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In the midst of the troubled economy has made many business and families unstable leaving several people struggling financially. The statistics show that the number of home foreclosures has been ever rising with no obvious signs of tapering off. According to the Minnesota Home Ownership Center, Foreclosures in Minnesota have risen points Minnesota bankruptcy lawyer. In the middle of this pattern of foreclosures, the United States Trustee Program along with Executive Office of the U.S. Bankruptcy Trustee (EOUST) attached to the division of the U.S. Department of Justice, has taken up to ensure the uprightness of the administration of federal bankruptcy cases. This was done by conducting an inspection of the paperwork filed by mortgaged companies with the bankruptcy court to have a closer look at the foreclosures. The analysis of the papers, called 'proofs of claim,' revealed an astounding inaccuracy. In the past, the mortgage lenders had asserted that errors took place in less than 1% of bankruptcy cases, while the Trustees established problems in over 10% of the cases when reviewed Minnesota bankruptcy. Some common issues that Trustees came across consist of: • Exaggeration of the amount debtor owed, by lenders. • Improper filing or incomplete paperwork documented by the debt Lenders • Charging of uncorroborated fees by lenders Consequently, the EOUST embarked on necessitating the mortgage companies to supply proof to authenticate their claims. Many mortgage companies confronted the authority of the EOUST for requesting this documentation and in rejoinder, the members of Congress proposed the Fighting Fraud in Bankruptcy Act in order to help U.S. Trustees contest this problem explains Minnesota bankruptcy lawyer. In retort to lenders' legal confrontation, the members of Congress planned the Fighting Fraud in Bankruptcy Act of 2011 and this 'Act' has four main goals: • Explicitly states that U.S. Trustees have the power and duty to take action upon detecting fraud in the bankruptcy process • Grants the Trustees the authority to perform audits for ensuring the authenticity of creditor claims and if the creditors are observing the law • Once an audit exposes a fraud, the court is empowered to make corrections and endorse the fraud • Entails that lenders state under penalty for false swearing (perjury) in case of foreclosures against active members of the military who meets the standards of the Service members Civil Relief Act About the author: Richard writes for the legal firm Minnesota bankruptcy lawyer. The law firm led by Chad and Michael Bolinske offers companies and individuals bankruptcy help. People looking for file for Chapter 7 or Chapter 13 bankruptcy are not always aware of the filing procedure and that's where a Minnesota bankruptcy lawyer would come in very handy.
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