Effective January 22, 2011, New Yorkers filing for bankruptcy will have the added benefit of higher bankruptcy exemptions. The major change is thanks to Governor David Patterson, who signed the bill into law (his last while in office) just before Christmas last year.
Exemptions are the legislative tools that a debtor uses to protect their property when they file for bankruptcy. The purpose of exemptions is to assure that debtors are able to continue living a productive economic life. If a debtor loses all of their belongings when they file bankruptcy, they will have a more difficult time getting back on their feet. The more property that ...
Read More...
Eliminating Taxes: What Taxes are Dischargeable in Bankruptcy?
It is commonly misunderstood that bankruptcy cannot eliminate any tax liability. Although treatment of tax liability is one of the most complex aspects of consumer bankruptcy law, the Bankruptcy Code does offer many debtors substantial income tax relief. Whether or not your bankruptcy filing relieves your tax debt depends on several factors including the nature and the status of tax liability and the type of bankruptcy proceeding. Remember, only individuals can discharge certain tax debts, not businesses.
An individual can discharge debts for taxes in Chapter 7 bankruptcy only if all of the following conditions are true:
They are only ...
Read More...
Have You Waited Too Long to File Bankruptcy?
Most clients that come see me for a consultation tell me that they feel like bankruptcy is their last resort. However, this really isn’t true. Bankruptcy can protect your property from creditors. A last minute decision to file will limit your options and if you wait too long to file, you may lose property you otherwise could have saved.
Here are six signs you may have waited too long to see a bankruptcy attorney:
FORECLOSURE: After your home has been sold at foreclosure sale, it is too late to cure the arrearage and reinstate your mortgage in Chapter 13 bankruptcy.
REPOSESSION: If your car has been repossessed by the lender, it may be ...
Read More...
HOW TO: Stop Harassing Phone Calls from Debt Collectors
With economy hurting and unemployment reaching record levels, harassing phone calls from debt collectors have become a way of life for many Americans. My clients inform me that collection agency calls can be rude, threatening, and manipulative. For some, the calls are so bothersome that phone numbers have to be changed or disconnected to stop debt collection calls. Many consumers don’t realize that they are guaranteed protection under the law. The Fair Debt Collection Practices Act (FDCPA) has very clear rules about what debt collectors are allowed to do and not to do:
WHY THEY CAN CALL
First, they can only call you about debts that they ...
Read More...
Bankruptcy is Too Important to Face Alone
With the collection of general financial information available online growing on a daily basis, many individuals who may be considering bankruptcy think they know enough about filing bankruptcy online without retaining an attorney oversee their filing. While the bankruptcy law is clear and an individual is not prohibited from filing bankruptcy without an attorney, this is not a time to go at it alone.
Do not take the filing of a petition in bankruptcy lightly. These are your financial affairs and your property that you are trying to protect. If you go to Bankruptcy Court and represent yourself, the Trustee and the Judge will presume that ...
Read More...
How is Credit Reported During a Bankruptcy?
The Fair Credit Reporting Act (FCRA) mandates that the credit bureaus correct errors within 30 days of notification. However, creditors are not required to make any reports on your credit while you are going through the bankruptcy process, which could be anywhere from a few months for a Chapter 7 to 5 years on a Chapter 13 case. When making payments under Chapter 13, many creditors will not report this activity for fear of violating the automatic stay that is put in place when a debtor petitions for bankruptcy. This stay prevents a creditor from taking any further action to collect debts – and some take this a step further to include ...
Read More...
7 Tips to Help You to Modify Your Mortgage
Many homeowners are getting burned by reputable loan modification agencies and are being forced to file Chapter 13 bankruptcy to try and save their home from foreclosure. South Carolina attorney Dana Wilkinson gives seven tips to avoid this predicament when you are in the loan modification process in her recent article on BankruptcyLawNetwork.com. Here is a brief summary:
Keep a copy of EVERYTHING – Keep a separate file for any correspondence between you and your mortgage lender. If possible, keep notes of every conversation.
If it’s Not in Writing, Assume it isn’t True – Borrowers must have any important information regarding their loan ...
Read More...
What Should I Do to Re-establish Credit After Filing Bankruptcy?
First, request a copy of your credit report from all three credit bureaus and review each carefully to make sure you are truly getting a fresh start. Any creditor included in your bankruptcy petition should have a zero balance or state, “discharged in bankruptcy” next to the balance. There are often many errors on credit reports following a bankruptcy. If you find errors, dispute them with the credit bureau and they will be corrected. Once you have a clean slate, it’s time to start re-establishing your credit.
Credit Cards: Don’t be surprised when you get credit card offers, sometimes weeks after you get your bankruptcy discharge papers in ...
Read More...
Is Bankruptcy a Failure or Good Financial Planning?
In my 22 years as a consumer and business bankruptcy attorney, I have represented over 5,000 clients. I can honestly say that not many of these clients have had a good financial plan. If they did, they wouldn’t be in my office speaking to a bankruptcy attorney. One common mistake is taking money out of 401k plans or IRA in order to pay off credit card debt. Retirement funds like 401ks and IRAs are 100% protected from both creditors and bankruptcy trustees. The only way that creditors can touch that money is if you voluntarily remove it from your account and give it to them. Many of my clients, prior to speaking with me, have taken money out ...
Read More...
White House Pressing Banks to Enter into More Mortgage Modifications
According to Reuters, eight investors accused Bank of America of questionable behavior and the White House has warned it will hold lenders responsible for any illegal foreclosure practices. Bank of America and GMAC Mortgage, two of the largest mortgage servicers, also faced criticism they were acting too fast in announcing the lifting of foreclosure freezes they imposed in response to accusations of shoddy paperwork.
This comes months after New York City’s Comptroller, John C. Lui wrote letters to CitiGroup, JPMorgan, Bank of America and Wells Fargo asking what efforts they undertook to respond promptly to customers’ requests about modifying ...
Read More...