Archive for Bankruptcy Law Updates

Bankruptcy Reform Contributed to Foreclosure Crisis

According to a WSJ report, Wenli Li of the Federal Reserve Bank of Philadelphia made some strong arguments regarding repealing the bankruptcy laws.  She notes of the serious consequences that arose from the tightening of the federal bankruptcy laws in 2005 that contributed to a significant increase in home loan defaults.  The study concluded that [...]

Major Provisions of House Mortgage Bankruptcy Bill

The House of Representative’s housing rescue plan includes a controversial measure backed by President Obama to let bankruptcy judges rewrite mortgages to reduce monthly payments for debt-strapped homeowners. It also contains other loan modification measures to stem the tide of foreclosures and keep credit flowing. Here are the major provisions:
 
_ Allow bankruptcy judges to lower [...]

Bankruptcy Law Being Modified

This new bankruptcy law measure could give bankruptcy judges more power to modify primary home mortgages. Congress is poised to give bankruptcy judges more power to modify primary home mortgages in an attempt to halt the foreclosure crisis, a move Democrats and housing advocates have been pushing for two years in the face of stiff [...]

Most Mortgage Servicing Giants Agree To Foreclosure Prevention Plan

Two-thirds of mortgage servicers have agreed to implement the foreclosure-mitigation policies outlined by Treasury Secretary Timothy Geithner last week, a top Senate Democrat said Wednesday. According to a senior financial-industry lobbyist, this includes the four-largest national mortgage servicers: Bank of America Corp., Citigroup Inc., J.P. Morgan Chase & Co. and Wells Fargo & Co.
 
Senator Charles [...]

Bloomberg Examines Consumer Debt Relief

Many people believe that bankruptcy is a four letter word, but if you’re drowning in debt, it may offer you the chance you need to regain your financial footing. Here you’ll learn exactly what bankruptcy is and how it affects your life. 

Our debt relief specialists will review your financial situation and then quickly provide [...]

Chapter 7 Bankruptcy Exemptions

Most American consumers believe that once you file for bankruptcy you will lose everything. In fact, most people do not know most people are able to keep most of their personal items, their cars, and even their homes. In California, if you qualify as a Chapter 7 bankruptcy, there are two exemptions that you can [...]

Bankruptcy Laws Regarding Chapter 7 Means Test

It is inevitable if you are considering filing bankruptcy that you will hear about the Means Test. Before the bankruptcy laws were changed, a person who wanted to file for bankruptcy could file for a Chapter 7 or Chapter 13 based on their preference. However, under the new laws, the first step in determining if [...]

Bankruptcy Judges Can Modify Mortgage Loans

You know you’re in a tight spot when Bankruptcy Court begins to look like the least bad solution to a pressing economic problem. But the housing foreclosure situation is pretty ugly, so there we are.  Unfortunately, U.S. Bankruptcy Court isn’t allowed to be part of the solution to rising foreclosures, thanks largely to the mortgage [...]

Mortgage Relief Versus Bankruptcy

Loan Modification Plans- Also known as mortgage modification options has quickly become the best option for homeowners facing home foreclosure. Loan workouts are not the only mortgage relief solution for homeowners looking for protection from foreclosure because of delinquent home loan payments. However; it is an option that can save your home while putting you in [...]

Bankruptcy Law Update

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), also known as the new bankruptcy laws, was signed into law a few years ago by former President George W. Bush. These BK laws were designed make it more difficult for consumers and businesses to file under Chapter 7 bankruptcy, under which most debts [...]