Every year, more than 1,000,000 Americans file for protection under Federal bankruptcy laws. Although some bankruptcy claimants are deemed as credit abusers and/or considered financially irresponsible, many hardworking individuals and businesses can succumb to financial difficulty, and face irreperable economic crisis. Bankruptcy is designed as a legal option to help resolve such a crisis, and act as a financial life preserver for those drowning in debt. To discuss your bankruptcy options, or other areas of recourse that might be available to you, contact a qualified bankruptcy attorney who can advise you of your legal rights as stated under Bankruptcy Law and federal Bankruptcy courts.

Chapter 7:
Chapter 7 cases are commonly referred to as straight bankruptcy or liquidation cases, and may be filed by an individual, corporation, or a partnership. A Chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in Chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain "exempt" property; but a trustee will liquidate the debtor's remaining assets. Accordingly, potential debtors should realize that the filing of a petition under Chapter 7 may result in the loss of property.

Chapter 13:
A Chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. Chapter 13 permits individuals to keep their property by repaying creditors out of their future income.  It is not available to corporations or partnerships. After completion of payments under the plan, Chapter 13 debtors receive a discharge of most debts.

Foreclosure:
Foreclosure is the legal proceeding in which a bank or other secured creditor sells or repossesses a parcel of real property (immovable property) due to the owner's failure to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust". Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, it is typically said that "the lender has foreclosed its mortgage or lien".

A Foreclosure by Sale ends in the posting of a sign advertising the auction of your home on the sale date. The only ways to stop a foreclosure are full payment of the arrearage, or the filing of a Chapter 13 bankruptcy. Full Payment: If you are able to obtain and tender the full amount of your arrearage, including fees and costs, you can stop the foreclosure of a standard residential mortgage. Most people lack the money to make full payment. This process stops the foreclosure and allows you to repay your arrearage over a three-to-five year period. The arrearage is paid through a court-appointed official, while you resume your regular monthly payments to the bank in order to keep your home. A Chapter 13 can be filed at any time prior to the law day or sale date, and it is often the only avenue to save your home.

Bankruptcy Fraud:
Bankruptcy fraud is a business crime of filing for bankruptcy with criminal intent, that is with the intention of evading payment for goods even though the buyer has funds that could be used to pay for them, or accepting payment for goods or services but not supplying them. Common types of bankruptcy fraud include petition mills, false oath, concealment of assets, and fraudulent conveyance. Multiple filings are not per se fraudulent; as with all things in the law, it depends on the circumstances. Bankruptcy fraud should be distinguished from strategic bankruptcy, which is not a criminal act (but may prejudice a judge against the filer if there is evidence that bankruptcy is being used strategically).

Debt Consolidation:
Contrary to popular belief, debt consolidation is not a loan. Debt consolidation is a process in which debt is restructured into one low monthly payment. It further enables a consumer to reduce the amount owed and thereby eliminate interest. Very often a consumer can detect warning signs of being in too much debt long before any collection notices are received. If more than two of the following signs apply to you, you are probably in too much debt:

• You have begun charging to your credit card essential expenses like food and daily expenditures
• You are making only the minimum payments on your credit cards each month
• You are near the limit of your credit cards
• You have too many credit cards
• You are unsure how much money you owe creditors

Chapter 11:
Chapter 11 is typically used for business bankruptcies and restructuring. It is not commonly used by individual consumers since it is far more complex and expensive to pursue. It allows businesses to reorganize themselves, giving them an opportunity to restructure debt and get out from under certain burdensome leases and contracts. Typically a business is allowed to continue to operate while it is in Chapter 11, although it does so under the supervision of the Bankruptcy Court and its appointees.

If you or someone you know needs the assistance of an experienced Seattle Bankruptcy Lawyer, call Attorney Marc S. Stern today at 866-822-0103, or complete the contact form provided on this site to schedule your initial consultation.

Professional Profile

Court Admissions:

• United States Supreme Court
  
• United States Court of Appeals for the 9th Circuit
  
• United States Court of Appeals for the Armed Forces
  
• United States District Courts for the Western and Eastern Districts of Washington
  
• United States Bankruptcy Courts for the Western and Eastern Districts of Washington 
• Supreme Court of the State of Washington

Bankruptcy and Insolvency Practice

• Representation of Creditors and Debtors in Possession in Chapter 11 Proceedings.
  
• Representation of creditors and debtors in Chapter 7 and 13 proceedings.
  
• Representation of trustees in Chapter 7 liquidations.
  
• Representation of creditors and debtors in general litigation in the bankruptcy court, including dischargeability, claims objections, cash   collateral matters, fee disputes, and general claims. Fraud investigation and pursuit.
• Representation of State Court Receivers in King County Superior Court and service as a Receiver in King County Superior Court. 
• Board Certified Business Bankruptcy Specialist , Commercial Law League Academy of Commercial and Bankruptcy Law Specialists 1993 -   Present. (Now, American Board of Certification)

Other Legal Experience

Civil Litigation of commercial disputes and collections in Washington State and Federal District Court. Entity formation, and general business including litigation of commercial issues. Tax issues, particularly collection defense, and responsible corporate officer liability. Real Estate matters. Asset Protection and Business Planning.

Professional Experience

• 1981 to Present - Solo Practice, King County, Washington
• 1979 to 1981 - Associate, Bruce T. Thurston
• 1978 to 1979 - Contract Attorney, Ritchie and Thurston and other firms in Seattle

Significant Professional Organizations and Offices Held

• Washington State Bar Association Young Lawyers Division
    Trustee - 1985 - 1988
    Division Secretary 1987 and 1988.
    CLE Committee 1981 - 1985

American Bar Association

• American Bar Association
  •   GP/Solo Division
    •   Bankruptcy Committee Co-Chair, Computerization of Bankruptcy Subcommittee 1992
    •   Advocacy Vice-Chair, Bankruptcy Committee, 1993
    •   Publications Vice Chair 1999
    •   Programs Chair Bankruptcy Committee 2000
    •   Co- Chair - Bankruptcy Committee 2001 – 2007 Chair 2007 – present
    •   Council 2006 – Present
    •   Membership Committee 2004 – 2006
      
      
      
• Joint Ad-Hoc Committee on Bankruptcy Courts and Structure 2001 – Present
  • Task Force on Attorney Discipline and Reasonable Inquiry 2005 - present
  • Working Group on Scope of Reasonable inquiry 2005
  • Working Group on Best Practices 2006 – present
  • Working Group on ABA Technical Corrections

Publications

• Office Sharing 1989 De Novo 
• A Bankruptcy Horror Story 1992 General Practice Newsletter (WSBA)
  
• Changes in Discharge 1992 General Practice Newsletter WSBA 
• Scientific Client Selection - ABA Law Practice Management Counselor's Computer and Management Report - January 1993, republished   Seattle/King County Bar Bulletin March 1993, Updated and published Debt, March/April 2006, Commercial Law League 3
  
• The Joys of E-Filing - Fall 2001
• Debts that Can Follow You to the Grave – GP|Solo March/April 2005. Vol. 22 No. 3
  
• Contributing Author. Report of the ABA Task Force on Attorney Discipline of the Ad Hoc Committee on Bankruptcy Court Structure and   Insolvency Process on the Scope of Inquiry required pursuant to §707(b). 61 Business Lawyer 697 (2006)
  
• Letters for Bankruptcy Lawyers, co-author. ABA Press, 2005
  
• My Modem Made Me Do It. GPSolo Magazine - October/November 2005 Vol. 22 No. 7
  
• Chapter on Engagement Letters, Attorney Liability in Bankruptcy - co-author, ABA Press 2006 
• Reaffirmation under BAPCPA, Did Ride-Through Survive? Norton Bankruptcy Law Advisor, January 2007 Issue 1 - Page 6

Reported Bankruptcy Decisions

• In Re: Puget Sound Plywood, Inc., 924 F.2d 955; (9th Cir 1991)
  
• In Re: Shorb, 101 Bankr. 185; (9th Cir BAP 1989)
  
• In Re: Borste, 117 Bankr. 995; (Bkcy WDWA 1990) 
• In Re: Western Farmers Association, 13 Bankr. 132 (Bkcy, WDWA 1981)
  
• Mutual Sec. Financing v. Unite, 68 Wash. App. 636, 847 P.2d 4, Wash.App. (1993)
  
• American Discount Corp. v. Shepherd 129 Wash. App. 345, 120 P.3d 96 (2005) aff’d 156 P.3d 858 (2007)
  
• In re Chappell _____ BR _______ (9th Cir BAP 2007) 
• In re Marriage of Mahalingam, 21 Wash.App. 228, 584 P.2d 971 (1978)(intern - argued).

Education

• J.D. University of Idaho, College of Law, Moscow, ID December 1977
• A.B. cum laude Washington University , St. Louis , MO May 1975 Majors in Anthropology and Political Science
• Seattle Central Community College
  • Courses in Accounting and Marine Engineering 1980 - present