Ann Arbor Law Firms

In a perfect world, creditors would cease all contact with a debtor once they are informed that the debtor has hired representation. Legally speaking, once a creditor has notice that an individual has representation, all communication is supposed to go through the representative. Unfortunately, this is not always the case. Read the rest of this entry »

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Back with more news for you today. It’s amazing how much good information there is on this stuff out there if you know where to look. Three in particular that I found really valuable were…

Law Firms Add Value while Reducing Cost of Legal Services : Larry …

From the Austin Business Journal: While many in economically dinged Read the rest of this entry »

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When you file a Chapter 7 bankruptcy case, you also file a statement of intention with respect to property that is secured by consensual liens (car loans, furniture loans etc.). Bankruptcy law requires you to “perform” or move forward with your intentions regarding financed personal property within 45 days of the meeting of creditors, or else the automatic stay terminates and the creditor is no longer prevented from repossessing the collateral.

The options an individual has in dealing with a secured creditor in this situation are as follows:

Surrender: The collateral may be surrendered back to the lender who will sell the property and apply the proceeds to the outstanding balance of your loan. Assuming your case completes and you receive a discharge, any deficiency balance owed on the property will be eliminated in the bankruptcy. This is a good option if you are unsure you will be able to make the payments moving forward, or if the collateral is damaged and you owe more than the property is worth.

Redeem: Bankruptcy law allows debtors to “redeem,” or buy out personal property secured by liens for the market value of the property rather than what’s owed on it. The downside here is that you must pay the lender the market value in a lump sum which is difficult for most. There are lenders who will finance a loan for the market value of the property, however the interest rates are high and should be factored into the overall net benefit to the debtor.

Reaffirm: This option has legal consequences that should be considered carefully before a decision is made. A reaffirmation agreement is a contract that puts the debtor “back on the hook” for the debt despite the bankruptcy. This is the downside of reaffirming a debt. If you default in the future at any time, the creditor can repossess the collateral AND sue you for any deficiency balance you may owe. It is the rare exception that a debtor should agree to reaffirm a debt, and it is not an option recommended by The Larkin Law Firm absent special circumstances (ie. lower interest rate or principal balance reduction). The only benefit of reaffirming a debt is that the payments made after the debt is reaffirmed are reflected on your credit report to help you begin to reestablish credit. That being said, there are many other things you can do to reestablish credit after a bankruptcy without reaffirming, and this alone should not be the sole consideration in making a decision to reaffirm.

Retain and Pay: Most secured lenders will continue to accept your monthly payments and allow you to keep the collateral even if you haven’t indicated intent to reaffirm your debt. This is known as the “retain and pay” option. It is an informal option not specifically recognized by the Bankruptcy Code. Retain and Pay is an attractive option if the lender will accept it. However, debtor’s choosing this option must be comfortable with a lack of certainty or predictability. Some lenders like Ford Motor Credit, GMAC and Daimler Chrysler state they will repossess vehicles unless the debt is timely reaffirmed. Other lenders like Toyota typically feel that it is better to receive monthly payments under the informal “retain and pay” option rather than lose money by selling repossessed vehicles at auction prices. It is possible, however, that you think your lender has decided to continue to accept your payments only to wake up one morning and find your vehicle gone. Additionally, if you choose the “retain and pay” option, your billing statements will likely stop being sent to you, because from a legal standpoint, the debt has been discharged and creditors are not supposed to bill you for debts that have been discharged in bankruptcy. Some lenders will resume billing statements provided you send them a request in writing.

The bottom line in choosing which option is best for you is to make sure you understand all of them. It is imperative that you speak with a qualified attorney before deciding how to proceed.

For more information regarding reaffirmation agreement, or for other bankruptcy law questions, contact The Larkin Law Firm at http://www.live-debt-free-now.com

About The Author

Jeffrey D. Larkin is one of the most productive debt-relief attorneys in the region. His innovative law firm is committed to providing intelligent debt solutions custom fitted to his clients’ individual needs. Whether you need to file bankruptcy, re-organize your debt or re-build your financial structure, Mr. Larkin provides a full range of legal services designed to restore financial order to your life.

Mr. Larkin is a California licensed attorney offering services throughout San Diego, Orange, Riverside and San Bernardino Counties. A 1998 graduate of California State University, San Bernardino, Mr. Larkin earned his Juris Doctorate from Thomas Jefferson School of Law in 2002. Since that time, Mr. Larkin has focused exclusively on bankruptcy and insolvency related matters, and has authored dozens of articles regarding bankruptcy and other debt solutions.

From 2002 through 2009, Mr. Larkin served as an associate attorney for the two largest bankruptcy filing firms in San Diego County. During that time, Mr. Larkin handled thousands of cases, and gained invaluable experience serving a broad and diversified client base. In 2008, Mr. Larkin was one of the top five bankruptcy filers in all of San Diego County, according to the United States Bankruptcy Court, Southern District of California.

You can reach Mr. Larkin by e-mail at Jeff@larkinfirm.com or by phone at (760) 692-2269. For more information about The Larkin Law Firm, go to http://live-debt-free-now.com

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When a catastrophic injury or the sudden tragic death of a family occurs, there often are many questions. Frequently, the questions may also be accompanied by a variety of emotional responses ranging from anger, to frustration or even guilt. There may also be immediate concerns that are time-sensitive such as preserving evidence or obtaining witness statements. Many times family, friends or co-workers will recommend an attorney that they used in the past. Other times, however, clients don’t even know where to begin to find a good reputable attorney whom they can trust.

We live in an age of specialization. For example, your doctors specialize in specific areas of medical care. The same holds true with attorneys. When an injury or death occurs due to negligence, one of the best ways to find a reputable attorney is to look for an attorney who is Board Certified in Personal Injury Trial Law. Another consideration will be the geographic location of the attorney in relationship to where the injury occurred or to where the client lives. Most often the client may need to visit the attorneys office several times over the course of the period of representation. The client should take this into consideration when making the decision to hire an attorney.

The fee structure is another consideration. Here it is important to do your research. Most frequently, attorneys that work in this are will propose a Contingency Fee Contract. Under such an agreement, the client generally only pays a fee if there is a recovery, whether by way of an out-ofcourt settlement or as the result of a trial. Fees usually range from 33 1/3% to 40% of the recovery, but can vary from attorney to attorney and case to case. The case expenses such as copy charges, postage, investigators, expert witness fees, medical records costs are kept separately for each client and to the extent that a recovery is obtained are reimbursed to the attorney out of the client’s share of the recovery. Most attorneys will offer a free initial consultation.

So once you have a list of possible qualified reputable attorneys, how do you determine the right attorney to represent you. Once the qualifications and experience issues are resolved, you will need to meet fact-to face with your potential attorney. At these initial meetings, the attorney will be collecting information from you regarding your case. But you will also be collecting information from the attorney. More importantly though you will need to decide if you like this person. When selecting an attorney it is important to understand that you may be spending a lot of time under stressful circumstances with this individual. Select an attorney with a personality that you will be able enjoy working with. You may also find that some law firms will shuffle your case off to support staff and associates with less experience. It is important at the initial interview to determine what aspect of your case will be handled by the attorney with whom you are interviewing.

About The Author

Mark Hefter is a an attorney in private 1 practice in Austin Texas. He is Board Certified in Personal Injury Law and Commercial Law by the Texas Board of Legal Specialization of the State Bar of Texas.

He can be reached by e-mail at mark@hefterlaw.com or through his website at http://www.hefterlaw.com

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