.jpg)
Is CCCS giving unbiased 11 USC 109(h) "Briefings" or Soliciting Clients?
Peter,
Call Peter Anderson, maybe, and ask Peter how the issue should be
handled from his perspective; after all, the credit counseling
agencies are subject to OUST review and scrutiny.
Best regards. Lou Esbin
>
> Thanks, please do. I only get the NACBA digest and its not as easy
for me to post.
>
>
> Erik Clark wrote:
> I agree Peter, did you post this on NACBA? If not I
would and see what the feedback it.
>
> M. Erik Clark
> Borowitz, Lozano & Clark, LLP
> 100 N. Barranca Avenue, Suite 250
> West Covina, CA 91791
> www.blclaw.com
> Office: (626) 332-8600
> Fax: (626) 332-8644
> Board Certified in Consumer Bankruptcy
> American Board of Certification
>
>
> ---------------------------------
>
Behalf Of P L
> Sent: Thursday, March 27, 2008 9:57 AM
> To: cdcbaa@yahoogroups.com
> Subject: [cdcbaa] Is CCCS giving unbiased 11 USC 109(h) "Briefings"
or Soliciting Clients?
>
>
> To: ustp.region16@... March 27, 2008
>
>
>
> The following is an email forwarded to my Chapter 13 client.
The advice given my client completely ignores his significant pending
tax obligations (with on-going penalties outside of bankruptcy) and
his secured debts payment requirements, to be covered in his Chapter
13 Plan. I believe that this communication is improper legal advice
to my client and not a reasonable "briefing" pursuant to 11 U.S.C.
109(h). Note that a reasonable briefing would not attempt to persuade
a client to give his business to CCCS, but instead would be an
unbiased presentation of his complete picture of all debt obligations
and his budget requirements outside of Chapter 13 to resolve all of
them. I don't believe that CCCS had an attorney performing the
"briefing" and I'm concerned that the United States Trustee's Office
should be aware of this issue.
>
> Thank you.
>
>
>
> Peter M. Lively
> Law Office of Peter M. Lively
> 1410 Second Street, Suite 302
> Santa Monica, California 90401-3550
> Telephone: 310-899-0630
> Fax: 310-899-0632
> A-Bankruptcy-Attorney.Com
>
> THIS MESSAGE IS INTENDED ONLY FOR THE USE OF THE INDIVIDUAL OR
ENTITY TO WHICH IT IS ADDRESSED, AND MAY CONTAIN INFORMATION THAT IS
PRIVILEGED, CONFIDENTIAL AND EXEMPT FROM DISCLOSURE UNDER APPLICABLE
LAW. IF THE READER OF THIS MESSAGE IS NOT THE INTENDED RECIPIENT, OR
THE EMPLOYEE OR AGENT RESPONSIBLE FOR DELIVERING THE MESSAGE TO THE
INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT ANY DISSEMINATION,
DISTRIBUTION OR COPYING OF THIS COMMUNICATION IS STRICTLY PROHIBITED.
IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US
IMMEDIATELY BY E-MAIL OR BY TELEPHONE. THANK YOU.
>
>
>
>
>
>
> Begin forwarded message:
>
>
>
>
>
>
> Subject: Regarding your account number 1185290
>
> Reply-To: angel.ramos@...
>
>
>
> Dear ,
>
>
>
> Thank you for your interest in receiving confidential online
bankruptcy
>
> counseling through CCCS of Orange County. Please review the
following
>
> information carefully, as well as the details provided in the
.pdf file
>
> attached to this email. If you cannot open the attached file,
you need to
>
> download the free Adobe Acrobat Reader at
>
> http://www.adobe.com/products/acrobat/readstep2.html. If you
still cannot
>
> open the file, reply to this email with a fax number or mailing
address and
>
> a copy will be sent to you.
>
>
>
> If you do proceed with your bankruptcy filing, you will find the
necessary
>
> paperwork attached to this email. The first attachment(s)
is/are your
>
> actual pre-filing bankruptcy counseling certificate(s). The
last attachment
>
> is your full bankruptcy assessment for your records.
>
>
>
> Filing bankruptcy is a big decision that can have long-term
consequences not
>
> only on your credit and finances, but also on your ability to obtain
>
> employment, insurance, and other important benefits. It is
important that
>
> before you file, you consider every possible alternative in case
there is a
>
> way for you to avoid the negative repercussions of a bankruptcy
filing. On
>
> the other hand, sometimes bankruptcy is the best option you have
to recover
>
> from a financial calamity and get a fresh start on rebuilding
your life.
>
>
>
> First, I examined the options that might enable you to repay
your debt
>
> without a bankruptcy filing. Since you have been unable to do so
on your
>
> own, one option that might help you is a Debt Management Plan
(DMP). This is
>
> a program administered by a credit counseling agency like ours
in which the
>
> agency negotiates with your creditors to obtain you more
favorable terms on
>
> your debt. In return, you commit to make regular, reasonable
payments on
>
> your debt in order to repay the entire balances in approximately
60 months
>
> or less. If you choose this option, we would be delighted to
assist you in
>
> enrolling in a DMP; you are also free to select another credit
counseling
>
> agency.
>
> With the information you provided, we could propose a regular
monthly
>
> deposit of $1720.00 to repay your unsecured creditors through
our Debt
>
> Management Plan. This amount usually includes a small monthly
service fee
>
> (8% of the payments or $35, whichever is less) to help defray
our costs for
>
> administering your program, but due to your low income we would
waive that
>
> fee and it is not included here. Please see the file attached to
this
>
> message for details on individual payments to each creditor (see
the last
>
> page of your packet).
>
>
>
> This amount is based on the creditor balances you provided and
is subject to
>
> change if those balances and/or your creditors' policies change.
At this
>
> payment, we estimate it will take you about 38 months to pay off the
>
> principal debt of $65,610.00 as you listed, and several
additional months to
>
> pay off any creditors' accruing finance charges. A more accurate
payoff
>
> forecast can be provided after you enroll in the plan and your
creditors
>
> respond to our proposals.
>
>
>
> Many creditors will significantly reduce interest rates and waive
>
> late/overlimit charges for clients on the DMP program, greatly
speeding up
>
> debt repayment. Once these reductions are confirmed, we can give
you a more
>
> precise payoff forecast. This is how the DMP can help you succeed in
>
> repaying debt you have been unable to pay off on your own.
>
>
>
> If you are behind on any debts, the plan may also allow you to
"start fresh"
>
> making reasonable payments again, rather than having to make up
all missed
>
> payments. This can be a big help if you are experiencing collection
>
> activity. Many clients also appreciate the convenience of making
one monthly
>
> payment to handle all of their unsecured debts. Your creditors will
>
> generally close your accounts when accepting our proposal if the
accounts
>
> are not already closed.
>
>
>
> The only additional fee we charge other than the monthly fee
described and
>
> included above is a one-time initial setup fee of $50.00, to be
sent along
>
> with your first payment only. This would make your initial
payment, made in
>
> the first month only, a total of $1720 + $50 $1,770.00.
>
> As part of the benefits if you choose to enroll in a your Debt
Management
>
> Plan, you are provided with "Better Fortunes." This is a nationally
>
> recognized consumer finance course that may be completed in
class or through
>
> book study. This program not only gives you the tools to succeed
on your
>
> DMP, but it also empowers you to be a wiser money manager in all
aspects of
>
> your financial life.
>
>
>
> We note, however, the income and expense figures you provided
reflect a
>
> monthly positive cash flow (surplus) of $1,620.00 per month
including the
>
> proposed Debt Management Plan payment listed above (see the last
three pages
>
> of your packet). The budget figures you provided are very
conservative and
>
> do not include many extras or incidentals that might come up.
>
>
>
> This means you would either need to significantly cut living
expenses in
>
> order to repay your debts as proposed.
>
>
>
> The Debt Management program is designed to help you become
debt-free as
>
> quickly as your finances permit. It is not designed to "repair"
your credit
>
> rating. It may affect your credit rating either favorably or
unfavorably,
>
> depending on your creditors' policies and your payment history
prior to and
>
> during your program with us. If you are already behind with
creditors,
>
> remember that they have probably already damaged your credit
rating and your
>
> primary goal should be to retire the debt as soon as possible.
Paying off
>
> your debt in full can improve your credit tremendously.
>
> You should also remember that bankruptcy can have a very
negative impact on
>
> your credit score. Bankrupcty can hurt your credit score for 10
years,
>
> although you generally can start rebuilding your credit 2 years
after your
>
> filing. How long it will take you to fully recover depends on
many factors,
>
> including your future credit choices, payment history, and
income capacity
>
> to repay future debt.
>
>
>
> Note that many who file bankruptcy have to pay significantly
higher interest
>
> on future loans for the next several years. You should examine
carefully
>
> whether the amount of debt you will discharge in your bankruptcy
is worth
>
> the possible higher cost of credit in the future, especially if
you plan to
>
> purchase or refinance a home and/or vehicle within the next few
years. If
>
> your bankruptcy filing results in an increase in your future
loans' interest
>
> rate of just 1%, it can cost you thousands.
>
>
>
> You should consider whether the cost of filing, court fees,
attorney costs,
>
> your time, etc. are worth the benefits of bankruptcy protection
at this
>
> point in time. Of course, if you foresee receiving future income
or assets
>
> in the near future that could be garnished or attached, that
would be
>
> different. But if not, it is very possible bankruptcy may not be
worth the
>
> time and trouble.
>
>
>
> Remember that you can only file Chapter 7 Bankruptcy once in every 7
>
> years -- do you want to use that once-in-7-years opportunity
now? What if
>
> you have a significant debt that comes up later -- medical
bills, a car
>
> accident where you are liable for damages, etc. -- do you want
to preserve
>
> the possibility of filing bankruptcy later? I strongly advise
you to discuss
>
> all these questions with an honest attorney or other legal
professional who
>
> has your best interests at heart before deciding. Ask
specifically about
>
> what the creditors can do to you if you do NOT file. If all they
can do is
>
> harass you, again, you have other options under the Fair Debt
Collection
>
> Practices Act. If you don't have an honest legal advisor you can
trust, try
>
> getting help from legal aid at http://www.legal-aid.com/ or another
>
> community resource.
>
>
>
> If you do decide to consider a DMP, you must choose your agency
carefully.
>
> When evaluating credit counseling services, we encourage you to
check with
>
> the Better Business Bureau and the California Consumer Affairs
office to be
>
> sure you choose a reputable organization with very low fees.
You'll find our
>
> agency, Consumer Credit Counseling Service of Orange County,
California has
>
> an excellent record of over 40 years of helping people like you.
We are
>
> members of the National Foundation for Credit Counseling with
over 1300
>
> offices throughout the United States, and our office alone sends
nearly one
>
> million dollars monthly to creditors.
>
>
>
> If you are able to make changes that enable you to afford this
DMP payment,
>
> your next step in pursuing the DMP program with us would be to
provide us
>
> with copies of the most current statements you have for each
creditor and to
>
> choose a start date for your plan. You may choose a due date of
the 1st,
>
> 10th, or 20th of each month and should specify which month you
wish to
>
> begin.
>
>
>
> If possible, please scan your statements and attach them to a
reply to this
>
> email with your start date choice. If this is not possible, you
may fax them
>
> to 714-782-6022 or mail them to P.O. Box 11330, Santa Ana CA
92711-1330 and
>
> reply to this email that you have done so. Be sure to put
"ATTENTION:
>
> INTERNET COUNSELING DEPARTMENT" on the cover sheet or envelope.
>
>
>
> Once your statements and start date choice have been received,
we will
>
> confirm your payment amount from your statement balances and
email you the
>
> finalized documents for your approval to start your Debt
Management Plan. Do
>
> not send payment until you receive and complete these documents.
Nothing is
>
> final and NO contact is made with your creditors until we
receive your
>
> completed paperwork and your first payment. Your payment amount
is subject
>
> to approval by your creditors.
>
> The DMP is a voluntary program and you can terminate it at any
time with no
>
> further obligation. If you think you might be able to manage the
payments on
>
> the plan, we encourage you to give it a try -- you can always
terminate it
>
> and file bankruptcy later if you find the payments are not
workable for you.
>
>
>
> If you decide no changes are possible to your budget situation
in order to
>
> alleviate the deficit and manage a debt repayment plan, you may
have to
>
> consider other options such as selling assets, borrowing from
friends and/or
>
> family, and of course bankruptcy relief. As stated before, there
are many
>
> negative consequences to bankruptcy, and not just to your credit
and ability
>
> to borrow. Some potential employers or insurers might look
unfavorably upon
>
> a candidate who has filed bankruptcy, as more and more employers and
>
> insurers are pulling credit reports and doing public record
background
>
> checks. However, if you do not have another option, the
bankruptcy law was
>
> designed to give you a second chance to start over and rebuild
your credit
>
> over time.
>
>
>
> Good Luck!
>
>
>
> Angel Ramos
>
> Certified Credit Counselor
>
> Consumer Credit Counseling Services Of OC
>
> (714)547-2227
>
> angel.ramos@...
>
>
>
>
> ---------------------------------
>
> Never miss a thing. Make Yahoo your homepage.
>
>
>
>
>
>
> >
>
> ---------------------------------
> Looking for last minute shopping deals? Find them fast with Yahoo!
Search.
>
The post was migrated from Yahoo.
Thanks, please do. I only get the NACBA digest and its not as easy for me to post.
Erik Clark wrote:
I agree Peter, did you post this on NACBA? If not I would and see what the feedback it.
M. Erik Clark
Borowitz, Lozano & Clark, LLP
100 N. Barranca Avenue, Suite 250
West Covina, CA 91791
www.blclaw.com
Office: (626) 332-8600
Fax: (626) 332-8644
Board Certified in Consumer Bankruptcy
American Board of Certification
Sent: Thursday, March 27, 2008 9:57 AM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Is CCCS giving unbiased 11 USC 109(h) "Briefings" or Soliciting Clients?
To: ustp.region16@usdoj.gov March 27, 2008
The following is an email forwarded to my Chapter 13 client. The advice given my client completely ignores his significant pending tax obligations (with on-going penalties outside of bankruptcy) and his secured debts payment requirements, to be covered in his Chapter 13 Plan. I believe that this communication is improper legal advice to my client and not a reasonable "briefing" pursuant to 11 U.S.C. 109(h). Note that a reasonable briefing would not attempt to persuade a client to give his business to CCCS, but instead would be an unbiased presentation of his complete picture of all debt obligations and his budget requirements outside of Chapter 13 to resolve all of them. I don't believe that CCCS had an attorney performing the "briefing" and I'm concerned that the United States Trustee's Office should be aware of this issue.
Thank you.
Peter M. Lively
Law Office of Peter M. Lively
1410 Second Street, Suite 302
Santa Monica, California 90401-3550
Telephone: 310-899-0630
Fax: 310-899-0632
A-Bankruptcy-Attorney.Com
THIS MESSAGE IS INTENDED ONLY FOR THE USE OF THE INDIVIDUAL OR ENTITY TO WHICH IT IS ADDRESSED, AND MAY CONTAIN INFORMATION THAT IS PRIVILEGED, CONFIDENTIAL AND EXEMPT FROM DISCLOSURE UNDER APPLICABLE LAW. IF THE READER OF THIS MESSAGE IS NOT THE INTENDED RECIPIENT, OR THE EMPLOYEE OR AGENT RESPONSIBLE FOR DELIVERING THE MESSAGE TO THE INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT ANY DISSEMINATION, DISTRIBUTION OR COPYING OF THIS COMMUNICATION IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY BY E-MAIL OR BY TELEPHONE. THANK YOU.
Begin forwarded message:
Subject: Regarding your account number 1185290
Reply-To: angel.ramos@cccsoc.org
Dear ,
Thank you for your interest in receiving confidential online bankruptcy
counseling through CCCS of Orange County. Please review the following
information carefully, as well as the details provided in the .pdf file
attached to this email. If you cannot open the attached file, you need to
download the free Adobe Acrobat Reader at
http://www.adobe.com/products/acrobat/readstep2.html. If you still cannot
open the file, reply to this email with a fax number or mailing address and
a copy will be sent to you.
If you do proceed with your bankruptcy filing, you will find the necessary
paperwork attached to this email. The first attachment(s) is/are your
actual pre-filing bankruptcy counseling certificate(s). The last attachment
is your full bankruptcy assessment for your records.
Filing bankruptcy is a big decision that can have long-term consequences not
only on your credit and finances, but also on your ability to obtain
employment, insurance, and other important benefits. It is important that
before you file, you consider every possible alternative in case there is a
way for you to avoid the negative repercussions of a bankruptcy filing. On
the other hand, sometimes bankruptcy is the best option you have to recover
from a financial calamity and get a fresh start on rebuilding your life.
First, I examined the options that might enable you to repay your debt
without a bankruptcy filing. Since you have been unable to do so on your
own, one option that might help you is a Debt Management Plan (DMP). This is
a program administered by a credit counseling agency like ours in which the
agency negotiates with your creditors to obtain you more favorable terms on
your debt. In return, you commit to make regular, reasonable payments on
your debt in order to repay the entire balances in approximately 60 months
or less. If you choose this option, we would be delighted to assist you in
enrolling in a DMP; you are also free to select another credit counseling
agency.
With the information you provided, we could propose a regular monthly
deposit of $1720.00 to repay your unsecured creditors through our Debt
Management Plan. This amount usually includes a small monthly service fee
(8% of the payments or $35, whichever is less) to help defray our costs for
administering your program, but due to your low income we would waive that
fee and it is not included here. Please see the file attached to this
message for details on individual payments to each creditor (see the last
page of your packet).
This amount is based on the creditor balances you provided and is subject to
change if those balances and/or your creditors' policies change. At this
payment, we estimate it will take you about 38 months to pay off the
principal debt of $65,610.00 as you listed, and several additional months to
pay off any creditors' accruing finance charges. A more accurate payoff
forecast can be provided after you enroll in the plan and your creditors
respond to our proposals.
Many creditors will significantly reduce interest rates and waive
late/overlimit charges for clients on the DMP program, greatly speeding up
debt repayment. Once these reductions are confirmed, we can give you a more
precise payoff forecast. This is how the DMP can help you succeed in
repaying debt you have been unable to pay off on your own.
If you are behind on any debts, the plan may also allow you to "start fresh"
making reasonable payments again, rather than having to make up all missed
payments. This can be a big help if you are experiencing collection
activity. Many clients also appreciate the convenience of making one monthly
payment to handle all of their unsecured debts. Your creditors will
generally close your accounts when accepting our proposal if the accounts
are not already closed.
The only additional fee we charge other than the monthly fee described and
included above is a one-time initial setup fee of $50.00, to be sent along
with your first payment only. This would make your initial payment, made in
the first month only, a total of $1720 + $50 = $1,770.00.
As part of the benefits if you choose to enroll in a your Debt Management
Plan, you are provided with "Better Fortunes." This is a nationally
recognized consumer finance course that may be completed in class or through
book study. This program not only gives you the tools to succeed on your
DMP, but it also empowers you to be a wiser money manager in all aspects of
your financial life.
We note, however, the income and expense figures you provided reflect a
monthly positive cash flow (surplus) of $1,620.00 per month including the
proposed Debt Management Plan payment listed above (see the last three pages
of your packet). The budget figures you provided are very conservative and
do not include many extras or incidentals that might come up.
This means you would either need to significantly cut living expenses in
order to repay your debts as proposed.
The Debt Management program is designed to help you become debt-free as
quickly as your finances permit. It is not designed to "repair" your credit
rating. It may affect your credit rating either favorably or unfavorably,
depending on your creditors' policies and your payment history prior to and
during your program with us. If you are already behind with creditors,
remember that they have probably already damaged your credit rating and your
primary goal should be to retire the debt as soon as possible. Paying off
your debt in full can improve your credit tremendously.
You should also remember that bankruptcy can have a very negative impact on
your credit score. Bankrupcty can hurt your credit score for 10 years,
although you generally can start rebuilding your credit 2 years after your
filing. How long it will take you to fully recover depends on many factors,
including your future credit choices, payment history, and income capacity
to repay future debt.
Note that many who file bankruptcy have to pay significantly higher interest
on future loans for the next several years. You should examine carefully
whether the amount of debt you will discharge in your bankruptcy is worth
the possible higher cost of credit in the future, especially if you plan to
purchase or refinance a home and/or vehicle within the next few years. If
your bankruptcy filing results in an increase in your future loans' interest
rate of just 1%, it can cost you thousands.
You should consider whether the cost of filing, court fees, attorney costs,
your time, etc. are worth the benefits of bankruptcy protection at this
point in time. Of course, if you foresee receiving future income or assets
in the near future that could be garnished or attached, that would be
different. But if not, it is very possible bankruptcy may not be worth the
time and trouble.
Remember that you can only file Chapter 7 Bankruptcy once in every 7
years -- do you want to use that once-in-7-years opportunity now? What if
you have a significant debt that comes up later -- medical bills, a car
accident where you are liable for damages, etc. -- do you want to preserve
the possibility of filing bankruptcy later? I strongly advise you to discuss
all these questions with an honest attorney or other legal professional who
has your best interests at heart before deciding. Ask specifically about
what the creditors can do to you if you do NOT file. If all they can do is
harass you, again, you have other options under the Fair Debt Collection
Practices Act. If you don't have an honest legal advisor you can trust, try
getting help from legal aid at http://www.legal-aid.com/ or another
community resource.
If you do decide to consider a DMP, you must choose your agency carefully.
When evaluating credit counseling services, we encourage you to check with
the Better Business Bureau and the California Consumer Affairs office to be
sure you choose a reputable organization with very low fees. You'll find our
agency, Consumer Credit Counseling Service of Orange County, California has
an excellent record of over 40 years of helping people like you. We are
members of the National Foundation for Credit Counseling with over 1300
offices throughout the United States, and our office alone sends nearly one
million dollars monthly to creditors.
If you are able to make changes that enable you to afford this DMP payment,
your next step in pursuing the DMP program with us would be to provide us
with copies of the most current statements you have for each creditor and to
choose a start date for your plan. You may choose a due date of the 1st,
10th, or 20th of each month and should specify which month you wish to
begin.
If possible, please scan your statements and attach them to a reply to this
email with your start date choice. If this is not possible, you may fax them
to 714-782-6022 or mail them to P.O. Box 11330, Santa Ana CA 92711-1330 and
reply to this email that you have done so. Be sure to put "ATTENTION:
INTERNET COUNSELING DEPARTMENT" on the cover sheet or envelope.
Once your statements and start date choice have been received, we will
confirm your payment amount from your statement balances and email you the
finalized documents for your approval to start your Debt Management Plan. Do
not send payment until you receive and complete these documents. Nothing is
final and NO contact is made with your creditors until we receive your
completed paperwork and your first payment. Your payment amount is subject
to approval by your creditors.
The DMP is a voluntary program and you can terminate it at any time with no
further obligation. If you think you might be able to manage the payments on
the plan, we encourage you to give it a try -- you can always terminate it
and file bankruptcy later if you find the payments are not workable for you.
If you decide no changes are possible to your budget situation in order to
alleviate the deficit and manage a debt repayment plan, you may have to
consider other options such as selling assets, borrowing from friends and/or
family, and of course bankruptcy relief. As stated before, there are many
negative consequences to bankruptcy, and not just to your credit and ability
to borrow. Some potential employers or insurers might look unfavorably upon
a candidate who has filed bankruptcy, as more and more employers and
insurers are pulling credit reports and doing public record background
checks. However, if you do not have another option, the bankruptcy law was
designed to give you a second chance to start over and rebuild your credit
over time.
Good Luck!
Angel Ramos
Certified Credit Counselor
Consumer Credit Counseling Services Of OC
(714)547-2227
angel.ramos@cccsoc.org
Never miss a thing. Make Yahoo your homepage.
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Thanks, please do. I only get the NACBA digest and its not as easy for me to post. Erik Clark <eclark@blclaw.com> wrote: I agree Peter, did you post this on NACBA? If not I would and see what the feedback it. M. Erik ClarkBorowitz, Lozano & Clark, LLP100 N. Barranca Avenue, Suite 250West Covina, CA 91791 www.blclaw.comOffice: (626) 332-8600Fax: (626) 332-8644Board Certified in Consumer Bankruptcy American Board of Certification From: cdcbaa@yahoogroups.com [mailto:cdcbaa@yahoogroups.com] On Behalf Of P LSent: Thursday, March 27, 2008 9:57 AMTo: cdcbaa@yahoogroups.comSubject: [cdcbaa] Is CCCS giving unbiased 11 USC 109(h) "Briefings" or Soliciting Clients? To: ustp.region16@usdoj.gov March 27, 2008 The following is an email forwarded to my Chapter 13 client. The advice given my client completely ignores his significant pending tax obligations (with on-going penalties outside of bankruptcy) and his secured debts payment requirements, to be covered in his Chapter 13 Plan. I believe that this communication is improper legal advice to my client and not a reasonable "briefing" pursuant to 11 U.S.C. 109(h). Note that a reasonable briefing would not attempt to persuade a client to give his business to CCCS, but instead would be
an unbiased presentation of his complete picture of all debt obligations and his budget requirements outside of Chapter 13 to resolve all of them. I don't believe that CCCS had an attorney performing the "briefing" and I'm concerned that the United States Trustee's Office should be aware of this issue. Thank you. Peter M. Lively Law Office of Peter M. Lively1410 Second Street, Suite 302Santa Monica, California
90401-3550Telephone: 310-899-0630Fax: 310-899-0632A-Bankruptcy-Attorney.ComTHIS MESSAGE IS INTENDED ONLY FOR THE USE OF THE INDIVIDUAL OR ENTITY TO WHICH IT IS ADDRESSED, AND MAY CONTAIN INFORMATION THAT IS PRIVILEGED, CONFIDENTIAL AND EXEMPT FROM DISCLOSURE UNDER APPLICABLE LAW. IF THE READER OF THIS MESSAGE IS NOT THE INTENDED RECIPIENT, OR THE EMPLOYEE OR AGENT RESPONSIBLE FOR DELIVERING THE MESSAGE TO THE INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT ANY DISSEMINATION, DISTRIBUTION OR COPYING OF THIS COMMUNICATION IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY BY E-MAIL OR BY TELEPHONE. THANK YOU.
The post was migrated from Yahoo.
I agree Peter, did you post this on NACBA? If not I would and see what
the feedback it.
M. Erik Clark
Borowitz, Lozano & Clark, LLP
100 N. Barranca Avenue, Suite 250
West Covina, CA 91791
www.blclaw.com
Office: (626) 332-8600
Fax: (626) 332-8644
Board Certified in Consumer Bankruptcy
American Board of Certification
________________________________
The post was migrated from Yahoo.
To: ustp.region16@usdoj.gov March 27, 2008
The following is an email forwarded to my Chapter 13 client. The advice given my client completely ignores his significant pending tax obligations (with on-going penalties outside of bankruptcy) and his secured debts payment requirements, to be covered in his Chapter 13 Plan. I believe that this communication is improper legal advice to my client and not a reasonable "briefing" pursuant to 11 U.S.C. 109(h). Note that a reasonable briefing would not attempt to persuade a client to give his business to CCCS, but instead would be an unbiased presentation of his complete picture of all debt obligations and his budget requirements outside of Chapter 13 to resolve all of them. I don't believe that CCCS had an attorney performing the "briefing" and I'm concerned that the United States Trustee's Office should be aware of this issue.
Thank you.
Peter M. Lively
Law Office of Peter M. Lively
1410 Second Street, Suite 302
Santa Monica, California 90401-3550
Telephone: 310-899-0630
Fax: 310-899-0632
A-Bankruptcy-Attorney.Com
THIS MESSAGE IS INTENDED ONLY FOR THE USE OF THE INDIVIDUAL OR ENTITY TO WHICH IT IS ADDRESSED, AND MAY CONTAIN INFORMATION THAT IS PRIVILEGED, CONFIDENTIAL AND EXEMPT FROM DISCLOSURE UNDER APPLICABLE LAW. IF THE READER OF THIS MESSAGE IS NOT THE INTENDED RECIPIENT, OR THE EMPLOYEE OR AGENT RESPONSIBLE FOR DELIVERING THE MESSAGE TO THE INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT ANY DISSEMINATION, DISTRIBUTION OR COPYING OF THIS COMMUNICATION IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY BY E-MAIL OR BY TELEPHONE. THANK YOU.
Begin forwarded message:
Subject: Regarding your account number 1185290
Reply-To: angel.ramos@cccsoc.org
Dear ,
Thank you for your interest in receiving confidential online bankruptcy
counseling through CCCS of Orange County. Please review the following
information carefully, as well as the details provided in the .pdf file
attached to this email. If you cannot open the attached file, you need to
download the free Adobe Acrobat Reader at
http://www.adobe.com/products/acrobat/readstep2.html. If you still cannot
open the file, reply to this email with a fax number or mailing address and
a copy will be sent to you.
If you do proceed with your bankruptcy filing, you will find the necessary
paperwork attached to this email. The first attachment(s) is/are your
actual pre-filing bankruptcy counseling certificate(s). The last attachment
is your full bankruptcy assessment for your records.
Filing bankruptcy is a big decision that can have long-term consequences not
only on your credit and finances, but also on your ability to obtain
employment, insurance, and other important benefits. It is important that
before you file, you consider every possible alternative in case there is a
way for you to avoid the negative repercussions of a bankruptcy filing. On
the other hand, sometimes bankruptcy is the best option you have to recover
from a financial calamity and get a fresh start on rebuilding your life.
First, I examined the options that might enable you to repay your debt
without a bankruptcy filing. Since you have been unable to do so on your
own, one option that might help you is a Debt Management Plan (DMP). This is
a program administered by a credit counseling agency like ours in which the
agency negotiates with your creditors to obtain you more favorable terms on
your debt. In return, you commit to make regular, reasonable payments on
your debt in order to repay the entire balances in approximately 60 months
or less. If you choose this option, we would be delighted to assist you in
enrolling in a DMP; you are also free to select another credit counseling
agency.
With the information you provided, we could propose a regular monthly
deposit of $1720.00 to repay your unsecured creditors through our Debt
Management Plan. This amount usually includes a small monthly service fee
(8% of the payments or $35, whichever is less) to help defray our costs for
administering your program, but due to your low income we would waive that
fee and it is not included here. Please see the file attached to this
message for details on individual payments to each creditor (see the last
page of your packet).
This amount is based on the creditor balances you provided and is subject to
change if those balances and/or your creditors' policies change. At this
payment, we estimate it will take you about 38 months to pay off the
principal debt of $65,610.00 as you listed, and several additional months to
pay off any creditors' accruing finance charges. A more accurate payoff
forecast can be provided after you enroll in the plan and your creditors
respond to our proposals.
Many creditors will significantly reduce interest rates and waive
late/overlimit charges for clients on the DMP program, greatly speeding up
debt repayment. Once these reductions are confirmed, we can give you a more
precise payoff forecast. This is how the DMP can help you succeed in
repaying debt you have been unable to pay off on your own.
If you are behind on any debts, the plan may also allow you to "start fresh"
making reasonable payments again, rather than having to make up all missed
payments. This can be a big help if you are experiencing collection
activity. Many clients also appreciate the convenience of making one monthly
payment to handle all of their unsecured debts. Your creditors will
generally close your accounts when accepting our proposal if the accounts
are not already closed.
The only additional fee we charge other than the monthly fee described and
included above is a one-time initial setup fee of $50.00, to be sent along
with your first payment only. This would make your initial payment, made in
the first month only, a total of $1720 + $50 = $1,770.00.
As part of the benefits if you choose to enroll in a your Debt Management
Plan, you are provided with "Better Fortunes." This is a nationally
recognized consumer finance course that may be completed in class or through
book study. This program not only gives you the tools to succeed on your
DMP, but it also empowers you to be a wiser money manager in all aspects of
your financial life.
We note, however, the income and expense figures you provided reflect a
monthly positive cash flow (surplus) of $1,620.00 per month including the
proposed Debt Management Plan payment listed above (see the last three pages
of your packet). The budget figures you provided are very conservative and
do not include many extras or incidentals that might come up.
This means you would either need to significantly cut living expenses in
order to repay your debts as proposed.
The Debt Management program is designed to help you become debt-free as
quickly as your finances permit. It is not designed to "repair" your credit
rating. It may affect your credit rating either favorably or unfavorably,
depending on your creditors' policies and your payment history prior to and
during your program with us. If you are already behind with creditors,
remember that they have probably already damaged your credit rating and your
primary goal should be to retire the debt as soon as possible. Paying off
your debt in full can improve your credit tremendously.
You should also remember that bankruptcy can have a very negative impact on
your credit score. Bankrupcty can hurt your credit score for 10 years,
although you generally can start rebuilding your credit 2 years after your
filing. How long it will take you to fully recover depends on many factors,
including your future credit choices, payment history, and income capacity
to repay future debt.
Note that many who file bankruptcy have to pay significantly higher interest
on future loans for the next several years. You should examine carefully
whether the amount of debt you will discharge in your bankruptcy is worth
the possible higher cost of credit in the future, especially if you plan to
purchase or refinance a home and/or vehicle within the next few years. If
your bankruptcy filing results in an increase in your future loans' interest
rate of just 1%, it can cost you thousands.
You should consider whether the cost of filing, court fees, attorney costs,
your time, etc. are worth the benefits of bankruptcy protection at this
point in time. Of course, if you foresee receiving future income or assets
in the near future that could be garnished or attached, that would be
different. But if not, it is very possible bankruptcy may not be worth the
time and trouble.
Remember that you can only file Chapter 7 Bankruptcy once in every 7
years -- do you want to use that once-in-7-years opportunity now? What if
you have a significant debt that comes up later -- medical bills, a car
accident where you are liable for damages, etc. -- do you want to preserve
the possibility of filing bankruptcy later? I strongly advise you to discuss
all these questions with an honest attorney or other legal professional who
has your best interests at heart before deciding. Ask specifically about
what the creditors can do to you if you do NOT file. If all they can do is
harass you, again, you have other options under the Fair Debt Collection
Practices Act. If you don't have an honest legal advisor you can trust, try
getting help from legal aid at http://www.legal-aid.com/ or another
community resource.
If you do decide to consider a DMP, you must choose your agency carefully.
When evaluating credit counseling services, we encourage you to check with
the Better Business Bureau and the California Consumer Affairs office to be
sure you choose a reputable organization with very low fees. You'll find our
agency, Consumer Credit Counseling Service of Orange County, California has
an excellent record of over 40 years of helping people like you. We are
members of the National Foundation for Credit Counseling with over 1300
offices throughout the United States, and our office alone sends nearly one
million dollars monthly to creditors.
If you are able to make changes that enable you to afford this DMP payment,
your next step in pursuing the DMP program with us would be to provide us
with copies of the most current statements you have for each creditor and to
choose a start date for your plan. You may choose a due date of the 1st,
10th, or 20th of each month and should specify which month you wish to
begin.
If possible, please scan your statements and attach them to a reply to this
email with your start date choice. If this is not possible, you may fax them
to 714-782-6022 or mail them to P.O. Box 11330, Santa Ana CA 92711-1330 and
reply to this email that you have done so. Be sure to put "ATTENTION:
INTERNET COUNSELING DEPARTMENT" on the cover sheet or envelope.
Once your statements and start date choice have been received, we will
confirm your payment amount from your statement balances and email you the
finalized documents for your approval to start your Debt Management Plan. Do
not send payment until you receive and complete these documents. Nothing is
final and NO contact is made with your creditors until we receive your
completed paperwork and your first payment. Your payment amount is subject
to approval by your creditors.
The DMP is a voluntary program and you can terminate it at any time with no
further obligation. If you think you might be able to manage the payments on
the plan, we encourage you to give it a try -- you can always terminate it
and file bankruptcy later if you find the payments are not workable for you.
If you decide no changes are possible to your budget situation in order to
alleviate the deficit and manage a debt repayment plan, you may have to
consider other options such as selling assets, borrowing from friends and/or
family, and of course bankruptcy relief. As stated before, there are many
negative consequences to bankruptcy, and not just to your credit and ability
to borrow. Some potential employers or insurers might look unfavorably upon
a candidate who has filed bankruptcy, as more and more employers and
insurers are pulling credit reports and doing public record background
checks. However, if you do not have another option, the bankruptcy law was
designed to give you a second chance to start over and rebuild your credit
over time.
Good Luck!
Angel Ramos
Certified Credit Counselor
Consumer Credit Counseling Services Of OC
(714)547-2227
angel.ramos@cccsoc.org
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To: ustp.region16@usdoj.gov March 27, 2008 The following is an email forwarded to my Chapter 13 client. The advice given my client completely ignores his significant pending tax obligations (with on-going penalties outside of bankruptcy) and his secured debts payment requirements, to be covered in his Chapter 13 Plan. I believe that this communication is improper legal advice to my client and not a reasonable "briefing" pursuant to 11 U.S.C. 109(h). Note that a reasonable briefing would not attempt to persuade a client to give his business to CCCS, but instead would be an unbiased presentation of his complete picture of all debt obligations and his budget requirements outside of Chapter 13 to resolve all of them. I don't believe that CCCS had an attorney performing
the "briefing" and I'm concerned that the United States Trustee's Office should be aware of this issue. Thank you. Peter M. Lively Law Office of Peter M. Lively1410 Second Street, Suite 302Santa Monica, California 90401-3550Telephone: 310-899-0630Fax: 310-899-0632A-Bankruptcy-Attorney.ComTHIS MESSAGE IS INTENDED ONLY FOR THE USE OF THE INDIVIDUAL OR ENTITY TO WHICH IT IS ADDRESSED, AND MAY CONTAIN INFORMATION THAT IS PRIVILEGED, CONFIDENTIAL AND EXEMPT FROM DISCLOSURE UNDER APPLICABLE LAW. IF THE READER OF THIS MESSAGE IS NOT THE INTENDED RECIPIENT, OR THE EMPLOYEE OR AGENT RESPONSIBLE FOR DELIVERING THE MESSAGE TO THE INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT ANY DISSEMINATION, DISTRIBUTION OR COPYING OF THIS COMMUNICATION IS
The post was migrated from Yahoo.