Posted by Loretta Reed on 9/22/07 8:08am
Msg #212564

Express Financial article in the Pittsburgh Tribune-Review..

I read an article about the meltdown of Express Financial, Ron DaParma wrote a good article about the owner of Express.

I couldn't help but ride him back. I told him how disgusted I was that owners of these types of companies could hide behind their LLC Corp and go out of business and not pay us for services rendered. I saw the Hud's, I know what funds were suppose to be paid out and if they didn't, they should go to prison. They live in million dollar homes, drive a benz or a Bentley and hide under their corporation when they decide to jump off of the ship. I did a service and I am expecting to get paid.

Ron is interested in hearing from anyone that will go "on the record", I have already sent him my opinions and now he wants people who have been burned for 1,000's from Express and he also is interested in finding borrowers that their loans did not fund because Express closed down. Email him at [e-mail address] or call him at 410-320-7907

I have contacted attorney and I have come up with the conclusion that I am not to do another closing for anyone unless I have a contract in writing and I do not go over 30 days for payment. I have demand letters and I am going to continue to be a courteous closer but a b*tch about payment and don't expect me to wait around for payment. File your judgments against Express and get ready to stand in line but you must file those judgments immediately. I only know about MD law so if you live somewhere else, I have no clue how you can do this, get an attorney. You have to have an attorney friend out there that you do closings for that will tell you what to do and help you for free (I have one of those).

Reply by Laura Vestanen on 9/22/07 10:09am
Msg #212568

Loretta

Would you please ask your attorney for the court's address for payment requests?

The bandruptcy judge is the one who decides who gets paid. There are many judges who are sympathetic to the "little guy" and prioritize payments to them over payments to large corporations and lenders.

I think you could be helping hundreds of notaries if you posted the address on this board.

Reply by Linda_H/FL on 9/22/07 10:28am
Msg #212571

Re: Loretta...also...

two things:

1. If they have, in fact, filed bankruptcy, they're judgment proof...and

2. Bankruptcy regulation is Federal.

Reply by Ernest__CT on 9/22/07 10:31am
Msg #212572

No! Having filed bankruptcy does NOT make anyone ...

... judgment proof! It just makes it harder to collect.

Reply by Linda_H/FL on 9/22/07 10:33am
Msg #212573

Re: No! Having filed bankruptcy does NOT make anyone ...

Have they even filed bankruptcy? I only heard they closed their doors.

Reply by Linda_H/FL on 9/22/07 10:40am
Msg #212575

Re: No! True, Ernest...I mis-stated that..

But any court action to acquire a judgment will have a stay imposed until the resolution of the bankruptcy matter -

Reply by Barb/MO on 9/22/07 11:13am
Msg #212579

My two cents

It's so hard discussing the effects of a bankruptcy filing when it's not yet known if one has been filed. I will say that I would recommend against anyone sending payment requests to any judge, even a bankruptcy judge. The priorities in payments to creditors is codified, so judges don't have latitude in deciding who gets paid. I have seen in some approved Chapter 11 plans where creditors with smaller unsecured claims receive different treatment than those with larger ones, but not necessarily better. In the case of EFS, as far as I know, a bankruptcy filing hasn't been verified.

It's so hard to discuss the effects of a bankruptcy filing in the abstract, so I'm suggesting if you'd like a better understanding, you Google "business bankruptcy primer," and review some of the sites that come up. You can probably find answers to your questions concerning post-filing collections there, too.

Reply by BrendaTx on 9/22/07 1:41pm
Msg #212603

Re: My two cents

**against anyone sending payment requests to any judge, even a bankruptcy judge.**

That's kind what I was thinking too. Contacting the judge without disclosure to both parties is generally a problem...but you know...I am certainly not up on anything bankruptcy so I wouldn't know much of anything certain.

Reply by Kevin/Ct on 9/22/07 2:28pm
Msg #212606

Re: My two cents



If you have a claim against a bankrupt...it is customary to file a proof of claim with the court with your invoice attached. If your client is bankrupt and you are an unsecured creditor...do not count on getting very much.

Reply by sue_pa on 9/23/07 8:24am
Msg #212663

exception

First Plus direct filed for bankruptcy in 1998. I receive periodic payments from the trust. My last payment indicated I had received 74.86% of my payment. Should be receiving another check the first week of October. I also get 8% interest on my $175. By the way people, their $175 fees - more than a decade ago - were for overnight docs.

Reply by sue_pa on 9/23/07 8:30am
Msg #212664

Re: Loretta

you can't send 'payment requests' per say to a court. If and when Express files for bankruptcy, you will be sent the requisite forms (Proof of Claim) to file and a systematic dissolution of their assets and payment of their debts will occur. All this is pursuant to statute - not because a judge feels sympathetic to the little guy. I'd actually think that is completely wrong in a bankruptcy case. I think there is a prioritized order such as wages and taxes first, secured creditors next, with unsecured at the end all receiving the exact same percentages - not "the utilities are are big business and can take the hit easier than Nancy Notary who is small - let's give her a bigger chunk than the phone and electric."

Reply by Loretta Reed on 9/22/07 12:08pm
Msg #212588

Isn't that funny...

I was half asleep when I posted this morning. The first sentence on the second paragraph says that "I couldn't help but 'ride' him back". Sorry about that.

Reply by CaliNotary on 9/22/07 1:08pm
Msg #212596

Re: Isn't that funny...

Awwww, and here I was thinking you meant something dirty and that you found a novel way to collect your debts

Reply by Nick/MD on 9/23/07 12:09pm
Msg #212675

Re: Isn't that funny...

EFS closed their doors on 09/14 and filed bankruptcy on Monday, 09/17; I received a check on Friday 09/14 from them for a large amount... their VP told me to run to the bank, which I did... guess what it bounced because they filed Monday morning and their accounts were frozen.. plus, with them filing bankruptcy, the trustee could have come back to me within 60-90 days for me to repay them back... I know all this because everything is in the hands of my attorney. All the attorney's I have spoken to have told me, not to expect anything because once they file bankruptcy, they will pay if there is anything their secured creditors first, we as contractors are considered unsecured creditors... so we all stand in line. I have every written confirmation from them for every closing I ever did, showing the fee and my name on it... one thing I have learned, is have the title company show your fee as your name on the line item on the HUD. EFS never has done that.

Reply by Barb/MO on 9/23/07 6:11pm
Msg #212701

As to preferential transfers, there is some good news

As to Nick's statement, "the trustee could have come back to me within 60-90 days for me to repay [payment by a check that ultimately bounced]," mitigating circumstances can impact that. Since some other SAs or others as creditors may have received "good" payments by checks that did clear the bank within the 90 days of filing, I'll share the good news.

Here's a really simplistic explanation. Actually, a bankruptcy trustee has two years to recover alleged preferential payments or transfers made by debtor to its arms-length creditors within 90 days of filing. However, those creditors can defend against such demands on certain grounds, including that the payment(s) was made in the ordinary course of business between the parties (ex., these payments were on invoices about 60 days old, as were earlier payments made in the history between them) and where the creditor has subsequently provided new value. So, where you continued to provide services during the same period you were receiving these alleged preferential payments, the timing and value of these services are to be taken into account. So, in this instance, the fact that you continued to work for EFS, even if you didn't get paid, would work in your favor as to an allegation of a preferential transfer.

So in this case or any other, where a trustee tries to recover a preferential payment(s) from you, don't despair. All is not necessarily lost, especially where you had an ongoing relationship with the debtor. If you ever are faced with such a demand, and don't want to just roll over and pay the demanded amount, be sure you enlist the assistance of an attorney who's familiar with the defenses available to an allegation of preferential transfer or payment.

(In my last corporate job with a telecommunications company, I responded to such demands, and always, where the debtor continued on our services, we were able to defend against such demands, primarily using the ordinary course and new value defenses.)