Recent Blog Posts

Bank of America Begins its Mortgage Forgiveness Program

Attorney Nicholas R. Westbrook — Fri, 11 May 2012 20:02:00 GMT

According to a New York Times report, Bank of America has begun a new, mortgage forgiveness program, where it will reduce a significant portion of principal on certain, qualified mortgages. This program is a direct response to recent litigation against Bank of America for improper mortgage and foreclosure practices. Some mortgages will be reduced by $150,000.00.

Bank of America believes the savings could amount to an average of 35% for qualified homeowners. This mortgage forgiveness program coincides with the 25 billion settlement agreement reached between Bank of America and 49 state attorneys general earlier this year.

In a statement released by Bank of America, Executive Ron Sturzenegger explained, "To the extent principal reduction and other modification tools help us turn mortgages headed for possible foreclosure into long-term performing loans, it will be positive for homeowners, mortgage investors and communities."

Over the next several months, Bank of America plans to contact more than 200,000 homeowners who may qualify for the program. Candidates for the program must: (1) have a loan owned or serviced by Bank of America; (2) owe more on the mortgage than the property is worth; and (3) be at least 60 days behind on payments as of February 1, 2012.

In March, Bank of America began submitting trial offers to qualified homeowners who previously requested loan modifications on their accounts. Several mortgage forgiveness trials are now underway. Similar to the dreadful, loan modification programs, a homeowner must submit 3 timely payments to prove they are eligible for the forgiveness.

Although the forgiveness program seems great and will help thousands of homeowners, it is difficult to believe right now. Like many of the large mortgage companies, Bank of America has consistently made empty promises regarding homeowner assistance and loan modification relief. Many of our clients have applied for loan modifications in the past, only to be denied after months and months of waiting. Despite Bank of America's "promise" to help homeowners during difficult times, they seem to always deny the modification – and usually for something minor such as a missing document (even though the homeowner sent the document 10 times in 10 different ways). It's absurd.

Hopefully, due to the massive litigation and backlash against them, Bank of America will follow through with this program. If the program is successful, perhaps other large mortgage companies will follow the trend. At this point, we will have to wait and see.

If you are facing home foreclosure, or have other debts that are no longer manageable, consumer Bankruptcy can help. In many cases, Chapter 13 Bankruptcy will protect your home from foreclosure and bring you current on the account. Please call the Law Office of Nicholas R. Westbrook to discuss your legal options. We offer free consultations at numerous locations around the Houston area. Call us today at 713-893-6204. The road to financial freedom starts here.

Attorney Nicholas R. Westbrook

3730 Kirby, Suite 1200

Houston, Texas 77098

713-893-6204

Do You Really Know Who Owns Your Mortgage?

Attorney Nicholas R. Westbrook — Thu, 19 Apr 2012 17:53:00 GMT

Do you really know who owns your mortgage? Do you think it's the same company that you pay each month? Surprisingly, it may not be. Your mortgage payment is always sent to your "loan servicer", which may not be the same company that owns your mortgage note.

If you are considering Bankruptcy, it is critical to know the difference between the owner of your mortgage note and the loan servicer on the account. When filing a Chapter 7 or Chapter 13 Bankruptcy, you are required to list all known creditors. In the case of your mortgage, you should list the loan servicer and holder of the note (if the companies are different). To reaffirm your home loan through a Chapter 7 Bankruptcy or pay the mortgage through a Chapter 13 repayment plan, it is important to give proper notice to both companies.

You can determine the name of your note holder by contacting your loan servicing company and requesting the information in writing. You can also search the Mortgage Electronic Registration Systems ("MERS"), which identifies loan servicing companies and note holders. Here is their website: http://www.mersinc.org/homeowners/

About 50 percent of mortgages are held by Fannie Mae and Freddie Mac, and about 30 percent are guaranteed by FHA. If your home loan is guaranteed by one of these groups, you can locate further information on their websites.

Fannie Mae's website is:http://www.fanniemae.com/loanlookup/

Freddie Mac's website is: http://www.freddiemac.com/avoidforeclosure/

If you are considering Bankruptcy, it is important to notify all creditors to the best of your ability. To protect your home during this process, it is critical to determine the loan servicer, as well as the holder of the note. If these entities are different, you will need to notify both. For more information on Bankruptcy, please call the Law Office of Nicholas R. Westbrook at (713) 893-6204. We will help you locate your creditors and properly prepare your Bankruptcy documents. The road to financial freedom starts here.

Attorney Nicholas R. Westbrook

3730 Kirby, Suite 1200

Houston, Texas 77098

(713) 893-6204

Chapter 13 Bankruptcy and Co-Debtors

Attorney Nicholas R. Westbrook — Thu, 12 Apr 2012 19:30:00 GMT

The central feature of a Chapter 13 Bankruptcy is its 3 to 5 year repayment plan. During that period, you are required to pay all known creditors what you can afford while under the protection of the Bankruptcy, known as the "Bankruptcy Stay". The Stay prohibits your creditors from engaging in any collection efforts during the course of the Bankruptcy.

In some cases, you may have a co-debtor or co-signer connected with a debt being paid in the Bankruptcy or under the protection of the Bankruptcy through the Stay, known as the "Co-Debtor Stay". The protection in your Bankruptcy actually extends to the co-debtor for these debts, even if the co-debtor is your spouse and he or she does not join you in the Bankruptcy. This means your creditors cannot collect from any co-debtor during the case.

The Co-Debtor Stay is unique to a Chapter 13 case and is designed to protect you from indirect pressure from your creditors. Without this significant protection, creditors would be able to undermine your Chapter 13 case by coercing payment from all co-debtors. Since most co-debtors are friends or family members, this protection is important.

It is critical to understand, however, that the Co-Debtor Stay is not intended to protect a co-debtor. Moreover, when you complete the Bankruptcy and receive a discharge, your creditors can pursue the co-debtor for the remaining balance (if any) on the underlying debt. Still, it will prevent creditor harassment during the case.

The Co-Debtor Stay is somewhat limited, in that it does not apply to a business debt, most tax debts, and does not apply at all in Chapter 7 Bankruptcy cases. In some cases, the creditor may ask the Bankruptcy Court to modify or terminate the Co-Debtor Stay based on the circumstances. Requesting this relief is common when the co-debtor received "consideration" for the debt (e.g., you co-signed a car loan for your relative, but that person actually drives and owns the car), or when you surrender your interest in a co-debt and do not propose to pay the debt through the Chapter 13 Plan. If the Court grants the requested relief, the Co-Debtor Stay will end and the creditor will have the right to collect from the co-debtor, despite your pending Bankruptcy.

The Co-Debtor Stay can help you pay off a co-signed debt over 3 to 5 years, while also protecting co-debtors from creditor harassment. If you need help with a difficult financial situation, call the Law Office of Nicholas R. Westbrook at (713) 893-6204. As a debt relief agency, we can offer real and lasting relief. The road to financial freedom starts here.

Attorney Nicholas R. Westbrook

3730 Kirby Suite, 1200

Houston, Texas 77098

713-893-6204

Are You Facing Eviction? Bankruptcy May Help

Attorney Nicholas R. Westbrook — Mon, 09 Apr 2012 19:12:00 GMT

If you landlord is threatening eviction, but does not have a Court Order to evict, Chapter 7 or Chapter 13 can help (or at least buy some time to figure things out). In this situation, a Bankruptcy would prevent your landlord from issuing a termination notice or from beginning the eviction process. However, the landlord could proceed with the eviction by filing a Motion with the Bankruptcy Court to lift the Bankruptcy protection. In most cases, the Court will lift the protection because a lease agreement has no effect on the value of your Bankruptcy estate. Still, the Bankruptcy can provide ample time to get current on the deficiency or allow more time to move.

On the other hand, if your landlord has obtained a Court Order for possession of the property – and is therefore allowed to evict you through the Judgment – the Bankruptcy protection will not apply (and you will be subject to the 3 day eviction). If your eviction is related to nonpayment of rent, an exception may apply if your lease allows you to remain in the unit to "cure" or pay the rent after the notice of eviction. In this situation, you could file Bankruptcy under Chapter 7 or Chapter 13 and then take the following steps to avoid the eviction (and thus, buy some time):

· File a certification, or a sworn statement, with the Bankruptcy Court stating you are permitted to stay in the rental unit and pay the delinquent rent after the issuance of the eviction judgment;

· Deposit with the Bankruptcy Clerk the amount of rent that will be due 30 days from the filing of the Bankruptcy Petition; and

· Serve the landlord with a copy of the certification.

You would then have 30 days from the filing of the Bankruptcy to pay the total amount owed. If you cured the deficiency, you would then need to file a second certification with the Bankruptcy Court and serve the landlord. A landlord can object to either certification, and the Bankruptcy Court will hold a hearing within ten days of the objection. If your landlord prevailed, the Court would lift the bankruptcy protection and the eviction would proceed.

To discuss the Bankruptcy process in more detail, please call the Law Office of Nicholas R. Westbrook at 713-893-6204. I have assisted numerous tenants facing eviction, as well as homeowners facing foreclosure. In many cases, Bankruptcy has helped. The eviction and foreclosure process is extremely time sensitive, so don't wait to call. Call us to schedule a free consultation. The road to financial freedom starts here.

Attorney Nicholas R. Westbrook

3730 Kirby, Suite 1200

Houston, Texas 77098

713-893-6204

Discharging Social Security Overpayments in Bankruptcy

Attorney Nicholas R. Westbrook — Tue, 27 Mar 2012 18:08:00 GMT

If you receive social security benefits, there is a chance you could receive an overpayment of benefits. When this occurs, the Social Security Administration will contact you for the funds. You are responsible for keeping the SSA informed of any changes that may affect your monthly benefit. Unfortunately, many people are unaware of these reporting requirements and end up owing thousands to the SSA in overpayments.

In most cases, you have 30 days to respond to the SSA's request and refund the overpayment. If you are unable to send the money during this time period, you can request a waiver of the debt. On some occasions, the SSA will grant the waiver, especially when the beneficiary was not aware of the reporting requirement and the overpayment was a mistake. If the SSA does not grant a waiver, you can still request a hearing with an Administrative Law Judge to explain your situation. If the SSA failed to follow its own procedures, you may be successful at avoiding the debt.

If these preliminary actions are not successful, you can seek relief in Bankruptcy. You can eliminate or reduce your social security overpayment through a Chapter 7 or Chapter 13 Bankruptcy. However, if someone has acted dishonestly in obtaining the social security payment, the SSA may file an objection to the discharge of the debt. This can lead to additional problems, including criminal sanctions. The SSA may allege that you acted fraudulently by keeping the benefits when you knew there was a mistake. If the SSA successfully proves that you acted in a fraudulent manner, the debt will be excluded from the discharge and you will owe the debt. These objections are rare, but every case is different.

If you recently received an overpayment from the Social Security Administration, call my office as soon as possible. If you fail to take action, the SSA will request a refund and could ultimately deduct the debt from your future benefits. Call the Law Office of Nicholas R. Westbrook at (713) 893-6204, and we can schedule a free consultation to discuss your options. The road to financial freedom starts here.

Attorney Nicholas R. Westbrook

3730 Kirby Street

Suite 1200

Houston, Texas 77098

713-893-6204

Listing a Zero Balance Credit Card in Bankruptcy

Attorney Nicholas R. Westbrook — Tue, 27 Mar 2012 15:55:00 GMT

In some cases, your creditor may forgive your debt, leading to a zero balance on your credit report. This type of debt must be listed in Bankruptcy, as the debt is technically owed, it's just been forgiven by the creditor for its own accounting purposes. It is always best to list any and all credit cards, even with zero balances.

However, if you recently paid off a credit card, and you truly do not owe anything on the day of filing, you are not required to list the card with your other debts. If the card is paid off, it is not considered debt, and the credit card company is not a creditor. Since you do not owe anything on the card, the Bankruptcy Clerk will not send notice of the Bankruptcy to your credit card company. You can use the open credit card after the Bankruptcy discharge to help reestablish your credit. This is easier after Chapter 7, as the case is usually discharged within 6 months of filing. In Chapter 13, you are prohibited from using any credit cards, and the process can last up to 5 years.

Even if the card is not listed, most large banks and finance institutions will routinely compare new bankruptcy filings to their own records. In most of our cases, the card company will discover the new bankruptcy filing and cancel the card. If this occurs, you will simply need to apply for a new card at the conclusion of the Bankruptcy. This will help rebuild your credit score for the future.

If you are contemplating Bankruptcy and owe anything on your credit cards, it is best to leave the card alone. You should stop using and paying all credit cards within 90 days of filing. A large sum transferred to pay off your credit card just before filing can be "avoided" by the Bankruptcy Trustee, meaning the Bankruptcy Trustee can obtain the payment you sent and use these funds to pay other creditors. You should also be aware that failing to disclose a debt in your Bankruptcy can lead to serious trouble, including criminal sanctions. Therefore, if you have a credit card balance, or any other debt (even debts owed to friends or relatives), you must report the debt in your Bankruptcy.

Many consumers feel like they need a credit card to survive. This is usually not the case. If you need a credit card, there are other options. You can obtain a secured card with a cash deposit, or use your debit card to make purchases. To discuss your options in Bankruptcy, please call the Law Office of Nicholas R. Westbrook at (713) 893-6204. I offer a free case evaluation at numerous locations around Houston. The road to financial freedom starts here.

Attorney Nicholas R. Westbrook

3730 Kirby Street

Suite 1200

Houston, Texas 77098

713-893-6204

Buying A Home After Bankruptcy

Attorney Nicholas R. Westbrook — Wed, 29 Feb 2012 18:53:00 GMT

Some people believe that once you file Bankruptcy, you cannot get a home loan. This is a terrible myth that prevents many of people from seeking relief under the United States Bankruptcy Code.

Nothing prevents a bank from loaning money to a person who files for Bankruptcy. While the interest rate may be higher, the lender simply wants a guarantee it get paid on the loan over time. In most cases, the guarantee comes from the Federal Housing Administration (FHA), a government agency that insures home loans, and other government incentives. In other cases, you may qualify on your own with a few more restrictions than other homeowners.

Under the FHA, you can obtain a home loan after a Bankruptcy if (1) more than twenty- four (24) months have passed since your Bankruptcy discharge; (2) you do not have outstanding tax liens with the Internal Revenue Service; and (3) at least three (3) years have passed since any foreclosure or a deed-in-lieu of foreclosure has occurred. Many of our former clients are also surprised to learn that the FHA will offer a home mortgage guarantee to them during the Bankruptcy process. In these situations, you must have completed one year of payments to the Chapter 13 Trustee and obtained a recommendation letter regarding the amount you can afford to borrow, based on your current Bankruptcy case.

Numerous debtors are able to purchase a home during or after a Bankruptcy discharge. In some cases, you can obtain a new home during Bankruptcy. If you are currently struggling with overwhelming debts and hope to qualify for a mortgage in the future, , please call my office to discuss your situation. At the Law Office of Nicholas R. Westbrook, we are here to help. Call us today at (713) 893-6204. I offer a free legal consultation, and we have numerous office locations for your convenience. The road to financial freedom starts here.

Attorney Nicholas R. Westbrook

3730 Kirby Street, Suite 1200

Houston, Texas 77098

713 893-6204

www.houstonbankruptcyhelp.com

Info@HoustonBankruptcyHelp.com

Texas Man Pleads Guilty to Bankruptcy Fraud Scheme

Attorney Nicholas R. Westbrook — Wed, 15 Feb 2012 21:52:00 GMT

A man living in Austin, Texas recently pled guilty to operating a foreclosure scam that defrauded hundreds of people. In Court, Frederic Alan Gladle admitted to defrauding homeowners out of more than $1.6 million in fees. Gladle charged homeowners a fee in exchange for fraudulently postponing their foreclosure sales.

Gladle faces two to seven years in prison for his foreclosure-rescue scheme. In a statement released by the U.S. Department of Justice, "Gladle admitted that he recruited homeowners whose properties were in danger of imminent foreclosure and falsely promised to delay the foreclosures for up to six months, in exchange for a fee of approximately $750 per month. Gladle, directly or through salespersons, directed homeowners to sign deeds granting fractional interest in their properties to debtors in bankruptcy proceedings whose names Gladle found by searching bankruptcy records. The debtors were unaware that their names and bankruptcy cases were being used by Gladle in his scheme. Gladle then sent the unsuspecting debtors' bankruptcy petitions, and the deeds that transferred fractional interests to the debtors, to the homeowners' lenders to stop foreclosure proceedings."

The consumer Bankruptcy process stopped the foreclosures and forced the lenders to seek permission from the Bankruptcy Courts to collect their deficiencies.

Steven Martinez, assistant director of the FBI's Los Angeles field office noted, "This is the latest example of heartless criminal activity by an individual who sought to capitalize on the misfortune of those affected by hard economic times." He went on to explain, "Mr. Gladle defrauded victims trying to save their homes, further exploited those in debt by stealing their identities, and wreaked havoc on both banks and the bankruptcy courts by manipulating the system."

Foreclosure schemes are on the rise. To avoid these scams, it is critical to discuss your situation with a licensed Bankruptcy attorney. To schedule a free Bankruptcy consultation regarding your situation, please call the Law Office of Nicholas R. Westbrook at (713) 893-6204. My office can help you avoid foreclosure and reorganize your mortgage debt over a three to five year payment plan. You may also be able to negate a second or third mortgage on the property. The road to financial freedom starts here.

Attorney Nicholas R. Westbrook

3730 Kirby Street

Suite 1200

Houston, Texas 77098

(713) 893-6204

Getting a Fresh Start in the New Year

Attorney Nicholas Westbrook — Tue, 31 Jan 2012 19:45:00 GMT

Would you like this year to be better than last year? You have the power to take charge of your debts through consumer Bankruptcy and get a fresh start for the future. The beginning of the year is a great time to explore your options under the Bankruptcy Code due to available tax refunds. Many of our clients use their tax refunds to pay legal fees, court costs and the mandatory credit counseling course. The information provided for your taxes is also very useful in the pre-filing process of the Bankruptcy.

The sooner you meet with an experienced Houston Bankruptcy lawyer, the sooner you can re-organize your secured debts (home and vehicle) or eliminate your unsecured debts (credit cards, payday loans, and medical bills). If you are anticipating a 2011 tax refund, it may be better to postpone your Bankruptcy until you have received and spent the refund on necessary living expenses and legal costs. If you file your case and then receive the refund check, the money may go to your creditors in the Bankruptcy – unless an exemption protects the money from liquidation. If other exemptions are needed to protect your valuable assets (such as a home or car), there may be little room to protect the refund. The best advice is to use this money prior to filing on necessary living expenses.

Speaking with a motivated Bankruptcy attorney can also help you avoid honest "mistakes." For instance, if you pay more than $600 to one creditor just before filing the case, the Trustee assigned to your case can force the creditor to return the money. Additionally, gifts or loan payments to friends or family members can also be "avoided" by the Trustee if such activity occurred within 90 days of filing. While you have not done anything wrong, your attorney can help you avoid these complications. In some cases, you may need to wait a couple of months before filing.

The New Year is a great time to review your financial situation and consider consumer Bankruptcy. My office provides free consultations at numerous locations around Houston. Please call the Law Office of Nicholas R. Westbrook at (713) 893-6204 to schedule an appointment. The road to financial freedom starts here.

Attorney Nicholas R. Westbrook

3730 Kirby Drive

Houston, Texas 77098

713-893-6204

Bankruptcy Can Protect You from Eviction

Nick Westbrook — Thu, 19 Jan 2012 20:03:00 GMT

Bankruptcy occurs during very difficult financial times. In some cases, your rent may be late, and the landlord is threatening eviction. Fortunately, a Bankruptcy filing under Chapter 7 or Chapter 13 can buy some time to work things out.

Filing a consumer Bankruptcy case is not enough to violate your lease. In fact, unless you are behind on your rent, the landlord will probably be unaware of the Bankruptcy case. However, if you are behind on the rent, the issue becomes more complicated.

The "automatic stay", or Bankruptcy protection, specifically prohibits your landlord from taking any legal action against you during the Bankruptcy case, including an eviction. This protection will continue unless the landlord seeks permission from the Bankruptcy Court to evict you, which requires a certain Notice and Order from the Court. This protection only applies to payment deficiencies prior to filing the case. If you fail to pay your rent after the Bankruptcy is filed, the automatic stay does not apply and you can be evicted without Court Order.

If your landlord has already obtained a judgment for possession and an Order of Eviction prior to the filing of the Bankruptcy, things become far more serious. To avoid eviction at this point, you must deposit one rent payment with the Bankruptcy Court, which stays the eviction for thirty (30) days. If you wish to remain beyond the 30-day period, the entire judgment amount must be paid before the 30 day-period expires. Otherwise, you will be subject to eviction and have no available relief.

In limited situations, Bankruptcy can stop an eviction and provide a small window to catch up on the back rents. The laws governing evictions and Bankruptcy are complex, so you need an experienced Houston Bankruptcy lawyer that can help you navigate through this process. Please call the Houston Bankruptcy Attorney Nicholas R. Westbrook at (713) 893-6204 and learn how the law can help you avoid eviction and erase your other debts. The road to financial freedom starts here.

HOUSTON BANKRUPTCY HELP - Law Office of Nicholas R. Westbrook

3730 Kirby Drive, Suite 1200

Houston , Texas , 77098 United States

(713) 893-6204

What Does Equity Mean in Bankruptcy?

Nicholas Westbrook — Fri, 30 Dec 2011 17:07:00 GMT

The word "equity" is used in several professions and has several different meanings. In law, "equity" generally means fashioning a result that makes thing right. In other professions, such as economics, equity equates to what is fair. Even in the financial world, equity has numerous, district meanings.

When filing for Bankruptcy, you will need to determine the "equity" in your secured property, which is fairly simple to accomplish. In this context, "equity" means the difference between the fair market value of your property and the amount of claims against it. For example, if your car is worth $5,000, and your auto loan balance is $3,000, then you have $2,000 in vehicle equity.

Equity is important during a Bankruptcy case, because the Bankruptcy Code allows you to keep (or "exempt") certain property items -- up to a certain amount. Once you calculate your equity in the subject property, you can apply legal exemptions to the equity and protect the asset from your Bankruptcy Trustee or creditors.

Most debtors in Bankruptcy can protect all of their equity using legal exemptions. In Texas, you can utilize the State exemptions or Federal exemptions. These exemptions help protect your property during the Bankruptcy process. If your equity is not protected by an exemption, the Trustee will determine whether the amount of non-exempt equity will actually benefit creditors and whether it's worth pursuing. In most cases, the Bankruptcy Trustee will not pursue or liquidate your property, as most property is exempt. Statistically, it occurs in 1 out of 25 filed cases.

When filing a consumer Bankruptcy, it is critical to properly calculate the amount of equity in your property. My office can assist you during this important process. Please call theLaw Office of Nicholas R. Westbrook at (713) 893-6204 to schedule a free consultation. During your appointment, I can review your financial situation and explain your options. We have convenient offices in Houston and the surrounding areas. The road to financial freedom starts here.

Houston Bankruptcy Help - Law Office Of Nicholas R. Westbrook

3730 Kirby Drive #1200, Houston, TX 77098

(713) 893-6204

How the Internet Can Help During Your Consumer Bankruptcy

Nicholas Westbrook — Mon, 19 Dec 2011 17:48:00 GMT

The internet is a wonderful tool, and can be very useful during your Chapter 7 Bankruptcy or Chapter 13 Bankruptcy.

First, on-line auction sites, such as eBay, can help determine the fair market value of your personal property, including household goods and furnishings. When you file for Bankruptcy, the law requires that you list all of your personal property in the Bankruptcy documents (known as your "Schedules"). Personal Property is typically listed in Schedule B of the case. You must provide a good faith estimate of the market value of your property. Failure to disclose property or reasonable values can subject you to criminal penalties. So this is a very important step of the Bankruptcy process. Websites, such as eBay and Craigslist, provide good evidence of an item's reasonable and fair market value. The key is to deduct the online expenses from your estimate when searching for values on these websites.

These same auction sites can also help you sell property prior to filing for Bankruptcy. Selling property before a Bankruptcy is not per se illegal, but you should proceed with caution and consult with an attorney before selling anything. In some cases, your transfer be construed as fraudulent, which could negate your Bankruptcy after filing. Nevertheless, in most cases, as long as you are not selling the property to someone you know (such as a friend or family member), and the selling price is fair and reasonable, you can sell your property without any problems or consequences.

Typically, you should hold on to your property. It is unusual to lose your personal property during a Bankruptcy, as state and federal exemption laws will generally protect such property. However, in some cases, it may be beneficial to sell your property and spend the proceeds on household/living expenses. Again, it is critical to speak with an experiencedBankruptcy attorney prior to selling any property in anticipation of Bankruptcy. This is especially important when contemplating Chapter 7 Bankruptcy.

Finally, even when you can exempt all of your personal property, thereby protecting the property from the Bankruptcy, you may need immediate cash. Many clients are often behind on household expenses prior to Bankruptcy, so the internet auction sites are a good way to sell personal items that are no longer wanted or needed.

If you are considering consumer Bankruptcy, or want to explore your options, the Law Office of Nicholas R. Westbrook can help. Please call my office at (713) 893-6204 to schedule a free consultation at one of our convenient office locations around Houston. As an experienced Houston Bankruptcy attorney, I will help determine whether consumer Bankruptcy is the right solution for your unique situation. The road to financial freedom starts here.

Houston Bankruptcy Help- Law Office Of Nicholas R. Westbrook

3730 Kirby Drive, Suite 1200, Houston, TX 77098

(713) 893-6204 ()‎

What Happens To Your Monthly Payments During a Bankruptcy?

Nicholas Westbrook — Mon, 12 Dec 2011 21:45:00 GMT

When you file a Chapter 7 Bankruptcy or Chapter 13 Bankruptcy, each of your creditors and lenders receive notice of the Bankruptcy filing. Federal law states that a creditor holding a pre-bankruptcy obligation is prohibited from taking any action against you to collect on the debt. But what if you want the creditor to get paid?

There is no legal prohibition against making a monthly payment to a creditor. In Chapter 7, for example, you should always pay your monthly car payment and house note. There should not be a problem – right? Well, issues may arise if you have automatic debit payments with the creditor.

Automatic payments are a convenient way to pay your bills. An automatic payment is an arrangement for a specific amount of money to go from your bank account to the recipient's bank account. Automatic payments are useful to pay monthly bills that do not change, such as a monthly car or mortgage payment. Similarly, a direct debit allows the recipient to deduct money out of your bank account to pay your monthly bill. You might authorize a direct debit for an electricity, phone, or credit card bill. Of course, a direct debit could be authorized for most any bill.

Once the Chapter 7 Bankruptcy or Chapter 13 Bankruptcy is filed, your creditors will typically stop any direct debit from your bank account and refuse automatic payments during the course of the Bankruptcy. Why do they do this? They do not want to violate the Bankruptcy injunction (known as the "Automatic Stay"). Violating this Court Order can lead to serious fines and penalties for creditors. While this procedure is done to protect you, it can be frustrating when you want to pay your monthly bill through an automatic bill payment.

The best solution to this problem is to send a check during the Bankruptcy. The creditor cannot take action to collect your debt, but they can always accept your voluntary payment. To ensure the payment is received, it is a good idea to send all payments via certified mail, return receipt requested.

Filing a Chapter 7 Bankruptcy or Chapter 13 Bankruptcy can help cure many financial problems. Nevertheless, the process can be complicated and complications may arise, including automatic bill payments. Be sure you have an experienced guide to avoid unnecessary problems. Call the Law Office of Nicholas R. Westbrook at (713) 893-6204 and schedule your free consultation. We have convenient offices in Houston and the surrounding areas. The road to financial freedom starts here!

HOUSTON BANKRUPTCY HELP - Law Office of Nicholas R. Westbrook

3730 Kirby Drive, Suite 1200, Houston, TX 77098

(713) 893-6204 ‎

Put an End to Creditor Harassment Through Bankruptcy

Nicholas Westbrook — Tue, 22 Nov 2011 13:45:00 GMT

You can't make this stuff up. A few weeks ago, the Washington Post ran a story that would be comical, if it wasn't so outrageous. According to the article, the Federal Trade Commission recently shut down a debt collector in California for violating debtor harassment laws. The company is accused of threatening a family pet, as well as digging up a corpse. What?! According to the FTC, a collection agent unlawfully threatened a woman -- who owed money for a funeral bill -- that he would dig up her daughter's body and hang it from a tree if she didn't pay the bill. She was also told he would take her dog and eat it.

Federal laws protect consumers in these outrageous collection situations. The Fair Debt Collection Practices Act, or FDCPA, is a powerful, federal law that prohibits abusive collection practices by third party collectors, including these outlandish threats and actions. The FDCPA does not apply to business debts or to original creditors. Nevertheless, the FDCPA prohibits certain abusive practices including:

* Telephone calls before 8 a.m. or after 9 p.m. (your time);

* Requesting payment beyond what is actually owed;

* Using abusive, profane or obscene language;

* Threatening legal action which is not permitted by law (e.g., criminal action);

* Telephone calls at work after being instructed that your employer prohibits phone calls from debt collectors;

* Contacting you directly after being instructed that you are represented by an attorney.

When you hire a Bankruptcy attorney to represent you, the FDCPA provides that a third party collector can no longer contact you directly. Any contact regarding your debt must be made through your attorney. Additionally, the federal Bankruptcy laws prohibit collection actions during your Bankruptcy case. Any creditor (including original creditors) who violate these Bankruptcy protections can face serious consequences by the Bankruptcy Court.

If you are facing creditor harassment, please call me, Houston Bankruptcy Attorney Nicholas R. Westbrook, at 713-893-6204. The Law Office of Nicholas R. Westbrook can put an end to this abusive behavior. I offer a FREE consultation to explore all available options. I will show you how the federal and state laws can protect your property, income, and peace of mind. The road to financial freedom starts here.

Some Debts Cannot be Discharged Through Bankruptcy

Nicholas Westbrook — Mon, 14 Nov 2011 18:13:00 GMT

While a Chapter 7 Bankruptcy can discharge (i.e., eliminate) many types of debts, there are 19 categories of debts that Congress has identified as not dischargeable (called "excepted from discharge"). Some of these debts can be discharged under certain circumstances and may also be eligible for a significant reduction under Chapter 13. A complete list of the 19 categories is below:

Most taxes. In some cases tax debt can be discharged. For instance, if an income tax debt is more than three years old, it may be dischargeable, provided you submitted a timely return for that year. It is important to consult with an experienced Bankruptcy attorney regarding prior taxes, as you may be entitled to signficant relief.

Debts incurred through false pretenses. This category includes debts for luxury goods or services within 90 days before the Bankruptcy was filed, and cash advances within 70 days before filing.

Unlisted debts, if the failure to list the debt prevented notice to the creditor and an opportunity to file a claim or object to the discharge of the debt.

Debts for fraud or embezzlement.

Most domestic support obligations (including alimony, spousal maintenance or child support).

Debts for willful and malicious injury caused by the Debtor.

Government fines and penalties.

Student loans, unless the debtor can show that repayment of the student loan poses an undue hardship on the debtor and debtor's dependents.

Debts resulting from DWI.

Debts which were or could have been listed in a previous bankruptcy but were not discharged.

Debts owed to a spouse or ex-spouse arising from a divorce or separation. In some cases these debts are dischargeable.

Association dues for the Debtor's interest in her home.

Debts incurred to pay non-dischargeable state or local taxes.

Federal election law fines and penalties.

Property settlements owed to a former spouse or to a child.

Condo or homeowner's association fees.

Certain fees imposed on prisoners by a court.

Loans on pensions.

Certain debts arising from securities violations or wrongful acts of a fiduciary.

If you have overwhelming debts that you cannot pay, please call the Law Office of Nicholas R. Westbrook at (713) 893-6204. I offer FREE consultations and can help you determine if consumer Bankruptcy is the right option for your situation. The road to financial freedom starts here.