Abuse of Bankruptcy Procedures

This is a collection of John Faucher’s blog posts concerning abuse of bankruptcy procedures that he or his associates have encountered.  Click on any of the posts below to continue reading.

Wells Fargo: Worst Bank Ever? Part IV…

I’m cheered to see that others out there share my opinion of Wells Fargo Bank. For my prior screeds against this bank, see here, here, and here.  My rants against Wells Fargo may soon have as many volumes as the Harry Potter books. Seriously, I worried that my dislike of the bank might be overblown […]

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Wells Fargo: Worst Bank EVER, Part III

I took a client through a chapter 7, and got her a discharge.  She and I were done, and she had no more personal debt. Then she sought a loan modification with Wells Fargo. I knew that she was doing a loan modification because Wells Fargo sent me dozens of letters saying that this is […]

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Who Really Owns Your Debt?

I deal a lot with bill collectors.  Here is an eye-opening description of how their business works. Settling a debt can be . . . .unsettling.  If some unknown company collects on a credit card debt that’s five years old, how do you know that the collector actually has the right to collect that debt […]

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Two Good Reasons to Avoid Post-Bankruptcy Loans

A client sent me a letter he got from a car dealership touting the financing he can get even though he is currently in bankruptcy.  You can find a copy of the letter here. How does a car dealer think of a person going through bankruptcy? Desperate? A victim?  I do not see any financing […]

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Payday Lenders

Here is a very amusing and outraged report on “payday lenders” from John Oliver, the British reporter who apprenticed with Jon Stewart and Steven Colbert. He’s accurate in presenting the problem: desperate and unthinking people can get money easily, but they will pay astronomical interest and the lenders are unscrupulous when it’s time to collect. […]

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Five things to know when hiring your child to work for you

I love having my 18-year-old daughter work in my law firm.  She’s smart and motivated.  She gets to see law in action.  She’s done wonders for my website, and she gets the mail out. She keeps a timesheet.  I pay her through a payroll company, which withholds funds for income and social security taxes, among […]

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Misleading Radio Ads

I heard a radio ad about solving IRS problems. “It’s a fact that when you owe $10,000 or more, the IRS can take your car, your house . . . even your freedom.” The advertiser went on to say that its professionals reduce tax liabilities in amounts of “70, 80, even 90 percent of what’s […]

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Get rid of traffic tickets in bankruptcy (it’s imperfect)

You file bankruptcy to get rid of debts you can’t afford to pay and to get the fresh financial start in life that you so desperately need. But remember … not all debts can be wiped out in your bankruptcy. The Bankruptcy Code lists several types of debts that can’t be discharged in bankruptcy. These […]

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Why the FreeCreditReport.Com ads are a scam

When is FREE not FREE? In a world seemingly driven in all matters by credit reports, getting that report for nothing ought to be a good thing, But the commercial entities beat the federal government to the web address freecreditreport.com. And they also got a better ad agency that wrote catchy tunes promoting their product, under […]

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Pigs Get Fat, and Hogs Get Slaughtered

That’s a great saying, and it applies well to pre-bankruptcy planning.  It is perfectly acceptable to move assets around before a bankruptcy, within reason.  It’s a little like the difference between tax avoidance and tax evasion: there are legal limits to avoiding taxes, and there are legal limits to avoiding your creditors.  Stay within those […]

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