chapter 13: Bankruptcy Primer
- 09/13/10 07:07 PM
1. The Automatic Stay of a Foreclosure: The filing of a bankruptcy case, whether Chapter 7, 11 or 13, gives rise to an automatic stay that will put a stop to a pending foreclosure or any other collection efforts, with some exceptions.
2. Lien Stripping: This is a commonly used term to describe when a bankruptcy court values real property for the purpose of determining if the first is partially undersecured and the second or third wholly undersecured. If the value of the residential property is less than the amount owing on the first, any other liens recorded against the … (0 comments)
chapter 13: Short Sales - Warning! You May Cause Your Client to Fail the Means Test
- 12/18/09 04:15 AM
A recent email to a client follows, and should be a fair warning to have clients consult with bankruptcy counsel before execution of short sale purchase and sale documents: As a result of the short sale of your home before you file bankruptcy you will no longer have the contractually due amount owing to your first and second. As a result, when we calculate your eligibility for Chapter 7 relief (rather than Chapter 13 relief) we will not be able to deduct from your Annualized Monthly Income those monthly payments. As a further result, if your Annualized Monthly Income (calculated from … (32 comments)
chapter 13: Chapter 13 Primer
- 11/14/09 05:23 PM
Commencing a Chapter 13 Case –A Chapter 13 bankruptcy case begins with the filing of the bankruptcy petition. –Upon the filing of the petition an automatic stay arises that prohibits creditors from taking any further action to collect a debt or enforce a judgment. –A Notice of Commencement of Case is electronically served on all creditors who have subscribed to the national database or by mail to all others. –This Notice provides each recipient with the date, time and place of the meeting of creditors and confirmation hearing, as well as the last date to file for a determination of whether … (31 comments)
chapter 13: What Makes Sense - A Simple Solution
- 08/13/09 02:03 AM
The solution to the current and prospective ongoing foreclosure crisis and failure of the banks to effectively modify loans lies, quite simply, in an ability of the Bankruptcy Courts to do the following with respect to home mortgages when an individual or couple files for relief under Chapter 13 or Chapter 11 of the Bankruptcy Code for the purpose of saving their home residence: (1) Value the real property that is claimed as the principle residence of the debtor to an amount based upon not only a customary appraised valuation, but valuation based upon affordability – the amount after regular household … (0 comments)
chapter 13: STUDIES SHOW BANKS ARE NOT MODIFYING MORTGAGES
- 08/04/09 05:21 PM
MSNBC is reporting that Banks are not modifying mortgages and therefore not assisting homeowners who need assistance. Allowing Bankruptcy Court judges to modify loans secured by a debtor's principle residence s the only fair and equitable way to instill stability into the marketplace. Studies are finally beginning to shed light on what you have read from me that "the fox cannot be left to mind the hen house," or "the inmates cannot be left in control of the insane asylum." … (0 comments)
chapter 13: Bankruptcy Practice - Relief for Homeowners
- 12/27/08 05:16 AM
Loan Modification companies are springing up faster than weeds in a summer meadow! Many are merely out to capitalize on the despair of others; similar to the lenders who dealt out mortgages to home owners looking to bridge the gap between wanting and affording. The loan modification companies' promises are often empty, but their pockets are full with credit card advances taken from unknowing home owners in despair. In the even to bankruptcy, those advances, ironically or sadly, may not be dischargeable! California has a Foreclosure Consultants Statutes that strictly regulates such marketeers. But only through the guidance of experienced counsel … (8 comments)
1. The Automatic Stay of a Foreclosure: The filing of a bankruptcy case, whether Chapter 7, 11 or 13, gives rise to an automatic stay that will put a stop to a pending foreclosure or any other collection efforts, with some exceptions.;)
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