In chapter 13 bankruptcy cases, debtors are sometimes allowed to reduce the amount paid on secured loans to the value of the collateral. This is called a "cram down" and it allows a debtor to retain a piece of collateral while paying back the value of the collateral rather than the full amount due on the loan. A cram down is especially helpful if you are "upside down" on a vehicle or a mobile home. For example, if you live in a mobile home that is worth $10,000.00 and you owe the mortgage company $20,000.00, you would pay back only $10,000.00 with interest through your chapter 13 plan, thereby saving quite a bit of money. However, you can only cram down the loan on a vehicle or a mobile home if the debt was incurred more than 910 days before the bankruptcy was filed, or if the vehicle or mobile home was not acquired for your personal use.
When Congress amended the Bankruptcy Code in 2005, they added Section 101(13A), which some creditors attempted to use to prevent the cram down of mobile homes. This issue was raised in one of our cases by the mortgage company holding a lien on a mobile home belonging to our clients. The Bankruptcy Court agreed with our argument that the debtors were allowed to cram down the loan on their mobile home, and the creditor appealed the matter to the District Court. Our firm defended the appeal and prevailed on this issue in the higher court. In a decision rendered on December 18, 2007, Judge Frank Polozola of the Middle District of Louisiana held that, "The Bankruptcy Court was correct in overruling the objection of Green Tree [the creditor]." See In re Woods, No. CV-07-645-FJP-CN (M.D.La. 12/18/2007).
The Grand Law Firm was privileged to play a part in this victory for debtors. The holding in this case means that in the Middle District of Louisiana, cram down is still available in chapter 13 bankruptcy cases for loans on mobile homes that have not been immobilized.
Thursday, July 17, 2008
Wednesday, April 9, 2008
STOP DEBT COLLECTOR HARASSMENT!
Are you being harassed by overzealous and abusive debt collectors, collection attorneys, and creditors? If so, you may have a claim against those debt collectors for violations of the Fair Debt Collection Practices Act (15 U.S.C. 1692, et seq.), otherwise known as the FDCPA. It is important to know your rights under the FDCPA, and to know what actions debt collectors and collection attorneys are not allowed to take.
Pursuant to the provisions of the FDCPA, you have the right to: (1) Dispute the debt and request validation of the debt, (2) Request in writing that a debt collector or collection attorney cease and desist telephone communications with you, (3) Request that a debt collector or collection attorney cease contact with you at work, and (4) Sue a debt collector or a collection attorney that has violated your rights under the FDCPA, however a suit must be filed within one year of the violation.
Additionally, under the FDCPA, debt collectors and collection attorneys may not: (1) Engage in harassing activity in an attempt to collect a debt, (2) Use abusive language and threaten violence or harm, (3) Call you repeatedly for the purpose of harassing you, (4) Call you without identifying themselves, (5) Contact you before 8:00 a.m. or after 9:00 p.m., (6) Contact a third party about your debt, (7) Contact you if you are represented by an attorney, (8) Make false statements, (9) Threaten legal action that they don't intend to pursue, (10) Use deception or lie to you, and (11) Engage in any unfair behavior or conduct in an attempt to collect a debt.
What should you do if you are being harassed by a debt collector or a collection attorney? (1) Keep a call log of all telephone calls that your receive from a collector, and take detailed notes of every phone conversation with a collector, (2) Save copies of all letters and collection notices that you receive, (3) Save all voice mails and messages that you receive from the collectors, and (4) Call the Grand Law Firm immediately at (225) 769-1414 or send us an email at info@grandlawfirm.com to schedule your free initial consultation. We can help you protect your rights and can stop the harassment that you are suffering at the hands of abusive collectors.
Pursuant to the provisions of the FDCPA, you have the right to: (1) Dispute the debt and request validation of the debt, (2) Request in writing that a debt collector or collection attorney cease and desist telephone communications with you, (3) Request that a debt collector or collection attorney cease contact with you at work, and (4) Sue a debt collector or a collection attorney that has violated your rights under the FDCPA, however a suit must be filed within one year of the violation.
Additionally, under the FDCPA, debt collectors and collection attorneys may not: (1) Engage in harassing activity in an attempt to collect a debt, (2) Use abusive language and threaten violence or harm, (3) Call you repeatedly for the purpose of harassing you, (4) Call you without identifying themselves, (5) Contact you before 8:00 a.m. or after 9:00 p.m., (6) Contact a third party about your debt, (7) Contact you if you are represented by an attorney, (8) Make false statements, (9) Threaten legal action that they don't intend to pursue, (10) Use deception or lie to you, and (11) Engage in any unfair behavior or conduct in an attempt to collect a debt.
What should you do if you are being harassed by a debt collector or a collection attorney? (1) Keep a call log of all telephone calls that your receive from a collector, and take detailed notes of every phone conversation with a collector, (2) Save copies of all letters and collection notices that you receive, (3) Save all voice mails and messages that you receive from the collectors, and (4) Call the Grand Law Firm immediately at (225) 769-1414 or send us an email at info@grandlawfirm.com to schedule your free initial consultation. We can help you protect your rights and can stop the harassment that you are suffering at the hands of abusive collectors.
Friday, February 22, 2008
Thursday, November 15, 2007
ARE YOU IN FORECLOSURE? WE CAN HELP.
There are many misconceptions about what happens when you file for bankruptcy protection. Bankruptcy is a viable option for most people, and a chapter 13 filing is especially helpful when your home is in foreclosure. Did you know that chapter 13 of the United States Bankruptcy Code can help you avoid the foreclosure of your home? The sheriff's sale of your home may be stopped and you can be given up to 60 months to catch up your past due mortgage payments through a chapter 13 reorganization plan. Our firm has years of experience in this area of the law and can explain the bankruptcy process to you in detail. If you are considering the use of a chapter 13 bankruptcy filing to stop the foreclosure sale of your home, the chapter 13 petition must be filed with the United States Bankruptcy Court prior to the scheduled sheriff's sale date.
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