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From the Editor – An Assortment
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By The Honorable William Houston Brown (Retired)
Debt relief agency did not provide reasonably equivalent value to debtor. In Chapter 7 trustee’s § 548 complaint, the court found that a debt resolution entity acted as a debt relief agency, failing to perform required duties and making misrepresentations to the debtor, justifying $28,000 civil penalty under § 526. Moreover, the debtor did not receive reasonably equivalent value for $7,000 that was paid to agency, which agreed to negotiate at least 35% reduction in debts, but agency failed to settle any debt, applying bulk of prepetition payments . . .
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