Month: August 2016

Bankr. W.D.N.C.: In re Banner- Unauthorized Practice of Law by National Bankruptcy Law Firm


Ms. Banner filed a ‘bare bones’ Chapter 13 petition signed by her attorney, Joseph Kosko, who was a local partner in the law firm of Volks Anwalt, which solicited Banner as a client through direct mail. After missing numerous deadlines for filing the completed petition, ultimately the bankruptcy court held multiple contempt hearing regarding the representation by Kosko, Volks Anwalt, and its sole owner and managing partner, Jessica McClean. The bankruptcy was actually filed after the 10-day upset period for the sale of Banner’s home, such that the property was not protected nor the foreclosure halted.

The bankruptcy court found that Volks Anwalt’s business plan was developed by McClean and included a marketing plan that used direct mailings targeting individuals subject to foreclosure proceedings.… Read More

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Nerd Wallet: Do Debt Management Plans Work?… Read More

Bankr. E.D.N.C.: In re Alvarez- Mortgage Servicing Claims


The Alvarezes purchased their home in 2007 and refinanced in 2009 with PNC Mortgage servicing the loan for Fannie Mae. At that time the mortgage documents provided that the Alvarezes would maintain homeowner’s insurance and property taxes directly, without an escrow account. The Alvarezes began to have financial difficulties in 2012, but were denied mortgage assistance by PNC. Starting in August 2012, the Alvarezes alleged that PNC began misapplying their payments, holding funds in a suspense account and paying taxes and insurance from that account, violating numerous protections under the deed of trust, 12 C.F.R. § 1024.17 and N.C.G.S. § 45-93.… Read More

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Law Review: Twomey, Tara & Maynes, Todd- Protecting Nest Eggs and Other Retirement Benefits in Bankruptcy

For debtors facing financial distress in the twilight of their working years or beyond, bankruptcy’s promised fresh start may depend more on preserving retirement assets and benefits than returning to economic productivity. Even for those in the prime of their working years, losing retirement assets can represent a major lifelong setback. As a result, the question of whether consumer debtors can keep all or part of their retirement assets and benefits is a critical consideration. This paper surveys the intersection between the Bankruptcy Code and the preservation of retirement assets and benefits before and after the 2005 amendments to the Code.… Read More

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Bankr. E.D.N.C.: In re Phillips- Conversion from Chapter 13 to Chapter 7 does not Preclude Second Avoidance of Judgment Lien


The Phillips filed a Chapter 13 bankruptcy and successfully avoided the judgment lien held by McInnis. The Order allowing the avoidance provided that:

3. The Judgment lien of the McInnises is declared to be void and shall be removed of record upon the completion of the Chapter 13 Plan of the Debtors and entry of the discharge in this case pursuant to Section 506 of the Bankruptcy Code.
4. In the event the Debtors fail to complete their Chapter 13 Plan and receive their discharge, the McInnises’ lien shall remain unaffected as to Section 506(a) and (d) of the Bankruptcy Code by this order.… Read More

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Bankr. M.D.N.C.: In re Dean- Laches and Avoidance of Judgment Lien


Ferguson obtained a judgment in 2008 against the Robert Dean, who, with his then wife, Lisa Dean, subsequently filed a Chapter 7 bankruptcy in 2010. Believing that the real property was held as Tenants by the Entireties, the judgment lien was not avoided and the Deans received a discharge. Subsequently, the Deans divorced with Mr. Dean transferring his interest in the real property to Lisa and her new husband. When Lisa sought to refinance the real property in 2015, the judgment lien was discovered. The Debtors then sought to re-open the bankruptcy and to avoid the lien, with Ferguson objecting.… Read More

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