Diane L. Drain

Diane L. Drain, bankruptcy attorney, retired law professor, mentor and community spokesperson.

I LOVE WORKING FOR PEOPLE WHO HAVE FINANCIAL CHALLENGES. MY HOPE IS TO MAKE A REAL DIFFERENCE IN THEIR LIVES.

Nothing makes me feel better than helping a client, who is barely existing on minimum wage, stop a creditor from garnishing their wages.  I have contribute to my client’s peace of mind when I tell a very aggressive collector that they are now permanently stopped from ever contacting my client or trying to collect the debt. Years later it is a joy for me to hear from the same client who has been able to refinance their home or buy a new car. This is truly why I went to law school.

-Diane L. Drain

All of this and more is why I wake every morning excited that I can help both debtors and creditors understand bankruptcy.

debt settlementThe banking industry would argue that borrowers choose to accept and use credit cards and take on loans. Borrowers also sometimes choose to obtain money from a loan shark yet the lender is prohibited by law from breaking any bones for late or non-payment. There also is free choice involved when an innocent person discloses personal information to an unscrupulous telemarketer, yet the consumer fraud division of the state attorney general’s office will still protect the individual. Banks, due in large part to their greed, sometimes make flimsy investments, yet they receive, at taxpayer expense, a bail out. Credit card users need a bail out – thus bankruptcy laws are developed.*

A bankruptcy practitioner must know a little bit about everything – taxes, labor relations, divorce or business law are just a few.

Perhaps now you begin to see what I mean when I say that bankruptcy law is fascinating.  ⇒Click here to read more about Diane.

BANKRUPTCY – DEBTOR AND CREDITOR RIGHTS:

IMPORTANT: No one, neither debtors nor creditors, want to be involved in a bankruptcy.

bankruptcyI have been helping people and small businesses with the challenges of bankruptcy.  No one has ever come to me excited about the prospect of filing or being involved in a bankruptcy.  This law is designed to assist both groups in protecting their interests in property. Good representation is imperative in making the right decisions and avoiding the pitfalls.

We represent individuals and small companies who use bankruptcy in order to protect their assets.

It is very important that debtors understand their rights and use the full value of the law in protecting their property. Bankruptcy can be used to stop foreclosures and trustee sales, stop wage garnishment and the harassment of phone calls to both home and work. In addition, we assist larger companies in bankruptcy, but co-counsel with other very experienced bankruptcy attorneys in order to keep legal fees to a minimum.

DEBT REPAYMENT CALCULATOR

We also assist creditors in protecting their rights in Bankruptcy Court.

We represent large national and individual lenders in situations where a home owner has filed bankruptcy. Normally this bankruptcy has been filed because our firm is in the process of conducting a trustee’s sale or foreclosure of the debtor’s property. The bankruptcy is used to give the debtor time to cure the arrears and/or pay off the debt.

We have conducted approximately 4,000 trustee sales (foreclosures) and evictions.  As such, we can help homeowners understand the process.

Since 1985 this firm has represented some of the larger national lenders with real property lien enforcement, including trustee sales, foreclosures and forfeitures (which is why I understand how lenders think). We are happy to explain  borrowers the issues involved in trustee sales, foreclosure or eviction.

All of this may not sound like such a big deal to some of you with deep-rooted negative feelings about the bankruptcy law, but it illustrates an important point.

When a bankruptcy petition is filed people’s lives can change dramatically for both creditors and debtors. The basic principals behind bankruptcy is to permit the debtors an opportunity to get a fresh start and the creditors are to receive equal distribution of available assets. What a magical theory!

bankruptcyPrior to filing for bankruptcy protection someone’s life is barely held together – they are terrified of answering their own phone; they are embarrassed at work by calls from collection companies and they may be in fear of losing their home or car.

After a bankruptcy is filed many of my clients tell me that they can breath easier and sleep through the night. They go to work with their heads held high; they are not afraid to answer their phones and they can actually open their mail without feeling sick.

Some creditors, especially credit card companies, have become outrageously greedy, and sometimes very deceitful.

Many times these creditors have actually been the reason that my clients are forced to file bankruptcy. For instance – a collection company for American Express told my client, an 82-year old widow, that he “had the legal right to bring a moving van to her house and take anything he wanted”.

bankruptcyThe horror that our clients have to endure is outrageous.

These stories abound with every consumer debtor attorney. Don’t misunderstand me, I am an honorable woman who believes that everyone should pay their debts. But, if those debts have become so burdensome that my clients are choosing between buying required medicine or paying the credit card – then I am thankful they have a Constitutional right to file for bankruptcy protection and get a fresh start.

Let us be your bridge to a more peaceful life…..

Company bankruptcies are absolutely necessary to stop aggressive creditors from closing down a viable, but overwhelmed businesses.

Through a Chapter 11 the company pays back some of their debts, but does so at terms it can afford. Chapter 11 is used to refurbish small and large companies. It may be a method to help a company scrape off debt that is overwhelming and get rid of obligations that are over financed. Through a Chapter 11 employees are kept working, inventory purchased and taxes paid. Without Chapter 11 those employees would be out of work, the providers of the inventory would suffer financial hardship and taxes burden would fall on others.

bankruptcySometimes creditors abuse the borrowers, but sometimes the borrowers abuse their creditors.

The debtors take on debts that they never intend to pay. The debtors falsify their financial statements. They purposely lie about assets and use every method to mislead old and new creditors. The bankruptcy laws are also designed to help protect the creditors. If a debtor sells assets for less than they are worth, puts debts on credit cards knowing that they cannot pay the debts or fraudulently takes money without the intent of paying – those creditors are not the aggressors; they are the good guys.

The bankruptcy laws permit reaching back in time and recapturing the assets that were sold or money that was paid.

These assets are brought back into the bankruptcy estate and distributed evenly among the creditors. Bankruptcy is not a time for injured creditors to be passive. They must actively participate in the process in order to be protected.

Why Bankruptcy is so important to our country

Hopefully, you can know see how the very economy of our country would be directly affected if we were not protected by these well founded principles of bankruptcy? Perhaps this helps you understand how important bankruptcy is to our daily personal, professional and social lives. Every one of us would be directly affected if the bankruptcy laws did not exist.

bankruptcy

Therefore, the next time someone mentions the word “bankruptcy,” don’t be so quick to form a negative opinion and assume “failure” goes hand-in-hand with bankruptcy.

The paperwork in a bankruptcy is overwhelming.  It actually takes more time, energy and will power to put yourself under the close scrutiny of the bankruptcy process than it takes to close the business or go underground as a consumer. Think of it as an area of law that holds our lives together and keeps us functioning as a growing and healthy economy. Give bankruptcy law the credit it deserves and you will find it to be a fascinating field of law.