How Much Can our Bankruptcy Clients Handle?
As a courtesy, I am posting the following anonomously, this is a concern expressed by a well-respected, bankruptcy attorney in the field.
[As as a bankruptcy attorney - with the law change approaching]---just how much can my clients really handle---remember I live in Arkansas.
BARF is a burden shifting federal statute. It shifts the burden of creditors keeping and providing records to the debtor---and the courts seem to support this burden shifting---just look at all the BR 3001(c) decisions.
It shifts burden of collecting child support from the state to the ch 13 trustees, it shifts the burden of getting accurate tax info from the IRS filing a POC to the debtor getting that info from the IRS---and analyzing it. It shifts the burden of verifying the petition info from the trustees to debtor counsel, it shifts the burden of regulating the practice of law in BK from state bars to the EOUST.
Now I've got to deal with all this because it is in a federal statute, that trumps state laws and the Arkansas constitution. Obviously the sinister motive behind BARF was to make BK so complicated that it becomes so expensive that most clients will not be able to afford legal counsel, and legal counsel will not be able to afford to provide competent legal counsel for fees the public can pay.
That drives folks to be pro se or use WTP. Then since there is no way they can possibly comply without legal counsel, they will get dismissed, then they can't refile and keep the stay in place, and they will wind up in state court where we know the ignore summons, get DJs, and foreclosed on, and the repo just happens.
However, I'm not sure the creditors are going to like what they have created, as BARF is a very good example of how creditors really don't like each other---it's all about the money---theirs. I really don't see MBNA being real happy about their $20k DJ going down the tubes, when Countrywide forecloses, and avoids their lien by adding a bunch of bogus charges, and Ford repossessing the car so there is nothing to execute on, leaving only garnishment in those states that allow garnishment.
Then folks won't have enough money to pay rent or utilities, and any checks they write will bounce when MBNA wipes out the bank account. Since they won't be able to make those checks good, they will be prosecuted, and fined.
They won't be able to pay the fines because MBNA is still garnishing, so they will go to jail and lose their jobs, and MBNA will then really be down and out.
At that point, filing BK will be the ONLY solution to being able to live and have a job, and it will be relatively simple, no job, no bank account, no house, no car, won't have to pay for credit counseling, can waive the filing fee, and legal services will be doing the paperwork on the taxpayer's dime.
Then we get all the stay violation work, and the creditors have to give back all the money they garnished, which our clients can use as a down payment on their government back loan to buy one of those foreclosed houses and repossessed cars that are glutting the market. And, not to worry about health care, at this point they all qualify for a Medicaid spend down which we the taxpayers will pay for.
This was a superior article that hit some important points right on the head. This is one of the few attorneys that see the "big picture."