DISCHARGING DEBTS ARISING FROM “BAD CONDUCT”
DISCHARGING DEBTS ARISING FROM “BAD CONDUCT” One question that we’re commonly asked, especially now that a number of casinos have opened in northeastern Ohio, is whether or not gambling debt can be cancelled in bankruptcy. The answer is yes, it can. This might seem odd to some people, but the courts have universally held that losing money in games of chance does not constitute any sort of misuse or abuse that would affect a person’s ability to cancel those debts in bankruptcy. So for your…
WILL ANYONE AT MF GLOBAL GO TO JAIL FOR TAKING CUSTOMER FUNDS?
WILL ANYONE AT MF GLOBAL GO TO JAIL FOR TAKING CUSTOMER FUNDS? Imagine you are a banker and you remove funds from a depositor’s account and use them to pay the bank’s creditor card bill. Would that be illegal? Of course it would. It’s theft. But when MF Global Holdings, Limited, a New York brokerage firm formerly run by Jon Corzine (the former governor of New Jersey), took $175 million out of customer accounts to pay corporate obligations, no one got in trouble. MF Global…
UNITED STATES SUES BANK OF AMERICA FOR MORTGAGE ABUSES
UNITED STATES SUES BANK OF AMERICA FOR MORTGAGE ABUSES Bank of America has been sued by the federal government under the “False Claims Act” for allegedly misrepresenting the quality of mortgage loans it sold to Fannie Mae and Freddy Mac prior to the financial meltdown in 2008. Bank of America has been sued by the federal government under the “False Claims Act” for allegedly misrepresenting the quality of mortgage loans it sold to Fannie Mae and Freddy Mac prior to the financial meltdown in 2008.…
Same Sex Married Couples May Now File Joint Bankruptcy Cases
Same Sex Married Couples May Now File Joint Bankruptcy Cases The U.S. Supreme Court struck down the Defense of Marriage Act on June 27, 2013. By doing so, the court authorized same sex married couples to enjoy all the rights conferred by the Federal Government as other married couples. Prior to this decision, same sex marriages were not recognized by the Federal Courts and so in order to discharge their debts, same sex couples had to file separate bankruptcy proceedings thereby doubling the cost of…
Why It Is Important To Disclose Any Potential Lawsuit You May Have In Your Bankruptcy Schedules
Why It Is Important To Disclose Any Potential Lawsuit You May Have In Your Bankruptcy Schedules A new case decided by the Sixth Circuit Court of Appeals, which is the federal court of appeals that covers Ohio, illustrates why it is important to always list any lawsuits or potential lawsuits you may have when you file your bankruptcy. Lawsuits and other claims are assets which must be disclosed in your asset schedules. There is a legal principle known as “judicial estoppel” which essentially says that…
GOOD NEWS FOR CONSUMERS: OHIO STATUTE OF LIMITATIONS ON WRITTEN CONTRACT CLAIMS REDUCED TO EIGHT YEARS
GOOD NEWS FOR CONSUMERS: OHIO STATUTE OF LIMITATIONS ON WRITTEN CONTRACT CLAIMS REDUCED TO EIGHT YEARS The Ohio law governing the statute of limitations for filing lawsuits based on written contracts has been reduced from 15 years to 8 years effective September 28, 2012. [Ohio Revised Code section 2305.06]. The 15 year statute of limitations was longer than most states and bad for consumers.. What does this mean for you? Collection agencies and creditors will not be able to sue you for breach of a…
TWO MILLION MAY LOSE UNEMPLOYMENT BENEFITS AT END OF YEAR
TWO MILLION MAY LOSE UNEMPLOYMENT BENEFITS AT END OF YEAR More than two million Americans will lose their unemployment benefits at the end of the year if Congress is not able to avoid the “fiscal cliff”. The fiscal cliff is a set of deficit reduction measures adopted by Congress that automatically go into effect at the end of the year unless Congress can agree on different measures. About 40 percent of Americans receiving unemployment benefits get them because of a federal program used to supplement…
The Student Loan Debt Crisis
The Student Loan Debt Crisis There is a new and worsening debt crisis in the United States: Student loans. The collective amount of student loan debt now exceeds the total debt owed by Americans on credit card accounts. The amount owed on student loans has been growing for several reasons. First, the cost of education is increasing much faster than the rate of inflation. Second, more Americans are having to borrow to finance secondary education because the recession has reduced the number of families with…
MORTGAGE INTEREST RATES
MORTGAGE INTEREST RATES Mortgage interest rates are beginning to rise after remaining at historical lows for several years. If you have a high interest rate loan you should consider refinancing it before rates begin to go up. Although there are typically some costs associated with refinancing, the benefits can significantly outweigh them. For example, a 30 year mortgage loan on $150,000.00 at a fixed rate of 3.5 percent (typical today) will require you to pay $92,484.13 in interest over the life of the loan. That…
The 2013 Consumer Bankruptcy Surge
Consumer bankruptcy attorneys across the country are anticipating a surge in bankruptcy filings in the year 2013. The stage seems set for a dramatic increase in the number of filings. Here’s why: Eligibility The bankruptcy reform legislation of 2005 became law on October 17, 2005. Many consumers were concerned about the availability of bankruptcy after the reform legislation took effect and so there was a massive surge in bankruptcy filings prior to the law’s effective date. One of the changes in the 2005 reform legislation…