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Category Archives: Government

State court better suited for foreclosure proceeding

Foreclosure proceedings were commenced and one of the residents of the building made a motion to remove the case to federal court as reported by the New York Law Journal in a July 23rd, 2012 news article.

However, the District Court remanded the case because the removal to federal court was improper as the Defendant did not have a proper reason for removing the case. The court held that there was no federal jurisdiction in this case because since this is a bankruptcy claim the complaint referred to the bankruptcy court.

The complaint referred to federal law. However this is not enough to raise a federal question where the federal court would have jurisdiction over this case. Furthermore, New York state courts are better equipped in dealing with foreclosures and mortgages in New York. In addition only two of the named Defendants approved the removal to federal court.

We at the law offices of Jayson Lutzky, P.C. can provide you with the information you need when considering filing bankruptcy or if you have already filed. If you need to file for bankruptcy and you are in need of legal advice, please feel free to call us at 1-800-660-5299 for a free initial consultation or visit our website www.BankruptcyNYC.com.

Bronx bankruptcy attorney comments on small American town filing for bankruptcy.

Another American city slowly resolves their financial troubles. Central Falls the smallest city in Rhode Island has their officials working hard to emerge from bankruptcy, as cited by Reuters on September 3rd, 2012. The small city had been facing financial issues for several years, which became one large financial issue. Before filing for bankruptcy the…Continue Reading

The Deep South finds itself in deep financial troubles

Alabama is working diligently to formulate a favorable plan to get Jefferson County’s financial woes under control, as reported by Reuters in an August 30, 2012 article. The state’s government is hopeful that a settlement plan will be established by the end of this year. Jefferson County filed for a Chapter 9 bankruptcy last year…Continue Reading

Electronic mortgage registry settles with Delaware

System designed for simplicity causes damages MERS stands for the Mortgage Electronic Registration System. This system is designed to facilitate the transfer and recording of mortgages with ease because it is used throughout the nation. On July 13, 2012, Thomson Reuters wrote that MERS settled a case with the State of Delaware. According to the…Continue Reading

County and its unsecured creditors want more time under bankruptcy protection

Jefferson County, Alabama, home of Birmingham, is currently under Chapter 9 bankruptcy protection. According to a Thomson Reuters August 1, 2012 article, it has been under bankruptcy protection since November 9, 2011. On September 28, 2012, it is supposed to present a plan to the court outlining its new financial plan, but the county would…Continue Reading

A lobbyist fighting against the banks

Lobbyists are very influential in Washington. They sway policymakers on all types of issues. Banks have a group of powerful lobbyists. Consumers are at a slight disadvantage, but one lobby highlighted in the May 31, 2012 edition of the New York Times lobbies for strict bank regulations, on the side of the consumers. The Times…Continue Reading

Libor scandal affects consumers too writes a Bronx bankruptcy attorney

After information regarding Libor manipulation surfaced, investigations began and fines were imposed on both sides of the Atlantic. Libor stands for London Interbank Offer Rate. This rate is calculated every weekday based on bank-supplied information and is one of the world’s most important numbers in finance. It determines how expensive it is for banks to…Continue Reading

U.S. commonwealth’s bankruptcy request for public pension fund denied

United States bankruptcy law says that commonwealths and states cannot file for bankruptcy. Recently, municipalities have done so. A June 5, 2012 NPR article discusses a commonwealth—the Commonwealth of the Northern Mariana Islands—whose pension fund wishes to file for bankruptcy. The impact of this decision could be enormous. The case rests on the issue of…Continue Reading

What do bank downgrades mean for consumers?

Over the past few years, the banking and financial industry has had its reputation tarnished. Every few weeks, in part to sovereign debt crises and shaky markets, banks have had their ratings downgraded. A June 22, 2012 NPR (via AP) article explains what this means for those besides governments and large corporations—consumers. The Federal Deposits…Continue Reading

Proposed law seeks to limit debt collectors in nonprofit hospitals

Patients in nonprofit hospitals have been reporting recently that they have been questioned and harassed by debt collectors. Often, this occurs even before treatment and debt collectors even solicit patients in the emergency room according to NPR’s June 27, 2012 article. Tore solve this issue, there have been congressional hearings called for by Senator Al…Continue Reading

Federal agency takes over pensions from large New York law firm during its bankruptcy

The Manhattan law firm Dewey & LeBoeuf recently filed for bankruptcy. Unfortunately, its pensions were underfunded by $80 million, according to a June 18, 2012 New York Law Journal article. The Pension Benefit Guaranty Corporation (PBGC) is the federal agency taking over Dewey and LeBoeuf pensions. The PBGC will provide benefits to Dewey and LeBoeuf…Continue Reading

Lenders obligated to provide credit score reports to rejected applicants

A policy began in July of 2011 requiring lenders to notify applicants if are rejecting a free copy of the credit score used to make the decision as mentioned in a July 9, 2011 New York Times article.  Additionally, applicants that are adversely approved, that is approved, but not at the best possible rates, must…Continue Reading

Federal loan limit increases

The New York Times reported in a January 26th, 2012 news article that the Senate approved for to raise the federal debt limit. This will allow President Obama to borrow $1.2 trillion in an effort to keep the government operating at the current level. The debt increase was approved in a close vote 52-to-44 with…Continue Reading

New bureau created to help trouble borrowers

  The Consumer Financial Protection Bureau, (CFPB)  is now accepting complaints, questions and concerns from mortgage lenders. In a January 27th New York Times article it was reported that the bureau which originally started in 2010 was recently reformed to better protect and inform consumers on risky loans. In addition the bureau’s goal is to…Continue Reading

Pennsylvania’s state capital heads to bankruptcy court

  Harrisburg, the capital of Pennsylvania filed for bankruptcy against the wishes of both the mayor and Governor Tom Corbett, as reported by The New York Times in an October 12th, 2011 news article. Harrisburg’s City Council apparently held a meeting discussing whether or not to declare the city bankrupt and after a 4-to-3 vote,…Continue Reading

Citibank Vice President pleads guilty to embezzlement

Citigroup’s vice president pleaded guilty to embezzlement charges as reported by the New York Law Journal in a September 7th, 2011 news article. The Vice President admitted to embezzling over $22 million and agreed to turn over majority of his estate which includes real estate in Brooklyn, Manhattan, and New Jersey, and numerous luxury cars.…Continue Reading

The New York Times criticizes President Obama for not nominating Elizabeth Warren as director of the new Consumer Financial Protection Bureau

The New York Times published an editorial criticizing President Barack Obama for passing over Elizabeth Warren as director of the newly created Consumer Financial Protection Bureau. “Consumers vs. Banks,” The New York Times, Sunday, July 24, 2011. Elizabeth Warren is a Harvard law professor and the main person behind the creation of the new Consumer…Continue Reading

Alabama County avoids bankruptcy but barely

  Alabama finally struck an agreement on how to deal with one of their county’s substantial debt, reported the New York Times in a September 16th, 2011 news article. The county’s debt was so high that if a bankruptcy would have been filed it would have gone down in American history as the biggest municipal…Continue Reading

Opting in to high debit card fees

Recently, the Consumer Federation of America made it a requirement for banks to give their patrons the choice to “opt in” or “opt out” of being able to overdraft their debit card transactions. If they “opt it” the bank will allow their debit card to still be processed even if there is not a sufficient…Continue Reading

New York Court Ruled that Collecting Agency Cannot Compel Arbitration on Behalf of Verizon & AT&T

A recent ruling, published in the New York Law Journal on September 9, 2011, has determined that the collection agency, Collecto, had no right to force arbitration on collection claims from AT&T and Verizon on former customers who failed to pay their bills. Judge Spatt declared that under the Fair Debt Collection Practices Act, the…Continue Reading

Federal Government to Sue Seventeen Mortgage Institutions

A September 3, 2011 New York Times article reported that the U.S. government is preparing to file suit against several  financial institutions that sold around $200 billion in mortgage-backed securities to Fannie Mae and Freddie Mac that later fell apart. These new lawsuits are the most recent legal action being taken against banks that are…Continue Reading

Bank of America Restructures Top Management

Following a steady decline in stock values over the past few years, Bank of America is letting go of two top executives. According to the September 7, 2011 “New York Times,” Sallie Krawcheck and Joseph Price are both being relieved from their top management level positions. Bank of America has struggled since the financial crisis…Continue Reading

Bronx Lawyer Discusses New Refinancing Plan

The White House may have plans to refinance loans owned by government-controlled mortgage companies Fannie Mae and Freddie Mac. These plans may help homeowners who are having difficulty paying high-interest rate mortgages. According to “A Lifeline for Homeowners”, published in the New York Times on August 26, 2011, a refinancing plan will seek to lower…Continue Reading

The Consumer Financial Protection Bureau is overseeing the terms of mortgages

The recently created Consumer Financial Protection Bureau is starting to oversee the terms of mortgages and looking for ways to make them better for borrowers, The New York Times reports. “Sorting Through Lending Costs,” The New York Times, Sunday, July 24, 2011. The Consumer Financial Protection Bureau (C.F.P.B.) is legally required by July 2012 to work…Continue Reading

How Bank of America is dealing with Countrywide Home Loans’ settlement

  Bank of America faced difficult challenges after acquiring in 2008 Countrywide Home Loans because this acquired bank was in trouble with the Federal Trade Commission for overcharging borrowers, The New York Times reports. “Countrywide to Distribute Settlement to Its Clients,” The New York Times, Thursday, July 21, 2011. According to the Federal Trade Comission…Continue Reading

The $108 million Countrywide settlement will be distributed

  Countrywide Home Loans, who has agreed to pay $108 million in a settlement for allegedly charging excessive fees, will finally get to distribute the money to affected borrowers, The New York Times reports. “Countrywide to Distribute Settlement to Its Clients,” The New York Times, Thursday, July 21, 2011. The Federal Trade Commission (F.T.C.) charged…Continue Reading

The New York Times supports a strong an independent Consumer Financial Protection Bureau

The New York Times published an editorial calling for a strong and independent Consumer Financial Protection Bureau. “Consumers vs. Banks,” The New York Times, Sunday, July 24, 2011. Congress created the new Consumer Financial Protection Bureau (C.F.P.B.) when it approved the Dodd-Frank law to overhaul financial regulations after the credit crisis. The editorial reminds readers…Continue Reading

The decision not to nominate Elizabeth Warren as director of the Consumer Financial Protection Bureau

    Many people expected Elizabeth Warren, a Harvard law professor and the main person behind the creation of the new Consumer Financial Protection Bureau, to be nominated the new director of this agency. But that did not happen, as President Barack Obama nominated Richard Cordray, former Attorney General of Ohio, to lead this bureau.…Continue Reading

Concerns about the foreclosure crisis in Spain

  In Spain, people are looking for ways to deal with a foreclosure crisis affecting this country, The New York Times reports. “Foreclosure Protesters in Spain’s Cities Now Go Door to Door,” The New York Times, Saturday, July 16, 2011. Many people consider Spain to have the harshest foreclosure laws in Europe. The borrower does…Continue Reading

Concerns about the success of efforts to protect consumers

Efforts in Washington to protect consumers are finding resistance. The most recent sign of resistance is the opposition from Republicans in Congress to the nomination of Richard Cordray as director of the newly created Consumer Financial Protection Bureau, The New York Times reports, “Former Ohio Attorney General to Head New Consumer Agency,” The New York…Continue Reading

A possible default and government downgrade will not significantly affect home loans nor credit cards

A possible government debt downgrade will not significantly affect home loans nor credit cards, The New York Times reports, “How a Debt Downgrade May affect Consumers,” The New York Times, Monday, July 26, 2011. Many are concerned that in Washington there will not be an agreement in time to avoid a possible default and debt…Continue Reading

A new Web site to help people decide when to collect Social Security is available

There is a new Web site that helps people decide when to collect Social Security, The New York Times reports. “When to Collect Social Security? A New Calculator,” The New York Times, Tuesday, July 26, 2011. For two years retired economics professor Russell Settle and his partner Jeffrey Miller worked on a new program to…Continue Reading

Bronx bankruptcy lawyer explains the Consumer Financial Protection Bureau

It is useful to understand in detail what is it what the recently created Consumer Financial Protection Bureau does and what it means for consumers. “Communications Involving Collection of Decedents’ Debts,” New York Law Journal, Thursday, August 11, 2011. On July 21, 2011 the Consumer Financial Protection Bureau opened after the signing of the Dodd-Frank…Continue Reading

Bronx foreclosure defense law firm informs that Wells Fargo has agreed to pay $85 million over mortgages

Wells Fargo & Company, under fire for allegedly falsyfying loan documents and approving subprime mortgages with higher interest rates, agreed to pay a fine of $85 million imposed by the Federal Reserve, The New York Times reports. “Wells Fargo Agrees to Pay 85 Million Over Loans,” Thursday, July 21, 2011. According to the Federal Reserve,…Continue Reading

Bronx bankruptcy law firm concerned about how investors and consumers will react to a possible government debt downgrade

Financial advisers are concerned that the talk in Washington of a federal budget crisis and possible default will make people overreact to these current problems. But at the same time, they warn investors and consumers to act very carefully. The New York Times reports. “How a Debt Downgrade May affect Consumers,” The New York Times,…Continue Reading

Bronx bankruptcy law firm advises people with stocks and bonds worried about a possible government debt downgrade

People who have stocks and bond investments, especially retirees and pre-retirees, are getting anxious about talks in Washington of a federal budget crisis and possible default. Financial advisors are recommending a cautious approach to deal with stocks and bond investments, The New York Times reports. “How a Debt Downgrade May affect Consumers,” The New York…Continue Reading

Bronx bankruptcy law firm informs that a possible default and government downgrade will not significantly affect money market funds

A possible government debt downgrade will not significantly affect the money market funds, The New York Times reports, “How a Debt Downgrade May affect Consumers,” The New York Times, Monday, July 26, 2011. Many are concerned that in Washington there will not be an agreement in time to avoid a possible default and debt downgrade.…Continue Reading

Bronx bankruptcy lawyer discusses settlement between credit card companies and government

Two major credit card companies have reached a settlement with the federal government in regards to a case filed against the companies back in October. The New York Law Journal reported in a July 21st, 2011, article that an Eastern District Judge had approved the settlement agreement reached between the federal government and Visa and…Continue Reading

Bronx bankruptcy lawyer comments on MERS legal problems

Mortgage Electronic Registry System faces more legal issues dealing with the company’s loan and foreclosure processes. According to a July 23rd, 2011 New York Times article, banking executives and state attorney generals have begun negotiating a settlement agreement to end the legal battles surrounding the company. As of now, it is unclear how much protection…Continue Reading

Bronx foreclosure defense law firm shares news about a bank fraud case: former chairman of mortgage firm sentenced to 30 years

Lee B. Farkas, former chairman of mortgage firm Taylor, Bean & Whitaker, is being sentenced to 30 years in prison for bank fraud, The New York Times reports. “Former Chairman of Mortgage Firm Sentenced to 30 years in Bank Fraud,” The New York Times, Friday, July 1, 2011. Mr. Farkas was accused in federal court…Continue Reading

Bronx financial attorney comments on Thomas J. Curry to lead the Office of Comptroller of the Currency

  The New York Times reported in a July 2nd, 2011 article that President Barack Obama nominated Thomas J. Curry to lead the Office of Comptroller of the Currency. The job entails overseeing hundreds of national banks, both small and large. It is expected that the Republican Party will grill Mr. Curry on his commitment…Continue Reading

Bronx financial and property attorney comments on mortgage payment grace period

Unemployment numbers are still up and housing prices are still down, which has led to Obama’s administration having to go back to the drawing boards. The New York Times report in a July 8th, 2011 article, that Obama’s administration has implemented that all loans that are presently insured by the federal government will allow unemployed…Continue Reading

BRONX BANKRUPTCY ATTORNEY COMMENTS ON GOLDMAN SACHS POTENTIONAL LOAN VIOLATIONS

An anonymous letter sent from a current employee sparked an investigation against Goldman Sachs, reported The New York Times in a May 26th, 2011, article. The Federal Reserve Bank of New York is currently conducting an investigation to see if Goldman Sachs company was systematically rejecting borrowers in an attempt to lower their loan payments…Continue Reading

Bronx bankruptcy attorney comments on same-sex couple filing a bankruptcy

“In this court’s judgment, no legally married couple should be entitled to fewer bankruptcy rights than any other legally married couple,” declared Judge Thomas B. Donovan in his written opinion on June 13th, 2011. Judge Donovan was presiding over the bankruptcy case of Gene Douglas Balas and Carlos A. Morales, a legally married same-sex couple.…Continue Reading

NEW YORK LAW FIRM NOTES NEW RULE THAT PROTECTS FEDERAL BENEFITS OF DEBTORS FROM TEMPORARY GARNISHMENT

Good news for troubled debtors with federal benefits. Under a new rule effective May 1, 2011, financial institutions must follow certain procedures if they wish a court to order the garnishment of bank accounts of debtors with deposited federal benefits, the New York Law Journal reports. “New Rule on Garnishment, Venue Provisions, Statute of Limitations,”…Continue Reading

Bronx financial attorney comments on foreclosure prevention programs and the issues they face

Unemployment is currently the biggest contributor to property foreclosures, reported The New York Times in a June 10th, 2011, article. Since President Obama took office he has been trying to stabilize the number of foreclosures. In 2009, Obama started the Home Affordable Modification Program as a primary foreclosure prevention tool. The program was designed to…Continue Reading

Bronx financial attorney discusses Elizabeth Warren’s Congressional hearing

Elizabeth Warren, the special advisor on the Consumer Financial Protection Bureau, faced heavy accusations at her May 24th, 2011, Congressional hearing regarding her possible misleading testimony that she gave at a hearing in March, as reported in a New York Times article published May 25th, 2011. Ms. Warren defended herself at the hearing against the…Continue Reading

Bronx Financial Lawyer blogs about Goldman Sachs getting subpoenaed by Manhattan District Attorney

Goldman Sachs’ luck doesn’t appear to be changing any time soon. As reported by The New York Times on June 3rd, 2011, the Manhattan District Attorney has issued a subpoena against the Wall Street investment bank. Currently, the Manhattan district attorney is conducting an investigation on the role Goldman Sachs potentially played in the financial…Continue Reading

Bronx lawyer warns consumers to be careful with unauthorized phone charges

  Cramming, or adding unauthorized charges on consumers’ phone bill, is an illegal practice that have existed for years, and yet it is more common than what people know, as explained in an article by the AARP. “Well, I’ll Be Crammed,” AARP, May/June 2010. After the mandated breakup of Ma Bell in 1984, third-party billing…Continue Reading

NEW YORK BANKRUPTCY LAW FIRM HAPPY THAT THE FEDERAL GOVERNMENT SUES DEUTSCHE BANK FOR MORTGAGE FRAUD

The U.S. government is suing Deutsche Bank for allegedly committing fraud for illegally benefiting from a program that insured mortgages, the New York Law Journal reports, “U.S. Charges Mortgage Fraud by Bank,” New York Law Journal, Wednesday, May 4, 2011. Southern District U.S. Attorney Preet Bharara filed this civil complaint against Deutsche Bank and MortgageIT…Continue Reading

Bronx bankruptcy attorney shares news about a plan to protect homeowners from foreclousre

The New York Times reports that state Attorneys General are proposing a very helpful plan that would protect struggling homeowners in a trial modification. “A Plan to Make it Harder for Banks to Foreclose on Homeowners,” The New York Times, Saturday, March 5, 2011. According to the plan, if the borrower has made three payments…Continue Reading

Bronx bankruptcy attorney shares news about a plan to protect homeowner from forclosure

The New York Times reports that state Attorneys General are proposing a very helpful plan that would protect struggling homeowners in a trial modification. “A Plan to Make it Harder for Banks to Foreclose on Homeowners”, The New York Times, Saturday, March 5, 2011. According to the plan, if the borrower has made three payments…Continue Reading

New York bankruptcy law firm views about the consumer financial protection bureau

  What is the Consumer Financial Protection Bureau? The Consumer Financial Protection Bureau is an entity that has the authority to protect consumers by issuing and enforcing rules related to their purchasing decisions. This bureau, a new division of the Federal Reserve System, was recently created by the Dodd-Frank Wall Street Reform and Consumer Protection…Continue Reading

New York bankruptcy lawyer happy that same-sex couples will be allowed to file joint petitions for bankruptcy

  In one bankruptcy case, the U.S Trustee motion asked the judge to dismiss a joint petition by a same-sex couple because their filing was against the Federal Defense of Marriage Act (DOMA). However, the bankruptcy judge denied this motion. “Trustee’s Motion to Dismiss Petition by Same-Sex Couple Rejected,” New York Law Journal, Friday, May…Continue Reading

New York lawyer shares news on mortgage regulated law suits: JP Morgan close to settlement with the Securities and Exchange Commission

JP Morgan Chase & Company, under investigation for its handling of mortgage-linked securities by the Securities and Exchange Commission (SEC), is negotiating a settlement with this agency, the New York Times reports, “JPMorgan in Talks to Settle S.E.C. Inquiry Into Securities,” The New York Times, Saturday, May 7, 2011. JP Morgan made public this information…Continue Reading

Former Chief Executive Of Freddie Mac Under Investigation

Richard F. Syron, the former chief executive of Freddie Mac, may be facing a civil action as part of a government investigation against this mortgage group and its sister company, Fannie Mae, for their disclosure practices, the New York Times reports. “Ex-Chief of Freddie May Face Civil Action”, Wednesday, March 16, 2011. The Securities and…Continue Reading