Here is the link to the article: http://seattletimes.nwsource.com/flatpages/businesstechnology/loanmodification.html

Over the past several months, we have observed that the attitude of major lenders has changed toward loan modifications. In late 2007 through 2008, lenders seemed to respond fairly well. However, in 2009 through 2010, lenders seem to be very slow in responding.  As a result, homeowners have become very frustrated with the process.

It is not uncommon for a lender to take several months to respond and will often times tell the homeowner that they did not receive the information or that the file was “lost” or that the file has been reassigned.

Homeowners seeking a loan modification need to be aware that the process sometimes take a several months and that at the end of the road, there is no guarantee what will happen. As you can see from the Seattle Time Article, some lenders modify a much smaller percentage of residential loans than others.  Therefore, the likelihood of any particular homeowner modifying their exist loan will vary greatly depending on the lender and the homeowner’s own circumstances.

Christopher A. Benson

Law Offices of Christopher A. Benson, PLLC

1814 S. 324th Pl

Federal Way, WA 98003

(253) 815-6940

 The latest development is that Plaintiff Creditors are now setting up a Motion for Default and in the Alternative a Motion for Summary Judgment at the same time.

 What this means is that even if the Defendant files their Notice of Appearance and Answer with the Court within 20 days of service (which prevents a Default Judgment from being entered against the Defendant) that the alternative motion for Summary Judgment will still go forward and be heard on the scheduled date.

 If the Defendant does not comply with Civil Rule 56 (and the local civil rules if applicable), the Defendant will probably lose the motion on the scheduled date and a Judgment will be entered against the Defendant.

 If you are served with a lawsuit, you need to contact an attorney right away and provide the attorney with all documents received.  There may be a Motion for Default and in the alternative, a Motion for Summary Judgment scheduled against you.

Christopher A. Benson

Bankruptcy Attorney

Law Offices of Christopher A. Benson, PLLC

1814 S. 324^th Pl.

Federal Way, WA 98003

(253) 815-6940

(253) 326-5572

www.cbenson.com

cbenson@cbenson.com

Over the past few months our firm have seen an increase in people wanting to “get their lives organized” both personally and financially for peace of mind.  As a result, we have seen an increase in people meeting with us to prepare Living Trusts. 

A great thing about having a Living Trust is that they are flexible enough to be a valuable a benefit to the vast majority of people regardless of income, assets or number of children.

 Our website contains a lot of information concerning Living Trusts and Frequently Asked Questions. Please look around our site and if you have any specific questions, please send us an email for follow up.

 Give Us A Call to Schedule an appointment to get your life organized as well.

 Christopher A. Benson, Attorney

Law Offices of Christopher A. Benson, PLLC

1814 S. 324th Pl.

Federal Way, WA 98003

 (253) 815-6940

cbenson@cbenson.com

www.cbenson.com

The following happened to a client this week:

Client X has an excellent credit score with no late payments. Client X has a bank account with a national bank.  Client X also has a credit card with the national bank.

Client X has had the credit card and the bank account with the national bank since the 1970’s. No late payments–Ever.

A couple of days ago, Client X called the national bank to simply “inquire” whether the interest rate on their credit card could be reduced in light of Client X’s excellent credit history and long term relationship with the bank. Client X had heard about people negotiating lower credit card interest rates and thought there would be no harm in asking.

The representative from the bank said “No.”  Client X hung up the phone and thought “Well…there’s no harm in asking.” Unfortunately, Client X was wrong. Very wrong.

The next day, Client X went online to pay some bills through their bank account.  Much to the client’s surprise, the bank had placed a “Hold” Client X’s entire checking account and terminated Client X’s credit card.

Client X thought someone had stolen their identity and possibly made some unauthorized purchases. Client X immediately contacted their bank.

The bank representative told Client X that under a new Federal Law, that if a person asks a bank to change their interest rate, the bank can consider the person “a credit risk” and terminate the person’s credit cards and freeze the person’s bank account.

Client X was shocked. So, client X went to the local branch of the national bank to find out what was going on.

After 3 1/2 hours at the local bank branch, client X was able to get the “freeze” on their checking account removed; however, the bank stood by its decision to cancel the client’s credit card — despite Client X having the credit card account since the 1970’s— simply because the client asked the bank to reduce the interest rate on their credit card.

Client X then went to another bank to open a new checking account.  The new bank gladly accepted the transfer of Client X’s funds and opened a new account and credit card for Client X.  The new bank verified that the new Federal Law existed and that credit card companies (and banks) can cancel a person’s credit card account by a person simply asking the credit card company to reduce the interest rate for the credit card.

We are in the process of researching the new law and when we find it, we will post it on the website.

In the meantime, be aware that if you ask your credit card company to reduce your interest rate, the same thing may happen to you.

More to follow.

Christopher A. Benson

1814 S. 324th Pl.

Federal Way, WA 98003

(253) 815-6940

Collection & Credit Card Companies and the Lies They Tell

I know this may come as a shock to some, but……Credit Card and Collection Companies will tell you “lies” to try to scare you into making a payment they are also down-right rude and insulting on several occassions.

Here is the reality….take care of you and your families’ needs first.  People are so concerned about “what will happen to their credit score” that sometimes leads them to make bad personal financial decisions.  Take a step back and look at it this way….who cares about a computer generated number that constantly changes (Your Credit Score) if you don’t have enough money each month to buy food, make your housing payment or pay for medical or car insurance?

Don’t be bullied into making a credit card payment when you do not have the money to actually make the payment. Don’t take out a 300% pay day loan to make a payment on a different credit card.

Based on recent phone calls from clients, here seems to be the current trends in “lying.”

1. Lie Number 1: “If you don’t make a payment today, we will assign the debt to a 3rd party collection compay and then you will not be able to discharge the debt.” 

                   This is FALSE therefore it is a lie and it seems to be very popular right now.

                    While it is true that certain types of debt is non-dischargeable in bankruptcy, it does not matter who owns the debt. The issue what type of debt is it?  For instance, student loans, fraud, child support, drunk driving accident and other types of debt are not dischargeable.   However, regular credit card debt (absent fraud) is dischargeable even if it assigned to a 3rd party collection agency.

2. Lie Number 2: “If you don’t make a payment on your credit card today, we will turn the case over to the prosecutor in your County and you could go to jail.”

                This is FALSE therefore it is a lie. Once again, absent fraud by you, the debt is dischargeable and you will not go jail. I have been representing people for over 18 years and handled well over 1,800 bankruptcy cases and this has never happened.

3. Lie Number 3: “If you don’t make a payment on your credit card today, we can garnish your wages starting on Monday.”

                 This is FALSE therefore it is a lie.  In Washington, in order to garnish a person’s wages, there must first be a lawsuit filed and a judgment entered.  Without the judgment, a creditor cannot automatically garnish your wages unless it is a federally guaranteed student loan in default.

_____________________________

Here is an excerpt from the Washington State Attorney General Website: http://www.atg.wa.gov/ConsumerIssues/Credit/CollectionAgencies.aspx#Cannot

A Collection Agency Cannot:

• Publish lists of people who owe money;
• Use a badge or uniform of a law enforcement agency or claim to be from a government agency;
• Use documents which look like court or government documents, telegrams, or emergency messages;
• Make collect phone calls or send collect telegrams;
• Violate postal regulations;
• Threaten to add charges that aren’t legal, for example, an interest rate higher than the rate in the original contract;
• Garnish your wages or take your home or possessions without a court judgment, however, an exception exists for federally guaranteed student loans that are in default. A federal law provides for an administrative garnishment up to 10% of the debtor’s pay; or
• Threaten to have a debtor put in jail for bad debt.

For more information, read RCW 19.16.250, which identifies and describes in greater detail the prohibited practices of debt collection agencies. A copy of Washington state laws is available at most public libraries.

________________________________________________

Please don’t take the above to think that creditors cannot take actions to collect the debt.  Since January 2010, we have seen a dramatic rise in lawsuits filed quickly by creditors to attempt to obtain judgments as soon as possible. If you do not respond to the lawsuit correctly and file the required pleadings with the court, the creditor can obtain a judgment against you in 20 days.  At that point, creditors can garnish wages, bank accounts and file liens against real estate.

If you find yourself being harrassed by creditor calls and don’t know what to do, please contact our lawfirm or visit the Attorney General website.

Chapter 7 bankruptcy

Chapter 13 bankruptcy

Law Offices of Christopher A. Benson, PLLC

1814 S. 324th Pl.

Federal Way WA 98003

(253) 815-6940

Over the past few months, many people have tried to modify their existing home loans.  Unfortunately, most people have run into long delays concerning their lender.

People are under the impression that if they stop making their house payment that it will somehow “speed up” the lender’s decision process.

The reality is that missing house payments does not “speed up” the process at all.  What it really does is put the homeowner at risk of having their house foreclosed.

Alot of people I have met with lately have missed their house payments and then had the lender deny their request for a loan modification.  Now, those same people are 6, 7, 8, 9 months are more past due and facing a pending foreclosure of their home.

Here is the good news: By filing for Chapter 13 bankruptcy protection, a homeowner can propose a plan to cure the past due arrearage over 36 months, avoid foreclosure and save their house!  That gives a person 3 years to make up the missed payments and save their house.

Give us a call for a free consultation.

Law Offices of Christopher A. Benson

1814 S. 324th Pl.

Federal Way, WA 98003

253.815.6940

1-800-956-4811

To read the full text of SSB6749, click on the link below:

http://apps.leg.wa.gov/documents/billdocs/2009-10/Pdf/Bills/Senate%20Passed%20Legislature/6749-S.PL.pdf

In Washington, an insurance company can have your license suspended if there is a claim against you and you did not have insurance at the time of the collision.

Filing for Chapter 7 or Chapter 13 Bankruptcy protection is a way to get your drivers license back in this situation.

Give us a Call. 1-800-956-4811

Law Offices of Christopher A. Benson

1814 S. 324th Pl.

Federal Way, WA 98003

(253) 815

To read the full text of the bill, which still requires the Governor’s signature, please follow this link:

http://apps.leg.wa.gov/documents/billdocs/2009-10/Pdf/Bills/Senate%20Passed%20Legislature/6831-S.PL.pdf

A. IRS Taxes are dischargeable in bankruptcy if a 3-Part Test can be satisfied:

          1. If the taxes owed are for a taxable year more than 3 years from the date of filing bankruptcy; and

           2. The tax return has actually been filed for at least 2 years prior to filing bankruptcy; and

            3. The IRS has assessed the taxes at least 240 days prior to filing bankruptcy.

          If all 3 prongs of the test are satisfied, the tax debt can be discharged in bankruptcy.

If all 3 prongs of the test are not satisfied, you can still file a Chapter 13 Plan to provide for payment of the tax obligation spread out over 3 years.

Bankruptcy protection is a useful legal right that people can use to get their lives back on track.

For more information call 1-800-956-4811