Bankruptcy Stories

The Bank Tried To Take Everything - Even Land It Didn't Have A Real Claim To

A business owner amassed significant debt when his small business failed due to tough economic times. Some of this debt was owed to the local bank.

When it became clear that the business owner was in a tough financial situation, the bank set its sights on taking his home through foreclosure. The bank also tried to foreclose on some adjacent lots that belonged to the business owner.

The business owner came to Nicolet Law Office and we immediately began to investigate. We found that while the bank had a mortgage interest in the home, it did not have a mortgage on the adjacent lots, meaning it should not have made a claim against them. We filed a counter suit for our client, which resulted in a dismissal of the bank's claim on the adjacent lots and a monetary settlement for our client (due to the bank's improper actions regarding the adjacent lots).

To help our client address his debt and the foreclosure action against his home, we advised him in filing for Chapter 7 bankruptcy. This discharged his personal debt, including tax debt, and allowed him to take care of his mortgage payments.

Our client was extremely grateful that we helped him stand up to the bank when it tried to take away not only his home, but also land that it had no rightful claim to.

A Bank Wrongfully Accused Our Client Of Fraud And Objected To Debt Discharge - We Made It Right

A small-business owner's company failed, and the owner was left with debt as a result. Seeking to rebuild and get a fresh financial start, the business owner and his wife turned to Russell Nicolet for advice on bankruptcy.

Russell helped them file for bankruptcy, but the process became complicated when a bank that held debt that would be discharged in the bankruptcy filed an objection to the discharge.

The bank claimed that years ago, our clients made fraudulent financial disclosures to obtain a loan. We strongly disagreed with this assertion; our clients had a good working relationship with the bank spanning nearly a decade, and they gladly provided the bank with any documents it wanted when it requested them. The bank held firm in its assertion, and the case headed to trial in federal court.

Russell presented evidence and put forth a solid legal argument on behalf of our clients. The court ruled that our clients had not fraudulently obtained the loan and that the bank's objection to the discharge of debt could not stand. Our clients were able to proceed with bankruptcy and obtain the debt relief they sought.

A Previous Attorney Couldn't Save Their Home, But We Did

Homeowners fell behind on their house payments, and the property was about to be sold out from under them. They had previously gone to an attorney for help. That attorney filed Chapter 13 bankruptcy on their behalf, but it was unsuccessful and the sale process continued.

With their house about to be taken away, the homeowners enlisted our help. Russell Nicolet filed a new Chapter 13 bankruptcy for the clients, making sure that all of the filings were in order and that everything needed for this filing to be successful was in place.

When Russell filed the new Chapter 13 petition, a legal mechanism called the "automatic stay" went into effect. This prevents creditors from contacting debtors and halts proceedings such as the sale of homes in foreclosure. It stays in place unless the court gives approval for sales to go forward.

The bank that held the mortgage was determined to make the sale happen. It aggressively tried to keep things moving and filed a motion claiming that the automatic stay was not in effect. Russell fought off the bank's tactics, keeping the automatic stay in place and the sale of the home from proceeding, and eventually found a way for our clients to save their family home.

Just Before His Car Was Repossessed, We Stepped In And Helped Him Keep It

Our client fell behind on vehicle payments, and the vehicle was just days away from being repossessed. The client needed the car to get to work, provide for his family and handle day-to-day tasks.

Recognizing this, we filed Chapter 13 bankruptcy for him. This gave the client time to catch up on his car payments, prevented the car from being repossessed and resolved all other debt issues the client was facing.

An Endless Cycle Of Paycheck Garnishment Left Her Trapped. We Helped Her Escape.

Due to a stretch of unemployment, our client was overwhelmed by garnishments that creditors had put in place. Even after she found steady work, so much of her paycheck was garnished that she could not get back on her feet.

Needing help removing the garnishments and rebuilding, she came to us for advice. We determined that Chapter 7 bankruptcy was the best option, and we filed the petition for her. This resulted in a stop to the garnishments, creditors paying back some past garnishments and the discharge of her remaining debt.

With the garnishments removed and other debt eliminated, she was finally able to move forward with her life and rebuild her financial well-being.

The Family Home Was Saved, And Additional Debt Discharge Allowed Them To Rebuild Their Finances

Job loss led our clients to fall behind on their home loan, and they were at risk of losing their house to foreclosure. By filing Chapter 13 bankruptcy, we gave them the breathing room they needed to get caught up on their mortgage payments. The bankruptcy process also got rid of their unsecured debt (credit card debt, medical bills, etc.) and removed a second mortgage that was further draining their financial resources.

A Special Wisconsin Debt Relief Tool Helps A Client Stuck With High Interest Payday Loans

During difficult financial times, our client turned to predatory payday lenders to make ends meet. While this offered short-term financial help, in the long run it trapped him in an endless cycle of debt. He could make only the minimum payments on the loan due to the high interest rates, and he was never able to pay it down.

When he came to Nicolet Law Office, we recognized that he could use a special Wisconsin-specific process (called Chapter 128 debt amortization) that is not bankruptcy, but offers similar debt relief. By using Chapter 128, our client was able to end the interest on the loans and pay off the remainder of his debt through a 36-month payment plan.