openPR Logo
Press release

Rebuttal to Attacks from Bankruptcy Attorneys

02-23-2007 05:29 PM CET | Industry, Real Estate & Construction

Press release from:

/ PR Agency: GroupWeb EmailWire.Com
EmailWire.Com: Patrick McGilvray, J.D.

EmailWire.Com: Patrick McGilvray, J.D.

( EMAILWIRE.COM, February 23, 2007 ) Sacramento, CA -- Bankruptcy Attorney Jay Fleischman recently wrote on the internet that my comments in an article were false and absurd (see original article at “Bankruptcy Won’t Stop Foreclosure For Troubled Borrowers Forever”). Mr. Fleischman also wrote that “profit is all too often the reason that truth is tossed to the side.” Mr. Fleischman took my words out of context and failed to include the full text of my quotations (see below).

Mr. Fleischman makes his own profits by helping people file for bankruptcy, and it is understandable that he believes that bankruptcy is a debtor’s best solution, but this is not always the case in the context of dealing with the mortgage on their house.

I wrote in my original article:

“at best, bankruptcy can forestall a borrower’s loss of their home, and at worst it can provide a false sense of security. Many borrowers will simply not be able to cure their underlying financial difficulties that led them to default on their mortgage payments, especially if they lied about their income on their mortgage application.”

This quote was not included in Mr. Fleischman’s critique of me, yet it speaks to the core of something he ignores. Bankruptcy does not discharge mortgage debts against a home, but many laypeople believe that it does.

What Mr. Fleischman ignores is that many people, even those in Chapter 13 bankruptcy, will not be able to catch up on their missed mortgage payments by agreeing to and sticking to a repayment schedule that includes currently due and past due amounts.

Especially in California many homeowners, up to 90% according to many experts, lied on their mortgage applications about the amount of income they made. Compounding this situation is the confusing nature of the pervasive Adjustable Rate Mortgage loans (ARMs) that often result in dramatically increased mortgage payments for borrowers after a series of very low payments.

Bankruptcy often serves as a Band-Aid for struggling borrowers and ultimately does not prevent them from losing their homes to foreclosure. Many people who retain an attorney to file bankruptcy for them will in fact lose their homes ultimately to foreclosure and will suffer the negative effects of a bankruptcy such as damage to their credit rating and will be responsible for large attorney’s fees to boot.

People say that sometimes the best telephone call a person in danger of losing their home to foreclosure can make is to a real estate investor who can help them avoid foreclosure and/or bankruptcy without the damage to their credit rating. Real estate investors across the country do indeed have a profit motive in purchasing a home from a borrower facing foreclosure and the ethical among us admit this upfront. We believe in full and frank disclosure and hope that bankruptcy attorneys and foreclosure consultants subscribe to this philosophy as well.

California real estate law guru Robert J. Bruss had this to say recently regarding foreclosures at :

“Do everything you can to avoid a foreclosure sale. Worse yet, filing for bankruptcy would merely delay losing your home by foreclosure if you are unable to make the monthly payments.”

I consider myself to be in good company when such an esteemed expert echoes my comments and I emphatically reject Mr. Fleischman’s insinuations and misrepresentations about my comments.

Patrick McGilvray, J.D.
President –
Tel: 916-920-3278


This press release was issued through GroupWeb EmailWire.Com. For more information on press release distribution, go to

This release was published on openPR.

Permanent link to this press release:

Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release Rebuttal to Attacks from Bankruptcy Attorneys here

News-ID: 16175 • Views: 1381

More Releases from

Subprime Mortgage Defaults Drag Down Consumer Confidence
( EMAILWIRE.COM, April 30, 2007 ) SACRAMENTO - Mortgage defaults and rising gas prices are among the top reasons why April of 2007 witnessed the lowest level of consumer confidence in over eight months. New York’s Conference Board’s index of consumer confidence dropped to 104.0 this past month. This figure is down from 108.2 in March. Last year’s index average was 105.9. Consumers reported that they don’t believe
Former President Carter Comments on Subprime Mortgage Crisis
( EMAILWIRE.COM, April 02, 2007 ) LOS ANGELES, CA - Ex-President Jimmy Carter announced at a nonprofit organization’s event that he thought that housing assistance programs would be even more necessary in the coming years as a result of the problems with subprime mortgages and subsequent foreclosures. Speaking with executives from Habitat for Humanity International the former President said, “I think the subprime market being so fluctuating and
Free Real Estate Investor Nationwide Conference Call with Gene Burns Tuesday Mar …
( EMAILWIRE.COM, March 27, 2007 ) SACRAMENTO, CA - Real estate expert Gene Burns will be appearing on a Live conference call on Tuesday March 27 at 7:00 P.M. Pacific Time sponsored by Find and Work With Distressed Sellers & Motivated Buyers Mr. Burns will be discussing how to sell properties in this market and how to work with distressed sellers. He will share specific strategies on
Subprime Mortgage Foreclosure Woes Scrutinized By U.S. Senate
( EMAILWIRE.COM, March 23, 2007 ) WASHINGTON - At the Senate Banking Committee hearings on Thursday officials downplayed the potential spread of problems in the subprime mortgage sector. One official, Roger Cole, Director of the Federal Division of Banking Supervision and Regulation told the committee that he thought the deterioration in the housing market would stay limited to the subprime sector. “We are not observing spillover effects from

All 5 Releases

More Releases for Fleischman

Leading B2B Marketing Agency, Televerde, Hires VP of Call Center Operations
Phoenix, AZ, March 1, 2012 – Televerde, leading B2B marketing agency and provider of sales pipeline development solutions that drive increased revenue for its clients by integrating contact data, marketing automation and world-class teleservices, has hired Karen Schweitzer as Vice President of Call Center Operations. Previously a consultant with Phone Works, Schweitzer had been working closely with Televerde’s cross-functional management team as part of the company’s ongoing “Client Success” initiative designed
B2B Marketing Leader, Televerde, Executive to Judge National Business Awards Com …
PHOENIX (Feb. XX, 2012) – As a testament to Televerde's growing position as a B2B marketing leader, the company's Senior VP of Global Sales Donna Kent has been tapped to serve as a judge for the Stevie Awards for Sales & Customer Service, one of the most prestigious business awards competitions in the world. "The Stevie Awards are judged by many of the leading figures in business," said Televerde President and
Phoenix B2B Marketing Agency, Televerde, to Present at DemandCon on Leveraging I …
Phoenix, AZ, Sept. 1, 2011 – Phoenix B2B marketing agency, Televerde, is a sponsor and presenter at DemandCon 2012, to be held March 5-6 in San Francisco. The lead generation company is presenting a general session with a client called “No Leads Left Behind: Leveraging the Investment in Recycled Leads to Discover New Revenue Opportunities.” DemandCon is dedicated to presenting actionable insight to its attendees on managing the complete sales
ProfitCents Assists CPAs in Complying with Looming Risk Assessment Standards
Sageworks Inc., the developer of ProfitCents Analytical Procedures, is assisting Certified Public Accountants (CPAs) to comply with a series of new Statements on Auditing Standards (SAS). CPA firms are reconsidering their approach to auditing financial statements as they assess the impact of what is commonly being referred to as the “new risk assessment standards”. Under the new standards, the procedures and documentation requirements for compliance have become more stringent.