In 2024 the Massachusetts Legislature passed, and the Governor signed, Chapter 150, of Massachusetts General Laws, to replace the prior Homestead Law.  This was a comprehensive law to address the issue of affordable housing in Massachusetts.  Here we merely outline some questions regarding the Homestead portion of the new law. 

What is a Homestead?

A Declaration of Homestead is a document you file at the appropriate Registry of Deeds, for $35 fee to them, which provides your principal residence with protection from creditors, called and Estate of Homestead.  Under the 2024 law, you are provided with $1,000,000.00 of protection upon filing.  Note, this must be where you live, or where you intend to live, and not your summer home or rental property. 

 Note that prior to the new law, the protection was $500,000 – for a properly filed Homestead. 

 What Protection Do We Have if We Fail To File?

Even if you fail to file, the law provides you with $125,000 in automatic protection.  But you can file at any time and often even a seemingly untimely filing offers full protection.  This number has not changed with the new law. 

Our Home is Held in a Trust – Can We Be Protected Too?

Yes.  So long as you are the beneficiary of the trust.  Note that the Trustee must sign and file the Homestead, and they must do so properly identifying the proper persons (the Trust beneficiaries) to be protected.  

If the home is owned by a joint tenancy (whomever survives owns solely) or tenancy by the entirety (marriage) the homestead applies allocated among all owners. 

We Filed A Homestead When We Bought/Refinanced Our Home – Do We Need to Refile?

No.  Not generally but ask your lawyer especially if there are refinances or folks coming off or onto the deed.  

Are There Extra Protections For Folks Over 62?

Yes!  Each homeowner who files is entitled to the $1,000,000.00 exemption.  So married seniors get $2,000,000 in Homestead coverage.  Note that the Homestead protection terminates upon death.

 Are There Extra Protections For the Disabled?

Yes.  You should consult with your attorney for how to properly protect your home for the disabled.

 Do We Still Need Homeowners Insurance?

Yes, absolutely.  If someone is injured on your property, you need professional insurance adjusters and attorneys to represent you.  The insurance company will generally resolve the claim or pay any judgment, keeping your home safely away from the injured party.  Note, however, if there is a judgment beyond (more than) the amount of your insurance coverage, that could result in a lien against your home, so a Homestead would provide some protection.  

Furthermore, you can often bundle homeowners’ insurance with motor vehicle insurance for Umbrella Insurance, which offers even more protection. 

Finally, even if you rent, you should secure renters’ insurance and an Umbrella policy. 

How Does a Homestead Work In Bankruptcy Cases? 

If you file for a personal Chapter 7 Bankruptcy in Massachusetts AND you have a Homestead, your home is protected up to $1,000,000 from creditors.  Note, however, this does not include the mortgage company, taxing authorities, any Probate Court judgments for divorce and child support and other exemptions.  Generally, the Homestead is for protection from consumer creditors, lawsuits from creditors, medical bills, etc. 

Can Burns & Jain Help with a Bankruptcy Question?

Of course!  If you believe you may need a “fresh start” with personal bankruptcy, getting your consumer debts discharged, call Attorney Neil Burns and Attorney Roshan Jain for a free consultation:  617-227-7423.  

The post How Can We Get One Million Dollars of Protection from the New 2024 Homestead Act? appeared first on Burns | Jain.

Telematic services are in over 50% of new cars sold since 2018, and will be in 90% of cars manufactured in 2021.

Should Question 1 pass, then these repair shops would have access to the telematics data for either a permanent or a limited time so as to implement needed repairs. Depending on what version is passed, auto owners will be permitted to allow repair shops a limited time to have such access. Some of the data includes driver behavior and other personal data such as information from dashboard cameras and data from cellphones as well as mechanical and systems data.

The car companies have poured millions in the campaign to defeat Question 1, raising the arguments that  hackers will gain access to private data and have the opportunity to wreak havoc in automobile systems. One ad paid for car companies showed a motorist being stalked by a hacker who gained access to the individual’s identifying data. Proponents of the bill stated that these concerns were misplaced and exaggerated, and that only mechanical data and not private information would be accessible. However, it is not clear what mechanical data encompasses.

Car owners usually would rather go to an independent repair shop since they are typically cheaper, and many owners prefer relationships with small business owners in their communities. If the car dealers and companies are able to defeat the bill, most consumers will be forced to return to the dealers for diagnostics and repairs, and to typically pay higher costs.

Still, there are privacy concerns that extend beyond cybersecurity. Car companies have access to consumer information and may use that for advertising and other purposes. Those who would like the bill passed suggest a debate or even a compromise over what data aftermarket shops can have access to and what repairs they can perform. Others have asked that there be federal regulations or guidelines so that there is uniformity among the states over what data can be shared.

How Does Telematics Affect Car Accident Claims?

There are several scenarios in how accessible data on a car’s mechanics and operating systems could impact a car accident injury claim. In some car accidents, the vehicle may have malfunctioned or had a defective part that caused the accident. Data from the telematics could reveal a faulty steering or braking system. If the car had been recently repaired but the defect not remedied, then the repair shop or dealer that was supposed to have fixed the problem might be held accountable.

But if the problem had been ongoing, then the motorist might be more likely to be found liable for causing the accident by not taking action to repair it. The data could show that the problem had been known, or should have been known, for several days or weeks. Accordingly, the owner, in the exercise of ordinary care, should have foreseen that an accident would likely result unless the problem was promptly addressed. The owner’s contention that he/she was unaware of the problem until the accident would be belied by the telematics.

Another circumstance is one where liability cannot be established since both parties in a car accident claim that the other ran a red light or unsafely entered their lane of traffic. There are telematic devices used with GPS systems that scan and monitor the road and traffic along with the driver’s conduct in the moments leading to the accident. It is possible with these systems to show where a car was located, how fast it was traveling or that it was even at a stop when the collision occurred, if the driver braked and how hard, and other internal data.

In the hands of the right car accident lawyer, your claim and your damages can be proved more easily. With telematic data, your lawyer might be able to firmly establish liability, find other culpable parties, discover that certain equipment failed to perform, and that the substantial force of the crash was enough to cause your injuries.

Damages in Car Accident Claims

Damages in car accident injury claims vary greatly depending on the nature and extent of the injuries. Damages generally include:

• Past and future medical expenses
• Past and future income loss
• Pain and suffering
• Emotional distress
• Permanent disfigurement
• Permanent disability
• Diminished quality of life
• Spousal claim for loss of consortium

Retain a Car Accident Lawyer from the Law Office of Burns and Jain

Car accident claims may benefit from passage of the refined Right-to-Repair measure. Many auto accidents involve complex liability and damages issues, and demand the experience and resources of a car accident lawyer who has successfully handled such cases. Call us today at (617) 250-8256 for a free and comprehensive evaluation of your injury claim.

The post Car Companies Refuse Responsibility for Data Safety in Massachusetts appeared first on Burns | Jain.

No matter what FICO scoring your creditors will use, to enhance your credit score following the basic rules:  don’t pay your creditors late, keep your credit utilization ratio low and don’t keep applying for new credit.

But how is the scoring changing?

How is FICO 10T Different from FICO 8 and FICO 9 and What Does it Mean?

FICO, the great big credit scoring entity that everyone refers to, changes its formula every few years.  In 2009, it was FICO 8.which is still used by some lenders.  It entails various characteristics such as penalizing you for using a high percentage of your available credit; numerous late payments are detrimental (but not a single late payment); nominal collection matters are inconsequential; being added to a friend’s credit card to boost your credit doesn’t!

In 2014, FICO 9 was released.  More and more lenders are now using the FICO 9 formula.  The changes were incremental, but perhaps significant to some.  For example, paid off accounts are ignored (rather than boosting your credit).  Unpaid medical bills are not generally heavily weighted.  And for renters, your history with your landlord is featured on your credit report.

FICO 10, fresh off the books and not even being used yet, adds a few features to the labyrinth of credit scoring.  This new and improved scoring method seems to be out of a Facebook algorithm –  it uses “trended data” over the two prior years to review credit card balances, payment activity and loan payment history.  Note, it gives more negative weight to recent late payments than distant tardiness.

Bankruptcy in Massachusetts Post Coronavirus

Unfortunately, Burns & Jain is expecting an upsurge in chapter 7 personal bankruptcy filings post coronavirus.  Many clients have been or will be laid off.  Folks are behind on rent, not able to pay more than the minimums on their credit cards, and seeking family and personal loans.  Credit cards are being used to buy essentials but there may not be the ability to pay them off, especially for folks who are unemployed or underemployed.

“It is never too soon to undertake bankruptcy planning,” reports Attorney Neil Burns.  That is, utilizing the allowed bankruptcy protections, not making transfers that could be considered fraudulent, and working toward discharging your debts and getting the fresh start envisioned by the federal bankruptcy laws.

Note that the feds relaxing of 401k withdrawal laws is for the 10% penalty, but not for the tax on the withdrawal.  Consider paying the tax right away and withdraw only as much as you need.  This is important because you don’t want to withdraw too much and disqualify yourself for a chapter 7 personal bankruptcy.  Contact an experienced bankruptcy lawyer or tax professional before you undertake such major financial transactions.

Burns & Jain For A Free Bankruptcy Consultation

Attorney Neil Burns has been practicing bankruptcy law in Massachusetts since 1985.   He informs that getting a “fresh start” has provided hundreds of clients with satisfaction and enabled them to buy cars, homes, and even keep their homes while discharging all consumer debt.  He emphasizes planning to save you and your family money.  Call Burns & Jain for a free consultation.  617-227-7423.

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Attorney Neil Burns recalls that when the federal bankruptcy laws changed in 2005 there was a dramatic increase in Chapter 7 filings.  When the Crash of 2008 happened, Attorney Burns and his firm filed all too many bankruptcies for families in the months and years thereafter.  In each wave of bankruptcies, the “fresh start” law was proven helpful.

The Coronavirus will likely cause financial stress for many.  Folks need to plan:  which bills to pay first, which bills can be discharged, how does the Massachusetts Homestead work, how to stop collection cases and how to navigate the federal bankruptcy system.  Folks need to have an experienced bankruptcy lawyer.

Unemployment and the Coronavirus and Massachusetts Bankruptcy

Many folks will be able to live on their savings and the various unemployment insurance programs, state and federal.  Many folks will not.  Some folks don’t qualify for the programs because they were between jobs.  Some folks need more income.  Some people will not qualify for Chapter 7 personal bankruptcy because of their family household income notwithstanding being unemployed.

It’s complicated.  You should retain an attorney if you can’t pay your creditors during unemployment during the coronavirus pandemic.

Coronavirus and Medical Bills Resulting In Massachusetts Bankruptcy

In 2018 a Federal Reserve study determined that 40% of households would be unable to find $400 in an emergency.   Notwithstanding Mass Health, many folks who get sick, or are impacted by illness in their family, may need to file for bankruptcy protection here in Massachusetts.

Health care bills are generally dischargeable in bankruptcy.  So are many other consumer bills.  It’s not clear what federal or state legislation will be enacted, but you should be ready, with an experienced bankruptcy lawyer if you have considerable debt and insufficient assets and income to pay it off.

Coronavirus and Using Your Retirement Monies Verses Bankruptcy

Folks who accumulate debt often tap into their retirement reserves in times of financial difficulty.  We would recommend meeting with a bankruptcy attorney BEFORE doing so because most retirement accounts are protected from creditors in bankruptcy.  However, once the monies are withdrawn, they are “reachable” assets from the creditor’s perspective.

Again, we recommend you undertake bankruptcy planning.   And we offer a free consultation!

Massachusetts Attorney General Helps Debtors Amid COVID-19

On March 27, 2000 the Massachusetts Attorney General, Maura Healey, established regulations –  to be in effect for 90 days, or until the State of Emergency is lifted by the Governor.

First and foremost, under the AG’s order there can be no new lawsuits to collect consumer debt.  That is, if you are late on your credit card, they cannot sue you until at least June 27.  While filing for bankruptcy “stays” any collection matter, this gives folks even more breathing room, as there can be no new lawsuits anyway.

Second, debt collectors cannot visit you at work or at home, or threaten to visit you at work or at home, and they cannot call you (unless you call them first or it is an individual trying to collect his or her own debt).  This too gives debtors more breathing room as Burns & Jain frequently gets contacted when there is an impending court date or new notice “thrown at the door.”

There are new restrictions during this time period regarding garnishing your wages and repossessing vehicles.

Burns & Jain Has 35 Years of Bankruptcy Experience

Attorney Neil Burns has represented debtors in Chapter 7 personal bankruptcy since 1985.  We have represented clients in all of the bankruptcy districts in Massachusetts.

Personal bankruptcy is more than filling out a form.  You need to plan.  To plan, you need to know the law.  The law is complicated but can be amazingly beneficial to folks who need a “fresh start.”

Call for a free consultation:  617-227-74123.

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Not generally.  You must insure each property as a typical homeowner’s insurance policy or apartment policy insured that property alone.  However, and there’s always an exclusion or interpretation based on the facts of the case and the specific policy, sometimes it’s the negligence of the homeowner that is the issue, and that may trigger insurance coverage at another property or elsewhere.

Insured Massachusetts Property Triggers Insurance Coverage for Negligence in Maine

In July 2014, four young adults went to a cabin in Byron, Maine to celebrate a 22^nd birthday.  The homeowner’s two kids and two friends travelled from Braintree, Massachusetts to Maine where the family had a small “camp”.  Apparently, to run the refrigerator, they started the generator INSIDE and the carbon monoxide from the running generator killed all four, ages 18-23.  At the time investigators arrived the generator was not running and out of fuel, but in the on position.

The families of the other two young adults file a wrongful death claim in Massachusetts alleging that the homeowners, the parents who were grieving the loss of their own two deceased young adults, were negligent and responsible for the deaths.  Their injury attorney’s goal was to trigger the homeowner’s insurance for the Braintree home since the Maine cabin had no insurance coverage.  The victim’s attorneys argued that since the parents knew, or should have known, that the generator was potentially dangerous, they should have warned their children not to use it, or how to use it.

The Court found that the since the generator was portable and not hardwired and that the homeowners had not instructed their children as to how to safely use the generator, the negligence was covered by the family homeowner insurance in Massachusetts;  it was not “arising out of a premises” or “arising out of a condition of a premises” but  was the instructions, or failure to instruct, regarding the generator.  That is, it was the failure by the homeowners as to how to use a portable device that triggers their insurance.  It was not caused by the cabin’s inadequate ventilation, which the insurance attorneys argued, because no building would have been properly ventilated for this generator, the Court held.  Thus, “this accident – however tragic – could have happened anywhere and did not arise out of a condition of the uninsured premises.”  The decision analogized their reasoning to a dog bite case – the dog, which travelled from the family from an insured home to their uninsured home, was still covered by the homeowner’s insurance because it did not arise out of a condition on the uninsured premises.

The wrongful death case, recently handed down by the Massachusetts Supreme Judicial Court, Green Mountain Insurance Company v. Mark Wakelin (SJC-12760 December 6, 2019) gives Massachusetts homeowners a warning, and potential victims of homeowner’s negligence some solid ground to work from in injuries that are sustained outside of the home and premises of homeowners.  In fact, the Court points out that had the homeowner’s lent the portable generator to a neighbor and failed to properly instruct the neighbor as to it’s safe use, they could be held liable for injuries in that instance and that homeowner’s insurance would have to cover that loss.

Note, the Supreme Judicial Court was not deciding that the homeowners were negligent, but that there could be a trial in the Massachusetts Superior Court for a jury to determine if they were negligent.  The SJC decision was that the insurance company had to defend and pay if there was a finding by a trial court.

Burns & Jain Represents Wrongful Death and Injury Victims Caused by Negligent Massachusetts Homeowners

Whether it’s on the premises of a home, or because of the negligence of a homeowner, the insurance policy of the homeowner, or apartment owner, may kick in and cover injuries and wrongful death.

In the Green Mountain Insurance case, the victims’ lawyers were tenacious in representing their clients – the families of the victims.  The insurance companies can, and will, fight every case.  First, they try to show no injury, or that the injury was minimal.  In a wrongful death case, or serious injury case they don’t have that argument so they move on to show no causation – that the injuries were not caused by negligence of the homeowner.  Or that there was no insurance.

If you, or a loved one, were the victim of negligence and the negligent party has homeowner’s insurance, call Burns & Jain for a free evaluation of your case.  You need an experienced trial attorney to review the facts, aggressively fight the insurance trial lawyers, and give justice for the victim of injury or wrongful death.

Call 1-617-227-7423 for a free consultation with Burns & Jain.

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In the 34 years I have been practicing bankruptcy law in Massachusetts, we have been informing clients that their Individual Retirement Accounts (IRAs) are generally exempt from creditors in bankruptcy.  As are 401ks, Keogh plans, and so forth.  You simply declare on your Petition and Schedules what your retirement accounts are, provide documentation as to the balances, and the bankruptcy trustee considers them exempt from your creditors.

What is an IRA?

An IRA (or 401k or 403b) is a pretax investment account for retirement that is self-funded and directed.  That is, you put the money in (self-funded), you invest the monies how you wish, and you take the monies out during retirement.  It’s a tax deferral system that is what we, as a nation, have moved to.  The monies that you deposit come from your income and reduce your taxable income in the year deposited; however, they are taxed when you withdraw them.  There are many types of IRAs and tax deferred plans, many ways of investing, and important tax laws to follow for both depositing and withdrawing.

What is important here, is that the tax deferral accounts are considered exempt from most creditors in bankruptcy and are a useful tool in bankruptcy planning.

Eleventh Circuit Says Bankruptcy Debtor Cannot Exempt IRA

However, in an Eleventh Circuit (Alabama, Georgia and Florida) case, the Appeals Court held that a bankruptcy debtor’s IRA was NOT exempt from his creditors.  See Yerian v. Webber, (11^th CIR., June 26, 2019).  In that Florida case, Chapter 7 debtor Keith Yerian used an IRA holding company called IRA Services Trust Company that allow for atypical IRA custodian holdings – such as Fidelity, Schwab, or your bank.  Usually folks’ own stocks, bonds, money market accounts, or mutual funds of the above.  We don’t know anything about that company; however, it allows for “things” to be owned by the IRA such as cars and houses.  While the law may allow this, it’s not usual.  In the Yerian case, he apparently owned cars for himself and his wife, and a condo in Puerto Rico.  He paid over $100,000 in tax penalties for improper transactions regarding these holdings.

In Bankruptcy Court he argued that notwithstanding the IRS penalty, he was still entitled to the Bankruptcy Exemption because it was a different law.  The Court agreed that it is a different law, however, the Bankruptcy Court found that Yerian violated the rules of the IRA itself.  The Court held that Yerian violated the IRA rules of maintaining “in accordance with its own [IRA documented] instrument”.  Thus, the self-dealing (buying cars and condos and not mutual funds) violated the IRA Services Company’s rules, or “instrument” and thus was not except.  He set up the IRA properly, however, he did not operate or “maintain” the IRA properly.  Therefore, the Bankruptcy Trustee could seize the asset and use it to pay creditors.

This is a unique case and one of first impression, we understand.

Massachusetts IRA Exemption Exceptions

When you file for bankruptcy protection in Massachusetts, you can use the federal or state exemptions.

In Massachusetts, there are a few exceptions to exempting IRA:  Under Massachusetts General Laws, Chapter 235, Section 34A, divorce, separate maintenance (alimony), child support, restitution for crimes and “sums deposited in a [IRA or annuity etc.] plan in excess of 7% of the total income of the individual within five years of the individual’s declaration of bankruptcy or entry of judgment.”

Burns and Jain Have Experience in Bankruptcy Law

Before filing for bankruptcy protection, you should undergo pre bankruptcy planning.  While the Eleventh Circuit caselaw is not necessarily applicable here, it could be persuasive if similar actions were taken by a debtor.  You should hire an attorney who has experience; an attorney who asks the right questions; an attorney who will prepare your petition and schedules carefully; an attorney who will check the shenanigans of such an IRA before allowing you to file for bankruptcy protection.

Call Burns & Jain at 617-227-7423 for a free consultation.

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The number of seniors coming to our office for consultations for Chapter 7 personal bankruptcies is rising.  After 33 years of practicing bankruptcy law in Massachusetts, I have antidotal evidence of trends in filings.  After the 2008 recession, we had a huge rise of middle age and middle-income folks who came in and just could not afford their mortgage payments.  They defaulted on home loans, were forced to move out, but got a Fresh Start, under federal bankruptcy law.

Now, however, we see more older folks coming in.  The trend we see matches some statistics from the Judiciary Data and Analysis Office for the US Courts.  For example, a recent report indicated that in 1991 2.1% of bankruptcy filings were for seniors while in 2016 the number was 12.2%.  Why?  Is it health care costs?  Is it the fact that there are fewer pensions and seniors were not able to save for retirement?  The National Counsel on Aging reports that in 2013 household debt for seniors was $40,900, while it was only $18,385 twelve years earlier.

In a 2017 report by Jonathan Fisher, of Stanford University, it was noted that the “bankruptcy population is aging faster than the U.S. population as a whole.”  An unrelated finding by Professor Fisher but a happy one, is that “Income falls before bankruptcy and then rises after bankruptcy.”  On the other hand, while generally good news, this is not necessarily helpful to seniors, who don’t generally have “income” later in life, or who struggle mightily to have some income.

The Bible and the Constitution On Bankruptcy

There are generational issues too.  Many seniors find it unethical to not pay their creditors, no matter what their personal hardship.  They feel a stigma.  Nevertheless, some clients report that they look at the Old Testament, in Deuteronomy, where debts are forgiven at the end of seven (7) years.  More recently, the U.S. Constitution, Article 1, Section 8, Clause 4, authorizes the Congress to enact “uniform laws on the subject of Bankruptcies.  And the president of the United States, himself a senior, has filed for bankruptcy protection numerous times.

In Massachusetts, seniors that own their home can protect it with a Homestead.  They may have a better likelihood of a fresh start.  But they still have medical and hospital bills that could cause a bankruptcy.

On the other hand, those without home equity, may have a much harder time if they have no assets and a fixed income.  And the younger members of their family may have inadvertently robbed them of their assets with college costs, helping for buying homes, and non-remunerative babysitting.

Free Consultation at Burns & Jain in Boston

Attorney Neil Burns has been representing Massachusetts seniors in personal bankruptcy for 33 years.  His office, Burns & Jain, offers a free consultation, pre-bankruptcy planning, and an effective way to get a Fresh Start using the state and federal bankruptcy laws.

We know that filing a personal bankruptcy has negative ramifications including reducing your credit score, and making it harder to get loans, including car loans.  We can help you plan for that and show you ways to increase your credit score after filing.

The post Seniors Filing for Personal Bankruptcy 2018 Update appeared first on Burns | Jain.

New Haven Lawyer Breaches Client Trust

An attorney in New Haven, Connecticut provides an example of what can happen when an attorney fails to live up to this standard.  Attorney Paul Ressler, who represented many local folks there, recently was sentenced to five years in federal prison for stealing millions of dollars from over 100 of his own clients.  He was also ordered to pay restitution to clients.

Apparently, Ressler took significant monies from dozens of clients and simply converted it to his own use to buy things such as luxury condos and boats.  For example, he took monies to hold in escrow for a financial transaction for his client and failed to return it; he took monies to work out a settlement with the IRS and failed to do so; he took monies to resolve a debt and converted the money for his own use.  He took money from an elderly couple to refinance their home and failed to return it, resulting in a sad breakdown for the family.  The federal prosecutors characterized the attorney’s behavior as a Ponzi scheme.  At some point in time, the Bankruptcy Court requested to review his clients’ accounting…and the scheme unraveled.

An attorney was appointed to represent the clients’ who were victimized in the scheme.  After he reviewed the files, Attorney Vincent Marino wrote the following to the federal prosecutor: “There are few words to describe the magnitude of the damage caused by Mr. Ressler’s illegalities to the victims, the creditors of the victims, and the bankruptcy court.”  The damage to the clients, and the extent of the fraud (hundreds of thousands of dollars), was extensive.  The work Attorney Marino had to do to determine the vast web of lies and deception must have also been extensive.  Perhaps more importantly, stealing money from these clients, at their most vulnerable point in life, may have caused considerable distress to a multitude of families.

Can Illegal Profits Be Discharged in Bankruptcy?

No.  In the Ressler case, his Court ordered restitution cannot be discharged with a filing for bankruptcy protection; the debt is not dischargable.  The Court will likely take any of the assets they can find, sell them at appropriate auction, and use the monies to pay the victims.  Usually in cases such as this there are insufficient assets to compensate the victims.  Here, there are over 100 victims.  We don’t know how, or if, the victims will be compensated.  However, Mr. Ressler will not be able to file for personal bankruptcy and discharge his obligations under the Federal Criminal Court’s restitution order.

Ressler may, however, be able to discharge other debts in personal bankruptcy.  For example, he may have run up credit card debt, or be underwater on his home mortgage.  Further, he may have attorney fees that he could discharge in bankruptcy.

Burns & Jain – Massachusetts Bankruptcy Lawyers

Call Attorney Neil Burns and Attorney Roshan Jain.  They represent individuals in personal bankruptcy in Massachusetts.  Attorney Neil Burns has been appearing on behalf of clients since 1985.  Call for a free consultation:  617-227-7423

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How far can an attorney go in seeking relief for his or her client?  Can he draft and file misleading pleadings and argue the wrong law before the Bankruptcy (or any) Court?  Twice?

The Bankruptcy Court Rules Against A Deceptive Attorney

In a ruling by the First Circuit Court of Appeals, entitled Baker v. Harrington (In Re Hoover), the Court said to an experienced Massachusetts Bankruptcy Attorney that it is not acceptable to mislead the Bankruptcy Court.  And the fact that the attorney here undertook the deception twice in the same case was actionable with a sanction.  Often, the Bankruptcy Court must “act quickly [as in this case because of a “stay”], and should be able to assume that counsel are truthful.”

In a business bankruptcy matter, representing debtor John Hoover, the attorney at issue filed offending motions twice before the Bankruptcy Court.  First, the attorney incorrectly cited the law, stating that a creditor bank had violated the “automatic stay” entitled by the debtor.  The Court determined that the attorney misstated the law in order to confuse the court stating that the law was what it indeed was not.  In addition, the lawyer asked the Court to sanction the creditor bank when, in fact, they had not broken any law.  In fact, the Court gave the attorney a chance to rectify the situation by asking for a brief to explain the law he misquoted.  The attorney responded stating that the Court took the quote “out of context” however offered no correct context from which the Court to review it.

In a second matter, involving the same debtor, the attorney objected to the US Trustee’s claim that the debtor was wrongly spending “cash collateral” when in fact the debtor was doing just that.  Further, the attorney misquoted the law, by quoting selectively in defining “cash collateral” and misled the Court.

Does the Punishment Fit the Crime?

The Bankruptcy Court held, and the First Circuit Court of Appeals upheld, a sanction of the attorney requiring him to attend a legal ethics class back at an accredited law school.  The sanction was based in part because the Court found that on three (3) prior occasions the attorney had been found to have violated the trust of the Bankruptcy Court and been sanctioned – for “asserting frivolous defenses” and for “advancing arguments contrary to express statutory provisions” and for filing a “meritless motion” for sanctions.

So was this sufficient?  The Bankruptcy Court, after listening to counsel and looking at his record made this requirement…and the Court of Appeals found it to be reasonable.  While some may think it did not go far enough, and some may say it went too far, it’s hard to judge and, again, why argue with a Bankruptcy Court Judge and an Appellate Panel of judges?  Especially after so many findings of misbehavior.

Bankruptcy and Hiring a Competent Attorney

We represent people who need a “fresh start” under the law.  And we will do anything, LEGAL, to get a discharge for our clients.  We never find a need to mislead the Court as the law is favorable to debtors who comply with the requirements of the Chapter 7 personal bankruptcy Petition and Schedules.  So call 617-227-7423 for a free consultation.

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Many consumers who have settled insurance claims are perplexed when they hear of other claimants receiving more in settlements for property damage or pain and suffering for their injuries that they did for very similar claims. While not every accident or claim is the same and you can always point out differences in the nature and extent of injuries or property damage, there are additional factors to consider in determining if you are getting the most for the premiums you are paying.

In looking for auto insurance, most consumers are primarily concerned about the cost of monthly premiums. Insurance rates are based on a number of factors such as where you live, your age, type of vehicle, your claims history and any moving violations. However, perhaps consumers should be more concerned about which insurers pay more in claims than others since this can cost you thousands of dollars in a major accident. Data on this can be hard to find since it is not so readily accessible.

Insurance Companies Insight

A data analytics company, ValChoice, recently published its findings on auto insurance companies that sheds light on which insurers are more structured for looking out for consumers than others. The company looked at more than 300 insurers over the past 5 years and examined their claims history.

What Insurance is better for Car Accidents?

There are two kinds of auto insurance companies–publicly traded companies and mutual insurance companies. The former is structured so that it must satisfy public shareholders and its policy holders, two parties that have mutually exclusive interests. Of course, shareholders seek to invest in companies that give them greater returns while policy holders expect at least reasonable but also more generous payouts on their claims.

Mutual companies serve only one master–the policy holders who own the company and who may be paid premiums. These companies provide the best value to consumers. But even among mutual companies, there are two models. One pays premiums to policy holders while the other puts them back into the company. Mutual companies that pay premiums to policy holders constitute 42.3% of the market. USAA is the most prominent of these companies. Others examples are the Auto Club of Southern California, NJM Insurance and Amica Mutual.  Liberty Mutual, in Massachsuetts, is a mutual company that does not pay premiums to its policy holders.

ValChoice also looked at the data on a metric called pay-loss ratio. Those companies that had the highest pay-loss ratio paid out higher on consumer claims. If you are in an accident, you are more likely to receive a more generous payout with these companies. Publicly traded companies paid out the least in claims, or just under 63% of premiums. The companies with the highest pay-loss ratio paid out 72.6% of the premiums earned.

Personal Injury Damages and Insurance

You may be paying lower monthly premiums for your auto insurance, but if it is a publicly traded company such as Allstate, Progressive and Geico with low pay-loss ratios, you are likely paying for less coverage. You will also experience less generous payments on your losses and have a longer and more difficult time receiving payments or reimbursements.

You can research your own company by going to ValChoice.com and choosing car insurance rating reports and see if your insurer meets your expectations. Of course, the cost of monthly premiums is always a concern but try to keep the big picture in mind. You certainly want a company that gives you the coverage you need and will not shortchange you when it comes to paying on a claim.

If you’ve been involved in a car accident and are fighting either your insurance or the person who hit your vehicle’s insurance company call accident lawyer Neil Burns: 617-227-7423.

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