When Congress passed the Fair Debt Collections Practices Act (“FDCPA”) it stated that its purpose is “to eliminate abusive debt collection practices by debt collectors[.]” Congress cited the need for consumer protection because of the “abundant evidence of the use of abusive, deceptive, and unfair debt collection practices by many debt collectors.  Abusive debt collection practices contribute to the number of personal bankruptcies, to marital instability, to the loss of jobs, and to invasions of individual privacy.”

Abusive debt collection practices are just bad news.

On February 22, 2010, the United States Supreme Court declined to hear an appeal from the Fifth Circuit U.S. Court of Appeals on a FDCPA case: Kay v. Gonzales, U.S., No. 09-542. In that case the Plaintiff, Jose Gonzalez, received a letter from the Kay Law Firm. The letter, written on law firm letterhead and unsigned, told Gonzalez, “Please be advised that your account, as referenced above, is being handled by this office.” On the back of the letter was this statement: “At this point in time, no attorney with this firm has personally reviewed the particular circumstances of your account.” Gonzalez sued the Kay Law Firm for violating the FDCPA which prohibits debt collectors from falsely representing or implying that the debt collector is an attorney or that the communication is from an attorney. 

The federal district court found that the disclaimer was sufficient to notify Gonzalez that the collection matter was not being handled by an attorney and the Gonzalez’s case was dismissed. On appeal the Fifth Circuit Court of Appeals found that the letter’s disclaimer on the back was mixed in with “legalese” which may not be sufficient to notify the consumer of the attorney’s non-involvement in the case. The Fifth Circuit reversed the district court dismissal and remanded the case for trial. Gonzalez v. Kay, No. 08-20544 (5^th Cir., 2009). Now that the Supreme Court has denied the Kay Law Firm’s appeal, Mr. Gonzalez will have his day in court.

The Fifth Circuit in its opinion cites the Seventh Circuit Court of Appeals for why it is important to protect against this type of deceptive collection practice:

“An unsophisticated consumer, getting a letter from an ‘attorney,’ knows the price of poker has just gone up. And that clearly is the reason why the dunning campaign escalates from the collection agency, which might not strike fear in the heart of the consumer, to the attorney, who is better positioned to get the debtor’s knees knocking.” 

Avila v. Rubin, 84 F.3d 222, 229 (7th Cir. 1996).

If you receive a collection letter from a law firm, speak to an experienced bankruptcy attorney and learn your rights. Bankruptcy attorneys are trained in matters of debt defense and can help explain your rights under the FDCPA and the federal bankruptcy laws. Don’t let an unscrupulous debt collector get your “knees knocking.”  Contact Haines and Krieger today for a free consultation.

We spend most of our time helping clients deal with complaints against mortgage lenders and other creditors.

But what about when a client has a complaint against Haines & Krieger?

It does happen.  We have helped a lot of Las Vegas residents deal with foreclosure problems, debt collectors and the bankruptcy process.  And on occasion we’ve had a miscommunication with a client where the client’s expectations about the bankruptcy process were different than what we thought we has communicated.

We want to make sure all of our clients and potential clients know, however, that in every case we have always been able to sit down and resolve the issue with our clients to their satisfaction.

We know times are tough.  Especially for members of our Las Vegas community.  And we recognize that our clients are not just purchasing a service.  They’re under a lot of stress when they come to us.  So it’s our aim to do everything within our role to reduce that stress and make the process go as smoothly as possible.

We’re not bankruptcy super heroes (though we’d like to be), and we can’t solve every problem, of course.  And when we can’t, we always do our best to be honest and frank with our clients so they understand the circumstances as well as the limitations.

As Las Vegas’ leading bankruptcy and foreclosure defense law firm, we don’t just see ourselves as a business.  We live in and are part of the Las Vegas community.  And we’re doing what we can to help Las Vegas residents out and help the area get through this crisis.

If you need Las Vegas bankruptcy help, or if you have questions about our services, please do not hesitate to contact us.  We always offer a free initial consultation.  And we always are willing to listen to any concerns or complaints about our services.

While many attorneys advertise their qualifications on their web sites, NO ONE should hire legal counsel based solely upon the results of an online search. However, information you obtain from the internet can be useful in narrowing your search, provided you know what to look for in a prospective bankruptcy attorney. 

First, is the attorney licensed to practice in your area? Usually the attorney’s biography will state his or her bar admissions. Each of the 94 federal judicial districts has a bankruptcy court, and these courts are defined by geographic jurisdictions. More information concerning federal court geographic boundaries can be found here.

An attorney who is not a member of the bar where you reside will have to petition the court for admission pro hac vice (“for this event only”). An attorney who is not active in a court may not have useful information regarding the bankruptcy judge, the trustee, local customs and rules, or contacts to make your case go smoothly.

Second, how long has the attorney been practicing bankruptcy law? The federal bankruptcy laws are complex and attorneys spend years learning how to successfully navigate a case from start to finish. Don’t be a test case or a learning experience for a new attorney.  

Third, does the attorney belong to any professional associations? The National Association of Consumer Bankruptcy Attorneys and the American Bankruptcy Institute are two outstanding resources for attorneys to keep current on changes in the bankruptcy law. Member attorneys also receive training and information that is beneficial to their clients.

An experienced bankruptcy attorney is easy to find, if you know the tell-tale signs. Use these signs to narrow your search, and then interview your candidates either by phone or in-person. Your choice of a bankruptcy attorney is a serious matter and should be carefully considered, so get to know your attorney’s qualifications before your make a hiring decision.  Contact Haines and Krieger for a free consultation and our experienced bankruptcy attorneys will be happy to discuss our qualifications.

We could lecture you all day about the tricks and traps and sneaky strategies of credit cards.  But nothing will make you as wary of credit cards (or laugh as much at them) as this video by Mark Fiore titled "Credit Card Reform in Action" in tribute to the Credit CARD Act of 2009 (which just became effective as of February 22, 2010).

If you’re faced with mounting credit card debt and seeking good Las Vegas bankruptcy attorneys to help with debt negotiation or provide Las Vegas bankruptcy help, contact us for a free initial consultation.  You can discuss your situation over the phone or meet with a Haines & Krieger attorney in person in our Las Vegas bankruptcy law office.

The government hasn’t done a whole heck of a lot to help consumer debtors.  But one positive step it took was passing the Credit CARD Act of 2009, which goes into effect TODAY:  February 22, 2010.

The CARD Act provides some solid protections to consumers.  However, the credit card companies wouldn’t be as profitable as they are today if they weren’t good at coming up with new and creative ways to gouge consumers.

As the Center for Responsible Lending says, "It pays to remain alert to tricks, traps and any changes in your statement."

Examples include:

1.  Strange and arbitrary charges on your statement, such as charges for purchases abroad, for receiving a paper statement, for having a zero balance and even for vague reasons such as "account management."

2.  Closing your account or reducing your credit limit without notice.  The CARD Act requires a 45-day notice before a credit card issuer can penalize you or raise your interest rate on a newly lowered credit limit.

3.  Credit card issuers can still change terms on credit cards for small businesses without notice.

4.  Credit card issuers can still raise your interest rate.  Though they are required to give you 45 days notice.  Also, you have the option of not accepting the rate increase and canceling the card.  And if you have a balance, you then have 5 years to pay off that balance.

5.  Raising your monthly minimum payment by making it a percentage of your total balance.

6.  Requiring customers to submit to arbitration or mediation to resolve a dispute and precluding customers from suing in a court of law.  The CARD Act prohibits credit card issuers from doing this any longer.

If you’re struggling with credit card debt and considering filing for bankruptcy in Las Vegas as well as non-bankruptcy options, it helps to have good Las Vegas bankruptcy attorneys to provide the Las Vegas bankruptcy information you need to deal with your debts and get a fresh start.

Please contact us for a free consultation to learn more about your options and have the benefit of Haines & Kriegers’ extensive debt negotiation and bankruptcy experience on your side.

Bankruptcy law has its own confusing language. It is a good idea to have a basic understanding of bankruptcy terms before your initial consultation with a bankruptcy attorney. While most bankruptcy attorneys are very skilled at explaining the bankruptcy process and its impact to their clients in plain language, sometimes technical terms can sneak into the conversation. Below is a very general explanation of the most common bankruptcy terms:

Automatic stay – a court injunction that stops all collection action against the debtor. The automatic stay is effective immediately upon filing the bankruptcy

Bankruptcy estate – the debtor’s legal and equitable interest in property at the time the bankruptcy case is filed

Chapter – a section of the bankruptcy code. Some chapters are general and apply to all cases; other chapters apply only to specific bankruptcy cases.

Debtor – an individual who files a bankruptcy petition

Discharge – a court permanent injunction prohibiting the collection action against the debtor personally for any debt discharged in the bankruptcy

Equity – the value of a debtor’s interest in property after subtracting monetary liens

Exemptions – legal protections that shields property from creditor collection

Means test – a calculation of the debtor’s income and expenses meant to determine the debtor’s ability to pay creditors

No-asset case – a Chapter 7 case where there are no assets available to satisfy any portion of the creditors’ unsecured claims

Nondischargeable debt – a debt that cannot be absolved through bankruptcy and the debtor remains personally liable after the bankruptcy case has closed.

Petition – the papers filed by the debtor that commences the bankruptcy.

Plan – the debtor’s description of repayment of debt during a Chapter 13 bankruptcy

Preference – a debt that was paid prior to the bankruptcy when the debtor was insolvent and unable to pay other creditors

Proof of claim – the creditor’s claim and verification of a debt

Reaffirmation agreement – an agreement between the debtor and creditor that entitles the debtor to retain property in exchange for continued personal liability to pay a debt (common examples are a car or house loan)

Schedules – the detailed description of the property, debts, income and expenses of the debtor

Secured creditor – a creditor holding a lien against property of the debtor’s as security for payment of a debt

341 meeting – a mandatory meeting that the debtor must attend with the trustee. The debtor’s creditors are invited to the 341 meeting and are allowed to ask questions.

Trustee – an individual appointed to oversee the debtor’s bankruptcy case. This is not the bankruptcy judge.

Don’t be intimidated by the technical language of bankruptcy.  Let Haines and Krieger guide you during your case.
 

Student loans have a unique place in the world of debt:  Unlike credit card or gambling debt that can be reduced, or a mortgage where the homeowner as a last resort can walk away, there is no mechanism for simply getting rid of student loan debt.  (Though there are bankruptcy law strategies for dealing with it.)

And according to a post on The Wall Street Journal’s blog The Juggle, this indisposable aspect of student loan debt is taking its toll on our society and our economy.  Especially in the current recession where many people with college and gradute degrees are unable to find jobs after incurring significant amounts of student debt.

What is the ripple effect of student loan debt?  People are working jobs they might not otherwise take, calling to mind the concept of indentured servitude.  People are putting off major life decisions like marriage and having children.  Related debt problems may harm credit scores, preventing people from buying homes or cars.  And calls from credit collection agencies who take over the payment collection for student loan debt add even more stress.

The post notes that in the current economic climate, there’s been a fairly passionate reaction to student loans.  There’s even now a Facebook group called Forgive Student Loan Debt with over 27,000 members and its own website.

If you’re struggling with student loan debt, clearly you’re not alone.

And if you’re tired of "juggling" your debts–whether student loan, credit card, mortgage, medical or other–and ready to work with good bankruptcy attorneys in Las Vegas who can really help, we encourage you contact us for a free initial consultation.  You can discuss your situation over the phone or meet with a Haines & Krieger attorney in person in our Las Vegas bankruptcy law office.

The two most common types of consumer bankruptcies are Chapter 7 and Chapter 13. In a Chapter 7 all of the debtor’s property is placed into an estate which is controlled by the bankruptcy trustee. While no property physically changes hands (at least not at the beginning of the case), the trustee and bankruptcy court have broad legal power over your property. If you have money in a bank account on the day you file, your bank account and money are assets of the bankruptcy estate. You are no longer free to transfer funds or assets as they now belong to the bankruptcy estate.

Take for example that you have $5,000 sitting in your checking account on the day you file bankruptcy. That money is property of the Chapter 7 bankruptcy estate and is no longer yours to control or use. If you take the $5,000 out of the bank the day after filing to pay your mortgage payment and other bills, the Chapter 7 trustee can seek to recover those funds, either from you or from the payee.

During a Chapter 13 bankruptcy the debtor retains possession and control over his or her property, and is free to use any funds in the debtor’s bank account. An accounting is performed and the debtor’s property is classified as either exempt or non-exempt. Non-exempt property is not taken from the debtor (as is often the case in a Chapter 7), but the Chapter 13 debtor is required to pay unsecured creditors a sum equal to the amount of non-exempt equity. For instance, if there is $5,000 in the debtor’s bank account, the debtor may only be able to exempt a portion of the entire sum. The non-exempt portion must be paid to the creditors through the debtor’s Chapter 13 plan (over three to five years).

Cash in a bank account can be a problematic issue for a debtor. Avoiding these problems is the joint responsibility of the debtor and the debtor’s bankruptcy attorney. Timing is critical to minimize your financial exposure. The experienced attorneys at Haines and Krieger can help you maximize the benefits of the bankruptcy laws and navigate around any pitfalls.  Contact us today for a free consultation. 

Lately municipal bankruptcy has been the subject of many news features as economic troubles press cities to consider their legal options. San Diego and Los Angeles are two major cities that are reportedly considering federal bankruptcy protection. 

While federal bankruptcy protection has been available to U.S. cities since the 1930’s, only a few hundred have actually filed. Chapter 9 of the Bankruptcy Code provides a financially distressed municipality the opportunity to reorganize its debts under federal protection. A “municipality” as defined in the Bankruptcy Code includes cities, counties, and special districts. This definition does not include states.

A Chapter 9 bankruptcy can only be commenced after the governing body specifically authorizes the filing. Twenty-six U.S. states have prohibited their municipalities from filing bankruptcy: Alaska, Delaware, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Maine, Maryland, Massachusetts, Mississippi, Nevada, New Hampshire, New Mexico, North Dakota, Oregon, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Virginia, West Virginia, Wisconsin, and Wyoming. 

Once filed the federal bankruptcy law’s automatic stay provision enjoins creditors from taking any collection action against the municipality. The automatic stay provides an opportunity for the municipality to raise new revenues, renegotiate contracts, or restructure its debt without pressure from creditors. Chapter 9 is tricky business for the bankruptcy court because the Tenth Amendment to the U.S. Constitution and section 904 of the Bankruptcy Code prevents a federal bankruptcy court from interfering with the city’s political or governmental powers. The bankruptcy judge is largely a facilitator of the restructuring process.

The essence of a Chapter 9 bankruptcy is that it gives the municipality an opportunity to reorganize and restructure its debts through an agreement with its creditors called a “Plan of Adjustment.” If a creditor cannot agree with the municipality, Chapter 9 allows the bankruptcy court to force the municipality’s Plan of Adjustment on the non-consenting creditor. The bankrupt municipality is also empowered to accept or reject contracts and leases through the Plan of Adjustment.

Chapter 9 municipal bankruptcy is a very rare and special bankruptcy case. The stigma and complexity of Chapter 9 makes it a last option for U.S. municipalities. However, if the debt problem is serious and substantial enough, the federal bankruptcy laws can protect a city of millions and give it a chance for a fresh start, just like it can protect an individual or family in financial distress.  If your family is experiencing financial distress, contact Haines and Krieger for a free consultation.

You probably think I’m talking about our national deficit and the possibility that our President could file Chapter 7 for the entire U.S.But I’m referring to Presidents Thomas Jefferson and Abraham Lincoln.  Because in the bankruptcy world, we recognize not just their birthdays, but also the fact that they both dealt with bankruptcy.

I think it says something very powerful about our system that two people who both dealt with bankruptcy went on to become two of the greatest and most successful presidents in our history.  In other words, succeeding on a personal level and being a good person is really separate from your ability to manage financially.

In Jefferson’s case, he had over $100K in debt at the end of his life.  And in Lincoln’s, he spent nearly 20 years repaying debt after unsuccessfully trying to open a store that didn’t do so well.  Notably, there cases were well before the modern era of bankruptcy.  And as a result, they struggled under their debts for a much longer time.

Today, Lincoln might have filed a Chapter 7 bankruptcy and resolved both his personal and business debts within a 4 to 6 month period.  And Jefferson, with his much larger debts, may have needed to file for Chapter 11 to reorganize his finances.

Fortunately for Las Vegas residents, options such as Chapter 7, Chapter 11 and Chapter 13 all exist to help us move on with our financial lives when necessary.  And concepts such as loan modification and foreclosure mediation programs have evolved as well to help stop foreclosure in Las Vegas.

As a result, Americans are able to sign their own Declaration of Debt Independence and do not have to spend four score and seven years repaying their debts.

For more Chapter 7 help in Las Vegas, Chapter 13 help in Las Vegas or bankruptcy information in Las Vegas, as well as for help with small business bankruptcy in Las Vegas, please contact us for a free initial consultation.