Tag: How do I get out of debt

The Security and Exchange Commission may emphasize a lot about the principles of Corporate Bankruptcy for the benefit of the people in the states of California and Texas. A company or firm will be out of business completely if it files for Chapter 7 bankruptcy. In this scenario, the investors of this company will also lose their money. The only parties who can get some value could be the people who hold bonds with such companies. But it solely depends on the priority of the corporate companies’ debts and the value of assets that is available for the purpose of liquidation.

How a company faces the situation of bankruptcy?

When the company falls into a condition where it is unable to repay its debts, then it files for Chapter 7 bankruptcy. In this condition, the business enters into the condition of liquidating all of its assets in order to pay back the company’s creditors. This action is carried out under the supervision of a bankruptcy trustee who is appointed by the federal court. The cash that is obtained from the liquidating of asset is used to pay the administrative fees and the legal fees in addition to paying the corporation’s creditors. The collateral held by secured creditors are returned to the corporation else, they get grouped along with other unsecured creditors. The amount generated is shared amongst this group.

If the filing is of Chapter 7 type, the stockholders of the corporation rarely get notified about the bankruptcy filing. This is because the creditors claim in full whatever is their due and there could be nothing left to be divided by the stockholders.

Recommended Chapter for Corporate Bankruptcy

Businesses are often looking for options to reorganize their debts and also find themselves in a better financial position of profitability whilst they face a bankruptcy situation. For such corporations, Chapter 11 is recommended. In this type, though the court holds control of major executive decisions for the corporation that has filed bankruptcy, the management of the company will still be able to run their daily business as normal.

Contacting a legal counsel is the recommended way for businessmen tackling similar scenarios as discussed above. Recovery Law Group, operating in Dallas, Texas and Los Angeles, California, will assist you to explore the viable options in your crisis situations. They work towards the appropriate recommendation for your business and will execute them according to your long term objectives. Call Recovery Law Group at 888-297-6203 to know more about their services!

A plaintiff who had executed a mortgage loan from Bank of America, N.A. on April 16, 2007, was unable to make adequate payments to the bank. This resulted in the bank filing a foreclosure complaint against the plaintiff. Post this, the plaintiff filed for bankruptcy under Chapter 13 in January 2013, which resulted in automatic stay affording protection against any collection actions. In June 2013, a modification was made in Chapter 13 bankruptcy by the plaintiff, wherein they proposed to surrender the home to Bank of America, N.A. against their claims. This modified plan was confirmed in June 2013, by the bankruptcy court.

This debt was later sold off by Bank of America, N.A. to BSI Financial Services, Inc. To recover the dues, BSI Financial Services, Inc. sent a Notice of Servicing Transfer to the plaintiff on October 1, 2014. According to the notice, the plaintiff is expected to send any payments due on or after the said date to BSI Financial Services, Inc. A disclaimer was also attached to it, according to which:

In case you have filed for bankruptcy, the “automatic stay” comes into effect in a bankruptcy case, or you have received a discharge for personal liabilities for obligations specified in the letter, BSI Financial Services, Inc. will not and does not intend to pursue collection of said obligation from the plaintiff personally.

After six months of sending the above-mentioned notice, BSI Financial Services, Inc. made over ten phone calls to the plaintiff’s cell phone, nearly five calls to the home telephone and more than 10 voicemails. The plaintiff responded to BSI Financial Services, Inc. and asked them to stop the constant harassment since they had already filed for bankruptcy. But despite the request, the calls continued. According to the plaintiff’s complaint against BSI Financial Services, Inc. they had:

• Made a minimum of 10 calls within a 2 month period (between October 15, 2014, and December 12, 2014)
• Used automatic dialer system to call the plaintiff
• Continuous calls were made to plaintiff’s cell phone
• Made regular attempt to contact the plaintiff without their consent.

BSI Financial Services, Inc. asked the court to dismiss all four different claims made by the plaintiff. Since numerous complaints were made by the plaintiff, the court also gave multiple decisions:

1. Since BSI Financial Services, Inc. had acted as a debt collector, thereby violating the Fair Debt Collection Practices Act, the 1^st charge of the complaint was not dismissed by the court.
2. Since there was no proof that the voicemails left by BSI Financial Services, Inc. were pre-recorded, that plaintiff answered calls or that there was a delay before plaintiff got any human response, the 2^nd charge was dismissed.
3. The 3^rd count was not dismissed as the defendant, BSI Financial Services, Inc., had indulged in acts of collection, assessing and claims of recovery by sending the plaintiff letters and numerous phone calls all amounting to the collection. Due to these actions, the defendant had willfully violated the bankruptcy automatic stay.
4. A further analysis was required to assess whether the defendant had violated the Illinois Consumer Fraud Deceptive Business Practices Act for the 4^th

In case you find yourself in a bad financial situation, it is important that you contact expert bankruptcy attorneys at 888-297-6023 to find out the best possible course of action for yourself. To frame an effective plan for your financial problems, consult Los Angeles based law firm Recovery Law Group .