Grossbart on Bankruptcy Law

Harrisburg PA Files Petition of Bankruptcy

The City Council of Harrisburg, Pennsylvania took the extraordinary action of filing for chapter 9 bankruptcy on October 12, 2011 “by fax”. Harrisburg Mayor Linda D. Thompson shortly thereafter filed papers that requested an emergency hearing to seek dismissal of the bankruptcy case, saying the filing approved by four city council members was “unauthorized.” The petition stated the city is “in imminent jeopardy through six pending legal actions by creditors” that are related with the city’s failed trash incinerator project.  Chapter 9 allows municipalities to restructure their debt like a chapter 11 but differs in one major aspect in that a bankruptcy judge can’t appoint a trustee to administer the municipality. 

 

Robo signing is not just a foreclosure problem!

Robo signing is when the signor of an affidavit swears what is in the affidavit is true without reading or having personal knowledge of what they are signing (also not reading the affidavit). We have all read for over one year how this practice has been rampant in the foreclosure world. Apparently this practice is also true in debt collection cases. More often when a debt is not paid, it is sold to a debt buyer for a fraction of the debt’s face value. The business model for the debt buyer apparently does not include satisfying the legal requirement of also obtaining personal knowledge of the debts' history so they can file and win a collection case. Word to consumers – challenge the affidavit.