Bankruptcy And Settlements

I am not a lawyer, I am the nation's only Judgment Broker. This article is my opinion, and not legal advice, based on my experience in California, and laws vary in each state. If you ever need any legal advice or a strategy to use, please contact a lawyer.

Settling a judgment means that a judgment debtor and the judgment owner reach a compromise to satisfy their judgment for an amount that is less than the full (often theoretical) amount owed.

The advantages for the creditor are that they save time, money, and hassles; because conventional judgment recovery is not easy or cheap. The advantages for the judgment debtor are that they save hassles and money, because they get the judgment against them satisfied quickly, by paying much less than the total amount owed.

Settlements between judgment owners and debtors can happen anytime, however it usually takes a long time. In the beginning, the debtor often thinks they will never have to repay the judgment, and the creditor thinks their judgment is guaranteed and will be easy to recover in full. Settlements are almost always between those two boundaries.

Sometimes differences are settled, before a cause of action is brought to court. Some settlements are reached while legal proceedings are progressing in court. Other settlements are reached after the judgment is final.

Settling judgments is a good idea, because most judgments are never recovered. Getting 50% of what is owed is a lot better than getting 100% of nothing. Settling can be the easiest way to recover a judgment.

It does not matter who starts a settlement discussion, what matters is that both sides are honest and quickly follow up on their obligations. The debtor pays the creditor, the creditor then satisfies the judgment. With any negotiation, there is a chance that with some give and take, both parties can find a way to reach a settlement agreement that is a win-win.

Many times, settlements are impossible because either debtors are merely trying to trick the creditor, or the creditor refuses to understand that judgments are not cash (and will not compromise), or that the debtor is not willing or able to pay enough to make a reasonable settlement offer.

Post-judgment, there seems to be no such thing as a Judicial Council judgment settlement form. Most settlements are crafted by attorneys for each unique settlement situation. The terms and conditions of settlement agreements are hammered out among the parties or their representatives. The success of any settlement negotiation hinges on both parties believing that settlement is best for them both.

Most settlement agreements are long and complex, however they do not need to be. No matter how solid a contact is, it is only as strong as the weaker of the two sides signing it. After all, most of the time, the judgment debtor cheated the creditor in some way, which was the cause of the lawsuit and/or judgment.

Settlements are contracts that usually mean very little, until the payment transaction is successfully completed. If the creditor defaults on their contractual obligation, it will be easy for the judgment debtor to sue them and get a new judgment against the creditor.

If the judgment debtor defaults, the creditor gets burned, because they do not get paid, and because their good-faith agreed settlement amount may (debatably) become the new amount the creditor could claim as being owed in the future, especially in a bankruptcy or appeals court. Some settlement agreements include provisions stating that if the judgment debtor defaults or files for bankruptcy protection, the original amount still stands, and will be enforceable.

Sneaky judgment debtors often agree to settle, and sign a settlement agreement, however they do not actually pay the creditor. Creditors should never satisfy a judgment until the funds clear. It is usually a good idea to meet your judgment debtor at their bank, and watch them get the cashier's check to pay you.

To fulfill a judgment settlement agreement, the debtor must pay the creditor, not pull any tricks, and not go bankrupt soon after paying the creditor. The creditor must satisfy the judgment after payment is secured.

What if the judgment creditor gets paid, cashes the check, waits until it clears, satisfies the judgment; and then the debtor files for bankruptcy protection? The "Achilles' heel" of a settlement agreement occurs when the debtor pays the creditor, and then files for bankruptcy protection. The typical bankruptcy look back period is within 90 days after the creditor gets paid.

Making settlement agreements bankruptcy-resistant is beyond the scope of this article. Consult with a lawyer, and search on the web for "How to Bankruptcy-Proof Your Litigation Settlement Jerrold S. Kulback".

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Common Legal Support Services: Questions and Answers

No trial or deposition can be completed without the use of court reporters. Over the years, the development of new technology has drastically changed the way that these professionals complete their job. Whether you are a law firm, an insurance company, or a corporation, you will be looking for a firm that provides local, responsive legal support services for your next case or deposition. If you are not up to date on modern offerings, you will have some questions, and this article should address them.

Historically, what has a court reporter done?

Traditionally, these professionals served as a stenographer at hearings or depositions, taking note of all verbal exchanges in a process called recording, then converting the record into a written form in a process called transcription. While earlier court reporters used typewriters or stenograph machines, today they have many additional options for recording verbal exchanges.

How do they record discussions today?

There are several methods used today by companies that offer legal support services. Electronic reporting involves using a system of speakers and audio equipment to capture quotes. The professional oversees these devices, and takes note of who is speaking at what time, for easy transcription of the sound files. Voice writing involves the use of a voice silencer, which is a hand-held mask that contains a microphone. When speaking into the voice silencer, the court reporter will not be heard by anyone else in the room.

More advanced methods of recording have incorporated video equipment. Some court reporters will set up and monitor video equipment, and then transcribe the conversation by reviewing the footage. If asked by a client to do so, they can also set up an online video stream of the proceedings so that off-site participants can view everything in real time. A more affordable alternative for legal support services will entail providing clients with a password to access a secured program where real-time reporting is published.

How do they transcribe discussions today?

Usually the court reporter, or an assistant, will take the recorded notes and type them up so that a written record exists. This process used to take a long time, but has also been improved with technology. In many cases a firm will offer expedited delivery for a higher rate. If a firm opts to have the proceedings recorded on video, court reporters have the ability to add text captions, as many of these professionals will also be contracted out to provide closed captioning for television viewing.

What kind of firm should I look for when evaluating legal support services?

In addition to the availability of the modern offerings mentioned above, there are a number of factors to consider when looking for a firm that will best meet your needs. The firm should have enough court reporters available to assign an individual or group that works only for you. The firm should be asked to provide references, to prove that their reporters are accurate, quick, and professional. Also, some firms offer on-site conferencing and production facilities for their clients to use. For best results, one should find a firm that offers enough legal support services to tailor a plan specifically to their needs.

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Mistakes to Avoid When Being Sued by Credit Card Company

If you are one of the thousands of debtors being sued by a credit card company for unpaid debts, it's important to remember what you should NOT do when you are dealing with your creditor in court. In this article, we will discuss some of the most common mistakes debtors make when being sued by a credit card company:

Ignoring The Summons

Ignoring your problems will not make them go away and ignoring court-ordered notices will certainly prove to be one of the most expensive mistakes you will ever make. Junk debt buyers and collection agencies expect delinquent debtors to not respond to the summons and ignore the problem until they receive a default judgment by the court for the lack of response from the defendant (that's you). This will give them the right to access your banking, employment and personal information, freeze your savings, garnish your debts or even put liens on your assets. So when being sued by your credit card company, make sure to respond accordingly within the given period by the court.

Not Monitoring Your Credit

Many creditors will try not to use the Sherriff to serve the summons and instead, will use a special process server so the debtor will either not receive the summons at all or won't have enough time to answer the summons. Other creditors will sit on the judgment and wait for years to execute on it through a surprise wage attachment. For this reason, it is important to keep an eye on your credit to prevent any of these from happening.

Not Familiarizing Yourself with Local Court Rules

Note that different courts across the country have different guidelines and procedures. Regardless if you plan on hiring an attorney or defending yourself Pro Se, you need to check with local court rules. One of the most important court rules when being sued by credit card company is to determine how much time you are given to answer the summons (20 days in most states). This information is something that many creditors will conveniently left out so to be on the safe side, always check with court rules in your state when being sued by credit card company.

Are you being sued by your credit card company for unpaid debts? If you are one of the thousands of Americans facing credit card lawsuit, it's important to get informed to build your case, defend yourself in court and win your case. You'd be surprised at how easy it is to defend yourself Pro Se.

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Can the Government Legislate to Punish a Specific Individual?

During the 16th and 17th centuries the British Parliament often employed enactments court bills pertained to inflict the death penalty on persons deemed guilty of seditious acts, such as attempting to overthrow the government. In addition to the death sentence, debilitating the usually carried with it a corruption of blood which meant that the attained parties property could not pass to his heirs. If the bill imposed punishment short of death, such as banishment, confiscation of goods or loss of the right to vote, it was called a bill of pains and penalties against persons deemed guilty of disloyal to the American cause.

Article 1, section 9, clause 3 of US Constitution forbids the Federal government from passing bills are attained. The same prohibition is imposed on the states by article 1 section 10, clause 1. US Supreme Court decided at an early time without argument that these two clauses covered bills of pains and penalties as well of bills of attained a proper. Although this conclusion is not compelled by the language of the Constitution, it becomes entirely persuasive when the purpose of the prohibition is considered. Both bills of attained and bills of pains and penalties of legislative acts that inflict punishment without judicial trial.

Regardless of whether the punishment decrees death or something less than death, such enactment slightly principle is deeply embedded in the constitutional structure. The Constitution separates the judicial power from the legislative power. Legislative bodies are supposed to act general rules, applicable to all persons or certain classes of people which grant rights to them or impose duties prohibitions or disabilities on them. It is a function of the judicial branch to decide on the structure procedures containing safeguards against error and abuse of power whether a specific person is entitled to a right was subject to a duty prohibition or disability established by the legislature. Bills are attained and bills of pains and penalties are thoroughly at odds with these principles. They inflict punitive sanctions in disregard of judicial methods of proof designed to ensure fairness in fact-finding. History bills are attained has also shown that the passages often induced by popular passion or motivated by unproven suspicions.

In the context of the bill of attained the clauses of the Constitution, the concept of punishment has not been restricted by the courts to the typical sanctions employed by the system of criminal justice such as capital punishment, imprisonment, punitive fines and confiscation of property. The bill of attained a clauses have been broadly construed to include deprivations of rights, civil or political, disqualification from office and legislative past participation in specific employment or professions. Essential to a finding of attained is a determination by the court that it was still it was the legislatures intent to punish rather than to regulate for a legitimate political purpose.

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Credit Card Lawsuit: Dealing With Junk Debt Buyer's Admission Request Lawsuit

During the discovery phase of a credit card lawsuit, you are bound to receive a series of questions you need to answer, including Request for Admissions, a set of statements that the plaintiff will ask you to either Admit or Deny. Just like Interrogatories and Request for Documents, you are given a certain amount of time to answer them otherwise; your creditor will win the credit card lawsuit by default judgment so make sure you submit the necessary response within the given time frame!

Your creditor expects you to not answer the Request for Admissions on time! If you failed to answer on time, the creditor will file for Motion to Deem Admissions Admitted, meaning you automatically admit to all allegations set by your creditor! But this works both ways, if your creditor did not answer the Request of Admit Facts on time, you too can file a Motion to Deem Admissions Admitted.

If say, you did not sent your Request for Admission on time and your creditor filed a Motion to Deem Admission Admitted and the motion is granted, the creditor will win the credit card lawsuit. Even if you are late, you can still file the documents, state your reason for the late filing, and pray that the court will give you more time to finish the Request for Admission.

It's important that you check with your state's local court rules to determine how much time you have to answer any documents and draft an answer as soon as you receive any documents that requires it or else, you will lose the credit card lawsuit and pay for all debt amount, including interest, penalty chargers and your creditor's legal fees!

Dealing with a junk debt buyer, as opposed to the original credit card company, can be a slippery slope because junk debt buyers will try to use the same Admissions to all debtors under and most of these questions do not have anything to do with the case at all. These questions are often sloppy, then don't make sense and junk debt buyers do not even care to correct them.

The good news is, as long as you are two steps ahead of these slime balls, you can win the credit card lawsuit. It all starts with giving the right answer ON TIME. This will ensure you that the other party will never win the credit card lawsuit by default.

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Do Laws Apply to the Internet?

Last week, I was giving much thought to a Social Media topic that would do more than just fulfill an obligation to myself to publish a new post each week. Sure, I could share some useful tips for businesses looking to leverage the full power of Social Media Marketing. After all, most business executives are interested in learning how to increase sales revenue through the use of the latest and greatest online strategies and tactics. I also wonder how many business owners are fully aware of the irreparable damage they may be doing to our society by using Social Media, inappropriately and - in some ways - distastefully.

I ask corporate CEOs to carefully consider the following questions. If Twitter controlled the life support function for hospitalized people, should an insurance company manipulate its functions to put some terminal people out of their misery to reduce costs? If Facebook allowed your real estate company to put a family out of their home so that you could buy it cheap, would you ever exercise that option? If Social Media were a gun, would you point it at a stranger and pull the trigger if it benefited you in any way? These are valid questions for those allowing profit and loss statements to obscure matters of common decency.

You may be reviled by the shear mention of such thoughts, but apparently, there are a growing number of employers, who are willing to force strangers to open up their private lives for hiring consideration scrutiny. If you as a business leader are able to reconcile such an action; you probably think it is fine to invade a person's right to privacy simply to satisfy one company's curiosity about what he or she does during their own spare time. Are you saying that a business entity is entitled to own one's personal life along with the work he or she provides during paid work hours? Exactly where does this right come from? It's not in the Constitution.

Since When Did We Need to Invade Personal Privacy Rights to Consider Someone for a Job?

It used to be that employers carefully screened resumes, thoroughly interviewed candidates, and professionally conducted criminal background checks and drug screens to determine the suitability of job applicants for hire. Most trained human resources professionals also relied on their gut to determine who got hired and who did not. Is all this no longer enough to make an educated employee selection? Whatever happened to an employer's right to discharge unsatisfactory employees during his or her initial period of employment, "At Will"? Is this not enough of a failsafe mechanism to insure and protect quality performance in the workplace? It has been such for many past decades. What has changed?

Yes, there are many individuals, who place their lives online for public view - without placing any viewing restrictions. This is a free choice that some people exercise. In these cases, employers are welcome to see what the user has deemed public information with no special permissions. However, no one really has the right (except - perhaps - for legal authorities) to see restricted information that is locked away from public scrutiny by password protection. No employer or anyone else has the right to make unlocking their personal information an absolute condition of employment.

Credit Scores Were Intended for Car Buying and Not Job Getting

What is going on in human resources these days? These are some of the same people that have also had the chutzpah to request credit checks on all those applying for jobs including even those not being considered for positions involving collection and disbursement of company funds. Credit checking used to be reserved for bondable employees, period. That made perfect sense to avoid embezzlement and company theft of funds. Checking everybody's credit does not make any sense. Not when you consider that many unemployed people have fallen behind and must have a job in order to feed their families.

Here is the dilemma. We don't place people in double jeopardy in the American court system, so why are we punishing people twice by denying them a living by making them unemployed and then keeping them from a new job offer because they are already the economic victims of unemployment? Some companies are placing recruiting ads that say "currently unemployed people need not apply." This is all cruel and unusual punishment. What has inspired such a total lack of regard for our fellow Americans, just want to collect a fair wage for a fair day's work? Why all these new hoops to jump through?

America is Fighting Back with a Loud and Strong "It is None of Your Business"

Fortunately, the American people are not sheep and are fighting back. California lawmakers have voted to block employers from using consumer credit reports when they are deciding whether to hire workers for most jobs. They have stopped the use of credit checks in hiring, except for managers, law enforcement, financial jobs and certain other positions that handle valuable items or information.

The bill's author, Democratic Assemblyman Tony Mendoza of Artesia, says credit checks often are inaccurate and hurt minority and female job seekers. Opponents say they are a useful tool for employers assessing the integrity of job candidates.

A credit report is not a good indicator of a person's trustworthiness or work ethic," says Mendoza.

"Consider the condition of the economy and the negative effect these circumstances can have on a person's credit - a credit report is an unfair lens through which to view job applicants," he says. "Preventing someone from becoming gainfully employed due to a poor credit history is shameful," says Mendoza.

No, You May Not See My Personal Information

Regarding this newest attack on personal privacy, it was Facebook firing the first shots in a battle that promises to end in the US courts. In a blog dated March 23, 2012, Erin Egan, Facebook's Chief Privacy Officer, responded to recent news reports of employers "seeking to gain inappropriate access" to the social media profiles of job applicants and employees. She also said that Facebook would "take action to protect the privacy and security" of users and consider "initiating legal action" where appropriate.

Those anti-employer sentiments were also summed up by members of Congress, recently.

"Employers have no right to ask job applicants for their house keys or to read their diaries - why should they be able to ask them for their Facebook passwords and gain unwarranted access to a trove of private information about what we like, what messages we send to people, or who we are friends with?" asked New York Senator, Charles Schumer.

"In an age where more and more of our personal information - and our private social interactions - are online, it is vital that all individuals be allowed to determine for themselves what personal information they want to make public and protect personal information from their would-be employers. This is especially important during the job-seeking process, when all the power is on one side of the fence. Before this disturbing practice becomes widespread, we must have an immediate investigation into whether the practice violates federal law - I'm confident the investigation will show it does. Facebook agrees, and I'm sure most Americans agree, that employers have no business asking for your Facebook password," says Schumer.

Employers: You Won't Sell to People You Have Taught to Despise You

No. A line must be drawn in the sand now regarding privacy. Employers are looking to take a mile since the Web may have it to give. In doing this, they are not only attacking our civil liberties; they are hurting themselves in the long run. If they limit people's freedoms in social Media, they are also limiting peoples trust in this medium and discouraging its use. If business people want to get more conversions (sales) from Social Media Marketing, they need to show more respect for the trust and integrity that Social Networking must develop in order to make doing business over the Web viable and profitable.

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