Creditors – Law Office of Rick Morin, PC

Who is LVNV Funding LLC?

LVNV Funding LLC is a very large debt buyer and collection agency. If you see LVNV Funding on your credit report, read on to learn more about this company.

You Might Owe LVNV Funding Money

Never heard of LVNV Funding? Confused because you have never taken out a loan from LVNV Funding? That does not mean that you do not legally owe them money.

Debt collectors such as LVNV Funding buy up bad debt from other creditors. Once LVNV buys that debt, they can legally collect it from you. This is despite the fact that you don’t have any formal relationship with the company.

Don’t Assume That You are Legally Required to Pay LVNV Funding

Some debt collectors purchase accounts that are too old to legally collect. These debts are past the “statute of limitations.”

However, a debt collector can still legally ask that you voluntarily pay an old debt. The statute of limitations just prevents the collector from legally enforcing the debt in court.

Some people make the mistake of voluntarily paying a time-barred debt. This is a bad idea! Never pay a debt that the creditor cannot legally enforce.

Sued by LVNV Funding? Don’t Panic!

Sometimes debt collectors such as LVNV Funding will file a lawsuit. They are seeking to enforce their debt against the debtor. Ultimately, LVNV Funding wants to obtain a judgment.

With a judgment, LVNF Funding can garnish wages, record liens against property, and levy bank accounts.

Some people panic once LVNV files a lawsuit. Don’t do that! Hiring a lawyer to fight LVNV Funding in court can help prevent judgments, garnishments, and foreclosures. Bankruptcy might also be a good option.

Don’t delay any longer. If LVNV Funding is suing you or already has a judgment, please call my office at (916) 333-2222 to discuss your options.

March 3, 2018/by Attorney Rick Morin

Creditors, Student Loans

National College Student Loan Trust Lawsuit

I help clients with substantial student loan debt all of the time. Of course, there is nothing wrong with student loans. Financing a reasonably priced good education is a smart life decision. However, what happens when a person defaults on their student loans? And who is the National College Student Loan Trust? Read on to learn more.

Student Loan Debt Default

If a borrower stops paying for their student loans, it is said that the borrower “defaults” on the debt. When a borrower defaults on a debt, the creditor can take legal action against the borrower.

In some cases, a student loan creditor can intercept tax refunds. Or in other cases, the lender will file a lawsuit agains the borrower in state court. If the lender obtains a judgment in court, the lender can garnish wages, place liens on property, and even levy money directly out of bank accounts. This is all true for student loan accounts.

However, as the New York Times recently pointed out, not all student loan debt lawsuits are valid.

Who is the National College Student Loan Trust?

The National College Student Loan Trust is one of the largest owners of student loan debts in the country. Most borrowers have never heard of them before until they run into trouble with their student loans.

As the true owner of the debt, the National College Student Loan Trust should be the party with the authority to actually file a lawsuit against the borrower. The New York Times pointed out that the National College Student Loan Trust has run into significant trouble proving that they actually own some student loan debt.

This gives borrowers an opportunity to contest these student loan lawsuits. Only the true owner of the debt has the ability to file a lawsuit against a borrower. If the plaintiff in a lawsuit cannot establish their ownership interest over the account, they cannot win the lawsuit. That is, if the borrower fights back in court.

What to do if you are sued by the National College Student Loan Trust

If you are sued by the National College Student Loan Trust, don’t panic. As discussed above, you may have some valid defenses against the lawsuit. However, it is important that you take action fast. Most borrowers do not even appear in court in these lawsuits. This means that the lender can win the case automatically.

You should contact a lawyer immediately if you are served with a debt lawsuit. If you wait too long, you will forever lose your right to defend yourself in court.

August 1, 2017/by Attorney Rick Morin

Bankruptcy Law, Creditors, Local Bankruptcy News

Sued by Sheri Carello Bankruptcy Trustee?

Sacramento Bankruptcy Lawyer Rick Morin Not everybody knows that a significant amount of litigation occurs in the bankruptcy courts in Sacramento. I represent both debtors and creditors in these “adversary proceedings.” Have you been sued by Sheri Carello? Below is some important information for you to consider.

Why am I Being Sued by Sheri Carello?

Sheri Carello is a Chapter 7 bankruptcy trustee in Sacramento. The bankruptcy court assigns her to oversee Chapter 7 cases on a random basis.

Ms. Carello represents the interests of the creditors in bankruptcy cases. She can take legal action against individuals and entities when she believes that she can recover money or property for the benefit of creditors in a bankruptcy.

While it might appear that Ms. Carello is suing you under her own name, she actually is suing on behalf of the bankruptcy estate to which she has been assigned. If you are sued by Ms. Carello, it is important to note that it is not personal. She is just doing her job and following the bankruptcy rules and laws to maximize the recovery for the creditors.

You Have Limited Time to Respond to the Complaint

An adversary proceeding in the bankruptcy court is started by the filing of a formal complaint. The complaint will be assigned its own independent case number. But the case will be attached to the underlying bankruptcy proceeding.

In the Eastern District of California, a defendant in an adversary complaint has just 30 days from the date the summons is issued to respond to the complaint. This is different than most other court procedures. Usually the defendant has a certain amount of time to respond after the complaint is served. In the bankruptcy court, the clock starts ticking once the summons is issued by the court itself.

Bankruptcy procedures are usually more streamlined than procedures in other courts. This is why there is a tighter deadline for a defendant to respond. In any event, don’t miss your 30 day window. Failing to respond to the complaint will mean that the defendant automatically loses the adversary.

Bankruptcy Litigation is Very Similar to District Court Litigation

Some people incorrectly assume that an adversary proceeding in the bankruptcy court isn’t very important. This could not be further from the truth. Both the federal rules of evidence and federal rules of civil procedure apply. In some cases, these rules are modified by the bankruptcy rules. For the most part, any federal litigator will feel right at home in the bankruptcy court.

In most cases, the bankruptcy courts can try matters to a final resolution, issue judgements, and can even sanction parties.

Have you been sued in a Bankruptcy Court adversary proceeding? Call my office at (916) 333-2222 to discuss your legal options. Don’t delay.

July 5, 2016/by Attorney Rick Morin

Creditors, General Debt

Three Surprising Facts About Credit Card Lawsuits

Sacramento Bankruptcy Lawyer Rick Morin Many of my bankruptcy clients were at some point sued by a credit card company. These lawsuits often go unanswered and result in large judgements. Judgements then turn into wage garnishments. Here are a few interesting facts about Credit Card Lawsuits in Sacramento.

1. You Don’t Need to be Personally Served

People tend to move around. Credit card companies know this. When they go to serve you with a collection lawsuit, they aren’t required to go to the ends of the earth to find you.

Generally, you must be personally served with a lawsuit. However, there are certain rules that allow a lawsuit to move forward despite non-service of the plaintiff. This is why “ducking” service is not always effective.

If you later discover that you were sued and never received a copy of the summons and complaint, there still might be time to unwind the judgement. This process is not easy and it can be expensive. Given the amount of the judgement against you, it may make sense to try to set aside the default. Definitely talk to a lawyer.

2. Judgements are Negotiable!

I like to say that everything in life is negotiable. This is even true of a judgement. Credit card companies and their collection agents will try to tell you that they will not negotiate on a judgement. This is absolutely not true.

If bankruptcy is not a good option for you, try to negotiate the judgement down. Creditors are receptive to offfers, especially if you can make a lump-sum offer to pay off the account.

If you do reach an agreement with a creditor, ensure that you get it in writing. Some unscrupulous collectors will bait you into paying less than full value, and then turn around and ask for more. If you need help making sure your offer is binding, contact an attorney.

2. Judgements Last Forever

A money judgement in California is good for ten years. Judgements also accrue interest at the statutory rate of 10% per year. At the end of ten years, a judgement creditor can apply to the court to renew the judgement. The renewed judgement will be good for ten years, and so on.

As you can see, judgements just don’t go away on their own. They can literally last forever as long as the creditor takes appropriate action. Don’t just ignore a judgement. Tackle the issue now before it gets worse down the road.

I help people in the Sacramento area resolve judgements and other debt issues. Bankruptcy may be an option for you. Please call my office at (916) 333-2222 to discuss bankruptcy and non-bankruptcy options to resolve your judgements.

June 20, 2016/by Attorney Rick Morin

Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Creditors

Forgot to List Creditor in Bankruptcy

Sacramento Bankruptcy Lawyer Rick Morin To be successful in bankruptcy, full and complete disclosure of your debts is required. This isn’t always possible. But there is good news. You can amend your bankruptcy to include a forgotten creditor.

Try to Disclose All Debts at Time of Filing

To the maximum extent possible, list all of your debts on your bankruptcy petition the first time. The court will send notifications to each of these creditors. The initial notification is very important. It tells creditors about your bankruptcy case. The initial notice also contains important deadlines.

If a creditor is not listed at the time of filing, they will not receive the initial notice of your bankruptcy. If the unlisted creditor takes action against you, it wont necessarily be their fault.

Consequences of Not Listing a Creditor

As discussed above, not listing a creditor can create some problems. The first one is obvious. The creditor might not ever find out about your bankruptcy. This means that the creditor might not take appropriate steps to prevent further collection activity against you.

In some cases, an unlisted debt may not be excused by the bankruptcy court. This means that you could emerge from bankruptcy still owing one or more creditors money. This would be a very unwelcome surprise at the end of a bankruptcy proceeding.

What to do Next

If you discover that you forgot to list a creditor on your initial bankruptcy paperwork, contact your attorney. You should do this as soon as possible. There are steps that can be taken, including amending your bankruptcy paperwork, to fix this problem.

If the unlisted creditor is not discovered until after your bankruptcy case is over, again I would advise you to contact your bankruptcy attorney as soon as you can. In certain circumstances, you may need to take additional action. In other cases, nothing else is required because of a unique feature of bankruptcy law in the Ninth Circuit.

I am a bankruptcy attorney in Sacramento, California. Please call my office at (916) 333-2222 if you have questions about bankruptcy proceedings in Northern California.

May 18, 2016/by Attorney Rick Morin

Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Creditors

Continued Garnishment After Bankruptcy Filing

Sacramento Bankruptcy Lawyer Rick Morin One of the most powerful provisions of bankruptcy law is called the “automatic stay.” The automatic stay prevents your creditors from taking action against you once you have declared bankruptcy. But what happens if you have a continued garnishment of your wages even after you file for bankruptcy?

By law, your creditors are required to cease all collection activity immediately upon the filing of your bankruptcy case. For my clients that have wage garnishments or bank levies, I always send a notice to the creditor once the bankruptcy is filed. This is followed up by the official notification sent from the United State Bankruptcy Court. The official notice usually goes out about a week after filing. By doing this, it will be difficult for the creditor to say that they never received notice of the bankruptcy.

Not all creditors take appropriate action after receiving notice of a bankruptcy. Some creditors are lazy. Some creditors just don’t care. Some creditors are just too big and the bankruptcy notification gets lost in the shuffle. No matter the excuse, the result to the bankruptcy filer is the same — continued collection activity even after the bankruptcy.

Any post-filing collection activity can be sanctioned by the bankruptcy court. In most cases, I make an attempt to reach out to the creditor to remedy the problem. If the creditor is not responsive, I can file a motion with the bankruptcy court to sanction the creditor for its willful violation of the automatic stay.

If the conduct of the creditor is egregious, the court will often issue a penalty against the creditor. Yes, you read this right. In some cases, you can recover money from a creditor that flouted the bankruptcy rules!

Bankruptcy laws are written to protect both debtors and creditors. My clients always play by the rules, but not all creditors do. I have personally gone after creditors that haven’t followed the rules and won judgements in my client’s favor.

Don’t delay any longer. Call my office at (916) 333-2222 to discuss your bankruptcy options.

February 21, 2016/by Attorney Rick Morin

Chapter 7 Bankruptcy, Creditors

Chapter 7 Bankruptcy Dismissed Credit Report

Sacramento Bankruptcy Lawyer Rick Morin On occasion I will get a call from someone that filed their own bankruptcy without an attorney. For one reason or another, the bankruptcy case didn’t fly and was dismissed by the court. The question is usually this: how do I remove the dismissed bankruptcy from my credit report?

The short answer is “you can’t.” Credit report agencies will likely still report that you declared bankruptcy, including the filing date and also the disposition of the bankruptcy case. In my experience, whether the bankruptcy resulted in a discharge or a dismissal doesn’t matter to the credit bureaus.

This is important. A bankruptcy filing will impact your ability to obtain credit in the short term. I usually advise my clients that the main impact on creditworthiness is during the first two years after filing Chapter 7 bankruptcy.

However, the results can be worse for a person with a dismissed bankruptcy. Not only do they get “negative points” for having a bankruptcy on their record, but they didn’t receive any of the benefits of a bankruptcy discharge. In this way, they are a worse credit risk than a person that was successful in Chapter 7 bankruptcy and obtained a discharge.

Think about it this way: a bankruptcy discharge can in fact be a positive factor for a potential creditor. A discharge means that you do not have as many obligations for your monthly income. A person with a fresh start will be able to better handle any new debt extended to them after a bankruptcy.

The deciding factor for a creditor evaluating a post-discharge debtor for new credit will squarely fall on this: what has the debtor done since receiving a discharge? Have they fallen into bad habits, or are they showing that they can handle their finances appropriately?

My main point is this: if you’re going to go through the trouble of declaring bankruptcy, make sure that you do it right the first time. If you are having trouble deciding whether or how to file bankruptcy, you should consult with an experienced Sacramento bankruptcy attorney for assistance.

Please call my office at (916) 333-2222 for a friendly bankruptcy consultation. My law firm can help guide you through the difficult bankruptcy process from start to finish.

December 14, 2015/by Attorney Rick Morin

Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Creditors

What To Do If a Creditor Contacts You After Bankruptcy

Bankruptcy Creditors You’re done with your bankruptcy! Congratulations on achieving a fresh start on your finances. Now you need to start rebuilding your credit. But wait: a nefarious creditor has started contacting you about one of your pre-bankruptcy debts. What To Do If a Creditor Contacts You After Bankruptcy?

There are a few reasons why a pre-bankruptcy creditor might try to contact you after your case has been discharged. It could be an innocent mistake. You should inform the creditor that you declared bankruptcy and already received your bankruptcy discharge. The creditor will likely want to know your bankruptcy case number for their records. While technically contacting you after your debts have been discharged is illegal (mistake or not), as long as the creditor stops bugging you it’s not that big of a deal.

However, not all post-bankruptcy contact is a result of an innocent mistake. Some creditors are sloppy with their handling of bankruptcy cases and habitually violate bankruptcy law by contacting debtors. In these cases, my office is very aggressive about making sure that the creditor fixes these mistakes.

Other creditors actually intend to violate bankruptcy law and pursue debtors after discharge. They hope that a debtor isn’t familiar with post-bankruptcy laws and they try to trick debtors into paying back a debt. Others will put incorrect items on a debtor’s credit report at an inopportune time, and will demand payment to take the credit item off of the report. These activities are highly illegal and the bankruptcy courts have the power to order sanctions against devious creditors. Placing incorrect items on a credit report is a violation of federal law and gives rise to additional legal claims against a creditor.

I advise all of my clients to be vigilant during and after their bankruptcies for illegal conduct by their creditors. In some cases I can bring legal action against these creditors and obtain damages for the client!

Don’t ignore post-bankruptcy communications from your creditors. Contact me at (916) 333-2222 if you suspect that a creditor is harassing you or ignoring your bankruptcy discharge.

November 2, 2015/by Attorney Rick Morin

Chapter 7 Bankruptcy, Creditors, General Debt

Online Loans Are a Fast Track to Bankruptcy

Sacramento Bankruptcy Lawyer Rick Morin I have been seeing more and more clients with large debts from online loan companies. These loans are proving to be toxic and a fast track to the bankruptcy court.

In a financial jam, a quick infusion of cash might seem like just what the doctor ordered. And in some cases, this is absolutely true. But before accepting a loan, you must first determine whether the terms of the loan are going to cause more pain than they are worth.

Spurred by incessant advertising on TV and the internet, many of bankruptcy clients have at least one unsecured loan through a payday loan company or online lender. These loans carry interest rates in excess of 100% per year. At such a high interest rate, it is nearly impossible for these clients to ever actually repay the loan. I am quite frankly surprised that these abusive loans are even legal — but they are.

The terms of these loans are not the end of the problems either. Most of the loans require the debtor to authorize the lender to automatically withdraw loan payments directly from the debtor’s checking account. In some cases, these payments are scheduled once a week. And because the interest rates on these loans are so high, these payments don’t actually make much of a dent in the principal balance owed to the lender.

Taking out these high-interest loans is typically a desperate move to stay afloat. But no one should have to borrow money on such outrageous terms. Once the online lender starts deducting money each week from a person’s checking account (often putting them negative), the next step is usually a call to my office for bankruptcy.

Bankruptcy can get you a fresh start with your finances. I can get you out of the never-ending cycle of predatory payday and online loans. If you find yourself depending on these toxic financial products to get by, you probably already know that bankruptcy is the real solution to your debt issues.

Please call my office at (916) 333-2222 to discuss what bankruptcy can do for you. You will be surprised by how quickly and easily my office can help rein in your financial issues.

September 27, 2015/by Attorney Rick Morin

Creditors, General Debt, Local Bankruptcy News

SB 308 Bankruptcy Exemptions Failed to Pass

California State Capitol in Sacramento

I have been watching Senate Bill 308 quite closely. The bill would have modernized California’s bankruptcy exemptions to allow debtors additional tools to protect their assets from the reach of creditors. Unfortunately, SB 308 failed to pass this year.

The first half of the 2015-16 California legislative session came to a conclusion on Friday, September 11. All bills headed to the Governor for his signature or veto must have been approved by both the Senate and Assembly by this deadline.

SB 308 started off as a strong effort to modernize California’s bankruptcy exemptions. The bill passed numerous tests, including several committee and floor votes. Along the way, the bill was amended several times to reduce and revise the proposed changes to California exception laws. While SB 308 was not as strong as it was when it began its life in the Senate, the bill still had plenty to offer California bankruptcy filers.

The bill ultimately stalled on the Assembly floor. The bill was generally opposed by Republican legislators and supported by Democrats. Republicans hold such a minority position in the Legislature that their support for the bill wasn’t ultimately needed. So it was a handful of democrats that kept the bill from passing. These democrat legislators didn’t outright vote “NO” on the bill. They instead “took a walk” and did not vote either way. In fact, over 20 legislatures failed to cast a vote on SB 308’s final floor vote in the Assembly.

The bill was strongly opposed by the California Bankers Association and the California Association of Collector. Both groups represent the interests of huge banks and debt collection firms. It is no surprise that they would oppose SB 308.

SB 308 isn’t totally dead. Senator Wieckowski can revive the bill in the second half of the legislative session in 2016. Or he could start fresh with a new proposal altogether. But for now, California exemption laws will remain the same.

If you have questions about Chapter 7 or Chapter 13 bankruptcy, please call my office at (916) 333-2222.

September 14, 2015/by Attorney Rick Morin