Alabama Consumer Law Blog

The BKBlog has posted an article that discusses whether or not filing for bankruptcy is grounds for your employer to fire you. The Bankruptcy Code calls termination for this reason a type of "employee discrimination" based on a bankruptcy filing if:

You are, or have gone through a bankruptcy proceeding You are insolvent either before filing a bankruptcy or while your petition is pending; You have not paid a dischargeable debt

The Code goes on to say that

a governmental unit may not deny, revoke, suspend, or refuse to renew a license, permit, charter, franchise, or other similar grant to, condition such a grant to, discriminate with respect to such a grant against, deny employment to, terminate the employment of, or discriminate with respect to employment against, a person that is or has been a debtor under this title or a bankrupt or a debtor under the Bankruptcy Act, or another person with whom such bankrupt or debtor has been associated, solely because such bankrupt or debtor is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act, has been insolvent before the commencement of the case under this title, or during the case but before the debtor is granted or denied a discharge, or has not paid a debt that is dischargeable in the case under this title or that was discharged under the Bankruptcy Act.

Private employers are also covered:

No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt, solely because such debtor or bankrupt—

(1) is or has been a debtor under this title or a debtor or bankrupt under the Bankruptcy Act;
(2) has been insolvent before the commencement of a case under this title or during the case but before the grant or denial of a discharge; or
(3) has not paid a debt that is dischargeable in a case under this title or that was discharged under the Bankruptcy Act.

The Bankruptcy Code also protects job applicants from discrimination by prohibiting denial of employment or termination of employment because of a bankruptcy filing. However, employers don't have to explain why they don't hire you. Certainly most of them wouldn't want to tell you it was because of credit issues on your part.

We don't cover bankruptcy, but if you have questions or further concerns feel free to contact us through our website or by calling 205-879-2447.

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You have come to this blog post because you are searching for ways to defend against a foreclosure in Alabama. First let me say if you are not willing to take action . . . to do something . . . then there is no defense that I know of that will help you save your home. Those who are looking for a magic bullet will not like this post and should move on.

But if you are still reading then this shows me that you are interested in taking serious action to defend yourself against the foreclosure that you are facing.

But here's the catch - many of the defenses that people talk about are not real defenses . . . they don't really help you the vast majority of the time. So let's deal with these false defenses first, and then we'll pick up with legitimate defenses.

What about bankruptcy?
Some think of this as a magic bullet. But let me tell you - its not . . . unless you think paying more than your mortgage payment is a magic bullet . . . and wrecking your credit is a magic bullet. Something like 95% of all people who start a chapter 13 - what bankruptcy lawyers use to "defend" against a foreclosure - fail. . . they can't make the payments.

What does this mean? You not only have a bankruptcy on your credit report, but now the lender forecloses against you and you have that on your credit report also. You literally just paid an incredibly high price to buy yourself a few months but you still end up losing your home.

OK, but what about these companies that promise a "loan audit" or "Truth In Lending Act (TILA)" analysis?
These companies are notorious for promising to find errors in your loans and then they claim they will be able to intimidate your mortgage company into giving you a great deal out of fear of being sued.

Here's the problem . . . the mortgage companies know these places are normally scams and they don't live in fear of these audit companies. Normally all that happens is the audit company tells you to stop paying your house payment. You get further behind. And then as you face foreclosure, the audit place stops taking your calls. Instead of the paradise they promise (lower the amount owed and no foreclosure) - you find yourself out of the several thousand dollars "fee" and with a home being sold at foreclosure next week.

OK, but what about a HAMP modification?
This is the big dream of our government - that all of the servicers and alleged owners of our loans will gladly and voluntarily agree to help you out when you are in a bind on making your mortgage payments. Occasionally we have seen this work but it is rare. I encourage you to try it - because you "never know" - but don't stop seeking other answers.

Here is my advice - keep a signed copy of everything . . . and I mean everything . . . that you send to the mortgage company. Carefully confirm everything - receipt of the modification package, when a decision will be made, that the foreclosure sale has been postponed (if they promise you this), etc. This is because the mortgage companies are infamous for throwing away your package so they can say you never sent it. They will keep you on hold for an hour at a time to discourage you from calling. You have to protect yourself by documenting all of this.

(This might surprise you) - what about making a deal with the mortgage company?
The mortgage companies hate seeing our name on lawsuits against them. We'll talk more about this later but trust me when I say I have no love for the mortgage companies. So it might surprise you to find out that I think it is a good idea to talk to your mortgage company to see if you can work out a deal with them.

Often they will promise to work out a deal or promise that you do have a deal. That's great! Either they will, amazingly, honor their promise - keep their word - or they won't. If they do, fantastic. You have worked things out and you don't have to worry about a foreclosure or lawsuit or bankruptcy (if you wanted to dive into that mess). But if the company promises you one thing - the foreclosure sale is canceled - and then does the opposite, you likely can sue the dishonest company....

Final option - suing the mortgage company that is breaking the law....
If you are dealing with a loan made in the last ten years, and if you are dealing with a national bank, then in my experience there will either be fundamental problems with the loan itself and/or with the way that the loan servicer (the company sending you bills, paying escrow, etc) has treated you. If that is correct, then an option to defend against foreclosure or to stop a foreclosure, or to use as a counterclaim in an ejectment action (ejectment is after foreclosure - the lender sues to "eject" or evict you) may be the best choice for you.

We don't do "loan modifications" . . . but we do sue mortgage companies for wrongful conduct and usually they come to us and ask about settling a case while making modifications to the loan. Rather than some uncaring person in a cubicle who is miserable with his life trying to make you miserable also, we deal with companies who are paying 300-400 an hour to their lawyers and who have an interest in coming up with a fair and reasonable settlement to the case. When a company faces a jury trial, they usually get more serious about resolving a case.

Bottom line - which method is best for you?
You want to rearrange the deck chairs on the Titantic? Then choose bankruptcy. Maybe you'll be the unusual case where it actually saves your home long term but for most people it does not.

You want to pay some out of state company a thousand bucks or two thousand bucks to give you a bogus "TILA analysis" that is worthless? All the while losing your home to foreclosure?

How about putting your hopes and dreams in a HAMP modification? I hope it works for you and recommend that you try it but I would not let that be my only efforts to save my family's home.

Talk to your mortgage company about modifying the loan or entering a forebearance or doing something to get you back on track. If they say "No" then you haven't lost anything. If they say "Yes" then either they will honor it (and obviously you must honor the agreement) or they will break it. Either way you will have stopped foreclosure or you will have a potential lawsuit for breaking the agreement and lying to you.

Finally, on suing - remember we sue when we have a legitimate basis to do so. When we do that, we can create an incentive on the part of the mortgage company to finally do the right thing . . . not out of any concern for you - they don't care about you - but solely out of concern . . . for themselves. Any settlement will be purely and utterly selfish . . . on the part of the mortgage company.

That's ok. We don't care why they suddenly start treating you with respect and dignity . . . as long as they finally do treat you that way.

So, if you are facing foreclosure, carefully explore your options and make the best short and long term decision for you and your family when it comes to your home.

Best wishes . . .

John Watts

PS - If you would like more information on foreclosures, please check out our articles The Three Stages Of Foreclosure In Alabama and Wrongful Foreclosures In Alabama.

If you have further questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

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The lure of a Chapter 13 Bankruptcy can be very tempting for homeowners facing foreclosure. Bankruptcy lawyers bombard homeowners with advertisements to use bankruptcy to save your home.

We will discuss whether chapter 13 is a good option for most homeowners in a future post but those who take the plunge into bankruptcy often do so thinking they will not be facing foreclosure. When it hits them while in a bankruptcy, it is very upsetting and jarring.

Here is how this works. Once you file chapter 13, the mortgage company (and all other creditors) are under an "automatic stay" which means they cannot take collection action against you. But if you don't make your regular mortgage payment and you don't make your bankruptcy court payments, you will be faced with a "motion for relief from stay" from your mortgage company. This motion asks the bankruptcy court to "relieve" or "lift" the stay so that your mortgage company can foreclose.

Here's the bottom line - chapter 13 bankruptcy can be effective if you can afford your regular mortgage payment PLUS paying off the arearage and other debts you have but if you can't afford all of these payments, you are just re-arranging the deck chairs on the Titantic.

If you would like more information on foreclosures, please check out our articles The Three Stages Of Foreclosure In Alabama and Wrongful Foreclosures In Alabama.

If you have further questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

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The Bankruptcy Law Network has posted an article about a recent case where debt collectors tried to hold a man responsible for a debt that was discharged through bankruptcy fifteen years before.

The sale of debt that was discharged in bankruptcy is a violation of the bankruptcy discharge. In this case, the seller of the debt was held "liable for attempts by its unrelated buyer some 15 years after the bankruptcy to collect a discharged account." The debt buyer didn't know anything about the bankruptcy because the bank (the seller) sold it without telling the buyer the debt wasn't enforceable. The discharged debt/account that reappeared is called zombie debt.

Judge Lamoutte presided over the case and concluded that the very act of selling the debt to someone who would attempt to collect on it was a violation.

This decision highlights one of the functional failures of the bankruptcy discharge to bring real peace to a debtor. Even though unenforceable, the discharged accounts get passed from collector to collector, for decades, with each collector attempting to squeeze money from the hapless debtor. Kudos to Judge Lamoutte who refused to absolve the original creditor from the foreseeable consequences of the sale of its claim against Mr. Laboy.

We don't file bankruptcies for consumers but we do litigate bankruptcy issues including when a creditor or collector tries to collect a discharged debt. If you have questions or concerns feel free to contact us through our website or by calling 205-879-2447.

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The Bankruptcy Law Network has posted an article that discusses the catches that go with payday loans and how it can lead to bankruptcy. Payday loans can be very convenient when you need quick cash because of dealing with things like bankruptcy, but you can borrow a modest amount of money and end up owing several times more than the original amount...all because of exorbitant interest rates.

For example, most payday loans charge about 18% interest per term. The only problem is that a term just lasts two weeks. Multiplying that times 52 weeks in a year and you end up paying 468% APR (annual percentage rate), not including late fees or compounded interest.

Say Fred borrows $300 from Barney at 18%. Assume further that every two weeks Barney adds a $15 late fee after every missed payment. Now assume Fred isn’t able to pay Barney back in time, but he comes into $3000 6 months (26 weeks) after taking out the payday loan. Does Fred have enough to pay his debt?

Here’s how the debt would be calculated:

2 weeks – $300 x 18% = $354 + $15 (late fee) = $369

1 month – $369 x 18% = $435.42 + $15 = $450.42

3 months – $793.65 x 18% = $936.51 + $15 = $951.51

6 months – $2710.27 x 18% = $3198.12 + $15 = $3213.12

Some people claim that payday lenders actually discourage their customers to pay on time. This can result in a vicious debt cycle that can lead to bankruptcy. We don't cover bankruptcy, however, if you are having financial problems and are considering bankruptcy we do encourage you to seek out more information.

If you have questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

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The Bankruptcy Law Network has posted an article that discusses the catches that go with payday loans and how it can lead to bankruptcy. Payday loans can be very convenient when you need quick cash because of dealing with things like bankruptcy, but you can borrow a modest amount of money and end up owing several times more than the original amount...all because of exorbitant interest rates.

For example, most payday loans charge about 18% interest per term. The only problem is that a term just lasts two weeks. Multiplying that times 52 weeks in a year and you end up paying 468% APR (annual percentage rate), not including late fees or compounded interest.

Say Fred borrows $300 from Barney at 18%. Assume further that every two weeks Barney adds a $15 late fee after every missed payment. Now assume Fred isn’t able to pay Barney back in time, but he comes into $3000 6 months (26 weeks) after taking out the payday loan. Does Fred have enough to pay his debt?

Here’s how the debt would be calculated:

2 weeks – $300 x 18% = $354 + $15 (late fee) = $369

1 month – $369 x 18% = $435.42 + $15 = $450.42

3 months – $793.65 x 18% = $936.51 + $15 = $951.51

6 months – $2710.27 x 18% = $3198.12 + $15 = $3213.12

Some people claim that payday lenders actually discourage their customers to pay on time. This can result in a vicious debt cycle that can lead to bankruptcy. We don't cover bankruptcy, however, if you are having financial problems and are considering bankruptcy we do encourage you to seek out more information.

If you have questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

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We often asked this question by Alabama consumers facing foreclosure. The answer is "It depends." I know, that sounds like a lawyer non answer but stick with me.

If you file bankruptcy AFTER the foreclosure, then it won't stop the foreclosure. Its already happened.

If you file bankruptcy BEFORE the foreclosure, then it normally will stop the foreclosure. Here is why I can't give a definite "Yes" answer.

Sometimes a consumer in Alabama may have filed bankruptcy too often and the "automatic stay" does not fully protect the consumer on stopping a foreclosure. The automatic stay is what "freezes" all the creditors in their collection efforts. It is to let the bankruptcy court sort out what will happen and to give the consumer-debtor some breathing room.

Also, the court normally can't alter the terms of the mortgage payments. Those payments must continue to be paid and you typically have to pay the back payments, or arrearage, as well. So when you meet with a bankruptcy attorney you need to find out if filing the bankruptcy will actually stop the foreclosure and if you can afford to make all the payments you must pay so that the mortgage company is not allowed to request permission to begin foreclosure proceedings against you.

We'll talk more about the automatic stay and how a mortgage company (typically the "servicer") can request that the bankruptcy court take away ("lift") the stay so foreclosure can proceed against you.

We will also discuss more about the option of bankruptcy (and other options to foreclosures) so that you will have as many tools as possible if you are facing foreclosure in Alabama.

If you would like more information on foreclosures or what to do after a foreclosure, please feel free to check out our articles The Three Stages Of Foreclosure In Alabama and Wrongful Foreclosures In Alabama.

If you have further questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

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Max Garnder, III, has an excellent article on some of the abuses that servicers inflict upon consumers who are in a Chapter 13 bankruptcy that we suggest you carefully read.

This is an entertaining and informative article by Max and you can get a taste of it from the first paragraph:

Wayne Gretzky once said that his success was due to the fact that he focused on where the puck was going to be, not where it was. For most consumer debtors who have home mortgage loans and are involved in Chapter 13 bankruptcy cases, this Gretzkyism is somewhat of a double entendre. The fact of the matter is that most of these debtors have no idea who really owns their home mortgage loan and they most assuredly do not know why the balance owed keeps going up. Or, as Yogi Berra might say, these “guys have been double-pucked!”

Read this article if you are interested in securitization and what it means for consumers in a Chapter 13 bankruptcy....and even if you are not in a bankruptcy, you will find useful nuggets as well....

If you live in Alabama and would like to talk with us about this issue, or foreclosures, or any other issue, please feel free to call us at 205-879-2447 or fill out our inquiry form on our website.

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The Florida Bankruptcy Attorney Blog has posted an article that discusses the effect bankruptcy has on student loans. Previously it was possible to discharge student loan debts after seven years if someone couldn't make their monthly payment. However, amendments passed by the BAPCA (Bankruptcy Abuse Prevention and Consumer Protection Act) recently have made that more difficult.

These amendments require the person to prove to the court that you are undergoing "inordinate hardship" for bankruptcy to include student loans. The requirements for "inordinate hardship" are very strict and most people simply cannot fulfill the conditions.

We do not cover bankruptcy, but would be happy to discuss options with you if you have questions. Feel free to contact us.
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MSNBC.com has posted an article about the rise in personal bankruptcies. According to the article, 124,790 bankruptcies were filed in September of this year, a 41% increase from September 2008. September 2009 also had the fourth largest amount of filings since the bankruptcy law changed in 2005.

September's filings pushed 2009 consumer bankruptcies to about 1.05 million, the highest for the first nine months of a year since 1.35 million in 2005.

The American Bankruptcy Institute says the high bankruptcy numbers are because of the high unemployment rate and lagging housing market. The ABI estimates a total of 1.4 million consumer bankruptcies to be filed this year.

We don't cover bankruptcy, but if you have questions, feel free to contact us to discuss possible options.

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The Arizona Bankruptcy Lawyer Blog has posted an article about what a bankruptcy discharge is and what it includes. The "discharge" of a debt means that it no longer exists and can't be held against the debtor. However, debt discharge "has its limits" and doesn't include every financial responsibility.

To begin with, debt discharge doesn't deal with every debt. Child support, "spousal maintenance" and newer income tax debt can't be discharged.

Even though the personal liability may no longer exist as a result of the "discharge", liens recorded against the debtor's property, may survive the bankruptcy unless they are modified or removed.

There are time limits that prevent a person from receiving continual debt discharges. The creditor has to be allowed time between bankruptcy filings to collect their money.

Not everyone needs bankruptcy for purposes of obtaining a discharge. Some need it for other reasons, like saving a home from foreclosure or restructuring the repayment of debt. These people don't care as much about the discharge as others. For those debts like credit card, repossession related, old income tax and medical bill debt that are typically governed by it, not only are they "gone", the discharge acts as a "permanent injunction" or a court order at the close of the case, against those same creditors. It replaces the "automatic stay".

If creditors persist in attempting to collect after you have obtained a debt discharge, the creditors can be "punished". Often this "punishment" means they have to pay the former debtor.

We don't cover bankruptcy, but if you have questions we would be happy to discuss options with you. Feel free to contact us.

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Bankruptcy Law Network has posted an article that discusses if a company going bankrupt is obligated to honor a warranty. It depends on the type of bankruptcy that was filed for.

If it was Chapter 11, there's more of a chance that the company will honor your warranty that was purchased prior to filing for bankruptcy. One main reason is to maintain a positive business image.

If the company filed Chapter 7 then they aren't obligated to honor a warranty, but might do so anyway to keep the same "goodwill" image.

Otherwise, you’re out of luck. This wasn’t a rip-off, this was just the bad luck of doing business with a company that didn’t make it. You’ve lost your warranty. The owners lost a significant asset, and the workers lost their jobs.

If you have questions regarding bankruptcy, feel free to contact us.

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The Alabama Consumer Lawyer Blog has posted an article that discusses the pros and cons of filing for bankruptcy and the differences in Chapter 13 and Chapter 7.

John W. Sharbrough, the author, suggests that for people who have a house they want to keep filing Chapter 13 bankruptcy is more effective. However, for a totally fresh start, Chapter 7 is the way to go.

The pros of filing bankruptcy, according to the article, are:

It can wipe out or “discharge” all or some of your debts;

It can give you a chance to “catch your breath” by temporarily prohibiting creditors from foreclosing or repossessing your home or car;

It can temporarily prohibit wage garnishment or disconnection of utilities;

It will stop harassing creditor phone calls and letters;

The cons are:

It puts a blemish on your credit report that will remain there for 10 years;

Can be a source of embarrassment and may be seen by potential employers, insurance companies and such.

If you are considering or interested in filing bankruptcy feel free to contact us - we don't file bankruptcies but we will be glad to recommend you to a bankruptcy lawyer in your area and often people are seeking bankruptcy protection because of harassing debt collectors. We have been able to keep people out of bankruptcy by suing the collection agencies for violating the law .

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The BKBlog has posted an article that discusses if an individual can file for Chapter 7 bankruptcy and still keep their business. Often times, the owner could have used personal credit cards and finances for the business, so they are being held responsible for that debt.

This article suggests that one needs to close down the business if filing for Chapter 7 and waiting 6 months to a year before reopening. This enables the owner to have a fresh start.

Except in the case of a personal service business that has no inventory or receivables or any value other than the daily efforts of the owner, my experience has been that if you file a Chapter 7, the trustee will demand that you cease operations and turn over the books, the keys and the inventory to the trustee's office.

If you have questions or have had problems with issues relating to bankruptcy, feel free to contact us.

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StayViolation.Com has posted an article about a lawsuit between creditor and debtor. In Texas, Brad Collier bought almost $1,000 worth of mobile home parts and supplies from Hill's Mobile Home Parts & Service, owned by Paul Hill.

Collier soon after filed for Chapter 13 bankruptcy and failed to immediately notify Hill. However, after receiving notification, Hill hired Josh B. Maness as a representative "in regard to collection of the pre-petition claim." Maness sent a letter to Collier's bankruptcy attorney and demanded to be paid the full balance of Collier's debt.

Misstatements were made in the letter that Mr. Maness attributed to an unfamiliarity as to how to use the Bankruptcy Court's PACER/ECF system. Regardless, the Court found the letter constituted a willful violation of the automatic stay issued in Mr. Collier's Chapter 13 bankruptcy because no good faith defenses are allowed as to stay violation. The Court concluded this "ill-informed conclusion based upon an insufficient investigation" was "not a technical violation based upon an innocent mistake" as "[t]his is precisely the type of behavior that the automatic stay is intended to preclude".

Following the letter, Hill then posted a sign out at a major intersection of US Highway 80 in Scottsville, TX, near where Collier and his friends, family, etc live, that said: "BRAD COLLIER OWES ME $984.23 WILL YOU PLEASE COME PAY ME!"

Hill refused to remove the sign and it remained posted in public for 21 days.

Paul Hill only agreed to remove the sign at the hearing scheduled by the Bankruptcy Court on Brad Collier's requested expedited hearing for an injunction.

Mr. Hill contended throughout the litigation that the directive on the sign -- "WILL YOU PLEASE COME PAY ME!" - did not constitute an effort to collect a debt because there was no question mark at the end of the sentence. However, the Court found that the use of an exclamation mark in lieu of a question mark demonstrated that the opposite was true. "The exclamation mark transforms the sentence into a directive, which demands that the Debtor pay the debt." The Court further found that the Bankruptcy Code was clear. "Any effort, action, or demand by a creditor to collect a pre-petition debt violates the automatic stay".

Hill also argued that putting up the sign was his right given by the First Amendment. However, Hill's actions caused him to have to pay $21,820 in punitive damages.

If you have problems with debt collectors following bankruptcy, feel free to contact us.

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The BKBlog has posted an article that discusses if you are responsible for debt incurred by the failure of your business, and if personal bankruptcy can help.

Jonathan Ginsberg, author of the blog, is based in Georgia and thusly "can only speak to how Georgia law works" but he still offers good insight. He says that the owner of the business can be held personally responsible, in spite of bankruptcy, if:

-the lease was in his name and not in a corporate name .
-he personally guaranteed a corporate obligation.
-he engaged in fraudulent conduct that would permit the plaintiff lessor to "pierce the corporate veil."

In most of these cases, commercial landlords do require the individual business owner to personally guarantee the lease. Assuming that is the case here, a personal bankruptcy would create an automatic stay that would prevent the plaintiff landlord from garnishing wages or bank accounts.

Settlement negotiation is also a possibility. The landlord may be approached with a settlement offer and is likely to accept it because if bankruptcy is filed the landlord will get very little or nothing.

If you are considering or dealing with bankruptcy, feel free to contact us.

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The BKBlog has posted an article that discusses the effects bakruptcy has on student loans. Student loan creditors have become more active in collecting their money in light of the current economic decline. Different "collection resources" are available for student loan companies looking to collect their money, however

There is one statute that permits student loan creditors to garnish wages without the need to first go to court.Student loan claims can also offset tax refunds.

The blog cites an email that was sent to them.

I am unemployed and have defaulted student loans. I was married last April and my husband's tax return was offset as a lovely wedding gift. I am researching how to file for bankruptcy for my other debts and also looking into how to prove "undue hardship" regarding the student loans. In the meantime, we were curious about whether or not my husband's wages could be garnished? Since I am unemployed, this would devastate us. Also, once I get a job, if they are garnishing my husband's wages, would they be able to garnish mine as well — at the same time?

According to this article, both spouses are subject to wage garnishment, as well as having their tax return seized. Bankruptcy would do little good.

If you are considering or dealing with bankruptcy and have questions or concerns, feel free to contact us.

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The New York Bankruptcy Litigation Blog has posted an article about what debts remain unresolved should you file for bankruptcy.

Exceptions include child support, alimony payments, "certain cooperative housing fees", "debts brought about by intentional injury or property damage caused by the debtor" (this also includes personal injury debts caused by driving under the influence of drugs or alcohol), and any debt owed to a form of a government agency ( such as tax claims and penalties or fines).

If you are filing, or considering filing, for bankruptcy, feel free to contact us for assistance. We don't file bankruptcies but often times what causes a consumer to consider bankruptcy is dealing with abusive debt collectors which we can sue so sometimes this can be a better option that actually filing for bankruptcy.

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Anthony Bush with Anderson Nelms & Associates filed a case on January 22, 2009, against Beneficial Assurance LTD, Inc., Homecomings Financial, LLC, America's First Federal Credit Union, Credit Bureau Services International, Inc. and Experian.

This case arises out of a bankruptcy discharge that the plaintiff received several years ago (2007) but the defendants continued to report discharged debts as having a balance owed. A discharged account must be listed as a zero balance as no money is owed to the defendant/creditor.

This lawsuit alleges violations of the Fair Debt Collection Practices Act, Fair Credit Reporting Act and state law including deceptive trade practices.

This type of misconduct (leaving false balances on accounts that have been discharged) has been going on for some years and we have filed numerous lawsuits over the last three years related to this but creditors and collectors continue to violate the law in attempts to extort money out of consumers who no longer owe the creditors and collectors any money. We wish Anthony Bush the best of success with this suit in his efforts to help encourage creditors and collectors to obey the law.

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Our friend Anthony Bush with Anderson Nelms & Associates filed a case on February 2, 2009, against Bay Finance Company, Redstone Federal Credit Union and the consumer reporting agencies of Equifax, Experian and Trans Union.

This case arises out of a bankruptcy discharge that the plaintiffs received last year but the defendants continued to report discharged debts as having a balance owed. A discharged account must be listed as a zero balance as no money is owed to the defendant/creditor.

This lawsuit alleges violations of the Fair Debt Collection Practices Act, Fair Credit Reporting Act and state law including deceptive trade practices.

This type of misconduct (leaving false balances on accounts that have been discharged) has been going on for some years and we have filed numerous lawsuits over the last three years related to this but creditors and collectors continue to violate the law in attempts to extort money out of consumers who no longer owe the creditors and collectors any money. We wish Anthony Bush the best of success with this suit.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

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