Bankruptcy Insights

MAYBE HELP WILL COME – STOP FORECLOSURE ??
I have written several blogs which address the blight of the homeowner in trouble because of the recent economic downturn.  I’m talking about people who borrowed an affordable sum after making a down payment to purchase their dream home. Until the recent economic downturn these homeowners made their monthly payments ( in many cases for years). Then layoffs started.  In a great number of cases...
Foreclosure – If You Wait Too Long!
Prior to the enactment and implementation of the federal bankruptcy laws designed to help people keep their homes there were always a few people in trouble and waited too long before seeking bankruptcy legal advice on Chapter 13.  These few were faced with the bitter truth that their failure to act promptly resulted in their home being lost to...
When Redemption of Consumer Goods Makes Sense in a Chapter 7?
In the previous Blog I discussed Reaffirmation, which is one of the ways for a debtor in Chapter 7 bankruptcy to keep property secured by a lien such as an automobile.  There are alternatives to reaffirmation. There are two ways to
eliminate a debt secured by property, one of which is to give the property back to the creditor and the other allows you...
Pay Day Loan Companies Are Cunning!
Lots of people seeking help from a bankruptcy lawyer to file a Chapte 7 (eliminate unsecured creditors) or a chapter 13, have one or more payday loans.  Payday loans are difficult to deal with for both the client and the bankruptcy lawyer.  The companies that offer these loans seem to know every trick in the book to continue  receiving payments, as well as avoiding having...
Not All Debt Relief Companies Are Created Equal
I want to make it clear that I have nothing against "Debt Relief Agencies".  Under the right circumstances they perform a service that avoids bankruptcy for many people.  Some of these companies are honest, charge reasonable fees and have a staff that is well trained.  A good example is the YWCA here in El Paso, Texas.  Over the past six months it appears that the...
DISCHARGABILITY OF STUDENT LOANS IN BANKRUPTCY
In an average bankruptcy case, regardless of the chapter (7,13) filed, student loans are not dischargeable.  In the Western District of Texas, payments on student loans may not be included in a Chapter 13 Plan unless such plan proposes to pay the unsecured creditors 100% of their claims.  Instead, student loans are deferred until after the Chapter 13 plan has been completed. All the while interest...
A NEW EVIL HAS EMERGED – DEBT RELIEF STOREFRONTS
Oh my God, today I spoke with a woman who was considering bankruptcy as a way to get out from under her credit card debt.  She like most people would rather pay off her debts than file for bankruptcy especially when you can wrap your arms around your debt total.  I applaud your ethics and values.  Sometimes, based on how much you owe in credit...
Copies Vs. Originals at Your Bankruptcy’s 341 Meeting
Required by law, the first request that a trustee for a Chapter 7 or a Chapter 13 bankruptcy makes of a debtor is to see his driver's license and social security card in order to establish the identity of the debtor.  The trustee is fulfilling his obligation to identify the debtor by seeing an original driver's license, because it has a picture of the debtor...
MEANS TEST TWEAKED, SCORE TWO POINTS FOR THE CONSUMER
The "Means Test" became law as part of the Bankruptcy Consumer Protection Act Of 2005.  The test is mandated by the bankruptcy code including a long, vague and confusing explanation of exactly how to set up the test, which was left to the Office of the United States Trustee.  The backbone of the test is derived from the Internal Revenue Code.  The test has gone...
Why Some Reaffirmation Agreements Are Approved And Others Are Not?
A reaffirmation agreement is a contract that is used in a Chapter 7 Bankruptcy case that must be approved by the Bankruptcy Judge, in most cases without a court hearing.  In general, the purpose of this agreement is to agree to repay what is owed to a creditor, in almost all cases the debt is secured by something that the debtor bought and wishes to...

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