Filing Error Prevents Bank from Collecting Debt
Filing Error Prevents Bank From Collecting Debt
Recently, a trial court decided that Citibank could not recover a credit card debt, because its attorney forgot to attach an affidavit to a court filing. The affidavit should have provided the amount of debt the defendant was alleged to have owed. Without an affidavit stating the amount of the debt, the court set the damages at zero.
This case occurred in Arizona. But it highlights the kinds of errors that debt collectors often make when pursuing debts in court. Similar mistakes can prevent collection in New York Courts as well.
Consumer credit defendants are entitled to certain information; and plaintiffs must submit certain documents to the court. These matters can seem very technical, and at times superficial. But the slightest mistake can mean a huge difference for a consumer credit defendant. This is why it is always best to speak with an attorney before settling a credit card debt, either in or out of court.
Litigation Attorneys in Mineola
If you would like to speak to an attorney at The Law Firm of Vaughn, Weber & Prakope, PLLC, call 516-858-2620 for a free consultation.
Filing Bankruptcy to Save Your Home
Filing Bankruptcy to Save Your Home: CHAPTER 7 Bankruptcy
Will filing a chapter 7 bankruptcy save my home from foreclosure?
If you are facing foreclosure you have likely missed a few mortgage payments. Chapter 7 does not allow you to make up your missed payments over time.
However, the “automatic stay” may delay the foreclosure long enough for a homeowner to complete a sale or loan modification.
Automatic stay – An injunction that goes into effect automatically, with some exceptions, when a debtor files for bankruptcy. It, in most cases, automatically stops most lawsuits, foreclosures, garnishments, and collection activities against the debtor.
Generally, Chapter 7 bankruptcy is a better option for homeowners who are current on their mortgage, or at least not in foreclosure, but may be struggling due to other “dischargeable debt”.
Dischargeable debt- Debt that can be eliminated by filing bankruptcy (credit card debt, medical bills, etc.).
Filing Bankruptcy to Save Your Home: CHAPTER 13 Bankruptcy
Will filing a chapter 13 bankruptcy save my home from foreclosure?
Chapter 13 Bankruptcy DOES allow you to make up your missed mortgage payments over time (3-5 years). This is done via a monthly payment plan. A portion of your arrearage is paid along with your current monthly mortgage payment as part of your chapter 13 plan.
Also, like a chapter 7, the “automatic stay” may delay the foreclosure long enough for a homeowner to complete a sale or loan modification.
Additionally, you may also be able to “strip-off” a totally unsecured 2nd/3rd mortgage on your primary residence. This would allow the 2nd/3rd mortgage to be treated as any other unsecured creditor. Thus, it would be dischargeable upon the completion of the Chapter 13 plan.
As always, The Law Firm of Vaughn, Weber & Prakope, PLLC is here for you should you need us. Contact us at (516) 858-2620 to speak with a bankruptcy attorney.