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Harassment, Reposession and Other Debt

2009-11-12T13:13:00.000-08:00

Creditors expect debts to be paid in full and on time. If you miss a payment or two, you can bet that the creditor will take steps to collect it. First you’ll get a polite letter reminding you that your payment is past due. If you don’t respond with a check, other letters will follow, each firmer in tone than the last. The second or third letter may threaten to turn the matter over to a collection agency or to the creditor’s lawyer. If you ignore these letters, you’ll soon receive a letter or telephone call from a collection agency or a lawyer. But there are limits to how far a creditor or collection agency can go to collect a debt.

Let’s say that your debt has been turned over to a collection agency, and the collection agency starts calling you at all hours of the day and night, at home and at work. The debt collectors calls you names and even goes so far as to threaten to call your boss and get you fired if you don’t pay up immediately. Can you do anything to stop this harassment? Yes. A number of laws now protect you from creditor harassment and other strong-arm tactics. The most important of these is the federal Fair Debt Collection Practices Act, which protects you from “debt collectors” – persons who regularly collect debts for others. The creditor is not covered by this act, but states usually prohibit them from harassment and other excessive collection tactics. Attorneys who collect debts on a regular basis are subject to the provisions of the Fair Debt Collection Practices Act.

One thing that is quite common when you fall behind in your payments is a letter from your creditor asking for the full balance of the loan even though there may be, say, two more years to go. Suppose, if you will, that your loan calls for you to make twenty-four monthly payments of $100. After making six payments, you miss two. The creditor sends you a letter stating that you are in default of the loan - $1800 plus interest to date – is immediately die and payable. Can the creditor do this? Yes – if the loan agreement contains an “acceleration clause” (which written loan agreements ordinarily do). Usually, though, you bring the delinquent payments up to date, the creditor won’t make you pay the rest at once. But if you don’t make up the back payments, the creditor will most likely accelerate the payments and demand the entire amount, and take you to court if you don’t pay it.

If you are having financial hardship and are considering filling for bankruptcy in the Sacramento area, please call a Sacramento bankruptcy attorney toll free at 1-888-446-4333 for a FREE confidential Sacramento bankruptcy consultation. YOU ARE NOT ALONE. Call Sacramento bankruptcy lawyer today.

We are a debt relief agency.

Call Toll Free: (888) 446-4333

Richard Allaye Chan, Jr.
A Professional Corporation
1000 G Street, Suite 220
Sacramento, CA 95814

Tel: (916) 446-4400
Fax: (916) 446-5514

Roseville: (916) 783-9696
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The Bankruptcy Process

2009-10-08T11:47:00.000-07:00

Richard Allaye Chan, a Sacramento Bankruptcy Attorney will guide you through the complicated legal maze and help you wipe you slate clean. Contact Bankruptcy Lawyer in Sacramento for your free confidential consultation. You deserve a fresh start.

Richard Allaye Chan, Jr.
A Professional Corporation
1000 G Street, Suite 220
Sacramento, CA 95814

Toll Free: 1-888-446-4333

Tel: (916) 446-4400
Fax: (916) 446-5514

Bankruptcy Process
Article I, Section 8, of the United States Constitution authorizes Congress to enact "uniform Laws on the subject of Bankruptcies." Under this grant of authority, Congress enacted the "Bankruptcy Code" in 1978. The Bankruptcy Code, which is codified as title 11 of the United States Code, has been amended several times since its enactment. It is the uniform federal law that governs all bankruptcy cases.

The procedural aspects of the bankruptcy process are governed by the Federal Rules of Bankruptcy Procedure (often called the "Bankruptcy Rules") and local rules of each bankruptcy court. The Bankruptcy Rules contain a set of official forms for use in bankruptcy cases. The Bankruptcy Code and Bankruptcy Rules (and local rules) set forth the formal legal procedures for dealing with the debt problems of individuals and businesses.

There is a bankruptcy court for each judicial district in the country. Each state has one or more districts. There are 90 bankruptcy districts across the country. The bankruptcy courts generally have their own clerk's offices.

The court official with decision-making power over federal bankruptcy cases is the United States bankruptcy judge, a judicial officer of the United States district court. The bankruptcy judge may decide any matter connected with a bankruptcy case, such as eligibility to file or whether a debtor should receive a discharge of debts. Much of the bankruptcy process is administrative, however, and is conducted away from the courthouse. In cases under chapters 7, 12, or 13, and sometimes in chapter 11 cases, this administrative process is carried out by a trustee who is appointed to oversee the case.

A debtor's involvement with the bankruptcy judge is usually very limited. A typical chapter 7 debtor will not appear in court and will not see the bankruptcy judge unless an objection is raised in the case. A chapter 13 debtor may only have to appear before the bankruptcy judge at a plan confirmation hearing. Usually, the only formal proceeding at which a debtor must appear is the meeting of creditors, which is usually held at the offices of the U.S. trustee. This meeting is informally called a "341 meeting" because section 341 of the Bankruptcy Code requires that the debtor attend this meeting so that creditors can question the debtor about debts and property.

A fundamental goal of the federal bankruptcy laws enacted by Congress is to give debtors a financial "fresh start" from burdensome debts. The Supreme Court made this point about the purpose of the bankruptcy law in a 1934 decision:

It gives to the honest but unfortunate debtor…a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt.

Identifying Bankruptcy Fraud

2009-09-14T15:30:00.001-07:00

The bankruptcy system is designed to give an individual or a company a chance to reorganize their affairs, or if reorganization is not possible, to equitably distribute the non-exempt assets of the debtor among the creditors. This is often referred to as “a fresh start”. The amount of money a creditor will receive in a case will range from nothing in many cases to 100 percent in a few cases. In every case there will be significant delays from the time a bankruptcy petition is filed until the case is closed and all creditors receive final payment.

The bankruptcy system is based on the theory that a debtor will make full disclosure of all assets and liabilities so that the final disposition is in accordance with the requirements of the law. Unfortunately, at times both debtors and creditors try to obtain more than they are entitled to under the Bankruptcy Code. There are a number of criminal statutes that prohibit this type conduct.

Although concealing assets or making false statements in a bankruptcy proceeding make up the majority of bankruptcy frauds, there are a number of fraud schemes that are more complicated or are primarily designed for reasons other than maximizing the retention of assets in bankruptcy. Such schemes often use the automatic stay provided by the Bankruptcy Code to conceal an earlier crime, maximize profit from an ongoing fraud scheme or buy time while the perpetrator finds a way to avoid victims or leave town.

A comprehensive list of fraud schemes will be presented in two articles. Within each fraud category examples of schemes will be presented, with red flags to look for, and courses of action to be pursued if a scheme is encountered. Again, keep in mind that this is a list of common warning signs in a fraud scheme. Many of these factors may be present in situations where there is no fraud, so do not jump to conclusions simply based on these warning signs.

Identifying Bankruptcy Fraud–Part 1 covers common fraud schemes involving bankruptcies and debtor fraud. Identifying Bankruptcy Fraud–Part 2 will focus on creditor fraud and professional fraud. Included in both articles is a list of warning signs of bankruptcy fraud.

Bankruptcy Statistics

2009-09-14T15:28:00.000-07:00

The Administrative Office of the U.S. Courts compiles statistics on bankruptcy filings for each quarter ending December, March, June and September. The fiscal year for the federal Judiciary ends September 30. The calendar year ends December 31. Quarterly and 12-month statistics are available approximately 2 months after the close of a quarter.
Chapter 11 and Chapter 13 bankruptcy filing for the twelve month period ending September 20, 2008:
Chapter 11 and Chapter 13 bankruptcy filing for the twelve month period ending September 20, 2008:

Chapter 11 California Bankruptcy Filing: 83,975

Chapter 13 California Bankruptcy Filing: 27,180

Sacramento Bankruptcy Video

2009-08-31T08:50:00.000-07:00

Looking for a FRESH Start?
Bankruptcy is a right given to all US Residents

Richard Allaye Chan, a Sacramento California Bankruptcy Attorney will guide you through the complicated legal maze and help you wipe you slate clean. Contact Bankruptcy Lawyer in Sacramento for your free confidential consultation. You deserve a fresh start.

If you are having financial hardship and are considering filling for bankruptcy in the Sacramento area, please call a Sacramento Bankruptcy Attorney toll free at 1-888-446-4333 for a FREE confidential Sacramento Bankruptcy consultation.

Contact Us For FREE Consultation >>

We are a debt relief agency.
For FREE Bankruptcy Consultation Call Toll Free:
(888) 446-4333

Richard Allaye Chan, Jr.
A Professional Corporation
1000 G Street, Suite 220
Sacramento, CA 95814