A chapter 13 bankruptcy filing often contains several advantages over a conventional chapter 7 case, one of which can be the use of the “co-debtor stay” that chapter 13 allows. First, a bit of legal jargon. Filing any bankruptcy case creates an “automatic stay” concerning collection efforts against the debtor. It is this provision that […]
Category Archives: Chapter 13
Using bankruptcy to get rid of a second mortgage
Since I recently took a look at the first opinion written by Melvin Hoffman, the new Massachusetts bankruptcy court judge, I thought it might be fair to even the score a bit and take a look at the last opinion issued by the judge Hoffman replaced, retiring Massachusetts bankruptcy judge Joel Rosenthal. Turns out Judge […]
Also posted in Real estate
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New Massachusetts bankruptcy judge says no to trustee-paid claims
The first written opinion by the newest Massachusetts bankruptcy judge is of interest to Chapter 13 debtors and Massachusetts bankruptcy attorneys. In the Pearson case, judge Melvin Hoffman struck down a provision in a debtor’s Chapter 13 plan that would have provided for administrative claims to be paid by the trustee out of the plan […]
Also posted in Bankruptcy News
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Creditors need to read their mail, too!
Around here we are very familiar with the phenomenon of debtors who at some point just give up and stop opening their mail. Every week, they bring in the unopened bills, and I open them and add them up! But what about a creditor who misses something important because they didn’t open the mail? Suprisingly […]
Also posted in Bankruptcy News, Student loans
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Got mortgage trouble? Stay tuned . . .
Business news outlet CNBC is reporting that the Obama administration will announce important new initiatives to deal with the depressed housing markets later today. There will be changes to the battered-down Home Affordable Modification Program (HAMP), including a new emphasis on writing down the principal on troubled mortgage loans, and financial assistance to unemployed homeowners. […]
Also posted in Bankruptcy News, Foreclosure, Real estate
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Massachusetts supreme court will decide foreclosure issues
The Supreme Judicial Court in Massachusetts said yesterday that it will hear the Ibanez foreclosure case, which has caused turmoil in the banking and mortgage lending business. In 2009, the Land Court issued the original Ibanez ruling which required that the true mortgage holders be properly identified before foreclosure proceedings could continue. The pace of […]
Also posted in Bankruptcy News, Chapter 7, Foreclosure
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The tragedy of subprime mortgages
Most foreclosure victims aren’t folks who have flipped a thousand homes or made and lost millions in the real estate boom-turned-bust. Most homeowners who are now victims of foreclosure, depended on the goodwill of the mortgage industry to provide safe mortgages that would allow them to fulfill their dreams of homeownership. But instead of long-term […]
Also posted in Foreclosure
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Some reasons why a consumer might want to switch from Chapter 13 to Chapter 7 bankruptcy
When a debtor switches his or her case between different chapters of the bankruptcy code, we lawyers say they are “converting” the case from one chapter to another. This is usually done by having the debtor’s bankruptcy attorney file a simple motion with the judge. Why would a debtor who had gone to the trouble […]
Also posted in Chapter 7
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Will bankruptcy stop wage garnishments?
In almost all cases, filing a bankruptcy case will stop wage attachments and garnishments. Creditors have to respect the “automatic stay” on collections activity that goes into place once you file. An important exception is child-support deductions from your pay. These can’t be eliminated or reduced through bankruptcy, although you may be able to use […]
Also posted in Practical tips
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Bankruptcy can help reduce the foreclosure rate
With most of the government efforts to stem forclosures having failed miserably, bankruptcy law has probably prevented a crisis on the scale of the Great Depression or worse. Congress should embrace the power of the bankruptcy law if it really wants to get a handle on the problem. Here are some of the ways that […]
Posted in Chapter 13
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