Board Certified Specialist in Bankruptcy
I recently filed a Chapter 11 bankruptcy case to stop a foreclosure that was threatening a well known local church, demonstrating the power of the automatic stay. Chapter 11 is not just for businesses Greater Salem Church was threatened with the loss of its church building. The Chapter 11 filing caused the automatic stay to stop the foreclosure proceeding. This will allow the church membership … [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...]
Beware the "business consultants" and "business advisers" who promise small business owners and sole proprietors that they can take care of debt problems. Over the past few years, we've seen small business owners who fall victim to such scams. Anatomy of a scam Sometimes, small business owners come to us with tremendous business debts and and tell us that they hired an "advisor" or … [Read more...]
I won't weigh in on the remedies prescribed by economist David Rosenberg here, but I salute the intelligence of his agreement with my comparison of our economy to a python that just took on a big meal. If you or your business are struggling financially, consulting with our offices might reveal coping strategies for you until better times emerge. Putting your head in the sand and hoping for … [Read more...]
We hear this question more and more these days, which is a bit like asking your doctor, "My back hurts. What can I do?" Much, much more information is needed in order to put the problem into context. A problem spanning all income brackets We have seen people in all walks of life in our offices asking for advice, including: Well-heeled married couples with household incomes in excess of … [Read more...]
Yesterday General Motors announced second-quarter profits that exceeded expectations and came as G.M. was putting the finishing touches on an initial public stock offering. This is good news from a company forced into Chapter 11 bankruptcy a little more than a year ago. According to Dow Jones Daily Bankruptcy Review, "After recent years of financial distress and bankruptcy filings, … [Read more...]
Firethorne Country Club filed for Chapter 11 in March. In a prime example of the power of the automatic stay, the club's owners bought some time to reorganize before a creditor could seize operations. A 2 p.m. hearing in federal court on was canceled after Firethorne’s owner’s filed the bankruptcy petition just after 1 p.m. How the automatic stay works The automatic stay applies to most … [Read more...]
As my partner, Rick Mitchell, outlined in "Cash for Keys?" walking away from a mortgage obligation is neither simple nor straightforward. As with short sales, 90%+ of our clients have other debts in addition to the mortgage debt that's addressed in a deed in lieu/cash for keys offer and those debts remain after a deed in lieu or other "mortgage fix." For these people, a deed in lieu is at best … [Read more...]
What a great news day for Bank of America when it announced it would offer mortgage-principal forgiveness worth about $3 billion to 45,000 borrowers. The jury is (literally) out on whether it will be an equally good day for homeowners who can't pay their debts. Why it's too soon for troubled homeowners to rejoice When people can't make their mortgage PAYMENT a reduction in principal doesn't do … [Read more...]
Hardly a day goes by without seeing on television, or hearing on the radio, a commercial for "debt consolidation" or "debt settlement" services. Often, the ad includes a statement to the effect that if you owe more than $10,000.00 in credit card debt, you have the "legal right" to settle for less. Further, we frequently see clients who have paid hundreds or even thousands of dollars to a debt … [Read more...]