BofA gets Slap on the Wrist from Bankruptcy Judge

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Bank of America Corp. has been ordered to pay $10,000 per month for every month it continues to badger Edwin and Michelle Ramos to make them pay off a loan that had been discharged in a Chapter 7 bankruptcy case. The judge in this bankruptcy case, Robert Drain of the U.S. Bankruptcy Court in New York, stated “This is not just a stupid mistake. This is a policy [by BofA].” From an article by Peg Brickley in the Wall Street Journal, the jurist stated that although the couple’s bankruptcy “relieved them of the obligation to pay off their home loan while preserving the bank’s right to foreclose on its collateral”, an onslaught of letters and phone calls continued to the Ramoses even after their bankruptcy attorney “pointed out that their personal liability had been discharged in bankruptcy”. This harassment reportedly continued until 10 days following the judge’s order that imposed sanctions on the bank. Reportedly, Bank of America said it is “’resolving the issues with the court” and working with the homeowners “while we continue researching and investigating what transpired’”. According to the Wall Street Journal article, Bank of America “has recently agreed to stop the calls and letters except for informational notices that inform the Ramoses of what they have to do to hold onto their home. Chapter 7 bankruptcy absolved them of the obligation to pay the debt but preserved the bank’s lien on their property”. In March, another U.S. Bankruptcy Court judge fined Bank of America $220,000 for recurring violations of court orders that involved a loan-modification arrangement. Consumer bankruptcy attorneys, including those from Client First Bankruptcy, report that lender behavior has not significantly improved despite promises that illegal debtor harassment would cease. One New York attorney stated in the news report, “’This is a national problem. It’s happening all over the place. Why is BofA doing it? Because they can.’” If you receive phone call to your home or cell phone from a debt collection agency pestering you for money, demand proof that you do indeed owe the debt. If you are still unsure how to proceed, call the skilled bankruptcy attorneys from Client First Bankruptcy toll-free at 800-383-6004 for your initial complimentary consultation. We will take you through all necessary steps to protect your finances and your credit. For more information, log onto our new user-friendly and interactive site at www.clientfirstbankruptcy.com. Do not let aggressive debt collectors bully you. Filing bankruptcy stops those harassing phone calls.

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Herbalife Uber-Salesman Files Chapter 7 Bankruptcy

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Michael Burton and his wife Michelle filed Chapter 7 bankruptcy this past summer in a Plano, Texas, bankruptcy court. Bankruptcy court documents showed that the couple had assets of only $74,136 and over $7.15 million in liabilities, including more than $1 million owed to the IRS. So what, just who is this Michael Burton of whom we speak? Well, according to an interesting article in the New York Post by Michelle Celarier, Burton was a top salesman for the nutritional supplement/diet aid Herbalife. Burton claimed, in a 2000 Herbalife magazine, that he earned over $25,000 a month pitching the protein shakes. Not bad – an annual income of over $300,000. At the time of their bankruptcy filing, the Burton’s income had decreased to $13,000/month, they had less than $100 in the bank and their $1 million home in Florida had been foreclosed. They reportedly owned two guns, furs, jewelry and a 2012 BMW. “While the exact trigger for the filing isn’t clear, it came days after Herbalife banned the lucrative but controversial practice of buying and selling sales leads. Lead-generation firms troll for sales recruits and could be evidence of pyramid-scheme activity,” the article states. The move by the Los Angeles-based Herbalife to ban the purchase of leads came after activist investor Bill Ackman accused the company of being a pyramid scheme and placed a $1 billion short on the stock. The Burtons owed money to Centurion Media and Ehome Business Network, so-called Internet lead-generation businesses, court papers show. In a phone interview, Michael Burton told The Post, “’The bankruptcy has absolutely nothing to do with Herbalife” and blamed his economic struggles on his other businesses that failed. He also claimed the $13,000 per month income listed in court papers is not actually true.’” The filing may also leave Herbalife a little light, the article continues, since court documents show the couple owes the company an “unknown” amount of cash under a “personal guaranty of corporate distributorship agreement.” For experienced and knowledgeable Chapter 7 or Chapter 13 personal bankruptcy assistance, trust the attorneys from Client First Bankruptcy who have helped tens of thousands of satisfied clients discharge their overwhelming debt. For your free initial consultation, please call our knowledgeable and compassionate lawyers toll-free at 800-383-6004.  And log onto www.clientfirstbankruptcy.com for vital and timely bankruptcy information 24/7 so you can get the information you need at your convenience.  

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