Welcome to the first installment of Dogs Explaining the Bankruptcy Code. As a bankruptcy attorney I love the bankruptcy code. I have five copies of it, and even keep one at home and one in my car. I think it is important for anyone considering bankruptcy to know and understand the bankruptcy code, but I realize not everyone is as excited about it as I am. So to aid in educating you about the bankruptcy code, and not put you to sleep, I have enlisted the help of some friends to make it more interesting. Without further ado, I present Dogs Explaining the Bankruptcy Code Part I: Preferences.

Preferences are a big issue for anyone considering bankruptcy. The last thing anyone wants to have happen is to get their loved ones dragged into their financial issues, and with the right attorney they can be avoided. Below is a common scene played out in my office that I hope will shed some light on the topic of what a prefrence is, what it means, and how to avoid them:

 

 

I have had a great deal of experience with bill collectors in my career as a bankruptcy attorney. I have had them threaten to kill a client’s dog, repossess a baby for an unpaid medical bill, and have people arrested. Those are all outrageous statements, but for the most part they are idle threats and just said for shock value. Bill collectors cannot throw you in jail, cannot beat you up, cannot just take your things without going to court and suing you first.

When a friend of mine posted a link to this New York Times story about nursing homes methods to collect on bills, I was shocked. Apparently it is quite common in the world of nursing homes for them to seek legal guardianship over a patient and all of their money when they cannot pay their bills. This would then give them the authority to pay themselves out of the patient’s assets, sell homes, liquidate retirement accounts etc… in order to recoup their money.

I really really hope that this isn’t the case for anyone out there, but if it is, a bankruptcy could help to stop the process. Pass this story along to anyone you know who may need help.

Yesterday the United States Bankruptcy Court for the Western District of Michigan in Grand Rapids issued a ruling which struck a blow to bankruptcy attorneys who regularly monitor and maintain their Chapter 13 cases. While I strongly disagree with the Court’s ruling, I will respect and abide by the decision. For those interested, you can read the decision here: http://www.miwb.uscourts.gov/sites/miwb/files/opinions/098016816035.pdf

At Mapes Law Offices one of the things that makes us different than other bankruptcy attorneys in Grand Rapids, Lansing, and Kalamazoo is that we regularly monitor the status of our chapter 13 bankruptcy cases to make sure that they are progressing properly and everything is going smoothly. We make sure that payments are properly made, that the trustee is properly administering payments, and that creditors are not trying to pull a fast one and get paid when they should not. Quite a bit happens on a monthly basis, that in itself is a rather small event, but could become a large problem if not caught early.

Yesterday the Court ruled that we cannot charge to monitor cases on a regular basis unless there are problems in the case that warrant it. I believe that monitoring in all cases is necessary to ensure that the cases do not become problem cases. The monthly charge for monitoring the cases would be roughly $35 per month to make sure things go smoothly. This does not mean that clients would have to pay extra, one of the great things about chapter 13 cases is that your attorney fees can come out of what the unsecured creditors would otherwise get. Basically, if your creditors were getting ten cents on the dollar, and your bankruptcy attorney submitted a petition to be paid more, your creditors would get eight cents on the dollar, but you would not have to pay any more than you were beforehand.

As a bankruptcy attorney, I believe it is my duty to make sure my client doesn’t need to worry about their case. When you choose our office to be your bankruptcy attorney I want your problems to become our problems, so you can stop worrying about money and get back to living your life. So despite the Court’s ruling, we will continue to monitor your cases though we will not be paid for it. Ultimately, your success is the most important thing, and as your bankruptcy attorney we will do everything in our power to make sure that you get a fresh start, that you can stop worrying about creditors, and that you can get your life back on track.

I didn’t choose to become a bankruptcy attorney for the money, I chose to become a bankruptcy attorney because I wanted to help the people in Grand Rapids where I grew up, I wanted to help the families I met in Kalamazoo when I was in college, and pay back the people in Lansing that helped me make my way through law school. You deserve the absolute best representation from your bankruptcy attorney, and that is exactly what you will get from our office, even if we don’t get paid for it.

— Jeffrey D. Mapes

It is once again that wonderful time of year, back to school time. Many people are now beginning classes at public and private universities with the hope of bettering themselves and their families. Education is extremely important, but unfortunately the cost of it may now be outweighing the benefits. I found this video from John Oliver online this morning, and I think it pretty well outlines the problems with our current student loan system. I highly recommend watching it if for no other reason than it is funny. I am hard on student lenders, but that doesn’t mean I think people shouldn’t go to school, they just need to be aware of the future they will be facing and right now the schools don’t do a very good job of preparing people for that reality. Do yourself a favor and watch the video.

To anyone going back to school this fall, have fun, study hard, and don’t take the financial aid office’s advice as gospel.