Jacksonville Bankruptcy Lawyer Blog

Chase has been accused of filing false claims in bankruptcy cases, with allegations that their attorneys have gone so far as to Photoshop documents to increase the ease of obtaining relief from the automatic stay. Those attorneys are purportedly paid from $600 to $1,000 for every relief from stay they obtain. These fees are then added to the bank’s claim to be paid by the debtor.
It’s not just Chase’s lawyers that are alleged to be doing funny business. The institution is also alleged to have falsely collected on Deeds of Trust that they are not the true party of interest on. The declarations of ownership and endorsements come from employees who are purported to be known, “robo-signers”. A copy of the Complaint can be found here.

In 2008 John Ignatius Quinn was declared the richest person in Ireland with holdings worth approximately $6 billion dollars. Now, three years later, he finds himself facing bankruptcy.

Quinn, the son of a small farmer began earning his vast wealth through the Gaelic Athletic Association. From there he went into the concrete business, then hotels, and so on. But Quinn, like many of us in the Western World, is facing severe financial problems.

Unfortunately for Quinn, bankruptcy in Northern Ireland differs from bankruptcy in the Irish Republic. Filing in one country will allow him to resume business in a year, the other can take up to twelve years. Since this will have a profound effect on one of his largest creditors, Irish Bank Resolution Corp., they are fighting viciously to get have the court move his bankruptcy to the twelve year forum. This is similar to our Chapter 7 and Chapter 13 bankruptcies, in that a creditor (or trustee) can attempt to have a case dismissed or converted if it is shown to be improper for the debtor. This is often done only if financially beneficial for the creditor.

Leigh Steinberg filed for Chapter 7 bankruptcy protection last Wednesday in the face of a warrant being issued for his failure to appear in court over a $1.4 million dollar debt owed to a landlord. While Steinberg recognizes that he owes several million to creditors, he claims that since his 2008 divorce, his only assets are stock.

In 1996, Steinberg’s inspiring story was embodied in the classic film, “Jerry Maguire” staring Tom Cruise. However, since the films release, the sports agent has faltered, having faced a divorce and subsequent rehabilitation treatments for his alcoholism. While coming to terms with his alcohol problem, one of his employees took an unauthorized loan from an NFL client. This loan that violated the NFL Player’s Association regulations. That player subsequently fired Mr. Steinberg and signed on with a rival agency -one lead by an ex-Steinberg employee.

Due to a suit against him by a the National Football League Player’s Association (NFLPA), Steinberg cannot be certified by the union. Without certification, he cannot return to the work he does best -representing players. He has struggled with his debts for some time, but it has become apparent that bankruptcy may be the only way he can return to work.

Federal Investigators are pouring over bankruptcy filings across the country having found that banks may have been double-billing those in Chapter 13 bankruptcy for escrow fees. This is strangely reminiscent of the 2011 Countrywide scandal where the Federal Trade Commission stepped in and sent half a million homeowners checks for miscalculated fees except in this case, all of the victims are in bankruptcy. The New York Post‘s analysis shows in excess of $150 million in profits just for cases filed in 2011. Several institutions have been implicated in the matter though the original cases involved Wells Fargo and GMAC Mortgage. One attorney stated that up to 75% of her clients were being double billed.
The scam is perpetrated by charging the homeowner the late mortgage payment which already includes escrow and then charging them a secondary “escrow shortage” charge. The shortage charge not making up for any actual shortage, just being extra cash in their pockets.
Whenever I hear the term, “Bank Robber”, a new image comes to mind. One where the bank is stealing the money and the American Homeowner is the victim.