While not exactly a sexy topic, there is a growing body of case law regarding what constitutes a creditor violation of the discharge injunction imposed under 11 U.S.C. Section 524 in a Chapter 7 case.
In a recent case decided by Chief Judge Alan Trust in the EDNY, Judge Trust clarified and distinguished a creditor's post-discharge rights when a mortgage debt is discharged in bankruptcy and the remedies that are still available to the creditor under applicable State Law.
A mortgage, in its simplest form, is a pledge of a property to guarantee the payment of a debt. When a mortgagor files Chapter 7 bankruptcy, the underlying personal ...
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What is a Sub-Prime Loan?
To understand what a subprime loan is, it is first important to understand the details of a prime loan. A prime loan, also known as a conventional loan, is offered by lending institutions to borrowers they see as ideal, less risky candidates. These preferred borrowers are typically in good financial standing and have good credit. Essentially, lenders like to make deals with these people because they believe them to be more capable of eventually paying back the loan.
You don't have to be a linguist to know that "sub" means under, below, or in some cases, less than. Thus, a subprime loan is a tier below a prime loan. In the case of auto ...
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VantageScore – Credit Scoring Game Changer?
Various sources have reported that lenders are increasingly using VantageScore to determine credit worthiness. You need to know what it is and why it could be a game changer.
VantageScore is a credit scoring model that first emerged in 2006 as a joint venture of the big three credit bureaus — Experian, Equifax and TransUnion — and now has the distinction of being one of only two scoring models lenders rely on to make lending decisions (the other being FICO). VantageScore currently claims about 10% of this hard-to-crack market for credit scores used in the lending industry, with the greatest adoption seen among the largest banks and ...
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Quick Tips to Build Your Life after Bankruptcy
Bankruptcy lawyers in New York, often come across people/families who become victim of the recurring spiral of financial crisis only because they do not know how to get out of debt. Truth is that most people are unaware of how to start anew after a bankruptcy episode – they tend to repeat their past mistakes over and over making it difficult for themselves to emerge out of their ever-persisting hardships.
The road to recovery is difficult and it requires solid perseverance and dedication to accomplish. But from where we see it, who wouldn’t want to live a debt-free life without having to worry about due dates and interest rates?
These ...
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Tips for Maintaining Good Credit
There are many ways you can maintain a good credit score. One of the key points is to always be aware of your credit usage, credit score and your financial spending. Following these guidelines will help you maintain good credit and allow you to continue living a financially helpful lifestyle.
Control Your Spending!
This does not apply just to credit cards, but for everything you do. The temptations are always there.to overspend on that new pearl neckless or a new car, because it has options your current car doesn’t have. Be smart and money-wise. You never know when an unexpected financial emergency might happen that could change your entire ...
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Bill Proposes To Shorten Reporting Periods For Derogatory Credit
A new bill in Congress seeks to overhaul the consumer credit-reporting system by lessening the period that loan defaults and bankruptcies are included in credit reports.
The Fair Credit Reporting Improvement Act of 2014, introduced Wednesday by Rep. Maxine Waters (D., Calif.) calls for large-scale revisions to the information in consumers’ credit reports, including the removal of certain foreclosures and short sales. A short sale is when a home is sold for less than the borrower owes on the mortgage and any other loans on the house.
The bill’s introduction comes a month after Fair Isaac Corp. announced it would tweak its widely used FICO ...
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FHA MORTGAGE AFTER BANKRUPTCY? THE ANSWER IS YES!
Over the past five years, many of my bankruptcy clients have surrendered underwater primary residences to their lenders instead of modifying their mortgages. In a majority of the cases, the numbers simply did not make any sense financially - even if they tried to keep the property, they would never be able to build any equity within a reasonable time frame.
The single most asked question in these cases has been "Will I ever be able to buy another home?" The answer is YES!
After the issuance of a discharge in Chapter 7 bankruptcy, an FHA applicant must wait out the FHA's minimum "seasoning" period. At the time of this writing, that period is ...
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FOUR TIPS ABOUT CREDIT AFTER BANKRUPTCY
No matter how many clients I have worked with over the past 25 years, the greatest concern of the vast majority of them is “How long will it take me to re-establish credit after I file Chapter 7 Bankruptcy?”
While there is no hard and fast rules of thumb, it is much easier than you think. Here are four tips to consider:
1. Keep any manageable debts you can after you file. In most cases, student loans can’t be discharged by bankruptcy. Other times, clients may choose to continue making payments on a car loan. Assuming that you can afford the monthly payments, it makes sense to maintain your student loan and/or auto payments after your ...
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Credit After Bankruptcy – Now Easier That Ever
It’s looking like 2005 all over again for credit cards....
The New York Times reported this week that credit card solicitations, particularly for those individuals who have tarnished credit or have previously filed bankruptcy, rose substantially during the fourth quarter of 2011. Credit card lenders gave out 1.1 million new cards to borrowers with damaged credit in December, up 12.3 percent from the same month a year earlier, according to Equifax’s credit trends report released in March. These borrowers accounted for 23 percent of new auto loans in the fourth quarter of 2011, up from 17 percent in the same period of 2009, Experian, a credit ...
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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 ...
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