Board Certified Specialist in Bankruptcy
Some of the best advice a bankruptcy attorney can give is about timing: when to file. In many circumstances, we advise our clients to wait until a date certain to file, and to maintain the status quo until then, which often means dealing with a deluge of creditor and bill collector calls.Just this morning, I e-mailed back and forth with a client who wants and needs to wait until this fall … [Read more...]
Bankruptcy Protection for Developers, Contractors, Subcontractors and Vendors Perhaps because of the stigma of bankruptcy, or desperation to hold on to something they can no longer afford, we see clients who act against their own financial interests. They do things that can’t be undone or mitigated when they finally do file for bankruptcy protection. We see this acutely in the construction … [Read more...]
Each state has different laws on what is recognized as exempt property, that is, property that is out of the reach of creditors (including bankruptcy trustees). Further, there are federal exemptions. We wrote about this extensively and you may find it helpful reading.Here's the kind of question that occasionally comes up when we counsel a married couple about bankruptcy.Q: The exempt … [Read more...]
Did you know that under North Carolina law, one spouse can be liable for the medical expenses incurred in providing necessary medical services to the other spouse? This is true:even where that spouse did not sign a credit application and even where that spouse did not sign or any agreement to be responsible for the billsIntroducing the doctrine of necessaries Thanks to the “doctrine … [Read more...]
Cautious, well-advised borrowers who are in default on a loan obligation are smart not to keep funds on deposit with their lender, in order to avoid the possibility of the lender “sweeping” the account and applying the balance to the obligation.[tip]For example, Betsy Borrower should avoid banking at Charlotte Bank if she’s behind on her Charlotte Bank credit card payments – because … [Read more...]
When we warn clients about the rocky road toward a permanent mortgage modification, and why bankruptcy protection may make more sense for them, they always think THEY will be the one who succeeds. Odds of seeing the Loch Ness Monster are worse, but not by much. Only 35% of applicants have received permanent modifications, and, in our clients’ experience, the permanent modification sometimes … [Read more...]
More news on mortgage modification trends.The WSJ reports that borrowers who receive a permanent mortgage modification still have lots of other debt. The median ratio of total debt payments to pretax income stands at 63.5%. This means 20% of borrowers (or more) with permanent modifications are likely to re-default, primarily because of those high debt levels.If you have significant … [Read more...]
We've had a few new potential clients who've contacted us recently, wanting to talk about "strategic default."Strategic default is the term used to describe a property owner's decision to stop making mortgage payments and otherwise default on his or her obligations to the lender, despite having the ability to afford it.In our law practice, it is rare to meet and work with clients who have … [Read more...]
On April 15 of this year The Private Student Loan Bankruptcy Fairness Act of 2010 was introduced to the House of Representatives calling for certain student loans to be eligible for discharge under bankruptcy.Time will tell whether the Act becomes law; if it does, it is likely to undergo substantial revisions prior to passage. Student loans are not dischargeable Under the current law, … [Read more...]
Did you file for an extension on your income taxes? If you did so because you owe the government more than you can afford to pay, USAToday ran a good article on how to proceed. The best advice may be in this paragraph about installment agreements: You'll have to pay interest on the unpaid amount at a rate that's adjusted quarterly. The rate for the first quarter of 2010 is 4%, which is lower … [Read more...]