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Debtors sometimes are unable to open a checking account after receiving their bankruptcy Discharge. These debtors typically had a troubled history with their bank, generally involving fraud, bounced checks or excessive overdraft activity, resulting in this negative information being reported to a check reporting company known as Chex Systems. Such negative information remains in this database service for five (5) years and is readily accessed and utilized by its members (usually financial institutions) in making decisions about who will be allowed to open a checking account, etc.
You will not be “deleted” from Chex Systems just because your debt to the bank was discharged in bankruptcy, as they are not required to remove a previously submitted, accurate report. However, Chex Systems is credit reporting agencies just like Equifax, Experian and Trans Union, and as such is bound by the Fair Credit Reporting Act (“FCRA”) and other laws. The banks reporting to Chex Systems are required to regularly update their consumer reports with accurate information. Accordingly, when the debt that formed the basis of their negative report is discharged in bankruptcy, the member bank must report the account as “$0.00 balance due, discharged in bankruptcy”, or words to that effect. If this is not done, there is a dispute procedure set forth below that is very similar to the procedure employed to fix a credit report that is plagued with inaccurate, post-bankruptcy entries:
Step 1: Order a copy of your consumer report from Chex Systems, whose mailing address for disputes is: 7805 Hudson Road, Suite 100, Woodbury, MN 55125.
Step 2: Review the Chex Systems consumer report for accuracy, making sure that each discharged debt is reported as “$0.00 balance due, discharged in bankruptcy”, or words to that effect.
Step 3: If an inaccurate entry is noted, you should send to Chex Systems, preferably by certified mail:
· A copy of your Chex Systems report, with the inaccurate information highlighted or flagged in some fashion;
· A copy of your bankruptcy Discharge;
· A copy of Schedules “D”, “E” and “F” from your bankruptcy petition;
· A letter explaining that the disputed item is no longer accurate, and that it should be reported as “$0.00 balance due, discharged in bankruptcy.”
Step 4: Chex Systems has 30 days to investigate your dispute. During this time the FCRA requires them to contact the member bank to verify that the account now has a $0.00 balance due because of the bankruptcy Discharge.
Assuming that Chex Systems and the member bank follow the law, employing the above procedure should result in the previously reported negative information either being deleted or corrected so that it no longer acts as an impediment to your opening a checking account.
Prior to an actual bankruptcy filing our firm generally advises our clients, as a prophylactic measure, to attempt to open a checking account in a bank where they do not owe any money. Using this new account after a bankruptcy filing never presents a problem.
December 4, 2013: Several of the largest US Banks (J.P. Morgan, Citigroup, and Wells Fargo) have failed to comply, once again, with parts of the $25 Billion dollar landmark mortgage settlement according to the monitoring agency. Bank of America failed to comply earlier this year.
In March 2012, the Federal Government and 49 state attorneys general, including Wisconsin’s Attorney General, agreed to settle certain foreclosure-processing abuses with J.P. Morgan, Citigroup, Wells Fargo, Bank of American and Ally Financial Inc. The settlement included a list of hundreds of new standards governing various aspects of the loan modification and foreclosure process. The five banks were required to pay approximately $5 billion in fines and to provide consumer relief, which was to include mortgage refinancing and principal write-downs, worth approximately $20 billion.
If you are facing the threat of foreclosure, Wynn at Law and Attorney Shannon E. Wynn are here to inform you of your rights and fight to keep you in your home.
Attorney Shannon E. Wynn has been selected to the 2013 Wisconsin Rising Stars list. Each year, no more than 2.5 percent of the lawyers in the state are selected by the research team at Super Lawyers to receive this honor.
Super Lawyers, a Thomson Reuters business, is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement. The annual selections are made using a patented multiphase process that includes a statewide survey of lawyers, an independent research evaluation of candidates and peer reviews by practice area. The result is a credible, comprehensive and diverse listing of exceptional attorneys.
The Super Lawyers lists are published nationwide in Super Lawyers Magazines and in leading city and regional magazines and newspapers across the country. Super Lawyers Magazines also feature editorial profiles of attorneys who embody excellence in the practice of law. For more information about Super Lawyers, visit SuperLawyers.com.
Credit card debt is one of the most common forms unsecured debts to be discharged in bankruptcy. If you used your card recently for large purchases it is possible they may be reviewed to make sure they can be successfully discharged. This is due to certain charges that may not be eligible for elimination, and [...]
Bringing you the most up-to-date news, tips and blogs throughout the web. Here’s your Bankruptcy Update for December 03, 2013 Judge Approves Detroit Bankruptcy Diocese: Bankruptcy unavoidable Lakewood-based Pettit Oil seeks bankruptcy protection
Anyone who has lost their job or experienced a significant change in their income earnings may wonder if bankruptcy is an option to consider, especially if they feel they will be unable to make payments on their obligations. While you may feel you should begin the process right way, you may want to analyze your [...]
The city of Detroit's Chapter 9 bankruptcy filing was approved by Judge Stephen Rhodes Tuesday, officially becoming the largest municipal bankruptcy case in the history of the United States.
Judge Rhodes issued a 90-minute verbal ruling this morning, to be followed by a 140-page written ruling, finding that Detroit's financial woes meet the legal requirements for bankruptcy under a Chapter 9 reorganization, ending months of uncertainty following the initial July 18 filing
“It is indeed a momentous day. We have here a judicial finding that this once proud city cannot pay its debts. At the same time, it has an opportunity for a fresh start. I hope that everybody associated with the city will recognize that opportunity,” Judge Rhodes said in a packed courthouse.
In a surprise move, Judge Rhodes ruled that Detroit will be allowed to cut pension payments as part of its debt repayment. Much of the city's financial predicament is due to obligations to retired city workers. The pensions will be allowed to be cut as long as they are deemed "fair and equitable" to other creditors of the Motor City.
A nine-day eligibility trial earlier this month gave the city's creditors, particularly unions and retiree groups, opportunity to argue against the Chapter 9 filing, and against reduced pension obligations in particular. Judge Rhodes found otherwise, and with Michigan Governor Rick Snyder's authorization in place, the historic bankruptcy case will proceed.
(305) 891-4055 - Miami Bankruptcy Lawyer Jordan E. Bublick has over 25 years of experience in filing Chapter 13 and Chapter 7 bankruptcy cases - 1221 Brickell Avenue, 9th Fl., Miami - www.bublicklaw.com
On November 16, 2010, the American Securitization Forum has posted a white paper on the topic of "Transfer and Assignment of Residential Mortgage Loans in the Secondary Mortgage Market." The white paper was drafted to address "a number of legal theories questioning whether securitization trusts ...have valid legal title ... to the mortgage notes in those trusts."
The white paper asserts as one of its most critical principles is that when ownership of a mortgage note is transferred in accordance with common securitization processes, ownership of the mortgage is automatically transferred pursuant to the centuries old common law rule that "the mortgage follows the note." It further asserts that "this means that the assignment of a mortgage to a trustee does not need to be recorded in real property records in order for it to be a valid and binding transfer."(305) 891-4055 - Jordan E. Bublick is a Miami Bankruptcy Lawyer with over 25 years of experience in filing Chapter 13 and Chapter 7 Bankrkuptcy Cases. Bankruptcy Attorney Jordan E. Bublick has filed over 8,000 Chapter 13 and Chapter 7 cases.
At the peak of the financial crisis the State of Michigan saw dramatic increases in the number of homeowners who were facing foreclosure. As the foreclosures skyrocketed, the values of Michigan homes plummeted. Michigan, as well as much of the nation, was in a death spiral. However, due to action by the Federal Reserve and the White House the housing crises was ended and over time the surplus of homes on the market has started to decrease. Add that to the mortgages companies willingness to hold onto some of their inventory and we now have a recovering marketplace.
As the values of homes in Michigan increase, mortgage companies are once again beginning to increase the rate of their foreclosure filings. Homes that were once considered not to be worth the costs of the foreclosure process are now being targeted as potential money makers for mortgage companies that are once again on a mission to make a profit at all costs. Due to this fact many homeowners are seeing themselves faced with a foreclosure on a home that they haven’t made payments on in over five years. For many of these individuals they haven’t even known who owns their mortgage for years. Payments were not an option. Now they face foreclosure on their home and they need to know where to turn. However, when they call most bankruptcy firms they are told that they are too far behind on their mortgage payments for a Chapter 13 to be successful. They are turned away often by law firms who refuse to even take the time to sit down with them and try and come up with a solution.
I am here to tell you that for may of these individuals Chapter 13 is absolutely an option. While it is true that a Chapter 13 bankruptcy cannot force a modification onto a bank, that does not mean that a Chapter 13 is not an excellent place to seek a modification. A Chapter 13 plan can be filed in good faith that proposes to seek a plan modification while the Chapter 13 case is pending. This strategy allows the Debtor to be protected by the automatic stay while the Debtor and the bank work towards a modification to save the home. While there is no guarantee of success, this strategy is often successful in modifying the mortgage. The bottom line, if you are told by an attorney that a Chapter 13 cannot help you because you are too far behind on your mortgage, seek a second opinion.
Second Chance Legal Services is a bankruptcy law firm located in Madison Heights, MI. While we are located in Oakland County, we service Wayne, Oakland and Macomb County residents. As Detroit Bankruptcy Attorneys we specialize in helping individuals escape their burden of debt in order to get a fresh start on their bright future.
Because of our small size our clients get individual attention. You will have the same bankruptcy attorney throughout your case whether you are in a Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy. Your attorney will help guide you through the bankruptcy process in order to help you get a successful discharge of your debt.
It is important to note that Macomb County Bankruptcy Attorneys, Oakland County Bankruptcy Attorneys and Wayne County Bankruptcy Attorneys all deal with the same judges and trustees. This is because all Michigan Bankruptcies are filed with the federal bankruptcy court in Detroit, MI. For this reason, it is important that you choose an attorney not by location but rather by how comfortable you feel with them when you meet. If you don’t feel comfortable with their knowledge, their experience or their demeanor you should seek out an attorney that you do feel comfortable with.
If you are interested in speaking with a Detroit bankruptcy attorney from Second Chance Legal Services, please contact our office at 248-629-6367 for a free initial consultation.
Debtors looking for relief from constant phone calls and mailings from bill collectors may wonder about how bankruptcy protection works. You may see and hear advertisements on the television and radio about using bankruptcy to stop bill collection activity, but many may not understand how the process works or even realize they may qualify to [...]
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