Many clients come to me who have tried to file bankruptcy on their own. The usual result of a client filing bankruptcy is that the bankruptcy gets dismissed. To start with, there is a prerequisite to filing a bankruptcy. The prerequisite is that an individual seeking to file bankruptcy must take a credit counseling course. If the individual … [Read more...]
VIDEO: Why You’d File Bankruptcy
Bankruptcy Explained
CHAPTER 7 BANKRUPTCY There are basically two types of bankruptcies for individuals or married couples can file. These two types of bankruptcies are referred to as Chapter 7 bankruptcy and a Chapter 13 bankruptcy. A chapter 7 bankruptcy is a liquidation. Non-exempt assets are liquidated and if there are any assets over and beyond the bankruptcy … [Read more...]
Banks Agree to Eliminate Debts From Credit Reports After Bankruptcy Discharges
JP Morgan Chase and Bank of America, two of the largest banks in the country have agreed to update credit reports of individuals who had owed them money to show the debts were discharged pursuant to bankruptcy proceedings. Federal Law requires once an individual files a Chapter 7 bankruptcy and is discharged from said bankruptcy that the bank … [Read more...]
Student Loan Considered A Special Circumstance Under Chapter 7 Bankruptcy
A bankruptcy Judge in the Western District of New York found a debtor's non-dischargeable student loan constituted "a special circumstance" under the Bankruptcy Law. A special circumstance could overcome the statutory presumption of abuse upon filing bankruptcy. This special circumstance would allow the student loan to be discharged in … [Read more...]
New York Debt Collection Proposals
Financial regulators in New York State have recently proposed sweeping new reforms concerning debt collection practices. There have been more than 13,000 complaints filed against debt collection agencies in the State of New York within the past two years. Debt collection companies sometimes buy defaulted debts for a few cents on the dollar and … [Read more...]
Filing Bankruptcy as a Married Couple – Is is the Best Way to Go?
As a married couple you’ve got the option of going it together when it comes to bankruptcy. Joint bankruptcy happens to be one such thing that you can file together as a married couple. However, there’s a flip side involved in this story as well and that includes specific circumstances wherein it becomes harder for you to qualify for Chapter 7 … [Read more...]
Foreclosure And Your Credit Score
If your home goes into foreclosure it will have a negative impact on your credit score. However, the nature and extent of the negative impact may be different than what you believe it to be. When a financial institution brings a foreclosure lawsuit related to a mortgage default, the institution will normally report to the credit agency there is a … [Read more...]
FHA Rescues Homeowners
The Federal Housing Authority (FHA) is coming to the rescue of more than 3000 homeowners whose homes were damaged by Superstorm Sandy. Under a new program, the FHA is allowing these homeowners whose homes were damaged by Superstorm Sandy to apply for mortgage loan modifications. The purpose of this program is to help reduce the monthly mortgage … [Read more...]
Bankruptcy Fallacies – Part I
One of the most widely held beliefs concerning individuals who file bankruptcy is they will never be able to obtain credit again. This is simply untrue. Although a bankruptcy filing will be maintained on your credit report for 10 years, most individuals who file bankruptcy can rehabilitate their credit within 18 months. A debtor who files for … [Read more...]
