Blogs
Debt can be all-consuming, making it incredibly difficult to keep up with financial obligations. It’s only natural for debtors that their sights set to filing for either Chapter 7 or Chapter 13 bankruptcy. Be aware that, for debtors, Chapter 7 is the most widely used filing, and not just anybody can file. There are many standards that debtors must meet to qualify for Chapter 7. Whether debtors choose to file for Chapter 7 or Chapter 13, they must first undergo debt counseling. For many, bankruptcy may feel inevitable; however, attending debt counseling is imperative to ensure that alternatives have been reviewed. It’s important to understand the purpose of debt counseling and carefully prepare for the first session. Debt counseling is imperative for many reasons, and when undergoing the process, it’s essential to choose the right agency to represent you. In the meantime, turn to the support of a bankruptcy lawyer to provide the legal guidance needed during this incredibly complicated and stressful process.
Qualifying for Chapter 7
While there are several types of filings to choose from, Chapter 7 is among the most popular. However, it’s essential to be aware that to qualify for Chapter 7, specific requirements must first be met. Requirements include:
- Debtors must pass the means test in their state
- Debtors must attend debt counseling at least 180 days before the bankruptcy discharge
- Debtors must not have had a bankruptcy dismissal in the past 180 days
- Debtors must be an individual, married, or a sole proprietor
If a debtor doesn’t meet the qualifications for Chapter 7 bankruptcy, don’t despair, there are other options available. For debtors struggling with debt or considering bankruptcy, it’s best to start with an experienced bankruptcy lawyer’s counsel to determine the best path for freeing themselves from debt.
What is Debt Counseling?
One of the most critical components to qualifying for Chapter 7 is to engage in debt counseling at least 180 days before the bankruptcy discharge. Many may find it challenging to endure this process because they believe they already qualify. However, it will be imperative to attend debt counseling to ensure that bankruptcy is the most appropriate option. To file for bankruptcy, two sessions of debt counseling is required. Debt counseling is a critical component to bankruptcy as trained professionals will work to review the debtors’ financial situation and work with you to determine whether there are alternatives to filing for bankruptcy. Your full participation is required during the 60-minute session. However, it’s essential to know that debtors are not required to accept any debt counselor’s proposals. To ensure that your session is as efficient as possible, debtors should come prepared with the following financial information:
- Child Care Expenses
- Mortgage Payments
- All Debts Owed (Credit Cards, Student Loans, Etc)
- Documentation of Income
- Information on Retirement Accounts
With the above information, credit counselors will work closely with debtors to develop a budget and determine the options available to manage debt.
Debt Counseling is Important
For many who have determined that bankruptcy is the most viable option, debt counseling can feel cumbersome. However, the process is imperative. For those considering bankruptcy, it’s vital to ensure that all possible options have been explored. Debt counseling will play a crucial role in reviewing the debtors’ finances and determining whether there are any alternatives to filing for bankruptcy.
While debtors are not required to move forward with recommendations from debt counselors, in some situations, options provided may be a way for debtors to avoid filing for bankruptcy. However, when bankruptcy is the only viable option, the most appropriate step is to reach out to an experienced bankruptcy lawyer to guide how best to move forward.
For more information, call Allmand Law Firm, PLLC.
The post The Process of Engaging in Debt Counseling appeared first on Allmand Law Firm, PLLC.
It is crucial to build your credit. Some people don’t realize how a good credit rating affects their lives significantly. A credit file is not only a matter of concern for a lender. Good credit makes life less costly, and financial situations much more manageable. With a good credit score, an auto loan or mortgage is approved with the best interest rates and terms. When they check your credit and see good ratings, you usually pay less for more in insurance, and utility companies start a service with little deposit after they check your credit report.
Though you cannot undo financial missteps and erase negative items in your credit report, your credit going forward can be improved by rebuilding a positive credit history today.
Credit Score Influencers
As you rebuild credit, know the factors influencing credit scores. Common credit scoring factors are:
- Total debt, including loans, credit cards, loans, and collections
- Payment history record, including on-time payments, late payments, or missed payments
- Credit utilization ratio, which compares total credit available vis a vis how much of it is being used
- Mix, which refers to the credit account types being used
- Age, or how old the credit accounts in question are
- Public records of civil judgments or bankruptcies
- Hard inquiries or recent applications for credit
Credit Score Catalysts
Change credit behaviors to update credit scores positively. Take these steps to rebuild credit, slowly but surely:
- Pay your bills on-time and bring current your past-due accounts. You may set-up payment reminders to ensure on-time payments
- Check your available credit. Creditors spot maxed-out credit accounts, so be mindful of credit card limits. Try to reduce your credit utilization ratio by paying credit card debt and keeping card balances at zero.
- Try to open a secured account, like a secured credit card, to build a credit history. The amount deposited becomes collateral for the percentage of the cash that you will be borrowing. Credit bureaus can see your secured credit account and good payment history.
- Ask for help from friends and family who can make you an authorized user of their credit account, open a joint bank account, or be a cosigner for a loan.
- Be mindful of new credit. Applying for or opening credit card accounts affect credit scores and will translate to hard inquiries. Several credit card applications are also red flags for lenders. Generally, lenders need to be sure you’re not overextending your means financially before giving you additional credit.
- Pay your debt and get help from credit counseling organizations when needed. You may try credit counseling. A credit counselor helps create a financial plan to manage debts. A debt management plan can also help in eliminating debt. Following a payment schedule for unsecured debts could even make creditors waive fees or lower interest rates. You may also want to consider debt consolidation. A debt consolidation loan can help you pay back what you owe more conveniently.
How long will rebuilding your credit take?
It’s not easy to re-establish good payment history when negative information appears on your credit reports for quite some time, as below:
- For late payments, seven years after the account went delinquent and eventually brought current (If the debt was moved to collections because payments were not brought current, the first missed payment will be the original delinquency date)
- For Chapter 7, a bankruptcy that discharges the debt, ten years after the date of filing.
- For Chapter 13 bankruptcy, where a bankrupt person repays debt through renegotiated terms, seven years from the date of filing
- For civil court judgments, seven years from the date of filing
- For paid tax liens, seven years from the date of filing (Ten years if unpaid)
- For hard inquiries, after two years (Over time, their impact diminishes)
Mitigate these by making on-time payments moving forward along with other steps you can take to improve your credit score. Show that, as a borrower, you can responsibly repay a creditor on time.
Get the right people who can help with improving your credit standing. Know more about how to build credit and get more information on repairing your credit history by giving us a call right now at Northwest Debt Relief Law Firm.
.fusion-body .fusion-builder-column-0{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-0 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1024px) {.fusion-body .fusion-builder-column-0{width:100% !important;order : 0;}.fusion-builder-column-0 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:850px) {.fusion-body .fusion-builder-column-0{width:100% !important;order : 0;}.fusion-builder-column-0 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}.fusion-body .fusion-flex-container.fusion-builder-row-1{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}
The post How to Rebuild Credit and Tips in Improving Your Credit Score appeared first on Vancouver Bankruptcy Attorney | Northwest Debt Relief Law Firm.
There is so much mis-information about a forbearance of home mortgages during COVID-19. Know your options before making a decision not to pay your mortgage.
Are you a ‘planner’ or a ‘gambler’?
Do you assume everyone is looking out for you, or you need to look out for yourself? Do you assume everyone will tell you the truth based on what you believe, or that everyone has some alternative motive to have you believe as they believe? Since humans walked this earth there have been planners and gamblers. Planners do their own homework, they research issues, ask questions and assume that answers change over time. Gamblers throw the dice hoping that luck will shine on them today, they don’t see that the ‘house always wins’, instead they are looking for that one hit that will set them up for the rest of their life.
There are consequences for each action.
What does being a ‘planner’ or ‘gambler’ have to do with mortgages, car loans, student loans and credit cards during COVID-19? Plenty!! First, the year of 2020 will bring with it economic issues we have not seen in a century. COVID-19 has led to mass under or unemployment, businesses closing or closed, shopping centers and large commercial businesses closing and filing for bankruptcy. The quarantine has led to less driving. Reduced driving led to using less gasoline, needing fewer repairs and buying fewer new cars (all at a cost to the underlying industry). Our leaders are looking short term in how to solve the challenges we all face, but are their motives selfish (want to be reelected) or altruistic (want to help us weather this crisis)?
A forbearance is not a guaranty you can keep your home.
The CARES Act introduced us to federally mandated programs that offered the homeowner a ‘breathing respite” – no mortgages during certain periods on certain loans. First, the loans must be federally or GSE-backed mortgages. That means 60% of all home loans do not qualify. A forbearance means that payments are put on hold, not that payments automatically go away, or are added to the end of the loan.
Hundreds of thousands homeowners are going to be very surprised when their forbearance periods are over and they must pay all the missing payments immediately, or the lender will foreclose on their home.
Never rely on anything someone tells you, even if they work for your lender. ALWAYS get their promises in writing. What someone says today will change tomorrow and it is your word against theirs what was said. What someone writes will normally stand up in court.
There is no “one solution fits all circumstances”.
Planners pay their bills, especially their mortgage, if they have the funds. Gamblers jump on any offer (like COVID forbearance) even though they have the funds. Why, because planners look at the future, gamblers look at the chips in front of them.
Look for resources that have no ulterior motives, such as:
Arizona Department of Housing
Mortgage Help For Homeowners Impacted By The Coronavirus
There are hardship programs in place to help homeowners who have been directly or indirectly affected by the coronavirus and are struggling to make their mortgage payments. The Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and Freddie Mac, encourages homeowners adversely impacted by the coronavirus who are having difficulty paying their mortgages to reach out to their mortgage servicers as soon as possible. As the Consumer Financial Protection Bureau advises (link is external), “you can find the number for your mortgage servicer on your monthly mortgage statement or coupon book.”
Arizona Department of Economic Security
Services related to COVID-19
Mortgage Assistance
Maricopa County:
COVID Crisis Rental Assistance
Non-COVID Rent & Mortgage Assistance
US Department of Housing and Urban Development
COVID-19 RESOURCES
Consumer Financial Protection Bureau
(CFPB is currently run by a Trump appointee, who has watered down the “consumer protection” component).
Learn about mortgage relief options and protections
.fusion-body .fusion-builder-column-2{width:100% !important;margin-top : 0px;margin-bottom : 0px;}.fusion-builder-column-2 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:980px) {.fusion-body .fusion-builder-column-2{width:100% !important;}.fusion-builder-column-2 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-2{width:100% !important;}.fusion-builder-column-2 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:980px) {.fusion-title.fusion-title-1{margin-top:15px!important;margin-bottom:0px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-1{margin-top:10px!important;margin-bottom:10px!important;}}MUSINGS BY DIANE:
“FREE” does not mean free. It means that you will pay dues later. It may mean your free trip to the mountains comes with obligations to attend two days of intense sales pressure to buy a timeshare that no one wants. It may mean you get a free puppy who hates your children (or it could mean life is perfect and everyone gets along). My point is that ‘free’ is never free. Take time to investigate why someone is offering something for free and what are you obligated to do in the long run.
@media only screen and (max-width:980px) {.fusion-title.fusion-title-2{margin-top:0px!important;margin-bottom:6px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-2{margin-top:10px!important;margin-bottom:10px!important;}}– Diane L. Drain.fusion-body .fusion-builder-column-3{width:100% !important;margin-top : 0px;margin-bottom : 0px;}.fusion-builder-column-3 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 30px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 45px !important;margin-left : 1.92%;}@media only screen and (max-width:980px) {.fusion-body .fusion-builder-column-3{width:100% !important;order : 0;}.fusion-builder-column-3 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-3{width:100% !important;order : 0;}.fusion-builder-column-3 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}.fusion-body .fusion-flex-container.fusion-builder-row-3{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}.fusion-button.button-1 {border-radius:10px;}.fusion-button.button-1.button-3d{-webkit-box-shadow: inset 0px 1px 0px #fff,0px 5px 0px #003d00,1px 7px 7px 3px rgba(0,0,0,0.3);-moz-box-shadow: inset 0px 1px 0px #fff,0px 5px 0px #003d00,1px 7px 7px 3px rgba(0,0,0,0.3);box-shadow: inset 0px 1px 0px #fff,0px 5px 0px #003d00,1px 7px 7px 3px rgba(0,0,0,0.3);}.button-1.button-3d:active{-webkit-box-shadow: inset 0px 1px 0px #fff,0px 5px 0px #003d00,1px 7px 7px 3px rgba(0,0,0,0.3);-moz-box-shadow: inset 0px 1px 0px #fff,0px 5px 0px #003d00,1px 7px 7px 3px rgba(0,0,0,0.3);box-shadow: inset 0px 1px 0px #fff,0px 5px 0px #003d00,1px 7px 7px 3px rgba(0,0,0,0.3);}Click here for steps to your free bankruptcy consultation
.fusion-body .fusion-builder-column-5{width:25% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-5 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 10px;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 10px;}@media only screen and (max-width:980px) {.fusion-body .fusion-builder-column-5{width:100% !important;order : 0;}.fusion-builder-column-5 > .fusion-column-wrapper {margin-right : 10px;margin-left : 10px;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-5{width:100% !important;order : 0;}.fusion-builder-column-5 > .fusion-column-wrapper {margin-right : 10px;margin-left : 10px;}}
- COVID-19 Scams – Warning from FTC
- 60 and Over in the Time of COVID-19? Tips to Stay Financially Healthy.
- Bankruptcy after COVID-19. What Should You Do to Avoid Mistakes?
- 10 Things You Need to Know Before Filing Bankruptcy
.fusion-body .fusion-builder-column-6{width:75% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-6 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 15px !important;margin-right : 10px;padding-bottom : 0px !important;padding-left : 15px !important;margin-left : 10px;}@media only screen and (max-width:980px) {.fusion-body .fusion-builder-column-6{width:100% !important;order : 0;}.fusion-builder-column-6 > .fusion-column-wrapper {margin-right : 10px;margin-left : 10px;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-6{width:100% !important;order : 0;}.fusion-builder-column-6 > .fusion-column-wrapper {margin-right : 10px;margin-left : 10px;}}.fusion-body .fusion-flex-container.fusion-builder-row-5{ padding-top : 0px;margin-top : 5;padding-right : 0px;padding-bottom : 0px;margin-bottom : 20px;padding-left : 0px;}
The post Don’t Gamble With Your Home During COVID appeared first on Diane L. Drain - Phoenix Arizona Bankruptcy Attorney.
Leading Lawyers Weigh In on Portrayal In The Media – (includes quote from Diane Drain)Can you remember the very first time you came across the word ‘lawyer’?
EXCERPT (from KTVN 12 News, WFXG Fox News 54, and WFMJ 21) For most of us it was on a television series such as ‘Law & Order’ or ‘Suits’. Perhaps you watched your parents enjoying shows such as ‘LA Law’ or ‘Cops’? This raises the question; what is the attraction of films and shows depicting law? As a society do we enjoy watching justice get served? Do we feel secure on the deepest levels knowing that we are protected by the integrity of the legal system?
Whatever the reason for our obsession with shows depicting lawyers, one thing is for sure – Hollywood has delivered what we wanted. This raises the next question – Has the big and silver screen’s deeply jaded the public perception of Lawyers? Has the profession been portrayed in an unrealistic light?
For this segment, DirectRank Media has reached out to some of the nation’s most awarded and respected law firms and leading attorneys for their thoughts and opinions of how Hollywood portrays the legal profession.
2. Diane L. Drain, from the Law Office of D.L. Drain, P.A, is one of Arizona’s leading bankruptcy and foreclosure firms. When we posed the question of whether or not Drain thought that the Hollywood portrayal of lawyers influences how people think of the legal profession she stated “Hollywood’s goal is to sell a product. No one is going to watch a show that depicts the true life of a lawyer (it is usually very boring). Instead, Hollywood distorts the practice of law in order to garner attention and sell products. The sexier, more controversial, or shocking they can make a legal situation – the more likely someone is to watch the program and buy the product.”
.fusion-button.button-2 .fusion-button-text, .fusion-button.button-2 i {color:#00260a;}.fusion-button.button-2 .fusion-button-icon-divider{border-color:#00260a;}.fusion-button.button-2:hover .fusion-button-text, .fusion-button.button-2:hover i,.fusion-button.button-2:focus .fusion-button-text, .fusion-button.button-2:focus i,.fusion-button.button-2:active .fusion-button-text, .fusion-button.button-2:active{color:#004713;}.fusion-button.button-2:hover .fusion-button-icon-divider, .fusion-button.button-2:hover .fusion-button-icon-divider, .fusion-button.button-2:active .fusion-button-icon-divider{border-color:#004713;}.fusion-button.button-2:hover, .fusion-button.button-2:focus, .fusion-button.button-2:active{border-color:#004713;border-width:2px;}.fusion-button.button-2 {border-color:#00260a;border-width:2px;border-radius:0px;}.fusion-button.button-2{background: rgba(255,255,255,0);}.fusion-button.button-2:hover,.button-2:focus,.fusion-button.button-2:active{background: rgba(255,255,255,0);}.fusion-button.button-2 .fusion-button-text {text-transform:uppercase;}READ MOREThis is an alert! Trying to take care of your own legal issues without good guidance can lead to horrific and unnecessary results. Many attorneys offer free or very inexpensive consultations.MUSINGS BY DIANE
I have seen innocent people make terrible legal decisions because they took advice from neighbors, friends, family, even the Internet. As a result they lost their home, their savings and their peace of mind. Would anyone do their own surgery or diagnose their complicated health problems? There is a reason why not, because it just does not make common sense. We all want to save money, but at what point do we realize that we need professional help. I don’t know about you, but I would never rewire my home because I cherish the people who live in that home. Read this post: There is nothing more expensive than hiring a cheap lawyer.
– Diane L. Drain
The post Leading Attorneys Share Thoughts on Misrepresentations in the Media appeared first on Diane L. Drain - Phoenix Arizona Bankruptcy Attorney.
When families file for bankruptcy, one of the most common concerns they have is whether they will keep their family home. For many, this weighs heavily on the mind of someone who is considering bankruptcy as an option. While the automatic stay can undoubtedly stop foreclosure and offer relief, this is only short-lived, which is why an experienced bankruptcy lawyer will play a critical role in moving forward. They will discuss your needs and assist with alternative options that allow debtors to retain homeownership. When bankruptcy is the only option, choosing the right chapter is imperative for keeping the home. While it can be easy to avoid the issue, taking immediate action is one of the most critical steps.
The Automatic Stay
It should come as no surprise that many file for bankruptcy to save property that is being foreclosed upon. The automatic stay is granted in bankruptcy cases, stopping lenders from taking action to collect debts that are owed. The automatic stay is often granted during bankruptcy proceedings to allow debtors equal footing to resolve their debts. This usually comes with much relief as foreclosure actions, and constant phone calls to collect debts are often stopped.
Choose the Right Bankruptcy Filing
When bankruptcy is the most viable option for managing debts and debtors would like to remain in their homes, choosing the right filing will be imperative. The filing chosen will primarily rely upon the situation. When selecting the proper bankruptcy filing, the decision will largely depend on how current debtors are on their mortgage and the equity they have in their homes. You may be able to file for either Chapter 7 or Chapter 13 bankruptcy, which will depend upon the equity in your home and the exemptions allowed within the state. Bankruptcy is one of the most significant decisions that debtors can make, and when saving a home from foreclosure, immediate action will be critical. Don’t wait until a few days before the official foreclosure to contact a lawyer. Debtors at risk for losing their homes should contact a lawyer as soon as possible to weigh their options and adequately plan for how best to move forward.
Immediate Action is Imperative
Foreclosures happen when the borrower is not able to make their mortgage payments. Should this occur, the lender will take steps to retain the money owed to them by foreclosing on the property to obtain the balance that is owed. Facing debts can be challenging and even shameful. It can be hard to reach out to a creditor or a lawyer to discuss obligations and develop a plan of action. Despite the difficulties and emotions present, taking immediate action to control the situation will be necessary. When falling behind on payments, it can be easy to ignore the problem, especially if you do not believe there is a realistic solution.
When bankruptcy is the feasible solution, a debtor’s thoughts may turn to concern over whether they will be able to remain in their home post-bankruptcy. This can be a complicated process that requires assistance from an experienced bankruptcy lawyer. While this may not be an option in some situations, it’s critical to make decisions with a professional before assuming that all hope will be lost. If you cannot catch up on arrears through the various bankruptcy filings available, foreclosure may be inevitable. However, to ensure that all options have been explored, it’s essential to consider a lawyer’s assistance. Their services will be able to assist with making sure that you are not losing your home when a solution may be available
For more information, call Allmand Law Firm, PLLC today.
The post Saving Your Home from Foreclosure During Bankruptcy appeared first on Allmand Law Firm, PLLC.
When families file for bankruptcy, one of the most common concerns they have is whether they will keep their family home. For many, this weighs heavily on the mind of someone who is considering bankruptcy as an option. While the automatic stay can undoubtedly stop foreclosure and offer relief, this is only short-lived, which is why an experienced bankruptcy lawyer will play a critical role in moving forward. They will discuss your needs and assist with alternative options that allow debtors to retain homeownership. When bankruptcy is the only option, choosing the right chapter is imperative for keeping the home. While it can be easy to avoid the issue, taking immediate action is one of the most critical steps.
The Automatic Stay
It should come as no surprise that many file for bankruptcy to save property that is being foreclosed upon. The automatic stay is granted in bankruptcy cases, stopping lenders from taking action to collect debts that are owed. The automatic stay is often granted during bankruptcy proceedings to allow debtors equal footing to resolve their debts. This usually comes with much relief as foreclosure actions, and constant phone calls to collect debts are often stopped.
Choose the Right Bankruptcy Filing
When bankruptcy is the most viable option for managing debts and debtors would like to remain in their homes, choosing the right filing will be imperative. The filing chosen will primarily rely upon the situation. When selecting the proper bankruptcy filing, the decision will largely depend on how current debtors are on their mortgage and the equity they have in their homes. You may be able to file for either Chapter 7 or Chapter 13 bankruptcy, which will depend upon the equity in your home and the exemptions allowed within the state. Bankruptcy is one of the most significant decisions that debtors can make, and when saving a home from foreclosure, immediate action will be critical. Don’t wait until a few days before the official foreclosure to contact a lawyer. Debtors at risk for losing their homes should contact a lawyer as soon as possible to weigh their options and adequately plan for how best to move forward.
Immediate Action is Imperative
Foreclosures happen when the borrower is not able to make their mortgage payments. Should this occur, the lender will take steps to retain the money owed to them by foreclosing on the property to obtain the balance that is owed. Facing debts can be challenging and even shameful. It can be hard to reach out to a creditor or a lawyer to discuss obligations and develop a plan of action. Despite the difficulties and emotions present, taking immediate action to control the situation will be necessary. When falling behind on payments, it can be easy to ignore the problem, especially if you do not believe there is a realistic solution.
When bankruptcy is the feasible solution, a debtor’s thoughts may turn to concern over whether they will be able to remain in their home post-bankruptcy. This can be a complicated process that requires assistance from an experienced bankruptcy lawyer. While this may not be an option in some situations, it’s critical to make decisions with a professional before assuming that all hope will be lost. If you cannot catch up on arrears through the various bankruptcy filings available, foreclosure may be inevitable. However, to ensure that all options have been explored, it’s essential to consider a lawyer’s assistance. Their services will be able to assist with making sure that you are not losing your home when a solution may be available
For more information, call Allmand Law Firm, PLLC today.
The post Saving Your Home from Foreclosure During Bankruptcy appeared first on Allmand Law Firm, PLLC.
When families file for bankruptcy, one of the most common concerns they have is whether they will keep their family home. For many, this weighs heavily on the mind of someone who is considering bankruptcy as an option. While the automatic stay can undoubtedly stop foreclosure and offer relief, this is only short-lived, which is why an experienced bankruptcy lawyer will play a critical role in moving forward. They will discuss your needs and assist with alternative options that allow debtors to retain homeownership. When bankruptcy is the only option, choosing the right chapter is imperative for keeping the home. While it can be easy to avoid the issue, taking immediate action is one of the most critical steps.
The Automatic Stay
It should come as no surprise that many file for bankruptcy to save property that is being foreclosed upon. The automatic stay is granted in bankruptcy cases, stopping lenders from taking action to collect debts that are owed. The automatic stay is often granted during bankruptcy proceedings to allow debtors equal footing to resolve their debts. This usually comes with much relief as foreclosure actions, and constant phone calls to collect debts are often stopped.
Choose the Right Bankruptcy Filing
When bankruptcy is the most viable option for managing debts and debtors would like to remain in their homes, choosing the right filing will be imperative. The filing chosen will primarily rely upon the situation. When selecting the proper bankruptcy filing, the decision will largely depend on how current debtors are on their mortgage and the equity they have in their homes. You may be able to file for either Chapter 7 or Chapter 13 bankruptcy, which will depend upon the equity in your home and the exemptions allowed within the state. Bankruptcy is one of the most significant decisions that debtors can make, and when saving a home from foreclosure, immediate action will be critical. Don’t wait until a few days before the official foreclosure to contact a lawyer. Debtors at risk for losing their homes should contact a lawyer as soon as possible to weigh their options and adequately plan for how best to move forward.
Immediate Action is Imperative
Foreclosures happen when the borrower is not able to make their mortgage payments. Should this occur, the lender will take steps to retain the money owed to them by foreclosing on the property to obtain the balance that is owed. Facing debts can be challenging and even shameful. It can be hard to reach out to a creditor or a lawyer to discuss obligations and develop a plan of action. Despite the difficulties and emotions present, taking immediate action to control the situation will be necessary. When falling behind on payments, it can be easy to ignore the problem, especially if you do not believe there is a realistic solution.
When bankruptcy is the feasible solution, a debtor’s thoughts may turn to concern over whether they will be able to remain in their home post-bankruptcy. This can be a complicated process that requires assistance from an experienced bankruptcy lawyer. While this may not be an option in some situations, it’s critical to make decisions with a professional before assuming that all hope will be lost. If you cannot catch up on arrears through the various bankruptcy filings available, foreclosure may be inevitable. However, to ensure that all options have been explored, it’s essential to consider a lawyer’s assistance. Their services will be able to assist with making sure that you are not losing your home when a solution may be available
For more information, call Allmand Law Firm, PLLC today.
The post Saving Your Home from Foreclosure During Bankruptcy appeared first on Allmand Law Firm, PLLC.
Originally appeared on Baltimore Business Journal Filing for bankruptcy protection may seem taboo to small business owners, but a relatively new and little-known program could prove to be the difference between surviving the Covid-19 pandemic or closing for good. The flood of bankruptcies that many economists, lawyers and accountants expected has not transpired. While several large companies in the retail industry have filed for Chapter 11 bankruptcy — J.C. Penney, Neiman Marcus and Brooks Brothers to name a few — most small businesses have held off as they try to tread water. Small businesses have typically not filed Chapter 11 bankruptcy because the reorganization process associated with doing so tends to be costly and take a lot of time. If businesses don't have enough cash for reorganization, creditors will push them to liquidate. However, for many small businesses the clock is getting closer to striking midnight as the federal stimulus money dries up and the coronavirus pandemic continues to persist. Despite what President Donald Trump says, medical experts don't expect a vaccine to be widely available until 2021. A law passed by Congress last year that went into effect in February provides small businesses with a lifeline: a new section of Chapter 11 known as Subchapter V, which involves a more timely and less costly reorganization process. Subchapter V was created to provide an option for businesses with $2.7 million or less in debt. It prevents creditors from proceeding with collections, guarantees a reorganization plan is filed within 90 days and waives quarterly bankruptcy trustee fees. Congress raised the debt limit to $7.5 million when it passed its coronavirus relief package, known as the CARES Act, in March. "It was pure luck that we have such a useful tool that came out right when this [pandemic] happened," said Vadim Ronzhes, a tax consultant at Rosen, Sapperstein & Friedlander in Towson. Accountants and attorneys have traditionally recommend against filing for Chapter 11 in the past because of how difficult it can be to get a reorganization plan approved, Ronzhes said. With Subchapter V it's a much easier and quicker process, he said. During the proceedings, a business may continue to pay expenses such as employees wages and benefits while it develops a plan for paying off creditors, Ronzhes said. "The whole goal is to make sure that the business is operational and that you're able to continue supporting the community that you're operating in and make sure your employees are getting paid," Ronzhes said. "That is definitely one of the biggest benefits." Another benefit is that the company can bring on new investors or owners. In the current operating environment with all-time low interest rates, Ronzhes said outside investors are looking to provide debt or investment capital. Perhaps most important, Ronzhes said, is that the Subchapter V process brings all creditors to the table to come up with a plan for paying off debt. Everyone does not have to approve of the plan, but at least all parties will have been a part of the conversation, he said. During the pandemic many small business owners have complained about the challenges of working with landlords who are unwilling to rework leases. The Subchapter V process can force those landlords to come to the table while allowing the business to remain operational instead of being forced to close. There are downsides to filing for bankruptcy though. For one, it will negatively impact credit ratings. Filing for bankruptcy also carries a negative stigma. But in the current economic situation brought on by the pandemic, Ronzhes said the good more than likely outweighs the bad. "If you have multiple debtors and one person decides to file suit and take money out of your bank account through levies, that could end an organization," Ronzhes said. "As soon as you start paying employees, they're not showing up. This is a way to reorganize and I think it's going to be used a lot by businesses to give themselves breathing room." One industry that won't be helped is real estate, Ronzhes said. Real estate firms are usually structured by having separate limited liability companies for individual properties. Those LLCs won't be able to file for Subchapter V protection because the overall organization may still be profitable.
Bankruptcy laws provide specific information on the different types of bankruptcy. Among others, there is personal bankruptcy, consumer bankruptcy, and business bankruptcy. If you find yourself having trouble with debt-settlement or if you know you won’t be able to repay a creditor with what you owe, you may want to file for bankruptcy.
People considering bankruptcy should at least have an idea of the bankruptcy process. Credit counseling or a chat with a bankruptcy attorney can help with general bankruptcy information and details. This article will help you know if filing for bankruptcy is the best option for you.
- Should I declare bankruptcy or just do nothing?
For people who can’t pay-back and wipe-out their debt, only doing nothing is worse than choosing to declare bankruptcy. It’s going out during a storm without an umbrella. If you have not filed for bankruptcy yet, you can be harassed by creditors or debt collection agencies. You may find yourself sued or dealing with a lawsuit with your assets or equity unprotected.
- Is debt consolidation better than bankruptcy filing?
Bankruptcy filings are not done overnight. People ask if it’s better to file bankruptcy or opt for debt consolidation.
Compare monthly payments vis-a-vis Chapter 13 bankruptcy cases. If borrowers have lower monthly payments in five years, then debt consolidation might be the right choice. Consider the time you need to pay off what you owed because this also applies if you will not qualify for Chapter 13 bankruptcy, likely because of the debt limit for unsecured and secured debt.
Most opt for Chapter 7 type of bankruptcy because it allows for a fresh start in a much shorter time. However, if filing bankruptcy will have unwelcome consequences, you may want to look into debt consolidation. Experienced bankruptcy attorneys can help explain this further.
- I decided to file for bankruptcy. Should I file Chapter 13?
There are two types of bankruptcy. Following the bankruptcy code, Chapter 13 runs for usually five years, roughly similar or longer compared to debt consolidation. With this, you are protected from creditors while you settle the outstanding debt following a repayment plan. Some call it as home-saver bankruptcy because, aside from debt-relief, it can prevent home foreclosure. The need for bankruptcy protection concerning debtors is also something you need to know.
The bankruptcy court can reduce the total amount to be repaid to certain creditors, depending on the debts incurred. Note, however, that once payment agreed upon is received, the debt will be considered fully-paid. However, you will have a low credit rating throughout Chapter 13, following the bankruptcy law.
- What if I file a Chapter 7?
Chapter 7 bankruptcies are often less complicated and expensive. Think about unpaid debt from your lenders. With experienced bankruptcy attorneys, your unsecured debt may be wiped clean in around three months.
If you filed for bankruptcy under Chapter 13, repayment of your full disposable monthly income is required. In contrast, a Chapter 7 case in the form of bankruptcy known as “fresh start” or even “clean slate” bankruptcy is a better choice for some because it can allow you to get out of your debts without repaying the unsecured debt to creditors. Furthermore, although it will require you to turn over all your non-exempt assets, there is a way to keep your property. A knowledgeable bankruptcy lawyer can help make sure that most, if not all, your assets are considered exempt.
Lastly, in this bankruptcy type, it is the court who decides if assets must be sold to pay back your creditors. A bankruptcy law firm experienced in handling different cases can help you prepare documents that must be filed. Bankruptcy forms and paperwork must be accomplished very carefully or you risk dismissal of your case.
If you are considering bankruptcy and you more information on how to get started, call us now at Northwest Debt Relief Law Firm for a free initial consultation.
.fusion-body .fusion-builder-column-0{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-0 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1024px) {.fusion-body .fusion-builder-column-0{width:100% !important;order : 0;}.fusion-builder-column-0 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:850px) {.fusion-body .fusion-builder-column-0{width:100% !important;order : 0;}.fusion-builder-column-0 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}.fusion-body .fusion-flex-container.fusion-builder-row-1{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}
The post Declaring Bankruptcy: Looking into Your Options appeared first on Vancouver Bankruptcy Attorney | Northwest Debt Relief Law Firm.
As many readers of our blog and emails know, at Shenwick & Associates we are helping many commercial tenants vacate their leases prior to the expiration of their lease, due to the virus and other economic factors. See https://shenwick.blogspot.com/2019/11/the-failed-or-closed-restaurant-and-its_6.html and "Commercial leases in New York City, COVID-19, Recent Protests and a Strategy to End or Terminate Commercial Leases", dated SUNDAY, JULY 12, 2020 can be found at https://shenwick.blogspot.com/2020/07/commercial-leases-in-new-york-city....A law was recently passed in NYC which limits the liability of individuals who have guaranteed leases with certain restrictions (that law Int. 1932-A, which is discussed below and which many people including attorneys and lawyers are not aware) can limit a guarantors exposure if a lease is terminated.The Wall Street Journal reports that only 10% of workers have returned to their office in NYC and with so many workers working remotely, many businesses would like to terminate or exit their leases and or vacate their space prior to the expiration date of the lease to save on the cost of rent. In fact, office rent and the cost of commuting are significant business expenses that many businesses would like to reduce or eliminate.Additionally, many experts predict that many workers may never return to New York or other cities due to technological advances like Zoom, Google Meet, crime, the diminishing quality of life in New York, the cost, aggravation and time spent commuting and the other benefits of not having to commute, such as more family and leisure time.At Shenwick & Associates, we have helped many tenants vacate their lease and space using a multi pronged strategy consisting of: 1. review of the commercial lease to determine if the Landlord has breached any terms of the Lease, 2. review of the guarantee or good guy guarantee signed by the principle of the business, 3. aggressive negotiations with the landlord and 4. threatening or filing a bankruptcy petition, including new sub chapter 5 of chapter 11 of the bankruptcy code, to reject the lease in bankruptcy or to close the business.Many clients are interested in retaining our services, but they are concerned about the impact of the guarantee or the good guy guarantee, if the commercial tenant vacates the space early or terminates the lease prior to its expiration.Guarantees:There are two types of guarantees in leases: a regular guarantee and a good guy guarantee. Good guy guarantees are more common in leases than regular guarantees in leases. Having reviewed many office guarantees, we note that many guarantees have a limited life, meaning that the guarantee expires on its own terms during the term of the lease or converts to a good guy guaranty, after a period of time.A good guy guarantee generally provides that the guarantors liability for rent or additional rent terminate when 1. the tenant gives proper notice (pursuant to the terms of the Lease or the good guy guaranty) that the tenant will vacate the space (generally 90 days), 2. The tenant does in fact vacate the space and is current on the payment of rent or additional rent when it vacates and 3. The premises are left “broome clean”. Provided that these and other conditions are met, the guarantors liability ceases, however the tenant remains liable for rent and additional rent until the lease expires. Oftentimes if we can show a landlord that the tenant is out of business, closing its business, losing money or has few assets, the landlord may be amenable to allowing the tenant to vacate the space early, pursuant to a negotiated lease surrender agreement.If the landlord resists, we will draft a bankruptcy petition and send it to the landlord indicating that if the parties cannot reach an agreement then the tenant will file for bankruptcy and the landlord will lose rent, and incur significant legal fees for landlord tenant and bankruptcy attorneys.Additionally, there is a New York City law that can aid a tenant who wants to vacate a space with respect to money that may be owed by the guarantor., which law prohibits the enforcement of personal liability provisions in certain commercial leasesInt. 1932-A prohibits landlords under certain commercial leases from enforcing guarantees in their leases if the guarantors are “natural persons,” (it may not apply if the guarantor is an LLC or corporations), provided that the default occurred between March 7, 2020 and September 30, 2020, and that the tenant was impacted by the stay at home orders implemented by the Governor’s office in one of the following ways: 1. the tenant was required to cease serving food or beverages for on-premises consumption or to cease operation under Executive Order 202.3 issued by the Governor on March 16, 2020; 2. the tenant was a non-essential retail establishment subject to in-person limitations under guidance issued by the New York State Department of Economic Development pursuant to Executive Order 202.6 issued by the Governor on March 18, 2020; or 3. the tenant was required to close to members of the public under Executive Order 202.7 issued by the Governor on March 19, 2020 (i.e. barbershops, hair salons, tattoo or piercing parlors, nail technicians, cosmetologists, estheticians and the provision of electrolysis, laser hair removal services and related personal care services).The law also provides that if a landlord attempts to enforce a guaranty that the landlord knows or reasonably knows is not enforceable, that would be commercial tenant harassment that is prohibited under Subdivision a of section 22-902 of the Administrative Code of the City of New York
The facts of each case need to be reviewed to determine if Int. 1932-A applies, however at Shenwick & Associates we have found that many tenants meet the requirements of the law based on the fact that the tenant was a non-essential retail establishment and therefore their guarantor liability was voided.Clients that are interested in terminating their lease or existing their lease early should contact Jim Shenwick [email protected] 212 541 6224.
Updated daily, this blog will keep you informed on the latest bankruptcy news! 
Learn more about how Bankruptcy works and what you need to know.