Board Certified Specialist in Bankruptcy
Mortgage modifications are rare. Modifications for second mortgages present challenges of their own. Clients who are in financial difficulty are well advised to consider a Chapter 13 bankruptcy case as an option when they are current on their first mortgage but are not paying, in full and on time each month, their second mortgage (including a home equity loan or other debt secured by the … [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...]
A recent economic report focused on the outlook for small businesses. It highlighted several sectors that are important in the Charlotte region. ...cost and pricing pressures will need to be managed differently depending upon which industry a small business operates. Summarizing these differences for several key industries:The construction industry will face higher costs combined with lower … [Read more...]
Most of our clients would like to pay all their creditors in full. Even if it takes a long time.The problem is that creditors aren't willing to wait as long as necessary to receive payment in full. This is where Chapter 13 bankruptcy comes in. Those who file for Chapter 13 protection will end up paying all or part of their debts in a court-approved and -monitored process. Consider the … [Read more...]
We understand that North Carolina House Judiciary Subcommittee A has scheduled a February 9, 2011 meeting to discuss House Bill 30, version 1, which is a proposal to institute wage garnishment for unpaid judgments. Here's the text of the bill, in its form as of 2/8/11.This proposed act becomes effective October 1, 2011, and applies to civil actions filed on or after that date. However, I … [Read more...]
People who can least afford to lose money are too frequently targeted by con artists. This video interview (below) with a Better Business Bureau executive highlights some of the prevalent scams that prey on people who are in financial difficulty.Our advice is if you are looking for employment and a company asks you to pay up front for ANYTHING, be wary. Call the Better Business Bureau in … [Read more...]
Sure, your commercial bank is FDIC insured. Does that give you any peace of mind when you're trying to renegotiate your loan or line of credit?It shouldn't. We are aware from our clients that when the FDIC becomes involved, it’s ever so much more difficult – if not impossible – to get anywhere on a forbearance, modification, refinance, or other issues affecting commercial … [Read more...]
Sometimes when we tell prospective clients they are better off declaring bankruptcy than hoping for a mortgage modification they believe we're giving self-serving advice. Scroll to the bottom of this post for a comprehensive story from PBS's NewsHour on the modification debacle. Unemployment is the culprit Until employment improves, the housing situation will not improve. Most of the people we … [Read more...]
This week a WSJ article quoted the head of the NY Federal Reserve Bank addressed, saying “the Federal Reserve actively encourages efforts to find viable alternatives to foreclosure, like loan modifications, or deeds in lieu.” Let's take a look at each of these alternatives. How about a modification? If you CAN get a modification, and if the modification allows you sufficient room to pay … [Read more...]
If you're one of the (few) business owners who has managed to keep your financial head above water in this economy, here are some tips for making more headway with your credit worthiness. These tips, in particular, will help you navigate a downturn more easily:BNET says: Separate business and personal accounts. Log and submit all business payment activity under accounts that are exclusively … [Read more...]