Matt Leichter, Author at Bankruptcy Attorney in Brooklyn, New York

CFPB and N.Y. Attorney General Go After Vast Debt Collection Scheme

Credit cards, Creditors, Debt, Scams / By Matt Leichter

The Consumer Financial Protection Bureau (CFPB) and the New York Attorney General filed a complaint against a debt collection agency based in Buffalo, N.Y., for deceiving millions of consumers. (Surprisingly, many debt collectors make Buffalo their home.) Two men operated three companies, Northern Resolution Group, Enhanced Acquisitions, and Delray Capital, and up to 60 related …

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‘Judgment Proof’ Debtors and Bankruptcy

Bankruptcy, Chapter 7 Bankruptcy, Credit cards, Creditors, Debt / By Matt Leichter

Creditors sometimes characterize debtors as “judgment proof,” but what does this mean and why does it matter for debtors considering New York bankruptcy? As an answer to the first question, “judgment proof” isn’t a legal term; it’s made up by lenders. It means that even though the creditor has a judgment against a debtor, the …

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New York Fed Sheds Light on New York’s ‘Community Credit’

Debt / By Matt Leichter

A few months ago, I wrote about a study by the Federal Reserve Bank of New York on household debt and credit that found New York City homeowners struggle more than the national average. In late October, the New York Fed published a similar tool showing the country’s “community credit,” which is its relatively new …

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Post-Petition, ‘After-Acquired’ Property in Chapter 13

Chapter 13 Bankruptcy, Exemptions, Trustee / By Matt Leichter

Most New York bankruptcies are chapter 7 cases, and debtors don’t need to worry about property acquired after the case is filed. Section 541(a)(5) of the Bankruptcy Code governs “after-acquired” property, and limits it to three post-petition assets that can be roped into the bankruptcy estate if debtors acquire them within 180 days of filing. …

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Unperfected Liens: Clear Advantage in Chapter 11, Tougher in Chapter 13

Bankruptcy, Chapter 11 Bankruptcy, Chapter 13 Bankruptcy, Debt, Trustee / By Matt Leichter

I’ve written about how debtors can avoid liens in New York bankruptcy when they impair their exemptions, but trustees can avoid liens against debtors’ assets too, thanks to section 544 of the Bankruptcy Code. Of particular value to some debtors is the trustee’s power to avoid liens that creditors improperly recorded—also described as “unperfected.” It …

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Is That Second Mortgage Really Underwater?

Bankruptcy, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Debt, Mortgage / By Matt Leichter

That’s a question a New York bankruptcy lawyer should ask whenever a debtor seeks to strip a lien off an (allegedly) underwater junior mortgage in a chapter 13 bankruptcy. I’ve discussed this before, but as a quick review, debtors who owe multiple mortgages can strip the liens off junior mortgages that have no equity in …

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CFPB Issues New Rules Regulating Prepaid Cards

Credit cards, Creditors / By Matt Leichter

At the beginning of the year, I wrote about the merits of stored-value cards, and the role they can play in a New York bankruptcy. Stored-value cards are increasingly referred to as “prepaid cards” or “prepaid accounts.” They’re back in the news this month because the Consumer Financial Protection Bureau (CFPB) just issued new regulations …

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Is Pawned Property a ‘Non-Possessory, Non-Purchase Money Security Interest’?

Bankruptcy, Creditors / By Matt Leichter

The answer is no, but the questions are: What’s a non-possessory, non-purchase money security interest, and why would that matter in New York bankruptcy? Pawned property is a commonly understood concept, and I’ve written about how it contrasts with repossessed property. The Bankruptcy Code specifies that pawned property is not property of the bankruptcy estate. …

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Bankruptcy Is Medicine for Debt-Related Health Problems

Bankruptcy, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Debt / By Matt Leichter

It should come as no surprise that debt contributes to serious, measurable health problems. What is notable, however, is just how well documented the connection is. Researchers have conducted quite a few studies on the subject, and here are some of the mental and physical maladies that debt corresponds to: Headaches Anxiety disorders Drug and …

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What Is ‘Abandonment of Property’ in Bankruptcy?

Bankruptcy, Business Bankruptcy, Creditors / By Matt Leichter

When we think of abandonment, images of derelict buildings spring to mind. In New York bankruptcy, though, it’s just the process by which a trustee (or debtor in possession) can divest property from the bankruptcy estate, returning it to the debtor. Section 554(a) of the Bankruptcy Code authorizes the trustee to abandon any asset that …

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Matt Leichter