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Category: Bankruptcy & Debt

Fed Agency Slaps Debt Collector Hired by Prosecutors

Fed Agency Slaps Debt Collector Hired by Prosecutors

The federal Consumer Financial Protection Bureau (CFPB) recently settled a lawsuit it filed against National Corrective Group (NCG), a debt collection agency that was working under contract for various district attorneys’ offices in California, Maryland, Colorado, Nevada, Illinois, Indiana, Iowa, and Pennsylvania.  The settlement put a stop to the abusive practices NCG was using against people in bad check writing diversion programs. What??? Why Are District Attorney Offices Hiring Debt Collectors? In many states, if you are charged with writing…

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Credit Reporting Agencies Agree to Better Consumer Protections

Credit Reporting Agencies Agree to Better Consumer Protections

This month, the three nationwide credit reporting agencies (Equifax, Experian, and TransUnion) agreed to significant changes in their credit reporting practices and the way they handle consumer disputes. These voluntary changes, which resulted from a settlement with New York Attorney General Eric Schneiderman, are set forth in what the credit reporting industry is calling The National Consumer Assistance Plan. (Learn what a credit report is and what is contains in Credit Report Basics.) Here are the highlights of these new…

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Can You Keep Horses and Other Pets in Bankruptcy?

Can You Keep Horses and Other Pets in Bankruptcy?

ASK LEON  Bankruptcy expert Leon Bayer answers real-life questions. Dear Leon,  I am considering Chapter 7 bankruptcy and am wondering what will happen to my two pet horses if I file? They are not worth much; I probably couldn’t even give them away. But I don’t want to file bankruptcy if I have to give them up. Alysia  Dear Alysia, There are a few issues that arise when you file for Chapter 7 bankruptcy and have horses or other household…

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Can I Refinance a Mortgage That Was Discharged in Bankruptcy?

Can I Refinance a Mortgage That Was Discharged in Bankruptcy?

ASK LEON  Bankruptcy expert Leon Bayer answers real-life questions. Dear Leon,  I filed bankruptcy in 2009. One of the debts discharged in the bankruptcy was a mortgage with Wells Fargo. Upon the advice of my lawyer, I did not reaffirm the mortgage in the bankruptcy. I kept my house, and I have stayed current on my mortgage. I just asked Wells Fargo to refinance my mortgage at a lower rate. It told me that it cannot refinance the mortgage because…

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10th Circuit Rules: No Tax Discharge in Bankruptcy If You File a Late Return

10th Circuit Rules: No Tax Discharge in Bankruptcy If You File a Late Return

The 10th Circuit Court of Appeals recently ruled that if a bankruptcy debtor files a “late” income tax return, the underlying income tax debt cannot be discharged in Chapter 7 bankruptcy even if the debtor meets the other criteria for discharging tax debt in bankruptcy. The Criteria for Discharging Income Taxes in Bankruptcy Although many income tax debts are not dischargeable in bankruptcy, you can discharge a tax debt if it meets the following criteria: The tax debt is for…

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