March 2009

31 Mar Bankruptcy Attorney Has Duty to Check on Alleged Perfection of Security Interest, Idaho Court Rules

According to an Idaho bankruptcy court, a lawyer has an obligation to check whether a motor vehicle security interest has been properly filed and perfected, based upon new bankruptcy code section 707(b)(4)(D)'s requirement that a lawyer certify, after an "inquiry," that the information in the bankruptcy papers is correct. In re Dean, 2008 WL 5683493 (Bky.D.Idaho Dec. 18, 2008), involved married chapter 7 debtors who owned a 2003 Hurricane motor home. The debtors informed their bankruptcy lawyer that they had borrowed money from the wife's mother in order to purchase the motor home several months earlier. They further stated that they had granted a security interest to the mother to secure repayment of this loan. Becoming wary, the bankruptcy lawyer instructed the debtors to retain another lawyer to ensure that the security interest was indeed perfected. The debtors later returned to the bankruptcy lawyer and announced that they had contacted the other lawyer; the security interest in the motor home was now filed and perfected. Unbeknownst to the bankruptcy lawyer, the debtors had actually failed to consult the other lawyer due to their concern over his fees. Instead, they had attempted to file the security agreement by themselves. The bankruptcy lawyer checked no further and filed the chapter 7 case.
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31 Mar I Got Foreclosure Papers In Mail – What Do I Do?

When you go into foreclosure in New York, the mortgage company must serve you with a Summons and Complaint. That does not, however, mean you need to be served by a police officer or sent a certified letter. In fact, in New York you can be served personally (in other words, someone hands you the papers just like on TV or in the movies) or by something called "substitute service." In other words, if the bank can't reach you directly they can serve you by tacking a copy of the papers to your door or giving them to someone at your home or place of business. When they do this, they must also mail you a copy. Regular mail, nothing special. But once you get the papers, you wonder:

I Got Foreclosure Papers In Mail - What Do I Do?

The answer's simple, really.
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