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Bankruptcy Hell -- The Sequel to ForeclosureGate

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"Honda has expanded a previously announced recall of certain 2001 and 2002 model-year vehicles to replace the driver's airbag inflator in an additional 378,758 vehicles in the U.S. " In total, Honda is aware of 12 incidents related to this issue as of February 2010."  Honda February 9, 2010

Based on 12 incidents brought to their attention, Honda recalled every vehicle suspected, nearly 400,000.

At least seven federal courts have cited Katherine Porter's study Her study included over 1,700 cases., half of which had a defective part - missing documentation required by law to justify the bankruptcy.  Compare 850 instances of a defective part with no corrective action to the twelve instances referenced by Honda that generated a universal recall of models for two consecutive years.

Perhaps, the federal bankruptcy courts should emulate the judgment and practices of Honda.

The failure of bankruptcy courts to apply the law equally and the refusal to
"Name and address of the person or business you are reporting."Identify by United States Government

"Name and address of the person or business you are reporting.

"Identify the type of asset that was concealed and its estimated dollar value, or the amount of any unreported income, undervalued asset, or other omitted asset or claim."    US Trustee Program

The Bank Leaves out Documentation Critical to Lawful Approval of their Claims against You

Kathleen M. Porter published a landmark study on bankruptcy court in 2007.  Porter's research team reviewed 1700 bankruptcy rulings from federal courts across the country.  Porter found that required documentation was missing in just over 50% of the cases from the extensive sample.

From, Misbehavior a by Katherine Porter

From, Misbehavior and Mistake in Bankruptcy Mortgage Claims, Katherine M. Porter, November 2007 p. 18

Professor Porter commented on this failure to comply with documentation requirements:

"Without documentation of the debt, the debtor and other creditors cannot verify the legitimacy or accuracy of claims, each of which cuts into the limited dollars available for distribution. Poor compliance with the claims rules effectively deflects creditors' obligations onto cash-strapped bankrupt families, who must choose between the costs of filing an objection or the risks of overpayment."  K.M. Porter, 2007 p. 36

Porter's research confirmed that only a minority of bankruptcy courts use incomplete documentation to disallow creditor claims.  The failure to require proper documentation distorts over 50% of settlements.  How can a bankruptcy judge set amounts owed, etc. without knowing the basis for such judgments?

The creditors with the special right to accuse you of fraud get away with filing flawed claims against you.  Are their cases dismissed for errors?  Hardly ever, according to the study.

You had no idea that the creditor clams were incomplete thus legally flawed.  Neither the court nor your lawyer noticed.

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Western civilization equals bureaucracy times corp... by Ned Lud on Tuesday, May 3, 2011 at 6:47:56 AM
I am a consumer bankruptcy attorney (and extremely... by Lara Gardner on Wednesday, May 4, 2011 at 1:20:43 PM
We have a guy, Scottie Dutcher, in town who is a l... by Ned Lud on Wednesday, May 4, 2011 at 2:08:25 PM