First and foremost, working with your HOA protects your investment. After all, in some cases you’re just one HOA vote away from a hellish nightmare. And HOAs can foreclose on community properties.

At their best, HOAs are annoying student council adults telling you to trim your shrubs and move your trashcans. But at their worst, they are glorified debt collectors with the power to upend lives and expel people from a neighborhood.

— John Oliver, Last Week Tonight

The proliferation of HOAs has been called the most significant privatization of local government responsibilities in recent times.

Here’s Last Week Tonight‘s take on HOAs:

Be calm, take it easy.

Do not get crazy just because a debt collector calls you. Crazy doesn’t help. Just calm down. It’s two people talking on the phone. Remember, you’re being recorded. Don’t become yet another YouTube fail.

Be your usual placid, easy-going self. Don’t let a debt collector ramp you up. Take it easy and remain calm.

No matter how quickly the agent talks, you don’t have to speak quickly. The collection agent can lose his marbles if he wants. You should keep your cool.

Tell them your story.

The reason that you’re not paying them is not simply because you don’t want to. The reason that you’re not paying them is because you can’t.

You don’t have the money, and you have no one to borrow the money from. You have no other sources of income. The creditor is not getting paid today.

The problem with telling one agent your story is that tomorrow you’ll have a new agent. It can be fun, sure, to try to find new ways to say the same thing, day in and day out. But eventually it becomes frustrating. Remembering to remain calm can become a struggle.

Tell them to go away.

Debt collectors are required by law to validate your debt in writing. Have them do that first.

They also can’t call you at work if they know your employer doesn’t approve. In fact, debt collectors can’t continue to call you at all, if you request, in writing, that they only communicate with you by mail.

The problem with telling a debt collector to stop contacting you is this: that doesn’t make the debt go away. Debt collectors can and will still attempt to collect on the debt. That includes litigation, garnishment, liens and forfeiture.

How to handle a call from a debt collector? Talk to an attorney.

If you’re getting call from a single, harassing debt collector, talk to an attorney. You may be able to turn the tables and sue the creditor for FDCPA violations. Debt collectors can’t call you before 8AM or after 9PM. They can’t use foul language or threaten you. There are lots of other prohibitions on debt collection activities.

If you’re getting calls from multiple debt collectors, talk to an attorney. You should consider addressing your debts through debt settlement or bankruptcy.

Stay calm, explain your story, or just tell them to go away. But don’t let a debt collector throw you off your game. Get your entire financial outlook straight despite their effort to collect on a single debt.

QuarterSpot loans also require small business owners to personally guarantee their loans. So when Titan Asset Purchasing sues a business, it also sues the business owner, personally.

Choice of venue: Arlington Circuit Court

Both QuarterSpot and Titan Asset Purchasing obtains hundreds of judgments annually against defendants all over the country. The location of the business is irrelevant. If a business defaults on its loan, then the litigation will take place in the Circuit Court of Arlington, Virginia. QuarterSpot requires this as part of its loan agreement. “Choice of venue” contract provisions predetermine where legal proceedings will take place. QuarterSpot also applies its choice of venue clause to arbitration.

Once Titan Asset Purchasing obtains a judgment in Virginia, it hires local counsel in the jurisdiction near the defendant, domesticates the judgment, and attempts collection directly against the owner. Often, the business has already gone under; the business owner remains the only entity against which to enforce its judgment.

Typically, business owners are not liable for the debts of their businesses. QuarterSpot, however, checks the business owner’s personal credit rating before it decides to extend credit, and they require a personal guarantee on every loan they make. Titan Asset Purchasing subsequently names individual business owners as defendants in every lawsuit it files. The business owner’s personal liability on that loan gives rise to concurrent liability for business and business owner alike.

Titan Asset Purchasing is able to obtain a very high percentage of default judgments in the lawsuits it files because the business owners do not live near enough to Arlington, Virginia to mount a defense themselves. That’s where we come in.

Titan Asset Purchasing Lawsuits in Arlington Circuit Court

Lawsuits in Arlington Circuit Court are initiated by the filing of a warrant in debt. Once served, you must take action to avoid a default judgment. Virginia general district court have very short timelines.

Do not simply ignore a creditor because your business has closed, especially if you have personally guaranteed a business loan. You must mount a defense. Do not allow a default judgment to be entered simply because the business is going under or because you live far away from the choice of venue. Creditors like QuarterSpot and Titan Asset Purchasing will use a default judgment against you personally.

Do not file anything with the court or talk to opposing counsel before you talk to an attorney. Lee Legal provides debt defense to clients facing lawsuits in Arlington General District Court, Arlington Circuit Court, Alexandria General District Court, and Alexandria Circuit Court.

Some debt collectors are pretty good at their jobs. The more adept debt collection companies will try to force you into making bad decisions. But you don’t have to let that happen. You have to take control of the situation.

Creditors can cancel your cards. They can report negative information to the credit bureaus. And they can file lawsuits to collect on their debts. They can also email you, text you, and direct message you on social media. And they can call you — a lot, every day, multiple times a day. Obviously, that can be very distracting.

We will make the calls stop. Once you retain our office, debt collectors must go through us. If they contact you at that point, it’s an FDCPA violation. If necessary, we will verify and dispute the debt. We will also investigate the collector to make sure they’re in compliance. We will keep you informed of your rights at every step in the process.

Finally, if the debt is valid, we will negotiate a work-out agreement with the collector on your behalf. Usually, a negotiated settlement can save you a lot of money in the long run.

You don’t have to deal with debt collectors on your own. Call (202) 448-5136 for a free consultation and we will start taking your debt collection calls.

Top 4 Credit Killers

1. Serious delinquency. Old accounts that have been on your credit report for a long time are the number one credit killer. Credit bureaus will assume (algorithmically) that you do not care enough about your credit to fix small problems. A three-year-old $75 LabCorp debt can drag your credit down by 100 points or more. This is why it’s important to routinely monitor your credit report and promptly address credit items.
2. Recent missed payments. Everyone misses a payment at some point. You may have been on vacation, or you may have changed card numbers and auto-bill didn’t transfer correctly. But realize that recently-missed payments count more against you than old missed payments. Avoid them if you can. If you do miss a payment, bring it current immediately. And in the future, if you are unsure whether you’re going to be able to make a payment, contact the lender. See if there’s some sort of forbearance they can offer. Try to get them to delay credit reporting for 30 to 60 days.
3. Bad payment history. Fixing a bad payment history is a two-step process. First, you must fix the items on your credit report in which you missed payments. Either get back on track by making at least three months of timely payments, or just pay the account off completely. Second, you must replace that bad history with good history. This means adding a newer credit account to replace that old account. Of course, you must stay current on new accounts, as well, for this technique to work.
4. High credit usage. The availability of credit can account for as much as 30 percent of your overall score. The trick here is to obtain — but not necessarily to use — as much credit as possible. Having credit in reserve is considered a positive attribute by the credit bureaus. If all of your credit is maxed out — not so much.

Wipe the slate clean

If you have multiple credit killers on your credit report, consider getting a fresh start with bankruptcy. Although a bankruptcy filing will definitely impact your credit, it also eliminates your debts and addresses all the credit killers on your credit report. If you have many creditors or deep debt, discuss your bankruptcy options with an experienced attorney.

The deadly and highly contagious coronavirus has shut down our economy. Since March 2020, tens of thousands of Americans have died, and tens of millions of Americans have lost their jobs. With stay-home orders in place, America has put on its sweatpants. Recession is upon us.

The woe is not limited to the United States. The International Monetary Fund says that the world economy in 2020 will suffer its worst year since the Great Depression of the 1930s. For the first time in our lifetimes, an actual depression is possible, but fortunately we’re not there yet.

There are steps you can take to prepare for economic hard times. Here’s how to manage your personal finances during a recession.

Assess your situation

First and foremost, gauge your circumstances. If you haven’t already done so, create a budget. Identify all potential strengths and weaknesses in your incoming revenue streams and outgoing expenditures. Gather together statements for all of your savings and investment accounts. Calculate your available credit, which are your credit limits minus your balances. Run your credit report now so you have a baseline by which to compare your efforts later. Keep all of this information together.

Preserve your income

Goldman Sachs expects unemployment to soar to 15 percent by mid-2020, while JPMorgan forecasts 20 percent. These figures are unprecedented in American history in both their depth and scope. During the Great Recession, the U.S. unemployment rate hit just 10 percent for one month in October 2010.

Become as invaluable as you can to your employer. Vulnerable targets during a downsizing are those employees who consistently take too much leave from work; who contribute the least; who have the highest salaries; and who lack the latest industry-specific skills. Compare yourself to your colleagues and see how you stack up. Do what you can to shore up your value to the organization.

That being said, most people do not remain with the same employer for their entire careers. Maintain and update your resume. Network with contacts and colleagues relentlessly. Upgrade your professional skill set through classes and research. Be open to learning new aspects of your industry, or even an entirely different industry.

While you are still employed, increase your take-home income by lowering retirement contributions or reducing tax deductions. Free up as much income as possible when times are tight. Consider taking on a side hustle if you have the free time.

Trim your expenses

Carefully and objectively scrutinize every budget line of your spending. You control where your money goes. Make some changes to see how it affects your bottom line. List your expenses in descending order from the most important to the least. Prioritize the necessities and prune the niceties. Cut the cord. Take a staycation. Keep your head down and pay your bills. Managing personal finances during a recession can be seen as a chore or as an opportunity.

Rethink your investments

If you are more than 10 years away from retirement age, sometimes the best course of action is to do nothing. Staying put is better than panicking, selling, and locking in short-term losses. Try not to monitor your investments too closely. Remember that investing for retirement is a long-term proposition. Look away until markets recover.

If you are 10 years or fewer away from retirement age, seek advice about shifting allocations to lower-risk investments. Typical short-term strategies involve fewer stocks and more bonds, which better weather prolonged market drops like those typical during recessions.

A rule of thumb for investing during a recession: Rebalance but don’t withdraw. Avoid overreacting to market declines during periods of unusual volatility. If you can, continue to invest during sustained stock market declines because that’s the essence of investing. You’re buying low now to sell high later.

Scrupulously save

Growing a savings account is important to maintaining your personal finances in a recession. Saving during tough times can seem difficult. Yet it’s not only possible; it’s essential. You will inevitably encounter a true emergency. You’ll need that cushion.

Unfortunately, during a recession, savings sufficient to cover three to six months of expenses (the normal rule of thumb) may simply not be enough. The ability to withstand protracted financial hardship often depends largely on whether or not you’ve saved enough. Try to boost your savings until you have between six and twelve months of expenses.

Saving requires discipline. Stick to your budget and don’t touch your savings unless you absolutely must.

Don’t count on help

In time of crisis, you must be your own best friend. Don’t expect to count on anyone else for help. Don’t count on the government or friends or even family. A recession impacts every facet of every institution, and no one fully escapes the ensuing economic ravage. Your plight is not unique.

No one knows how long this recession will last, or whether it will be short and shallow or long and deep. Don’t count on anyone for a bailout. You’re on your own. Look after yourself. Get up, make your bed, and get to work. Indulge neither ruthlessness nor apathy. Instead, practice and actively cultivate self-reliance.

Scramble but don’t panic

Your mental outlook is determinative to positive outcomes. Sometimes it can be easy to lose your focus on the future when you’re making decisions on the fly. Being forced to make tough choices rapidly doesn’t mean that those choices can’t be smart.

Is a mental health crisis looming? Maybe, but that doesn’t mean you need to become a statistic. Don’t lose your cool. Maintain an optimistic, realistic state of mind. Scramble if you must, but don’t panic. You must stay focused while adapting your personal finances to a recession economy. Hustle, but make smart decisions.

Shed your debt

Minneapolis Federal Reserve President Neel Kashkari predicts the path to economic recovery from the coronavirus pandemic will be a long, hard road. If you are in excellent financial health and your income is secure, then you will be able to weather this recession.

On the other hand, if your income is variable (or nonexistent) and existing debt is your problem then consider filing bankruptcy can help you get a clean slate.

Mortgage forbearance

Under CARES, a borrower may request mortgage forbearance for up to 180 days. Lenders shall extend this period an additional 180 days at the request of the borrower. During the forbearance period, no fees, penalties, or interest beyond the amounts scheduled shall accrue to borrowers.

Lenders, servicers step up

In addition, the Federal Housing Administration put an immediate 60-day moratorium on foreclosures and evictions for single-family homeowners unable to pay their FHA-backed mortgages. Fannie Mae and Freddie Mac will also establish a forbearance program allowing borrowers to skip their mortgage payments for up to 12 months.

The government is essentially offering a year-long payment holiday so those who lose their jobs from COVID-19 can stay in their homes without worrying about mortgage payments or foreclosure.

Jaret Seiberg,
Cowen Washington Research Group

Servicers have lobbied for government assistance (i.e., access to liquidity) to fund forbearance programs. The CARES Act has provided that liquidity, as well as a pleasant surprise tax break for the 1 percent. Of course.

State actions

On March 30, 2020, Virginia governor Ralph Northam signed a “stay-at-home” executive order limiting residents from venturing outside their homes with the exceptions to get food and supplies, receive medical care, go to work, or to get fresh air or exercise. This is essentially a moratorium on foreclosure auctions. The executive order runs through June 10.

On March 18, 2020, the Maryland Court of Appeals entered an administrative order immediately halting both residential foreclosures and pending scheduled evictions. Additionally, new residential foreclosures and foreclosures of right to redeem after tax sales “shall be stayed upon filing.” On April 3, 2020, Maryland Governor Larry Hogan issued an emergency order prohibiting for 90 days (a) lenders from initiating foreclosures and (b) building owners from evicting commercial and industrial tenants.

On March 18, 2020, the District of Columbia stayed all evictions of tenants and foreclosed homeowners until May 15, 2020. By court order, D.C. also continued all hearings on small claims, debt collection, mortgage foreclosure, and housing court matters. On March 29, 2020, D.C. was approved for a major disaster declaration, which will open up more funding for emergency services for those affected by coronavirus.

If you can’t pay your mortgage due to coronavirus

Contact your lender immediately if you won’t be able to make your April mortgage payment. Find out what kind of relief they are offering under CARES, and whether there are any more advantageous internal programs available to you. Neither the coronavirus pandemic nor the moratorium relieve you of your duty to stay on top of your finances. Be proactive and chart a path forward.

Just as important is learning how to save. A 2018 survey from Northwestern Mutual found that 46 percent of Americans have not taken any steps to prepare for outliving their savings. An additional 21 percent have nothing saved at all.

How to save when your net income is meager

How can you save today while still covering your bills? Here are some ways to feed your piggy bank without falling behind:

• Build your budget. Take the time to calculate what’s coming into your wallet and separate the “needs” from the “wants.” Drafting a budget — on paper, computer or through an app — puts all your numbers in one place and helps making financial decisions easier.
• Look at where your money is going. What can you cut from your lifestyle? Perhaps limit dining out or live without your HBO or Netflix subscriptions or making coffee at home instead of going to Starbucks. Making small, simple lifestyle tweaks can add up quickly.
• Clip those coupons and gain reward points. Shop for deals — whether online or in stores. Sign up for reward points from stores, hotels or any place that you frequent to get money back. Make sure that your credit cards are rewarding you for being their customer by researching credit cards that provide cash back and have no annual fees. The more you take advantage of the freebies out there, the more money you can put back in your savings.
• Keep a piggy bank (yes, really). It may sound silly, but keeping an actual, physical piggy bank (or a spare change jar) to deposit loose change can really add up.
• Negotiate your current subscriptions or bills. Call the companies you pay regularly — cable, auto insurance and phone — to ask what deals may be available to loyal customers. Don’t be afraid to shop around to find better rates that will save you cash.

Grow your disposable income

• Pay off or consolidate your debt. Student loans? Credit card bills that keep rolling over monthly? Work on a plan to consolidate your debt and pay it off. The monthly interest you’re paying is costing you in the end. Reach out directly to creditors or work with a consolidation expert.
• Refinance high-ticket items. Check in with your mortgage company to look for options that can re-finance your home and cut down on monthly payments.
• Consider a second job (aka side hustle). Are there things you love to do, that can give you a profit? Perhaps you are a task-driven person – companies like TaskRabbit pair “taskers” with people that need help. Consider hobbies that can generate additional money. Things that you love to do may become profitable through Etsy or other websites. Don’t limit yourself to your workday gig.
• Consider bankruptcy if you have too much debt. It can seem impossible to save if all of your income is going out the door each month to service debt. Wipe the slate clean and get a fresh start on your budget.

Feed your piggy bank!

No matter what tips you follow, remember this: You’re investing in the most important thing – your future. Decreasing your bills or increasing your income doesn’t mean you have more money to spend. Save that income instead, because you never know when you’re going to need it.

Shady debt collector calls

Most of the calls I get are just fine. But some calls are misleading and even shamelessly deceptive. Just listen to this downright shady voicemail I got the other day.

Hi. This is Brian Moore, compliance officer calling with “the state.” I have a legal notice here that I will be bringing out in the next 72 business hours. Now I have been retained to come out between the hours of 4 and 6 p.m. to the address or place of employment. Now a valid state ID will be assigned to us. If you have any questions or concerns, or to be rescheduled, you will have to contact the filing party. The district office number, as showing here, 833-470-0485. Thank you for your time. You have officially been notified.

Note the casual use of pseudo-legal terms: compliance officer, retained, the filing party. Note the ominous references to “the state” and “valid state ID” and “the district office.” The voicemail also contains a thinly-veiled threat: the possibility of in-person confrontation with this person in the next “72 business hours,” whatever that is intended to convey. And the threat mentions a place of employment, too. For those not already scared enough to return the call, there’s a final menacing kicker: You have been officially notified.

Generally speaking, I’m not a big fan of scammers. But I truly detest it when someone tries to scam my clients. So I called the number.

I reached a company called S&S Check Services, supposedly based in Amherst, New York. The representative (who refused to identify himself) disclaimed any knowledge of a Brian Moore, or why their phone number was linked to this voicemail. But S&S is a debt collector. And they had one of my client’s accounts. It’s not a coincidence. It’s just plain shady.

We will take your shady debt collection calls

When you retain us, Lee Legal will take your debt collection calls. We do this for two reasons. First, debt collection calls are really, really annoying, and you need to focus on getting your bankruptcy filed. And second, as stated above, I hate it when creditors try to mess with my clients. We’ll take your creditor calls up to two weeks before filing.

Once we file your bankruptcy case, the calls stop. That’s because the automatic stay takes effect, and attempts at collection once a bankruptcy is filed can subject the creditor to heavy penalties and attorney’s fees.

1. Reinstatement. Mortgage reinstatement is your first and best option when facing foreclosure. When you reinstate your mortgage, you pay a lump sum to catch up your missed mortgage payments, late fees and charges.
2. Payoff. Payoff is similar to reinstatement, except instead of catching up on missed payments, you pay off the entire balance of the mortgage.
3. Modification. If reinstatement or payoff are not options for you, modification may be a good option. But it takes time, and modifications are frequently denied. Modification will stop a foreclosure fast only if you are well along in the process.
4. Refinance. If you are able to refinance your mortgage, you may be able to wrap missed payments into the new loan and even obtain a lower monthly payment.
5. Postponement. If you are very close to obtaining the funds necessary to reinstate your mortgage (and you can prove it to your lender via documentation), then you may be able to convince them to postpone the auction.
6. Injunction. In cases where your mortgage lender has committed serious errors in foreclosing on your home, you can sue the company and request an emergency injunction to stop the auction. These cases are extremely rare.
7. Bankruptcy. Chapter 13 bankruptcy stops foreclosure immediately and gives you the breathing room you need to reassess your options. Filing bankruptcy allows you to consider modification, reinstatement, and refinancing, as well as repayment over an extended period.

Call us to stop a foreclosure sale

We are thoroughly familiar with all of the options available to homeowners facing foreclosure. We can help you think through solutions and work out a plan suitable to your situation. Call Lee Legal at (202) 448-5136.

DC housing is expensive

Zillow tracks the median home value in Washington DC. As of today, a home at the median is valued at $628,914, while the median home price for all U.S. homes is $244,054. There’s a 62 percent premium for a home in the District. In 2019 in DC, we also saw a record for the median sales price at $459,950.

The median rent price in Washington is $2,730, compared to the national median rent of $1,650. There’s a 40 percent premium for renting in DC.

Washington DC’s cost of living is high

The District of Columbia is a generally expensive city. But DC’s average utility cost ($120) is lower than either Virginia ($170) or Maryland ($131).

Food in DC is more expensive, too, at an average of $15.20 a day versus the national average of $10.66. Gas is more expensive in the District, too, and the average annual cost of full vehicle insurance in the city is the 11th highest in the nation.

District residents pay a progressive tax that runs from 4 percent on the first $10,000 of taxable income to 8.95 percent on income of $350,001 and above. DC residents must also pay federal income taxes despite its lack of representation in Congress. DC’s sales tax rate is 6 percent.

Living in Washington DC is expensive

If you live in DC, you know how expensive it is to live here. If you’re having trouble keeping up with bills, consider hitting the reset button with a bankruptcy. Lee Legal has represented clients filing personal bankruptcy since 2004. We may be able to help you, too.

QuarterSpot small business loans

Online small business lender QuarterSpot provides short-term business loans for bad-credit borrowers. QuarterSpot offers six- to 18-month loans up to $250,000 at interest rates from 30 percent to 70 percent.

Business owners are typically not responsible for the debts of a business. QuarterSpot, however, checks the business owner’s personal credit rating before it decides to extend credit and requires a personal guarantee. A business owner’s personal liability on a business loan gives rise to concurrent liability for the business and owner alike.

On March 22, 2019, the Securities and Exchange Commission sued investment advisor Direct Lending Investments (or DLI), in part for falsifying loan repayment information reported by QuarterSpot.

QuarterSpot lawsuit in Arlington or Alexandria? Get a lawyer pronto.

Over the past few months, QuarterSpot has obtained hundreds of judgments simultaneously against both business and business owner. You cannot simply ignore QuarterSpot because your business has closed, especially if you have personally guaranteed a business loan. You must mount a defense. Do not allow a default judgment to be entered simply because the business is going under or because you live far away from the choice of venue.

Plaintiffs like QuarterSpot initiate collections lawsuits in Virginia by filing a warrant in debt. Once served, you must take action. Virginia general district court have very tight timelines.

Do not file anything with the court or talk to opposing counsel before you talk to an attorney. Lee Legal provides debt defense to clients facing lawsuits in Arlington General District Court and Alexandria General District Court. You can reach us at (202) 448-5136.

The psychological costs of servicing debt

Chronic indebtedness afflicts rich and poor nations alike. One in four families in the lowest income quintile in the United States spend more than 40 percent of household income on servicing their debts.

The mental costs are debilitating. The psychological costs of (or “debt mental-accounting costs”) exacerbate financial hardship because the repayment burdens divert resources from more productive uses.

In other words, the more time you spend thinking about debt reduces the amount of time you can think about other things, like saving, getting a better job, or budgeting more effectively.

The impact of chronic debt . . . is psychological, not just financial . . . [and] impairs psychological functioning and decision-making . . . This is because debt is . . . is viewed as costly mental accounts that consume cognitive bandwidth.

Reducing debt improves psychological functioning,
Qiyan Ong, Walter Theseira, Irene Ng

Servicing debt impairs your ability to make deliberative, economically rational choices. Previous studies have looked at this relationship, too. One study looked at the psychological effects of farmers before and after harvest. Another study examined urban poor people before and after payday.

Getting out of debt allows you to escape a debt trap

The longer you stay in debt, the more it may affect your financial choices. Over a long period of time, even full debt relief may not eliminate chronic stress because “debt scarring” may permanently alter your decision-making abilities. It’s better to act sooner, rather than later, once you fall behind. It’s better to declare bankruptcy, even, than to simply spin your wheels, going nowhere.

Getting out of debt could have a positive effect on future budgeting choices because it motivates people to alter behaviors.

We help people with debt problems

Since 2008, Lee Legal has assisted thousands of people seeking debt relief. If you are suffering psychological effects of debt, call our office and schedule a free consultation. We may be able to help you, too. Bankruptcy may be the best choice you can make for your mental health.

What is third party debt collection?

Third party debt collectors attempt to collect on debts owned by creditors. These types of debt collectors include agencies, companies, and lawyers. Typical creditors who use third party debt collectors are hospitals, vehicle lenders, utilities, and banks. Often, these creditors outsource their collections to allow them to focus on their core business. Almost as often, creditors employ third party collectors to avoid the dirty business of debt collection.

Debt collectors have vast (and growing) resources

More than 70 million Americans have at least one debt collection item on their credit reports. And debt collectors are currently chasing over $211 billion in overdue debt.

Debt collectors have an expanding set of resources available to them:

• 80 percent of debt collectors use skip tracing

• Debt collectors also widely use other techniques like call recording, predictive dialing, and automated speech analysis
• 21 percent of debt collectors attempt collection on debts that are past the statute of limitations

“Call bombardment” is common method employed by debt collectors. Only 49 percent of collectors limit the number of contacts per week. And just 53 percent of collectors limit the number of contacts per day. Most of these calls involve, of course, threatening to penalize the consumer for not engaging with the collector.

Moreover, debt collectors are looking to new technology to amplify their efforts. 61 percent of debt collectors currently use email, yet another 22 percent are considering adding email to their procedures. No fewer than 69 percent of debt collectors either use or are considering using SMS text messages to contact consumers. And 30 percent of debt collectors are currently using or exploring the use of social media to reach debtors.

Hire your own lawyer for debt defense

Some creditors rarely resort to litigation, while other creditors invariably sue. If you are sued by a debt collector, it should be clear that they intend to collect on your debt. The next step after judgment is garnishment, attachment, lien, and yet more collection efforts.

Many consumer debtors often face an imbalance of power, but that need not be the case for you. Hire your own lawyer for debt defense.

Foreclosure defense lawyer in Washington DC

In Washington DC, once you receive notice of the complaint for judicial foreclosure, the clock starts ticking. You have options, but many of them are available to you only if you act quickly. As soon as you receive notice that you are being sued for judicial foreclosure, contact a foreclosure defense attorney immediately. Missed deadlines can be fatal to your case.

Your options include mediation, modification, refinance, sale, surrender, and Chapter 13 bankruptcy. Not all of these options are always available, but usually a homeowner has choices. We will help you assess your situation to determine the best course of action for you.

Foreclosure defense lawyer in Virginia

Foreclosure in Virginia can happen very quickly. While foreclosure in DC is judicial (and thus the lender must first sue you), foreclosure in Virginia is nonjudicial. That means that your mortgage company can simply file a notice of default then schedule a foreclosure auction. In Virginia, the only sure-fire way to stop a scheduled foreclosure auction is by filing a Chapter 13 bankruptcy. Foreclosure defense lawyers and bankruptcy lawyers are basically synonymous in Virginia.

Chapter 13 bankruptcy stops foreclosure and allows you to propose a repayment plan. If confirmed by the court, your mortgage company must accept your modified payment schedule. Some homeowners are able to exit bankruptcy just a few months after they file because mortgage companies frequently offer modifications once a Chapter 13 repayment plan is confirmed.

Foreclosure defense lawyer in Maryland

Maryland foreclosure is very similar to Virginia because Maryland is also a nonjudicial foreclosure jurisdiction. Maryland foreclosures take slightly longer than Virginia foreclosures, but still happen much more quickly than foreclosures in Washington DC.

You have loss mitigation options if you default on your mortgage in Maryland, but those options narrow over time. Mortgage lenders in Maryland have no legal obligation to modify your mortgage, but if you attempt modification early, your chances are greatly improved. Maryland foreclosures can take as few as 60 days. When time is tight and an auction has been scheduled, you must stop the foreclosure by filing a Chapter 13 bankruptcy.

Call us now to talk to a foreclosure defense lawyer

Lee Legal has been representing homeowners facing foreclosure since 2004. We offer free consultations and will assess all of your options. Call us today if you need a foreclosure defense attorney.

Whataboutism (and its counterpart bothsidesism) is much in the news lately in the context of our partisan national politics. But the strategy is older than logic itself. The Latin term for the logical fallacy of is tu quoque, or “you also.”

Father: You should stop smoking. It’s bad for your health.
Son: But you smoked for 40 years.

Whataboutists do not try to address factual assertions, and neither accept nor refute an opponent’s position. Whataboutism is a shoddy litigation tactic and cannot take the place of counterclaims in the development of a sound litigation strategy.

There are no substitutes for well-developed counterclaims

Whataboutism is no substitute for well-developed counterclaims. A counterclaim in litigation offsets or directly addresses the claims of an adversary. Counterclaims can also be entirely different, but related claims, in the same the litigation. Or counterclaims can bring in third parties to the litigation. Counterclaims are a vital component of a strong defense strategy.

Whataboutism, on the other hand, cannot take the place of well-developed counterclaims. Instead, it belongs in the category of ineffective strategies that includes tit-for-tat and “I know you are, but what am I?”

Moreover, whataboutism introduces easily-detectable and potentially damaging red herrings into litigation. It also tends to lend itself to conspicuous and counterproductive ad hominem accusations.

There are no perfect litigants

Very few, if any, litigants enter the courtroom with perfectly clean hands. Most claims have counterclaims, and most defendants have valid defenses. Most plaintiffs are imperfect, because nobody is perfect. There are no perfect litigants.

Courts are tasked with making factual findings and balancing the equity of the parties. Judges and juries alike will see through and discount whataboutist arguments. But properly established counterclaims may not only vitiate a plaintiff’s claims; they may also give rise to liability themselves. Whataboutism can never do this.

Avoid whataboutism and advance your counterclaims instead

Whataboutism signals an immature, underdeveloped defense strategy. It may be tempting to answer claims with, “But what about . . .?” Resist the urge. Instead, first attempt to directly address the claim through well-grounded defenses. Disproving the factual veracity of a claim goes much further toward undermining that claim than does introducing irrelevant (even if related) whataboutist countercharges.

Now a trustee will be assigned to each case

Now a standing trustee will oversee each case, assisting in the reorganization process and monitoring the business’s compliance with the Bankruptcy Code. The assignment of a trustee will greatly improve the chances of the successful completion of the plan of reorganization.

Only the debtor can propose a plan of reorganization

Previously, there was an exclusive period for a small business to propose a plan of reorganization, then any interested party could propose a plan for the business. Now, only the debtor can propose a reorganization plan. In addition, small business debtors no longer need obtain independent approval of a disclosure statement. Nor do small businesses in bankruptcy need to solicit votes for plan confirmation. These changes dramatically reduce the burden on small businesses in bankruptcy.

Small business bankruptcy is now more like Chapter 13

No longer must small business owners provide “new value” to retain control of their companies. Instead, the new law requires only that business owners commit all projected disposable income to the plan of reorganization, similar to a Chapter 13 bankruptcy. The plan’s term will span from three to five years, just like Chapter 13.

Small business bankruptcy just got easier

The Small Business Reorganization Act of 2019 greatly simplifies the bankruptcy process for small business owners. Business owners are no longer required to pay all debts in full in order to retain ownership of the business. The law provides more flexibility for business owners to reorganize, while cutting down the red tape.

If you are considering bankruptcy for your small business in the Washington, D.C. area, call Lee Legal for a free consultation.

What are non-qualified student loans?

Student loans are generally excepted from the bankruptcy discharge in 11 U.S.C. 523(a)(8). That section of the Bankruptcy Code prevents discharge of four distinct categories of educational loans:

1. Loans made, insured, or guaranteed by a governmental unit;
2. Loans fully or partially funded by a governmental unit or nonprofit institution;
3. Obligations to repay funds as an educational benefit, scholarship, or stipend; and
4. Any “qualified educational loan” as defined by Section 221(d)(1) of the Internal Revenue Code (“IRC”) of 1986.

The final category is the one we’re examining here. A “qualified educational loan” as defined by IRC 221(d)(1) is “any indebtedness incurred . . . solely to pay qualified higher education expenses.”

So in order to be a “qualified education loan,” the debt must be solely made for qualified higher education expenses. Thus, if a private student loan is partially outside the cost of attendance to a particular educational institution, then the entire loan is non-qualified and can be discharged. The IRC defines “cost of attendance” as “tuition, books and a reasonable allowance for room and board.” Loans made in excess of certified federal limits can be discharged in bankruptcy.

Make your case

Non-qualified private student loans made in excess of the “cost of attendance” are dischargeable. But you must file an adversary proceeding in your Chapter 7 bankruptcy to request that the court find those loans dischargeable.

Courts narrowly construe exceptions to discharge against creditors. So the student lender must (and will) fight your adversary proceeding and prove its case or your loan will be discharged in your Chapter 7.

You will need to meticulously document and calculate your loan amounts and for what purposes you used the funds. You will also need to research the cost of attendance figures for the institution(s) you attended. Student lenders do not just roll over in these cases, so you must be prepared to make your case.

You will know if a potential employer is interested in your credit because they must obtain written authorization from you prior to running your credit report. But your credit history is likely not make-or-break when it comes to the hiring decision.

Get your story straight

Run your own credit report before you submit an application with a company. If an employer offers you a job interview and you haven’t yet run your credit, do it. You can obtain your free credit report once a year from each of the three major credit reporting agencies. Review your report carefully. If there are other negative items besides the foreclosure, try to clean them up. Be sure to dispute any erroneous items.

A foreclosure will remain your credit report for seven years. A foreclosure is a public record, so before it expires, the foreclosure cannot be removed from your report. But it can be explained.

Understand the job requirements

A foreclosure on your credit report will affect your application process more if you are seeking a job in the finance, accounting, or banking industries. Likewise, if you are interviewing for a job that requires handling cash, a foreclosure on your credit may hold you back. In addition, positions that require budgeting skills (including executive roles) often require adequate credit as a prerequisite for the job.

Read the interviewer

Try to read the interviewer. If your credit report is never mentioned, then don’t bring it up yourself. But interviewers can be shrewd. References to your credit may be oblique. If you sense that your credit is an issue during the interview, then consider broaching the topic yourself. Your previous foreclosure may be an issue that the interviewer wants you to address without having to prompt you. And you don’t want to appear to be hiding anything about your past.

Be prepared to explain the circumstances surrounding the foreclosure. But do not try to shift blame. Calmly acknowledge the foreclosure, explain what happened, then move on to what you learned during the process. Discuss any opportunities that materialized because of the foreclosure, or how your financial situation may actually have improved post-foreclosure.

If you are never questioned about your credit (or specifically about the foreclosure) then there may be no reason to bring it up. If your credit is the weak point in your application, then try to pull focus back to your qualifications for the job.

Don’t let a foreclosure on your credit report derail your interview

Your interview will go great. Don’t let a foreclosure on your credit report hold you back from getting the job. Be yourself. You’ll be a terrific addition to the team.

If you have an amazing credit score, you shouldn’t count on its giving you an edge in the interview process. But if you have poor credit, prospective employers will be interested in why. And they’ll be interested in what you’re doing to improve it.

Employers and lenders view credit reports differently. Lenders want to see sterling credit, but employers want to know the story behind your credit. Most importantly, employers want to know that credit issues won’t hinder your job performance. Do what you can to reassure them that you’ve moved on with your life since the foreclosure.

When you must file quickly

You must file your bankruptcy prior to a foreclosure auction or you will not be able to save the property. Filing bankruptcy after a foreclosure auction has already been held will not save your home. If you file a Chapter 13 prior to the auction, then the automatic stay takes effect. That stops the auction. Then can make up missed mortgage payments over an extended period of time. But filing bankruptcy after a foreclosure auction is too late.

Likewise, if you file Chapter 13 after your landlord has obtained an eviction judgment, then the bankruptcy will not prevent eviction. You must file the bankruptcy prior to your landlord’s obtaining an eviction judgment.

Filing bankruptcy after a repossession, in some cases, will allow you to get your vehicle back. But the creditor will charge you handsomely for the repo costs and fees. It is usually preferable to file Chapter 13 prior to repossession.

When waiting to file makes more sense

Filing a Chapter 13 bankruptcy during a civil litigation case will not result in the case’s being dismissed. Instead, the case will only be “stayed” temporarily. Usually, bankruptcy courts will allow the plaintiff relief from the automatic stay to allow the litigation to go forward. This allows the claim to be litigated — and liquidated — in the proper venue. Often it makes sense to allow the litigation to run its course prior to filing a Chapter 13 bankruptcy.

Waiting to file until the first of the month might make sense, too. Filing a Chapter 13 bankruptcy after your latest mortgage payment comes due allows you to include that payment in your Chapter 13 plan. On the other hand, if you file near the end of the month, then your first mortgage payment will come due within a few days after your filing. Sometimes this can strain your budget and even cause missed payments.

Especially at the beginning of a Chapter 13 case, you don’t want timing issues to trip you up. The Chapter 13 trustee will scrutinize your case for feasibility to determine whether you have the ability to repay. If you miss mortgage or vehicle payments or fail to make your Chapter 13 Plan payment, your case may be in peril.

Don’t let timing throw you off

Call Lee Legal to schedule a free, comprehensive financial analysis. When to file a case is often just as important as whether to file at all. We will help you identify the issues and develop a plan to allow you to move on with your life.