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Bill McLeod is a Boston-based bankruptcy attorney, representing creditors and debtors with over 15 years of experience. You can learn more about this and read more of his blog posts at www.mcleodlawoffices.com. Follow him on Twitter.  Find him on Facebook.

In recent months, I’ve been hearing from and speaking with attorneys young and old who express a desire to practice consumer bankruptcy law. Only some express a desire to enter into a practice area that is evolving, intellectually fascinating, and in this economy extraordinarily relevant. Virtually (but not) all express their belief that this is one practice area that is expected to grow in the coming years. Some mention that as the only motivation to consider it. I guess they have mortgage payments too.

If you’re considering changing practice areas, adding practice areas, or entering the consumer bankruptcy arena as a newly minted attorney fresh off the bar exam lawyer, here’s my…

Top Ten Things You Need to Know Before You Become a Bankruptcy Lawyer

1. Own a copy of the bankruptcy code. If you do not have a copy of the bankruptcy code and you’re already practicing (or perhaps better said, think you’re practicing) bankruptcy law, you’re already doing a bad job. Actually, you’re flirting with a malpractice claim. I have two: one at the office, and one which is always in my brief case, and my brief case is almost always with me (except when I leave it home). In addition to owning it, you should read it.

2. Never forget the basics. Attorneys have rules. You cannot lie, nor can you help a client lie. You cannot steal, nor may you help a client steal. You cannot violate your oath. There is no “winking” in bankruptcy. (more…)

"So I ran into Bill in the clerk's office in Boston recently..."

Friends of Bankruptcy Bill (FOBB) are experienced consumer bankruptcy lawyers willing to share their thoughts and answer bankruptcy questions on this site. Feel free to get in touch if interested in contributing as a FOBB.

Bill McLeod is a Boston-based bankruptcy attorney, representing creditors and debtors with over 15 years of experience. You can learn more about this and read more of his blog posts at www.mcleodlawoffices.com. Follow him on Twitter.  Find him on Facebook.

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When you discover that you are a creditor in a bankruptcy case…

Bill McLeod, Esq.

Recently, I was in the clerk’s office in Boston and overheard two people ask the clerk which forms needed to be filed in a bankruptcy case.  But this person was not a debtor – they were a creditor.  Their landlord had filed bankruptcy.  The former tenant was looking for their security deposit back, and was going to sue the debtor in small claims.  I couldn’t help myself – and I butted in.

“You need relief from the automatic stay.”

“The stay applies even to me?” one asked.

“It applies to everyone.”

After that short exchange, I thought I would put together a short checklist of things to do when your landlord – or someone else you know who also happens to owe you money – files a petition seeking bankruptcy protection.

• Don’t panic.

People have the right to seek bankruptcy protection.  Simply because they do does not mean that you’re not going to get paid.  On the other hand, simply because I am encouraging you not to panic should not be read to mean that you are going to get paid.  But still, don’t panic.  In my experience, panic can lead to actions that can get you into more trouble…such as violating the automatic stay…so with that said…

• Don’t violate the automatic stay.

The automatic stay applies to all creditors.  It does not matter if you’re a big bank or a friend or neighbor of the debtor, the same rules apply.  There are very limited exceptions to the automatic stay and you should not assume that you fall under one of those exceptions.

If you know that someone has filed bankruptcy, do not call the debtor and ask about payment.  Do not send them a letter.  Do not sue them – even in small claims court.   Don’t assume that just because you heard about it from a third party and did not receive any written notice does not mean that the automatic stay does not apply to you.  Stay violations can be costly.  Willful violations of the stay can be very costly.

Call an experienced bankruptcy attorney to determine what your next course of action should be (such as filing a motion for relief from the automatic stay).  And remember, the court clerk’s office cannot give you legal advice.

• Consult with an attorney.

At a very minimum, talk to a bankruptcy attorney.  Be prepared to explain the basis of your claim against the debtor and why (more…)

"...and they tried to collect the debt right on the ski lift."

Friends of Bankruptcy Bill (FOBBs) are experienced consumer bankruptcy lawyers willing to share their thoughts and answer bankruptcy questions on this site. Feel free to get in touch if interested in contributing as a FOBB.

Gailyn Wink handles personal and small business Chapter 7 and Chapter 13 bankruptcies for Wink & Wink, P.C. She focuses on adversary proceedings and other bankruptcy litigation.  For more information, go to www.winkandwink.com.

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Debt Collection in Colorado:  Know your rights

If you are struggling with debt, there’s a good chance you are also struggling with unwanted contact from debt collectors. Sometimes these are your actual creditors, the ones you signed a contract with, but often the person calling you works for another company altogether because your debt has been sold to a debt collection agency. No matter who is contacting you about your debts, it’s not a good feeling. And when debt collectors cross the line, it can be downright scary. Knowing your rights where debt collection is concerned is important and empowering. Here’s some information about debt collection in Colorado that can help you get some control back if you are in that situation.

THE FAIR DEBT COLLECTION PRACTICES ACT

The Fair Debt Collection Practices Act, often referred to as the “FDCPA” was passed by Congress to reduce abusive, deceptive and unfair practices by debt collectors and to give consumers affected by that abusive behavior a remedy for violations: cash damages.

The FDCPA applies to debt collectors working to collect debts due to someone other than themselves. This means that the Act does not apply to in-house collections, such as when a department store with whom you have a credit card contacts you directly. There is an exception if the collector uses any name other than his own which would indicate that a third person is collecting or attempting to collect the debt.

WHAT THEY CANNOT DO

Talking to Other People: When contacting a third party (anyone other than you), debt collectors can only attempt to find out where you live and where they can contact you. They must correctly identify themselves, but they cannot tell the third party that they are calling about debt collections. They cannot call third parties if they already know where to find you. They cannot call third parties more than once (unless that person asked them to call back).

Talking to You: Debt collectors cannot contact you at unusual or inconvenient times. This means no calls before 9:00am or after 8:00pm (unless you or a court has authorized times outside of these boundaries). Debt collectors cannot contact you if you are represented by an attorney. Debt collectors cannot call you at work if they know your work does not allow you to receive such calls (tell them this the first time they call!). And very importantly, they have to tell you who they are and, if you ask, who they are working for, and that anything you tell them is going to be used to collect on the debt.

They Must Play Nice: The FDCPA prohibits abusive and (more…)