Thomas A. Corletta

Thomas Corletta

This person attacked the quality of my services, calling me “unethical” on a public website. She waived the attorney/client privilege, and I am using facts obtained while representing her to defend myself. She claims I was “out of line” by advising her to “get rid of” her home. Her home had 2 mortgages with a balance of about $94,000.00. The tax assessment, which is usually high, was $102,000.00. Therefore, the home had virtually no equity. Further, her income was insufficient to support 2 mortgages. Bankruptcy allowed her to discharge the mortgages, and to walk away. She has no personal liability to the bank, which would have been forced to retake the property & sell it at their expense. She did not have to pay 2 mortgages. She could have lived there at least a year free before having to vacate. Part of my job is to give financial advice to Bankruptcy clients. People filing Bankruptcy have usually made poor financial choices. That is why Congress passed Bankruptcy Reform legislation in 2005. Debtors are required to get Credit Counseling & take a Financial Education course. As to Reaffirmation Agreements, debtors do not reaffirm real property for 2 reasons. First, it is not legally required. Most banks don’t even ask for reaffirmation on real property, because they can always foreclose if not paid. Debtors are only legally required to reaffirm personal property, like automobiles. This debtor did that. Second, if a debt is reaffirmed, there is no Bankruptcy protection on that debt. If something happens later and debtor can't pay, they can be sued on that debt just as if they hadn’t filed Bankruptcy. Bankruptcy gives a fresh start & helps escape oppressive debt. It is not a “credit repair” device. It is legal debt repudiation. No remedy like it exists. This debtor took full advantage to discharge nearly $30,000.00 in legitimate debt. She also discharged her personal liability on the mortgages. She chose to pay them & kept the home because Bankruptcy protection does not extend to collateral. A lender can repossess collateral, which is security for the loan. Since debtor continued to pay the mortgage, she kept the property, which had no value, other than as a place to live. She fails to mention the lender refusing to “qualify” her is the same lender holding her current mortgages. She also included an unsecured line of credit to that same lender in her Bankruptcy, which was fully discharged. That lender will now not qualify her. She can always go elsewhere. Finally, Bankruptcy is adverse credit information, and is reported on a Credit Report for 7-10 years. Debtor was fully aware of this. She took full advantage of the law, & received a Discharge without objection. Her “complaints” are not only specious, but false & misleading. I am considering suing her for defamation. I have successfully represented over 4,000 people in Bankruptcy proceedings.