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Fresh Start

Bankruptcy: A Fresh Start, But at What Cost?

What we’re seeing, recently, in such cases, is that courts are often finding for the creditor – a reversal of the tenor of previous judgments. Attorney Don Maurice wrote back in November of 2014 that “a U.S. Circuit Court decision this summer took an extraordinary step when it held that filing a proof of claim on time barred debt is conduct that violates the FDCPA. At the time, attorneys close to both bankruptcy and FDCPA proceedings warned that it would touch off a very real firestorm in that sector of the ARM industry. That has proven to be quite true.”

Lessons Learned

10 Years Later: What Have We Learned from BAPCPA?

With a 2014 reporting of just over 3 trillion dollars in non-mortgage consumer debt, up from a 2006 total of 2.4 trillion, why do we see continued reduction in bankruptcy filings? Filings have increased each year but have not yet returned to pre-BAPCPA levels. The amount of reported debt may be deceiving however, as 2006 saw a significant change in the reporting of consumer debt. That was the year that student loan debt started being reported separately from other consumer debt. That change is important, because student loan debt is not normally eligible for discharge in a bankruptcy filing. What we see now is a more accurate accounting of the debt that could be eligible for bankruptcy losses. Those figures allowing for inflation and population growth do not show a significant growth in real potential loss.

east-vs-west2

The Ultimate Irony – The State of West Virginia Needs Help in a Debt Collection Matter

I saw this story from the Charleston Gazette-Mail today. The headline caught my attention, “Morrisey aims to collect $13.8 million from usurious lender” But, the first sentence in the article really grabbed me. It read: “West Virginia Attorney General Patrick Morrisey is seeking to hire a lawyer licensed in California to help collect a $13.8 million […]

Outsource In-House Signboards

The 986 Words That Have Guided First Party Outsourcing for 15 Years

For the past 15 years lawyers have artfully drafted agreements that address such things as whether the accounts being worked are “in default” and whether the employees of an agency working the business are “de facto” employees of the creditor. Often the contract would require that those same employees be segregated from the rest of the company and/or working in isolated space. Numerous other provisions in First Party service agreements all have their genesis in deMayo. Times have changed.

Head in Hands

Huffington Post Article About Private Collection Agencies Potentially Collecting IRS Debt Hits a Nerve with this ARM Veteran

Last week the Huffington Post published an article that just sent me over the edge. The headline read, “Republicans Want Private Debt Collectors To Replace IRS Agents; The GOP thinks it’ll save the government money, but the facts suggest the opposite.” While the headline got my attention, the first two sentences really got my blood boiling…

Pony Express

3 Strategies to Overcome USPS Reform

Due to loss of revenue, the USPS has implemented reforms in an effort to combat changes. These include consolidating as many as 82 mail processing facilities, raise rates, and, perhaps most importantly, single-piece, First-Class mail is expected to be delivered in two to three days, rather than one to two days – and overnight delivery may be eliminated for a considerable portion of First-Class mail. Does that have to affect your collection floor?

Sophia Grace

BWF: Best Work Friends

Connections and associations in a business setting take time to build and maintain, arguably even more time than in your personal life. No matter what level of friendship you have or are pursuing, all relationships take various amounts of time and dedication to nurture and develop. Some might say that keeping a friend is effortless and just comes naturally, when really it is just more enjoyable “work” than, say, figuring out what the new FCC ruling means for your company.

lawsuit form

Eleventh Circuit’s Mistaken Interpretation Likely to Expose Attorneys to Increased FDCPA Liability

The Eleventh Circuit Court of Appeals recently handed down a decision that went too far in holding that all litigation related activity is subject to the FDCPA. In pursuing their client’s judgment, an attorney and law firm obtained a garnishment against Nedzad Miljkovic. Miljkovic filed a claim for exemption in response, which the creditor disputed. However, the writ was eventually dissolved on the creditor’s attorney’s motion after Miljkovic provided discovery showing that his wages were exempt from garnishment.