Wednesday, October 6, 2010

Bankruptcy, Meeting of Creditors

To all those debtors out there, would you like to know what to say and what not to say at your Section 341 meeting of creditors???? If you are like most of my clients, you are somewhat nervous about what will happen at your meeting of creditors and would like to know exactly what you will be asked and what you should be answering. One word of advise, TELL THE TRUTH ABOUT EVERYTHING. You have no idea what lying can do, no idea. My mother always told me that lies always result in more lies and we all know that mothers are almost always right. I was witnessing a debtor trying to get out of lying to the trustee today and it was not a pretty picture. So, tell the truth and keep it short.


A client the other day told me that she had heard on the news that banks will no longer pursue foreclosures. She also wanted to know what did that mean in her case, would she continue to live in her house without paying the mortgage and would the bank take her house? To be honest, I cannot, myself, comprehend the completely foreclosure crises to its fullest, but I will try to explain the most recent news on the foreclosure to the best of my legal ability. In some states, including Illinois, it has come to the attention of the judges, attorneys, and banks, that during the foreclosure process, which begins with the homeowners failing to pay their monthly mortgage payments, some banks failed to comply with all of the required steps of the foreclosure laws, while others simply forged documents. Among these banks are Chase, Bank of America, and several, unnamed others. Due to this latest development, the Banks decided to put some of their foreclosure cases on hold. Now, this is the punch line, we have no idea which cases. So, I guess for most homeowners in trouble, this is simply a waiting game of seeing whether or not their case will be the one to be put on hold.