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07

Sep 2019

Announcement: What to Expect at Your Bankruptcy Hearing

Posted by / in Blog, Virginia Bankruptcy, Weekly Posts /

What to Expect at Your Bankruptcy Hearing

For most people, your only bankruptcy hearing is what’s called the “meeting of creditors.”  (We almost never actually have creditors show up. We can also call it your “trustee hearing.”)

Here’s a video that explains where to go, best places to park, what to bring and what questions you’ll be asked.

I’ll be there as your lawyer, but you can review this video to know what to expect.

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14

Dec 2019

Credit Card Offers Come Faster Than You Expect

Posted by / in Weekly Posts /

After bankruptcy credit card offers come faster than you think

Have you heard the lie? The lie that filing filing bankruptcy means seven years with bad credit. You after bankruptcy credit will be better than most people expect.

After bankruptcy credit card

                                                 Here’s the after bankruptcy credit card offer “Eddie” got two months after his bankruptcy was approved.

 

The truth about after bankruptcy credit

The truth is the opposite of that bad credit lie.  Two months after bankruptcy, you start getting pre-approved credit card offers. (I know that’s true,because a lot of the offers, by mistake, come to my address.)  After thee years, most people have the best credit of their lives.

Are you putting off filing bankruptcy in order to “protect your credit?”  Then we need to talk.

Eddie, not his real name, got his pre-approved $700 credit card offer, ten weeks after his bankruptcy was over.  I tell people, the best way to rebuild is to have three or four credit cards, use and pay them, stay way below your credit limits.

Better Credit is one of the 5 Ways Bankruptcy gives you a fresh start.

A study by the New York Federal Reserve Bank show that people enjoy a sharp boost in their credit score after bankruptcy. The Philadelphia Federal Reserve found that people with a 540 credit score before bankruptcy usually were are 620 right after. For most people, bankruptcy works.

 

 

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02

Sep 2019

Bankruptcy Towing and Storage Scam

Posted by / in Blog, Weekly Posts /

New Bankruptcy Towing and Storage Scam

Don sent me today a letter offering him a $1000 for the car he’s giving up as part of his bankruptcy. (He owes way more than the car is worth.)

An outfit calling itself Towing and Storage offers to give him $1000 to avoid “the hassle” of dealing with his car after he filed bankruptcy. Wow!  What a deal!

Don thinks this might be too good to be true.  (Here’s a copy of that letter.)

I don’t know about the specific company that contacted Don. But I do know how a towing and storage scam could, legally, “steal” the car.  Saying yes to a scam offer, could get Don’s entire bankruptcy disapproved. If what Towing and Store is suggesting is legal for them, it may not be NOT legal for Don, or for you.

A towing and storage scam might use what’s called a garageman’s lien.  Any company that works on a car, or just tows and stores it, has the right to be paid.  And if they are not paid on time, they can sell the car.  Sell the car WITHOUT having to pay off the debt to the car finance people.  Using the garageman’s lien, a towing and storage scam can transform your upside down financed car into a valuable paid for car! And keep all the money for themselves.

Towing company offers bankruptcy scam

Don got a letter offering to avoid  “the hassle” of after bankruptcy car repossession. Saying yes, could get his bankruptcy disapproved.

Meanwhile, the car finance people are waiting to get permission from the bankruptcy court to pick up your car–and of course they expect to pick it up from you. By the time everyone has figured out what’s going on, the towing and storage scam has legally sold the car. That would be one way a towing and storage scam can afford to give Don the $1000.

Do you care? 

The bankruptcy code requires you “surrender” property to the bankruptcy trustee. That does NOT mean you want to ship your furniture to the bankruptcy court, or drop off the car in the courthouse parking lot. If there’s still a payment on the car, the bankruptcy trustee does not want it. But you are required to keep the property safe until told otherwise. (Usually, at your hearing, your meeting of creditors, the bankruptcy trustee “abandons” your car, meaning gives it back to you.)

But your discharge can still be denied, meaning you still have to pay everybody, if you “transferred, removed, destroyed…” property you are supposed to keep safe. In other words, letting a towing and storage scam pick up your car could make your whole bankruptcy pointless.  That might not come up at your bankruptcy meeting of creditors hearing. But when the car finance people look for the car, and don’t find it, they can raise a stink. 

Maybe it’s not a scam

Let’s look again at the letter Don got. It says “We will contact your lien holder immediately and arrange for the return of your vehicle.” Maybe they do arrange for the return of the vehicle. Then Don’s ahead by $1000.  And I guess everybody is happy. But if it’s a towing and storage scam, the car finance people have been cheated out of their rights to the car. And they could make Don’s bankruptcy end badly.

 

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NORTHERN VIRGINIA BANKRUPTCY LAW OFFICES