2013 April 29 by jesse
This is what the chapter 7 meeting of creditors room in Denver looks like. No judge. No jury. No torture devices. Good and boring. Just the way it should be. (Some days it can make the DMV look almost interesting).
Meeting of creditors take about 5 minutes each and they hold 45-60 a day. They ask the same 20 questions over and over.
Tip: Do it right the first time you go so you don’t have to endure sitting through other interviews a second time.
If you have a good attorney your meeting should be like a knife through warm butter.
This is the building the meetings are held in: 1999 Broadway. Denver
2013 April 15 by jesse
Below is a link to download a PDF of the Chapter 7 Bankruptcy timeline that I’ve been handing out to clients for the last several years.
Clients appreciate being able to see a simple and accurate illustration of what is to be expected in their case.
I like using illustrations like this one in my practice. They help educate and set expectation. When this is done right the clients have an overall better experience and are less nervous and scared.
My wife and I have 5 children. When my wife was pregnant for the first few times we both found comfort in educating ourselves about pregnancy and birth process. It really helped to know what to expect. A lot of what we learned came from the popular book “What to Expect When You’re Expecting.”
If I wrote a book I might call it, ” What to expect when you’re in bankruptcy.” It would be full of easy to understand information and illustrations (like the one below).
There should rarely be any surprises in a chapter 7 bankruptcy case if the case is well prepared and the client is educated on the process. This illustration of the chapter 7 process helps by setting realistic expectations and helping clients understand the process. I think you’ll find it helpful.
Let me know what you think.
2013 April 11 by jesse
I, Jesse Aschenberg, had a great time speaking at the monthly meeting of the Mile High Chapter of the Women’s Council of Realtors. Thanks for having me!
2013 April 9 by jesse
As a Denver bankruptcy lawyer, I have been receiving multiple calls from clients who filed bankruptcy a few years ago who are now eligible to re-finance their current mortgage or purchase a home.
The mortgage lenders and brokers frequently ask my clients “Did you reaffirm the mortgage?”
Wells Fargo, in particular, has been offering our past clients refinancing of their mortgage only to deny it later because a reaffirmation agreement was not filed in the bankruptcy case.
Wells Fargo tells our clients that they’ll approve them for a re-finance if they will file a reaffirmation agreement in their two-year-old chapter 7 bankruptcy case. Unfortunately, this is not an option. Once the bankruptcy discharge has been issued by the court, the court cannot approve a reaffirmation agreement.
Our solution: If you cannot re-finance with the mortgage lender you had when your bankruptcy was filed, apply with a different lender.
Our contacts at First Option Lending have recently told us that an individual who filed chapter 7 over 2 years ago is eligible to re-finance their mortgage now if they have not missed any mortgage payments and otherwise qualify. You don’t need a reaffirmation agreement to re-finance if your have a stellar payment history and your income is steady and verifiable.
It is common practice for bankruptcy attorneys to advise their clients to not reaffirm their mortgages and other debts. A Reaffirmation Agreement is an agreement made between the debtor (our client) and a creditor (like Wells Fargo) to agree to pay a debt that would otherwise be discharged (forgiven) by the bankruptcy.
The agreement is a court-approved new post-bankruptcy contract with the creditor. It gives back the lender the right to sue our clients (including wage and bank garnishment) if they default in the future.
How can a bankruptcy attorney advise his client to put himself or herself in that situation? Especially today when an astounding number of homes are underwater and the economy is so uncertain.
The benefits of signing the reaffirmation agreement are outweighed by the risks.