August 2015 Archives

Foreclosure filings on the rise for July 2015

During the month of July, nearly 135,000 foreclosure filings occurred across the nation. Minnesota residents may know that the foreclosure activity represents bank repossessions, scheduled auctions and default notices. The number reflects a 7 percent increase from June and a 14 percent increase from July 2014, according to a recent report.

Collection actions with Minnesota bankruptcy cases

Whether a debtor files for a Chapter 7 or Chapter 13 bankruptcy, the court automatically issues a stay to all creditors to prevent any further collection actions. This includes any phone calls, court proceedings, bank levies and wage executions. With respect to debts that are secured by property, however, a secured creditor may request to bypass the automatic stay to enforce its lien through foreclosure or other available method.

The impact of zombie foreclosures on neighborhoods

The concept of a zombie foreclosure might sound like part of a science fiction movie, but such homes could wreak havoc on Minnesota neighborhoods. A zombie foreclosure is a home with which the foreclosure process has begun but is bogged down. As the homeowners leave their properties, the failure of creditors to move forward efficiently with the foreclosure process can leave these locations vacant. Properties may become rundown due to a lack of activity or maintenance. They could also attract squatters, drug dealers, gang members or other undesirable individuals, creating an unsafe environment for the rest of the neighborhood.

Illegal debt collection practices result in hefty fines

Financial challenges can be difficult for people in Minnesota for many reasons. One has to do with debt collection practices some companies might use. In many instances, those involved in debt collection will use many different tactics, including creditor harassment, to get what they want. This type of behavior has resulted in the Federal Trade Commission pursuing a California-based collection group for various legal violations.

Prescott Pearson & Tande, PA
443 Old Highway 8 Northwest, Suite 208
New Brighton, MN 55112

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Phone: 651-968-8096
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