Bankruptcy Information

 Back in July, 2010 I reported on the 9th circuit case of Mwangi v. Wells Fargo Bank, N.A., “Wells Fargo Won’t Stop Freezing Bank Accounts.” Our local group of attorneys here in the Central District of California have it on good word from sources inside Wells Fargo’s bankruptcy department that the bank continues to freeze accounts while the litigation case is reviewed by the bankruptcy court in Nevada.  The Mwangi case has been remanded back to the bankruptcy court to determine whether Wells Fargo’s continuation of the administrative freeze and retention of the account funds claimed exempt, in the absence of instructions from the trustee, was reasonable in light of the debtor’s demand that the subject account funds be released for their use.

This is a case to watch as it affects all debtors filing bankruptcy, clients of Wells Fargo Bank, N.A. and the Automatic Stay under 11 U.S.C. § 362(a).  On January 21, 2011 Christopher P. Burke, Esq. and Scott C. Borison, Esq. attorneys for Eric Mwangi and Pauline Mwicharo [Plaintiffs] filed case no. 11-01

Read full post…

Tags: Accounts, Bank Accounts, Freezing Bank, Freezing Bank Accounts

When you file bankruptcy you are supposed to list any current lawsuits you have against anyone else, such as a medical malpractice suit, as well as any potential claim against a third party which claim may later result in you filing a lawsuit. Your lawsuits and claims are part of the bankruptcy estate. The trustee can either prosecute the lawsuit in your behalf or he can sell the claim or lawsuit and distribute proceeds to your creditors.

Frankly, some people do not list potential claims and possible future lawsuits. They figure they can file a lawsuit after the bankruptcy is over and that the trustee will not find out about it. One problem with this debtor strategy is that the person you later sue can dismiss the lawsuit because you did not list the claim in your bankruptcy.

I read a post in the Los Angeles Bankruptcy Law Monitor about a court which applied the theory of judicial estoppel to defend a lawsuit by a plaintiff who had recently filed bankruptcy and did not list the potential lawsuit as an asset.

Read full post…

Tags: Bankruptcy, Bankruptcy Schedules

A new report from Javelin Strategy & Research uncovers some potentially troubling numbers about the changing face of identity theft. Here’s a look at the report’s findings and some reminders about what you can do to protect yourself, your identity, and your credit.

• In total, fewer people were victimized by identity theft in 2010: The number of identity theft cases dropped by a reported 28 percent from 2009 to last year – reports in 2010 dipped to the 2007 level. Additionally, it seems the average dollar amount of fraud committed by identity thieves dropped slightly (from $4,991 in 2009 to $4,607 last year). The group speculates that a decrease in corporate data breaches can be credited with the per-case drop-off.
• More expensive fraud for individuals: While the total number of identity theft cases decreased last year, the cost of such incidents for victims rose. In fact, Javelin reports that the jump was large – 63 percent – up to $631 from $387 in 2009. This su

Read full post…

Tags: Identity, Identity Stolen

A bankruptcy client sent me a wonderful email yesterday.  ”I can finally see light to get on with my life.”  Why?  ”I got the job!”

Bad credit was no longer blocking him from getting the job he wanted.

My friend had been out of work for more than two years; and while he was out of work his credit had been completely shot.  And bad credit had been holding him back.  Filing bankruptcy got him the job.

He needed everyone of his bad debts to be reported as “in bankruptcy” on his credit report.   As soon as they did, he got clearance for a Federal government job.  A job he had been turned down for, just six weeks before.

I’m a lawyer in Northern Virginia.  I see a dozen people every month who have clearance issues on their jobs.  And it’s amazing how many people have it in their heads that bankruptcy is the worst thing you can have on your record.

That’s totally wrong.  The worst thing you can have when an employer checks your credit is–bad credit.  Unpaid bills.  Charge offs, repossessions.  All those things are career killers.<

Read full post…

Tags: Bad, Bad Debt

Since the housing boom of the early 2000s, the housing picture in the U.S. has changed dramatically, as anyone struggling to make mortgage payments each month already knows. But exactly what is the state of mortgages and foreclosures right now in the country? Here’s a look at some indicators that say a lot.

Lowest Homeownership Rate In More than a Decade

Recent data released by the Census Bureau (and reported at Credit.com) show that home ownership in the United States has dipped to its lowest level since 1998:

• In the fourth quarter of 2010, 66.5 percent of Americans reported owning their own home.
• In 2009, 67.2 percent of the nation claimed homeowner status; the drop reflects the continued effects of the recession on income and ability to make mortgage payments.
• At its peak in 2004, as many as 69.2 percent of Americans reported owning a home.

Just as subprime loans were found to disproportionately affect non-white home buyers, it seems that foreclosure rates are currently higher among that segment of the population: in 2007, the number of African Americans that owned a home was reported at 48 percent; a year later, the number had already fallen to 44.8 percent. S

Read full post…