Debt Collectors Sanctioned for Deceptive Practices

The Consumer Financial Protection Bureau (CFPB) recently sanctioned two of the largest debt collectors for deceptive and abusive debt collection practices. The two entities are Portfolio Recovery Associates and Encore Capital Group, Inc. Encore’s subsidiaries are Midland Funding LLC, Midland Credit Management, and Asset Acceptance Capital Corp. These entities buy delinquent or charged-off debt from […]

Court Expands Mortgage Interest Deduction

In a recent decision, the 9th Circuit Court of Appeals expanded the mortgage interest deduction, effectively doubling the deduction limits for unmarried co-owners. The decision has important implications for individuals with very high mortgage debt, and also for those who take out second mortgages on their homes. Read on to find out more. The tax […]

4 Steps to Avoiding Bankruptcy in Arizona

I often get asked by prospective clients in Tucson and Mesa if bankruptcy is the only option available to deal with their debt problems.  The truth is, bankruptcy is not the only option, and several alternatives are available for avoiding bankruptcy.  Unfortunately, by the time most people decide to go see a lawyer, bankruptcy is […]

Debts Not Discharged in Chapter 7 Bankruptcy

A Chapter 7 bankruptcy discharges many types of debt. However, there are some debts that are not discharged in Chapter 7. The list of non-dischargeable debts appears in section 523 of the Bankruptcy Code (11 U.S.C. § 523).  There are a total of nineteen categories of debts not discharged in Chapter 7, with some categories […]

Difference between the U.S. Trustee and a Bankruptcy Trustee?

If you are contemplating bankruptcy, you may hear or see references to the U.S. Trustee or a bankruptcy trustee, and wonder what the difference may be. The short answer is that the U.S. Trustee is the bankruptcy trustee, although in some cases the U.S. Trustee may appoint private individuals to serve as the bankruptcy trustee […]

Can Bankruptcy Help an Arizona Real Estate Investor Keep Investment Property?

Real estate bankruptcy has risen.  With the financial downturn of the last several years, and the corresponding deterioration of lease rates for real estate, many real estate investors have found themselves in the unenviable situation of owning residential or commercial real estate that does not generate sufficient revenue to cover the debt service. Faced with […]

The Basics of Financial Planning and Dealing with Debt

As a bankruptcy attorney, I am used to counseling individuals and families who are struggling with debt. But what I still cannot get used to seeing is how well-meaning people, who want to do what they can to pay off their debts, end up making their debt problems much worse by using incorrect debt management methods. And this is almost always avoidable.

Can A Creditor Come After Me If I Co-Signed For A Loan?

The short answer is yes. I see this situation all the time: parents co-sign loans for their children, family members co-sign for each other, and friends co-sign for friends. Then, when the primary debtor stops paying, the creditor tries to collect from the co-signer. At that point, there are four basic ways for the co-signer to handle the debt: (1) dispute it (e.g. because the debt is too old, or because it is unenforceable for some other reason), (2) try to settle with the creditor, (3) file for bankruptcy, or (4) not do anything. The last option should only be used after careful consideration of all alternatives, and generally only if the co-signer is judgment-proof (meaning the co-signer does not have assets that could be taken by the creditor). Of course, there is also a fifth option—to get the primary debtor to pay the debt—but oftentimes the primary debtor simply does not have the resources to pay. Afterall, the likelihood of non-payment by the primary debtor is probably why the creditor required a co-signer in the first place.

Should I Hire A Bankruptcy Attorney?

If you are considering bankruptcy, your finances are probably already very tight, so paying for a bankruptcy attorney can seem almost counterintuitive–afterall,if you had the money to pay for a lawyer, you would not need a bankruptcy, right? Why should you hire one then? If you are filing for personal bankruptcy (as opposed to a bankruptcy for a business that you own) you don’t need to have a lawyer, you can file for bankruptcy on your own. It is not impossible to do, and people have successfully done it before. However, if you are going to file for bankruptcy on your own, you need to make sure you know what you are doing. This means that you will have to spend some time learning how the process works, and what specific steps you need to take to successfully navigate through bankruptcy.

Going Through A Mortgage Modification While Behind On Mortgage Payments? Read This First.

I get contacted almost every week by people who were attempting to do a mortgage modification (also known as loan modification) through their mortgage company, but ended up losing their house to foreclosure.

It’s a similar situation in every case: the homeowner is behind on his or her mortgage payments, and the mortgage company threatens or even starts foreclosure proceedings. In an effort to save the house, the homeowner contacts the mortgage company, and is told that he or she may qualify for a mortgage modification, but that she needs to complete an application, provide financial information, and then wait for this information to be reviewed by the mortgage company.