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Personal Injury Law Firm Burns & Jain Injury Blog

We have been practicing law in Boston and throughout Massachusetts since 1985. I have represented clients in District Courts, Superior Courts, the Appeals Court, Housing Court, Probate Courts, Federal Bankruptcy Court and the Federal District Court.

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College Students in Massachusetts Need Financial Education

College students may have the second highest personal bankruptcy rate in the US. When you add credit card debt taken on by parents to help fund their children’s education, which we see often in our Boston personal bankruptcy practice, this is a scary statistic. In a national study, the EDSA Group determined that while 28% of college students that dropped out of school for academic reasons, 38% of college dropouts left for financial reasons. The actual reasons may be related to the way college is now paid for – more work study and fewer grants, more students and parents using credit cards to finance education, and more student loans. In Massachusetts, the trend is up for student loan defaults.

Massachusetts Consumers Keep Vehicles in Bankruptcy

One of the most frequently asked questions from our Massachusetts personal bankruptcy clients is, “Can I keep my car?” The answer, generally, is yes. However, in a Chapter 7 personal bankruptcy case in Omaha, an heir to a fortune filed for personal bankruptcy protection last month and had to surrender his Maserati, which was sold by the Bankruptcy Trustee for $58,500.

Bankruptcy Lawyer Disbarred for Committing Fraud

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.

More Bankruptcy Fraud – Massachusetts Debtors Beware

Bankruptcy 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.

Massachusetts Debtor Denied Bankruptcy Due to False Oaths on Bankruptcy Schedules

Don’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.

Massachusetts Elderly Filing Bankruptcy at Increased Rates

Social Security Will Not Be Increased for Massachusetts Consumers

On October 15, 2010, the Social Security Administration announced that, for the second year in a row, that cost of living benefits will not be increased. This is based on the Consumer Price Index which was flat for the latest one year period. This is the second year in a row that Massachusetts consumers will not see any rise in there monthly benefits. Those folks that rely on Social Security payments for the bulk of their income, have had two years in a row of zero increase. This applies to all 58.7 million beneficiaries.

Nobel Prize to Massachusetts Unemployment Expert

Massachusetts Institute of Technology economics professor Peter Diamond was awarded the Nobel Prize in Economics. The Swedish Academy awarded Professor Diamond and two colleagues the award for an unemployment modeling that can be used in other economic arenas. According to the Nobel Prize Committee “the laureates models help us understand how unemployment, vacancies and wages are affected by [state] regulation and economic policies.” Also called “markets with search frictions,” the research examined the marketplace, including unemployment, where buyers and sellers don’t easily find each other. Massachusetts consumers who are concerned about jobs and employment should appreciate the timeliness of the award, considering the 8.8% Massachusetts unemployment rate.

Massachusetts Foreclosures To Be Reviewed

Finally, 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.

Bankruptcy Rates Up Nationwide – Massachusetts Numbers Better than Some States

Massachusetts bankruptcies are up 35% for the first half of 2010. On the other hand, Massachusetts has one of the lowest bankruptcy filing rates historically.