• Minnesota Auto Dealership Mogul Claims Bad Bankruptcy Advice put Him in Prison

    It has been two years since Denny Hecker filed for personal chapter 7 bankruptcy. Hecker says he filed because his lawyers told him it was the only way to get the “gorilla” off his back. The “gorilla” in question is creditor Chrysler Financial. Hecker owed the financial arm of the automaker $767 million, and lesser amounts to other creditors.

    Hecker states that his gut told him not to file, but he succumbed to pressure from long-time trusted friends, employees with a vested interest in the company, and his spouse at the time. Lawyers told him that he could shed his debt to his creditors, and Hecker figured he could maintain his family’s lifestyle by running his remaining businesses.

    The bankruptcy started going wrong when the trustee handling the bankruptcy case started to ask questions. Complicating the case was the sale of two dealerships that were not finalized when the bankruptcy was filed. Trustee Randy Seaver raised questions about turning over the funds from the sales to pay other creditors.  The situation worsened when people who knew Hecker started calling in tips about hidden assets to Seaver.

    Hecker claims that he was a victim who was “outmaneuvered” by a raft of lawyers, including an “aggressive” bankruptcy trustee and his own lawyer.

    Federal prosecutors and Seaver stated that “Hecker committed bankruptcy fraud, repeatedly lied and chose to put his own financial interests above all else, including the rule of law and our system of justice.”

    Prosecutors charged Hecker with bankruptcy and wire fraud. Hecker plead guilty and received a prison sentence of up to ten years.

  • Florida Couple Forecloses on Bank of America

    A couple from Collier County, Fla foreclosed on Bank of America after the bank would not pay for legal fees they owed the couple.

    The problems started when Warren and Maureen Nyerges purchased a home owned by Bank of America. The couple paid cash in full for the property, negating the need for a mortgage. At some unknown point, the paperwork for the home was sent to the bank’s attorney to start foreclosure.

    The Nyerges took the case to court, managing to get the foreclosure dropped after 18 months of proceedings. A Collier County judge ordered Bank of America to pay the couple’s $2,534 legal fees. Five months passed and the bank still had not paid. Bank of America’s inaction caused the couple’s attorney to take action by moving to seize the bank’s assets.

    The Nyerges, attorney Todd Allen, moving trucks and armed deputies all converged on a Bank of America branch with the intent of taking the bank’s property to satisfy the debt. The attorney stated “I instructed the deputy to go in and take desks, computers, copiers, filing cabinets, including cash in the drawers.” The bank’s manager was visibly shaken by the incident.

    A little more than an hour had passed when the bank finally cut a check to satisfy the debt. A representative for Bank of America issued a statement apologizing for the delay in issuing funds. They claim the original request went to an outside attorney who is no longer in business.

    If you are seeking foreclosure help, or are interested in learning about short sale options, contact a Chicago foreclosure attorney. They can assess your situation and plan a course of action.