tr>
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</tbody></table>http://miami-bankruptcy-attorney.orghttp://www.blogger.com/profile/13324503480917359901noreply@blogger.com0tag:blogger.com,1999:blog-1497770403155888273.post-52221659863267186642011-01-13T16:50:00.000-05:002011-01-13T16:50:03.620-05:00SANTA CRUZ, CA - A NEW HOT BED FOR CREDIT CARD LITIGATION.<h1 class="articleTitle" id="articleTitle">Middle-class families sued for unpaid credit card bills by lenders and debt buyers </h1><!--subtitle--><!--byline--><div class="articleByline" id="articleByline"><a class="articleByline" href="mailto:jgumz@santacruzsentinel.com?subject=San Jose Mercury News: Middle-class families sued for unpaid credit card bills by lenders and debt buyers">By JONDI GUMZ - Santa Cruz Sentinel</a></div><!--date--><div class="articleDate" id="articleDate">Posted: 01/12/2011 07:12:59 PM PST</div><!--secondary date--><div class="articleSecondaryDate" id="articleDate">Updated: 01/12/2011 07:15:40 PM PST</div><br />
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</script><span fd-id="default" fd-type="start"></span>SANTA CRUZ - Hundreds, and perhaps thousands, of local residents are being sued for debt collection in Santa Cruz Superior Court as lenders cope with credit-card losses they say are at historically high levels.<br />
Lawsuits are being filed not only by credit card companies but also by debt buyers that buy, for pennies on the dollar, accounts for which borrowers have stopped making payments.<br />
More of those being sued are middle-class families living on their credit cards due to the prolonged economic downturn. At the same time, they're being targeted by scammers offering to help reduce their debt.<br />
Last month, a federal judge in Texas declined to dismiss a lawsuit by Linda Almonte, who lost her job as a supervisor in the Chase credit card litigation department in November after questioning the sale of 23,000 delinquent accounts purportedly worth more $200 million to a third-party debt buyer. She contended more than 11,000 California accounts did not have proper proof of judgment in Chase's favor. The lawsuit has spawned a website, www.legalmorass.com, to track developments in the case.<br />
Asked about the Almonte case, Chase Card Services spokesman Paul Hartwick said, "We have thoroughly researched these allegations and are confident that the sales of these loans were handled properly."<br />
Balam Letona, a Santa Cruz attorney, said thousands of lawsuits have been filed in Santa Cruz County by debt buyers where Chase doesn't appear as a party but the original debt was from Chase.<br />
Henry Martin, an attorney with the Watsonville Law Center, is seeing middle-class families being sued by debt collectors and debt buyers.<br />
"They're suing you as if they have proof of the debt," he said. "It would nice if they had to prove their burden."<br />
When Lucia Paxton, 38, of Santa Cruz, a former credit union employee, was sued by debt buyer CCAH, a subsidiary of Collect America, to collect a $2,300 bill with J.C. Penney Co., she decided to fight it. <br />
She said the debt buyer presented an account number that did not match hers and then failed to present a signed copy of her credit contract. She contended the evidence that the company owned her debt was lacking. She lost her court challenge, and was ordered to pay $2,300 plus interest and court fees.<br />
automated COLLECTIONS<br />
Locally, debt-collection cases make up about 40 percent of civil cases, according to Judge Jeffrey Almquist.<br />
The Santa Cruz County Court's civil supervisor confirmed an increase in debt-collection cases, especially credit card debt, but did not provide specific numbers.<br />
Court spokesman Tim Newman said these filings have increased the workload and the time it takes to process the cases. <br />
In addition, attorney Alison Baker has seen an increase in people who have received a summons for a lawsuit involving debt. She mans the Self-Help Center in Watsonville, which provides information about options for responding to a lawsuit.<br />
A search of the court's "open access" database found Chase filed about 330 collections cases in 2010 compared to 130 in 2007. Citibank filed about 350 cases in 2010, compared to 50 in 2007. Debt collector CACH, based in Denver, filed 50 in 2010 compared to 13 in 2007.<br />
Last year, Feb. 22 was an especially busy day for Citibank, which filed 22 lawsuits on one day.<br />
The increase in activity is due in part to changes in the way debts are collected, thanks to computer software that automates the process, and partly due to the hard times in which consumers are unemployed or making less money.<br />
"We use litigation on a select basis," said Hartwick, adding, "Credit-card losses and delinquency rates have been at or above historically high levels, and that has resulted in a higher number of debt-collection lawsuits."<br />
Another factor increasing lawsuits, he said, is debt-settlement companies advising people to stop making payments.<br />
Hartwick said Chase is "committed to working with customers who are experiencing serious financial difficulty" but will not work with debt-settlement companies because of concerns cited by the Federal Trade Commission. He said Chase tries to reach customers "multiple times by phone and letter to offer assistance" and may reduce interest rates, waive late and over-limit fees, and extend the term of repayment.<br />
Martin hasn't seen many interest rate concessions.<br />
"If you're charging 28 percent, how are you trying to work it out?" he asked. "They're making record profits when everyone else's real income is declining."<br />
consumer OPTIONS<br />
Those who are sued over a debt have four choices: Answer the complaint within 30 days, do not respond, file for bankruptcy or settle.<br />
Almquist said most cases end with a "default judgment." That gives the creditors the rights to garnish up to 25 percent of the debtor's wages or apply to withdraw money from the debtor's bank account.<br />
Some cases are listed as "vacated," which can mean the debtor paid the debt, reached an agreement on a payment plan or filed for bankruptcy.<br />
Almquist recalled one case where he stopped collections on a borrower who contended other people in his house ran up a tab on his credit card. <br />
In another, a Watsonville man who claimed his brother-in-law used his credit card to charge $2,500 at an appliance store sued the collection agencies after the credit card company sent it to collection; the case ended in a $500,000 settlement for the local man. <br />
Those are the exceptions. Generally, people sued for debt-collection do not fight it, according to Almquist. <br />
"Mostly they don't file an answer," he said. "More would be contested if there were malfeasance."<br />
Martin contends cost is a big factor, too. <br />
"Most people in this situation can't afford an attorney to defend the case," he said.<br />
Answering a complaint costs $225 to $395, unless the borrower qualifies as low-income and successfully applies for a waiver.<br />
Martin noted the borrower must respond to questions during the "discovery" process where "a debt collector with an attorney has an advantage" over someone who represents himself.<br />
He urged borrowers to seek help from a HUD-certified counselor such as SurePath, which also does free debt counseling, rather than paying for that service.<br />
"Your success rate is going to be just as good as a service you pay for," he said.<br />
<br />
WHERE TO FIND HELP<br />
A debtor served a summons for a debt-collection lawsuit has 30 days to file an answer with the court. Here are places to go for information on how to respond:<br />
Superior Court Self Help Center, in the Watsonville Court building, 1 Second St., Room 301, Watsonville. Attorney Alison Baker provides rules of the court, procedural information and forms to defendants and plaintiffs on a first-come, first-served basis from 8:30 to 11:30 a.m. Tuesdays and Thursdays. She does not provide legal advice.<br />
Santa Cruz County Law Library, basement of County Governmental Center, 701 Ocean St., Santa Cruz: No staffing but information packets are available. <br />
Small claims hot line 1:30-4 p.m. Tuesdays: 786-7370. Attorney Alison Baker will answer questions on procedures but not provide legal advice.<br />
Sure Path, a nonprofit HUD-approved housing counseling agency with an office in Watsonville, offers free counseling on credit. For information, call toll-free (877) 615-SURE (7873).<br />
Watsonville Law Center, a nonprofit, offers free legal services to low-income individuals. For information, call 722-2845.<br />
Consumer advocate Bud Hibbs, based in Texas, provides information on the Fair Debt Collection Practices Act at www.budhibbs.com.<span fd-id="default" fd-type="end"></span></div>http://miami-bankruptcy-attorney.orghttp://www.blogger.com/profile/13324503480917359901noreply@blogger.com0tag:blogger.com,1999:blog-1497770403155888273.post-26596401497761714212011-01-11T08:44:00.000-05:002011-01-11T08:44:06.505-05:00Practical Ways To Eliminate Debt<div style="text-align: center;">As part of our commitment to EDUCATING CONSUMERS ABOUT eliminating debt, we are going to start posting our popular series on; </div><div style="text-align: center;"><br />
</div><div style="text-align: center;"><strong><u>"PRACTICAL STEPS TO ELIMINATE DEBT"</u></strong> </div><div style="text-align: center;"><br />
</div><div style="text-align: center;">IT WILL COME WITH TIPS, ADVICE AND EVEN TEMPLATE LEGAL FORMS. THINGS THAT YOU CAN USE AND IMPLEMENT TODAY!</div><div style="text-align: center;"><br />
</div><div style="text-align: center;"> BE ON THE LOOKOUT FOR THIS WONDERFUL NEW SERIES THAT IS BOTH PRACTICAL ANS USEFUL! </div>http://miami-bankruptcy-attorney.orghttp://www.blogger.com/profile/13324503480917359901noreply@blogger.com0tag:blogger.com,1999:blog-1497770403155888273.post-52501881305999643422011-01-11T08:39:00.002-05:002011-01-11T08:39:22.573-05:00Debt Collectors Using Facebook To Communicate With Debtor and Debtors Family!<div align="center" class="MsoNormal" style="background: white; margin: 0in 0in 0pt; mso-line-height-alt: 12.75pt; text-align: center; vertical-align: middle;"><b style="mso-bidi-font-weight: normal;"><u><span lang="EN" style="color: black; font-family: 'Georgia','serif'; font-size: 16pt; mso-ansi-language: EN; mso-bidi-font-family: Arial; mso-fareast-font-family: 'Times New Roman';">Florida woman contacted by collection agency on Facebook</span></u></b></div><div align="center" class="MsoNormal" style="background: white; margin: 0in 0in 0pt; mso-line-height-alt: 12.75pt; text-align: center; vertical-align: middle;"><br />
</div><div align="center" class="MsoNormal" style="background: white; line-height: 12.75pt; margin: 0in 0in 0pt; text-align: center; vertical-align: middle;"><span lang="EN" style="color: black; font-family: 'Georgia','serif'; font-size: 11.5pt; mso-ansi-language: EN; mso-bidi-font-family: Arial; mso-fareast-font-family: 'Times New Roman';">A Florida woman claims a debt collector went far beyond the usual phone calls in an attempt to recoup $362 she owed on an unpaid car loan, by sending her messages on Facebook and by telling family on the social networking site to have her call the collection agency.</span></div><div class="MsoNormal" style="background: white; line-height: 15.75pt; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span lang="EN" style="color: black; font-family: 'Georgia','serif'; font-size: 11.5pt; mso-ansi-language: EN; mso-bidi-font-family: Arial; mso-fareast-font-family: 'Times New Roman';">Melanie Beacham, who is suing the debt collection agency Mark One LLC in a Florida court, said she never expected to hear from a collection agency on Facebook, which she used to talk to loved ones and post the occasional photo or funny status update.</span></div><div class="MsoNormal" style="background: white; line-height: 15.75pt; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span lang="EN" style="color: black; font-family: 'Georgia','serif'; font-size: 11.5pt; mso-ansi-language: EN; mso-bidi-font-family: Arial; mso-fareast-font-family: 'Times New Roman';">"I was shocked when I found out these collectors used Facebook to contact my family because they knew exactly where I was," Beacham, 34, told The Associated Press in an e-mail on Thursday. "I'm angry they caused me so much embarrassment with my family."</span></div><div class="MsoNormal" style="background: white; line-height: 15.75pt; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span lang="EN" style="color: black; font-family: 'Georgia','serif'; font-size: 11.5pt; mso-ansi-language: EN; mso-bidi-font-family: Arial; mso-fareast-font-family: 'Times New Roman';">A Chicago lawyer, said he had one client who was “friended” on Facebook by a young woman in a bikini. The account turned out to be a debt collector's, something his client realized only when the "friend" posted a message on his wall: "Pay your debts, you deadbeat."</span></div><div class="MsoNormal" style="background: white; line-height: 15.75pt; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span lang="EN" style="color: black; font-family: 'Georgia','serif'; font-size: 11.5pt; mso-ansi-language: EN; mso-bidi-font-family: Arial; mso-fareast-font-family: 'Times New Roman';">Beacham's lawsuit's states that one of her family members received a Facebook message from a Mark One representative.</span></div><div class="MsoNormal" style="background: white; line-height: 15.75pt; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span lang="EN" style="color: black; font-family: 'Georgia','serif'; font-size: 11.5pt; mso-ansi-language: EN; mso-bidi-font-family: Arial; mso-fareast-font-family: 'Times New Roman';">"Please Have Melanie D Beacham call me ... Thanks," the message said.</span></div><div class="MsoNormal" style="background: white; line-height: 15.75pt; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span lang="EN" style="color: black; font-family: 'Georgia','serif'; font-size: 11.5pt; mso-ansi-language: EN; mso-bidi-font-family: Arial; mso-fareast-font-family: 'Times New Roman';">The family member replied by suggesting the person contact Beacham himself.</span></div><div class="MsoNormal" style="background: white; line-height: 15.75pt; margin: 0in 0in 10pt; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;"><span lang="EN" style="color: black; font-family: 'Georgia','serif'; font-size: 11.5pt; mso-ansi-language: EN; mso-bidi-font-family: Arial; mso-fareast-font-family: 'Times New Roman';">This kind of exchange could be a violation of the Fair Debt Collection Practices Act, which states that collection agencies are only allowed to contact third parties to confirm someone's location.</span><span style="color: black; font-family: 'Georgia','serif'; font-size: 11.5pt; mso-bidi-font-family: Arial; mso-fareast-font-family: 'Times New Roman'; mso-no-proof: yes;"><shapetype coordsize="21600,21600" filled="f" id="_x0000_t75" o:preferrelative="t" o:spt="75" path="m@4@5l@4@11@9@11@9@5xe" stroked="f"> <stroke joinstyle="miter"></stroke><formulas><f eqn="if lineDrawn pixelLineWidth 0"></f><f eqn="sum @0 1 0"></f><f eqn="sum 0 0 @1"></f><f eqn="prod @2 1 2"></f><f eqn="prod @3 21600 pixelWidth"></f><f eqn="prod @3 21600 pixelHeight"></f><f eqn="sum @0 0 1"></f><f eqn="prod @6 1 2"></f><f eqn="prod @7 21600 pixelWidth"></f><f eqn="sum @8 21600 0"></f><f eqn="prod @7 21600 pixelHeight"></f><f eqn="sum @10 21600 0"></f></formulas><path gradientshapeok="t" o:connecttype="rect" o:extrusionok="f"></path><lock aspectratio="t" v:ext="edit"></lock></shapetype><shape alt="http://cache.boston.com/bonzai-fba/File-Based_Image_Resource/dingbat_story_end_icon.gif" id="Picture_x0020_33" o:spid="_x0000_i1025" style="height: 6pt; mso-wrap-style: square; visibility: visible; width: 4.5pt;" type="#_x0000_t75"><imagedata o:title="dingbat_story_end_icon" src="file:///C:\Users\Family\AppData\Local\Temp\msohtmlclip1\01\clip_image001.gif"></imagedata></shape></span><span lang="EN" style="color: black; font-family: 'Georgia','serif'; font-size: 11.5pt; mso-ansi-language: EN; mso-bidi-font-family: Arial; mso-fareast-font-family: 'Times New Roman';"></span></div><div class="MsoNormal" style="background: white; line-height: 10.5pt; margin: 0in 0in 7.5pt;"><span lang="EN" style="color: #464646; font-family: 'Arial','sans-serif'; font-size: 8.5pt; mso-ansi-language: EN; mso-fareast-font-family: 'Times New Roman';">© Copyright 2010 Associated Press. All rights reserved. </span></div>http://miami-bankruptcy-attorney.orghttp://www.blogger.com/profile/13324503480917359901noreply@blogger.com0tag:blogger.com,1999:blog-1497770403155888273.post-49149234488148613282011-01-09T11:55:00.004-05:002011-01-09T12:06:11.478-05:00FEDERAL JUDGE RULES AGAINST WELLS FARGO IN CA OVER LOAN MOD SCAM!Homeowners who argued Wells Fargo Bank tricked them into <a href="http://phillipslawyersgroup.com/">loan-modification</a> programs offering to <a href="http://phillipslawyersgroup.com/">stop foreclosure</a> in return for payments and foreclosed anyway, keeping the homeowners contingent payments, had their suit survive a legal challenge from Well Fargo this week in San Francisco federal court. <span class="mceItemHidden"> </span><br />
<br />
U.S. District Judge Joseph Spero, rejected claims for breach of contract but<u> <strong>upheld allegations that the Wells Fargo debt-collection practices were UNFAIR DECEPTIVE AND FRAUDULENT! </strong></u><br />
<br />
The lead plaintiffs claimed that, after they defaulted on their mortgage, Wells Fargo offered to freeze foreclosure proceedings against them if they signed a modified loan agreement and made payments. However, after they signed the loan and made payments over four consecutive months, <strong>the bank still <a href="http://phillipslawyersgroup.com/">foreclosed</a> on their home!</strong><br />
<strong><br />
</strong> Wells Fargo asked the district court to throw out the suit, <strong>Judge Spero instead found that the homeowners may be entitled to damages under California's Rosenthal Act, which protects consumers from improper debt-collection practices!</strong> <br />
<br />
<div style="text-align: center;"><strong><span style="background-color: lime; color: black; font-family: Arial, Helvetica, sans-serif;"><a href="http://phillipslawyersgroup.com/category/uncategorized/">I have attached a copy of the entire ORDER from Judge SPERO - all 32 pages for those who are interested!</a></span></strong></div>http://miami-bankruptcy-attorney.orghttp://www.blogger.com/profile/13324503480917359901noreply@blogger.com0tag:blogger.com,1999:blog-1497770403155888273.post-49092581841301337052011-01-07T11:26:00.000-05:002011-01-07T11:26:03.864-05:00Breaking News: Fed Chairman says it will take years for jobs to come back.<a href="http://finance.yahoo.com/news/Fed-boss-It-will-take-years-apf-2102069121.html?x=0&sec=topStories&pos=main&asset=&ccode=">http://finance.yahoo.com/news/Fed-boss-It-will-take-years-apf-2102069121.html?x=0&sec=topStories&pos=main&asset=&ccode=</a>http://miami-bankruptcy-attorney.orghttp://www.blogger.com/profile/13324503480917359901noreply@blogger.com0tag:blogger.com,1999:blog-1497770403155888273.post-41838780377674581832011-01-07T10:07:00.002-05:002011-08-22T15:28:07.255-04:00Turn the tables on the Credit Card Companies & Collectors.<span style="color: #990000;"></span><br />
<div class="entry"><div style="text-align: center;"><span style="color: #990000;">LITIGATING AND SUING THE </span><span style="color: #990000;">CREDIT CARD COMPANY, BANK AND COLLECTION AGENCIES</span><span style="color: #990000;">.</span></div><br />
<strong><span style="color: #990000;"><u>How do I file a lawsuit against the credit card lender or bank with which I have a credit card?</u></span></strong><br />
<br />
<span style="color: #990000;">There are a myriad of different laws on the federal and state level that govern lenders and specifically credit card issuers for example to list the more common:</span><br />
<span style="color: #990000;"><br />
* The Truth in Lending Act (TILA)<br />
* State Unfair and Deceptive Acts and Practices (UDAP)<br />
* The Fair <span style="color: #990000;">Credit Reporting Act </span><span style="color: #990000;">(FCRA)<br />
* The Fair Credit Billing Act (FCBA)</span><br />
<br />
<span style="color: #990000;">Dozens of additional statutes and laws exist designed to PROTECT THE CONSUMER and govern the </span><span style="color: #990000;">credit card issuers</span><span style="color: #990000;">! One slip up on any of these laws and a competent Debt Relief Attorney can litigate and sue the </span><span style="color: #990000;">credit card company</span><span style="color: #990000;"> for such a violations and win! For example, did the company not send the borrower the necessary notices of increase in their APR (annual percentage rate), or charge excessive or unexplained late fees, or did they mail statements late? The list goes on and on and on!</span><br />
<br />
<span style="color: #990000;">For comprehensive and potentially total credit card relief, CREDIT CARD LITIGATION is a very successful methodology to tackling and potentially eliminating the </span><span style="color: #990000;">credit card debt</span><span style="color: #990000;">. With a single violation, the </span><span style="color: #990000;">credit card company</span><span style="color: #990000;"> risks everything and the debtor can sometimes walk away from their entire <nobr>credit card balance. </nobr>Sometimes, the violations are so serious that the savvy and experienced attorney will ask for punitive damages and the courts will not only eliminate the client’s entire balance but order that compensation be paid to the borrower as a form of restitution due to the </span><span style="color: #990000;">credit card companies</span><span style="color: #990000;"> violations. </span><br />
<br />
<span style="color: #990000;">Most of these cases are on contingency so there are no expenses or fees to you unless the attorney wins the case.</span><br />
<br />
<span style="color: #990000;">Many "experts" believe credit card litigation is the next shoe to drop on the banks and parallels the robo signing and lies they perpetrated in the foreclosure mess. For more see <a href="http://miami-bankruptcy-attorney.org/">http://miami-bankruptcy-attorney.org</a></span></span></div>http://miami-bankruptcy-attorney.orghttp://www.blogger.com/profile/13324503480917359901noreply@blogger.com0tag:blogger.com,1999:blog-1497770403155888273.post-10623502711682969932010-10-14T12:44:00.001-04:002011-08-22T15:29:07.816-04:00Debt Settlement - A Highly Questionable Practice!<div align="left" style="text-align: center;"><div style="text-align: center;"><span style="color: black; font-family: "Verdana","sans-serif"; font-size: 9pt;"><strong><u>Debt Settlement - a highly questionable practice!</u></strong></span><br />
</div><div style="text-align: center;"><a href="http://miami-bankruptcy-attorney.org/">http://miami-bankruptcy-attorney.org</a></div><div style="text-align: left; text-indent: 0.5in;"><span style="color: black; font-family: "Verdana","sans-serif"; font-size: 9pt;">So you may have heard or read about Debt Settlement. Perhaps not. So what is this mysterious term and what does it mean? Ok, it's not that complicated and some would argue its self explanatory. Settle your debt. Right? Not so fast my friends. Debt Settlement professes to settle debt and potentially can, but the players, the companies and the tactics by which it is often attempted are QUESTIONABLE to say the least. </span></div><div style="text-align: left; text-indent: 0.5in;"><br />
</div><div style="text-align: left; text-indent: 0.5in;"><span style="color: black; font-family: "Verdana","sans-serif"; font-size: 9pt;">As an attorney licensed and practicing in Florida, New York and New Jersey, with a focus on Consumer Debt Relief, I am receiving more and more clients who were once signed into an alleged debt settlement program or had already paid exorbitant amounts of money to such companies and their debt was NOT settled. Companies "specializing" in debt settlement often take heaps of upfront money from the debtor, before performing any work, a violation of FTC and State Law. They promise to eliminate all unsecured debt (credit cards, medical bills) and don't inform the debtor that the proceeding is merely a negotiation and not a legal one, that the creditor, credit card company, lender, or debt collection agency do not have any obligation to talk to the settlement company, let alone actually settle the debt for less than is owed. Furthermore, many of these practitioners fail to inform the client that there are IRS TAX CONSEQUENCES when a debt is forgiven or settled (over a certain Dollar amount). The clincher is when they instruct the debtor to STOP PAYING THEIR CREDIT CARDS! This raises a very serious legal issue. Yet still many of these clandestine companies sign up thousands of unassuming hard working Americans on a daily basis. </span></div><div style="text-align: left; text-indent: 0.5in;"><br />
</div><div style="text-align: left; text-indent: 0.5in;"><span style="color: black; font-family: "Verdana","sans-serif"; font-size: 9pt;">Debt settlement does not work. Firstly, the debtor’s credit is already damaged at that point. Secondly, the negotiation can be achieved and handled by the debtor themselves without having to pay out money to get rid of debt (Counter-productive in so many ways). It's not as if the settlement company has any formal expertise (perhaps former car salesmen as the exception) or need to follow any formal template or system. </span></div><div style="text-align: left; text-indent: 0.5in;"><br />
</div><div style="text-align: left; text-indent: 0.5in;"><span style="color: black; font-family: "Verdana","sans-serif"; font-size: 9pt;">The solution to real, legal and lasting debt relief including credit card debt is working through an attorney licensed and specializing in Consumer Debt Relief. With a qualified attorney the debtor has the ability to view their financial hardships and debt in a total and comprehensive fashion not in a bubble or vacuum of credit card debt alone. One is able to address and tackle the CAUSE and not the symptom and view and address ALL DEBT both secured and unsecured including credit cards, medical bills, tax liens, car repossessions, mortgage debt, judgments, garnishments and foreclosures if applicable. This allows for a plan of action that is comprehensive and does not give the debtor temporary relief or a false sense of security while ignoring the 800 pound gorilla sitting right next door! </span></div><div style="text-align: left; text-indent: 0.5in;"><br />
</div><div style="text-align: left; text-indent: 0.5in;"><span style="color: black; font-family: "Verdana","sans-serif"; font-size: 9pt;">Perhaps the debts are so outrageous that the client is better suited for bankruptcy. Moreover, even if the debt is exclusive to credit cards alone and the debtor does not want to or cannot qualify for bankruptcy, an attorney can accomplish the same settlement with better and more effective results at far less cost than that of a debt settlement company. </span></div><div style="text-align: left; text-indent: 0.5in;"><br />
</div><div style="text-align: left; text-indent: 0.5in;"><span style="color: black; font-family: "Verdana","sans-serif"; font-size: 9pt;">Bold statements? No! </span></div><div style="text-align: left; text-indent: 0.5in;"><br />
</div><div style="text-align: left; text-indent: 0.5in;"><span style="color: black; font-family: "Verdana","sans-serif"; font-size: 9pt;">The empirical data shows that the debt settlement companies "fees" including processing and monthly are so large and unfair that they have put the debtor into a deeper financial hole. An attorney must give a retainer agreement and layout in plain English up front, what he or she is doing for the client and how much it will cost. A good attorney will not take money or start a case if they see that the client's desires are not legally possible or there are no legal defenses. Also, a credible attorney will NEVER make promises or guarantees about success let alone promise total elimination or settlement. The settlement companies promise to eliminate 50% to even 90% of the credit card debt. No one can promise any figures especially when the credit card company or their debt collectors are under no legal obligation to talk let alone negotiate. There is also the all too common problem of multiple creditors and credit cards and the inability of the company to get ALL the creditors into a settlement. Worse still is the failure of the settlement company to contact the true and actual creditor making sure the party they are "negotiating" with is the true debt holder and not a third party collection agency without authorization to issue settlements. Forget about the credit card companies and savvy banks who issue a settlement, subject to reserving the right for a deficiency judgment. In English... “We will let you pay off the balance and reduce it by x% but we still reserve the legal right to sue you and come after you for the x% we temporarily forgave at a later time when you have assets or income.” Often these judgments stay in affect for 20 years and lead to wage garnishments, liens and writs of possession! An attorney will make sure that any such settlement RELEASES the client from any future deficiency judgments. Most importantly, the attorney has a trump card and bargaining chip. The credit card companies know that the attorney can eliminate the debtor’s credit card debt legally and in FULL by assisting their client with bankruptcy or by LITIGATING AND SUING THE CREDIT CARD COMPANY, BANK AND COLLECTION AGENCIES. </span></div><div style="text-align: left; text-indent: 0.5in;"><br />
</div><div style="text-align: left; text-indent: 0.5in;"><span style="color: black; font-family: "Verdana","sans-serif"; font-size: 9pt;">Sue, litigate you say, how? </span></div><div style="text-align: left; text-indent: 0.5in;"><br />
</div><div style="text-align: left; text-indent: 0.5in;"><span style="color: black; font-family: "Verdana","sans-serif"; font-size: 9pt;">There are a myriad of different laws on the federal and state level that govern lenders and specifically credit card issuers and their collection agencies. An example of the more common being: </span></div><div style="text-align: left; text-indent: 0.5in;"><br />
</div><div style="text-align: left; text-indent: 0.5in;"><span style="color: black; font-family: "Verdana","sans-serif"; font-size: 9pt;">* The Truth in Lending Act (TILA) </span></div><div style="text-align: left; text-indent: 0.5in;"><span style="color: black; font-family: "Verdana","sans-serif"; font-size: 9pt;">* State Unfair and Deceptive Acts and Practices (UDAP) </span></div><div style="text-align: left; text-indent: 0.5in;"><span style="color: black; font-family: "Verdana","sans-serif"; font-size: 9pt;">* The Fair Credit Reporting Act (FCRA) </span></div><div style="text-align: left; text-indent: 0.5in;"><span style="color: black; font-family: "Verdana","sans-serif"; font-size: 9pt;">* The Fair Credit Billing Act (FCBA) </span></div><div style="text-align: left; text-indent: 0.5in;"><span style="color: black; font-family: "Verdana","sans-serif"; font-size: 9pt;">* State FDCPA laws. </span></div><div style="text-align: left; text-indent: 0.5in;"><br />
</div><div style="text-align: left; text-indent: 0.5in;"><span style="color: black; font-family: "Verdana","sans-serif"; font-size: 9pt;">Dozens of additional statutes and laws exist to PROTECT THE CONSUMER and govern the credit card companies. One slip up on any of these laws and a competent attorney can litigate and sue the credit card company for such a violation. Examples of violations include not offering the client the necessary notices of increases in their APR (annual percentage rate), unexplained late fees, or for mailing statements late. The list goes on and on. </span></div><div style="text-align: left; text-indent: 0.5in;"><br />
</div><div style="text-align: left; text-indent: 0.5in;"><span style="color: black; font-family: "Verdana","sans-serif"; font-size: 9pt;">Using an attorney and the opportunity potentially for litigation is a FAR SUPERIOR and a more successful methodology to tackling credit card debt versus signing with an unknown debt settlement company who charge ridiculous fees to the debtor. A debtor gets the best of ALL worlds and solutions with a Debt Relief Attorney. He or she goes into battle with countless armor and weapons ready to fight the debt at its root. The debtor has an experienced and effective counsel at their side and the attorney is equipped and licensed to challenge ALL of the debtor’s debt. Sometimes even making money for the debtor in cases where litigation is appropriate and restitution or punitive damages apply. By hiring an attorney to handle their debt, the debtor is not "losing" their opportunity for debt settlement, since the attorney can and if appropriate will negotiate, provided it brings the same or better results and that all the legalities and ramifications are addressed. This includes addressing deficiency judgments and explaining the IRS tax consequences. Finally, an attorney can and often will drop the ultimate bomb and simply end it all, painlessly and effectively, by filing bankruptcy on behalf of the debtor when appropriate. As to when bankruptcy is appropriate, is for another conversation. Suffice as to say, an attorney should look at its benefits on a case by case basis and analyze it in conjunction with the specific debtors situation. </span></div><div style="text-align: left; text-indent: 0.5in;"><br />
</div><div style="text-align: left; text-indent: 0.5in;"><span style="color: black; font-family: "Verdana","sans-serif"; font-size: 9pt;">In summary, we are being bombarded on TV and RADIO about "magical" debt elimination programs and systems. BEWARE, there are many unscrupulous folks and companies out there praying on those in debt often promising illegal and false results while taking loads of the debtors hard earned money while performing no service. </span></div><div style="text-align: left; text-indent: 0.5in;"><br />
</div><div style="text-align: left; text-indent: 0.5in;"><span style="color: black; font-family: "Verdana","sans-serif"; font-size: 9pt;">Whichever way you slice it, debt is an ugly game and the faster and cheaper it takes to get out of it, the better. Make sure the methods used and players engaged in them are legal and that you are not digging a deeper hole for yourself. Make your decisions on facts and law and not emotion, or based on cunning and false advertising. </span></div><div style="text-align: left; text-indent: 0.5in;"><br />
</div><div style="text-align: left; text-indent: 0.5in;"><span style="color: black; font-family: "Verdana","sans-serif"; font-size: 9pt;">Know your rights and remember while debt is a stressful matter, there are multiple laws in place to 1) Protect you and 2) Offer recourse. </span></div><div style="text-align: left; text-indent: 0.5in;"><br />
</div><div style="text-align: left; text-indent: 0.5in;"><span style="color: black; font-family: "Verdana","sans-serif"; font-size: 9pt;">Consult with an attorney who knows how to use these laws and will protect you. Any reasonable law firm should offer a free and comprehensive consultation. </span><span style="color: black; font-family: "Verdana","sans-serif"; font-size: 9pt;">Good Luck! </span></div><div style="text-align: left; text-indent: 0.5in;"><br />
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</div><div style="text-align: left;"><span style="color: black; font-family: "Verdana","sans-serif"; font-size: 9pt;"><strong><em>Grant Phillips, Esq. is an attorney licensed and practicing in the states of FL, NY and NJ with a focus on Consumer Debt Relief. He often blogs practices and writes under the name miamidebtlawyer.com. His articles are educational, thought provoking, deliberate and address debt, bankruptcy and consumer relief. </em></strong></span></div><div style="text-align: left;"><br />
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</div><div style="text-align: left;"><span style="color: black; font-family: "Verdana","sans-serif"; font-size: 9pt;"><strong>For more visit <a href="http://miami-bankruptcy-attorney.org/">http://miami-bankruptcy-attorney.org</a></strong></span></div><div class="MsoNormal" style="margin: 0in 0in 10pt;"><br />
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