What You Should Know About Debt Lawsuits When creditors don't receive payment for debt that is past due or accounts that are delinquent, they may look to exercise their legal options in collecting from debtors. A lawsuit may be filed against you through a small claims court or federal court, depending on how much you [...]
Bank of America just agreed to a settlement with the Federal Trade Commission that will require the mortgage company to pay $108 million to 200,000 borrowers who were charged outrages fees by Countrywide Financial Corp. (now owned by Bank of America) while facing foreclosure. Countrywide hit the borrowers who were behind on their mortgages with [...]
Home furnishings retailer Furniture Factory Warehouse, which operates 12 stores in South Texas, has filed for Chapter 11 Bankruptcy protection due to unfavorable financial conditions and a consistent decline in furniture sales. The retailer has closed all of its stores and distribution facilities pending the bankruptcy court's approval of Furniture Factory Warehouse's "Bankruptcy Going Out [...]
If you thought the Texas Rangers bankruptcy drama had ended, it seems that it is just getting started. Most recently bankruptcy judge Michael Lynn quipped that "This is like one of those baseball movies where the players get stranded," after convincing Chase to keep the baseball team's credit card active while they played in Kansas [...]
Carl Icahn and Dallas-based Beal Bank have appealed a bankruptcy court ruling that would give ownership of the casinos to Donald Trump, his daughter, Ivanka Trump, and company bondholders. Icahn and the bank claim the bankruptcy court made several mistakes in ruling against them. The Trumps and the bondholders, led by New York-based Avenue Capital [...]
When Creditors Challenge A Bankruptcy Filing While it doesn't happen often, sometimes a creditor may challenge a debtor's Chapter 7 bankruptcy or Chapter 13 bankruptcy filing. Reasons a Creditor Might Challenge a Bankruptcy Filing Below are some of the most common reasons a creditor might challenge a bankruptcy filing: The creditor has noticed that the [...]
The Fair Debt Collection Practices Act only governs certain types of debt and does not protect businesses who owe business debt. Debt requirements that must be met: The debt must be a consumer debt which was incurred for personal, household or family reasons. For example, if you have a credit card and used it to [...]
Many debtors ask about what they should do before filing bankruptcy; but what about the things that debtors shouldn't do before filing bankruptcy? Things debtors should avoid before filing bankruptcy: Don't raid your retirement account in an attempt to repay debtors if you are considering bankruptcy. A matter of fact, don't raid your retirement account [...]
Bankruptcy Judge Mary Walrath ruled recently that the Washington Mutual Inc. bankruptcy will not be subjected to an investigation by an independently appointed examiner. Shareholders had requested that the bankruptcy court allow an independent examiner to investigate Washington Mutual to determine the value of outstanding legal claims against the bank. But bankruptcy judge Mary Walrath [...]
Private student loans are a hot topic right now in the news and in the legislature. Currently, some lawmakers and consumer advocate groups are fighting to make private student loans dischargeable in bankruptcy like other unsecured consumer debt such as credit cards; but there is a lot of resistance. Right now private student loans, which [...]