By Scott Riddle Posted in Bankruptcy Basics,Debt Collection & ForeclosureIn Georgia, the first Tuesday of every month is “Foreclosure Day.” It is the one day a month when home lenders are able to foreclose on homes and other real estate, assuming they have met the other requirements of foreclosure such as notice to the borrowers. Not surprisingly, the busiest day for Bankruptcy filings in… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7,Debt Collection & ForeclosureHome loan modifications have been a really big deal the last few years. The reality, however, is that the number of actual successful modifications is far less than originally “promised” by politicians, lenders and others involved in the process. Tales of lost documents, months-long delays, and then denials abound. Given that, is it necessary or… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Creditor Law,Debt Collection & ForeclosureOne of the most frequently asked questions on the various debt and bankruptcy forums is whether a person is still responsible for debts their former spouse agreed to pay (or was ordered to pay) in a divorce settlement or decree. For example, a Court may divide the debts and order the husband to pay the… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 7,Debt Collection & ForeclosureIn a previous post we discussed in detail the math that applies when a Chapter 7 Trustee is deciding whether or not to sell a house. In short, unless there is significant equity over and above exemptions, rarely will a Trustee be interested in taking a second look at the house. There is simply no… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 7For the past couple of years one of the benefits of being in the 11th Circuit states (Georgia, Florida and Alabama) is that you could strip an unsecured junior lien from a house. These states were the only states in which this was available and it was because a higher court approved it. This all… Continue Reading
By Scott Riddle Posted in Chapter 13,Chapter 7Houses can be great long term investments, or they can drag you into Bankruptcy. They are usually your biggest investment, and your largest debt burden. Some people have a great emotional attachment to their house, as is the home in which they raised a family. As Bankruptcy lawyers, we are frequently asked by clients or… Continue Reading
By Scott Riddle Posted in Chapter 13As discussed in more detail in this post, junior liens may be stripped from a home if they are totally unsecured (i.e., the value of the house is less than the balance owed on senior liens). Typically, Bankruptcy lawyers will file a motion to strip the unsecured junior lien shortly after the case is filed,… Continue Reading
By Scott Riddle Posted in Chapter 13,Chapter 7,Debt Collection & ForeclosureA deficiency claim is a claim by a lender for the balance owed on a loan after a foreclosure or repossession and liquidation of the collateral. For example, if the balance owed on a home loan is $200,000, and a lender forecloses and sells the house for $150,000, the lender has a claim for the… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 11,Chapter 13,Chapter 7,Debt Collection & ForeclosureAlthough many people enter Bankruptcy with a desire to save their home from foreclosure, others are anxious to rid themselves of the property and the debt associated with it. This could be their primary residence or other homes or real estate they own. A problem that occasionally comes up is that the person in Bankruptcy… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7,Debt Collection & ForeclosureOne of the alternatives to foreclosure is a “deed in lieu of foreclosure.” Simply stated, this means that rather than making the lender go through the foreclosure process, the home owner agrees to execute a deed for the property transferring it to the lender. In turn, the lender agrees to accept the deed (and transfer… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 7One of the most common issues that comes up in Bankruptcy cases, primarily Chapter 7 cases, is “reaffirmation.” It is also sometimes one of the most confusing issues. Simply stated, a Reaffirmation Agreement is an agreement between a debtor in a Bankruptcy case and one of their creditors whereby the debtor agrees to repay a… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 7For homeowners in Chapter 7 Bankruptcy cases, the decision of whether or not to reaffirm their home loan is one of the most important decisions that can be made in the case. Please remember this: You do not have to reaffirm your loan(s) to keep your house! We discussed the basics of Reaffirmation Agreements in… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 7In this Blog, we have discussed Reaffirmation Agreements and the reasons why lawyers will almost never recommend reaffirming home loans. However, people who have gone through a Chapter 7 case and wisely chose to not reaffirm their home loan are being told by their lender years later that they cannot modify or refinance their loan… Continue Reading
By Scott Riddle Posted in Chapter 13Yes, it is possible to have too much debt for Chapter 13 but those are unusual cases. Unlike Chapter 7 cases, with no limit on the debt that can be discharged, Chapter 13 does have limits. Congress thought the process may be too cumbersome if an individual comes in with too much debt and they… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7,Debt Collection & ForeclosureMany Bankruptcy cases in Georgia, and other states, are filed to stop a foreclosure of the family home. They are not filed only because of the foreclosure, but the realization that the family home is about to be lost is usually the final straw after a period of financial problems. It is certainly understandable that… Continue Reading
By Scott Riddle Posted in Chapter 13,Chapter 7Homeowners in Bankruptcy typically understand their obligations as far as the home loans go. In a Chapter 7, they typically keep the home and continue making payments, give up the house and get a discharge of the debt or, in rare cases, reaffirm the debt and continue living in the home. These same options are… Continue Reading
By Scott Riddle Posted in Chapter 7In the last several years, home lenders have started telling borrowers that they cannot get a modification of their home loan if they did not reaffirm the loan in their prior Chapter 7 case. The same representatives are apparently telling borrowers that they need to reopen their Chapter 7 case to file a Reaffirmation Agreement. … Continue Reading
By Scott Riddle Posted in Chapter 7In a recent Chapter 7 case, there was a question of what happens when a secured creditor (in this case the secured home lender) does not file a Proof of Claim in the case, or otherwise participate in any way in the case. In fact, in this particular case, the debtor (inaccurately) scheduled the lender’s… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7Update – Lien Stripping is no longer allowed in any Chapter 7 case. In this post about lien stripping, we discussed the significant benefits of “stripping,” or removing, second or third liens from homes when the value of the home is less than the higher priority liens. The ability to strip these wholly unsecured liens… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7One of the more common concepts in Bankruptcy Court, and most other courts, is that if a party does not respond or object to the relief requested by another party, the relief is deemed unopposed. Most commonly, that comes up when a defendant does not timely file an answer to a complaint and a default… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7One of the great benefits of a Chapter 13 case (and, as discussed below, Chapter 7 cases in some states) is the ability to “strip,” or remove, a second or junior lien from your house if the value of the house is less than the outstanding balance of the first, or senior, lien. For example,… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7When people buy a house, they probably consider it the biggest investment of their life to that point. It is probably also their largest debt. For homeowners facing Bankruptcy, the most important question they have in initial meetings with lawyers is whether they will be able to keep their house after they file. One important… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7If you own a house, chances are real good that your home loan is your largest debt – maybe even larger than all your other debts combined. It makes sense that people who have to consider Bankruptcy are very concerned about what will happen to their home. The most common question is whether they will… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13Chapter 13 Bankruptcy is one of the two most common types of Bankruptcy filed by individuals, with the other being Chapter 7. The primary distinguishing factor of Chapter 13 is that individuals pay a portion of their income (their “disposable income“) into a Chapter 13 plan over three to five years. Because of this, people… Continue Reading
