Should I reaffirm my Mortgage Debt After Bankruptcy
The primary advantage of reaffirming a mortgage is accelerating an increase in credit score(s) after a bankruptcy discharge.
Discharging Student Loans in Bankruptcy
Whether you approach the issue from the perspective of a parent, a student, a lender, a politician, or a university or college, student loan debt has been a hot topic during the past several years – and if current trends are any indicator, the issue is unlikely to resolve in the near future, especially not […]
Removing a Second Mortgage in Bankruptcy
In BANK OF AMERICA, N. A. v. CAULKETT the Supreme Court of the United States recently issued an opinion in a case regarding the removal of a second mortgage through Chapter 7 Bankruptcy. In that case the Bankruptcy Debtors were ultimately unable to completely or partially reduce their second mortgage. The rule the Court sited […]
Motion for Relief from Stay in Chapter 13 Bankruptcy
A Motion for Relief from the Automatic Stay imputed in bankruptcy is filed by a Creditor, usually a mortgagee or automobile lender, and alleges that the Petitioner in Bankruptcy has fallen behind on post-petition mortgage or vehicle payments. For example, if a Petitioner files a Chapter 13 Bankruptcy Plan and fails to make their post-petition […]
Improve Credit Score After a Bankruptcy Filing
One of the most common questions I receive is “How can I improve my credit after a bankruptcy filing?” My advice involves making timely and regular payments on a mortgage or rent, a vehicle if the Petitioner owns one and equally important, not incurring any new debt after a bankruptcy filing. Further, our firm recommends […]
What to bring to the Bankruptcy Hearing
In every bankruptcy case, whether a Chapter 7 Bankruptcy matter or a Chapter 13 Bankruptcy matter, the petitioner must attend a 341 Meeting of Creditors. I most recently wrote a blog entry regarding the 341 Meeting and the questions most frequently asked at the Meeting on August 31, 2012. In this blog, I would like […]
Credit Reports and Charge Off
It is common for a debt to be listed as a “charge-off” on a credit report. Some consumers have mistakenly viewed a charge-off as a positive indicator on their credit report, because the phrase charge-off may be interpreted as the consumer no longer owes or is responsible for payment of the debt. In fact, the […]
Home Purchasing Financial Guidelines
One of the best investments one can make is in their own home. However, for the home to be enjoyable it must be affordable. There is not a single all encompassing test which will determine whether a home is affordable, however, below are some general guidelines to determine affordability prior to purchasing real estate. Guideline […]
FHA Back to Work Mortgage Program
Recently, the Federal Housing Administration moved to relax its guidelines and expedite the waiting period to secure a mortgage for borrowers who “experienced periods of financial difficulty due to extenuating circumstances”. The program exemplifies the FHA’s willingness to help those who have endured a financial situation beyond their control. The program is generally known as […]
Credit Counseling and Bankruptcy Filing
Under the Bankruptcy Abuse and Consumer Protection Act of 2005 individuals who plan to file for bankruptcy must complete under Rule 11 U.S.C. Section 109 a Credit Counseling Course prior to filing a Chapter 7 or a Chapter 13 Bankruptcy Petition. Our office ensures that all clients comply with the counseling requirement and registers all […]
Bankruptcy, the Earlier the Better
It is generally agreed that the earlier one makes the decision to file for bankruptcy, generally the better and the quicker their financial recovery process starts. Likewise, filing for bankruptcy sooner in the calendar year may prove to be more advantageous as well. According to American Research Group, Inc., the average family spends $854 in […]
New Mortgage Rules to go into Effect
The Consumer Financial Protection Bureau, stemming from the 2010 Dodd Frank Act, was implemented for the purposes of educating the borrowing public and to ensure that future extensions of credit are suitable for the borrower(s). On January 10, 2014 a new set of standards will go into effect targeting the mortgage industry, specifically the origination […]
What to expect at a Bankruptcy Hearing
Whether filing a Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy, the Petitioner(s) must attend a 341 Meeting of Creditors. Although named the Meeting of Creditors by Statute, it is extremely rare for a creditor to appear at the 341 Meeting. In the event a Creditor does appear, it is usually because they have additional […]
Can I Purchase a Home after filing Bankruptcy?
Can I Purchase a Home after filing Bankruptcy? The answer to this question, is the too frequent legal answer, “It Depends.” Credit scores a/k/a FICO scores and interest rates are in an inverse relationship, meaning, the higher the credit score, the lower the interest rate. Our credit scores are the lead factor in determining the […]
Bankruptcy and Mortgage Modification
Most homeowners who have defaulted on their mortgage have heard the term or tried for a “Modification of Mortgage,” in short a modification. A modification is a change of the terms of the original mortgage agreed to by the lender and borrower. A Mortgage modification is likely to include the following: Reduction in interest rate […]