Bankruptcy: What will I lose? What can I keep?

Our good friend and colleague out here in Clarkston, David Shook, provides another bankruptcy-related guest blog post.

Many debtors imagine repo men descending on their homes to loot and pillage their estate seconds after the bankruptcy papers are filed in federal bankruptcy court.

While this makes for great television, the facts could not be further from the truth.  While there are cases where assets need to be sold for the benefit of creditors, there is a process to be followed, and the opportunity for hearing before a judge, prior to the sale of anything in a case.

Debtors are allowed to retain up to fixed amount of value in assets through a process of exemptions, which are written into the Bankruptcy Code.  Exemptions allow for the first dollars of any asset to remain in the debtors possession throughout the bankruptcy process.  If for some reason the Chapter 7 Trustee should choose to sell an asset for the benefit of the creditors (which is very rare) the Debtor would receive the exemption amount from the sale proceeds, prior to creditors seeing a dime.

Keep in mind the system focuses on the debtor’s value in the property, not the value of the asset.  I receive many a creditor phone call to inform me that “Bob” filed bankruptcy, but got to keep his Corvette, ski boat, etc.   If the Corvette is worth $25,000 but subject to a creditor lien of $23,000, Bob has only $2,000 in equity in the car.  Given The Code, allows the debtor an exemption of up to $3,450 in an automobile, there is no benefit to creditors in selling the car.  Thus the bankruptcy Trustee has no interest in the selling the Corvette, if “Bob” continues to pay the creditor on his car loan, he may retain it after bankruptcy.

On the other hand if the Corvette does not have a creditor lien, or the lien is small enough to warrant the sale of the asset, the exemption must be paid to the debtor from the sale proceeds.  In our example the Corvette is worth $25,000, but the creditor lien is only $5,000.   Here the Trustee might very well sell the car, pay off the creditor lien, and all expenses of sale, and retain $18,000.   The Trustee must give the Debtor the exempt amount from the sale proceeds.

While $3,450 might not sound like a good deal, depending on the amount of debt this may be a great deal.  In effect the debtor has traded the Corvette for $3,400 in cash and wiping clean all creditor claims.

If upon review, it is determined a debtor may have assets that cannot normally be retained in bankruptcy, Chapter 13 of the Bankruptcy Code may very well help.  One of the benefits of Chapter 13, which focuses on the repayment of debts over a 3 to 5 year period, is a debtor is allowed to “buy back” assets from the estate. 

In this example the Debtor is allowed to pay creditors the value of the Corvette ($25,000), less the lien and exemption ($5000 + $3,400 = $8,400) over the life of the plan.  Again depending on the amount of debt involved, paying $16,400 over a 36 to 60 month period may very well be a great deal.

So what can you keep in a bankruptcy?  One of the few clear benefits for the debtor in the 2005 bankruptcy reforms relates to retirement accounts. 

The vast majority of tax deferred retirement accounts, IRA’s, 401(k), 403(b), etc., are exempt from the bankruptcy estate.  While the probations against transfers discuss in my last post apply, and it is not advisable to move a $10,000 CD into a IRA on the eve of bankruptcy, normal contributions are exempt regardless of the balance in the account.  A debtor, who puts 6% of his gross pay into a 401(k) or contributes the maximum deductible amount to his IRA each year, has an unlimited exemption in the account.  As I tell clients, the difference between your case, and a case with $100,000 in an IRA, is the money you have after bankruptcy.

I have seen several cases over the years where the Debtor has hundreds of thousands of dollars in an IRA or 401(k).  In one example the Debtor had close to two million dollars in his IRA’s.  All of these funds where retained free of claims by creditors or the Trustee.

For all of the energy invested in wealth retention, the best protection is also the simplest.  Everyone with a paycheck should have some type of retirement account, and deposit as much as possible into the account, up to the deposit limit’s set by the IRS.

Great advice Dave.  Any of our readers with questions are encouraged to contact Mr. Shook for answers.

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Posted in: bankruptcy,Clarkston,Clarkston Legal,David Shook,lawyer

Privacy and Tracking Cell Phone Use

Our cell phones have been described as the biographer of our daily lives.  If deconstructed, a cell phone can tell an awful lot about its owner.

Increasingly, cell phone carriers are being subpoenaed in high-conflict, or fault-based divorce cases.  The cell phone records identify the persons with whom an individual communicates throughout the day, and where that communication occurred.

The information contained in cell phones is also important in the law enforcement context.  Formerly reserved for federal agents, local law enforcement is now getting in on this information bonanza thanks to a smorgasboard of services provided by cell phone carriers.

The legal question posed by the practice is whether local police departments must obtain a probable cause-based warrant prior to securing our cell phone information from our carrier.  The answer is unclear.

Recently, SCOTUS decided United States v Jones, requiring a warrant prior to installing a GPS tracking device on a drug suspect's vehicle.  The decision in Jones did not address whether a warrant is needed in the case of obtaining cell phone records; including the geographic information in the now-ubiquitous GPS navigation systems embedded in cell phones.

In addition to geo-tracking data, there is also "cloning": having a cell phone, for example, download [to police] copies of sent and received texts.

This information is deemed so important to law enforcement agencies, some are by-passing the cell phone carriers altogether, purchasing their own cell phone tracking equipment in order to avoid the cost and delay of dealing directly with the various carriers.  In February, police in Grand Rapids, for example, were able to track a cell phone call placed by a stabbing victim who had been secreted away in a basement.

At present, however, there are few guidelines for cell carriers and the disparate local police agencies as to what information can be provided, and what evidentiary standard must be met in such disclosures.

With the SCOTUS decision in Jones less than clear, and with the federal circuit courts of appeal divided on the issue, Congress and the state legislatures are looking at the issue.  Privacy law is going to be a growing branch of our jurisprudence in the next few decades.

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Posted in: cell phone,cloning,criminal law,divorce,GPS,lawyer,privacy law,SCOTUS

Electronic Service of Process

Well, the day is here; or, at least it's getting here.  Lexis/Nexis, the huge legal data base firm [and a charter member of the "Big Data" club], reports that some courts in several Commonwealth countries are allowing alternative service of legal papers via, well, er, Facebook, and other electronic means designed to achieve delivery -in fact- of legal papers.

In the UK, the High Court allowed an injunction to be served via Facebook on an anonymous [and abusive] commenter to Donal Blaney's conservative blog.  Imagine that...

In Australia, a foreclosure notice was ordered to be sent to the delinquent homeowners via Facebook.  Under Canada's rules of alternate service, notice of a claim was sent to the defendant both through his employer, and via Facebook. And in New Zealand, a the initial complaint in a business dispute was allowed to be served on the missing defendant through a company Facebook page.

No reported cases here in the US folks, but it won't be long.  These days, perhaps the most sure-fire way to get someone, at least a person that has a FB account, is by posting on their wall or sending a message.

Texas lawyer John G. Browning addresses the issue in an excellent article published in the Texas Bar Journal.  More on this to come, for sure...

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Posted in: alternate service,Attorney John G. Browning,Donal Blaney,Facebook,lawyer,legal process,State Bar of Michigan

Spice Kills

Waterford Judge Jodi Debbrecht

This is a guest blog post from 51st District Judge Jodi Debbrecht in Waterford, MI. 

Dickie Sanders was a relatively normal teenager – interested in BMX bikes, student, goals, dreams. However, Dickie died from using bath salts.

While at home he had a psychotic episode as a result of using bath salts and was “seeing” fire engines and police cars in multitude arrive at his home.  He was screaming to his father who was in the kitchen of their home with Dickie.

Suddenly, as Dickie was counting cars, he reached down and grabbed a butcher knife and slit his throat open.

Dickie’s parents are both doctors; doctors who knew nothing about Spice, K2 or bath salts. They rushed him to the hospital after triaging him themselves where he was treated and sent home for care.

Less than 24 hours later, while in his bedroom, Dickie suffered another psychotic episode as a result of using bath salts and killed himself.

Many, many more stories just like this one abound.  And many, many stories similar to this one have occurred in our local communities.

Every day in my courtroom, young adults are admitting to using spice/K2, bath salts or other synthetic substances. No matter what you call them, they are killing our youth and the parents who appear to support their children are left with no answers, just left to wonder, what is this stuff?

Spice/K2, bath salts are essentially materials that are infused with chemical compounds that cause hallucinations, erratic behavior, disorientation, nausea, and even death. The symptoms are not limited to these noted here. Spice/K2 and bath salts (or similar substances) are technically illegal in Michigan.  However, they continue to be sold because as soon as the legislature identifies a chemical compound as a controlled substance thereby making it illegal, the individuals making the chemical change the compound.

The new compound is not listed as one that is illegal because it no longer fits the definition as defined in the statute for an illegal substance. Furthermore, Spice/K2 and bath salt use is on the rise because it becomes increasingly difficult to test for, is relatively inexpensive and easily accessible.

An immediate and viable way to stop the use of this new drug is to get people to stop selling it. In order to get people to stop selling it, we must raise awareness of the critical nature of this issue. Together we can stop the use and sale of this insidious substance.

Only together can we win the war against synthetic drugs – or any drugs. Informational meetings are being held throughout your community to provide you with information about this toxic substance.

Get the answers. Get the facts. Get armed to save our youth. Saying I didn’t know will not bring our young adults back from potentially irreparable damage, even death.

For more information, please see the links contained on my website: www.JudgeJodi2012.com.

Thanks Judge Jodi for putting the spotlight on this issue that has cropped-up among our children and their friends.

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Posted in: 51st District Court,bath salts,drug abuse,Judge Jodi Debbrecht,K2,spice,Waterford

What Makes a Good Family Court Judge?

Attorney Henry S. Gornbein

This post is from the Huffington Post's Divorce Blog.  The author is Henry S. Gornbein, a colleague of ours from Oakland County that specializes in divorce and family law and a regular contributor to the Huffington Post.  In this post, Henry really captures the critical elements of a good family court judge.

Here is what Henry had to say on the subject:

In over forty years of practicing family law, I have appeared before hundreds of different judges. I have found that some are rude, arrogant, and suffer from what is known as black robe syndrome. This means that they have forgotten -- or never knew -- what it was like to practice law, and have a holier than thou attitude. Most judges are considerate, will listen, and will try to resolve issues in cases.

Here are some of my thoughts on the attributes of a good judge in family law:

1.       A judge should remember that he or she may also be divorced. I have represented judges in their divorces before, and they are human just like everybody else.

2.       A good judge should listen to the arguments of attorneys and show compassion.

3.       A good judge should not lose control of his or her court room.

4.       A judge should not let arguments go on endlessly, and give everyone a chance to speak. The judge should also know when to cut arguments off in court.

5.       A good judge should be fair and not biased.

6.       A good judge should be decisive. One of the most frustrating things for attorneys are judges who will take matters under advisement, or fail to come up with a ruling. People need rulings so that they can go on with their lives. Even if an attorney or client disagrees with the ruling, it is better to have a ruling than not to have any decision made by the court.

7.       Judges should be on time. If court is set for 8:30 or 9:00 a.m., judges should be prompt. One of the most frustrating things for litigants and their attorneys is to sit around for hours on end waiting for a judge who does not start court promptly.

8.      Some judges will refuse to talk to attorneys in chambers about a case. I think that is wrong. I feel very strongly that a meeting with attorneys through a pre-trial, where a judge will listen to some of the key issues and then send a signal, can lead to a settlement. I also believe that a good judge will set up meetings in order to settle cases rather than just saying, "if you can't settle, then call your first witness." Trials should be a last resort, not a first resort. A good judge knows that.

9.       A good judge should always be in control of his or her court room and docket, but also should not be punitive or refuse to allow people to have their day in court. There is an old saying that justice delayed is justice denied. Cases that are set for trial which are continually adjourned because of court docket conflicts or other reasons, help no one. While I believe that there should be reasonable adjournments granted when an attorney requests one, there should not be unlimited adjournments of a hearing or trial of a case.

10.   I have found over the years that if the judge will start a trial, listen to the parties, allow some evidence, and permit the litigants to get whatever he or she has off his or her chest -- the case can often be settled. Getting that day in court, getting a chance to speak and feeling that a litigant is heard can often lead to a resolution of a case without the need to go through an entire trial. I have had judges over the years who would give people a chance to speak in an informal manner, and then get down to try and settle the case. Letting someone be heard, letting someone feel that his or her thoughts and wishes are important, is a good way to lead to a resolution of a case.

11.    A good judge should show respect for the attorneys and for the litigants, and a good judge should expect respect in return.

12.    In our multi-cultural, social and ethnic society, a judge should be sensitive to religious, ethnic, racial, and cultural differences. I have had judges tell me that certain cultures act in certain ways, and allowing these cultural differences to be recognized in a respectful manner can lead to a resolution of a case.

13.    In making a ruling, a good judge should be clear and concise, and explain what he or she is doing and why. Too many times I have had attorneys and litigants walking out of a court room shaking their heads and wondering what the judge did and clearly not understanding what the ruling was based upon. This is not good for anyone.

14.    Last, but not least, just like a good lawyer understands that a trial before a stranger should be the last resort, not the first, a good judge should understand that also. A judge should leave plenty of opportunity for resolution of a case short of trial either through mediation, negotiations or sometimes, arm-twisting by the judge.

Well put Henry; we could not have stated the matter any better.  Clearly, four-decades of practicing family law has given you some very valuable insight.  Thanks for sharing your thougts.

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Posted in: divorce,family court,family law,Henry S. Gornbein,judge,Oakland County

SCOTUS Reviews Heath Care Legislation

In a historic judicial review process, the SCOTUS has been hearing oral arguments this week on the constitutionality of the Affordable Care Act that narrowly passed Congress last year.  The health care bill became law largely due to the personal lobbying efforts of President Obama himself.

Today, the nine justices, in order of seniority, will cast their initial vote to decide the case.  If he is among the majority, Chief Justice John Roberts will assign a justice, probably himself, to write the opinion for the majority.  If the Chief is not among the majority, the most senior justice in the majority will assign the lead opinion.

In a case this complex, sub-issues may be assigned to justices voting in the majority; dissenters often write separate opinions.

Among the issues framed for the High Court to decide: the constitutionality of the "individual mandate" making health insurance coverage mandatory and implementing a penalty tax for going "naked"; and the constitutionality of the provision expanding the federal and state health care partnership for the poor, known as MEDICAID.  The latter issue affects states' rights to the extent the federal requirements become overbearing and unconstitutionally encroach upon the autonomy of the states.

There has been a steady stream of high-quality intellectual blogging among the high-brow court watchers dissecting the marathon arguments.  By all counts, many of the Justices have been actively questioning the lawyers.  For example, in the final session yesterday afternoon, the four liberal Justices peppered Washington attorney Paul Clement with a series of questions presumably designed to get Clement to identify when federal government requirements, the spending clause limits, become onerous to the point of coercion.

Mr. Clement's worthy opponent, Solicitor General Donald Verrilli, Jr., had his hands full earlier in the week getting grilled by the conservative Justices.  As usual, however, Justice Clarence Thomas sat silent throughout the historic arguments, as is his custom.

Like so many crucial SCOTUS votes, this case may come down to Justice Kennedy.  He seemed to warm to the coercion theory propounded by the challengers of the ACA.

Near the end of the marathon session, in response, the Solicitor General urged the High Court to step back from the Medicaid expansion and the individual mandate arguments, and view the issues in more humanistic terms, equating affordable health care coverage among our "blessings of liberty".

We will probably not know how the Court has voted until early summer.  Stay tuned.

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Posted in: Affordable Care Act,attorney,judicial review,Medicaid,Paul Clement,SCOTUS,Solicitor General

When Broken-Down Celebrities Cannot Pay Child Support Obligations: Dennis Rodman

Former Piston &
Hall of Famer Dennis Rodman

Just last August, I waxed nostolgically when I read that former Detroit Piston Bad Boy Dennis Rodman had been inducted into the NBA's Hall of Fame.  He earned that distinction by contributing to five NBA championship teams; two with the Pistons, and three with the Bulls.

Fast forward a few months, and here was Rodman's pro bono lawyer explaining to a family court judge, then to the press, that the man was broken down, sick, unable to earn the millions he did in the days of yore and thus, unable to pay his child support obligations.

According to the LA Times, his child support arrearage for two children is fast-approaching one million dollars.

As a Special Assistant Attorney General assigned to prosecute felony child support cases, I've seen a few professional athletes pop-up as criminal defendants with eye-popping arrearages.  These cases highlight the peaks and valleys characterizing the income history of many star athletes.

The basic problem is that these superstars show multi-million dollar income, but for a very short period of time.  Many of them spend the dough on a lavish lifestyle rather than save and when it all comes to a crashing end, they fail to seek an adjustment of their support obligation in the family court; hence the whopping arrears.

Rodman's case was different; he was able to take his insane schtick to the bank for years following his NBA earning years.  Now that he has aged and is reportedly ill, all that has gone away.

Here in Michigan, child support is controlled by the Michigan Child Support Formula; literally an algorithm taking into account the relative income of the child's parents, as well as the overnight parenting schedule.

Like Michigan, some states have adopted support formulas that "top-out" for high earners. Here in Michigan, for example, child support can only be calculated for an annual income of $422,916 or less.

In addition, the MCSF takes away most of the court's discretion in setting child support. Absent compelling factors, support is determined through a straight-forward application of the MCSF.

In the case of some high-earning payors, litigants have cried foul, asserting that when a parent earns millions of dollars, his children should share in that wealth. This is particularly the case where the high income is short-lived; like with most professional athletes.  Rodman's income went on for much longer than most.

Like Michigan, Florida, Nebraska, Virginia, West Virginia and Wyoming all use a straight formulaic approach [with a cap] to the calculation of child support. Other states utilize a percentage approach where the child support obligation just keeps going up; keeping pace with the parent's high income.

Recognizing this problem, some states have specific statutes that address high income households. These statutes usually provide the family court judge with some good old-fashioned "discretion" to determine the child support obligation in accord with the "best interests of the child."

It will be interesting to see whether the family court judge will give Rodman a break and reduce his child support.  But arrearage is arrearage; due and owing to his two children.

We cannot help but wonder, over the past several years, whether Rodman spent his fortune on himself rather than taking care of his children.

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Posted in: child support,Dennis Rodman,Detroit Pistons,divorce,divorce lawyer,Michigan Child Support Formula

SCOTUS Holds Effective Assistance of Counsel Applies to Criminal Plea Bargains



On numerous occasions over the years, I've represented criminally charged shooters from Detroit over in the Frank Murphy Hall of Justice. Rough ride folks.

Last week, the SCOTUS issued a very significant 5-4 decision in a shooting case straight outta Detroit. In Lafler v Cooper, and it's companion case, Missouri v Frye, the High Court held that the 6th Amendment guarantee of the effective assistance of counsel in a criminal proceeding, applies to the plea bargain process.

In the Lafler case, the defendant tossed a shot toward the head of his victim, but missed.  She fled, he pursued, spewing lead.  In the end, he caught her in the buttock and abdomen; she survived the assault.

Charged with attempted murder, Lafler faced the music over in the FMHJ; the "Murph" as we defense attorneys refer to that meat-grinder of a court house.  [Some may recall the building as the old Detroit "Recorders Court".]  As is very common in Wayne County murder and attempted murder cases, he was offered a deal: plead guilty and do less time.

His criminal defense lawyer believed he could beat the case on the theory Lafler did not attempt to murder his victim, because he shot her in the butt.  Yeah, good luck with that buddy.  Based on this legal advice, Lafler rejected the plea offer and went to trial.

The jury wasn't having it, convicting Lafler on all counts.  He was sentenceed to a term of imprisionment that far exceeded what the prosecutor offered.

The Michigan Court of Appeals rejected Lafler's "ineffective assistance of counsel" argument, and the Michigan Supreme Court declined further appeal.  Next, Lafler filed a habeas corpus petition in federal court. 

The Sixth Circuit Court of Appeals held that the 6th Amendment guarantee of effective assistance of legal counsel in all critical phases of the criminal process applies to the plea bargain process.  This decision was affirmed by a sharply divided Supreme Court, with Justice Anthony Kennedy writing for the majority, and with the conservative Justice Antonin Scalia reading his dissent from the SCOTUS chamber when the opinion was announced.

SCOTUS held that the right to effective assistance of counsel does indeed attach during the plea process; almost always THE critical point in the criminal prosecution according to Justice Kennedy.  He's right on that count.

The High Court ultimately held that when an accused "misses out" on the plea bargain process, or rejects a plea due to bad legal advice, as in Lafler, then the 6th Amendment is violated.  Justice Kennedy remanded the case to the lower federal court with instruction for that court to mandate the state court to re-offer the plea bargain, or to leave the defendant's conviction and sentence undisturbed.  The sentencing judge over at the FMHJ must perform a "balancing test" to decide which way to go.  See why we need lawyers...

Justice Scalia did not agree that the plea negotiation process was within the scope of the 6th Amendment's right to counsel.  Along with the other Justices in dissent, Scalia also crituqued the majority's failure to properly define the government parameters in this newly created constitutional right of plea bargaining.  The dissent sees years of additional litigation over plea bargains gone bad.

So pay attention to those plea offers all you criminal defense lawyers out there, or your representation may be deemed, er, ineffective.

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Posted in: attorney,criminal defense lawyer,Detroit,Frank Murphy Hall of Justice,habeas corpus,Lafler v Cooper,SCOTUS,Sixth Circuit Court of Appeals

Asset Transfers Prior to Bankruptcy: Can I just give my son the Corvette?

Attorney David Shook

This is the first in a series of guest blog posts from Clarkston-based Attorney David Shook, who has a law practice focused on consumer and small business bankruptcy.

As dad said, you can do that, but be prepared for the results.  Folks are terrified they are going to “loose everything” in a bankruptcy. 

The fact is the Bankruptcy Code allows the debtor to keep assets with no equity or up to a fixed dollar amount, through a process of exemptions.  The vast majority of bankruptcy cases are no asset cases where the debtor loses nothing. 

While the billboards I see proclaiming, “lose the debt, keep your stuff”, are rather extreme, this proclamation is more accurate than the misconception that the bankruptcy court takes all your possessions. 

In spite of the facts, too many people transfer assets to friends and family as the creditors begin to circle; in some cases with bad results. 

The Bankruptcy Code makes the results of transferring an asset very clear. “Transfers made with the intent to hinder defraud or delay creditors,” within one year of filing a bankruptcy is a basis to deny or revoke the discharge of a debtor.  In addition, transfers made in up to 6-years prior to filing the bankruptcy petition, regardless of the intent of the Debtor, may be avoided by a creditor or bankruptcy trustee, and can be liquidated to benefit creditors. 

I tell clients on a regular basis, people do things in the normal course of life that are not an issue, until you file a bankruptcy.  There may be legal defenses, in addition to practical considerations, but the graduation gift of $10,000 five years ago could very well be an issue in today’s bankruptcy filing.

The most extreme result of transferring an asset is rather nasty.  The Debtor’s discharge may be denied, and the person you transfer the asset to may very well be sued.  If the Trustee is successful, the asset is returned to the Estate, and sold for the benefit of the creditors. 

Thus every debt included in the bankruptcy is ruled non-dischargeable in the case, and any future cases.  The brother (or son) is on the bad side of a federal lawsuit, and if the Trustee wins, the Corvette is sold and the proceeds paid to creditors. This is not what I would call a good outcome.

Payments to creditors on legitimate debts may also cause issues in a bankruptcy case. Payments within 90 days to any creditor, or 1 year to “Insiders” (think family, and business associates), called preferences in bankruptcy-speak, may be avoided and used to pay all creditors.  Thus, using your tax refund to pay off the $3,000 loan from your sister, on the eve of bankruptcy, is never a good move. 

To add to the penalty for voluntary preferences, or any other transfer for that matter, normally a debtor can exempt and keep (I will address exemptions in a future post) the same $3,000.00 as part of a bankruptcy proceeding and pay the family after the case has completed.  However, if the same amount is voluntary transferred (vs. garnishment or other creditor action), and then recovered by the Trustee, the Debtor is not allowed an exemption in the recovered asset.     

                   

The issues surrounding the return of preferential payments to the estate are normally much less of concern to a client.  Most Debtors have little concern over the fact any one credit card company is forced to return the $1,000 payment made within 90 days of filing.  However, having to wait 7 months to allow the year to run on the money paid to mom, or any other close family member, can rattle the nerves.

Involuntary transfers (again think garnishment of wages) made within the 90 days may also be recovered, quite possibly to the benefit of the debtor.  In certain circumstances, a bankruptcy will not only force the creditor to stop garnishment, but allow the debtor to recover and keep the amount taken by the creditor.

As with any legal issue, get professional advice from an attorney who practices in your area of concern.  No matter how skilled the practitioner, the web is no substitute for a legal consultation.

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Posted in: bankruptcy,bankruptcy trustee,consumer,creditors,debtor,lawyer

Law School Rankings Unkind to Michigan Law Schools

Once again, the highly controversial national law school rankings have been published by the US News & World Report. Although you have to pay to see them in full, University of Cincinnati Law Professor Paul Caron has published a segment of the rankings; peer reputation vs "overall" rankings.

Some movement was observed at the top of the rankings.  The University of Michigan Law School, for example, fell three spots from 7th to 10th.  Harvard also fell a spot.  To the USN&WR editor: really; what changed at UM and Harvard to merit the drop?  Go figure.

Proving that it never hurts to associate with a huge public university, Michigan State University's "College of Law" [formerly the unaffiliated Detroit College of Law] is now ranked #82 overall.  Not happening in the law school's "stand alone" days.  Not yet 1st tier, but improving.

MSU bested Wayne State, which now sits at #112 overall; that never would have happened in the 1980s.

While my law school alma mater, University of Detroit Mercy, did well in the NCAA men's basketball tournament seeding, in the law school rankings, er...not so much; stuck at #178 in the peer reputation category with an "overall" ranking simply noted as "tier 2" and trending downward from its whopping 169 rank back in 2009.  Guess that means, "second rate".  What's going on over there?

Finally, we would be remiss if we did not at least mention Michigan's other perennial basement dweller in these confounded rankings: the mighty, albeit somewhat narcissistic, Thomas M. Cooley Law School; ranked at #184. 

If you care enough to drill into Cooley's own website, however, you will see that they persist in publishing their own law school ranking which places them second [to Harvard] based on a variety of class-size factors.  And perhaps that is as it should be, with a whopping 3727 Juris Doctor candidates currently enrolled [yes folks, that's Three Thousand Seven Hundred Twenty Seven students; can you say, you are just a number...].  The next highest enrollment is Georgetown University, with 1982 students.

Again, we have to ask, do we really need that many lawyers out there on the street?  Really?

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Posted in: Cooley Law School,law student,lawyer,Professor Paul Caron,University of Detroit Mercy Law School,University of Michigan Law School,US News and World Report,Wayne State University

Shariah Law and Divorce

In an unpublished decision released toward the end of last week, the Michigan Court of Appeals found fault with the Wayne County Family Court in a divorce case that touched on the application of Shariah law.

Specifically, the Hammoud case involved the imposition of spousal support in a realaitively short-term marriage. The Court of Appeals was troubled that the family court conditioned the duration of the "open ended" support on wife obtaining an "Islamic divorce" decree, noting:

As structured by the trial court, plaintiff has no incentive to become self-sufficient or to vigorously pursue an Islamic divorce as she is assured an ongoing income ad infinitum.  The trial court also failed to address or seek further clarification of plaintiff’s contention that she was in possession of a document that would permit others to assist or assure her the attainment of an Islamic divorce without defendant’s consent.  Plaintiff indicated that an agreement existed that would permit her brother and brother-in-law to authorize the Islamic divorce, potentially rendering it within plaintiff’s control to prolong her receipt of spousal support.

The implication, as held by the Court of Appeals, was that the family court pressured the husband into agreeing to an Islamic divorce when, under the establishment clause, it had no power to do so.

The Court of Appeals was not impressed with the lower court, the litigants, or their attorneys.  The case also featured an [untranslated] Arabic language prenuptial agreement proffered by husband to support his position that his wife agreed to forgo any spousal support.

The Hammoud case received national attention with a reference in Law Professor Eugene Volokh's law blog; the Volokh Conspiracy.

We here at the Law Blogger agree that family court is not the place for the implication or enforcement of religious laws; that is for the house of worship and is a private matter between the litigants.

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Posted in: divorce,Eugene Volokh,Islamic divorce,Michigan Court of Appeals,prenuptial agreement,prognosticator,Shariah law,spousal support,Wayne County Circuit Court

Social Media Not Mixing with Jury Trials

It took some time, but now the cases are starting to pile-up.  This week's WSJ treats us to a summary of recent "social media" eruptions in the jury trial context.

The basic problem: a jury trial is conducted in accord with the applicable rules of evidence, court rules, and statutes.  When jurors log onto the Internet to obtain additional information [about the parties to the suit, the lawyers, or the judge], or to comment, they are exposed to data and opinion beyond the scope of the applicable rules.  This can and does affect the outcome of a trial.

The case highlighted in the WSJ was a 2010 murder conviction overturned, in part, because a juror ignored the admonishment of the judge, and tweeted the jury's verdict to the public prior to it being read in court.  Now, the defendant will stand trial again this summer.

In other courtrooms, despite explicit instruction from the trial judge that jurors must not discuss the case among themselves until the proofs are complete and they are formally deliberating, jurors have been known to exchange contacts and begin texting one another.

A Florida juror recently spent 3-days in jail for "friending" a defendant on Facebook so he could either get a date with the woman, or get out of jury duty.

A case in the California appellate courts hinges on whether a juror in a case must now disclose his social media activity to defense attorneys in a gang-beating case so the attorneys can determine whether to challenge their client's conviction based on the juror's social media activity.

Judges have a range of options when juror misconduct mars an ongoing trial.  Those options include: punishing the juror for contempt (i.e. jail or a fine); removing the objectionable person from the jury (there is always at least one alternate); and declaring a mistrial and starting the trial over.

The WSJ article cites to a potential test case: the Drew Peterson case in Illinois.  In that case, defense attorney Joel Brodsky is considering ways to prevent jurors from acquiring information about the case outside the courtroom.  One idea under consideration is for the jurors to disclose their IP addresses and social media handles so they can be monitored.  Along these lines, technicians are suggesting the installation of cookies so that if a juror accesses the Internet about the case in any way, the juror's foray is reported to the trial judge.

Can the centuries-old jury trial system withstand such developments?  Is there any effective way to prevent seated jurors from accessing the media about the case to which they have been entrusted?

As litigators, we here at the Law Blogger realize this truly is a "Brave New World".  When you ramp-up for a trial, and focus on the scope of the evidentiary issues in the case, it is very unsettling to think that, with a few points and clicks, a juror can unearth a veritable treasure trove of [inadmissible] information about you, your client, or your case. 

In almost every case, such additional information will sway the juror's opinion and somehow affect the outcome.  Turning a trial into a popularity contest is not a fair way to administer justice.

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Posted in: Attorney Joel Brodsky,Drew Peterson,Google,internet,juror,jury trial,law blog,lawyer

What Happens to Frozen Embryos After A Divorce?

In happier times, the Stratfords, Jude and Jayane, did what an increasing number of marital couples are doing; they froze one of Jayane's eggs that had been fertilized by Jude's sperm; i.e. they cryopreserved an embryo.  When the dust settled in their subsequent St. Clair County divorce proceeding, the now-divorced couple realized they had forgotten to address their frozen embryo in the consent judgment of divorce.

Jude went back to the family court seeking permission to allow an anonymous couple to utilize the single fertilized and frozen egg.  Jayane objected, asserting her desire to donate the embryos for research.

After carefully balancing the respective interests of the parties following an evidentiary hearing, St. Clair County Family Court Judge Elwood Brown concluded that Jude held a "superior interest" in the embryo, and promulgated a thoroughly-researched opinion and order on this ground-breaking topic that has no precedent in Michigan's statutory or common law.

Judge Brown ruled that: "[Father] may provide for the embryo to be donated anonymously by the fertility clinic for the purpose of adoption by another willing couple."  Jayane appealed Brown's ruling to the Michigan Court of Appeals.

The MCOA reversed the family court in an unpublished and thus non-binding per curiam decision, holding that the lower court erred by obligating the fertility clinic, not a party to the Statford divorce, and further held that the family court order was too vague relative to Father's right/duty to donate the fertilized egg to another "willing couple".

The appellate court was particularly troubled by the lack of a contract between the divorced parties and the fertility clinic.  Addressing the family court's creation of duties to a non-party, the MCOA stated:

Aside from the permissive nature of the order, the order imposed upon the clinic several obligations that the clinic may be unwilling to accept or unable to perform.  For example, the record does not indicate whether the clinic is able to make the embryo available for adoption.  Similarly, the record contains nothing to demonstrate that the clinic is willing or able to accept the order’s apparent restriction that the embryo be adopted only by a willing couple.  In addition, the record does not identify who, if anyone, is currently paying for any of the clinic’s costs arising from cryogenic preservation until a “willing couple” is available for adoption.  We are further left to assume from this record that there is preservation in fact, viability, and, non-abandonment of the embryo.  Moreoever, in the event plaintiff opts not to donate the embryo, the record does not indicate whether the clinic is willing or able to continue to preserve the embryo indefinitely.

In so ruling, the MCOA compared the Statford's circumstances with an earlier "zygote" case from 1999, Bohn v Ann Arbor Fertility Clinic, which involved a similar family court "custody" dispute, along with a companion "breach of contract" cause of action.

In each case, the Court of Appeals focused on the agreement, or lack thereof, between the biological donors and the fertility clinic.  In deciding each case, the MCOA emphasized the poor quality of the lower court record relative to upholding the plaintiff's claims or, in the Stratford case, the lower court's rationale.

Nor did the Stratford panel endorse the lower court's "balance of interests test", ruling that such was within the purview of the legislature and not the courts.  We here at the Law Blogger heartily agree.

Stay tuned to see whether either party applies for leave to further appeal or whether there will be additional proceedings in the family court.

Also stay tuned to see whether our state legislature passes legislation to address the proprietary rights of zygotes, oocytes, and other pre-embryonic cells.

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Posted in: child custody,cryopreserve,cryopreserved embryo,divorce,embryo,family law,Jayane Stratford,Jude Stratford,Michigan Court of Appeals,oocytes,privacy law

Google's Privacy Policy Gets Look From Attorneys General

By now we've all been shocked by how much information the major search engines collect and store about each of us. The reach now extends into our cell phones and possibly even into our contacts.

On March 1st, Google implemented a new, single privacy policy, replacing it's patchwork of more than 50 separate policies spread across its product line and services. In the wake of Google's new privacy policy, the Attorneys General in a majority of states are calling foul.

Speaking for at least 35 state attorneys general, the National Association of Attorneys General complains that the new policy violates consumers' privacy by sharing personal information across Google's services without providing an explicit "opt in" or a meaningful "opt out" option.  NAAG sent a letter to Google's Chief Executive Officer, Larry Paige, requesting a sit down.  The NAAG letter states, in part:

Google’s new privacy policy is troubling for a number of reasons. On a fundamental level, the policy appears to invade consumer privacy by automatically sharing personal information consumers input into one Google product with all Google products. Consumers have diverse interests and concerns, and may want the information in their Web History to be kept separate from the information they exchange via Gmail. Likewise, consumers may be comfortable with Google knowing their Search queries but not with it knowing their whereabouts, yet the new privacy policy appears to give them no choice in the matter, further invading their privacy. It rings hollow to call their ability to exit the Google products ecosystem a “choice” in an Internet economy where the clear majority of all Internet users use – and frequently rely on – at least one Google product on a regular basis. 

For its part, Google claims the new policy will be easier for all to understand.  For our part, this Blog adheres to a simple basic principle: when conducting search and post activities on line, we keep in mind that we are creating a searchable and reviewable record.

Everyone seems to know the difference between posting content on sites like Google+ and YouTube and having their deepest darkest searches tracked.  In the former context, the user usually intends for the content to be discovered.  For example, we here at this blog wish our Clarkston Legal video on YouTube had more than 45 views in two years; my son thinks that's lame.

In the latter context, on the other hand, folks are sometimes embarrassed by what pops-up in the form of advertisements that the mighty and all-powerful web spider has determined to be relevant to a particular individual.  Such ads are displayed based on the aggregated content and personal information collected by the service provider.

This chapter just lets us know that privacy law is a fast-growing area of law that will take on increasing significance.  Stay tuned for the flow of developments as the lawsuits start to pile-up.

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Posted in: Attorney General,Clarkston Legal,Google,Google+,NAAG,National Association of Attorneys General,privacy law,YouTube

Should Your Divorce Go To Trial

On Friday, I was sure that I was going to spend the entire day in a divorce trial; my first in a quarter century of practice. Didn't happen.

Why? Because trial in divorce rarely makes sense. This case, in Genesee County, had it all: a GAL for the minor children; a joint bankruptcy in the middle of the proceedings; two [failed] mediation sessions; motions from each side, jousting for the entry of temporary support and parenting orders.

The case was positioned for trial because both sides held onto rigid positions on many of the issues important in any divorce proceeding: custody, parenting time, child support, alimony and debt apportionment. My law clerk, a third year student at Wayne State, prepared an excellent trial brief; she had compiled a trial notebook, and we were prepared and ready to go.

As the case was the oldest on Judge Kay Behm's docket [18-months], I knew it was going to resolve one way or another.

The case did resolve, after 8-hours in the courtroom, because each of the parents made common-sense, strategic compromises. In the end, the parents each looked past their own personal wounds, and their self-centered agendas, and took into account the best interests of their minor children.

Don't get me wrong, I would rather conduct a trial than spend the entire day as I did Friday, painstakingly going over, discussing, negotiating, and resolving every aspect of a failed marriage and the flotsam that goes along with it. But as a divorce lawyer, I keep the best interests of the client in mind. Trial almost never makes sense.

So it may be that when I finally retire, I will have never conducted a divorce trial. Actually, that is a client-service goal of mine.

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Posted in: divorce,divorce lawyer,divorce settlement,family law,Genesee County Family Court,Judge Kay Behm

RadioShack Stung in Privacy Suit

Say it ain't so.  RadioShack may have hacked.

In an interesting privacy rights law suit being prosecuted right here in Detroit, in the U.S. District Court for the Eastern District of Michigan, Radio Shack just lost its motion for Rule 12b(6) summary judgment. 
The case, pending before Judge Victoria Roberts, now heads to trial.

The claim is that a RadioShack customer purchased a new cell phone and had his data transferred at a RadioShack store; the old phone was to be recycled.  A RadioShack employee allegedly accessed the images on the customer's old phone, saw some apparently objectionable pics from the customer taken at his place of employment, and in a "Big Brother"-like maneuver, sent the pics to the customer's employer.

The customer was fired and he is now suing RadioShack for violating his right to privacy and for breach of RadioShack's own cell phone disposal privacy policy.

Noting that very little discovery has been conducted in the case, chastizing RadioShack's counsel for raising two seminal "sufficiency-of-the-pleadings" cases in a reply brief, and intimating that questions of fact for a jury may exist, the Court denied RadioShack's motion for summary judgment.  The complete order is here.

One of the fact questions spotted by Judge Roberts was the scope of the consent the customer may have given to the store in accessing his images on his old cell phone. 

Imagine going into a RadioShack outlet to simply transfer your cell phone data [i.e. your digital life as you know it] to a new phone, and you wind-up getting fired because some entry level employee decides to police the content of your data, and forward selected portions of that data to your employer.  My guess is that this case will probably settle, and confidentially. 

In my humble yet professional opinion, RadioShack has some significant exposure on this claim.  At least they would if I was on the jury.

If you think your right to privacy has been compromised on-line and would like a free consultation to assess your potential claim, contact our law firm.

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Posted in: Judge Victoria Roberts,privacy,privacy rights,RadioShack

Social Media Presentations for Lawyers Are In Demand

With Lynn Krauss, President
Midland County Bar Association

Over the past several years, I have had the opportunity to address various bar organizations and industry groups on the topics of marketing and legal issues emerging within the social media context.  Lately, my bookings for such presentations have increased.

Lawyers now want to know how to market their wares electronically, and how to avoid the pitfalls.



Yesterday, I presented to the Midland County Bar Association.  They hold their monthly meetings in the spacious, and just-built, clubhouse at the Midland Country Club.

As bar association meetings go, it was a well-attended event.  The MCBA's Treasurer, Eric Larsen, attributed this to the topic he arranged: social medial marketing for lawyers.  Of the nearly 40 attendees, there was an even mix of general practitioners and Dow corporate attorneys.

The discussion focused on how to stay abreast of the constant wave of information; how to manage that information; and how to disseminate select portions of that information for a lawyer's prospects.  Hyper-local marketing was explained.  Tips were imparted on how to rise above the ever-present clutter that always seems to accompany search engine results.

The message in Midland was consistent with my other presentations: to get noticed on the Internet [i.e. Google, Yahoo, YouTube], lawyers marketing on the web need to frequently post relevant content that your target audience will find useful.

Now doing that, while managing a law firm, and actually practicing law, that is the challenge for the modern general practitioner.  More and more, lawyers and catching on to the social media wave.  For many, the good ole "yellow pages" ad is a distant memory.

Upcoming presentations on these topics will include a webinar sponsored by Thompson-West on Thursday, 02/23/2012, at 11:00 am EST.  Also, I will be on a panel of other practicing attorneys at the "Avvocating 2012" seminar in Seattle, WA in May.

Stay tuned as this is an ever-evolving topic.

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Posted in: Attorney Barb Krauss,Attorney Eric Larsen,Avvocating 2012,Dow Corporation,general practice attorney,Midland County Bar Association,social media

Narcissus Gets a Divorce

Narcissus admires his reflection.

In my decades of divorce practice, I've encountered folks who, if a psychological evaluation was completed, would be characterized as having narcissistic personality disorder.  A few of these peeps have been clients; others have been on the opposing side.

Either way, everyone involved is in for a rough ride.

Over the past several years, "narcissism" has also taken on a connotation-du-jour.  The diagnosis being made by dime-store psychologists (i.e. parties to family court litigation) whenever the object takes an opposing or contrary view. 

What is narcissim, really?

According to the Mayo Clinic, narcissistic personality disorder is "characterized by dramatic, emotional behavior, which is in the same category as antisocial and borderline personality disorders."   A person with this personality disorder may exhibit some of the following characteristics, according to the Clinic:

• Believing you are better than others;
• Fantasizing about your success, power and attractiveness;
• Exaggerating your achievements or talents;
• Expecting constant praise and admiration;
• Ignoring other's feelings and emotions;
• Believing and acting like you are really, really special;
• Taking advantage of others;
• Expecting others to go along with your often super-sized schemes and plans;
• Exhibiting jealousy toward others;
• Believing others are jealous of you;
• Unable to maintain healthy inter-personal relationships;
• Easily hurt or rejected;
• Fragile self-esteem

If you know someone with more than a few of these traits, run.  If you are married to such a person, get ready for the inevitable divorce proceeding when you finally throw in the towel, realizing that your spouse will never change. 

If you are a lawyer representing such a person, affix your chin strap and bring a lunch.

In the divorce context, the narcissist fares quite poorly.  The above-listed features of this personality disorder are routinely identifed and rigorously addressed by family court professionals. 

In this process, the personality flaws of the narcissist are forced itno the lab for a full-on forensic evaluation.  Many of the tools in the family court professional's arsenal will be brought to bear upon the conduct of the narcissist in an effort to force short-term modification, and to achieve a stable platform.

Some red flags that I've gleaned over the years: a narcissist will change lawyers often, blaming the status of the case on the mistakes of prior legal counsel.  Also, the register of actions in the case of a narcissist will often be a mile long, peppered with hearings, motions, and more hearings.

When a narcissist is embroiled in a divorce proceeding, the children are used as pawns.  Any input from the Friend of the Court [either via a referee, family counselor, or social worker] or from a therapist, is rejected; the narcissistic parent must be dragged to court, kicking, screaming and cursing.

In the years leading up to such a divorce, the other spouse will often report being chronically verbally abused and bullied by the narcissist.  In fact, this dynamic will set the initial tone of the proceeding.

The process will next feature a series of attempts, which will take some time, where the professionals try to arrest the insidious and pervasive conduct of the narcissist.  Arrest, but not change; this person will not change.

The other spouse many times will exhibit classic signs of emotional abuse during this painful process: low self-esteem, exhaustion, a desire to give up or give in.  This person needs a strong focused divorce lawyer.

And counseling. 

During the divorce process, the other spouse is well advised to minimize the face-to-face contacts with the narcissist.  If children are involved, then communicate through emails and texts. 

If you feel threatened at home or during parenting exchanges, seek exclusive use of the marital home.  If you are separated, use a neutral transition point for the parenting exchanges; most family court judges will grant such a request simply to err on the side of everyone's safety.

Finally, stay focused on the process knowing that the process will eventually come to an end.  The Michigan Supreme Court has mandated that county family courts conclude divorce proceedings within a year.

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Posted in: divorce,divorce lawyer,family court,family law,family law lawyer,Mayo Clinic,narcissism,narcissistic personality disorder,Narcissus

Nagging Outstrips Adultery as Primary Engine of Divorce

Toward the end of last month, you may have noted the stir that a WSJ article caused over the issue of nagging and its toxic effect on marriages. The article concluded that nagging may have more potential to bust apart couples than adultery.

As a divorce attorney in the third decade of practice, I’ve witnessed many clients complain about their spouse’s nagging; and about their cheating.  It is impossible to say which is more toxic to a marital union.

Nagging, as a relationship dynamic, is all about a breakdown of communication, and an attempt to reassert control.  The article clearly stated that it was women who did the nagging while men were on the receiving end.  The “experts” interviewed for the article opined that this was because of a woman’s role as a “manager” of the family; meanwhile men tend to, “feel like a little boy being scolded by his mother.”

For their part, women complain that, when they ask about something, they just want it handled. 

Problems arise, however, when a couple takes it to the next level, and begin to argue about the nagging, rather than the root problem.  Communication breakdown.

If a couple, even a committed couple, does not learn how to cope with the dynamic, they often wind up divorced in the long-run.  Professor Howard Markman of the University of Denver, cited and quoted in the WSJ article, says nagging is the “enemy of love”.

The real barometer here is the 400-plus comments on the article; they are hilarious.  Take a look for yourself.

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Posted in: communication,divorce,Professor Howard Markman,Wall Street Journal