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 ...
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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 ...
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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 ...
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Applying for a Job After Bankruptcy
Being unemployed after filing bankruptcy can be extremely frightening, as you don’t want to get back into the same situation that you recently got yourself out of. Bankruptcy is designed to be a fresh start, so it is your responsibility to make the best of it. Make sure not to second-guess your decision. You received protection from foreclosure, credit card debt help, and relief from harassing creditors and you did so for the future of you and your family. There isn’t anything to be ashamed of.
While Section 525(b) of the U.S. Bankruptcy Code prohibits discrimination against anyone solely on the basis of insolvency, employers still have the ...
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Can’t Modify Your Mortgage? Consider the Benefits of Chapter 13 Bankruptcy
Many homeowners today are facing foreclosure due to failed attempts at loan modifications. In such circumstances, filing Chapter 13 bankruptcy may be a way for those who have a regular source of income to reorganize their debt into a manageable monthly payment. It can be a great alternative to a loan modification if you still want to keep your home, and in addition, you may be able to eliminate most of your unsecured debt during the process.
Chapter 13 bankruptcy has many benefits, perhaps the most commonly known is the ability to stop foreclosure and allow a homeowner to get caught up on past due mortgage payments. In the event that you ...
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Mortgage Modification and Chapter 13 Bankruptcy – Do Them In Sequence – Not Simultaneously
Despite the recent revelations regarding the mortgage foreclosure process, I am finding that more and more local homeowners are beginning to make headway in the mortgage modification process. Unfortunately, in many cases, this proves to solve only half the problem.
Many homeowners I encounter in my practice are not only facing difficulties with their first mortgage, but may also be dealing with a second mortgage obligation as well as credit card obligations. While in many instances, the second mortgage and credit card debt can be dealt with in a Chapter 13 bankruptcy, including the possible striping/cramming down of the second mortgage, it ...
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Tips on Retaining Possession of a Property in Foreclosure
In general, homeowners facing foreclosure, as the legal owners of the property, are allowed to stay in possession their homes up until the day of the foreclosure sale itself, if they choose. Judicial foreclosure, the process utilized in New York where I practice, can take anywhere from 12-18 months to complete. Just because a default has occured does not mean that all is lost. Even after the initial loan default, a homeowner is given a period in which they can cure their default and reinstate their mortgage. This is called the "redemption period". During this time, they have the opportunity to raise the money necesary to repay their ...
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Can I File Bankruptcy Before I am Officially a Citizen? Will it Affect My Status?
Earlier this year, I wrote a post on the topic of Bankruptcy and it’s affects on immigration, but wanted to address it again, as I frequently get asked about it. I often get to witness firsthand how complicated and exhausting the immigration process can be. Add financial duress to the situation and it can be too much to handle. I regularly have clients that cannot afford the minimums on their credit cards who are applying to be citizens of this country who wonder if they can even file for bankruptcy. The answer is yes.
The Bankruptcy Code clearly states that a “person” may file bankruptcy so long as they own a property or business in the ...
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Am I Required to Turn Over my Tax Refund in a Chapter 13 Bankruptcy Case?
This is a complicated question and the answer depends on your specific Chapter 13 Bankruptcy plan. In general, if your Chapter 13 plan provides for 100% payment to all creditors, you will be able to keep your tax refund. However, if the plan does not provide for 100% payment to all creditors, including general unsecured creditors (such as credit cards), then you must remit any tax refunds received during the life of your plan to the Chapter 13 trustee, in addition to your regular monthly plan payment to be included in the distribution to creditors. Here’s why:
When filing a Chapter 13 case, a debtor is agreeing to pay all projected ...
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Should I File for Bankruptcy?
This is one of the most frequently asked questions about Bankruptcy, as it is a major life decision, and may not be right for everyone. The answer is, there is no one answer! Whether Bankruptcy is the right answer for an individual varies from case to case, and even a seemingly small nuance about someone’s life can completely change the answer. If you are even thinking about Bankruptcy, you are most likely already in a bad financial situation and need help. One way to tell is by reviewing my list of financial warning signs. If any of these situations are familiar to you, Bankruptcy could be the answer.
If you are looking for a general ...
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What Makes Me Different From the Others?