New York Paralegal Blog

Imagine owing a huge amount of money, say over $14 million. Now imagine trying to get rid of that debt through bankruptcy, but forgetting to mention a few things... like properties and bank accounts in Dubai and Pakistan! Well, that's exactly what happened with a Texas couple, Hasan Farid Hashmi and Umme Salma Hashmi. They filed for bankruptcy last September after several hospitals owned by Dr. Hashmi closed down. They told the court they only had a Dallas home and a couple of small U.S. bank accounts. They even mentioned a trust for their kids, but claimed they didn't own anything in it. But here's where things went wrong for them: The U.S. Trustee Program (USTP), a part of the Department of Justice, started digging. And what they found was a shocking surprise! The Hashmis actually owned several other properties and bank accounts overseas in Dubai and Pakistan. Not only that, but they were also using money from that "kids' trust" to pay for their ...

Life throws curveballs, and sometimes, despite our best efforts, we can find ourselves in a difficult financial situation. For many, the idea of bankruptcy feels daunting, even shameful. But for those genuinely struggling with insurmountable debt, bankruptcy can be a lifeline, offering a structured path to a fresh financial start. If you're considering bankruptcy, understanding the process is the first step. While this is a general overview, remember that bankruptcy law is complex, and individual situations vary greatly. Always consult with a qualified bankruptcy attorney to discuss your specific circumstances. The Bankruptcy Process: A Simplified Guide 1. Initial Consultation with an Attorney: This is crucial. An experienced bankruptcy attorney will review your financial situation, including your income, assets, and debts. They'll help you determine if bankruptcy is the right option for you and, if so, which type of bankruptcy you qualify for (most commonly Chapter 7 or Chapt...

NEW YORK- Attorney General Eric T. Schneiderman today announced New York is part of a 46-state settlement with a Bankruptcy Trustee charged with overseeing the collection of late fees and other charges allegedly owed by approximately 3.3. million former customers of Hollywood Video and its parent company, Movie Gallery, both of which have filed for bankruptcy and are in the process of being liquidated. As many as 200,000 New Yorkers could be impacted by the settlement. "Imagine applying for a mortgage only to find your credit report is tarnished because of a video rental late fee you didn't even owe," said Attorney General Schneiderman .  "This settlement will provide important safeguards to protect consumers against abusive debt collection practices and will ensure that consumers will not have their credit harmed as a result of any outstanding fees claimed to be owed to Hollywood Video or Movie Gallery." New York and the other settl...

Kenneth G. Reidenbach was charged today by superseding indictment with bankruptcy fraud, concealing assets during a bankruptcy proceeding, and embezzling from a bankruptcy estate, announced United States Attorney Zane David Memeger. According to the superseding indictment, Reidenbach, an attorney in Lancaster, represented an individual in a bankruptcy proceeding. Reidenbach counseled the client to place nearly $40,000 in real estate proceeds into a law firm account controlled by Reidenbach and then concealed those proceeds from the bankruptcy court. The indictment also alleges that Reidenbach falsely represented that he had agreed to receive only $1,500 for representing the client in the bankruptcy proceeding. The original indictment, filed December 9, 2010, charged Reidenbach and co-defendant Herbert P. Henderson, another attorney in Lancaster, with conspiracy to commit bankruptcy fraud and concealing assets in bankruptcy by concealing more than $51,000 of clients’ real estate sales...

LOS ANGELES—Lenny Dykstra, who played outfield for the New York Mets and Philadelphia Phillies baseball clubs and later gained notoriety as a stock picker, has been charged with bankruptcy fraud for allegedly selling items from his $18 million mansion in Ventura County. Lenny Kyle Dykstra, 48, who is currently residing in Encino, was named in a one-count criminal complaint filed Wednesday that accuses Dykstra of one count of embezzling from a bankruptcy estate. The federal criminal case against Dykstra was announced today after he was taken into custody last night at his residence by local authorities on unrelated charges. The federal charges stem from a bankruptcy case that Dykstra filed on July 7, 2009. The criminal case filed in United States District Court alleges that Dykstra removed, destroyed, and sold property that was part of the bankruptcy estate without the permission of the bankruptcy trustee. According to court documents, after Dykstra filed for bankruptcy, he sold...

WASHINGTON– The U.S. Trustee Program (USTP) has successfully resolved litigation against Countrywide Home Loans Inc. in its ongoing efforts to protect homeowners in bankruptcy, Clifford J. White III, Director of the Executive Office for U.S. Trustees, announced today. Over a two-year period, the USTP worked closely with the Federal Trade Commission (FTC) to carry out parallel investigations relating to Countrywide’s improper conduct in servicing home loans.

By: Joel Irving Victoria Ring is a freelance Certified Paralegal, Certified Bankruptcy Assistant, and the CEO of two successful businesses. Victoria Ring is the reason why law firms should not outsource their legal work to other countries. Ms. Ring has over 20 years of small business marketing experience, which she has used to build a successful freelance business working from home. Moreover, Victoria Ring is credited with being the first paralegal to develop a virtual bankruptcy assistant service that provided online paralegal services to bankruptcy attorneys nationwide. After building a successful business of her own (The Lawyer Assistant), Victoria Ring discovered that there was a lack of qualified individuals who could draft a well-detailed bankruptcy petition. So in 2003, Victoria Ring began training attorneys, paralegals, and other professionals on how to draft a well-detailed, professional looking bankruptcy petition. Additionally, Ms. Ring has assisted thousands of people in st...

(USCOURTS) Dec 15, 2008 — Bankruptcy cases filed in federal courts totaled 1,042,993 for the 12-month period ending September 30, 2008, up more than 30 percent when compared to the 801,269 filings in Fiscal Year 2007, according to statistics released today by the Administrative Office of the U.S. Courts. The September 2008 filings are the highest of any 12-month period since the 2006 implementation of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, when there were 1,112,542 filings in the 12-month period ending September 30, 2006. The federal Judiciary’s fiscal year is the 12-month period ending September 30. The bankruptcies reported today are for October 1, 2007 through September 30, 2008. More...

The first annual report to Congress containing new bankruptcy statistics mandated by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was filed by the Administrative Office in advance of the July 1, 2008 deadline. The 2005 law requires bankruptcy courts to collect statistics on debtors who meet certain criteria. The Judiciary data systems in place when the law was enacted could not capture all the required information. Consequently, a whole new system and software had to be built, and the Judiciary began collecting the mandated data on October 17, 2006. The data in this inaugural report represents cases filed or closed during calendar year 2007. Although all cases filed in 2007 are included, the number closed is limited to those commenced after October 17, 2006 and closed during the calendar year. “The primary consequence of this limitation is that data . . . based on cases closed during the reporting period may not be typical for a calendar year period,” the report ...