theBKBlog » Debt negotiation http://www.thebklawyer.com/thebkblog Personal Bankruptcy tips and tricks moderated by Atlanta lawyer Jonathan Ginsberg Sun, 18 Jul 2010 15:03:00 +0000 en hourly 1 2007 Ginsberg Law Offices, P.C. admin Personal Bankruptcy tips and tricks moderated by Atlanta lawyer Jonathan Ginsberg No No Can You Rely on a Verbal Promise that Your Foreclosure Will be Delayed? http://www.thebklawyer.com/thebkblog/2010/07/18/can-you-rely-on-a-verbal-promise-that-your-foreclosure-will-be-delayed/ http://www.thebklawyer.com/thebkblog/2010/07/18/can-you-rely-on-a-verbal-promise-that-your-foreclosure-will-be-delayed/#comments Sun, 18 Jul 2010 15:03:00 +0000 Jonathan my petition preparation program on the pre foreclosure wednesday a failing real estate investment not surprisingly the foreclosure notice representative delay a foreclosure the foreclosure suspension letter a verbal promise post garcia v world savings the pending foreclosure sale scheduled verbal promises   http://www.thebklawyer.com/thebkblog/?p=690 Notice of ForeclosureLast month, I met several times with a potential Chapter 13 client who was facing a mortgage foreclosure.  Over the course of the past few months he has been juggling his creditors and bills trying to stay afloat and during that time he fell behind to his mortgage company by more than four months, and found himself in the foreclosure process. More on Can You Rely on a Verbal Promise that Your Foreclosure Will be Delayed?]]> Notice of ForeclosureLast month, I met several times with a potential Chapter 13 client who was facing a mortgage foreclosure.  Over the course of the past few months he has been juggling his creditors and bills trying to stay afloat and during that time he fell behind to his mortgage company by more than four months, and found himself in the foreclosure process.

This individual earns over $100,000 annually, but, unfortunately he used to earn more than double this amount.  His problem was not the mortgage, but his other bills, including a very high car payment and a mortgage payment arising from a failing real estate investment.

Not surprisingly the foreclosure notice got his attention.  He immediately took action by calling me to discuss Chapter 13 bankruptcy and by contacting his mortgage company to discuss repayment options.   By the Wednesday prior to the pending foreclosure sale scheduled for the following Tuesday, my client had provided me with enough information so that I could prepare a rough draft of a Chapter 13.   In this case, by the way, my client and I entered into an agreement whereby he paid me around $300 to open a file and to start entering information into my petition preparation program.

On the pre-foreclosure Wednesday he called to say that after a lot of discussion he was expecting a decision the next day from his mortgage company but that if he did not hear from them by mid-day on Thursday, we would be proceeding with the Chapter 13.  A few hours later he called back to say that his mortgage company had agreed to postpone the foreclosure until September and that the Chapter 13 was on hold for now.

Let's analyze what my client did right and what he did wrong.

On the positive side, he did the following right:

  • he did not panic – he approached the problem as a business problem not as a personal, moral failure
  • he began to address the problem early.  His first contact with me was literally the day he received the foreclosure notice.  He correctly guessed that the negotiation process with the lender would take several weeks
  • he took a two step approach to the problem – he opened negotiations with his lender, and at the same time he started planning for a Chapter 13
  • he retained me early on in the process and paid me a small sum ($300) to start the petition preparation process.  He also obtained his credit counseling certificate shortly after our first meeting.  Contrast that to some of the potential bankruptcy filers who call me on the Friday before foreclosure looking to start the process.
  • he convinced his lender to delay the foreclosure by two months – a 2 month delay is preferable to a 1 month delay in that my client now has enough time to try and sell his home

Now, what did he do wrong?

  • my main criticism is his failure to get a written confirmation of the suspension of the foreclosure.  What if the lender's representative failed to communicate with the foreclosing attorney?  What if the lender's representative is simply dishonest?  Can a verbal promise by a lender's representative to delay a foreclosure be enforceable?  What would the remedy be?

I am very wary of relying on verbal promises.  In law school, my contracts professor once made the comment that "an oral contract is worth the paper it is written on," and I do not disagree.

I did find a California state appellate case in which an appeals court found that a homeowner who relied to his detriment on a broken promise by a lender to delay a foreclosure had a cause of action for money damages.  However, even in this California case (which would not serve as binding precedent in Georgia) the foreclosure was not reversed and the only issue to be considered by the trial court on appeal was money damages.  Add to this months and months of delay and I wonder if the homeowner in the California case felt that he won anything.  (Thanks to Michael Renne and his San Francisco Bankruptcy Law blog for his post about Garcia v. World Savings.)

When your home is at risk, I would not rely on any verbal promises from your mortgage company.  I would also not rely on an email as the admissability of emails as evidence is questionable.  Instead I would suggest that you ask for a faxed letter from your lender or its attorney on letterhead, with the original mailed to you.  Further, if you enter into an agreement with the lender directly, you should contact the foreclosing attorney's office (with a copy of the foreclosure suspension letter) to confirm that they are aware of the deal as well.

]]> http://www.thebklawyer.com/thebkblog/2010/07/18/can-you-rely-on-a-verbal-promise-that-your-foreclosure-will-be-delayed/feed/ 0 The "Do It Yourself Bailout" – Part Six of Jonathan's Interview with Kenny Golde http://www.thebklawyer.com/thebkblog/2010/02/04/the-do-it-yourself-bailout-part-six-of-jonathans-interview-with-kenny-golde/ http://www.thebklawyer.com/thebkblog/2010/02/04/the-do-it-yourself-bailout-part-six-of-jonathans-interview-with-kenny-golde/#comments Thu, 04 Feb 2010 13:55:47 +0000 Jonathan non taxable link kenny golde interviewed kenny golde segment kenny and audio golde part6 mc kenny managed debt forgiveness and the insolvency rule interview parts 1 debt a business deal fell victim http://www.thebklawyer.com/thebkblog/?p=524 Have you ever wondered what it takes to settle your debts for pennies on the dollar?  Recently I interviewed Kenny Golde, a self employed filmmaker who found himself almost a quarter of a million dollars in debt when when a business deal fell victim to the economic downturn.   Using negotiation techniques he developed (and has subsequently written about in a book), Kenny has managed to eliminate more than half of this debt through negotiation.  Here is part six of our conversation – it lasts about 4 minutes.  This is the last segment of this interview – parts 1 through 5 may be found in the five posts immediately preceding this one.  In this segment, Kenny and I talk about the tax consequences of debt forgiveness and the insolvency rule that eliminates tax liability for most people. More on The "Do It Yourself Bailout" – Part Six of Jonathan's Interview with Kenny Golde]]> Have you ever wondered what it takes to settle your debts for pennies on the dollar?  Recently I interviewed Kenny Golde, a self employed filmmaker who found himself almost a quarter of a million dollars in debt when when a business deal fell victim to the economic downturn.   Using negotiation techniques he developed (and has subsequently written about in a book), Kenny has managed to eliminate more than half of this debt through negotiation.  Here is part six of our conversation – it lasts about 4 minutes.  This is the last segment of this interview – parts 1 through 5 may be found in the five posts immediately preceding this one.  In this segment, Kenny and I talk about the tax consequences of debt forgiveness and the insolvency rule that eliminates tax liability for most people.

Link to IRS Form 982 – used to declare forgiven debt as non-taxable

Link to Kenny Golde's book "The Do It Yourself Bailout."

]]> http://www.thebklawyer.com/thebkblog/2010/02/04/the-do-it-yourself-bailout-part-six-of-jonathans-interview-with-kenny-golde/feed/ 0 Jonathan Have you ever wondered what it takes to settle your debts for pennies on the dollar?  Recently I interviewed Kenny Golde, a self employed filmmaker who found himself almost a quarter of a million dollars in debt when when a business deal fell victim to the economic downturn.   Using negotiation techniques he developed (and has subsequently written about in a book), Kenny has managed to eliminate more than half of this debt through negotiation.  Here is part six of our conversation – it lasts about 4 minutes.  This is the last segment of this interview – parts 1 through 5 may be found in the five posts immediately preceding this one.  In this segment, Kenny and I talk about the tax consequences of debt forgiveness and the insolvency rule that eliminates tax liability for most people. More on The "Do It Yourself Bailout" – Part Six of Jonathan's Interview with Kenny Golde Alternatives to bankruptcy, Debt negotiation, credit card debt negotiation, debt negotiation strategy The "Do It Yourself Bailout" – Part Five of Jonathan's Interview with Kenny Golde http://www.thebklawyer.com/thebkblog/2010/02/03/the-do-it-yourself-bailout-part-five-of-jonathans-interview-with-kenny-golde/ http://www.thebklawyer.com/thebkblog/2010/02/03/the-do-it-yourself-bailout-part-five-of-jonathans-interview-with-kenny-golde/#comments Wed, 03 Feb 2010 12:54:37 +0000 Jonathan interviewed kenny golde segment kenny notes link kenny golde people think  part 6 the final segment audio golde part5 mc kenny managed debt a business deal fell victim negotiation techniques http://www.thebklawyer.com/thebkblog/?p=521 Have you ever wondered what it takes to settle your debts for pennies on the dollar?  Recently I interviewed Kenny Golde, a self employed filmmaker who found himself almost a quarter of a million dollars in debt when when a business deal fell victim to the economic downturn.   Using negotiation techniques he developed (and has subsequently written about in a book), Kenny has managed to eliminate more than half of this debt through negotiation.  Here is part five of our conversation – it lasts about 7 minutes.  In this segment, Kenny notes that most lenders will not consider negotiation with you until you are 90 days late.  He also talks about credit scores – and why this number is less important than most people think.  Part 6 – the final segment – will be posted tomorrow. More on The "Do It Yourself Bailout" – Part Five of Jonathan's Interview with Kenny Golde]]> Have you ever wondered what it takes to settle your debts for pennies on the dollar?  Recently I interviewed Kenny Golde, a self employed filmmaker who found himself almost a quarter of a million dollars in debt when when a business deal fell victim to the economic downturn.   Using negotiation techniques he developed (and has subsequently written about in a book), Kenny has managed to eliminate more than half of this debt through negotiation.  Here is part five of our conversation – it lasts about 7 minutes.  In this segment, Kenny notes that most lenders will not consider negotiation with you until you are 90 days late.  He also talks about credit scores – and why this number is less important than most people think.  Part 6 – the final segment – will be posted tomorrow.

Link to Kenny Golde's book "The Do It Yourself Bailout."

]]> http://www.thebklawyer.com/thebkblog/2010/02/03/the-do-it-yourself-bailout-part-five-of-jonathans-interview-with-kenny-golde/feed/ 0 Jonathan Have you ever wondered what it takes to settle your debts for pennies on the dollar?  Recently I interviewed Kenny Golde, a self employed filmmaker who found himself almost a quarter of a million dollars in debt when when a business deal fell victim to the economic downturn.   Using negotiation techniques he developed (and has subsequently written about in a book), Kenny has managed to eliminate more than half of this debt through negotiation.  Here is part five of our conversation – it lasts about 7 minutes.  In this segment, Kenny notes that most lenders will not consider negotiation with you until you are 90 days late.  He also talks about credit scores – and why this number is less important than most people think.  Part 6 – the final segment – will be posted tomorrow. More on The "Do It Yourself Bailout" – Part Five of Jonathan's Interview with Kenny Golde Alternatives to bankruptcy, Debt negotiation, debt settlement, percentage of debt forgiven, tax consequences of debt forgiveness, written debt settlement agreements The "Do It Yourself Bailout" – Part Four of Jonathan's Interview with Kenny Golde http://www.thebklawyer.com/thebkblog/2010/02/02/the-do-it-yourself-bailout-part-four-of-jonathans-interview-with-kenny-golde/ http://www.thebklawyer.com/thebkblog/2010/02/02/the-do-it-yourself-bailout-part-four-of-jonathans-interview-with-kenny-golde/#comments Tue, 02 Feb 2010 13:53:03 +0000 Jonathan interviewed kenny golde link kenny golde audio golde part4 mc entering a written settlement agreement lasts 8 minutes  we discuss the procedure kenny managed ensure settlement pennies the dollar  recently http://www.thebklawyer.com/thebkblog/?p=517 Have you ever wondered what it takes to settle your debts for pennies on the dollar?  Recently I interviewed Kenny Golde, who found himself with $250,000 of credit card debt and no way to pay it all back.  However, with tenacity and focus, Kenny has managed to eliminate more than half of this debt through negotiation.  Here is part four of our conversation – it lasts about 8 minutes.  We discuss the procedure for entering into a written settlement agreement with your creditor and the steps you must take to ensure that your settlement is honored by the creditor or collection agency.  Part 5 will be posted tomorrow. More on The "Do It Yourself Bailout" – Part Four of Jonathan's Interview with Kenny Golde]]> Have you ever wondered what it takes to settle your debts for pennies on the dollar?  Recently I interviewed Kenny Golde, who found himself with $250,000 of credit card debt and no way to pay it all back.  However, with tenacity and focus, Kenny has managed to eliminate more than half of this debt through negotiation.  Here is part four of our conversation – it lasts about 8 minutes.  We discuss the procedure for entering into a written settlement agreement with your creditor and the steps you must take to ensure that your settlement is honored by the creditor or collection agency.  Part 5 will be posted tomorrow.

Link to Kenny Golde's book "The Do It Yourself Bailout."

]]> http://www.thebklawyer.com/thebkblog/2010/02/02/the-do-it-yourself-bailout-part-four-of-jonathans-interview-with-kenny-golde/feed/ 1 Jonathan Have you ever wondered what it takes to settle your debts for pennies on the dollar?  Recently I interviewed Kenny Golde, who found himself with $250,000 of credit card debt and no way to pay it all back.  However, with tenacity and focus, Kenny has managed to eliminate more than half of this debt through negotiation.  Here is part four of our conversation – it lasts about 8 minutes.  We discuss the procedure for entering into a written settlement agreement with your creditor and the steps you must take to ensure that your settlement is honored by the creditor or collection agency.  Part 5 will be posted tomorrow. More on The "Do It Yourself Bailout" – Part Four of Jonathan's Interview with Kenny Golde Alternatives to bankruptcy, Debt negotiation, bill collectors, debt collector psychology, debt collectors, debt settlement, dunning, settling debts for pennies on the dollar The "Do It Yourself Bailout" – Part Three of Jonathan's Interview with Kenny Golde http://www.thebklawyer.com/thebkblog/2010/02/01/the-do-it-yourself-bailout-part-three-of-jonathans-interview-with-kenny-golde/ http://www.thebklawyer.com/thebkblog/2010/02/01/the-do-it-yourself-bailout-part-three-of-jonathans-interview-with-kenny-golde/#comments Mon, 01 Feb 2010 14:50:44 +0000 Jonathan link kenny golde lasts 8 minutes  kenny points less  finally kenny notes audio golde part3 mc pennies the dollar  recently settle 50 cents a debt buyer  he points settling debt  he explains http://www.thebklawyer.com/thebkblog/?p=513 Have you ever wondered what it takes to settle your debts for pennies on the dollar?  Recently I interviewed someone who started with $250,000 of credit card debt and with tenacity and focus, has managed to eliminate more than half of this debt through negotiation.  Here is part three of my conversation – it lasts about 8 minutes.  Kenny points out that there is nothing morally wrong with settling debt.  He explains that the term "charged off debt" means nothing – it usually just means that the creditor has sold its debt to a debt buyer.  He points out that many collection agencies buy debt for 5 to 10 cents on the dollar, which is why they would be willing to settle for 50 cents on the dollar or less.  Finally Kenny notes that any debt settlement should be in writing and that you should never send any money without a written agreement. Part 4 will be posted tomorrow. More on The "Do It Yourself Bailout" – Part Three of Jonathan's Interview with Kenny Golde]]> Have you ever wondered what it takes to settle your debts for pennies on the dollar?  Recently I interviewed someone who started with $250,000 of credit card debt and with tenacity and focus, has managed to eliminate more than half of this debt through negotiation.  Here is part three of my conversation – it lasts about 8 minutes.  Kenny points out that there is nothing morally wrong with settling debt.  He explains that the term "charged off debt" means nothing – it usually just means that the creditor has sold its debt to a debt buyer.  He points out that many collection agencies buy debt for 5 to 10 cents on the dollar, which is why they would be willing to settle for 50 cents on the dollar or less.  Finally Kenny notes that any debt settlement should be in writing and that you should never send any money without a written agreement. Part 4 will be posted tomorrow.

Link to Kenny Golde's book "The Do It Yourself Bailout."

]]> http://www.thebklawyer.com/thebkblog/2010/02/01/the-do-it-yourself-bailout-part-three-of-jonathans-interview-with-kenny-golde/feed/ 0 Jonathan Have you ever wondered what it takes to settle your debts for pennies on the dollar?  Recently I interviewed someone who started with $250,000 of credit card debt and with tenacity and focus, has managed to eliminate more than half of this debt through negotiation.  Here is part three of my conversation – it lasts about 8 minutes.  Kenny points out that there is nothing morally wrong with settling debt.  He explains that the term "charged off debt" means nothing – it usually just means that the creditor has sold its debt to a debt buyer.  He points out that many collection agencies buy debt for 5 to 10 cents on the dollar, which is why they would be willing to settle for 50 cents on the dollar or less.  Finally Kenny notes that any debt settlement should be in writing and that you should never send any money without a written agreement. Part 4 will be posted tomorrow. More on The "Do It Yourself Bailout" – Part Three of Jonathan's Interview with Kenny Golde Alternatives to bankruptcy, Debt negotiation, debt negotiation, debt settlement, debt settlement companies, do it yourself bailout, kenny golde The Do It Yourself Bailout – Part Two of Jonathan's Interview with Kenny Golde http://www.thebklawyer.com/thebkblog/2010/01/31/the-do-it-yourself-bailout-part-two-of-jonathans-interview-with-kenny-golde/ http://www.thebklawyer.com/thebkblog/2010/01/31/the-do-it-yourself-bailout-part-two-of-jonathans-interview-with-kenny-golde/#comments Sun, 31 Jan 2010 15:48:25 +0000 Jonathan corporation kenny advises  parts 3 link walletpop article discussed kenny segment link kenny golde audio golde part2 mc lasts 8 minutes  kenny and emotions guilt   pennies the dollar  recently http://www.thebklawyer.com/thebkblog/?p=510 Have you ever wondered what it takes to settle your debts for pennies on the dollar?  Recently I interviewed someone who started with $250,000 of credit card debt and with tenacity and focus, has managed to eliminate more than half of this debt through negotiation.  Here is part two of my conversation – it lasts about 8 minutes.  Kenny and I discuss the psychology of debt collection and the importance of seeing debt negotiation as a business transaction free of emotions or guilt.  "You are the CEO of your own corporation," Kenny advises.  Part 3 will be posted tomorrow. More on The Do It Yourself Bailout – Part Two of Jonathan's Interview with Kenny Golde]]> Have you ever wondered what it takes to settle your debts for pennies on the dollar?  Recently I interviewed someone who started with $250,000 of credit card debt and with tenacity and focus, has managed to eliminate more than half of this debt through negotiation.  Here is part two of my conversation – it lasts about 8 minutes.  Kenny and I discuss the psychology of debt collection and the importance of seeing debt negotiation as a business transaction free of emotions or guilt.  "You are the CEO of your own corporation," Kenny advises.  Part 3 will be posted tomorrow.

Link to WalletPop article discussed by Kenny in this segment

Link to Kenny Golde's book "The Do It Yourself Bailout."

]]> http://www.thebklawyer.com/thebkblog/2010/01/31/the-do-it-yourself-bailout-part-two-of-jonathans-interview-with-kenny-golde/feed/ 0 Jonathan Have you ever wondered what it takes to settle your debts for pennies on the dollar?  Recently I interviewed someone who started with $250,000 of credit card debt and with tenacity and focus, has managed to eliminate more than half of this debt through negotiation.  Here is part two of my conversation – it lasts about 8 minutes.  Kenny and I discuss the psychology of debt collection and the importance of seeing debt negotiation as a business transaction free of emotions or guilt.  "You are the CEO of your own corporation," Kenny advises.  Part 3 will be posted tomorrow. More on The Do It Yourself Bailout – Part Two of Jonathan's Interview with Kenny Golde Alternatives to bankruptcy, Debt negotiation, business of debt collection, debt collector psychology, debt settlement, kenny golde, morality of debt settlement The "Do It Yourself Bailout" – Part One of Jonathan's Interview with Kenny Golde http://www.thebklawyer.com/thebkblog/2010/01/30/the-do-it-yourself-bailout-part-one-of-jonathans-interview-with-kenny-golde/ http://www.thebklawyer.com/thebkblog/2010/01/30/the-do-it-yourself-bailout-part-one-of-jonathans-interview-with-kenny-golde/#comments Sat, 30 Jan 2010 22:25:20 +0000 Jonathan author and filmmaker kenny golde link kenny golde kenny golde audio golde part1 mc subsequent installments appearing bailout link discusses remarkable story the guilt and emotional efforts http://www.thebklawyer.com/thebkblog/?p=505 Have you ever wondered what it takes to settle your debts for pennies on the dollar?  Recently I interviewed someone who started with $250,000 of credit card debt and with tenacity and focus, has managed to eliminate more than half of this debt through negotiation.  Here is part one of my conversation with author and filmmaker Kenny Golde, who discusses with me his remarkable story about how he ended up with hundreds of thousands of dollars of debt and how he came to realize that debt negotiation is a business strategy and that the guilt and emotional efforts of debt collectors are merely tactics.  This first segment lasts about 8 minutes.  Parts 2 will appear tomorrow on this blog, with subsequent installments appearing every day through the February 4th post. More on The "Do It Yourself Bailout" – Part One of Jonathan's Interview with Kenny Golde]]> Have you ever wondered what it takes to settle your debts for pennies on the dollar?  Recently I interviewed someone who started with $250,000 of credit card debt and with tenacity and focus, has managed to eliminate more than half of this debt through negotiation.  Here is part one of my conversation with author and filmmaker Kenny Golde, who discusses with me his remarkable story about how he ended up with hundreds of thousands of dollars of debt and how he came to realize that debt negotiation is a business strategy and that the guilt and emotional efforts of debt collectors are merely tactics.  This first segment lasts about 8 minutes.  Parts 2 will appear tomorrow on this blog, with subsequent installments appearing every day through the February 4th post.

Link to Kenny Golde's book "The Do It Yourself Bailout."

Link to Kenny Golde's web site.

]]> http://www.thebklawyer.com/thebkblog/2010/01/30/the-do-it-yourself-bailout-part-one-of-jonathans-interview-with-kenny-golde/feed/ 1 Jonathan Have you ever wondered what it takes to settle your debts for pennies on the dollar?  Recently I interviewed someone who started with $250,000 of credit card debt and with tenacity and focus, has managed to eliminate more than half of this debt through negotiation.  Here is part one of my conversation with author and filmmaker Kenny Golde, who discusses with me his remarkable story about how he ended up with hundreds of thousands of dollars of debt and how he came to realize that debt negotiation is a business strategy and that the guilt and emotional efforts of debt collectors are merely tactics.  This first segment lasts about 8 minutes.  Parts 2 will appear tomorrow on this blog, with subsequent installments appearing every day through the February 4th post. More on The "Do It Yourself Bailout" – Part One of Jonathan's Interview with Kenny Golde Alternatives to bankruptcy, Debt negotiation, debt negotiation, debt settlement, kenny golde