Cincinnati Bankruptcy Attorney Blog

Class Action FDCPA Settlement Delivers Relief to Victims and Establishes Important Principles to Hold Debt Collectors Accountable

2012-04-20T21:54:10Z

The U.S. District Court for the Southern District of Ohio granted preliminary approval to a class action settlement for unlawful debt collection practices by a law firm based in Lebanon, Ohio. The federal class action lawsuit alleges that the debt collector sued consumers in a county other than where they lived or signed the debt being sued on, which violates the "venue" or "distant forum" provisions of the Fair Debt Collection Practice Act and the Ohio Consumer Sales Practices Act.

Minnillo & Jenkins, Co. LPA brought the case on behalf of Zachary Langendorfer and similarly situated consumers. The complaint alleges that the Lebanon law firm of Kaufman & Florence filed collection suits in the Lebanon Municipal Court on behalf of a local bank. The defendants deny liability but have agreed to a settlement under which each individual who was sued or had other legal action taken in the wrong county during the two years prior to the filing of the class action will receive $600.00. Because the case was settled, the court did not determine the extent of the defendants' liability; however, the court did issue a significant preliminary ruling holding that an FDCPA violation occurs when a debt collector takes any legal action against a consumer (including filing motions for summary judgment, seeking to conduct a debtor examination or pursuing garnishment) in the wrong jurisdiction, and not just when the debt collector first files a collection lawsuit. Read the Decision

This ruling is important because the FDCPA has a short, one-year, statute of limitations and consumers sued in the wrong jurisdiction like the affected individuals in this case often do not learn they have been sued for months or even years, sometimes more than a year after the debt collection was filed. If the statute of limitations for an FDCPA claim against the debt collector began when the debt collection case was filed, as the defendants in this case argued, it would be possible for the one-year statute under the FDCPA to run before the debtor was ever served with the debt collection action. Thankfully, the U.S. District Court rejected this argument and established an important precedent to protect the rights of consumers.

The FDCPA is a federal law that applies to debt collectors who are collecting consumer debts. Read More Minnillo & Jenkins, Co. LPA is a regional firm emphasizing class action consumer litigation and bankruptcy with offices in Columbus, Dayton, West Chester, and Cincinnati (Hyde Park and Eastgate). If you believe you have been a victim of unlawful debt collection practices or other consumer violations, please contact us to set up an appointment.

Bankruptcy Filings Fall, But Still Viable Option for Some

2012-04-06T12:23:44Z

There are many things that can be used to serve as a marker for economic recovery-and the amount of bankruptcy filings can be one of them.

2011 saw a decline in bankruptcy filings, which were down about eight percent in the first half of the year. Yet, 709,000 Americans still filed, indicating that they needed legal assistance with paying their bills.

In a vacuum, the number of bankruptcies declining would undoubtedly be good news. But the economic climate of these past few years calls for pause and careful consideration. The truth is the federal government has offered a number of programs to help American consumers, including stimuli and tax cuts.

The decline may be a reflection that these measures are helping consumers enough to make their payments and avoid bankruptcy. Yet, the total debt Americans are shouldering show that financial peace is still out of reach. And as some come to realize, the help is just not enough and many make the decision to try to pick up the pieces of their financial lives, stop creditor harassment and seek to start anew.

]]> How Bankruptcy Can Help

Filing for bankruptcy is an option for those who do not have enough income to satisfy their debts, and attempts to reconcile debt repayment with creditors have been unsuccessful. More than anything else, bankruptcy provides petitioners a means of taking control of their financial situations.

We hope you find the foregoing useful and that you choose to schedule a consultation today. Contact Info We have five offices: COLUMBUS (Off Route 315 at the Henderson Road exit); DAYTON (at the 75 South / 725 Interchange);WEST CHESTER (on Route 747 near the Union Center exit on Route 75); and Cincinnati (HYDE PARK and EASTGATE). We would be glad to meet with you at a convenient time, including evenings and weekends.

The Facts About Credit Counseling

2012-03-20T14:47:41Z

Bankruptcy clients have many of the same questions. This is the second installment in a series of blog entries discussing some of the more common ones.

Will I have to do some sort of Credit Counseling? What is it? Is it hard?

Yes, everyone who files bankruptcy must complete a simple credit counseling program. But don't worry, it doesn't take long to complete and it is not challenging.

In 2005, congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act, a law requiring all debtors in bankruptcy to complete two credit counseling courses.Read More Here The first course must be completed prior to the filing of your case and the second course must be completed prior to the granting of your discharge order (i.e. completion of your case). These courses will require that you input general information regarding your income, budget, and debts. There are several companies that offer these courses and the cost varies from as low as $5.00/per person to approximately $50.00. Upon completion of these courses you will receive a Certificate that should be brought to your Attorney in order to be filed with your case. Our office can provide you with contact information for several providers of credit counseling courses at your free initial consultation. Click Here to Schedule

The first course typically lasts anywhere from one half hour to one hour depending an individual debtor's answers to the questions. The second course typically lasts somewhat longer. Additionally, the second course is sometimes completed through the Interim Trustee's office should you be involved in a Chapter 13 bankruptcy. Neither course is difficult but often they can and do provide useful tips on budgeting, savings, and methods to succeed financially post bankruptcy filing. Also, if you are doing a joint filing (where spouses file together) many of the courses will allow you to participate jointly, instead of each person having to take the course separately. Both of these courses are additional expenses that are not typically included in your bankruptcy fee.

We hope you find the foregoing useful and that you choose to schedule a consultation today.Contact Info We have five offices: COLUMBUS (Off Route 315 at the Henderson Road exit); DAYTON (at the 75 South / 725 Interchange);WEST CHESTER (on Route 747 near the Union Center exit on Route 75); and Cincinnati (HYDE PARK and EASTGATE). We would be glad to meet with you at a convenient time, including evenings and weekends.

What Happens After a Foreclosure?

2012-03-01T18:58:32Z

Times are changing. Traditionally, after a home was sold at a foreclosure sale, the bank would accept the sale proceeds and write-off the difference. But now there is a trend for mortgage companies to start collections on the balance of the loan due after the house is sold - "the deficiency." According to a Columbus Dispatch article published February 19, 2012 (read article) one of the reasons is that "some banks have sold their debt to collection agencies, which are more likely to pursue deficiency judgments."

What does this mean for you? If you have already filed bankruptcy and received a discharge for your mortgage obligation, you cannot be held liable for the deficiency. If you receive any communications from a creditor or debt collector about the mortgage deficiency, give us a call. You may be entitled to compensation. If you haven't filed bankruptcy but you've lost a home to foreclosure, you may want to meet with an attorney at Minnillo & Jenkins to discuss whether bankruptcy is an option for you to protect yourself from continuing collection efforts on a deficiency judgment.

We hope you find the foregoing useful and that you choose to schedule a consultation today. (Contact Info). We have five offices: Columbus (Off Route 315 at the Henderson Road exit) (Columbus Office Map); Dayton (at the 75 South / 725 Interchange) (Dayton Office Map); West Chester (on Route 747 near the Union Center exit on Route 75) (West Chester Office Map); Cincinnati (Hyde Park) (Hyde Park Office Map); and Cincinnati (Eastgate) (Eastgate Office Map) . We offer flexible and convenient appointments, including evenings and weekends.

Debt Collectors Dealt A Serious Blow: Asset Acceptance Accepts $2.5 Million Penalty

2012-02-02T16:13:55Z

Asset Acceptance, a large debt buyer and collector, agreed to pay $2.5 million to settle a claim by the Federal Trade Commission. Read The Official Report The FTC alleged that Asset Acceptance engaged in a variety of unlawful debt collection practices, including threatening to sue on debts that were so old that they were time barred by the applicable statutes of limitations. This practice is widespread and violates the FDCPA which prohibits threats of action that the debt collector does not intend to undertake, like suing on debt that is "out of statute." (Read More About the FDCPA Here)

]]> Other tactics that the FTC alleged were:

misrepresenting that consumers owed a debt when it could not substantiate its representations;
failing to disclose that debts are too old to be legally enforceable or that a partial payment would extend the time a debt could be legally enforceable;
providing information to credit reporting agencies, while knowing or having reasonable cause to believe that the information was inaccurate;
failing to notify consumers in writing that it provided negative information to a credit reporting agency;
failing to conduct a reasonable investigation when it received a notice of dispute from a credit reporting agency;
repeatedly calling third parties who do not owe a debt;
informing third parties about a debt;
using illegal debt-collection practices, including misrepresenting the character, amount, or legal status of a debt; providing inaccurate information to credit reporting agencies; and making false representations to collect a debt; and
failing to provide verification of the debt and continuing to attempt to collect a debt when it is disputed by the consumer.

Asset Acceptance is one of the larger debt buyers and collectors. The allegations in this case indicate that unlawful debt collection tactics are widespread and not limited to smaller, less scrupulous, debt collectors.

Minnillo & Jenkins has successfully represented many individuals who were subjected to unlawful debt collection practices. If you believe your rights have been violated, don't delay. Find out about your rights (Read More Here). Call today to discuss your situation with an experienced attorney.

How Much Does Bankruptcy Cost?

2012-02-02T15:32:33Z

Bankruptcy clients have many of the same questions. This is the first installment of a series of blog entries discussing some of the more common ones.

It makes sense that this is the most common question we get from potential bankruptcy clients. If you're already having financial problems, we understand how hard it can be to find more money to get a fresh start.

We also understand the need to get a sense of the costs and fees before undertaking a bankruptcy. This is why we provide a firm, written, fee quotation at the conclusion of your initial consultation, which is of course free.

]]> There are lawyers who advertise specific "flat fees," or that they will "beat anyone's price for bankruptcy." In our view this can create serious problems, especially in cases where there are unforeseen challenges or unique circumstances. Just like almost everything else in life, in bankruptcy you generally get what you pay for.

If you entrust your financial well being to a lawyer advertising cut-rate services who takes on your case without understanding your particular circumstances, you could be in for a challenging bankruptcy and some potentially dire consequences. And just as in most other professions, there are unscrupulous bankruptcy lawyers out there who take advantage of clients' desperation during this vulnerable time. In fact, there are bankruptcy attorneys currently advertising in Southern Ohio who have been disciplined by the Ohio Supreme Court - so watch out! At Minnillo & Jenkins, Co. LPA, we are proud of our attorneys for maintaining the highest standards.

With all of that said, and as long as it is clear that no fee estimate is binding until we have conducted an initial consultation and provided a written fee quotation, we can say that the fees for chapter seven bankruptcies generally begin at $700 plus the $306 filing fee (which is paid to the court) for cases in which there is no real estate or other complicating factor involved. This low fee is not available in many cases for a variety of reasons. Where real estate is involved or there are other complicating factors that mean there will be more attorney or paralegal time involved, the fee will be proportionately higher, and we will quote that fee in writing at the conclusion of the consultation. A chapter 7 fee and filing fee must always be paid in full prior to filing the case.

Chapter 13's (which involve making payments to your creditors based on what you can afford over 3-5 years) generally have a fee of $3,500 which is approved as a standardized fee in those cases. The minimum amount payable in advance of filing a chapter 13 is $881, which consists of $600 in attorney fees and $281 filing fee paid to the court. The balance of the chapter 13 fee is paid through the chapter 13 plan in monthly installments.

There are some additional costs that some attorneys may neglect to mention in promoting their services. For example, every individual filing bankruptcy must complete a pre-filing counseling session. This can be done on the phone or on line, and generally costs between $35 and $50 per person depending on which provider is utilized. In addition, in some cases it is necessary to have a property or item appraised. These fees vary widely depending on the location and nature of the property, but it is not unusual for these fees to be in the range of $150-250.

We hope you find the foregoing useful and that you choose to schedule a consultation today. We have five offices in Columbus (Off Route 315 at the Henderson Road exit, Dayton (at the 75 South / 725 Interchange), West Chester (on Route 747 near the Union Center exit on Route 75) and Cincinnati (Hyde Park and Eastgate), and would be glad to meet with you at a convenient time.

Welcome to Our Cincinnati Bankruptcy Law Blog

2011-11-01T15:59:45Z

We established this blog to share stories and information about topics relevant to our practice. Our intent is to highlight local stories, as well as national subject matter, that we think you will find interesting. We will regularly update this blog and encourage you to share your thoughts on these posts.