Posted by: jed
on Apr 02, 2011
A. Duties of a Chapter 7 or Chapter 13 Bankruptcy Trustee
In both Chapter 7 and Chapter 13, a Trustee is identified when the Petition is filed. The Trustee represents the interests of the unsecured creditors in a Chapter 7 or Chapter 13 case. In a Chapter 7 case, the Trustee will be randomly selected from a panel of approximately 15 Trustees. In a Chapter 13 case, each district has only one Trustee.
Posted by: jed
on May 11, 2010
A common question that our clients have is whether they will be able to continue their utilities if they have an arrearage that is included in a bankruptcy. This may include electrical, gas, water, and other basic household utility services. This can be particularly concerning if the client is seeking to surrender their current personal residence and obtain other lodging, as they will have to open accounts with the utility companies.
If at the time of filing the client is behind in their payments, it is possible that a disruption in service may occur, however, under the Bankruptcy Code, a utility may not refuse or discontinue service because a customer has filed bankruptcy, but the utility may require that the client provide ìadequate assuranceî that they will be able to pay for their utility service in the future within 20 days of filing the bankruptcy petition. ìAdequate assuranceî may mean a cash deposit, a letter of credit, a certificate of deposit, a surety bond, a prepayment for future utility consumption, or some other type of security. Generally, what is required is some sort of deposit, though the amount of the deposit, where that is considered acceptable, is open to debate and negotiation.
Posted by: jed
on Apr 07, 2010
Under the newly proposed additional provisions of the Home Affordable Modification Program (HAMP), additional resources will be provided to struggling homeowners, which may help avoid foreclosure or a bankruptcy filing. The new provisions focus on temporary mortgage assistance to certain unemployed homeowners, encourage servicers to write-down mortgage debt as part of a HAMP modification, allow more borrowers to qualify for modification through HAMP, and help borrowers move to more affordable housing when modification is not possible. The changes will be implemented in the coming months.
Posted by: jed
on Mar 28, 2010
As mortgage payments are becoming more and more difficult for borrowers to meet, alternatives to foreclosure are more pervasive. As a foreclosure has more negative impact on credit scores, short sales have become an alternative in the real estate market. A short sale is understood as when a lender accepts a lesser amount of money than what is currently owed by the borrower when the home is sold. Hence, the home is sold at a price short of what is actually owed. A short sale has its benefits in the real estate market because it can help a seller who is in financial trouble avoid foreclosure and possibly bankruptcy, the buyer purchases the home at a price more inline with the current market, and it removes a non-performing loan from the books of the financial institution.
When deciding whether to go through a short sale process, borrowers must carefully consider their current financial situation. The analysis should consider if the mortgage payments can no longer be met, if the borrower has encountered a financial hardship such as extraordinary medical expenses or job loss, and if alternative housing can be secured.
The first step to a short sale is the seller decides to sell the home and lists it with an agent. The price set by the agent and seller should be as close to the current market price as possible. If not, the lender is unlikely to approve the short sale. Then the property should be listed and within the sales contract a provision should state that the sale is subject to the lender's short sale approval. The next step involves the seller completing a short sale package that can be provided by a short sale attorney. This will include an extensive financial disclosure including tax returns, plus a hardship letter explaining the nature of and need for the short sale. This short sale package can be quite detailed and must be completed accurately. The package should be coordinated with a real estate agent and a short sale attorney.
Posted by: jed
on Mar 23, 2010
On May 22, 2009 the Credit Card Accountability Responsibility and Disclosure Act of 2009 (the Act) was signed into law by President Obama. It became effective on February 22, 2010 and is intended to protect consumers from changes to the terms of their credit cards that can destroy an unsuspecting consumer who was unaware.
The Act provides for the following dramatic changes:
Posted by: jed
on Mar 23, 2010
Can I Be Fired If I File for Bankruptcy?
Posted by: eric
on Mar 17, 2010
One common problem that our office sees regularly revolves around a lease or mortgage that the client really can’t afford anymore. Bankruptcy often provides a solution for people who feel trapped. The client is often concerned about being able to find a place to live and are afraid that they have no choice but to assume (or keep) their current lease or reaffirm a mortgage that they could not afford.
Consider this recent case that we handled: Our client lived in a rented apartment, and her lease ran another six (6) months. Our client wanted to find a cheaper place to live, however, she was concerned that she may not be eligible to sign a new lease after filing for bankruptcy. She asked for our advice about what to do.
