OpEdNews Op Eds

Bankruptcy Hell -- The Sequel to ForeclosureGate

By (about the author)     Permalink       (Page 1 of 5 pages)
Related Topic(s): ; ; ; ; ; , Add Tags Add to My Group(s)

Supported 1  
View Ratings | Rate It

Headlined to H2 5/3/11

Become a Fan
  (110 fans)

opednews.com

Michael Collins


"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.

There are Creditor Fees that You Don't Understand

The paper chase of bankruptcy often times produces conflicting claims about amounts due.  Debtors face tremendous pressure to readjust their entire lives to cope with impending financial doom.  The graph below shows that creditors are much more likely to state claims in their favor than are debtors.


Next Page  1  |  2  |  3  |  4  |  5

 

http://www.opednews.com/author/author3863.html

The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Follow Me on Twitter

Contact Author Contact Editor View Authors' Articles

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Worst President Ever - Barack H. Obama

Ukraine President Once Agent for U.S. State Department

It's official! You're on your own

Rigged Elections for Romney?

Real Unemployment at 23% - Dampening the Excitement

The Pennsylvania Sexual Assault Scandal, the Second Mile Foundation, and Penn State

Comments

The time limit for entering new comments on this article has expired.

This limit can be removed. Our paid membership program is designed to give you many benefits, such as removing this time limit. To learn more, please click here.

Comments: Expand   Shrink   Hide  
2 people are discussing this page, with 3 comments
To view all comments:
Expand Comments
(Or you can set your preferences to show all comments, always)

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