Recent Blog Posts

Supreme Court Decision Favors Arbitration

Scott Wilson — Mon, 16 Jan 2012 16:36:00 GMT

The Supreme Court ruled in favor of arbitration in cases involving consumers and companies that issue low-rate credit cards to people with low credit scores. Under the new ruling, consumers are no longer allowed to file law suits in federal court, and will instead need to utilize arbitration. Read more at USA Today.

Fewer Bankruptcy Filings May Not Necessarily Indicate an Improving Economy

Jacoby & Jacoby — Mon, 03 Oct 2011 13:40:00 GMT

After a steady increase over the past several years, the number of bankruptcy filings in the U.S. is finally on the decline, although this may not necessarily indicate that the economy is improving.

According to a report by Epiq Systems, which tracks bankruptcy filings, the number of filings in June dropped 6.2% from May, in spite of the fact that there was one additional day to file in June. At an average of 5,483 per day, daily filings are down almost 10% from June of last year.

Though the total number of bankruptcy filings throughout the U.S. was down, the actual numbers varied from state to state. In Delaware, for example, June filings were up 33% compared with May. They were up 13% in Georgia but dropped 30% in Wyoming, 21% in South Dakota and 18% in West Virginia. In New York and New Jersey, filings were down 5%.

At first glance, the decline in bankruptcy filings may seem to indicate that the economy is improving. While it is true that unemployment and foreclosures play an important role in bankruptcy filings, the amount of outstanding consumer debt is more closely tied with the filing rate in the long run. Access to credit can also influence the bankruptcy rate on a short term basis. When lenders tighten their standards and borrowers have limited access to credit cards and other loans during difficult times, they are more likely to turn to bankruptcy. Filings tend to fall when new loans are being made.

Robert M. Lawless, a professor at the University of Illinois College of Law, said he expects that filings will decline 5-10% this year – largely because consumers have slightly more access to credit than they had in previous years. He also said that consumers have taken on less debt in the past three years. With less debt to discharge and fewer incentives to file bankruptcy in the first place, he expects that filings will level off at approximately 1.46 million.

There were approximately 1.56 million bankruptcy filings in 2010 and nearly 1.45 million in 2009. In 2005, bankruptcy filings surpassed two million, as debtors rushed to file before a new law went into effect that made it more difficult and expensive to file.

As of the end of June of this year, there were 731,237 bankruptcy filings nationwide. 70% of these were Chapter 7 filings, which enable debtors to secure a fresh start by forgiving their debt. This is typically the fastest and most straightforward form of bankruptcy, but debtors must first pass a means test to qualify, which determines whether they are able to repay their debts under a Chapter 13 repayment plan.

Approximately 27% of filings through June were Chapter 13 filings, which involve the establishment of repayment plans that require debtors to use their disposable income to pay creditors over a period of 3 or 5 years. Debtors who cannot pass the means test or who wish to save their homes from foreclosure may choose to file Chapter 13.

Regardless of your financial situation, it is important to seek accurate information and knowledgeable counsel when considering whether to file bankruptcy. With more than 50 years of collective legal experience, the team at Jacoby & Jacoby can offer debtors the level of legal representation they need in filing Chapter 7 or Chapter 13 or seeking an alternative form of debt relief. Located in Long Island, the firm represents debtors throughout the surrounding areas.

Contact a Long Island bankruptcy attorney at the firm today for a confidential review of your case.

Los Angeles Dodgers File for Bankruptcy

Jacoby & Jacoby — Thu, 29 Sep 2011 22:40:00 GMT

The Los Angeles Dodgers filed for bankruptcy in a Delaware court on June 27^th, making it the third baseball team to file for bankruptcy in the past three years.

Upon filing, the team was cleared to borrow $60 million to pay salaries and run operations while working out a long-term solution to its financial problems. On July 22^nd, a bankruptcy judge decided against Dodgers owner Frank McCourt's plan to acquire a $150 million loan from a hedge fund, meaning the team may need to seek financial help from Major League Baseball instead.

According to a statement from a Dodgers official in court just two days prior to the judge's decision, the MLB loan was a cheaper option but would give the league more control over the team. The MLB loan was offered at a lower interest rate than the 10% that the Dodgers had originally agreed to pay.

Since April, the team has been operating under a trustee appointed by Commissioner Bud Selig. Under a league provision that allows for the termination of the franchise of owners who file for bankruptcy, Selig may be able to seek a judge's permission to remove McCourt as the owner of the team.

It appears that the Dodgers and Major League Baseball are at odds after releasing opposing statements that essentially blamed the team's financial problems on one another. According to McCourt, the team brought the commissioner a media rights deal that would have solved their cash-flow problems, but the deal was vetoed. According to Commissioner Selig, McCourt has saddled the team with debt and has dipped into team funds to pay for personal expenses. McCourt's divorce with his wife, who claims to own half the team, has also been a subject of much contention in the matter.

Court documents show Manny Ramirez, who has retired from baseball, as the Dodgers' biggest creditor. Ramirez is owed nearly $21 million. Other creditors include outfielder Andruw Jones, who is owed $11 million, pitcher Hiroki Kuroda, who is owed $4.5 million and Vin Scully, who has been calling Dodgers games for 62 years and is owed $153,000.

Unlike most bankrupt companies, however, the Dodgers assets exceed its liabilities, which may give the team room for maneuvering that can allow for a swifter resolution to its financial problems.

Looking to learn more about bankruptcy and other debt-related matters? Contact a Long Island bankruptcy lawyer at Jacoby & Jacoby today.

Star Chef Geoffrey Zakarian Files for Bankruptcy

Jacoby & Jacoby — Mon, 26 Sep 2011 13:35:00 GMT

Geoffrey Zakarian is a celebrity chef in his own right. He participates in four programs on the Food Network, including "Chopped", and has operated a number of high-profile restaurants over the years. He has two restaurants in fashionable New York hotels and even has a hand in hotels in Atlantic City and Miami Beach. In spite of all of this, Zakarian filed for personal bankruptcy in federal court in Bridgeport, Connecticut in early April of this year.

Zakarian's Chapter 7 petition listed 179 creditors, 152 of which are former cooks from Country, a restaurant at the Carlton Hotel in Midtown Manhattan that closed in the summer of 2008. These cooks are part of a class action lawsuit against Zakarian and his management firm that was filed on July 3^rd of the same year that Country closed its doors. According to their claims, they were shortchanged, denied full overtime wages and were subjected to deductions for staff meals that never took place.

A key issue of concern in regard to the lawsuit against Zakarian is the fact that two of his former partners appear to support the chefs' claims. Adam Block, a former partner in Country, has filed an affidavit in support of the chefs. Moshe Lax, another partner, has said in a separate lawsuit that Zakarian violated labor laws.

According to the bankruptcy petition, Zakarian has liabilities of up to $1 million compared to a mere $50,000 in assets.

Filing for bankruptcy places an automatic stay on all collection efforts against a borrower, including any pending lawsuits. Scott A. Lucas, the plaintiffs' attorney in the case against Zakarian, has stated that he would work to have the class action suit move forward in spite of the bankruptcy filing.

Whether filing as a business or individual, handling bankruptcy proceedings can be a difficult undertaking without legal counsel. The largest bankruptcy firm in Long Island, Jacoby & Jacoby has handled more than 15,000 bankruptcy cases for clients through the years. The team has more than five decades of collective experience and is committed to helping debtors take advantage of the relief and protection that bankruptcy has to offer.

Contact a Long Island bankruptcy attorney at Jacoby & Jacoby today to discuss your case.

Disorganization or dishonesty? Lenders are making it difficult to get straight answers

Jacoby & Jacoby — Thu, 22 Sep 2011 22:30:00 GMT

As it is, mortgages are complicated. They become far more complicated when borrowers fall behind on their payments. Banks routinely transfer the notes underlying a property. Fees and charges stack up, muddling the accounting.

Let's take an example of a borrower in Georgia who filed for bankruptcy back in 2004 to save her home from foreclosure. She and her attorney only had two simple questions. What back payments were owed on the mortgage, if any? If she owed back payments, to whom did she owe them? They were unable to get straight answers to these questions for 7 years. From 2004 to early 2011, the borrower was subjected to conflicting claims by employees and representatives of Wells Fargo, which allegedly held the note on her property. At one point, three different institutions claimed to hold title to her two-bedroom home.

Determining the balance on a home loan should not be this difficult. Unfortunately, this Georgia homeowner is not the only person this has happened to. It makes you wonder how many others have been given the run around by their lenders. It makes you wonder just how many foreclosures have resulted from inaccurate accounting, deceptive practices or outright illegal conduct by lenders.

In February of this year, Wells Fargo reached a confidential settlement with the borrower mentioned above. It took her attorney filing suit against the lender and a good deal of persistence to achieve any movement in this matter.

Whether it boils down to disorganization or dishonesty, some lenders are making it exceedingly difficult for borrowers to file for bankruptcy, complete loan modifications or otherwise fight back against foreclosure. At Jacoby & Jacoby, the experienced team stands firm in their pursuit of justice on behalf of borrowers throughout Long Island. To learn more about your options and legal rights in the face of foreclosure or other matters concerning your lender, do not hesitate to contact the firm to schedule a confidential review of your case.

Contact a Long Island foreclosure defense lawyer at the firm today.

Texas Congressman Files for Bankruptcy

Jacoby & Jacoby — Mon, 19 Sep 2011 22:30:00 GMT

Representative Rubén Hinojosa, a Texas congressman who is currently on the House Financial Services Committee, filed for personal bankruptcy earlier this year. According to court documents, Hinojosa has $2.9 million in liabilities and approximately $1.5 million in assets. The vast majority of the debt ($2.6 million) is a claim by Wells Fargo Bank. Hinojosa has stated that the problem was a loan he guaranteed for his family-owned meat company, which went bankrupt.

The House Financial Services Committee has jurisdiction over legislation affecting banks, but there are apparently no House rules that prohibit a lawmaker who owes large sums of money to a bank from serving on the committee.

Financial problems may affect virtually any type of person, in any walk of life. As a debtor, it is important to weigh your options so you can make the right choices about filing Chapter 7, Chapter 13 or perhaps looking at an alternative to bankruptcy. The experienced team at Jacoby & Jacoby is committed to providing experienced legal counsel to debtors throughout Long Island, helping them through the decision-making process and through every step of their bankruptcy cases in order to help them address their debt.

Contact a Long Island bankruptcy attorney at Jacoby & Jacoby today.

Lawsuit Loans: Unregulated and Presenting Serious Risks for the Injured

Jacoby & Jacoby — Thu, 15 Sep 2011 22:25:00 GMT

The business of lending to plaintiffs has increased over the past 10 years, with estimates that the industry is now lending more than $100 million every year. In most of the U.S., lawsuit lending remains primarily unregulated, resulting in exorbitant interests rates and other abuses that end up depleting the settlements or jury awards that these plaintiffs receive.

In some cases, it may be years before a plaintiff sees any money from a personal injury case or similar lawsuit. In order to make ends meet until they receive their settlements, plaintiffs sometimes turn to lawsuit lending companies to borrow money, with the pledge that they will repay the loans from their settlements or awards.

For all the good this could do plaintiffs in their time of need, some companies are taking advantage of the fact that they are unrestrained by laws that cap interest rates. Some lawsuit lenders' interest rates exceed 100% per year. These companies are also not required to provide clear and complete pricing information to borrowers, sometimes resulting in misleading information that lures plaintiffs into accepting loans that will, in the end, deplete the majority of their winnings.

How can lawsuit lenders escape unscathed? These companies claim that they are not actually lenders, as plaintiffs are not required to repay the money they borrow if they do not win their cases. Instead, they refer to these transactions as advancements, investments or financing. They also claim that they must charge high prices due to the amount of risk that is involved in these "investments". Borrowers may lose their cases or may receive far less than was expected. Some cases may drag on for years.

In addition to what may be considered predatory abuses, lawsuit loans may have another, darker impact on the American economy. The lawsuit-lending industry encourages civil lawsuits that may only end up sapping the resources of the individuals and companies on which our economy relies – creating further harm in the face of our still struggling economy and continually high rate of personal bankruptcy filings.

If you are dealing with overwhelming debt, foreclosure or other financial difficulties, make sure you work with an attorney who will put your best interests first. Jacoby & Jacoby is a Long Island debt relief firm that represents borrowers throughout the area in all types of bankruptcy and foreclosure related matters.

Contact a Long Island debt relief lawyer at the firm today to discuss your concerns.

Will the big banks ever be held accountable?

Jacoby & Jacoby — Mon, 12 Sep 2011 22:25:00 GMT

Many Americans are aware that banks have been less than fair in their handling of foreclosures. They foreclosed when they could have modified. They filed false court documents. Though there were investigations, we are still waiting for the banks to be held accountable.

The measures that have been taken to address and correct banks' wrongful conduct are likely to leave Americans disappointed. Rather than imposing strict penalties on banks for robo-signing (approving foreclosure agreements without having a qualified person actually review their contents) and charging exorbitant late fees that leave borrowers without any hope of catching up on past due payments, it appears that banks will receive a veritable slap on the wrist. They will be required to abide by existing laws and contracts – something that they should have been doing anyway.

A draft agreement published by the American Banker does not call for penalties for past violations, for strict new regulations that will put an end to these abuses or for more mortgage modifications. It merely requires that banks improve the management of their foreclosures. It requires that lenders set up phone numbers where delinquent borrowers can seek support from someone who can answer their questions. It requires that lenders halt foreclosure proceedings while borrowers seek modifications. Change is good, but shouldn't these common-sense measures already be in place?

With approximately 6.7 million homes already lost in the housing crash, it is estimated that another 3.3 million will be lost through 2012. These foreclosures affect the entire market, dragging down all home prices. If the big banks aren't held accountable, Americans are likely to be dealing with foreclosures for years to come.

Jacoby & Jacoby is a Long Island bankruptcy and foreclosure defense firm that is committed to preserving the rights of borrowers who are dealing with unfair, deceptive or outright illegal practices by lenders. Contact a Long Island foreclosure attorney at the firm today to learn more about foreclosure and what you can do to in the face of foreclosure if you have fallen behind on your mortgage payments.

Lessening the Impact Bankruptcy Has on Your Credit Score

Jacoby & Jacoby — Fri, 09 Sep 2011 00:25:00 GMT

Although it is certainly true that bankruptcy may negatively affect a filer's credit score, sometimes for years after the discharge, there are steps that a debtor can take to lessen the impact. With careful planning, a debtor may be able to recover much more quickly in order to experience the financial freedom and fresh start that bankruptcy may offer.

Bankruptcy may lower a debtor's credit score by 50 to 300 points, depending on the particular situation. It may remain on their credit report for up to 10 years, but in some cases credit reporting agencies will remove it after 7 years. These factors may make it difficult to make large purchases, such as a home or car, and a debtor who has filed for bankruptcy may be subject to higher interest rates because they are seen as more of a risk.

Rebuilding after bankruptcy may seem difficult, but it is not impossible. There are basic steps that a debtor can take to restore his or her credit. A debtor can start with a secured credit card. Secured cards generally have low limits and require a debtor to make a deposit equal to the credit limit of the card. Using this type of card and paying its balance on or ahead of time can show lenders that the borrower is not a high risk. It can also improve the debtor's credit score. Similarly, the debtor can apply for regular credit cards, taking care to only use these if the money is already in place to pay it off as quickly as possible. During this time, it is also crucial for a debtor to remain current on any and all bills he or she is currently responsible for paying, such as rent, mortgage, utility bills, and more.

Keeping a close eye on one's credit score is also a wise practice in rebuilding credit after bankruptcy. In addition to ensuring that information on the report is accurate, a debtor can see immediately what impact his or her efforts are having. A debtor should also attempt to have the bankruptcy filing removed from the credit report as soon as possible.

Looking for experienced help through the bankruptcy process? Jacoby & Jacoby is a Long Island bankruptcy law firm that is committed to providing personalized, high-quality legal counsel to debtors in Chapter 7, Chapter 13 and Chapter 11 filings. The firm also handles foreclosure defense and loan modifications. To learn more, contact a Long Island bankruptcy attorney at the firm today.

Banks Rushing to Foreclosure 99% of the Time

Jacoby & Jacoby — Mon, 05 Sep 2011 14:25:00 GMT

Sheila Bair, former chairwoman of the Federal Deposit Insurance Corporation (FDIC) revealed some interesting information and opinions during her exit interview with The New York Times.

Bair called upon mortgage servicers to reset adjustable-rate mortgages, which would help homeowners avoid foreclosure, protect neighboring properties and in all speed up recovery. Though mortgage servicers "promised" to modify mortgages, they instead foreclosed on the majority and modified only 1%. In discussing this during the interview, Bair said, ""I think some of it was that they didn't think borrowers were worth helping. There was some disdain for borrowers."

Bair's description of the foreclosure process and the apparent haste with which mortgage servicers approach it may paint a frightening picture for homeowners across the U.S.

You can read the entire exit interview here.

If you are seeking information about foreclosure or would like to discuss loan modification as a potential alternative, a skilled professional at Jacoby & Jacoby may be able to assist you. The firm represents homeowners and borrowers throughout Long Island who are facing foreclosure, are considering mortgage modification or who are weighing their options in filing for bankruptcy.

To discuss your concerns, contact a Long Island loan modification lawyer at the firm.

Home sales are strong in Las Vegas - but why?

Jacoby & Jacoby — Thu, 01 Sep 2011 12:20:00 GMT

Although home sales are currently on the rise in the Las Vegas area, this is mostly due to distressed sales, whether bank-owned properties or short sales. Considering the high number of delinquent mortgages, properties currently in foreclosure and homeowners who are upside-down on their mortgages, it appears that the number of distressed sales in the area will remain high.

According to a July 10^th report from the Greater Las Vegas Association of Realtors (GLVAR), the sales of single-family homes on the Realtor-based Multiple Listing Service (MLS) were up 16.7% over May and 8% over June of 2010. The June 2011 sales figures were the third-best month in history for the Southern Nevada area.

The increase in sales is heartening, but it does not necessarily indicate a normal or healthy real estate market. Nearly 70% of these sales were bank-owned or short sales. 47.2% of sales in June were bank-owned properties, and 21.6% were short sales.

Investor activity, however, does appear to remain strong in Southern Nevada. Approximately 50% of the homes sold in June were purchased with cash.

For experienced guidance in any foreclosure or bankruptcy related matter, you can count on the skilled team at Jacoby & Jacoby. The firm represents debtors and homeowners throughout Long Island, providing knowledgeable and dedicated counsel when it is needed the most.

Contact a Long Island foreclosure lawyer at the firm today.

Homeowners' Associations Taking Active Roles in Foreclosures

Jacoby & Jacoby — Mon, 29 Aug 2011 00:15:00 GMT

It is estimated that one in five American homeowners is subject to homeowners' associations. Homeowners' associations levy dues, which may range anywhere from $200 to $500 per month, to cover the cost of services that the municipal government typically takes care of. This may include streetlights, sewage systems, road repairs and the like. Homeowners' associations also make rules for their communities. Although these rules may vary, some of them have seem outright ridiculous, such as having homeowners dye brown spots on their front lawns. If a homeowners' association is running low on its budget because a major repair needs to be completed, it may levy a "special assessment" on top of whatever normal monthly dues are being charged.

How to homeowners' association dues relate to foreclosure? In the past, homeowners' associations rarely foreclosed on homeowners. Currently, however, we are seeing a rising trend of associations foreclosing on residents, even those who are only 60 days past due on their association fees. You see, many homeowners are unaware of the fact that homeowners' associations may have the ability to foreclose on their homes, even in the face of only a few hundred dollars in unpaid fees.

In addition to facing foreclosure, failing to pay homeowners' association fees may also pit neighbor against neighbor. If a homeowner fails to pay dues and special assessments, the burden of financial responsibility will fall to the other homeowners.

Whether it is in dealing with the homeowners' association or the lender, facing foreclosure may place any individual or family at risk of losing their home. As a Long Island bankruptcy and foreclosure defense firm, Jacoby & Jacoby is fully committed to protecting the interests of homeowners as they deal with foreclosure, excessive debt, wage garnishment and more.

To find out how the firm can help you, contact a Long Island foreclosure attorney today.

Comprehensive Debt-Reduction Efforts Abandoned By House Speaker

Jacoby & Jacoby — Thu, 25 Aug 2011 16:15:00 GMT

House Speaker John A. Boehner (R-Ohio) abandoned efforts to reach a comprehensive debt-reduction deal, stating on July 9th that, in spite of efforts to reach a debt reduction agreement, the White House would not agree without significant tax increases. "I believe the best approach may be to focus on producing a smaller measure, based on the cuts identified in the Biden-led negotiations, that still meets our call for spending reforms and cuts greater than the amount of any debt limit increase," said Boehner in a statement released less than 24 hours before the White House meeting was scheduled to begin.

Boehner's original stance on the issue was to "go big" and reach an agreement that would save more than $4 trillion over the next ten years. It would have been the largest debt-reduction package in at least 20 years, striking all the major areas of government spending. But this idea began to crumble under President Obama's resolve to seek considerable new tax revenue.

It appears that the straw that broke the camel's back, so to speak, was the failure to reach an agreement with the White House on a strategy that would have allowed the Bush-era tax cuts for the nation's wealthiest households to expire next year. Though Democrats were quick to accuse Boehner of placing tax breaks for the rich above the nation's financial salvation, White House communications director Dan Pfeiffer said in a statement, "We cannot ask the middle-class and seniors to bear all the burden of higher costs and budget cuts. We need a balanced approach that asks the very wealthiest and special interests to pay their fair share as well, and we believe the American people agree."

In accordance with Boehner's new decision, negotiators are re-examining the matter and considering a less ambitious approach under a framework that had been under discussion between Vice President Biden and a bipartisan group of lawmakers. That framework was aimed at saving approximately $2.4 trillion over the next ten years.

Vegas Restaurateur Andre Rochat Files for Bankruptcy

Jacoby & Jacoby — Tue, 23 Aug 2011 00:10:00 GMT

Andre Rochat, chef and longtime Las Vegas restaurateur, filed for Chapter 11 bankruptcy on July 8^th, along with three of his businesses.

Chapter 11 bankruptcy is a form of bankruptcy that involves a reorganization of debt. A struggling business can keep its doors open during the process, and creditors may participate in the process as well. Rochat, Andre's French Restaurant Inc. at the Monte Carlo hotel and casino, Alize at the Palms hotel and casino and Gastronomy Management Group, Rochat's management company, filed at the U.S. Bankruptcy Court for Nevada.

Rochat's personal bankruptcy filing stated $4.25 million in liabilities and nearly $418,000 in personal assets. Two of the key creditors in the matter include Plaza Bank, which has claims of more than $2.3 million, and Mary Jane Jarvis, who is owed $560,000 as an arrearage on an executory contract.

The management company and two restaurants together employ approximately 90 people. According to Joseph Marsco, the director of operations and managing partner at Gastronomy, the restaurants are on track to becoming more profitable. They have good relationships with the hotel-casinos, and bankruptcy filings were only necessary due to unsuccessful efforts to resolve financial difficulties outside of the courtroom.

Filing for bankruptcy, whether under Chapter 11, Chapter 13 or Chapter 7 of the U.S. Bankruptcy Code, can be a difficult undertaking without proper legal counsel. During these complex legal proceedings, an experienced lawyer can ensure your legal rights and financial interests are protected and that the process goes as smoothly as possible. This is the level of legal counsel that the team at the Long Island law firm of Jacoby & Jacoby is dedicated to providing.

Contact a Long Island bankruptcy attorney at the firm today.

Teens Are Finding It Difficult To Land Summer Jobs

Jacoby & Jacoby — Fri, 19 Aug 2011 00:05:00 GMT

Before the job market took a turn for the worse, it used to be that teenagers found summer jobs with relative ease. Even high school drop outs didn't have to spend too long looking for employment. Today, it doesn't appear to be quite as easy.

According to statistics from the Employment Policy Institute, nearly 35% of California and Georgia teens looking for work have been unsuccessful in landing jobs. Teen unemployment is even higher in the District of Columbia, at 49%. Other states with high unemployment rates for teenagers include Nevada (34.3%), Washington (33.2%), North Carolina (32.1%) and Idaho (31.8%).

In June, the national average rose from 24.2% to 24.5%.

Whether it is in dealing with unemployment, overwhelming debt, foreclosure or other financial matters, you can count on the experience and dedication of the team at Jacoby & Jacoby. The Long Island law firm handles all types of bankruptcy and debt relief matters for individuals and businesses in the area.

Contact a Long Island bankruptcy lawyer at the firm today.