Michael Primus – Page 6 – Law Offices of Michael J. Primus

Does crime pay?

November 30, 2014 by Michael Primus

For many local governments, the answer is yes. You’ve seen the signs in retail stores warning that you can be responsible for triple the amount if your check bounces. Often the signs also include warnings that bouncing a check is a misdemeanor and that the retailer intends to prosecute. Most of us have bounced a check at one time or another and then worried about what might happen. If you get a letter that purports to be from the District Attorney threatening prosecution, it may not be what it looks like.

These days most district attorneys, including Contra Costa County, are short-staffed and have little or no resources to prosecute bounced checks. Bounced checks are, at most, a low-level crime that does not merit jail time except in the most extreme cases. Bounced checks are so common and the resources to prosecute so limited that many district attorneys have delegated the pursuit of bounced checks to private collection agencies. This idea is easily accepted because it can also function as a moneymaker for local government. What has developed are “diversion” programs whereby a person can avoid prosecution by paying for and completing a course on financial management. These diversion programs are often run by private companies, but a portion of the fee charged for the course is paid to the local government. In fact, Contra Costa County has a “Bad check diversion program” that allows the check writer to pay the check and complete a course to avoid prosecution. The County’s website goes on to explain that the program is at no cost to the taxpayer.

In 2012 the New York Times published an article detailing a troubling trend where local district attorneys allow debt collectors to use the district attorney’s letterhead to threaten criminal prosecution when a debt involves an unpaid check. Since that article, legal ethics opinions have decried the practice as unethical, yet it continues in many places. This practice is especially problematic because of the number of scams where imposters claim to be law enforcement. Their purpose is to extract money whether or not anything is actually owed. Right here in Pleasanton, California, the Federal Trade Commission busted a scam where fake cops collected fake debts. Anyone with questions should review the Federal Trade Commission’s Fake Debt Collectors scam alert.

At the Law Office of Michael Primus we have helped hundreds of clients get out of debt, stop wage garnishments, and start fresh through bankruptcy. If you live in Contra Costa County and have debt problems, contact us for a free in-office consultation. We have offices in Walnut Creek, Antioch and Hercules.

Mortgage Modification Troubles? You Have Rights!

November 12, 2014 by Michael Primus

Tired of the Mortgage Modification Run Around? You Have Rights! Attorney Michael Primus realizes the mortgage modification process scary and frustrating. In fact, a person may file chapter 13 bankruptcy in Contra Costa County to stop a foreclosure even though he or she is in the middle of a loan modification. It’s not uncommon for a person in the middle of a loan modification to be told very different things from one day to the next by their mortgage lender. For example, one representative may say “don’t worry we’re not going to foreclose because you’re in a modification” and the next day another representative will say “We didn’t receive your application and so your loan was placed in foreclosure.” Often, the foreclosure process is initiated while a modification is pending. This is called dual tracking and refers to the practice of running the foreclosure process at the same time as the loan modification process. Note: foreclosure is the legal process used by a mortgage lender to take your home if your payments are delinquent.

We were told that the National Mortgage Settlement would help people keep their homes. Part of the National Settlement was to eliminate dual tracking so that people maximize their opportunity to save their home from foreclosure through the modification process. The National Mortgage Settlement states that the “Big Five” will cease all dual tracking as of October 3, 2012. So who are the “Big Five” you ask? Chase, Citifinancial, Wells Fargo, Bank of America and Ally/GMAC. This is supposed to mean that while an active loan modification is taking place the mortgage company cannot proceed with foreclosure. Sounds great, right? Of course who would violate the National Mortgage Settlement and take a chance of making the Attorney General mad? Good questions but apparently what seems to be clear cut may not be so clear.

I am still seeing mortgage companies claiming that modification paperwork was incomplete when received or never received at all. This despite homeowners repeatly faxing, mailing and even Fed Ex-ing modification applications. What does this mean? This means that the mortgage company can claim that there is no active loan modification and game over. The mortgage company will then be entitled to pursue the foreclosure without violating the National Mortgage Settlement. So is all hope lost? No.

If you are attempting a loan modification, keep a record of your activities. The date you sent documentation, a list of the documentation sent and the address or fax of where you sent the documentation. Keep a record of the calls, who you spoke with, the phone number, date and time as well as the conversation details. If you get the run around or are accused of not sending the documentation you should file a complaint with the monitor of the National Mortgage Settlement.

What if your loan is not with one of the Big Five? Consider your rights under the California Homeowners Bill of Rights which became effective January 1, 2013.

Call now for a free consultation regarding bankruptcy. Offices in Walnut Creek, Antioch and Hercules.

Law Office of Michael Primus

High Income, Still Broke? There’s help for you.

November 6, 2014 by Michael Primus

Many families in Walnut Creek, Concord, Antioch and Brentwood have two incomes – good jobs – yet somehow there is just never enough money to make ends meet. I am a father of two kids, so I know about braces, field trips and the clothes they like but then never wear. No one item is that expensive but together it all adds up. For many families, the trouble comes with just one additional expense. It might be an expensive car repair, an unwanted dental emergency, a traffic ticket or a desperate call from a family member needing money. It’s always something. Does that sound familiar? Frustrated and confused, people assume they must be doing something wrong. Honest people turn to credit cards or payday loans to get through to the next month, and that’s the beginning of an ugly cycle of charging and paying. Credit cards and payday loans quickly become another monthly bill.

Most people assume that having two good jobs means they will not qualify for bankruptcy. These same people also want to protect their credit rating and assume chapter 7 bankruptcy will ruin it. Both of these assumptions are incorrect in many cases.

High Income – The law considers a person’s or couple’s income to determine to what extent they qualify to have debts forgiven. The formula is derived from IRS guidelines and is complicated. Suffice it to say, a family of four with a six figure income (over $100,000 gross) will usually qualify for bankruptcy. Surprised? It’s true! There are many factors such as car payments, house payments, and the cost of health insurance that directly impact qualifying for bankruptcy. If you feel like you are in a financial hardship, chances are the law will agree.

Credit rating – Good credit is essentially the ability to get a loan if you apply for one. Good credit is a history of paying bills on time combined with adequate monthly income to afford additional loans. Once your payments become delinquent you no longer have good credit. If you are burdened with large debts, you will not have good credit until the existing debts are dealt with. Bankruptcy is not good for your credit but it does let you start over and begin building good credit.

What’s Next – How long will payday loans and credit cards hold you down? Are you ready to get the facts about bankruptcy?

35% of Americans With A Credit File Have a Bill in Collections

September 23, 2014 by Michael Primus

You may think most people pay their bills and live comfortably or at least get by. The truth, according to a study conducted by the Urban Institute, is that 35% of Americans with a credit file (most people over 18 years old have a credit file) have a bill in collections. What does that mean? Having a bill in collections generally means the debt is more than 180 days past due. Hard working people in Richmond, Antioch and Brentwood are no exception. Think about it, if you do not have a bill in collections then odds are your neighbor to the right or left does. In some cases the delinquent debt is for a medical bill that should have been paid through insurance. In other cases the credit report mistakenly shows a collections account where no such debt exists. Unfortunately the majority of collections are just debts that have gone unpaid, usually for good reason.

In tough financial times people focus on food and shelter, often leaving credit card and medical bills unpaid. When the unpaid bill goes to collections an ugly downward spiral begins. The spiral starts with phone calls and demanding letters but can move to lawsuits, wage garnishments, and even a bank levy. Many people will turn to payday loans as a short term solution but soon find that payday loans – with interest rates often above 300% – only make things worse. Some people will struggle for years carrying debts, always thinking things will get better. For some people things do get better, but for many the late fees, annual fees, and high interest rates make getting out of debt impossible. Personal bankruptcy offers a fresh start for people trapped in debt.

My Ex Has To Pay!

August 11, 2014 by Michael Primus

My Ex Has To Pay! Bankruptcy Attorney Michael Primus says “A divorce decree does not remove contractual responsibility.” Often a divorce decree will require one spouse, let’s say the (former) husband, to repay credit cards taken in both names jointly. What happens if he fails to pay? The account will go to collections and both of them will be pressured to pay the bill. Typically, the (former) wife assumes the divorce decree will protect her credit which is not the case. Legally, the contract was between the credit card company and both of them. The fact they are now divorced does not change the contract with the credit card company.

With a joint account, the former spouse’s share equal responsibility for the debt. The failure to pay could (and likely would) be reported to the credit bureaus thereby damaging the credit of both. The best option may be to pay the debt in full and go back to court to enforce the divorce decree. Doing so will minimize credit report damage. Often paying the debt is not possible, in that case a person should consider bankruptcy. This is a general discussion of the law and should not be relied upon. Any person considering bankruptcy should consult a lawyer for a detailed discussion of his or her rights and options.

At the Law Office of Michael Primus, we have helped hundreds of clients get out of debt, stop wage garnishments, and start fresh through bankruptcy. If you live in Contra Costa County and have debt problems, contact us for a free in-office consultation. We have offices in Walnut Creek, Antioch and Hercules.

Getting Free Copies of Your Credit Reports

May 9, 2014 by Michael Primus

People in Antioch, Walnut Creek and Hercules frequently ask, “How do I know what’s on my credit reports?” The answer is to get a free copy of your credit reports. As soon as anyone hears “free” they immediately think what’s the catch? I think that too. When it comes to credit reports, the Fair Credit Reporting Act requires that consumers be given access to their credit reports once every 12 months. The Federal Trade Commission established www.annualcreditreport.com to give consumers easy access to their credit reports, no strings attached. To get your reports, you’ll need internet access and will be asked several questions about your finances. Most people get copies of their credit reports in under 10 minutes. Unfortunately, the credit reports made available to consumers do not include the three digit FICO score generally used by auto and mortgage lenders.

Often people considering bankruptcy assume their credit reports are a mile long and all bad. Most of the time people find their credit reports are not as bad as expected. Usually this happens because derogatory items were never reported or were removed after 7 years.

Maybe you’re thinking, “My credit is good, so why bother?” Regularly reviewing your credit reports can help you ensure your good credit is ready when you need it, catch signs of identity theft early, and even alert you to misapplied payments or other lender mistakes.

At the Law Office of Michael Primus, we have helped hundreds of clients get out of debt, stop wage garnishments, and start fresh through bankruptcy. If you live in Contra Costa County and have debt problems, contact us for a free in-office consultation. We Have offices in Walnut Creek, Antioch and Hercules.

Does crime pay?

Mortgage Modification Troubles? You Have Rights!

High Income, Still Broke? There’s help for you.

35% of Americans With A Credit File Have a Bill in Collections

My Ex Has To Pay!

Getting Free Copies of Your Credit Reports

Bankruptcy, Not The End But A New Beginning.
We are a debt relief agency.
We help people file for bankruptcy.
We provide Flexible Payment Options.

Get Started with a Free 30-Min Consultation

Office Locations

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510-741-1800

Bankruptcy, Not The End But A New Beginning. We are a debt relief agency. We help people file for bankruptcy. We provide Flexible Payment Options.

Get Started with a Free 30-Min Consultation

Office Locations

Bankruptcy, Not The End But A New Beginning.
We are a debt relief agency.
We help people file for bankruptcy.
We provide Flexible Payment Options.