Profile cover photo
Profile photo
David M Siegel & Associates
1 follower
1 follower
About
Posts

Post has attachment
What is the difference between debt consolidation and federal bankruptcy?

Interviewer: To get them, and this is the principle difference between just a consolidation place and the protection of the federal bankruptcy laws.

David Siegel: You talk – there’s a misconception out there that debt consolidation is going to bring this tremendous protection and consolidate all the debt, and give you one place to pay, and lower your amount.  The problem with that is debt consolidation does not have the backing of the federal law behind it. So if eight out of your ten creditors decide to take the payment plan, but two don’t, and those two sue you and garnish your wages you’ve accomplished nothing.  Plus in the past a lot of debt collection or debt consolidation companies have not really helped the debtor in the long run.  The debtor has made payments that have gone towards creditors, but also to the collection agent – the collection firm.

Interviewer: As a fee.

David Siegel: As a fee and it hasn’t really brought the relief that the debtor really can get by filing an actual bankruptcy case.

http://davidmsiegel.com
Add a comment...

Post has attachment
What happens if I have a Harley, am I going to lose it?

Interviewer: What happens, for example, let’s just say I have a Harley and we’ve gone through the wild card and the $2500 exemption am I going to lose it?

David Siegel: You have a couple of choices with regard to a Harley that has equity or a paid off vehicle.  You can either surrender it to the trustee in exchange for your fresh start. The trustee will then sell it, administer the asset, pay the creditor a prorata share or you can keep the Harley.  But you’re going to have to buy out the trustee’s interest, and that’s something your attorney would have to negotiate with the trustee.  Typically people do not want to give up their cars, their motorcycles, their prize possessions.  In those cases they would much rather negotiate with the trustee, eliminate their debt, but realize they have to pay something to the trustee in exchange for that fresh start, and that’s where the liquidation element comes in.  They’re liquidating, their nonexempt or non-protectable property in exchange for that fresh start, and sometimes it’s well worth it.

http://davidmsiegel.com
Add a comment...

Post has attachment
Add a comment...

Chapter 13 Client’s Car Was Damaged During Repossession

We recently filed a chapter 13 bankruptcy case to recover a vehicle that was repossessed. Upon receiving the vehicle, the client realized that the front end was significantly damaged as a result of the repossession and tow. The cost to repair the vehicle to make it drivable was exorbitant. Thus, the client is interested in converting her case to a chapter 7 and surrendering the auto.

Every once in a while a vehicle that's repossessed will come back damaged. It is almost impossible to prove that the damage was caused as a result of the repossession. Although the debtor knows that the damage was caused by the repossession, it is very difficult to prove such fact. For this reason, we do not bring any type of action within the bankruptcy court to recover damages against the repossession company. We basically advise the debtor to fix the vehicle just to the point that it is drivable. This can usually be done for less than $300. In this particular case, the debtor is just absolutely disgusted and is looking to surrender the vehicle now and convert to chapter 7.

We will examine whether or not she is eligible for chapter 7 and if so, what the cost for conversion would be. We always want to do what's best for our clients. In this case, converting to chapter 7 and eliminating the debt would be in the client's best interest. 
Add a comment...
Wait while more posts are being loaded