In Atlanta, Michael Shaw, an associate at the law firm of Greenberg Trauig, pleaded guilty to fraud after it was discovered that he stole over a half of a million dollars from his own law firm. Apparently after undertaking the work for the firm, he would then send his own work to the firm stating that an outside vendor did the work. The work included investigator services and real estate title work.
Read MoreBankruptcy Courts throughout the United States are vigilantly pursuing fraud by debtors who file Chapter 7 bankruptcy. In a Nevada case, a man from California was indicted by the federal US Attorney there for bankruptcy fraud. Apparently, in 2005, the man filed a Chapter 7 bankruptcy petition but failed to list a bank account he controlled with $100,000 in it.
Read MoreDon’t lie. We all learned this by kindergarten. You can’t lie under oath either. If this derivation of “don’t lie” wasn’t learned during the Clinton administration, what was? In a case decided by the Bankruptcy Court on September 15, 2010, the Court found that the debtor lied, under oath, on his Statement of Financial Affairs, which is a critical part of the personal bankruptcy petition and schedules. Apparently the debtor “failed to disclose the identity of several corporations in which he had an interest” on his Petition and Schedules. The Court found that as a trained accountant, and as someone who did disclose those corporations on recent tax returns, the debtor was, simply, lying. The Petition and Schedules are signed under oath, and under oath, the Trustee at the Creditor’s Hearing asks each debtor if the Petition is true and accurate.
Read MoreDon’t lie. We all learned this by kindergarten. You can’t lie under oath either. If this derivation of “don’t lie” wasn’t learned during the Clinton administration, what was? In a case decided by the Bankruptcy Court on September 15, 2010, the Court found that the debtor lied, under oath, on hisStatement of Financial Affairs, which is a critical part of the personal bankruptcy petition and schedules.
Read MoreFinally, the Massachusetts Office of Consumer Affairs and Business Regulation announced that they would review lenders’ foreclosures procedures. We don’t know if they have been reading our blog articles about GMAC Mortgage and the improper documentation foreclosure crisis, but they are finally acting to protect consumers.
Read MoreMassachusetts bankruptcies are up 35% for the first half of 2010. On the other hand, Massachusetts has one of the lowest bankruptcy filing rates historically.
Read MoreDischarging student loans under federal bankruptcy laws is very difficult. Even if you have a good case under the law, getting a discharge for federal student loans would involve significant time and effort to convince the Trustee, the Court, and the educational funding company. A recent decision handed down by the US Appeals Court demonstrated just that.
Read MoreMany of our Boston bankruptcy clients have outstanding tax liabilities in addition to credit card debt, motor vehicle and mortgage debt. Most have not heard that there are legal ways to discharge taxes. The general rule is that more than two years since the tax return was due, including extensions, taxes can be discharged in bankruptcy. Of course, when dealing with the Internal Revenue Service and the United States Bankruptcy Code, it is complicated and you should have a lawyer. And your taxes should be filed by a CPA if there are any complications. In particular, it is important that there was no fraud or other criminal activity.
Read MorePersonal bankruptcy law gives the debtor a “fresh start.” The bankruptcy petition will be denied, however, when the Trustee finds assets or a fraud in the Petition. In another case handed down this month by Federal Bankruptcy Judge Feeny, a lawyer attempting to discharge his debts had his bankruptcy case denied because he “concealed property of the [bankruptcy] estate, failed to maintain accurate, complete and reliable books and records, or made false oaths or accounts in connection with his case” such as bank accounts, investment accounts.
Read MoreThe Federal Bankruptcy Court in Boston handed down a decision sharply criticizing an attorney with 28 years of experience for putting his two clients, an elderly widow and her disabled daughter, through duplicative bankruptcy proceedings and attempting to collect excessive fees for both. Judge Boroff stated that it had “particular dismay with respect to the type of conduct” of the attorney. Based on the Court’s decision, clients seeking personal bankruptcy attorneys in Boston need to be ever vigilant about the reasonableness of the recommendations by those attorneys.
Read More