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Miami Personal Bankruptcy Lawyer Jordan E. Bublick has over 25 years of experience in filing chapter 13 and chapter 7 bankruptcy cases. His office is centrally located in Miami at 1221 Brickell Avenue, 9th Fl., Miami and may be reached at (305) 891-4055. www.bublicklaw.com
It is reported in the media every day that many Miami and Broward homeowners are "upside down" or "underwater" with their homes. That is, they owe more on their mortgages than the value of the homes. Many homeowners financed their home on an "80-20" basis. That is, they borrowed 100% of the value of the home, structuring 80% of the borrowed sum into a first priority mortgage and 20% of the borrowed sum into a second priority mortgage. In many or most cases, the value of the home has fallen at least 20-30% at present and some experts expect a further substantial decline.
What is the Miami or Broward homeowner to do? The recently passed $700 billion bailout package did not include a proposed bankruptcy code amendment that would have given the bankruptcy courts the power to modify and reduce mortgages on principal residences and reduce them to the fair market value of the home that serves as collateral. It also appears that the various well publicized federal programs have not been widely used for a variety of reasons. Many homeowners also report that they get the "runaround" when they attempt to contact their mortgage company to arrange a modification or workout. Many homeowners find that they are unable to modify their first priority mortgage due to the last of cooperation by the second priority mortgage holder.
The distressed homeowner should be aware that Chapter 13 bankruptcy does offers various possible opportunities. First, if the value of the home has fallen so substantially that there is no equity to secure the second priority mortgage, this second mortgage may be "avoided" and deemed an unsecured claim. Unsecured claims are usually only paid a percentage on the dollar in Chapter 13, typically about 5 - 20%, and the unpaid balance discharged. This would present the homeowner the opportunity to negotiate a modification of the first mortgage without the necessity of placating the second priority mortgage holder.
Another benefit of filing for Chapter 13 bankruptcy is that it may present an opportunity to get the attention of the first priority mortgage company and negotiate a modification of the mortgage, including a reduction of the interest rate or principal balance. It may also present an opportunity to stop the foreclosure and give one enough time to review and obtain relief under any of the new federal programs being put into effect for distressed homeowners.
Jordan E. Bublick is a Miami Personal Bankruptcy Lawyer with over 25 years of experience in filing chapter 13 and chapter 7 bankruptcies. Miami Personal Bankruptcy Lawyer Jordan E. Bublick has filed over 8,000 chapter 13 and chapter 7 cases.
Miami Personal Bankruptcy Lawyer Jordan E. Bublick has over 25 years of experience in filing chapter 13 and chapter 7 bankruptcy cases. His office is centrally located in Miami at 1221 Brickell Avenue, 9th Fl., Miami and may be reached at (305) 891-4055. www.bublicklaw.com
It is reported in the media every day that many Miami and Broward homeowners are "upside down" or "underwater" with their homes. That is, they owe more on their mortgages than the value of the homes. Many homeowners financed their home on an "80-20" basis. That is, they borrowed 100% of the value of the home, structuring 80% of the borrowed sum into a first priority mortgage and 20% of the borrowed sum into a second priority mortgage. In many or most cases, the value of the home has fallen at least 20-30% at present and some experts expect a further substantial decline.
What is the Miami or Broward homeowner to do? The recently passed $700 billion bailout package did not include a proposed bankruptcy code amendment that would have given the bankruptcy courts the power to modify and reduce mortgages on principal residences and reduce them to the fair market value of the home that serves as collateral. It also appears that the various well publicized federal programs have not been widely used for a variety of reasons. Many homeowners also report that they get the "runaround" when they attempt to contact their mortgage company to arrange a modification or workout. Many homeowners find that they are unable to modify their first priority mortgage due to the last of cooperation by the second priority mortgage holder.
The distressed homeowner should be aware that Chapter 13 bankruptcy does offers various possible opportunities. First, if the value of the home has fallen so substantially that there is no equity to secure the second priority mortgage, this second mortgage may be "avoided" and deemed an unsecured claim. Unsecured claims are usually only paid a percentage on the dollar in Chapter 13, typically about 5 - 20%, and the unpaid balance discharged. This would present the homeowner the opportunity to negotiate a modification of the first mortgage without the necessity of placating the second priority mortgage holder.
Another benefit of filing for Chapter 13 bankruptcy is that it may present an opportunity to get the attention of the first priority mortgage company and negotiate a modification of the mortgage, including a reduction of the interest rate or principal balance. It may also present an opportunity to stop the foreclosure and give one enough time to review and obtain relief under any of the new federal programs being put into effect for distressed homeowners.
Jordan E. Bublick is a Miami Personal Bankruptcy Lawyer with over 25 years of experience in filing chapter 13 and chapter 7 bankruptcies. Miami Personal Bankruptcy Lawyer Jordan E. Bublick has filed over 8,000 chapter 13 and chapter 7 cases.
Miami Personal Bankruptcy Lawyer Jordan E. Bublick has over 25 years of experience in filing Chapter 13 and Chapter 7 bankruptcy cases. His office is centrally located in Miami at 1221 Brickell Avenue, 9th Fl., Miami and may be reached at (305) 891-4055. www.bublicklaw.com
The Bankruptcy Court in the case of In re Mahony, Case No. 06-60347 (WD Missouri 2007)(Federman, J.) held that contingent and unliquidated personal injury claims are not exempt in bankruptcy in Missiouri. Property exempt must be pursuant to statute. State case law that contingent claims cannot be garnished or assigned and are exempt from attachment and execution is not sufficient. In re Benn, 491 F.3d 811 (8th Cir. 2007). Overruled In re Mitchell, 73 B.R. 93 (Bankr. E.D. Mo. 1987).Jordan E. Bublick is a Miami Personal Bankruptcy Lawyer with over 25 years of experience in filing chapter 13 and chapter 7 bankruptcies. Miami Personal Bankruptcy Lawyer Jordan E. Bublick has filed over 8,000 chapter 13 and chapter 7 cases.
Miami Personal Bankruptcy Lawyer Jordan E. Bublick has over 25 years of experience in filing Chapter 13 and Chapter 7 bankruptcy cases. His office is centrally located in Miami at 1221 Brickell Avenue, 9th Fl., Miami and may be reached at (305) 891-4055. www.bublicklaw.com
The Bankruptcy Court in the case of In re Mahony, Case No. 06-60347 (WD Missouri 2007)(Federman, J.) held that contingent and unliquidated personal injury claims are not exempt in bankruptcy in Missiouri. Property exempt must be pursuant to statute. State case law that contingent claims cannot be garnished or assigned and are exempt from attachment and execution is not sufficient. In re Benn, 491 F.3d 811 (8th Cir. 2007). Overruled In re Mitchell, 73 B.R. 93 (Bankr. E.D. Mo. 1987).Jordan E. Bublick is a Miami Personal Bankruptcy Lawyer with over 25 years of experience in filing chapter 13 and chapter 7 bankruptcies. Miami Personal Bankruptcy Lawyer Jordan E. Bublick has filed over 8,000 chapter 13 and chapter 7 cases.
Miami Personal Bankruptcy Lawyer Jordan E. Bublick has over 25 years of experience in filing Chapter 13 and Chapter 7 bankruptcy cases. His office is centrally located in Miami at 1221 Brickell Avenue, 9th Fl., Miami and may be reached at (305) 891-4055. www.bublicklaw.com
In the case of In re Short, 2008 WL 2020200 (Bankr.D.Neb.) a bankruptcy case was dismissed due to "totality of the circumstances" although it passed means test. Jordan E. Bublick is a Miami Personal Bankruptcy Lawyer with over 25 years of experience in filing chapter 13 and chapter 7 bankruptcies. Miami Personal Bankruptcy Lawyer Jordan E. Bublick has filed over 8,000 chapter 13 and chapter 7 cases.
Miami Personal Bankruptcy Lawyer Jordan E. Bublick has over 25 years of experience in filing Chapter 13 and Chapter 7 bankruptcy cases. His office is centrally located in Miami at 1221 Brickell Avenue, 9th Fl., Miami and may be reached at (305) 891-4055. www.bublicklaw.com
In the case of In re Short, 2008 WL 2020200 (Bankr.D.Neb.) a bankruptcy case was dismissed due to "totality of the circumstances" although it passed means test. Jordan E. Bublick is a Miami Personal Bankruptcy Lawyer with over 25 years of experience in filing chapter 13 and chapter 7 bankruptcies. Miami Personal Bankruptcy Lawyer Jordan E. Bublick has filed over 8,000 chapter 13 and chapter 7 cases.
Miami Personal Bankruptcy Attorney Jordan E. Bublick has over 25 years of experience in filing Chapter 13 and Chapter 7 bankruptcy cases. His office is centrally located in Miami at 1221 Brickell Avenue, 9th Fl., Miami and may be reached at (305) 891-4055. www.bublicklaw.com
Since the enactment of section 222.25(4), Florida Statutes (effective July 1, 2007) there has arisen the issue of whether this section's new $4,000.00 personal property exemption (which is available to those that do not "claim or receive the benefits of a homestead exemption" under Art. X, Sec. 4 of the Florida Constitution) is in addition to the $1,000.00 personal property exemption of Art. X, Sec. 4(a)(2) or whether it includes it. The case of In re Bezares, Case No. 07-12820 (Bankr.M.D.Fla. October 23, 2007)(Paskay, J.) addressed this issue and concluded that the new $4,000.00 of personal property exemption provided by section 222.25(4), Florida Statues is in addition to the $l,000.00 constitutional personal property exemption.
In this case, the chapter 7 trustee argued that the maximum allowable personal property exemption claim is $4,000.00. The trustee cited the legislative history of section 222.25(4), Fla.Stat. which supported the trustee's position The debtor argued that the the $4,000.00 exemption was in addition to the $1,000.00 constitutional personal property exemption based on the well established principle that the legislature has no power to abrogate, alter or amend any provision of the Constitution.
The Court agreed with the argument of the Debtor and stated that the only method by which the Florida Constitution can be altered or amended is by virtue of Article XI, Section 5 of the Florida Constitution. A statutory amendment of the constitutional $1,000.00 personal property exemption would be a violation of the Florida Constitution. Based on this argument, the Court held that section 222.25(4), Fla. Stat. added $4,000.00 to the previous $1,000.00 exemption to make a total of $5,000.00 of personal property exemption for those who not "claim or receive the benefits of a homestead exemption."Jordan E. Bublick is a Miami Personal Bankruptcy Lawyer with over 25 years of experience in filing chapter 13 and chapter 7 bankruptcies. Miami Personal Bankruptcy Lawyer Jordan E. Bublick has filed over 8,000 chapter 13 and chapter 7 cases.
Miami Personal Bankruptcy Attorney Jordan E. Bublick has over 25 years of experience in filing Chapter 13 and Chapter 7 bankruptcy cases. His office is centrally located in Miami at 1221 Brickell Avenue, 9th Fl., Miami and may be reached at (305) 891-4055. www.bublicklaw.com
Since the enactment of section 222.25(4), Florida Statutes (effective July 1, 2007) there has arisen the issue of whether this section's new $4,000.00 personal property exemption (which is available to those that do not "claim or receive the benefits of a homestead exemption" under Art. X, Sec. 4 of the Florida Constitution) is in addition to the $1,000.00 personal property exemption of Art. X, Sec. 4(a)(2) or whether it includes it. The case of In re Bezares, Case No. 07-12820 (Bankr.M.D.Fla. October 23, 2007)(Paskay, J.) addressed this issue and concluded that the new $4,000.00 of personal property exemption provided by section 222.25(4), Florida Statues is in addition to the $l,000.00 constitutional personal property exemption.
In this case, the chapter 7 trustee argued that the maximum allowable personal property exemption claim is $4,000.00. The trustee cited the legislative history of section 222.25(4), Fla.Stat. which supported the trustee's position The debtor argued that the the $4,000.00 exemption was in addition to the $1,000.00 constitutional personal property exemption based on the well established principle that the legislature has no power to abrogate, alter or amend any provision of the Constitution.
The Court agreed with the argument of the Debtor and stated that the only method by which the Florida Constitution can be altered or amended is by virtue of Article XI, Section 5 of the Florida Constitution. A statutory amendment of the constitutional $1,000.00 personal property exemption would be a violation of the Florida Constitution. Based on this argument, the Court held that section 222.25(4), Fla. Stat. added $4,000.00 to the previous $1,000.00 exemption to make a total of $5,000.00 of personal property exemption for those who not "claim or receive the benefits of a homestead exemption."Jordan E. Bublick is a Miami Personal Bankruptcy Lawyer with over 25 years of experience in filing chapter 13 and chapter 7 bankruptcies. Miami Personal Bankruptcy Lawyer Jordan E. Bublick has filed over 8,000 chapter 13 and chapter 7 cases.
In re Newcomb Print Communications, Inc., Case No. 12-08042 (Bankr. W.D. Mich., Sept. 6, 2013).
When a debtor files a case under Chapter 11 and retains legal counsel, another person or entity may fund the debtor’s retainer. But even when the debtor is not the source of the funds, the retainer is property of the bankruptcy estate – which is particularly important if the case later converts to Chapter 7. Read More ›
Tags: Chapter 11, Chapter 7
Oregon and Washington homeowners looking to avoid bankruptcy or just lower their monthly expenses through mortgage refi will now see the application process slow to a stand still. For consumers trying to avoid foreclosure through modification or lower their expenses in Chapter 13 Bankruptcy, this is horrible news. Beyond furloughs, lost wages and diminishing global clout, the shutdown is beginning to have consequences for consumers that no one really anticipated.
Tens of thousands of home refinance seekers nationwide will now be unable to get approvals because of the government shutdown, potentially undercutting the nation’s rebounding housing market.Without the requisite documentation from the FHA, IRS and the Social Security Administration, lenders are now less willing to make loans; that is if they can make them at all. For example, lenders rely on the IRS to confirm borrowers’ income and on Social Security to confirm their identity.
Every day that government offices stay closed will delay an increasing percentage of mortgage and interest-rate approvals. Under normal circumstances roughly 18,000 refinances are completed across the country every day. Picture the backlog and slowdown even after the shutdown ends. Who knows how many bankruptcy petitions will be filed in the Seattle and Portland Bankruptcy Courts as a result of the mortgage refi option being taken off the table? With attention in Congress now shifting to an Oct. 17 debt-ceiling deadline, there is no immediate end in sight to the government shutdown.
The problem is that approval of mortgage applications requires several interactions with the federal government and lenders have become much more meticulous about following federal rules after the housing crisis that began in 2007, and are now more thorough in verifying the information on loan applications. Furloughs at the IRS that could have the widest impact. Lenders routinely file a form with the IRS asking for a copy of a borrower’s tax returns. The purpose is to make sure that the buyer provided accurate income information.
But the IRS sent most of its employees home last week when Congress failed to agree on a budget, including those that process what are called tax-return transcripts. Lenders also rely on the Social Security agency to verify borrowers’ Social Security numbers as a way of confirming their identity. These checks are done automatically, but the Web site that provides the information is down.
Please contact our offices if you are attempting to avoid foreclosure through modification or use a refi to cope with other debts. The time is now to explore other options.
The original post is titled Shutdown and Mortgage Modification in Oregon and Washington , and it came from Oregon Bankruptcy Lawyer | Portland, Salem, and Vancouver, Wa .
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