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2011 | Iowa Bankruptcy Attorney - Part 2

Florida Couple Takes Foreclosure Action on a Bank Reports Ohio Bankruptcy Lawyer

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This is a great story with a nice little twist, where a bank gets back what it handed out, in spades.

“In this reported bankruptcy case a couple turned the tables on a bank, by foreclosing on them. Yes, you heard that right, the couple managed to foreclose on the bank,” said Kevin Ahrenholz, an Iowa bankruptcy lawyer.

It all started when the bank goofed up by even starting foreclosure proceedings on the couple’s home in the first place. In fact, the couple had never even had a mortgage loan on the property, because they had paid cash for it. However, the bank ignored that for some reason and proceeded to initiate foreclosure. “Fed up with arguing with people who were not listening, the couple hired a lawyer and proved to the court that they paid cash for their home. They were awarded legal fees for defending themselves,” Ahrenholz said.

The bank was not particularly enthusiastic about the judgment, and instead of owing up to their mistake and paying the couple’s legal fees, they dug in their heels and did nothing for over five months. The couple’s lawyer started to legally seize the bank’s assets. The lawyer, sheriff’s deputies and a batch of movers foreclosed on the bank. They did not just foreclose on paper either, desks were taken out of the bank and office equipment went along with any cash in the teller’s drawers.

“The bank manager lasted about an hour out on the street and coughed up a check for legal fees. If they had done that in the first instance, they would not have made such a big splash in the news. Aside from the irony of this case, it shows that creditor/debtor relationships should be two-way streets. In other words, credit relationships are between humans, and humans make mistakes. Acknowledge that mistake, rectify it and move on. “Don’t turn the situation into a vendetta and hide from the obvious,” Ahrenholz said.

The bottom line is that on many occasions, credit companies, banks, credit unions and even mortgage companies just do not take the time to properly check their paperwork. “As we can see in this case, not taking the time to check facts cost the bank money and dignity. All it would have taken was a few minutes of someone’s time to check facts. This whole thing could have been avoided. Unfortunately, common sense seems to have gone up in smoke these days,” Ahrenholz said.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit http://www.iowachapter5.com or call 1.877.888.1766.

Posted on Sunday, August 7th, 2011 and filed under Bankruptcy | Comments Off on Florida Couple Takes Foreclosure Action on a Bank Reports Ohio Bankruptcy Lawyer .
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Chapter 7 And Chapter 13 Are The Two Most Common Bankruptcy Filings

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Did you know that federal bankruptcy laws are actually on your side if you need to declare bankruptcy?

If you are in a bit of a pickle and are carrying an overwhelming debt load, high medical bills, serious credit card debt and are getting dunning phone calls from bill collectors, it is time to call a bankruptcy lawyer for help. Federal bankruptcy laws are actually geared to help you out when you’re facing bankruptcy.

The most common bankruptcies filed are Chapter 13 and Chapter 7. Filing a Chapter 7 stops creditor phone calls and discharges some types of unsecured debt. Filing a Chapter 13 stops foreclosure, harassing collection actions and allows you to create a debt repayment place to pay off certain debts. This is not to say that it is easy to declare bankruptcy, because it is not. It is a distressing process and many people are embarrassed to admit they are going to file.

No worries. These days, no one looks at you sideways for declaring bankruptcy. It is what it is. The question you may be struggling with is what type of bankruptcy is the best for your situation? The law has made it harder for some debtors to get rid of their debts under Chapter 7, but some may still be able to do this if they have an income that is under the state’s median income level or they pass a means test. Just ask your Iowa bankruptcy lawyer what the rules are in the state.

If you want a quick and simple and relatively inexpensive way to declare bankruptcy, typically, Chapter 7 will do the trick. This process is there for married couples, partnerships, corporations and individuals. Truth be told, it is best for individuals with limited income and wages and don’t have many assets to protect from liquidation.

For Chapter 7, there is a court-appointed trustee assigned to your file to identify non-exempt assets, and liquidate them to pay your creditors. There are some instances in which you get to keep secured property, but only if you are able to negotiate new debt repayment terms.

Let us say you do not meet the criteria for filing a Chapter 7 bankruptcy. If that is the case, you might find Chapter 13 is a viable alternative. Under a Chapter 13 filing, you may keep your assets, avoid foreclosure on your house, stop creditor calls and repossessions and repay a portion of your debts with a restructured debt repayment plan within 3 to 5 years. A trustee is assigned under a Chapter 13 filing as well, who supervises the debt collection process and distribution of monthly payments.

It is important to know that not all of your debts are done away with under either Chapter 7 or Chapter 13 bankruptcy filings. Your Iowa bankruptcy lawyer will outline what you need to know. Debts you cannot discharge include maintenance for your spouse, child support, any debts owed to certain tax advantage retirement plans, debts acquired as a result of fraud or embezzlement, debts for malicious injury to another person or property, debts that are not laid out in a debt repayment plan, some types of taxes and personal debts for damages caused by a debtor who was DUI.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit https://www.iowachapter7.com or call 1.877.888.1766.

Posted on Wednesday, July 27th, 2011 and filed under Bankruptcy | Comments Off on Chapter 7 And Chapter 13 Are The Two Most Common Bankruptcy Filings .
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Call A Qualified Bankruptcy Lawyer When Finances Get Out Of Control

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Finances can get out of control for everyone; even the high rollers.

Even if you make money hand over fist, or made money with ease at one time, this isn’t to say that sometimes things happen and finances just get out of control. It happens; to everyone. Consider the story of a man who boasted that he was the world’s top, numero uno real estate agent. At one time, he supposedly had over $2.5 billion in sales over a six-year period. He declared bankruptcy. He was knee deep in the boom times of real estate and had everything a person could possibly want, and then the balloon popped.

The real estate mogul found himself over $50 million in debt and tried selling some of his assets, but only garnered roughly $2.4 million. It wasn’t much, but it was a start, and he thought maybe he could still make ends meet, until his wife filed for divorce. That was the end of his rope. The scenario happens to millions of Americans every day; the millions trying to get from point A to point B and survive.

Bankruptcy can and does happen to anyone. No one is immune when the conditions are right for financial collapse. Circumstances in a person’s life tend to dictate how things will go financially, and if someone is struggling with paying their bills and they lose their job, get ill and need extensive, expensive medical care or their spouse files for divorce, things can tank just about over night. It’s no one’s fault that these things happened; they just did, because that is life.

Another nugget of truth to take from this story is that the real estate market is still shaky, and there are hundreds of thousands of foreclosures making their way through the system, even as you read this article. What does the future look like? Who knows. What will happen, will happen. Those stuck in the middle of the morass can only ride it out and see what happens when the dust settles.

In 2010, foreclosures hit the 1.05 million mark. Twenty six percent of all the homes sold last year were foreclosures, and things are looking about the same for 2011. What’s scary is that nearly 2.9 million homeowners got foreclosure notices in 2010. There may be more in hot water this year, judging from the present state of the economy.

The fact is that the economy is bad and in tough times, things get rough. Riding it out is even tougher and many people may need to contemplate bankruptcy to see light at the end of the tunnel. For help figuring out what your options are, call an experience Iowa bankruptcy lawyer. Your finances could fall flat anytime, no matter who you are, what kind of education you have, whether or not you are making lots of money, or very little. Bankruptcy is the grand leveler of all who dare to stand in its way.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit https://www.iowachapter7.com or call 1.877.888.1766.

Posted on Friday, July 15th, 2011 and filed under Bankruptcy | Comments Off on Call A Qualified Bankruptcy Lawyer When Finances Get Out Of Control .
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There is a Big Difference Between Unsecured Debt and Secured Debt

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There is often a whole lot of confusion over what the differences are between secured and unsecured debt.

“Bankruptcy proceedings get complicated enough that most people get confused over what the differences are between secured and unsecured debt, or if there are any differences at all. There are definitely differences, and when you speak to an experienced lawyer, this is one of the first conversations you should have,” said Kevin Ahrenholz, an Iowa bankruptcy lawyer.

One of the main problems with people understanding the bankruptcy jargon is that those familiar with it use it like it was a regular language – and it is, to them. To those facing bankruptcy and trying to cope with their financial distress and figure out what the terms mean, it is just one more thing that alienates them. “Most bankruptcy lawyers will take the time to explain the various terms, as it is something that helps put their clients at ease,” Ahrenholz said.

A secured debt is a loan, and in return for the money, the creditor takes a secure interest, also referred to as a security interest, in the item. “For example, if you have a loan for a house or car,” Ahrenholz said. “Having said that though, just about any loan may be secured, so long as the creditor gets a security interest in whatever the item happens to be.”

The thing people need to remember about secured debts is that the remedy for default is typically seizing the asset, either by foreclosure or repossession. In addition, if a creditor does go that route, they may also be able to recover any financial short fall after the repo or possession. “Since you can’t discharge this, an experienced Iowa bankruptcy lawyer is better able to negotiate with creditors, than you trying to do it on your own,” he said.

Unsecured debt is the result of a contract between a buyer and a creditor, but it is not tied to a security agreement, and does not give the creditor the same options to collect on default of payment that a secured creditor has. “In other words, the debtor is saying they promise to pay it back. Examples of unsecured debt are personal loans, medical bills and credit card debt,” Ahrenholz said. Unsecured debt is discharged in a bankruptcy.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit https://www.iowachapter7.com or call 1.877.888.1766.

Posted on Thursday, July 7th, 2011 and filed under News and Press | Comments Off on There is a Big Difference Between Unsecured Debt and Secured Debt .
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A Bankruptcy Trustee Is Neither A Friend Nor An Enemy

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Declaring bankruptcy is frightening for many people. They feel like they are alone and swimming in debt.

This first thing to know about bankruptcy is that it can, and does, happen to others. You are not alone out there without any hope in sight and totally ruined credit. There are people who will help you through the process of bankruptcy, and you can definitely rebuild your credit by making all your payments on time. In other words, there is light at the end of the bankruptcy tunnel. If you work in partnership with your Iowa bankruptcy lawyer, you will have your rights protected and be well informed about the whole process.

One of the people designated to help you through your declared bankruptcy is the bankruptcy trustee. His or her job is to administer your affairs and make sure you get through your bankruptcy. In reality, the bankruptcy trustee will act on your behalf to make sure the process is a smooth one and that your rights, and the rights of the creditor, are protected.

While bankruptcy trustees are there to help you, they are neither your friend nor your enemy – they are the hub of the process to keep everything on an even and fair keel. For example, a Chapter 13 bankruptcy trustee will hold and conduct the 341 meeting of creditors, review your petition and Chapter 13 plan and then distribute your monthly payments, according to that plan.

In the case of a Chapter 7 bankruptcy, trustees liquidate the debtor’s non-exempt property and hand out the proceeds in accordance with the rules and regulations applicable for the federal bankruptcy code. They will also examine the bankruptcy petition and check for any inaccurate information, misrepresentation or fraud on the part of the debtor. In other words, the trustee, in both Chapter 7 and Chapter 13 situations, is the person who sees to it that you get an efficient, effective and fair resolution to your bankruptcy process.

If you have any questions about whether or not filing bankruptcy is the right route to take in your situation, make your first phone call to a qualified Iowa bankruptcy lawyer. They have the years of experience in this area that you will need to make an informed decision about your circumstances. They are not there to judge you. They are there to help you get through one of the toughest times in your life.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit https://www.iowachapter7.com or call 1.877.888.1766.

Posted on Monday, June 27th, 2011 and filed under Bankruptcy | Comments Off on A Bankruptcy Trustee Is Neither A Friend Nor An Enemy .
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Bankruptcy Can Be Voluntary or Involuntary

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When facing bankruptcy, most people would prefer doing it on their own. Involuntary bankruptcies are no fun.

It is not too surprising that bankruptcies tend to reflect the state of the economy. When the economy is in good shape, there are not many bankruptcies. When it is bad, bankruptcy figures start to soar. In 2009, close to 1.4 million bankruptcies were filed across the nation.

There are two kinds of bankruptcies, involuntary and voluntary. While it is true that involuntary bankruptcies are the exception rather than the rule, they do happen fairly often. An involuntary bankruptcy happens when a creditor legally and literally forces a debtor into bankruptcy. This can happen to anyone, at any time, at any age and in any social strata, including famous people. Bankruptcy is not fussy about who it hits.

Most bankruptcies are done voluntarily, and while still a blow to those who have to declare it, there is some saving of face in the fact that they did it on their own. Is there any good news in the bankruptcy statistics? According to some pundits, it is beginning to look like the economy has hit the absolute bottom and is now aiming to come back up for air. Evidently, the possibility of a turnaround is being fueled by court records, of all things. The records are suggesting that bankruptcy rates dropped by 8.9 percent in June 2010.

While that is indeed good news, there are still those struggling to keep their heads above water and decide which Chapter they want to file under. The long-term forecast though could mean that those just beginning to head down the road to bankruptcy may have a reprieve. When the economy is balanced, typically you have the opportunity to recover from your losses. It may take you a while to do that, but the chance would be there.

Still and all, if you do not have a chance to ride the wave of a more balanced economy, you would have a new opportunity to start all over again financially if you do declare bankruptcy. That is what bankruptcy laws are all about in the first place; offering protection to the honest individual to allow them to work their way out of a bad financial situation they had no control over. This is not to say that creditors don’t have protection, because they do, as does the debtor. In other words, it is about financial balance and equity.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit https://www.iowachapter7.com or call 1.877.888.1766.

Posted on Monday, June 27th, 2011 and filed under Bankruptcy | Comments Off on Bankruptcy Can Be Voluntary or Involuntary .
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You Cannot Discharge Student Loans If You Declare Bankruptcy

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While there are a great number of things you may discharge when you go through a bankruptcy, a student loan is not one of them.

The bankruptcy process offers debtors in over their heads relief from a wide variety of debts – as long as they are unsecured debts. However, there are also several types of debts that will not be discharged as easily, and one of those debts is a student loan. No doubt there will be many loud groans over that bit of information, but the fact is the general rule of thumb is that student loans do not get discharged in a bankruptcy.

A lot of people think this is unfair, but if you consider the reasons for it, it actually makes sense. Look at it this way. If student loan debt could be discharged, how many institutions would be willing to lend students money to get an education? The answer to that would be not many, and with good reason. Why shell out bucks you will not get back if they declare bankruptcy.

It’s pretty easy for students to get money to get educated. Consider those people our future generation. If they were to get what money they needed to make something of their lives and then be able to discharge that later by declaring bankruptcy when they graduated, those who loaned the money would be paying the penalty; a penalty that would be passed on to the next students wanting to borrow money. In other words, it would be brutally unfair to lenders, and thus the federal government said student loans cannot be discharged in a bankruptcy proceeding.

Having said that, as you probably know, most laws have limitations and exceptions, and yes, there is an exception when it comes to student loans, but it is a very limited one. There is a provision called the “undue hardship exception.” While there are probably many students thinking they would qualify for that, the truth is, it is very hard to prove. The student/debtor must show extreme reasons why they cannot repay the loan.

Extreme reasons may include the student not being able to live at even a minimal standard of living because of the student loan, that they are indeed making a good faith effort to pay on it and that the extreme circumstances will be in effect for the total period of the loan repayment. This process is conducted by way of an adversary hearing within a bankruptcy. A judge determines is an extreme hardship does exist, before a deciding if the student loan may be discharged.

Honestly, this is such a hard thing to prove that it’s likely best that you just assume you can’t discharge your student loan during a bankruptcy, because, in all reality, you likely can’t. If you don’t know what applies in your case, and you have a student loan, consult with a skilled Iowa bankruptcy lawyer. If you want to know how to proceed, what qualifies, what doesn’t and what Chapter to declare, your Iowa bankruptcy lawyer will be able to offer you the advice you need.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit https://www.iowachapter7.com or call 1.877.888.1766.

Posted on Friday, June 17th, 2011 and filed under Bankruptcy | Comments Off on You Cannot Discharge Student Loans If You Declare Bankruptcy .
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Filing Bankruptcy Does Not Mean Losing All Of Your Stuff

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A lot of people have this idea in their heads that if they file for bankruptcy, they lose all of their stuff. That is not true.

While filing for bankruptcy is not the easiest thing in the world for a variety of reasons, it also is not the end of the world, despite how it may feel. Yes, there are a lot of factors to take into consideration, not the least of which is a change in lifestyle, meaning taking a good hard look at how you spend money. A lot of people think that when they file for bankruptcy, they lose everything they have. Good news – that is not true.

Keep in mind that every bankruptcy case needs to be assessed on its own, which means every case is different and yet similar. This is only to say that in most cases, the debtor will not be coughing up all of their property and possessions. This is because the law does give a wide allowance in terms of property exemptions. This is good news because during and after the closing of your bankruptcy case, your exempted property is protected by law.

Here is something that most people do not know, or do not understand. Exempted property means you are allowed to keep your property and the equity in it. That bears repeating: you get to keep the property and the equity in it, meaning the difference between the value of your property exemption and what you still owe. This is definitely something you need to discuss with your Iowa bankruptcy lawyer to get a good handle on how it works to your advantage.

As with just about everything, there are other points you need to be aware of as you move forward through the bankruptcy process. For example, each state has the right to choose which exemption will apply to your case, meaning state or federal exemption. In some cases, and this too is something your Iowa bankruptcy lawyer will talk to you about, some states let you make a choice between which route to take.

Typically speaking, federal bankruptcy exemptions are better for you. However, that does not mean state exemptions should be ruled out. This is yet another reason why you need a skilled Iowa bankruptcy lawyer, to help you get through the maze of filing bankruptcy. To get a good grasp as to which type of property exemption would apply to you, you need to talk to a qualified bankruptcy lawyer. That way, you are on the right track.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit https://www.iowachapter7.com or call 1.877.888.1766.

Posted on Friday, June 10th, 2011 and filed under Bankruptcy | Comments Off on Filing Bankruptcy Does Not Mean Losing All Of Your Stuff .
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There is Life After Filing for Bankruptcy says Iowa Bankruptcy Lawyer

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Bankruptcy may look like the end of the world to many. But fortunately, it is not.

“I hear a lot of stories in this line of work and one has always stood out in my mind; a woman who lost her house to foreclosure, and even though she declared bankruptcy, she of course, still had to pay $25,000 in student loans. She had quite the journey to get to solid footing once again, but she hung in there and made it. Her advice to others? There is life after bankruptcy and nothing to be ashamed of if life happens and you just can’t manage it. That’s good advice and something I tell my clients. You will get credit again, that is pretty much guaranteed,” said Kevin Ahrenholz, an Iowa bankruptcy lawyer.

Bankruptcy used to carry a horrid stigma and said to people that those who declared bankruptcy could not manage money and were perhaps also making up their hard luck story to get out of paying bills. The shadow of bankruptcy dogged them for many years and made getting credit very difficult. That is not the case today, when with a solid track record of consistently paying bills, people can get their credit back on track. “Yes, the information that they did go bankrupt is still in their file, but they can come back from that by paying things on time and sticking with their payment plan program,” Ahrenholz said.

Ultimately, the bankruptcy process protects both the creditor and the debtor and lets an honest, well-intentioned person work their way out of a bad financial situation. It just takes persistence and the desire to set things straight and own up to the responsibility of any debts incurred. Do some people take advantage of the system?

“Yes, it can happen and has happened, but with the changes to the bankruptcy laws relating to a means test, it happens less frequently than before. In any process, there are those who work within the system and those who would rather cheat the system. That’s life,” Ahrenholz said.

It is not always easy to work out of a lousy financial crunch and often, despite best intentions, the debtor gets overwhelmed and needs to start over. Filing bankruptcy is usually the answer, but there are some things that need to be done before filing.

“Know what chapter you think would suit your circumstances. If you aren’t sure, that’s what I am here for. Just ask me. This is a complicated process and frankly, I wouldn’t advise anyone to try and tackle it on their own, as they might miss something and be dismissed for doing something wrong. Don’t take the chance when help is just a phone call away,” Ahrenholz said.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit https://www.iowachapter7.com or call 1.877.888.1766.

Posted on Tuesday, June 7th, 2011 and filed under News and Press | Comments Off on There is Life After Filing for Bankruptcy says Iowa Bankruptcy Lawyer .
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Remember That Secured and Unsecured Debts Are Two Different Things Says Iowa Bankruptcy Lawyer

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Not many people understand the differences between secured and unsecured debt, only knowing they owe too much to ever pay it all back.

“There is one very easy method to determine the differences between secured and unsecured debts, and that is if your creditor can take an item or property away from you, it is secured debt. For example, your home is secured with a loan and the lender can take it back it you don’t repay what you owe. As for unsecured debts, those do not involve property or products. Think medical bills or credit card debts,” said Kevin Ahrenholz, an Iowa bankruptcy lawyer.

What difference does the distinction make? Typically, the differences make a difference when someone is contemplating filing for bankruptcy. If it is a Chapter 7 bankruptcy, they are able to choose between keeping the property or product and paying out the debt. Should the debtor decide he or she cannot pay anything, the product or property may be given back as payment for the debt.

In a Chapter 13 situation, the debtor is allowed to keep the product or property, but they must have a plan to pay off the debt, usually within three to five years.

“In instances like this, it is often the case that the bankruptcy court will only let the creditor charge somewhere around the 10 percent interest rate. No doubt that is a lot lower than what you were paying. Keep in mind, if the value of the item in question is less than the value of the debt, the outstanding amount above that isn’t covered by the item is paid as an unsecured debt without interest,” Ahrenholz said.

“If you are facing bankruptcy, make your first point of contact my office. We have all the information you need, take the time to outline all of your options and will be happy to assist you with your filing, should you hire my services. The first consultation is free and we look forward to talking to you and answering your questions,” Ahrenholz said.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact him, visit https://www.iowachapter7.com or call 1.877.888.1766.

Posted on Saturday, June 4th, 2011 and filed under News and Press | Comments Off on Remember That Secured and Unsecured Debts Are Two Different Things Says Iowa Bankruptcy Lawyer .
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