Client Wins $10,000 Judgment Against Creditor

A bankruptcy court today gave one of my bankruptcy clients a $10,000 judgment against one of his creditors for attempting to collect a debt after the entry of the debtor’s discharge. A key part of my client’s success was his detailed documentation of collection letters and calls as well as my own repeated written warnings to the creditor.

After the entry of the Chapter 7 discharge one of the creditors made several collection calls to the client/debtor. I wrote a warning letter to the creditor reminding it of penalties for collection of debts after discharge. The creditor sent bills and letters. I wrote another warning letter. Collection continued.

Seeing my letters being ignored I filed a Motion for sanctions and attorneys fees against the creditor. The creditor representative then wrote a letter of apology promising that there would be no more calls. Even after the apology and promise the creditor continued calling my client and even left a threatening voice mail message.

In court, my client produced “screen shots” from his cell phone showing phone calls from a phone number that matched the creditor’s phone. The judge was also very interested in listening to my client’s recording of the collection voice mail that was recorded with date and time of call. Continue reading

Settlement of Student Loan Debt

There have been many news reports recently about the large amount of student loan debt burdening young people entering the workforce. Most people know that bankruptcy may not discharge student loan debt except in circumstances of “extreme hardship.” . I am often asked by clients or just blog readers for suggestions dealing with large amounts of student loan debt. Continue reading

Can Marital Settlement Agreement Supersede Bankruptcy Discharge?

A commercial contract cannot waive your right to file bankruptcy. A credit card company or a mortgage lender may not enforce a provision in their documents that states you are not permitted to file bankruptcy so as to disqualify your bankruptcy petition. Contractual provisions waiving your right to file bankruptcy are void. Continue reading

Credit Score Repair After Short Sale, Foreclosure, And Bankruptcy

One of my new bankruptcy clients is a credit manager with Bank of America. After discussing his situation and starting his bankruptcy I took the opportunity to ask him how a bankruptcy debtor best establishes good credit after bankruptcy. I also asked about the comparative impact on credit ratings of a short sale, a foreclosure, and a bankruptcy.

Continue reading

FICO Chief Talks About Credit After Bankruptcy

People considering bankruptcy are usually concerned about bankruptcy’s effect upon their credit score and what they need to do in order to rehabilitate their credit. I saw an interesting article in  Yahoo Finance about an interview with Mr. Mark Greene, the CEO of Fair Isaac & Co., the managers of your FICO score.  Continue reading