search here
Month: February 2018
Bankruptcy opinions may change the law

On Behalf of O’Brien Law Firm, LLC

Posted on: February 8, 2018

Mississippi homeowners who are struggling to pay their mortgages might be interested in learning about a couple of bankruptcy court rulings in Ohio. When people file for Chapter 13 bankruptcy, they may be able to cram down second mortgages on their homes. The rulings also found that first mortgages may sometimes be crammed down as well.

A cramdown in Chapter 13 bankruptcy means that a second mortgage may sometimes be transformed into unsecured debt, meaning that the lien against the home will be destroyed. The homeowners are then able to concentrate on catching up their first mortgages during their court-approved repayment plans, which can help them to save their homes from foreclosure. At the end of the repayment period, the remaining unsecured debt balances are discharged, including the second mortgages on the home.

A cramdown only happens when a debtor is upside-down on his or her home to the extent that no part of the second mortgage is secured by the house. In two cases in Ohio, the bankruptcy courts also found that first mortgages could be crammed down or transformed into unsecured debt when the debtors owe more on their homes than they are worth. In the case of first mortgages, the cramdown is only on the amount that is owed above the fair market value of the home. A third ruling in Ohio found the opposite, however.

The Ohio opinions allowing first mortgages to be crammed down in bankruptcy could potentially change bankruptcy law everywhere. People who are unable to make their mortgage payments might benefit by talking to experienced bankruptcy lawyers to learn whether or not Chapter 13 bankruptcy might be an option for them. Chapter 13 bankruptcy might help people to stop foreclosure and other types of collection actions so that they can get back on their feet.

Read More
Abusive debt collector practices are unlawful

On Behalf of O’Brien Law Firm, LLC

Posted on: February 7, 2018

You may think that it is unavoidable to deal with debt collectors after you are deeply in debt. While it may be helpful to speak with collectors to see if you can work out a reasonable payment arrangement, some collection practices are considered abusive and are against the law. You and others might be interested in learning the differences between permissible and unlawful methods to collect a debt.

The U.S. Federal Trade Commission prohibits debt collection practices that are deceptive, unfair or abusive. The Fair Debt Collection Practices Act protects you from such collection methods as the following:

  • Foul or abusive language on the phone by collectors
  • Repeated, harassing phone calls or calls at inconvenient times of the day and night
  • Phones calls at your workplace, if you specify the collector cannot contact you at work
  • Threats of jail time or fines
  • False statements of being an attorney, government representative or member of law enforcement
  • Intimidation or threats of physical harm

There are less abusive, but no less unlawful, methods a debt collector might use, which often trick unsuspecting debtors. For example, a collection agency might send you documents that intentionally resemble legal or government papers. A collector may ask you to sign paperwork that he or she deceptively assures you is not a legal document, or the other way around. A debt collection agency may contact other members of your family only once to obtain your contact information, but you should know that the law forbids collectors from talking about your debt to anyone else but you or your attorney.

Debt collection practices may be confusing. If you are in doubt as to whether a collector is using unlawful tactics to collect from you, or are wondering what steps can be taken to stop creditor and debt collector harassment, it may be in your best interests to contact an attorney.

Read More
The 3 most common reasons people go through bankruptcy.

On Behalf of O’Brien Law Firm, LLC

Posted on: February 2, 2018

Bankruptcy no longer has the social stigma it once did. However, those who are considering bankruptcy may take comfort in knowing what has caused others to seek financial relief through this legal process. Although reasons for financial struggles vary from family to family, three of the most common causes of bankruptcy that are often cited by those petitioning for relief from the court include:

  • Medical debt. Whether you have health insurance or not, a medical emergency can quickly lead to insurmountable debt. Even those with insurance can find high deductibles unmanageable. As a result, medical debt is the most common cause for bankruptcy.
  • Unemployment. It is simply impossible to make ends meet without an income. Job opportunities can be scarce, and many families continue to struggle to find adequate employment.
  • Divorce. The end of a marriage is also the end of a financial partnership. In many cases, the income relied upon by the family has not changed, but the financial needs often double as the family shifts from one household to two.

recent publication in the Chicago Tribune notes that these three factors contribute to almost 90 percent of all bankruptcy petitions within the United States.

Is bankruptcy right for me? The decision to go into bankruptcy is not an easy one. Those who are struggling financially are wise to take three different questions into account when attempting to determine if bankruptcy is right for their family. First, how much of an income or savings is at your disposal? Second, how much do you owe? Third, how much do you own in assets (home, car, business interests)?

Gather this information together and seek legal counsel. An attorney experienced in bankruptcy matters will be able to answer your questions. Questions like what can you keep in bankruptcy and how will life look after the bankruptcy process is complete.

Read More
What is an “automatic stay” in bankruptcy?

On Behalf of O’Brien Law Firm, LLC

Posted on: February 1, 2018

Bankruptcy is a legal process that can help those who are struggling financially find a fresh financial start. Those who have considered this process have likely stumbled on a number of legal terms, including “automatic stay.” This term refers to a court order that is granted after an applicant is approved for bankruptcy.

What happens when an automatic stay is issued? This court order requires creditors to stop contacting you. In addition to ceasing contact, these creditors cannot file a lawsuit in an attempt to gain payment or enter a lien against your property.

The automatic stay can also stop a landlord from evicting a tenant that is going through bankruptcy if the eviction is in connection to a demand for rental payment. The court order can also stop garnishment. Garnishment is a process that allows a creditor to remove money directly from your paycheck. When you get the paycheck from your employer, the creditor would already have taken a portion of payment from the check. When an automatic stay goes into effect, the garnishment should stop.

This order also extends to include utilities. A person that is going through bankruptcy is often protected from utility disconnection.

Does the applicant need to do anything to make the automatic stay go into effect? Essentially, no. The applicant just needs to put together a successful application for relief through bankruptcy. If granted, the automatic stay goes into effect automatically (hence the name).

This is just one of the many legal terms to understand before determining if bankruptcy is the right option for you. An experienced attorney can discuss this and other terms and help you decide the best way to get back on your feet.

Read More
“From my initial consultation throughout the entire process, Mr. O'Brien and his staff handled my legal matters with the utmost professionalism and care. I am especially grateful for Crystal who patiently answered all my questions and put my mind to ease over and over. Thank you O'Brien Law Firm, LLC!”
– C.H.
“Thank you so much for the advice. I knew I chose the right attorney!”
– C.H.

Don’t Wait Any Longer

Request a Free Initial Meeting Now