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...]
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...]
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...]
Strategic Defaults
Walking Away From Your House Strategic default is the new concept in how homeowners are dealing with mortgages on homes that are underwater. A strategic default is simply when you stop paying your mortgages . Many homeowners are considering strategic defaults on their mortgages. It is estimated that over eleven million homes are now underwater … [Read more...]
How Debt Collections Work
If you have debt, such as credit cards, there is a timeline followed by your creditors in collecting these debts. Thirty Days If you miss a payment on one of your debts by more than thirty days, the creditors will immediately start making phone calls and sending you letters about paying the debt.In some situations, the lender will also report … [Read more...]
Bankruptcy, Foreclosure and Divorce
If one of the parties to a divorce action files for divorce, can he or she later file bankruptcy during the course of the divorce? The answer to this question is yes. Now let's change the circumstances a bit. A husband and wife are involved in a divorce and during the course of the divorce, the husband is ordered by the court to make mortgage … [Read more...]
The New Health Care Law – Affordable Care Act
The Republicans in Congress are challenging the health care law passed in 2010 by President Obama and the Democratic controlled Congress. Question: How does the health care law affect you? Americans between the ages of fifty and sixty-four will be significantly affected by the Affordable Care Act (ACA). Unfortunately, due to the economic … [Read more...]
JP Morgan Chase Suspends Foreclosure Activities
JP Morgan Chase previously announced that it was seizing all further legal action on 56,000 pending foreclosure proceedings. The bank is taking this action due to the fact that its employees have improperly prepared legal documents related to foreclosure proceedings. These suspensions took place in the 23 states where foreclosure lawsuits must … [Read more...]
Bank of America and Foreclosures
Bank of America is the largest bank in the United States. They have recently taken action to stop moving forward with foreclosures throughout the United States. Allegations have arisen with regard to how the bank is handling the foreclosure process. Bank of America is among many large financial institutions which also include Chase Manhattan and … [Read more...]
