It is not uncommon to get ripped off when making a purchase of certain goods or being overcharged when hiring someone for services. In many industries there are no governing regulations and prices are generally dependent upon market forces. But unlike other industries, the legal industry insofar as bankruptcy is concerned has its fees governed by law.
The bankruptcy judge has the right to determine the fees charged by bankruptcy attorneys to some extent. Section 329 of the bankruptcy code gives the judge this power. In fact, it is legally binding for the bankruptcy attorney to declare his fees to the court. The court then reviews the charges and decides if the fees charged are unreasonable. Being required to do this causes many bankruptcy lawyers not to charge excessively for their services.
But there are no hard and fast figures that determine if a fee charged is excessive. Among the things the bankruptcy judge takes into account in deciding whether fees are reasonable are the complexity of the case, the competence and skill of the lawyer and the amount of work the lawyer did in the case. A long-drawn or complicated Chapter 13 bankruptcy would warrant a higher fee than a straightforward Chapter 7 case. If the attorney solved difficult problems for the client, set out creative strategies or filed correct petitions, the charges can be higher.
If the judge determines that the fees charged are excessive, the onus is on the lawyer to prove otherwise, failing which the lawyer has to lower his fees.
So if you are contemplating filing for bankruptcy but are hesitant to do so because of affordability issues, it’s time to put aside such concerns. Call us at (813) 200 4133 for a free consultation on how bankruptcy can give you a new lease of life financially by eliminating your debts.
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Filed under Chapter 7 (Tampa) by on Jan 30th, 2012. Comment. 
How to List an Omitted Creditor in Bankruptcy
When you file for bankruptcy, you have to submit the list of your creditors to the bankruptcy court. This listing contains the names and addresses of all your creditors. This is the list reviewed by the bankruptcy judge and used to pay off your creditors either through liquidation of your assets in Chapter 7 bankruptcy or payment plan in Chapter 13 bankruptcy.
You will have the opportunity to review the list before it is lodged with the bankruptcy court. During this time, if you notice any inaccuracies or any creditor that has been omitted, you should rectify it with your bankruptcy lawyer.
However, if you overlooked a creditor and submitted the list with one or more creditors missing, you can still have the creditor included. But you have to file an amendment. In most cases, when you file for an amendment you will have to complete a new schedule list to show all creditors including the creditor that was omitted. For this, you will incur an amendment fee.
If you have exited bankruptcy and had your debts discharged and discover you have omitted a creditor, you may still have the debt owed to this creditor discharged provided it was incurred before you filed for bankruptcy. If the creditor attempts to collect on the outstanding debt, you may have to reopen your bankruptcy case.
If you are in such a situation, call us at (813) 200 4133 for a free consultation.
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Filed under Chapter 7 (Tampa) by on Jan 27th, 2012. Comment.
One of the most dreaded things anyone can face is the foreclosure of their home. This is because foreclosure threatens our basic need for security. But if debts are mounting and you fall behind in your mortgage payments, it is only a matter of time before your bank takes foreclosure action. Is there anything you can do about it? Yes. You can file for bankruptcy protection.
Depending on your situation, a bankruptcy filing may halt foreclosure proceedings. There are two types of bankruptcies for individuals. The first is Chapter 7 bankruptcy which is where your non-exempt properties are sold to repay your debts. Chapter 7 bankruptcy is useful if you are not behind in your mortgage payments but have run into unexpected financial problems like a huge medical bill that you need time to repay. Should you file for bankruptcy under such circumstances, there is a high chance that your Chapter 7 bankruptcy will stall your mortgage payments until you exit bankruptcy. After the discharge, your mortgage will continue as scheduled. This is how Chapter 7 bankruptcy can affect your mortgage and help you avoid foreclosure to your home.
The second type of bankruptcy for individuals is Chapter 13 bankruptcy or reorganization bankruptcy. Under this type of bankruptcy, your bankruptcy debts are put into a repayment plan that can stretch up to five years. Thus, your mortgage will be included in this plan. When you start repaying your bankruptcy debts according to the plan, you can avoid foreclosure. Chapter 13 bankruptcy will be more useful to you if you have fallen too far behind your mortgage payments and your bank has initiated foreclosure proceedings. But there is a proviso.
The bankruptcy court will only grant your mortgage to be included into your bankruptcy assets provided you are not too far into the foreclosure process. If the bankruptcy judge feels that you owe too much to the bank already and that the foreclosure process has gone on for too long, then he or she may strike out your mortgage from the rest of your bankruptcy assets. In such a case, there may be nothing you can do to save your home.
To decide whether you should file for bankruptcy and discuss how your home can be saved from foreclosure in bankruptcy, call us at (813) 200 4133 for a free consultation.
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Filed under Chapter 7 (Tampa) by on Jan 11th, 2012. Comment.
Although credit counseling is a mandatory step to take in order for you can be discharged from bankruptcy, there are people who question the need for it. This is mainly due to the fact that a significant enough number of ex-bankrupts find themselves in financial problems again and have to file for the second time. Another objection is that credit counseling of a few months cannot realistically undo a lifetime of bad financial habits.
But credit counseling is a compulsory prerequisite for your debts to be discharged because the courts regard it as a means to help the ex-bankrupt stay out of bankruptcy. Since the law makes credit counseling mandatory, you have no choice but to take it. But the more important thing is to make the counseling effective for you otherwise it may not be long before you find yourself face-to-face with the bankruptcy judge again.
To max the benefits of credit counseling there are a few things you should do. Firstly, you should take it seriously and not just go through the motions simply for the sake of getting your discharge. If you have the wrong attitude, all the best information in the world will not help you. It follows that if you take your counseling seriously, you would be eager to absorb all the information your counselor give you. You should not be hesitant to ask questions about anything you do not understand, especially about technical things like how your credit score can be improved post-bankruptcy.
Secondly, take down notes because this helps you remember the points and take action on them. If you take the extra effort to write down what you learn, it will help you unlearn bad spending habits that destroy your financial standing.
And finally, the most important thing to do would be to take action on what you learn. There will be many practical instructions for you to put into practice in your life such as drawing up and keeping to a budget. Make sure you do them as they are for your own good. When in doubt, do not hesitate to ask your counselor for advice. You should take advantage of it his or her expertise and experience. This is the way to maximize the benefits of your credit counseling.
If you need advice on bankruptcy, do not hesitate to call us at (813) 200 4133 for a free consultation.
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Filed under Chapter 7 (Tampa) by on Jan 9th, 2012. Comment.
Former FBI Director Freeh Appointed MF Global Bankruptcy Trustee
The Bankruptcy Court has appointed former Federal Bureau of Investigation Director Louis J. Freeh as trustee in the much publicized MF Global Holdings Ltd. bankruptcy case. Both the company and its creditors agree that one sole person should be tasked with the responsibility of getting assets back. Among other things, Freeh is to liaise with all regulators for the prompt recovery of creditor funds. The appointment was filed today.
On October 31 all customer accounts of MF Global Inc., the brokerage unit of MF Global Holdings, were frozen when the company could not account for a shortage of funds required to be segregated under US Commodity Futures Trading Commission rules. Subsequently, MF Global Holdings filed for bankruptcy protection to distribute returns to its bondholders and other creditors. MF Global was managed by Jon Corzine, who was formerly the governor of New Jersey and co-chairman of Goldman Sachs. Corzine has since resigned due to the debacle.
Louis Freeh was an FBI agent who rose in the ranks to become the Bureau’s director when President Bill Clinton was in office from 1993 to 2001. Earlier, Freeh was a federal prosecutor and was appointed by President George W. Bush to the bench in 1991 to become a judge. His appointment as trustee must be approved by bankruptcy judge Martin Glenn who is presiding over the bankruptcy case.
After stepping down as director of the FBI, Freeh ventured into risk management and formed his own company, Freeh Group International Solutions Inc. He also started his own legal firm. Some of his past and current work involvements include:
• In 2008, heading a 2008 investigation of energy trading losses leading up to the bankruptcy of SemGroup LP
• In 2010, conducting an independent monitoring a Justice Department probe of Daimler AG in 2010
• Conducting an independent probe of the child sex-abuse scandal at Pennsylvania State University
• Reviewing the security measures for SAT college-admissions test to be in accordance with the Educational Testing Service of Princeton, New Jersey and the New York-based College Board
There appears to be nothing in Freeh’s current businesses that would pose a conflict of interest in his appointment as trustee for MF Global. Freeh said in court papers, “I do not personally have any connection with any interested party in these case.” Freeh did, however, mention some minor exceptions, for example the work his legal firm has done for Bank of America Corp., that make up less than 1% of its revenue to date.
On Freeh’s part, his appointment necessitates him posting a bond of $26 million within the next 5 days, in accordance with regulations by the Justice Department in its handbook for trustees.
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Filed under Chapter 7 (Tampa) by on Nov 25th, 2011. Comment.
