Molleur Law Office

Jim Molleur Attends 20th Annual NACBA Conference

Molleur Law Office — Tue, 01 May 2012 13:48:00 +0100

Jim Molleur attended the 20th Annual NACBA Conference in San Antonio, Texas recently. NACBA (National Association of Consumer Bankruptcy Attorneys) is the largest and most respected consumer bankruptcy attorney organization in the country and actively advances issues important to consumer bankruptcy debtors to the Courts, state legislatures, an...

Chapter 13 Frequently Asked Questions

Molleur Law Office — Fri, 16 Mar 2012 16:15:00 +0100

IMPORTANT INFORMATION AND FAQ's FOR CLIENTS ENTERING THE CHAPTER 13 PROCESS When do I make my first trustee payment? Your first trustee payment is due 30 days from the day your case is filed. You will not receive a statement although you should receive a “welcome” packet from the trustee’s office. Your case has been carefully configu...

Bopp Stark Advocates For Homeowners’ Rights To Highest Court In Maine

Molleur Law Office — Sun, 11 Mar 2012 01:00:00 +0100

On October 1, 2010, five Maine residents represented by Andrea Bopp Stark of Molleur Law, Thomas Cox, the National Consumer Law Center and the Center for Responsible Lending, filed a complaint against GMAC Mortgage, LLC (GMAC) on behalf of themselves and a class of Maine homeowners, alleging that the company routinely and systematically files fa...

Recent Bankruptcy Court/Divorce Court Decisions

Molleur Law Office — Sun, 11 Mar 2012 00:00:00 +0100

The Maine Bankruptcy Court issued two decisions in the fall of 2011 regarding whether certain debts arising from a divorce judgment were in the nature of domestic support obligations (DSOs) or were property divisions. The cases have somewhat similar factual patterns, but the Court concluded the debt in one case was a DSO, while found the debt i...

Sambatakos, Stark, and Hayden Become Members of Molleur Law Office

Molleur Law Office — Thu, 12 Jan 2012 15:47:00 +0100

Molleur Law Office is pleased to announce that Tanya Sambatakos, Andrea Bopp Stark, and Jennifer Hayden have become members of Molleur Law Office effective January 1, 2012. Molleur Law Office is a Limited Liability Company (LLC) and attorneys who gain an ownership interest in the office become members in the LLC, in the same way that shareholde...

Current on Student Loan Payments, But Having a Hard Time?

Molleur Law Office — Sun, 27 Nov 2011 16:00:00 +0100

There are several repayment options that student loan borrowers may have, depending on the type of student loans they have. Often, the type of student loan, federal vs. private, dictates the repayment options for the borrower. Many student loan companies don’t tell their customers about the options available, particularly if the borrower is cu...

Hayden and Stark Attend Fall Bankruptcy Conferences

Molleur Law Office — Sun, 27 Nov 2011 16:00:00 +0100

This fall, attorneys Jennifer G. Hayden and Andrea Bopp Stark attended bankruptcy conferences. In October, Jen attended the National Association of Consumer Bankruptcy Attorneys (NACBA) Annual Members Only Conference in Colorado Springs, Colorado. Jen attended the two day mortgage/foreclosure track presented by national experts such as John...

Supreme Court Restricts Bankruptcy Court Authority

Molleur Law Office — Sun, 24 Jul 2011 20:30:00 +0100

On June 23, 2011, the Supreme Court decided Stern v. Marshall. Vicki Marshall, otherwise known as Anna Nicole Smith, married a billionaire; after her husband died, his son Pierce Marshall sued Vicki in probate court asserting that she had tortious interfered with his inheritance. Vicki filed bankruptcy, and Pierce filed a complaint against her...

Bankruptcy Court Rules on Discharge Injunction Violation

Molleur Law Office — Mon, 06 Jun 2011 04:30:00 +0100

The Maine Bankruptcy Court recently ruled in Canning v. Beneficial Maine and HSBC that Beneficial Maine and HSBC violated the discharge injunction when they sent notices seeking payment of money for a discharged debt on real estate that the debtors surrendered in a Chapter 7 bankruptcy case. The Court awarded modest damages against Beneficial M...

Supreme Court Rules on Means Test

Molleur Law Office — Tue, 01 Feb 2011 04:15:00 +0100

The US Supreme Court recently decided the case of Ransom v. FIA Card Services in which the Court ruled on a debtor's ability to claim vehicle ownership expenses on the means test where the debtor has no loan on the vehicle. The means test permits debtors to claim certain expenses for the operation of their vehicles, and other expenses for the o...

Comprehensive Foreclosure Defense

Molleur Law Office — Mon, 10 Jan 2011 11:00:00 +0100

Molleur Law offers comprehensive foreclosure defense to Maine homeowners. Whether you are on the verge of foreclosure or a foreclosure law suit has been filed against you in court, we can help you review what options you may have and determine which option may be the best for you. As part of our comprehensive analysis and representation, we w...

Sambatakos elected to Habitat Board

Molleur Law Office — Fri, 03 Dec 2010 00:00:00 +0100

The Portland Habitat for Humanity Board of Directors recently elected Tanya Sambatakos as a member of the Board. Tanya previously served on Habitat's finance committee. Tanya's experience with consumers experiencing financial distress will assist Habitat's Board in accomplishing its goal to provide quality housing to low income home buyers in ...

Molleur Law Office Represents Maine Homeowners in Federal Lawsuit Against First American Title ...

Molleur Law Office — Fri, 22 Oct 2010 14:30:00 +0100

In an August 4, 2010 ruling, Judge Singal of the United States District Court certified the class and appointed Molleur Law Office as Class Counsel in the case of Campbell et al. v. First American Title Insurance Company, Docket No. 08-cv-311-P-S. The lawsuit alleges that First American did not properly charge Maine homeowners for title insur...

Molleur Law's Efforts Lead to Halt in GMAC Foreclosures

Molleur Law Office — Mon, 04 Oct 2010 11:01:00 +0100

Andrea Bopp Stark, a consumer rights attorney at Molleur Law, together with Thomas Cox of the Volunteers Lawyers Project, attorneys from Pine Tree Legal (PTLA), all of whom are members of M.A.S.H. - Maine Attorneys Saving Homes- and Nina Simon of the Center for Responsible Lending, have brought to light the disturbing practices of GMAC in filing...

Maine Court Finds Affidavit Filed in Bad Faith and Vacates Summary Judgment Order in Foreclosure

Molleur Law Office — Fri, 01 Oct 2010 14:51:00 +0100

Read the order here: Four Motions Order.pdf

MLO Works With Habitat for Humanity

Molleur Law Office — Thu, 02 Sep 2010 16:08:00 +0100

On Friday, August 27, the attorneys and staff at MLO took a break from their normal daily work schedule to spend a day helping with the construction of a new home at a Habitat for Humanity for Greater Portland work site in Westbrook. Habitat’s mission is to eliminate substandard housing throughout the world. It does this by building quality a...

Maine Court Foreclosure Diversion Program

Molleur Law Office — Tue, 13 Jul 2010 00:00:00 +0100

The Maine Legislature recently passed a law that allows homeowners in foreclosure to attend a mediation session with their lenders in an attempt to find a resolution to the foreclosure action. The purpose of the program is to assist homeowners and lenders in finding a joint solution to the foreclosure action at the beginning of the foreclosure ...

Supreme Court Decides Two Cases

Molleur Law Office — Mon, 28 Jun 2010 00:00:00 +0100

The U.S. Supreme Court recently issued several decisions in consumer bankruptcy court cases. Each case addressed an issue that divided the circuit courts across the country. In the case of Schwab v. Reilly, the Supreme Court held that where a debtor claims a certain dollar exemption in property, the exemption is limited to the precise amoun...

MLO Opens Portland Office

Molleur Law Office — Mon, 31 May 2010 00:00:00 +0100

Molleur Law Office is pleased to announce that it is opening a branch office in Portland on June 1, 2010! The new office is located at 537 Congress Street in Portland, Suite 401. 537 Congress Street houses the Bankruptcy Court on its second floor, and the United State Trustee office on the 3rd floor. Meetings of creditors with trustees ar...

Molleur and Sambatakos Attend NACBA

Molleur Law Office — Sat, 22 May 2010 00:00:00 +0100

James Molleur and Tanya Sambatakos attended the National Association of Bankruptcy Attorneys (NACBA) annual conference in San Francisco in early May. The annual conference is a 3 day event attended by approximately 1,300 consumer bankruptcy attorneys from across the country. The conference provides the most up to date legal arguments on i...

Molleur achieves "AV" Rating

Molleur Law Office — Sat, 22 May 2010 00:00:00 +0100

James Molleur was recently rated “AV” in bankruptcy by the Martindale-Hubbell attorney rating organization. Martindale-Hubbell is one of the oldest and most respected attorney listing and rating organizations in the United States. Martindale-Hubbell seeks the opinions of other attorneys to determine the proper rating for each attorney. A...

Recent Supreme Court decisions

Molleur Law Office — Fri, 26 Mar 2010 00:00:00 +0100

There have been several important US Supreme Court decisions recently. The first is Milavetz v. United States in which the Supreme Court ruled that debtors’ bankruptcy counsel are “debt relief agencies”. The Bankruptcy Code requires debt relief agencies to provide certain notices and information to debtors prior to filing a bankruptcy petition, ...

Chapter 13 Debt Limits to Adjust on April 1, 2010

Molleur Law Office — Fri, 26 Mar 2010 00:00:00 +0100

On April 1, 2010, the debt limits in Chapter 13 will upwardly adjust. Sometimes a bar to Chapter 13, these new debt limits may make filing Chapter 13 now possible where the same debtor may have had to file an individual Chapter 11 cases. Every three years (11 U.S.C. §104), the Bankruptcy Code increases the debt limits in Chapter 13 (11 U.S...

The Effects of Foreclosure on Credit Score

Molleur Law Office — Fri, 26 Mar 2010 00:00:00 +0100

Consumers frequently ask about the damage done to their credit scores if a bank forecloses. There are lots of opinions available regarding the answer to this question. Often the answer depends on who you ask. We frequently hear reports from clients who have been told that a short sale or a deed in lieu is better for credit purposes than an actu...

Process of an Individual Chapter 11 Case

Molleur Law Office — Sat, 27 Feb 2010 17:58:00 +0100

Individuals who file Chapter 11 experience the reorganization bankruptcy system in ways that are similar to corporations that file Chapter 11, but are also similar to individuals who reorganize in Chapter 13. If individuals want or need to reorganize their finances, and have more than $336,900 in unsecured debt or $1,010,650 of secured debt,...

Process of a Chapter 12 Bankruptcy Case

Molleur Law Office — Fri, 26 Feb 2010 17:57:00 +0100

Chapter 12 is the reorganization chapter in the Bankruptcy Code for family farmers or family fishermen. The Code defines a "family farmer" as an individual or entity (corporation, LLC) that has less than $3,544,525 of total debt (secured and unsecured), with not less than 50% of the debt (excluding the principal residence) related to the far...

Adequate Protection of Cash Collateral In Chapter 11

Molleur Law Office — Fri, 26 Feb 2010 00:00:00 +0100

Section 363(a) of the Bankruptcy Code provides the definition of cash collateral. Cash collateral is defined by section 363 to mean: . . . cash, negotiable instruments, documents of title, securities, deposit accounts, or other cash equivalents whenever acquired in which the estate and an entity other than the estate have an interest and incl...

Molleur admitted to US Supreme Court

Molleur Law Office — Wed, 27 Jan 2010 00:00:00 +0100

On January 25,2010, James Molleur was admitted to the Bar of the United Stated Supreme Court in a ceremony in the Supreme Court courtroom in Washington DC. The admission was coordinated with the admission of over 30 attorneys from the National Association of Consumer Bankruptcy Attorneys (NACBA). Molleur is now permitted to argue appellate case...

The Skinny on Debt Management and Credit Consolidation Programs

Molleur Law Office — Mon, 18 Jan 2010 00:00:00 +0100

Debt Repayment Programs: Too Good To Be True? We frequently see clients who are participants in these credit consolidation programs. Unfortunately, the vast number still resort to having to filing for bankruptcy. It is almost impossible to watch TV or listen to the radio these days without watching or hearing an advertisement for debt repaymen...

2009 Bankruptcy Filings Up

Molleur Law Office — Mon, 04 Jan 2010 00:00:00 +0100

According to a year-end report on the federal judiciary filed by Chief Justice Roberts, 1,402,816 bankruptcy cases were filed in 2009. This number represents 35% more cases than were filed in 2008. The most dramatic increases were seen in Chapter 7 (up 45%) and Chapter 12 (up 47%) case filings. Of additional interest is that the total busines...

The Trouble With Loan Modifications....

Molleur Law Office — Fri, 04 Dec 2009 00:00:00 +0100

The majority of our clients have a great amount of difficulty trying to work with their mortgage servicers to determine whether or not they qualify for a loan modification. They are shuffled from one department to another, told contradictory information, and after submitting their information have to deal with the servicer claiming it never rec...

First Circuit Holds Alimony Penalty Dischargeable

Molleur Law Office — Mon, 09 Nov 2009 00:00:00 +0100

The First Circuit Court of Appeals recently decided the case of In re Nelson Smith, in which the issue of a penalty payment on an alimony obligation was determined to not be a domestic support obligation. In Smith, a debtor had been ordered to pay certain alimony obligations as part of a divorce judgment. The judgment further provided that the...

Stark and Hayden Attend Conferences

Molleur Law Office — Thu, 29 Oct 2009 00:00:00 +0100

Andrea Stark and Jennifer Hayden recently attended educational conferences to enhance their skills in consumer litigation and consumer bankruptcy law. Andrea attended the National Consumer Law Center Annual Conference in Philadelphia in October which included programs in auto fraud litigation, bankruptcy law, and mortgage foreclosure prevention...

Andrea Stark named Director of Pine Tree Legal

Molleur Law Office — Sat, 12 Sep 2009 00:00:00 +0100

Pine Tree Legal Assistance recently named Andrea Stark as a member of its Board of Directors. Andrea's experience working in legal assistance legal organizations in Massachusetts and her efforts to expand the practice of consumer law litigation in Maine make her an excellent addition to Pine Tree Legal's Board of Directors. Pine Tree Legal is...

Phantom Expenses on Means Test

Molleur Law Office — Sat, 29 Aug 2009 00:00:00 +0100

The First Circuit Court of Appeals, in In re Rudler, recently ruled that above median income Chapter 7 debtors may take Means Test deductions for payments on debts secured by property that they intend to surrender. This issue has been hotly contested around the country with the United States Trustee taking the position that the Means Test shou...

What Rights Do I Have If My Car Is Repossessed?

Molleur Law Office — Wed, 05 Aug 2009 17:52:00 +0100

Bankruptcy Article #27 Losing a car to repossession is a traumatic experience for any consumer. Not only has the consumer lost access to their means of transportation, but their credit will be damaged, making it harder and more expensive to borrow in the future. And, because most creditors sell repossessed cars at auction for wholesale pric...

Long Awaited Help for Federal Student Loan Debtors

Molleur Law Office — Wed, 15 Jul 2009 17:54:00 +0100

For federal student loan borrowers, repaying loans has become more and more difficult with the increased costs of post-secondary education and the down-turn in the economy. Student loan debt is almost never dischargeable in bankruptcy, although there is a very narrow exception for undue hardship 11 U.S.C. §523(a) (8). The effect has been th...

Molleur and Sambatakos Attend NACBA

Molleur Law Office — Tue, 07 Jul 2009 00:00:00 +0100

The 2009 NACBA (National Association of Consumer Bankruptcy Attorneys) Convention was held in Chicago in May. James Molleur and Tanya Sambatakos attended the convention, which is the largest continuing education session for consumer bankruptcy attorneys in the United States. The convention conducts a variety of sessions on timely and important...

Stark Succeeds in Class Action Litigation

Molleur Law Office — Tue, 07 Jul 2009 00:00:00 +0100

Andrea Stark, working with the lawfirm of Roddy and Klein, in Boston Massachusetts, recently succeeded in defeating a motion to dismiss a class action lawsuit filed on behalf of debtors refinancing their homes who were overcharged by title insurance companies for title insurance. The case of Campbell v. First American Title Insurance Co. was de...

Mandatory Mediation in Foreclosure

Molleur Law Office — Fri, 12 Jun 2009 00:00:00 +0100

The Maine Legislature recently passed LD 1418 on an emergency basis, requiring mortgagees to participate in mediation prior to seeking a foreclosure judgment. The new law requires mortgagees to notify homeowners of the availability of mediation and loan modifications when sending default notices and at the commencement of a foreclosure lawsuit....

Unlisted Debts Not Discharged

Molleur Law Office — Mon, 11 May 2009 00:00:00 +0100

The First Circuit Court of Appeals recently ruled that unlisted debts remain undischarged in a no asset Chapter 7 case, in Colonial Surety Company v. Weizman, decided May 6, 2009. The First Circuit recognized that there was a difference of opinion on this issue in other circuit courts of appeal. Maine Bankruptcy Judge Haines in the case of In ...

First Circuit Allows Homestead Exemption

Molleur Law Office — Sun, 05 Apr 2009 00:00:00 +0100

The First Circuit, in Stornawaye Financial Corporation v. Hill (In re Hill), decided a matter of first impression when it determined that a debtor, who had fraudulently transferred real estate to his spouse, but later had the property re-conveyed back to him before filing bankruptcy was entitled to a homestead exemption in the property. Prior ...

BAP Reverses Bankruptcy Court

Molleur Law Office — Thu, 19 Mar 2009 00:00:00 +0100

The First Circuit Bankruptcy Appellate Panel recently reversed a decision of the Maine Bankruptcy Court in the case of In re Lumb. Lumb, represented by Joseph Goodman, Esq. of Portland, Maine, filed a Chapter 7 bankruptcy petition in 2001. After filing, a creditor, Nahabet Cimenian, threatened to sue Lumb's wife if Lumb didn't pay him regardin...

House Passes Loan Modification

Molleur Law Office — Sat, 07 Mar 2009 00:00:00 +0100

The U.S. House of Representatives recently passed its version of the "Helping Families Save Their Homes Act of 2009". The legislation must now go to the U.S. Senate for passage and then the House and Senate versions of the law must be reconciled before the law is presented to the President for his signature. The House version of the law propos...

NACBA Report on Loan Modifications

Molleur Law Office — Sat, 31 Jan 2009 00:00:00 +0100

The National Association of Consumer Bankruptcy Attorneys (NACBA) has issued a press release which provides evidence that loan modifications are not effectively working for many homeowners. NACBA's research shows that more than half of homeowners in financial distress are not being helped by loan modifications and those that are helped frequent...

Loan Modifications in Chapter 13

Molleur Law Office — Tue, 06 Jan 2009 00:00:00 +0100

Mortgage companies understand that they need to be more reasonable with borrowers in financial trouble. Many mortgage companies are willing to agree to loan modifications which alter the interest rate of loans and incorporating missed mortgage payments into the mortgage loan, provided that the borrower meet certain financial standards. Unfortu...

Means Test Ruling in Maine

Molleur Law Office — Sun, 30 Nov 2008 00:00:00 +0100

The Maine Bankruptcy Court issued a ruling on November 18, 2008 on the means test in the case of In re Coffin. Coffin filed a Chapter 13 bankruptcy case and filed a Chapter 13 plan. A creditor and the Chapter 13 Trustee objected to the plan on the grounds that the means test required Coffin to pay more money into his payment plan each month. ...

Stark and Hayden attend NCLC Conference

Molleur Law Office — Wed, 29 Oct 2008 00:00:00 +0100

Andrea Bopp Stark and Jennifer Hayden recently attended the National Consumer Law Conference in Portland, Oregon. The annual conference is the premier consumer law conference in the United States. Attorneys attending the conference are among the most advanced consumer law attorneys in the country. The NCLC publishes a series of pracitce manua...

Molleur Speaks at NCBJ

Molleur Law Office — Sat, 04 Oct 2008 00:00:00 +0100

James Molleur was a speaker at the National Bankruptcy Judge's Conference, held in Phoenix Arizona from September 24 - 27, 2008. The National Bankruptcy Judge's Conference is the premier conference for Bankruptcy Judges in the United States. It is one of the oldest nationally held bankruptcy conferences and features current topics of interest ...

First Circuit decides Nosek v.Ameriquest

Molleur Law Office — Sat, 04 Oct 2008 00:00:00 +0100

On October 3, 2008, the First Circuit Court of Appeals decided the case of Nosek v. Ameriquest. Nosek was a Chapter 13 debtor who had to file Chapter 13 three times before she was able to present a confirmable plan to the Bankruptcy Court. She filed Chapter 13 to save her home from foreclosure by Ameriquest. During her most recent Chapter 13 ...

Stark Speaks at MSBA seminar

Molleur Law Office — Mon, 22 Sep 2008 00:00:00 +0100

Andrea Bopp Stark was on a panel at a Maine State Bar Association litigation seminar recently along with two attorneys who primarily represent creditors in the bankruptcy as well as non-bankruptcy courts. The presentation discussed the use of consumer litigation, principally mortgage foreclosure defenses, in bankruptcy cases. This area of law...

Resolution of Motion for Relief Doesn't Prohibit Re-filing

Molleur Law Office — Mon, 22 Sep 2008 00:00:00 +0100

The Maine Bankruptcy Court recently ruled that a debtor may voluntarily dismiss a Chapter 13 case after a motion for relief from stay is filed by a creditor, but at a time when the motion is not longer pending, and then re-file a new Chapter 13 case without the re-filing prohibitions of Section 109(g) of the Code being triggered. In In re Hutch...

Credit Report Errors Violate Discharge Injunction

Molleur Law Office — Wed, 06 Aug 2008 00:00:00 +0100

The Maine Bankruptcy Court recently ruled that a creditor that intentionally inaccurately describes the status of a discharged debt on a credit report violates the bankruptcy discharge injunction. In the case of Curtis v. Salem Five Mortgage, Salem Five continued to list a discharged mortgage debt, which Curtis's ex-spouse was responsible to p...

Bankruptcy Court Issues Second Ruling on "Hanging Paragraph"

Molleur Law Office — Mon, 28 Jul 2008 00:00:00 +0100

In In re Look, The Maine Bankruptcy Court ruled that the so-called "hanging paragraph" attached to Section 1325 of the Bankruptcy Code permitted a debtor to "cram down" the debt of a car lender when there was "negative equity" in the vehicle loan. In other words, where a car lender refinanced old debt on a trade-in car, as well as financing a n...

Molleur, Stark, and Sambatakos attend ABI Conference

Molleur Law Office — Mon, 28 Jul 2008 00:00:00 +0100

James Molleur, Andrea Stark, and Tanya Sambatakos attended the Northeast Conference, a regional conference of the American Bankruptcy Institute, one of the country's leading bankruptcy and insolvency organizations. The conference was held in Brewster, Massachusetts, on Cape Cod. The conference held 3 days of seminars and other events with lawy...

Jennifer G. Hayden joins Molleur Law Office

Molleur Law Office — Wed, 02 Jul 2008 00:00:00 +0100

Jennifer G. Hayden, Esq., currently licensed to practice in Massachusetts and soon to be a member of the Maine bar, joined Molleur Law Office on June 30, 2008. Jen graduated from Northeastern University with a Bachelor of Arts degree in Psychology in 1996. She graduated from the New England School of Law in 2002 with a Juris Doctor degree and ...

Maine Increases Homestead Exemption

Molleur Law Office — Mon, 30 Jun 2008 00:00:00 +0100

The Maine legislature enacted a change to Maine's homestead exemption, effective July 18, 2008. The change increases the homestead exemption for a single homeowner to $47,500 (from $35,000) and for joint owners from $70,000 to $95,000. Individuals over the age of 60, or who are disabled, or who have disabled or elderly dependents can also clai...

2008 NACBA Conference

Molleur Law Office — Fri, 06 Jun 2008 00:00:00 +0100

The National Association of Consumer Bankruptcy Attorneys recently held its annual conference in Los Angeles, California at the Renaissance Marriott Hotel in Hollywood. Over 1000 consumer bankruptcy attorneys attended the conference from across the United States. James Molleur and Tanya Sambatakos, from Molleur Law Office, were among those in ...

Bankruptcy Court defines creditor notice

Molleur Law Office — Sat, 10 May 2008 00:00:00 +0100

Judge Haines recently ruled on the type of notice to which creditors are entitled in bankruptcy in the case of Harvey v. United Technologies. Andrea Bopp Stark from our law firm successfully argued that providing creditors notice by mail at their billing address, when no other address is given to the debtor by the creditor, is sufficient to pr...

Molleur Speaks at NBI Seminar

Molleur Law Office — Sun, 27 Apr 2008 00:00:00 +0100

James Molleur spoke at a recent National Business Institute seminar on basic consumer bankruptcy in Portland, Maine. Also speaking were Peter Fessenden, Chapter 13 Trustee for the State of Maine, and Steve Morrell, Assistant U.S. Trustee for the State of Maine. Molleur presented information on the reasons for choosing Chapter 7 or Chapter 13 f...

Loan Modifications Increase Options

Molleur Law Office — Sat, 12 Apr 2008 00:00:00 +0100

Congress recently passed a law to address the problems in the subprime mortgage market. The proposed solution did not include changes to the Bankruptcy Code which would have permitted a Bankruptcy Judge to modify residential mortgages in a Chapter 13. The mortgage industry heavily lobbied Congress against these changes to the Bankruptcy Code, ...

Vehicle Negative Equity Permits Cramdown

Molleur Law Office — Sat, 12 Apr 2008 00:00:00 +0100

The Bankruptcy Court in Maine recently decided a case which may eventually result in a decision from the First Circuit Court of Appeals on an issue of interpretation of a section of the Bankruptcy Code enacted in 2005 as part of the Bankruptcy Abuse Prevention and Consumer Protection Act. The case was In re Look and the Bankruptcy Court held th...

Credit Crunch Affects Small Businesses

Molleur Law Office — Sat, 29 Mar 2008 00:00:00 +0100

The subprime mortgage meltdown is affecting other segments of the economy. Not only are consumers with less than perfect credit harmed by the tightening of lending standards, but small businesses are feeling a credit pinch as well. Small businesses rely upon lending institutions to expand or simply stay afloat. The Federal Reserve issued a re...

Bankruptcy Improves Credit Scores

Molleur Law Office — Sun, 23 Mar 2008 00:00:00 +0100

Smartmoney.com recently printed an article describing how filing bankruptcy can improve a person's credit report. The article recognized that most people filing bankruptcy have poor credit ratings prior to filing. Once a bankruptcy case is filed and a bankruptcy discharge issued, the debts listed on the credit report should be changed to "incl...

Stark and Sambatakos at NCLC Conference

Molleur Law Office — Tue, 12 Feb 2008 00:00:00 +0100

Jim Molleur, Andrea Bopp Stark, and Tanya Sambatakos recently attended a 2 day National Consumer Law Center conference in Augusta, Maine which taught techniques about preventing foreclosures. The speakers at the conference included Elizabeth Renuart and Diane Thompson, nationally known for their thorough understanding of the mortgage loan secu...

Mortgage Companies Adjust Interest Rates

Molleur Law Office — Mon, 28 Jan 2008 00:00:00 +0100

With Congress considering modifications to the Bankruptcy Code and the President encouraging mortgage companies to freeze interest rates on adjustable interest rate mortgages, some much needed changes are beginning to appear on the mortgage scene for tapped-out consumers. Mortgage companies are voluntarily agreeing to interest rate reductions ...

Andrea Bopp Stark Joins Office

Molleur Law Office — Wed, 26 Dec 2007 00:00:00 +0100

Andrea Bopp Stark, Esq. will join Molleur Law Office in January, 2008 as an associate attorney. Andrea graduated from the University of Vermont with a Bachelor of Arts degree in 1991 and obtained a Masters in Social Work from Boston College Graduate School of Social Work in 1997. She also graduated from Boston College Law School with a Juri...

Molleur Law Office Moving!

Molleur Law Office — Sun, 16 Dec 2007 00:00:00 +0100

On December 31, 2007, Molleur Law Office will move to a new location at 419 Alfred Street, Biddeford, Maine. The office will be in a building first constructed in the mid-1980s by the then law office of Walker, Bradford and Hull, and designed to incorporate solar technology with heat pumps for heating and cooling. Although there have been som...

Mortgage Modification Legislation

Molleur Law Office — Tue, 11 Dec 2007 00:00:00 +0100

The House of Representatives has reached agreement on legislation to permit the modification of mortgages for consumers in bankruptcy. The House bill allows bankruptcy judges to modify home mortgages that are on the verge of foreclosure. The legislation would limit the option to modify to subprime mortgages and nontraditional loans that are i...

Collection of Discharged Debts

Molleur Law Office — Sun, 18 Nov 2007 00:00:00 +0100

A recent article in Business Week reported on a bed trend discovered in creditor (especially credit card creditor) behavior. Bankruptcy Judge Thomas Small, from North Carolina, had an opportunity to learn about the practice of creditors selling discharged debt to third parties. Discharged debts are obligations which were included in a bankrup...

Debt Management Co. Lies

Molleur Law Office — Sat, 10 Nov 2007 00:00:00 +0100

As I was raking leaves this fall and listening to the radio, I heard an advertisement for a debt management company. The company promised that consumers burdened with debt could work with the company to reduce their debt and avoid bankruptcy. The company also promised that the consumers could protect their credit rating and enhance their abil...

Homestead Exemption Denied

Molleur Law Office — Sat, 10 Nov 2007 00:00:00 +0100

Judge Haines recently decided that a consumer was not entitled to a homestead exemption where the consumer had obtained a divorce several years earlier and had transferred his interest in his home to his wife in exchange for a payment of $50,000, in the case of In re Toppi. Toppi and his wife did not obtain divorce attorneys to help them settle...

Pine Tree Legal Defends Foreclosures

Molleur Law Office — Sat, 27 Oct 2007 00:00:00 +0100

Pine Tree Legal Assistance, a non-profit organization which helps low income Mainers with a variety of legal matters, is sponsoring foreclosure prevention seminars for attorneys willing to participate in a pro bono program for at least one client each year. Chet Randall, Esq., the primary Pine Tree Legal representative in charge of the program...

Exemption Laws Change

Molleur Law Office — Sat, 27 Oct 2007 00:00:00 +0100

Edward Caron, Esq., a Biddeford attorney and former state representative, proposed a change to the State of Maine exemption laws to enable individuals to protect local, state, and federal public assistance benefits from bankruptcy trustees and creditors. The State Legislature listened to testimony from Ed Caron, Jim Molleur, and a representati...

Sambatakos attends NACA Conference

Molleur Law Office — Sun, 09 Sep 2007 00:00:00 +0100

Tanya Sambatakos, an associate in the office, recently attended a NACA (National Association of Consumer Attorneys) conference in St. Louis, Missouri. The conference focused on remedies available to consumers harmed by predatory lending. The conference topics included litigation and negotiation techniques available to attorneys who seek to pr...

Foreclosures in Maine to Rise

Molleur Law Office — Sun, 09 Sep 2007 00:00:00 +0100

The Portland Press Herald recently reported on the increasing number of home mortgage foreclosures. The article, entiled "Home Credit Crisis Widens" referenced a website by the Mortgage Brokers Association (www.mortgagebankers.org) for the information supporting the article. The article explained that higher mortgage payments, lower house pr...

Molleur Speaks at ABI Conference

Molleur Law Office — Tue, 31 Jul 2007 00:00:00 +0100

On July 31st, James Molleur spoke about consumer finance and personal bankruptcy under Chapters 7 and 13 at the American Bankruptcy Insitute International Law program at the Fletcher School of Diplomacy at Tufts University in Medford, Massachusetts. The Conference provided a multi-day program for Armenian scholars, judges, and public officials...

New Scam on Homeowners

Molleur Law Office — Sun, 08 Jul 2007 00:00:00 +0100

The New York Times recently published an article on a new scam being perpetrated upon homeowners in financial distress. The scam takes various forms, but the promises by the scam artists are the same - they may provide distressed homeowners cash upfront, free monthly rent, and/or a chance to retain their homes in the long run. In all cases, t...

Risk of Foreclosure

Molleur Law Office — Sun, 17 Jun 2007 00:00:00 +0100

MSN recently published an article on the internet about which consumers were most likely to experience foreclosure. The article summarized a study by Christopher Cagan, the director of research and analytics for First American Corelogic. Cagan noted that there were about 8.4 million adjustable rate mortgages (ARMs) originated in 2004, 2005, an...

U.S. Trustees Seek Abuse

Molleur Law Office — Sat, 02 Jun 2007 00:00:00 +0100

The U.S. Trustee's office in Washington D.C. is taking its responsibility under the Bankruptcy Reform law seriously. The U.S. Trustee has created a more powerful enforcement arm to seek out and pursue non-existent debtor "abuse" of the bankruptcy system. The U.S. Trustee's marching orders were created by Congress, after considerable financial...

First Circuit decides Skorich

Molleur Law Office — Fri, 18 May 2007 00:00:00 +0100

The First Circuit Court of Appeals recently decided the case of Ford, Trustee v. Skorich, holding that the creation of an escrow account for the proceeds of the sale of real estate did not constitute a preferential transfer. The $300,000 from the sale of the real estate were generated during a divorce in which the debtor and his former spouse ...

Process of a Corporate Chapter 11 Case

Molleur Law Office — Sat, 05 May 2007 00:00:00 +0100

Corporate or LLC Chapter 11 cases are filed by businesses which are able to reorganize their finances to operate profitably after filing bankruptcy. The automatic stay prevents creditors from seeking collection of any claims after the Chapter 11 case is filed. Businesses in Chapter 11 no longer need to immediately pay tax or general unsecured cr...

James F. Molleur wins the two largest Automatic Stay Violation awards in Maine bankruptcy history

Molleur Law Office — Mon, 23 Apr 2007 00:00:00 +0100

Bartels v. Citicards, Decided on October 11, 2005 A chapter 7 case in which Citicards repeatedly called and harassed the client after filing a Chapter 7 (and the client advising Citicards of the bankruptcy filing). The Chapter 7 Trustee even wrote to Citicards to persuade them to stop contacting Bartels, but to no avail. Important to the decis...

Sambatakos Attends NACBA Conference

Molleur Law Office — Mon, 23 Apr 2007 00:00:00 +0100

Tanya Sambatakos, a recently hired asssociate, attended the annual conference of the National Association of Consumer Bankruptcy Attorneys (NACBA) in Philadelphia from April 19 - 22, 2007. NACBA is an association comprised of over 1,000 consumer bankruptcy attorneys from across the United States. The annual conference presented numerous educa...

Molleur speaks at National Conference

Molleur Law Office — Wed, 18 Apr 2007 00:00:00 +0100

Jim Molleur was a speaker at the American Bankruptcy Institute's Spring Conference in Washington D.C. on April 14. 2007. The Spring conference is one of two national conferences held eqch year by the American Bankruptcy Institute. The American Bankruptcy Istitute is a pre-eminent non-profit organization representing atorneys, bankers, financia...

Subprime Lenders and "Losership"

Molleur Law Office — Tue, 27 Mar 2007 00:00:00 +0100

During recent Congressional hearings on the collapse of the subprime mortgage market, Mike Calhoun, from the Center for Responsible Lending, testified about the effect of subprime lending on home ownership during the past nine years. According the Center for Responsible Lending, subprime loans made during the past nine years have led or will le...

Congress Investigates Credit Card Industry

Molleur Law Office — Sat, 10 Mar 2007 00:00:00 +0100

The U.S. Senate Committee on Governmental Affairs has opened an oversight hearing on the credit card industry. Senators Levin and Coleman expressed concerns that credit card companies are designing interest rates to "entangle unsuspecting consumers". The committee focused its attention on the risk-based pricing of credit cards and the adequacy...

Debt Consolidation Programs: Bankruptcy Can be a Better Option

Molleur Law Office — Thu, 08 Mar 2007 17:51:00 +0100

Bankruptcy Article #26 March, 2007 Many people struggle for years trying to complete debt consolidation programs rather than filing bankruptcy because they think a bankruptcy will ruin their credit forever. While a bankruptcy can appear on your credit report for up to ten years, there is no reason why your credit score should not be s...

8 Billion Credit Card Solicitations

Molleur Law Office — Sun, 04 Mar 2007 00:00:00 +0100

Harvard Law Professor Elizabeth Warren recently wrote an article in which she noted that the credit card industry responded to Congress's bankruptcy bill of 2005 by sending out 8 billion credit card solicitations in 2006 - a 30% increase over 2005. The credit card industry decided that if Congress could make filing bankruptcy more difficult, it...

Supreme Court decides Marrama

Molleur Law Office — Sat, 24 Feb 2007 00:00:00 +0100

The U.S.Supreme Court decided the case of Marrama v. Citizens Bank on February 21, 2007, affirming the decision of the First Circuit Court of Appeals by a 5-4 vote. This case was closely watched by consumer bankruptcy lawyers as it made it way up to the Supreme Court because it addressed an issue which had been subject to conflicting decisions ...

First Circuit BAP decides Kibbe case

Molleur Law Office — Sat, 24 Feb 2007 00:00:00 +0100

The First Circuit Bankruptcy Appellate Panel decided the Kibbe v. Sumski case on February 20, 2007. The Bankruptcy Appellate Panel is one of two appellate choices for litigants unhappy with a decision of a bankruptcy court, with the other appellate choice being a U.S. Federal District court. The Bankruptcy Appellate Panels are comprised of thr...

Excessive Mortgage Attorney Foreclosure Fees

Molleur Law Office — Sun, 11 Feb 2007 00:00:00 +0100

The Boston Globe recently reported that a class action lawsuit was settled in Massachusetts against the Harmon Law Office of Newton, Massachusetts for the sum of $800,000 which represented unearned legal fees in foreclose cases initiated by that law firm against homeowners. The principal plaintiff, Sharon Pettway, tried to save her home from a ...

Subprime Lenders Implode

Molleur Law Office — Fri, 02 Feb 2007 00:00:00 +0100

The subprime lending market lends money to people who has less than perfect credit. It provides mortgages as well as other loans, at higher than usual interest rates. This is the market for many people who frind themselves in financial distress and need money to pay over extended credit cards or other debts which overburden the household budge...

James Molleur Speaks at Bankruptcy Seminar

Molleur Law Office — Sat, 20 Jan 2007 00:00:00 +0100

The National Business Institute sponsored a seminar in Portland, Maine on January 22, 2007, titled "Advanced Consumer Bankruptcy Issues". The seminar topics included Chapter 7 issues, Chapter 13 issues, tax matters, ethics, Fair Credit Reporting Act, and Family Law and the Bankruptcy Code. The seminar was intended for experienced bankruptcy co...

Debt Collectors Violate Federal Law

Molleur Law Office — Sun, 07 Jan 2007 00:00:00 +0100

Debt Collectors, whether private companies, or law firms, have been increasingly violating the Fair Debt Collection Practices Act (FDCPA). The debt collectors may be emboldened by the changes to bankruptcy law in October 2005. Any debt collection company or law firm that collects debts is required to comply with FDCPA. The law prohibits coll...

Introduction to Exemptions

Molleur Law Office — Sat, 30 Dec 2006 17:20:00 +0100

Bankruptcy Article #5 A. State Exemptions There are two statutory exemptions schemes available under the Bankruptcy Code. The federal exemptions, 11 U.S.C. Section 522, are available if permitted under state law. States are allowed to "opt - out" of the federal exemptions pursuant to Section 522(b) (1). Maine has chosen to use only state l...

Mortgage Foreclosures Increase

Molleur Law Office — Sat, 23 Dec 2006 00:00:00 +0100

CNNMoney.com reports that an increasing number of homeowners with subprime mortgages will lose their homes to foreclosure in the next few years. Subprime loans are those with higher interest rates and are given to people considered higher risks by the credit industry. The higher interest rates increase the likelihood of a default, along with ...

Senate Oversight Hearing on Bankruptcy

Molleur Law Office — Sun, 10 Dec 2006 00:00:00 +0100

On December 6, 2006, the United States Senate held an "oversight" hearing to determine the effectiveness of the revisions to the Bankruptcy Code that took effect in October 2005. The speakers included Professor Todd Zywicki, of Gerge Mason University School of Law. Professor Zywicki was practically the only academic that supported the revisio...

Why Choose Chapter 13 Over Chapter 7?

Molleur Law Office — Wed, 29 Nov 2006 17:31:00 +0100

Bankruptcy Article #12 The #1 reason for choosing Chapter 13 bankruptcy over chapter 7 is to save your home from foreclosure. »See the List of Nine Reasons. Who makes a good candidate for Chapter 13 Bankruptcy? Nine Reasons to file for Chapter 13 Bankruptcy Are there benefits to Chapter 7 bankruptcy? Whether an individual uses Chap...

Chapter 11 for Small Businesses

Molleur Law Office — Mon, 27 Nov 2006 17:49:00 +0100

Bankruptcy Article #25 James Molleur November, 2006 The purpose of this Article is to provide a basic understanding of Small Business Chapter 11 bankruptcy cases. As with any other bankruptcy topic, the specific requirements for any particular business going through Chapter 11 can vary, but there are certain experiences that are universal...

Small Business Chapter 11

Molleur Law Office — Sat, 25 Nov 2006 00:00:00 +0100

Our economy is not running smoothly for everyone. While some individuals and businesses are flourishing under current business conditions, others are not. In particular, small businesses which depend upon local government contracts, or upon tourists, weather conditions (landscaping, snowplowing), or low fuel costs (transportation, trucking), h...

Dischargeability of Taxes

Molleur Law Office — Sun, 05 Nov 2006 17:23:00 +0100

Bankruptcy Article #7 In a Chapter 7 case, Section 523 of the Code determines which tax debts are non-dischargeable. Included are: Taxes entitled to priority under Section 507(a). See Section 523 (a) (1) (A). A tax due upon filing a return, but the return is not filed. Section 523(a) (1) (B) (i). A tax with respect to which a required r...

Bankruptcy Reform - 1 Year Later

Molleur Law Office — Sat, 04 Nov 2006 00:00:00 +0100

A recent analysis of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) by Gayle Ronan on MSNBC concluded that the jury is still out on the effectiveness of the new law. The average number of bankruptcy filings in the United States in the past few years has been about 1,500,000, but the number filing filing from October 2005 (...

Market Bets on Loan Defaults

Molleur Law Office — Mon, 30 Oct 2006 00:00:00 +0100

The Wall Street Journal recently reported that the subprime loan markets are counting upon significant defaults in order to profit from the loan insurance placed upon each mortgage loan. One of the benefits of our new market driven mortgage loan environment is that more individuals are becoming homeowners than ever before in the United States....

Maine State Bar Association Bankruptcy Conference

Molleur Law Office — Fri, 13 Oct 2006 00:00:00 +0100

James Molleur co-chaired a 2 day Maine State Bar Association Bankruptcy Conference in South Portland, Maine on October 5th and 6th, 2006. The Conference was an ambitious effort to present speakers and information to bankruptcy attorneys and other professionals on bankruptcy after the passage of BAPCPA, the Bankruptcy Abuse Prevention and Cons...

Accuracy of Property Valuation

Molleur Law Office — Wed, 11 Oct 2006 00:00:00 +0100

Bankruptcy Article #20 Hannigan v. White, 1st Circuit Court of AppealsDecided on June 2, 2005 The First Circuit held that the bankruptcy court was entitled to determine that a debtor, who intentional undervalued his property, could not later amend his homestead exemption to protect the actual value of the property, once that value was found by...

Process of a Chapter 13 Bankruptcy Case

Molleur Law Office — Tue, 19 Sep 2006 17:45:00 +0100

Bankruptcy Article #23 James MolleurSeptember, 2006 This article will explain, in general, the process of a Chapter 13 case in the State of Maine. There are several steps that every Chapter 13 case follows: The creation of the Chapter 13 plan The trustee meeting Confirmation of the Chapter 13 plan Court approval of the Motion to Al...

Winners and Losers under BAPCPA

Molleur Law Office — Thu, 14 Sep 2006 19:30:00 +0100

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 altered the relationship of debtors and creditors, and even altered the relationships between creditors. Debtors are generally losers under this major revision of the Bankruptcy Code (initially adopted in 1978, and only minimally changed over the past 27 years, until the passag...

York County Bar Association Presentation

Molleur Law Office — Tue, 12 Sep 2006 00:00:00 +0100

On September 11, 2006, James Molleur moderated a panel of two speakers, Maine Bankruptcy Judge James B. Haines, Jr. and Peter Fessenden, Chapter 13 Trustee for the State of Maine, for the York County Bar Association. The YCBA seminar was held in Saco Maine and addressed the changes in the practice of law under the Bankruptcy Abuse Prevention and...

First Circuit Rules against GMAC

Molleur Law Office — Sat, 09 Sep 2006 00:00:00 +0100

On September 1, 2006, the First Circuit Court of Appeals reversed the Maine Bankruptcy Court decision in Pratt v. GMAC. This is one of the most significant decisions in consumer bankruptcy in recent years, and represents a recognition by the First Circuit that creditors have been engaging in inappropriate behavior in attempting to collect mone...

Payment Demanded for Vehicle in Bankruptcy

Molleur Law Office — Mon, 04 Sep 2006 17:42:00 +0100

Bankruptcy Article #19 Update- September 1, 2006 On September 1, 2006, the First Circuit Court of Appeals reversed the Maine Bankruptcy Court decision in Pratt v. GMAC. This is one of the most significant decisions in consumer bankruptcy in recent years, and represents a recognition by the First Circuit that creditors have been engaging in...

How to Correct Mistakes On Your Credit Report

Molleur Law Office — Mon, 28 Aug 2006 17:12:00 +0100

Bankruptcy Article #3 Once someone successfully completes a bankruptcy, by receiving a bankruptcy discharge, it is usually necessary to check credit reports to make sure they accurately reflect the status of each former financial obligation. It makes sense to obtain these credit reports within 3 months after receiving the bankruptcy dischar...

Effect of Bankruptcy Reform

Molleur Law Office — Sat, 19 Aug 2006 00:00:00 +0100

When Congress enacted the Bankruptcy Reform Law in October 2005, everyone expected that it would be more difficult to file bankruptcy. The credit card companies rejoiced - they wanted to collect more money from consumers and they had paid enough money to Congress to get the law passed. Consumers would be hounded by debt collectors and discoura...

Foreclosure Rescue Scams

Molleur Law Office — Sat, 12 Aug 2006 17:44:00 +0100

Bankruptcy Article #22 James MolleurAug 12, 2006 Homeowners with both fixed and adjustable rate mortgages are finding themselves in financial distress. Foreclosure rescue scammers are agressively preying upon these homeowners, causing them to lose their built up equity and their home. The scammers lead the homeowners to believe they are ob...

Mortgagee Truth in Lending Violations

Molleur Law Office — Sun, 06 Aug 2006 00:00:00 +0100

The federal Truth in Lending Act (also known as TILA) provides borrowers with powerful tools to help rescind mortgages which violate federal law. Every lender providing a mortgage must give to its borrowers certain material loan disclosures and two copies of a "notice of recission" at the time of the loan closing. If the lender fails to provid...

Individuals in Chapter 11

Molleur Law Office — Sun, 06 Aug 2006 00:00:00 +0100

Chapter 11 bankruptcy is usually reserved for businesses interesting in reorganizing their finances, but it is increasingly being considered for individuals. Although individuals have always been able to use Chapter 11, most individuals use Chapter 13 to "reorganize" their finances. For individuals, "reorganization" means to pay otherwise non-...

Disincorporations

Molleur Law Office — Wed, 02 Aug 2006 17:37:00 +0100

Bankruptcy Article #15 Closely held corporations, in which there are only one or two shareholders can not file the corporation into bankruptcy unless the corporation files a Chapter 11 case. Chapter 11 bankruptcy cases are expensive. The filing fee for a Chapter 11 is $1,000 (compared to a $274 filing fee for a Chapter 13 case) and the atto...

The Dangers of Payday Lenders

Molleur Law Office — Sat, 22 Jul 2006 00:00:00 +0100

Payday lenders are organizations which encourage an individual to take out a small loan to be repaid by the individual's next payday. The interest rates charged by payday lenders are far higher than any other credit service, even higher than credit card default rates. Payday lenders try to persuade you that you need cash "today" and that their...

Significant Automatic Stay and Discharge Injunction Violations Award

Molleur Law Office — Sat, 22 Jul 2006 00:00:00 +0100

On June 23, 2006, Judge James B. Haines, Jr. entered a default judgment and damages award to Donald and Diane D'Agostino against Blair Credit Services and two collection agencies. Judge Haines's order, entered after a evidentiary hearing on damages at which Donald D'Agostino testified, was in the amount of $15,000 for actual, compensatory damag...

The Moral Burden of Bankruptcy

Molleur Law Office — Sun, 09 Jul 2006 00:00:00 +0100

The Christian Science Monitor recently published an article regarding the mixed messages debt burdened consumers face on the moral implications of filing for bankruptcy. Christian conservatives supported the bankruptcy reform legislation as a way to emphsize the need to pay back obligations incurred, citing Biblical references. As stated by Chri...

ABI Northeast Bankruptcy Conference

Molleur Law Office — Sun, 09 Jul 2006 00:00:00 +0100

The American Bankruptcy Institute, a non-partisan organization whose 11,000 members comprise both debtors' and creditors' counsel, as well as other professionals, academics, and members of the judiciary, is dedicated to research and education on matters of insolvency. It website is www.abiworld.org. The ABI's 13th Annual Northeast Conference i...

American Family Debt Increases 33.1%

Molleur Law Office — Sat, 24 Jun 2006 00:00:00 +0100

According to a study by the Center for American Progress, a Washington think tank run by former Clinton White House chief of staff John D. Podesta, the debt of an American family earning $45,000 per year rose 33.1% from 2001 to 2004. The study was based upon data complied by the Federal Reserve Board's Survey of Consumer Finances. The study co...

Maine Bankruptcy Court Limits Arbitration Option to MBNA

Molleur Law Office — Sat, 24 Jun 2006 00:00:00 +0100

On June 16, 2006, in Merrill v. MBNA America Bank, N.A., Judge Haines ruled against MBNA's request for arbitration regarding an automatic stay violation, although he held that various other federal and state law violations should be determined by arbitration. Arbitration is a private claims resolution method favored by credit card companies to ...

Mortgage Foreclosures on the Rise

Molleur Law Office — Fri, 23 Jun 2006 00:00:00 +0100

The Federal Reserve reports a rise in mortgage foreclosures across the country due to increasing interest rates on ARMs. The states in which the foreclosures are more frequent are in the Midwestern section of the country , including Texas. ...

Automatic Stay Violations

Molleur Law Office — Wed, 31 May 2006 17:34:00 +0100

Bankruptcy Article #14 11 U.S.C. Section 362 of the Bankruptcy Code, otherwise known as the "Automatic Stay" is perhaps the most well known section in the Code. The Stay comes into play in every bankruptcy case at the moment the bankruptcy petition is filed with the Court Clerk's office. Section 362(a) delineates the types of matters which ...

"Undue Hardship" Remains Difficult to Prove Regarding Student Loans

Molleur Law Office — Wed, 26 Apr 2006 00:00:00 +0100

Nash v. Connecticut Student Loan Foundation. The First Circuit issued its first decision on the proper standard for determining "undue hardship" of student loans. The Court was given the opportunity to decide whether to employ the test used by the Second Circuit in the Brunner decision, or to use the "totality of the circumstances" test, which l...

Discharge denied on Fraudulent Transfer Inference

Molleur Law Office — Thu, 20 Apr 2006 00:00:00 +0100

Marrama v. Citizens Bank. The bank filed a complaint to deny Marrama his Chapter 7 discharge because he transferred property within 1 year prior to filing bankruptcy, thereby invoking Section 727(a)(2)(A) of the Bankruptcy Code. During the Trial, Marrama invoked his Fifth Amendment privilege against self-incrimination to avoid testifying. The Co...

Chapter 13 Vehicle "Cramdown" Now Less Valuable

Molleur Law Office — Mon, 10 Apr 2006 00:00:00 +0100

Brooks v. GMAC. The Maine Bankruptcy Court, on April 10, 2006, held that a car lender is not required to release its lien on a vehicle in a Chapter 13 case, pursuant to payment of the secured portion of the debt on the car, until after the debtor receives his or her chapter 13 discharge for the successful completion of the plan. In the past, deb...

Bankruptcy Costs to Rise

Molleur Law Office — Sun, 09 Apr 2006 00:00:00 +0100

Congress has raised the basic fees for filing bankruptcy- filing fees for Chapter 7 will increase to $299 (up from $274); and will increase to $274 for Chapter 13 (up from $189).

Reorganization of a Business

Molleur Law Office — Tue, 07 Feb 2006 17:39:00 +0100

Bankruptcy Article #16 A. Authority under Chapter 13 Only sole proprietorships can conduct a business in Chapter 13. 11 U.S.C. Section 1304(a) provides a description of a person who is considered in business under Chapter 13: (a) A debtor that is self-employed and incurs trade credit in the production of income from such employment is en...

Requirements of a Chapter 13 Plan

Molleur Law Office — Sun, 05 Feb 2006 17:33:00 +0100

Bankruptcy Article #13 Eligibility, Feasibility and Good Faith Three key components to a Chapter 13 plan are eligibility (whether a debtor is entitled to file a Chapter 13 under the limitations set forth in Section 109(e), feasibility (whether a debtor can fund a payment plan which complies with Section 1322 and 1325), and good faith (as se...

Preferential Transfers

Molleur Law Office — Sat, 04 Feb 2006 17:29:00 +0100

Bankruptcy Article #11 Preferences, under the Bankruptcy Code, are transfers of property of the debtor which are avoidable (or reversible), if they are: to or for the benefit of a creditor; for or on account of an antecedent debt owed by the debtor before the transfer was made; made while the debtor was insolvent; made within 90 days be...

Fraudulent Transfers

Molleur Law Office — Fri, 03 Feb 2006 17:27:00 +0100

Bankruptcy Article #10 Transfers of property are deemed fraudulent if the transfers are incurred with the actual intent to hinder, delay, or defraud a creditor, or if less than reasonably equivalent value is given in exchange for the transfer and the debtor was insolvent at the time of the transfer. See 11 U.S.C. Section 548(a). Fraudulent ...

United States Trustee Initiative

Molleur Law Office — Thu, 02 Feb 2006 17:26:00 +0100

Bankruptcy Article #9 The United States Trustee's office for the District of Maine evaluates individuals filing Chapter 7 petitions to determine whether they might be better placed in some other bankruptcy chapter. Individuals with higher incomes are the targets. If a debtor has higher income and is capable of making some payment toward his...

"Undue Hardship" is Mitigated by Partner's Income

Molleur Law Office — Wed, 01 Feb 2006 00:00:00 +0100

Lorenz v. American Educational Services. The First Circuit Bankruptcy Appellate Panel reversed a Bankruptcy Court decision which had granted an undue hardship discharge of a student loan. The Panel held that the debtor's life partner's income had a substantial effect on the debtor's actual and necessary expenses (since the debtor and his partner...

Our Bankruptcy Practice Continues to Grow

Molleur Law Office — Wed, 01 Feb 2006 00:00:00 +0100

We are pleased to announce the newest addition to the Molleur Law practice- J. Scott Logan is an attorney specializing in Chapter 7 & 13 Bankruptcy and non-bankruptcy workouts for debtors and small businesses in Maine. He continues our tradition of compassionate and skilled counsel on debt relief.

Supreme Court Decides on Preferential Transfers to States

Molleur Law Office — Thu, 26 Jan 2006 00:00:00 +0100

In the case of Central Virginia Community College v. Katz, the Court decided that a bankruptcy trustee could recover a preferential transfer from a state agency. In the past, states have asserted "sovereign immunity" to prevent a bankruptcy trustee from recovering money under the Bankruptcy Code. The Supreme Court's decision might be extended to...

Credit Card Minimum Payments Doubled

Molleur Law Office — Tue, 10 Jan 2006 00:00:00 +0100

New federal regulations became effective in 2006, mandating that the credit card companies double the minimum payments consumers must make each month on credit cards. If you are a consumer who can make only the minimum payments on your cards, you may be surprised to find yourself unable to keep up with the new credit card bills. If these payme...

Taking on Faulty Credit Practices

Molleur Law Office — Fri, 06 Jan 2006 00:00:00 +0100

My practice's ongoing litigation includes claims of violation of the FDCPA (Fair Debt Collection Practices Act). We are expecting to achieve success in protecting consumers from unscrupulous creditors and collection agencies.

Automatic Stay Not Retroactive

Molleur Law Office — Mon, 14 Nov 2005 00:00:00 +0100

Lompagno v. Salomon Brothers, First Circuit Court of AppealsIn the Lompagno case, the First Circuit decided that a dismissed Chapter 13 case, which is later reinstated, does not cause the automatic stay to be retroactively reinstated as well. Lompagno's Chapter 13 case was dismissed, and a mortgagee foreclosed and sold some real estate owned by ...

Consequences of "Bad Faith"

Molleur Law Office — Mon, 31 Oct 2005 00:00:00 +0100

Marrama v. Citizens Bank, First Circuit Court of AppealsMarrama filed a chapter 7, but failed to properly list real estate and personal property on his bankruptcy schedules. When those failures (allegedly intentional) were brought to light, Marrama tried to convert his case to Chapter 13, in order to save those properties from being taken by the...

First Circuit warns against Under-Valuation

Molleur Law Office — Thu, 02 Jun 2005 00:00:00 +0100

Hannigan v. White, 1st Circuit Court of Appeals The First Circuit held that the bankruptcy court was entitled to determine that a debtor, who intentional under valued his property, could not later amend his homestead exemption to protect the actual value of the property, once that value was found by appraisal. The result of the decision is that...

IRA/Retirement Exemptions

Molleur Law Office — Mon, 23 May 2005 17:40:00 +0100

Bankruptcy Article #17 Rousey v. Jacoway, U.S. Supreme Court.Decision dated April 4, 2005 The Supreme Court determined that in individual’s IRA was exempt under federal exemption laws when that individual files bankruptcy. Before this decision, most courts had concluded that IRAs were available to bankruptcy trustees and the proceeds to th...

What are the Benefits of Electronic Filing?

Molleur Law Office — Tue, 03 May 2005 17:14:00 +0100

Bankruptcy Article #4 On January 1, 2001, the docket for the U.S. Bankruptcy Court in Maine was changed from a manual, paper docket to electronic. The court's docket is the official record of any document filed with the court. Prior to the creation of the new electronic docket, the Clerk's office maintained the docket and kept all original ...

Parochial School Not Exempt

Molleur Law Office — Tue, 26 Apr 2005 17:41:00 +0100

Bankruptcy Article #18 Watson v. Boyajian, First Circuit Court of AppealsDecision dated March 25, 2005 The Watsons had minor children who attended a parochial school. The Watsons filed a Chapter 13 case and proposed to continue paying for parochial school for their children while also proposing a Chapter 13 payment plan for their creditors...

Discharge of Student Loans

Molleur Law Office — Mon, 24 Jan 2005 17:22:00 +0100

Bankruptcy Article #6 "Undue Hardship" is Mitigated by Partner's IncomeLorenz v. American Educational ServicesUpdate: 2/1/2006 The First Circuit Bankruptcy Appellate Panel reversed a Bankrutpcy Court decision which had granted an undue hardship discharge of a student loan. The Panel held that the debtor’s life partner’s income had a substa...

Bankruptcy and Divorce

Molleur Law Office — Fri, 03 Sep 2004 00:00:00 +0100

There are many issues of law that can be explored in the intersection between bankruptcy law and divorce law. The purpose of this article is to summarize the state of the law regarding some of the most prominent issues that appear in consumer cases. The effect of a divorce judgment on the division of marital debt. There is a common mispercept...

Bankruptcy Reform

Molleur Law Office — Wed, 01 Sep 2004 17:01:00 +0100

Bankruptcy Article #2 My recent blog articles on BAPCPA Bankruptcy Reform- 1 Year Later - November, 2006Effects of Bankruptcy Reform - August, 2006 When Congress enacted the Bankruptcy Reform Law in October 2005, everyone expected that it would be more difficult to file bankruptcy. The credit card companies rejoiced - they wanted to colle...

Process for Filing for Bankruptcy

Molleur Law Office — Fri, 02 Apr 1999 13:33:00 +0100

To file a Chapter 7 bankruptcy, a person must file a bankruptcy petition schedule, statement of financial affairs, statement of intention, and creditor mailing matrix. The filing of the bankruptcy petition instantly causes the "automatic stay" (11 U.S.C. Section 362Ca) to become effective. The automatic stay prevents creditors from contacting th...