Tags: United States

Just Filed My Chapter 7 Case – Now What?

Richard AvatarWith many clients, once the attorney and client have reviewed the bankruptcy petition, schedules, statements, worksheets and calculations, and their case is ready to file, I am often met with a perplexed look and a question:  ”So what happens next?”What happens next is a flurry of deadlines and court control dates, some of which require the client’s participation (such as responding to the Trustee’s requests for additional information), some do not require the client’s participation, and others may require the attorney’s participation, depending on how the case progresses.

Often, the client is overwhelmed with the detail and the numerous dates, and simply wants to know that they will get their discharge in “about four months”. However, some clients with more complex cases appreciate the added detail, which is why we have added a convenient Chapter 7 Timeline to our website.

The new addition allows a client or prospective client to input their Chapter 7 Filing Date and Section 341(a) hearing date (if known), and will output a scaled timeline with the important dates. Links to the relevant portions of the U.S. Bankruptcy Code and the Federal Rules of Bankruptcy Procedure are also included for cross reference at the bottom of the timeline page.

We hope this tool will help clients, prospective clients and attorneys alike better understand and navigate the meticulous and often trap-ridden world of bankruptcy law.

Richard Simpson

770-623-6341 Desk

404-788-4420 Cell

rsimpson05@bellsouth.net

People Helping People info

Click on this link to see video

or Listen to a 4 minute call at 646-222-0327

Check out my web site

http://www.teamgg.com/peoplez.html

People Helping People Presentation

When Uruguay striker Luis Suarez raised his hands to block a sure goal from the opposing Ghana side, he committed a foul and paid the penalty — but Uruguay won the game and Ghana’s World Cup team packed its bags.

Suarez got a red card that removed him from the game and suspended him from the semifinal that Uruguay got to play thanks to his unsportsmanlike conduct. There is no goaltending rule in soccer, and Ghana failed to make the ensuing penalty kick and then lost the overtime penalty shootout.

Suarez and Uruguay earned universal opprobrium, but, hey, all the rules were applied and they won the game. “Truth is, it was worth it,” a grinning Suarez said after the game.

Richard AvatarIn thwarting the extension of unemployment benefits, Senate Republicans are playing with Uruguayan tactics, manipulating the rules in a brazenly unsportsmanlike attempt to win the game at any cost.
AM Report: Jobless benefits spark fierce debate

Jobless benefits are leading to a fierce debate: Do they prompt jobless workers to be pickier in their searches? Or is employment insurance a prudent response to the worst recession in decades?

Using the pernicious filibuster rule, the minority party is breaking with a long tradition of automatically providing federal support in times of high unemployment, imposing further hardships on thousands of families.

It is bad politics, bad economics, and just plain nasty, but Republicans are clearly intent on sabotaging the Obama administration no matter what the cost to individual Americans.

The Republican objections about not wanting to extend unemployment unless it is “funded” because they don’t want enlarge the federal deficit are bogus and hypocritical. They never hesitated to add to the deficit when it was a question of tax cuts for the wealthy, estimated to have cost $2 trillion over six years. The $35.5 billion for the unemployment benefits is negligible compared to that figure.

Sacrificing such a relatively small expenditure on the altar of fiscal rectitude really does turn deficit hawks into deficit terrorists, to use economist Bill Mitchell’s phrase. To insist on this sacrifice when unemployment is at nearly 10% and Treasury yields are at historic lows is truly foul play.

No less an authority than Mark Zandi, the Moody’s economist who was one of John McCain’s economic advisers during his presidential campaign, said it is vital to extend the benefits regardless of the deficit. The risk of a double-dip recession by not extending them more than outweighs any harm done through a short-term blip in the deficit, Zandi said in congressional testimony last week.

The denial of unemployment benefits to hard-pressed Americans is just the latest tactic in the Republican’s scorched earth strategy.

“Paying for it…should not be a precondition for Congress to provide more financial help to unemployed workers, strapped states and municipalities, and small businesses looking to expand,” Zandi told the House Budget Committee. “A larger near-term federal deficit is not an economic problem.”

Congress can offset the expenditure a couple of years from now, “when the economy is in full swing,” said this economist, whom no one has ever accused of pandering to the left.

But the unprecedented denial of unemployment benefits to hard-pressed Americans — make no mistake, children are going hungry as a result — is just the latest tactic in Republicans’ scorched earth strategy designed to maximize their political gain in the November midterm elections.

It’s a cruel and cynical strategy that could well backfire, even though it victimizes some of the weakest and most disenfranchised sectors of the electorate.

The Republicans are evidently counting on the rage of voters hurt by the economy to be targeted at the Democratic majority, but people aren’t that stupid. They know that the Senate Republicans — and the unfathomable Nebraska Democrat Ben Nelson — are the ones who blocked the aid.

Matthew Kaminski of The Wall Street Journal cited the Suarez incident as well as some of the big refereeing gaffes in the World Cup competition as the reason why Americans don’t like soccer — it violates our sense of fair play.

And yet the Republican strategy of winning at any cost — any cost to the American people, any cost to the common weal — is a much greater violation of any sense of fair play, with much graver consequences.

The Netherlands handily defeated Uruguay in the semifinal and his red card was the last action Suarez saw in the contest. If the American sense of fair play kicks in this November, a number of Republicans may be looking at their own red cards

UNDERWATER HOMEOWNERS AND THE ECONOMY
In a recent report, Mustafa Akcay, of Moody’s Economy.com masterfully outlined the delicate relation between underwater homeowners and the recovery of the US economy.
Moody’s expect about 4 million homeowners to enter foreclosure in 2010 with failed loan modifications further depressing home prices. This drives their call for additional housing rescue programs.
Here are their four reasons why underwater homeowners pose a risk to the US recovery:
1. Negative equity has become an important driver to foreclosures.

2. The number of underwater homeowners, though declining, is still critically high.

3. The Loss of home equity undermines consumer spending and depresses house prices.

4. The US economic expansion will remain fragile as long as the housing market remains vulnerable.

Moody’s Economy.com estimates:
� 14.9 million homeowners, one-third of all mortgage borrowers, owed more than the market value of their homes at the end of 2009.

� This is 1.2 million lower than the peak in Q2 2009.

� More than 9 million homeowners� loan-to-value was above 120% by the end of last year.

� Mortgage outstanding in negative equity at the end of 2009 totaled $2.5 trillion nationwide.

� More than of mortgages outstanding might be at risk of defaulting.

� Total amount of negative equity was $900 billion at the end of last year.

� States with once-hot housing markets have the largest volume of negative equity.

� Underwater homeowners owe $254 billion in negative equity in California and $88 billion in Florida.

� In Nevada, 80% of mortgage loans were under water at the end of 2009, with Arizona and California following close behind.

� By the end of 2009 1.6 million homeowners in California had loan-to-value ratios above 120%, followed by Florida with 1.1 million and Michigan with 560,000.

� Michigan is the only hard hit state that did not experience a housing bubble, job losses brought values down.

Mustafa Akcay summarizes, “Home prices will remain depressed at least until 2012, with some tentative decline in the second half of 2010 and in 2011, keeping the number of negative equity homeowners high for some time.”
“The downside risk for strategic defaults is that lenders more aggressively seek repayment. In that case, underwater borrowers who are able to service their mortgage debt would be discouraged from defaulting, and strategic defaults would constitute a smaller share of all foreclosures.�”

Key Economic Reports Released This Week

RELEASE
DATE
ECONOMIC
INDICATORS
RELEASED
BY
CONSENSUS Wt. INFLUENCE ON
INTEREST RATES
Tue 06/01
10:00 am et
ISM (NAPM) Mfg
for May ‘10
National Association of Purchasing Mgt. 60.0%
** �If above consensus
�If below consensus
Tue 06/01
10:00 am et
Construction Spending
for April ‘10
Bureau of the Census
Dept. of Commerce
-0.8%
** �If above consensus
�If below consensus
Wed 06/02
7:00 am et
MBA Mtg Apps Survey
for week ending 05/28
Mortgage Bankers Association of America N/A
* Undetermined
Wed 06/02
10:00 am et
Pending Home Sales
for April ‘10
National Association
of Realtors
8.0%
** If above consensus
If below consensus
Wed 06/02
Motor Vehicle Sales
for May ‘10
Automobile Manufacturers Vechiles 11.4M
** Undetermined
Thu 06/03
8:15 am et
ADP Employment Report
for May ‘10
Automatic Data Proc &
Macroeconomic Advisors
100K
** If above consensus
If below consensus
Thu 06/03
8:30 am et
Jobless Claims
for week ending 05/29
Bur. of Labor Statistics
Department of Labor
445K
* �If above consensus
�If below consensus
Thu 06/03
8:30 am et
Productivity & Costs
Q1 ‘10 revised
Labor Department Prod 4.2%
Costs -2.2%
** �If above consensus
�If below consensus
Thu 06/03
10:00 am et
Factory Orders
for April ‘10
Bureau of the Census
Dept. of Commerce
1.5%
* �If above consensus
�If below consensus
Thu 06/03
10:00 am et
ISM Index (Non-Mfg)
for May ‘10
National Association of Purchasing Mgt. 56.0%
** �If above consensus
�If below consensus
Fri 06/04
8:30 am et
Employment Situation
for May ‘10
Bur. of Labor Statistics
Department of Labor
Payrolls 600k
Umemp 9.8%
**** �If above consensus
�If below consensus

HOPE NOW reported twice as many homeowners received a modification from the private sector than from servicers participating under the government-led Home Affordable Modification Program (HAMP).

In February, 95,586 homeowners received a modification from the HOPE NOW alliance of mortgage servicers, investors, insurers and non-profit counselors. HAMP modifications went to 52,905 borrowers in the same month for a total of 148,000 modifications.

The US Treasury Department launched HAMP in March 2009 to provide incentives to servicers for the modification of loans on the verge of foreclosure. After a year of the program, servicers provided more than 170,000 permanent modifications.

Roughly 78% of the HOPE NOW modifications completed in February received a reduction of principal and interest.

“Our data shows that mortgage servicers are continuing a strong effort on proprietary and HAMP modifications in the first two months of 2010,” said Faith Schwartz, executive director of HOPE NOW, an alliance of agents, servicers and investors in the mortgage industry.

In order to boost HAMP performance, the Treasury released guidelines that encourage principal write-downs.

Call Richard Simpson for help to Avoid Mortgage Foreclosure today.

770-623-6341 / rsimpson@helptoavoidmortgageforeclosure.com

On Friday, March 26, 2010, as part of its ongoing commitment to continuously improve housing relief efforts, the Obama Administration announced adjustments to the Home Affordable Modification Program (HAMP) and to the Federal Housing Administration (FHA) programs.  These program adjustments will better assist responsible homeowners who have been affected by the economic crisis through no fault of their own.  The program modifications will expand flexibility for mortgage servicers and originators to assist more unemployed homeowners and to help more people who owe more on their mortgage than their home is worth because of their local markets saw large declines in home values.  These changes will help the Administration meet its goal of stabilizing housing markets by offering a second chance to up to 3 – 4 million struggling homeowners through the end of 2012.  Costs will be shared between the private sector and the Federal Government; the Federal cost of these changes will be funded through the $50 billion allocation for housing programs under the Troubled Asset Relief Program (TARP).

 Improvements to HAMP

  1. Temporary assistance for unemployed homeowners while they search for re-employment.
  2. Requires servicers to consider alternative principal; write-down approach and increased principal write-down incentives.
  3. Improvements to reach more borrowers with HAMP modifications.
  4. Helping homeowners move to more affordable housing.

FHA Refinance Option for underwater loans – encouraging responsible restructuring and refinancing

  1. Voluntary option encourages lenders and borrower to work together, when appropriate. to restructure underwater mortgages. 
  2. Incentives for principal write-downs on second liens.
  3. Transparency on impact of these refinancings
  4. TARP funded support to expand impact of refinance option.

HUD and the Department of the Treasury will be providing a conference call on these two new efforts to housing counseling agencies in the near future.  Another email will be sent with the date, time and any instructions necessary to access this session.

To read the press release, please go to ://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-058 .  The release contains links to Frequently Asked Questions and other information pertaining to these program modifications.

 For more information call Richard Simpson 770-623-6341

rsimpson@helptoavoidmortgageforeclosure.com

The US Department of Housing and Urban Development (HUD) launched an initiative to review Federal Housing Administration (FHA) approved mortgage lenders with high foreclosure rates.

In a conference call held Jan. 12, Kenneth Donohue, the HUD inspector general, and David Stevens, the FHA commissioner, announced an initiative focusing on mortgage companies holding “significant” claim rates for the Federal Housing Administration mortgage insurance program.

HUD Office of Inspector General (OIG) served subpeonas to the offices of 15 mortgage companies across the country to gather documents and data on failed loans paid-out by the FHA mortgage insurance fund. The institutions had at least 1,000 FHA mortgages, were spread across the country and ranged in size.

“We will conduct an investigation if appropriate to determine who is responsible and recommend that appropriate action be taken against individuals and corporations. My office identified these direct-endorsement companies from an analysis of loan data focusing on companies with a large number of claims, loan underwriting volume, a high ratio of default,” Donohue said in the conference.

Alarmed by the amount of claims against the FHA insurance fun by a number of poor performing companies, Stevens prompted the initiation.

“We are taking risk management extremely seriously,” Stevens said in the press release. “In addition to the policy changes we are implementing and additional changes we plan to announce later this month, we need to hold FHA lenders accountable for the high rates of defaults and claims against FHA. The Inspector General’s initiative will help us determine whether there is fraud and better manage risk in the long run.”

Possible actions the HUD OIG could take are: audits, investigations, inspections and evaluations.

“The FHA market share has skyrocketed,” Donohue said. “Our job is oversight.  We work for the American taxpayer.  Each loan on this list will be thoroughly examined and we will track down the reasons why it failed.  Once we determine the causes, we will look to see whether there is a need for further review or remedial action.  We want to send a message to the industry that as the mortgage landscape has shifted we are watching very carefully and that we are poised to take action against bad performers.”

The companies are:

  • First Tennessee Bank, Memphis, TN
  • Alethes, Lakeway, TX
  • Security Atlantic Mortgage Co., Edison, NJ
  • Pine State Mortgage Corporation, Atlanta, GA
  • Birmingham Bancorp Mortgage Corporation, West Bloomfield, MI
  • Alacrity Financial Services, Southlake, TX
  • Assurity Financial Services, Englewood, CO
  • D and R Mortgage Corporation, Farmington, MI
  • Webster Bank, Cheshire, CT
  • Mac-Clair Mortgage Corporation, Flint, MI
  • Americare Investment Group, Inc., Arlington, TX
  • 1st Advantage Mortgage, Lombard, IL
  • American Sterling Bank, Independence, MO
  • Sterling National Mortgage Company, Great Neck, NY
  • Dell Franklin Financial, Columbia, MD

Write to Jon Prior.

Reblog this post [with Zemanta]

How Can I Get Out of an Apartment Lease When I File Bankruptcy?

My office colleague  is in the process of filing a Chapter 7 bankruptcy for a young woman.   Our client  currently lives in a rented apartment, and her lease runs through July of this year.    Our client would like to find a cheaper place to live, however, she is concerned that she may not be eligible to sign a new lease after filing for bankruptcy.  Our client asked for our advice about what to do.

First, we advised out client that her bankruptcy filing would not prevent her from finding a new apartment later this year and signing a lease.  However, the the months immediately following a bankruptcy are a time when a debtor’s credit is most damaged – it is very possible that our client would have a difficult time finding a landlord who would lease her an apartment right after the bankruptcy.

A better option in cases like this would be for our client to to sign a new lease prior to filing bankruptcy and reject the current lease in the bankruptcy filing.

Under the bankruptcy law a lease is considered an “executory contract,” meaning that our client still has on-going obligations to perform under the contract.  In this case, our client has the contractual obligation to pay her lease.  Other examples of executory contracts are vehicle leases, health club memberships and cell phone contracts.

The bankruptcy law allows a debtor to “reject” or “assume” an executory contract.  If the contract is assumed, the debtor remains obligated under the terms of the contract.  If the contract is rejected, the debtor’s obligations terminated.

In our client’s case if she rejects her old apartment lease, the law deems the lease contract as breached as of the day before the bankruptcy filing. The landlord is entitled to repossess the apartment in accordance with state law. Any damages that the landlord might suffer are treated as pre-petition general unsecured claims. Per the Bankruptcy Code, the rejection damages that the landlord is entitled to are limited to either 15 percent of the balance of the rent that is left in the lease or the rent due for one year from the filing date or the date the apartment was surrendered, whichever is earlier.   Fortunately the debtor can include any outstanding rent in her petition and wipe out the debt along with other unsecured debt.

Susan’s client took our advice and has already signed a new lease on an apartment and she will be rejecting her current lease in the Chapter 7, including all future rent and penalties incurred for not fulfilling the lease’s terms

Reblog this post [with Zemanta]

Wishing you a Great 2010!

Please share your Favorite Motivational Quote.

Mine is:  ” A walk of 1000 miles starts with the first step”  Ghandi


Richard Simpson

Desk:  770-623-6341  / Cell:    404-788-4420
See me at: http://atlantahomesaleshelp.com
My web site: http://helptoavoidmortgageforeclosure.com

Reblog this post [with Zemanta]

Page 1 of 212»