In an earlier post, I discussed the benefits that the increase in the homestead exemption will have for homeowners - but what about those who do not own a home? Do not fret - there are also benefits for non-homeowners as well.
In any discussion of exemptions for those who file bankruptcy in New York, there has always been a major tradeoff in what you are allowed to protect when you file bankruptcy - namely, if you are required to claim the homestead exemption, you could not claim any exemption for cash or cash equivalent assets such as checking or savings accounts or the right to receive a tax refund.
Effective January 22, 2011, the ...
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Increase in Homestead Exemption a Major Boon to Boomers/Retirees
On January 22, 2011, the amount of equity that an individual homeowner in New York State can protect from creditors in bankruptcy shall increase from $50,000.00 to $150,000.00.
This increase could prove to be a major benefit to boomers and retirees in our area who may:
...own their home (including coops and condos) free and clear or have a substantial equity position in their home;
...are either on a fixed income or are at an income level that would qualify them for a Chapter 7 Bankruptcy under the Means Test;
...have considered bankruptcy because of the burdens of credit card and/or other debt obligations, BUT
...have been previously ...
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Patterson Signs Bill Increasing Exemptions in Bankruptcy
Governor David A. Paterson announced on December 23, 2010 that he signed into law S.7034-A/A.8735-A, which will increase the amount of exemptions in bankruptcy proceedings and money judgments and provide a choice between State and Federal exemptions.
"During this time of economic crisis, it is our responsibility as public servants to protect those who are struggling the most," Governor Paterson said. "A reconsideration of the current exemptions, which in some cases have not been changed in decades, is particularly warranted when an increasing number of individuals find themselves in dire financial condition. Though this is not a perfect ...
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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 ...
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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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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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