​The real estate industry is standing at a pivotal crossroads due to a recent settlement that has upended the age-old commission model. The customary 6% realty fee, traditionally split between buyer’s and seller’s agents, is no longer a market standard, paving the way for new negotiation dynamics and fee structures.
This paradigm shift prompts a critical examination of the old incentive system where higher property prices resulted in heftier paychecks for buyer’s agents, ostensibly benefitting both parties. However, today’s market-savvy buyers often commence their property searches online, making one wonder about the value proposition of a buyer’s agent who is not financially motivated to press for a lower price.
Take the instance of purchasing a $1 million house. A $60,000 commission—once evenly split between agents—raises eyebrows when questioning the true cost-to-service ratio. The reformation opens the door for attorneys to step in as negotiators for buyers, working at hourly rates with a clear directive to lower costs, potentially providing a more cost-effective and goal-oriented service.
The shift could also lead to a significant exodus of buyer’s agents from the industry. The absence of predictable commissions might drive them to seek retainers, but buyers, especially those reliant on mortgage financing, may find such upfront costs daunting.
A silver lining, however, emerges in the potential decrease of “steering”. Agents have been known to favor properties offering higher commissions, often bypassing FSBO (For Sale By Owner) listings. The new norm could democratize property exposure, offering buyers a more comprehensive view of the market and sellers, even without agents, a fair chance.
In essence, while this transition challenges conventional practices, it heralds an era of transparency and equity in real estate transactions. The alignment of fees with actual service, the potential for more vigorous negotiation, and an equitable market for all listings, could redefine the value of a home purchase, placing the true interests of buyers and sellers at the forefront.

In today's economy, inflation is a reality that affects all of us, particularly when it comes to essential purchases like groceries. As prices rise, families and individuals may find it increasingly challenging to maintain their standard of living without adjusting their spending habits. For those navigating financial difficulties or bankruptcy, managing grocery expenses becomes even more critical. Here are practical strategies to combat inflation at the grocery store and keep your budget in check.
1. Plan Your Purchases

Start with a plan. Before heading to the grocery store, take inventory of what you already have. Plan your meals for the week based on these items and buy only what you need to complete your meals. This strategy helps avoid impulse buys and waste.
2. Embrace Coupons and Discounts

Coupons, sales, and discount apps can be a game-changer for reducing grocery bills. Many stores offer loyalty programs that provide access to exclusive deals. Apps like Ibotta or Checkout 51 offer cashback on grocery purchases. Combining these deals with store sales can lead to significant savings.
3. Buy in Bulk

Buying in bulk can offer substantial savings, especially for non-perishable items or products you use regularly. However, it's important to have storage space and to avoid buying bulk items that could expire before you use them.
4. Choose Store Brands

Store brands are often significantly cheaper than their name-brand counterparts and the quality is usually comparable. Switching to store brands for staples such as cereals, baking ingredients, and canned goods can save a considerable amount each trip.
5. Shop Seasonally and Locally

Produce that is in season is not only fresher and tastier but often cheaper. Farmers' markets and local produce stands can offer competitive prices and the opportunity to support local businesses.
6. Reduce Waste

Americans waste a staggering amount of food each year. Being mindful of what you throw away can save money and help the environment. Freeze leftovers, repurpose food scraps, and be creative with meals to use up what you have before buying more.
7. Consider Plant-Based Proteins

Meat is often one of the most expensive items in the grocery cart. Incorporating plant-based proteins like beans, lentils, and tofu can reduce your grocery bill and offer health benefits.
8. Limit Convenience Foods

Pre-cut fruits and vegetables, pre-cooked meals, and other convenience foods are usually more expensive. Taking the time to prepare and cook food yourself can lead to significant savings.

Inflation may be beyond our control, but how we respond to it, especially in managing our grocery bills, is within our grasp. By adopting a few, if not all, of these strategies, you can make your dollar stretch further without sacrificing the quality and enjoyment of your meals. Remember, managing your grocery spending is not just about surviving inflation but also about thriving despite it, making every cent count towards your financial health and well-being.

Bankruptcy cases can be complex and challenging for both debtors and creditors. However, a recent Supreme Court ruling has shed light on an important aspect of consumer bankruptcy: the ability of consumer debtors to sue tribes for violating the automatic stay. In this blog post, we will explore the implications of the Lac du Flambeau Band of Lake Superior Chippewa Indians, et al. v. Coughlin case and discuss the specific requirements tribes must adhere to under the Bankruptcy Code.

Background of the Case

On June 15, 2023, the U.S. Supreme Court delivered its decision in the case involving Lendgreen, a tribal entity that had provided a high-interest, short-term (aka a cash advance or 'payday') loan to an individual named Brian Coughlin. Coughlin subsequently filed for bankruptcy under Chapter 13. Lendgreen, believing it was exempt from certain provisions of the Bankruptcy Code, including the automatic-stay provisions, continued its debt collection efforts despite the ongoing bankruptcy proceedings. In response, Coughlin filed a motion to enforce the automatic stay against Lendgreen, its parent corporations, and the tribe.

The Court's Ruling

The Supreme Court's ruling in Lac du Flambeau clarified that tribal sovereign immunity does not shield tribes from specific requirements of the Bankruptcy Code, as outlined in 11 U.S.C. § 106(a). The Court determined that the definition of "governmental unit" within Section 106(a) includes tribal governments, effectively abrogating their sovereign immunity for the enumerated provisions of the Bankruptcy Code. This decision resolved a circuit court split that had persisted since 2019.

Important Provisions Implicated by the Ruling

The Lac du Flambeau ruling has significant implications for various provisions of the Bankruptcy Code. It's essential for tribes and tribal entities to familiarize themselves with these provisions and seek legal advice when necessary. Here are some key provisions affected by the ruling:

1. Sections 362, 524, and 1141: These sections establish the automatic stay, discharge, and plan injunctions, providing debtors with protection during bankruptcy proceedings. Violations of these provisions, including attempts to collect prepetition debts, can result in sanctions and punitive damages.
2. Sections 542 and 543: These provisions address turnover actions, requiring entities in possession of the debtor's property to return it to the debtor or trustee upon request. 
3. Sections 546, 547, 548, 549, 550, 551, and 749: These provisions enable debtors or trustees to initiate avoidance actions to invalidate pre-bankruptcy transactions. 
4. Section 363: This provision allows debtors in possession to sell their assets "free and clear" of liens, claims, and encumbrances. 
5. Sections 105 and 524: Under certain circumstances, Chapter 11 plans may include nonconsensual third-party releases, releasing nondebtor parties from liability without the consent of all potential claimholders. 

Conclusion

The Supreme Court's decision in Lac du Flambeau Band of Lake Superior Chippewa Indians, et al. v. Coughlin has clarified that tribes are subject to certain provisions of the Bankruptcy Code.  The bottom line is that while in the past, where tribe ownership has been used as a shield to prevent debtors from clawing back funds in excess of $600 taken during or within 90 days of filing bankruptcy, if you file bankruptcy you are protected and can get your money back and prevent further collections actions.  If this has happened to you, contact me at 248.719.5663  immediately so I can help you!

The debt ceiling is the maximum amount of money that the United States government is allowed to borrow. If the debt ceiling is not raised, the government will not be able to pay its bills and could default on its debt. This would have a number of negative implications for the financial system, including:

• A decline in the value of the U.S. dollar would make it more expensive for Americans to buy imported goods and services. This would lead to an increase in inflation, which would erode the purchasing power of consumers and businesses.
• An increase in interest rates would make it more expensive for businesses to borrow money and invest. This would lead to a decline in investment and economic growth.
• A decrease in consumer spending would lead to a decline in economic growth. This would have a ripple effect throughout the economy, leading to job losses and a decrease in tax revenue.
• A loss of confidence in the U.S. financial system could lead to a financial crisis. This would make it more difficult for businesses to get loans and could lead to a substantial decline in the stock market.

A debt ceiling default would have a devastating impact on the U.S. economy and the global economy. What would this mean for consumers?  It would be much more difficult to borrow to purchase or lease a vehicle.  Mortgage rates would likely increase substantially.  Because of 'credit tightening' in the broader economy, and reduced lending, many businesses would simply be unable to continue or operate, leading to mass layoffs and a recession.  This, in turn could have downward pressure on housing prices, but with very few buyers or money circulating in the economy, it would be difficult to sell.  If you have credit card debt or personal loans, you could expect your interest rates to increase, and your job to be less secure.  It is expected that if this happens, bankruptcies, both business and consumer, would be in high demand. 

As a lawyer, I often receive questions from clients about debt settlement and debt consolidation as alternatives to bankruptcy. While these options may seem appealing on the surface, I firmly believe that filing for Chapter 7 or Chapter 13 bankruptcy is almost always a better choice. Here's why:

1. Legal Protection: When you file for bankruptcy, you receive legal protection from your creditors through an automatic stay. This means that your creditors are prohibited from pursuing collections actions against you, including wage garnishments, bank levies, and foreclosure. In contrast, debt settlement and debt consolidation do not provide any legal protection, leaving you vulnerable to continued collections efforts.
   
2. Debt Discharge: Chapter 7 and Chapter 13 bankruptcy both provide the opportunity for debt discharge, meaning that some or all of your debts can be eliminated. Debt settlement and debt consolidation may result in lower payments, but they do not discharge any of your debts.
   
3. Payment Terms: In Chapter 13 bankruptcy, you can restructure your debts into a manageable payment plan that lasts three to five years. This can help you catch up on missed payments and get back on track financially. You can also lower your payments in some cases during the plan. Debt settlement and debt consolidation may offer lower monthly payments, but the payment terms are often longer and fixed, meaning you end up paying more in the long run.
   
4. Legal Counsel: When you file for bankruptcy, you have the benefit of legal counsel throughout the process. An experienced bankruptcy attorney can help guide you through the process, ensure that your rights are protected, and advise you on the best course of action for your particular situation. Debt settlement and debt consolidation may not provide the same level of legal counsel and protection.
   

In summary, while debt settlement and debt consolidation may seem like attractive alternatives to bankruptcy, they often do not provide the same legal protection, debt discharge, payment terms, or legal counsel that bankruptcy does. If you are struggling with overwhelming debt, it's important to consult with an experienced bankruptcy attorney to discuss your options and determine the best course of action for your specific circumstances.

During Covid-19, the Federal Government mandated that Federally backed mortgage lenders offer their customers forbearance plans. 

You had  a right to a COVID hardship forbearance if:

• you experienced financial hardship directly or indirectly due to the coronavirus pandemic, and
• you had a federally backed mortgage, which includes HUD/FHA, VA, USDA, Fannie Mae, and Freddie Mac loans.

For mortgages that were not federally backed, servicers offered similar forbearance options.

Your initial forbearance plan typically lasted 3 to 6 months. If you needed more time to recover financially, you could request an extension. For most loans, your forbearance could be extended up to 12 months. Some loans were eligible for up to 18 months of forbearance, depending on when your initial forbearance started. 

• If your mortgage is backed by Fannie Mae or Freddie Mac : You were allowed to request up to two additional three-month extensions, for a maximum of 18 months of total forbearance. But to be eligible, you must have been in an active forbearance plan as February 28, 2021.
• If your mortgage is backed by HUD/FHA , USDA  , or VA : You were able request up to two additional three-month extensions, for a maximum of 18 months of total forbearance. But to qualify, you must have requested an initial forbearance plan on or before June 30, 2020. Not all borrowers qualified for the maximum.

But now that many of these forbearance plans have come to an end, what are you supposed to do with the amount you owe?  What happens to all of those payments?  They don't just disappear, sadly, and strangely enough, congress didn't mandate that forbearances had to be resolved through a loan modification.  Instead, outside of selling or letting your home fall into foreclosure, you essentially have three choices.

(a) Modify your loan.
(b) Refinance your loan.
(c) File Chapter 13 to get caught up.


Let's go through each.  Assuming your lender wants to resolve your deficiency for a loan modification, and you qualify for one based on your income and expenses, they can be of two types.  First, they could offer you a separate claim modification.  This type of adjustment pulls your forbearance balance away and segregates it until your loan is paid in full.  It collects no interest, and you are not required to make payments on it.  This is often the best outcome for these types of forbearance plans.  However, one day, you'll run into that claim again when you want to sell, refinance or pay off your home in full.  Be prepared for it as part of your long term plans, and also be aware that refinancing with that claim may be more difficult than without it.  Second, they could offer that they modify your entire loan over 30 to 40 more years, including the balance of your forbearance.  This is the worst of the two outcomes, likely increasing your payments each month and over time, the amount the mortgage company will receive with interest.  It will be much higher than you would have paid had you stayed current. However, this option makes it more likely that you can refinance in the future.

Your second option would be to refinance your home, but you may find it difficult to locate a lender who will work with you after a forbearance.  You may need to wait 12 or more months with on time payments to qualify.  While refinancing can look attractive, there are many downsides.  First, the fees and costs that you might not notice get pumped into the loan, and you will pay tens of thousands of dollars on those over time.  Second, oftentimes consumers will use a refinancing to pay off unsecured debt - essentially putting their home at risk over credit cards, and then paying interest over the next 30 years.  It's a win for the creditors, but a loss for you, especially over time.  Third, interest rates have gone up significantly recently.  This can mean hundreds of dollars more per month than you would have paid during the pandemic.

Your third option would be Chapter 13 bankruptcy.  Many people have a negative view of bankruptcy in general thanks to the drum beat of negative press from the media and banks, and while it does hit your credit, it is often a perfect choice after major crisis like recessions and pandemics.  Chapter 13 will help you get caught up, interest-free, over as long as 60 months.  It will often pay your unsecured creditors as little as zero cents on the dollar, and resolve tax debt, vehicle payments and any other debt you might have.  It is a one-payment plan, encompassing all of your debt, and often saving you thousands if not tens of thousands of dollars.  It stops collections actions, stops foreclosures, and if your mortgage payment is too high to begin with, it can give you an opportunity to handle your other debt while requesting a loan modification within the safety of Chapter 13.  

If you have questions about any of these options, reach out to me personally so I can help you guide you on the best one to chose!

​- Jesse Sweeney, 248.719.5663

While it's a difficult decision to make, after going through your budget and realizing you can't pay off your debts before the year 3000, you decide to file bankruptcy. But what does it take to plan for a bankruptcy? Is there even such a thing? While there isn't a lot you need to do before filing, except speak to an attorney, there are some things you absolutely want to avoid to make your bankruptcy case as smooth as possible.


1. DON'T GIVE AWAY ANY PROPERTY

One of the biggest mistakes I see before people file bankruptcy is that sometimes they decide to sign the title over to their home or car to a friend or relative 'to protect it from creditors'. Not only won't this protect your property from creditors, but it could put those items at greater risk. In bankruptcy you have the ability to protect some personal property and real estate with state or federal exemptions to a certain extent, and if you cannot protect all of it in a Chapter 7, you can typically in a Chapter 13 case. Even if you don't file a bankruptcy, giving away your property to a family member or friend when you owe your creditors money can be completely set aside by those creditors. Instead, before you act rashly, contact an attorney to go over what you need to do with your big ticket items to ensure they are protected. If you want to see what could go wrong when transferring your property to someone else, check out Tiger King on Netflix.


2. DON'T SELL ANY PROPERTY

As a corollary to the first mistake, this isn't the time to start raising cash. This can present two problems: first, the sale might be closely scrutinized to determine if it was at fair market value. That could mean the trustee in your case contacts the buyer and sets the sale aside. Second, assuming you sell the property and it was exempt, converting it to cash may not protect it at all. Exemptions are different for each type of property. For example, you may be able to exempt thousands of dollars for your personal residence, but much less once it is sold, depending on the circumstance. So do yourself a huge favor – talk to an attorney first before you make any major moves.


3. DON'T BORROW MONEY

If you're filing bankruptcy, now is not the time to borrow money. Why? It looks bad if you borrow on the eve of filing, especially if it's unsecured debt like a line of credit or a credit card. If you borrow money and then file bankruptcy right away, creditors may object to your discharge unless you exclude them from the filing. Moreover, what are you borrowing money for exactly, and where will that money go once it is borrowed? If it's going to buy food, that may not be as big of a problem as going to Disney World, but before you borrow a penny, talk to an attorney. As a corollary to this, don't co-sign on any debts, whether it's for your friend or family member. Not only could you put their co-signed collateral in jeopardy, it may make you chose between your relationship and getting a fresh start from your debt.


4. DON'T PAY FAMILY, FRIENDS OR ASSOCIATES BACK

Borrowing before filing is one thing, but paying back your relative or your buddy who loaned you more then $600 could be a problem. Paying back an 'insider' as they are called, more than $600 in the prior year before filing means that the payment can be clawed back by the trustee and distributed to your creditors. Worse? You may feel morally compelled to pay them once your case is over, and then you'll wind up paying twice. Instead, let your friend or family member know you cannot pay this debt, or any debts and you are filing bankruptcy. Do you believe you must pay them back, no matter the consequences and you don't want the trustee to take this money from then? You can do that, but you're going to need to wait another year to file bankruptcy.


5. DON'T GO ON VACATION

It's certainly not illegal to go on vacation before filing your bankruptcy case, but understand that your bank accounts may be subject to careful examination, and if they see you dropped $1500 to go to Europe a few weeks before filing, they might have reason to believe your case was not filed in good faith. Also, did you have to borrow money to go on that vacation? See number 3 above.


In summary, these are the top 5 things you don't want to do before filing bankruptcy. There are more than these above, but in general, if anything you're trying to do involves more than $600, stop, wait, and seek legal advice. Big moves arouse suspicion. Lay low, and you'll stay under the radar. For more information, feel free to contact me.