The “Co-Debtor Stay,” also known as the “Co-Debtor Automatic Stay,” is a feature of a Chapter 13 Bankruptcy designed to protect a debtor by insulating him from indirect pressures from his creditors exerted through friends or relatives.  The Co-Debtor Stay stops all collection actions against any individual who is obligated on a consumer debt owed by the debtor. The Co-Debtor Stay continues until the Chapter 13 case has concluded.

The Co-Debtor Stay is not a direct protection intended for the co-debtor. The debtor’s Chapter 13 Bankruptcy will not discharge the co-debtor’s responsibilities to the creditor. It will, however, prevent collection action by the creditor against the co-debtor (e.g. lien perfection or even adverse notation on the co-debtor’s credit report) during the pendency of the Chapter 13 case. 

The Co-Debtor Stay does not prohibit collection on a debt incurred in the ordinary course of business by the debtor. Additionally, tax debt is generally not considered a consumer debt. It is important to note that the Co-Debtor Stay does not apply at all to Chapter 7 Bankruptcy cases.

The Co-Debtor Stay is effective immediately upon the filing of the debtor’s Chapter 13 petition and continues until the case is closed, dismissed, or converted to Chapter 7 or 11. The Bankruptcy Court can also modify or terminate the Co-Debtor Stay upon the motion of a creditor. The creditor may be successful in this type of motion if the codebtor received "consideration" for the debt (e.g. you cosigned a car loan for your brother, who actually owns the car), if the debtor’s Chapter 13 plan proposes to not pay the debt, or if the creditor’s interests would be irreparably harmed by continuation of the Co-Debtor Stay.

A knowing violation of the Co-Debtor Stay is contempt of court and punishable by damages, including attorney’s fees.  Any collection action taken by a creditor in violation of the co-debtor stay is void.
 

The Co-Debtor Stay is a powerful tool to prevent collection action in Chapter 13 Bankruptcy. If you are contemplating a bankruptcy filing and have co-debtors, consult with an experienced bankruptcy attorney. Call Haines and Krieger today for a free consultation.

Sometimes you don’t want to be #1.  And we were extremely happy to hear earlier this month that Las Vegas has dropped to #5 for the highest foreclosure rate in the U.S.

The positive drop is being attributed by many to the Nevada Foreclosure Mediation Program, including Channel 8′s LasVegasNow.com ("Nevada No Longer Leads in Foreclosures") and on SEC Realty’s real estate blog.

With 75 new mediators recently added to the already existing team of 95 mediators, there are now 170 foreclosure mediators helping Nevada homeowners sit down with their mortgage lenders and figure out solutions that enable them to stay in their homes and avoid foreclosure.

Help Stop Foreclosure Las Vegas
On this blog we’ve been helping Las Vegas residents fight against foreclosure and educate themselves as to the options available.  And there are almost always options available.  So it’s good to see that the efforts of Nevada’s citizens and institutions are finally having an effect.

To learn more about foreclosure and new bankruptcy laws that have been created to help protect Nevada homeonwers, please contact us for a free foreclosure consultation.  We’re not only good bankruptcy attorneys in Las Vegas, we’re part of the Las Vegas community as much as you are, and we want to do our part to help you and to help Las Vegas get back on our collective feet.

I recently read a newspaper advice column written by a Certified Financial Planner who suggested that, as a practical matter, there is no difference between ignoring your credit card debt and filing bankruptcy. Well, let’s look at the “practical effects” of ignoring your credit card debt:

First, ignoring credit card obligations will cause a persistent series of harassing telephone calls and letters from credit card companies, collection agencies, and finally law firms. Phone calls are systematically made to the debtor’s home and work, and sometimes to third parties including neighbors, extended family, and your employer. The agencies that collect credit card debt are experts at telephone harassment – it is one of their most important weapons.

Bankruptcy, on the other hand, stops all collection calls.

Second, your credit score will be ruined on a continuing basis. For each month that a credit card goes unpaid, the creditor will report negatively to the credit reporting bureau. Additionally, collection agencies will often further harm your credit score by “resetting” the date of last activity when the account is transferred to a new collector.

Bankruptcy stops all negative reporting. Discharged debts should be identified as “Discharged in Bankruptcy” with a zero balance. The debtor’s credit report and score can begin to recover from the date of the bankruptcy discharge.

Third, you can (and will) be sued. The typical consumer will undoubtedly lose a lawsuit over a legitimate debt. The resulting judgment may include substantial penalties, interest, court fees, and attorney fees. A judgment creditor can collect from your wages, your property, and your bank account. While there are some people who are judgment proof, they are the exception and not the norm. Most people have assets that a judgment creditor can attack.

Bankruptcy prevents all lawsuits and even stops collection actions from judgment creditors.

Many consumer advocates have likened credit card debt to an illness. Like any illness, the cure is not found in ignoring the problem, which will only make things worse. If you are sick from credit cards and are unable to pay your debts, get a free consultation from Haines and Krieger and find the cure!

http://www.upi.com/Real-Estate/2009/12/15/Poll-Finds-2-Million-Unemployed-Lost-Their-Homes/9891260897906/

Bankruptcy filings in Nevada were lower in November (2,118) than they were in October (2,789) according to the Bankruptcy Court in Nevada.  That’s the lowest the numbers have been since February 2009 (1,674).

Good news for Nevada’s economy and for Las Vegas residents? 

Perhaps in the short term.  But not necessarily for the year to come in Nevada, the state with the highest rate of bankruptcy filings per person this year.  Especially when you take into account that people tend to save money leading up to the holidays and incur more debt on gifts, travel, etc. for the holidays. 

So stay tuned for Nevada bankruptcy filings for December and January.  If those continue to decrease, then that may bode well for the Las Vegas and the Nevada economies.  However, with unemployment rates continuing to soar and many adjustable rate mortgages (ARMs) set due to re-set in the coming months, odds are that the bankruptcy filing numbers will hold steady if not increase in the coming months.

If you’re worried about personal bankruptcy Las Vegas and seeking helpful Las Vegas bankruptcy information, let us help you figure out your options.

Haines & Krieger has been at the center of the bankruptcy and foreclosure crisis in Las Vegas and has been providing Las Vegas bankruptcy help to get residents back on their feet.

Contact us for a free initial consultation to get your questions answered and learn how to get the full benefit of the bankruptcy laws that were created to protect American citizens.

The high rate of foreclosures is likely to continue, and median home prices will continue to fall, through 2010 and even into 2011 according to data from RealtyTrac as reported by the Las Vegas Review-Journal.

This despite reported improvements in the U.S. economy.

The culprits?
1.  Adjustable Rate Mortgages (ARMs) due to re-set in the coming months, and continuing to re-set through 2011.
2.  Unemployment, which continues to be high.  Especially in Nevada and Las Vegas.

The consequences?  About 4 million more foreclosures to come, with about half of those coming from four states:  Nevada, Arizona, California and Florida.

Some parts of the country had a particularly high rate of ARMs.  Some have had very high unemployment.  Nevada, unfortunately, has been experiencing both of these phenomenon.

What can Las Vegas homeowners do to prepare?  Start planning now.  You do have options (including the Nevada Foreclosure Mediation Program), and the sooner you understand them, the better you’ll be able to protect yourself.

If you want to help stop foreclosure Las Vegas, talk with a trustworthy, experienced, good bankruptcy attorney in Las Vegas.  Go over your financial situation.  Raise your concerns.  Ask questions.  (The only bad questions are the ones you don’t ask!)

Contact us for a free foreclosure consultation.  We’ll help you figure out the best strategy for protecting your home and getting your finances under control.

When we were children a preference was a good thing, such as: I prefer Johnny on my team for kickball; or my preference is chocolate ice cream. In the bankruptcy world a preference payment is a bad thing. A preference payment is a transfer of money by a debtor, on account of a pre-existing debt, that is made while the debtor is insolvent, and gives the creditor more than it would receive from the liquidation of the debtor’s assets during a chapter 7.

The idea behind a preference payment is that the debtor chose to pay a certain creditor instead of other creditors – the debtor “preferred” this creditor. Preference payments are unfair to the debtor’s other creditors, and, if the transaction took place within 90 days, the bankruptcy trustee can compel the turnover of this preference payment to the bankruptcy estate for equal distribution to all creditors. And there is one other important caveat to preference payments: if the payment is made to an “insider,” then the avoidance period is one year. An “insider” is a generally a relative, business partner, etc. who has a special relationship with the debtor.

A common preference payment scenario is a payment by the debtor to a family member on account of a previous debt. For example: Mary borrows $3,000 from her mother to help pay bills. In March Mary receives her income tax refund and repays her mother the $3,000. Mary files bankruptcy in May, and doesn’t tell her bankruptcy attorney about the March payment. The trustee learns of the payment while examining the debtor’s bank statements and sues Mary’s mother to recover the $3,000 for the bankruptcy estate.

This awful situation for Mary and her mother can be easily avoided. First, do not withhold information from your attorney. Second, provide your attorney with any requested documents. Third, do not pay any creditor (or relative) without first consulting with your attorney. Cooperating with your attorney can ensure that your bankruptcy case is preference-free.  Call Haines and Krieger for a Free Consultation today!

Is the Nevada Foreclosure Mediation Program working for Las Vegas residents?

The answer is a clear "yes."

We’ve already helped numerous homeowners reduce their mortgage payments and keep their homes.  And a recent article on KVBC News 3′s website supports our experience.

Nevada’s Foreclosure Mediation Program–the strongest such program in the U.S.–gives Nevada homeowners who receive a foreclosure notice the opportunity to request a mandatory mediation session with a representative from their mortgage company as well as a neutral foreclosure mediator.  (Plus homeowners typically bring their own lawyer to the session.)

Just 6 months into the program approximately 3,300 requests for foreclosure mediation have poured in.  And judges, lawyers, mediators and Program Director Verise Campbell all say the program is definitely succeeding.  One lawyer mentions that he’s worked on about 40 cases and that about 2/3 of those have resulted in the owner keeping their home.

Haines & Krieger has experienced similar results, keeping most foreclosure mediation clients in their homes and saving them thousands of dollars.

Most mediation sessions take about 4 hours.  And, given Congress’ failure to pass mortgage cramdown legislation, Nevada’s Foreclosure Mediation Program is the most powerful tool that Las Vegas homeowners have to protect themselves and their homes.

Help Stop Foreclosure Las Vegas
They key to stopping foreclosure, especially in Las Vegas, is having good Las Vegas banruptcy attorneys who are experienced with the ins and outs of the foreclosure process and the mortgage industry. 

For the best Las Vegas bankruptcy information and foreclosure information, contact us for a free foreclosure consultation.  We’ll help make sure you get the full benefit of the laws that were created to protect you as a citizen of America and of Nevada.

Haines & Krieger has been very involved with and paying close attention to the Nevada Foreclosure Mediation Program.

In the wake of Congress’ failure to once again pass legislation permitting mortgage cramdown (which would have let bankruptcy judges modify the terms of mortgages to help homeowners), Bankruptcy Bill has seen fit to pen a tongue-in-cheek bankruptcy haiku on the topic. 

With permission from Bankruptcy Bill himself (and apologies to Jackie Gleason), we are pleased to share the latest in bankruptcy poetry:

Click here to see previous Haines & Krieger posts on the topic of mortgage cramdown, including the BAPCPA Man vs Mortgantua battles.

And if you’re a Las Vegas homeowner facing foreclosure or mortgage-related financial problems, please contact us for a free initial foreclosure consultation.

With good bankruptcy attorneys in Las Vegas, you can get the maximum protections of the bankruptcy laws that have been created to protect Nevada residents, including the Nevada Foreclosure Mediation Program which gives Nevada homeowners facing foreclosure the ability to request a mandatory mediation session with their mortgage lender and a neutral foreclosure mediator.

Get in touch with us for more information.  We’re happy to answer all of your questions and help stop foreclosure Las Vegas.

For families in financial difficulty, sometimes paying for even the most basic things is a struggle. Fortunately, the bankruptcy code protects debtors from the disconnection of necessary utilities like water, electricity or gas services. Specifically, a utility company may not alter, refuse, or discontinue service to an existing customer solely because either (1) the customer filed for bankruptcy protection; or (2) the customer failed to pay a pre-petition debt to the utility.

However, this protection is limited. Within 20 days after the bankruptcy filing the debtor must give the utility company "adequate assurance of future payment." This assurance is usually in the form of a new security deposit. The law allows the utility company to keep any previous security deposit and apply that deposit to your prior bill. The amount of the new security deposit is negotiated between the parties, but can be decided by the bankruptcy court if no agreement is reached. If the debtor does not provide "adequate assurance of future payment" within the 20 day time period, the utility provider may discontinue services.

A few years ago the Fifth Circuit Court of Appeals decided that a cable television provider is not a utility service for purposes of the bankruptcy code. In issuing its decision, the Court said:

“This section is intended to cover utilities that have some special position with respect to the debtor, such as an electric company, gas supplier, or telephone company that is a monopoly in the area so that the debtor cannot easily obtain comparable service from another utility.”

By analogy internet and cell phone services would not be considered utilities by the bankruptcy courts.

If your family is overwhelmed by debt and facing a utility disconnection, consider bankruptcy as a way to "keep the lights on" and provide some relief. An experienced bankruptcy attorney can explain how the bankruptcy code can prevent a utility disconnection and stop all creditor collection action.  Call Haines and Krieger for a Free Consultation today.