Tuesday, November 6, 2012

There is Life after bankruptcy and it includes a new car!

 According to the Federal Judicial Caseload Statistics, there are literally millions of people filing bankruptcy each year. The statistics reveal that Chapter 7 is by far the most frequently filed Chapter, with 958,634 non-business consumer filings for the period ending December 31, 2011. The reason for this is that a Chapter 7 bankruptcy releases individual debtors from personal liability for most debts and prevents the creditors owed those debts from taking any collection actions against the debtor. 11 U.S.C  727

 to read more about life after bankruptcy go to:


Wednesday, May 9, 2012

Bank of America to reduce principal amounts, true or false or how does it affect you?

Bank of America announced yesterday that throughout the summer they will send out approximately 200,000 letters, letting their customers know that it will be possible to reduce their principal amount on the "underwater mortgages" by, as much as, $150,000.00.  Is the statement above true?  Yes, in fact, it is.  However, the real question should be, how does it apply to you and here is your answer. Although, the Bank of America it attempting to comply with the recent settlement agreement, which they have reached with the US Government, there are still loopholes.  Not everyone will qualify for this great deal.  If you are lucky enough to receive a letter from Bank of America this summer, and you have to receive a letter to apply, you will then have to contact Bank of America to see if you qualify.  In order to qualify, you must be underwater, which means your mortgage must be more then what your house is currently worth, you must have stopped paying your mortgage payments by January of 2012 and you must show that you cannot afford to make your current mortgage payments. You will also have to show that if the monthly mortgage payment is reduced, you will be able to afford to pay the reduced amount.  Sounds too good to be true????  Maybe it is.

Tuesday, April 10, 2012

Loan Modifications might work afterall ....

(Reuters) – The Treasury Department said on Friday that the number of active permanent mortgage loan modifications agreed to by banks rose 13,836 during February to 782,609 by the end of the month.

The modifications, which aim to lower monthly payments so that distressed homeowners can avoid foreclosure, were made under the Home Affordable Mortgage Program, or HARP.

It offers incentives to mortgage servicers to rework loans and is one of multiple programs the Obama administration has initiated to try to take some of the pressure of the hard-hit housing sector that continues to be a drag on recovery.

Originally, HAMP was targeted to help 3 million to 4 million homeowners but it has reached only a fraction of that number. It has been widely criticized by Republican lawmakers for not being effective but the administration said earlier this year that it was being extended for one year through 2013.

Wednesday, November 2, 2011

It's time to open your junk mail!!!

Federal Government will be reviewing foreclosures initiated by several banks, including Chase, Citi Bank, Wells Fargo, HSBC and a few others, from January 1, 2009 and December 31, 2010. Between 11/01/2011 and 12/31/2011, homeowners, whose homes were in a foreclosure process during 2009 and 2010, will receive letter and forms from the Federal Government. If you would like the Federal Government to review your loan you will have to fill out the required paperwork and mail it in by April of 2012. Even if you house was sold or auctioned off, or your loan settled, you will still qualify for this program!
Check out:

Friday, October 28, 2011

More on student loans, can I repay them?

Is it really college education really worth it? This is the question being asked by many high school graduates, along with, how will I be able to repay the student loan?
The new Obama initiative, might make it a little easier to make up your mind:


Thursday, October 20, 2011

Are student loans dischargeable in bankruptcy?

This year along, the debt on the student loans has gone out of control. With unemployment on the rise, what are the chances that these kids will repay these student loans in the next 10 years?????
Read this article

So, to answer the question of whether or not the student loans are dischargeable, I will simply say "They are not." Although, that is not completely accurate, it answers correctly the 99% of the questions. However, there is that 1% percent of cases, where student loans might become dischargeable and believe me, you do not want to be in that 1%. To discharge student loans in bankruptcy, one has to show that he or she is suffering such great financial hardship, which will not change at any foreseen time.

Friday, October 7, 2011

So much for loan modification help, most of the money goes unspent.