Law Office of Michael K. Daniels

05/28/2024

Many clients or potential clients ask me about debt workout programs. My big picture take on them is that they are optimistic at best, crooks at worst. Here's a story about a debt workout company that has been shut down by 7 state attorneys general; customers of the company (Strategic Financial Solutions) may be entitled to a partial refund. They apparently paid themselves out of the customer payments before even considering trying to make settlement offers to the customer's creditors.

Strategic Financial Solutions is accused of fraud in a lawsuit by federal and state prosecutors.

09/28/2023

07/18/2023

We have all been on such a wild ride over the past few years. It's nice to have the ability to appear at hearings via Zoom, but of course you lose a bit of the personal touch.

I find that I'm pretty out of practice wearing what used to be my daily uniform! Today I had a final hearing, and here's what I looked like. Not bad for an old guy!

06/29/2023

We are on the eve (July 1, 2023) of a huge change in the New Mexico state exemption statute! This new law increases the amount of protection New Mexicans get from their creditors and from a bankruptcy trustee for assets they own. For example:

Protected home equity goes from $60,000 to $150,000

Protected vehicle equity goes from $4,000 to $10,000

Protected wild card (any asset; often cash in the bank) goes from $500 to $15,000

Bank garnishments must leave $2,400 for the debtor before the bank can send money to the garnishing creditor.

Many people either don't file bankruptcy at all or file the more expensive Chapter 13 bankruptcy in which they make payments to their creditors over 3-5 years, because they don't want to lose non exempt assets. Now that many more of their assets will be protected, they will have more choices!

We can thank a large group of bankruptcy debtor's attorneys, consumer rights attorneys and public assistance agencies for the 4 year battle over three legislative sessions it took to get this done. It was a war but these dedicated professionals powered through and really helped regular New Mexicans with excessive debt!

As always, statutes are complicated; make sure you consult an experienced bankruptcy attorney before committing to any kind of bankruptcy!

01/21/2023

INCREDIBLE SHOT 😍 Enjoy this stunning photo courtesy of Carol Stalun.

"I was so lucky to have two eagles land together," she said.

01/10/2023

In an interesting development, the US Department of Justice has embarked on a review of the federal regulations governing the discharge of student loans in bankruptcy as an undue hardship.

Originally (1978 Bankruptcy Code) student loans you paid on for 5 years were dischargeable in bankruptcy no matter what. It was later increased to 7 years. These provisions were unfortunately terminated by Congress in the 90's. Since then student loans are generally only dischargeable in bankruptcy if they are an "undue hardship."

Traditionally the student loans servicers, guarantors and lenders resist these hardship discharge lawsuits tooth and nail. The regulatory changes, however, are designed to loosen the (imho) absurdly tight interpretation of "undue hardship" by the government, and in the process discharge more student loans in bankruptcy than was previously the case.

It only works for recent bankruptcy cases (November of 2022) going forward, and none of us have details on exactly how the new interpretation will affect our clients. But it is an interesting time; I look forward to learning more about this.

06/05/2019

Here's an interesting take on a "save the house" Chapter 13 bankruptcy case from a mortgage broker.

Veteran mortgage broker talks about the positive impact that a bankruptcy filing can have on families and the laudable role of bankrutpcy lawyers.

05/15/2019

04/02/2019

From the Mike Daniels Blog

04/01/2019