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Chapter 7 personal bankruptcy is generally used to discharge your dischargeable debt including credit cards, medical bills, and unsecured loans.
Chapter 13 bankruptcy is generally used to propose a plan to reorganize your financial affairs while under the protection of the Bankruptcy Court. Chapter 13 bankruptcy is often used to stop a mortgage foreclosure and to catch the payments up-to-date.
Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
For years companies, including law firms, have been preying on naive homeowners alleging to have the “secret pill” to save their home. These thieves promise to save the home by “making” the lender work with the homeowner. In most cases the con artists are in the business for the sole purpose of stealing the homeowner’s hard earned money, or, worse yet, their home.
One by one these unscrupulous parties are being brought to justice. For example: here is a posting from the Consumer Financial Protection Bureau and the State of Florida: they were “granted a final judgment against the Hoffman Law Group and corporate affiliates accused of using deceptive marketing practices and scamming distressed homeowners into paying illegal advance fees. Working together, five companies tricked consumers into paying millions of dollars in illegal upfront fees to join frivolous lawsuits that the companies falsely claimed would pressure banks to modify their loans or provide foreclosure relief. The court found the corporate defendants liable for $11,730,579 – the full amount of illegal fees paid by consumers – and ordered them to pay a $10 million civil penalty, in addition to penalties to the State of Florida.”
“These companies preyed on vulnerable consumers who were trying to save their homes from foreclosure,” said CFPB Director Richard Cordray. “The false promises made by these companies lured struggling homeowners into scams that led to greater financial hardship. We are working to protect consumers from illegal predatory practices by holding bad actors accountable for their actions.”
Read more…
The post CFPB & FLORIDA AG OBTAIN $27.7 M JUDGMENT AGAINST FORECLOSURE RELIEF SCAM COMPANIES appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
.jpg "Florida Homestead Exemption in Three Different Contexts")
The concept of a Florida "homestead" arises in three different contexts:
- Taxation exemption per Art. VII, Section 6, Fla. Constit.
- Forced sale exemption before and at death - per Art. X, Section 4(a)-(b), Fla. Const. and
- Restrictions on devise and alienation, Art. X, Section 4(c), Fla. Const.
The definition of "homestead" property for Article VII, section 6 purposes (taxation) is not the same as Article X, section 4 (forced sale and devise and alienation).
Neither the Florida Legislature nor the Florida Constitution provide a definition of what is homestead property for purposes of Art. X, Section 4 (a)(forced sale and devise and alienation). Florida courts generally hold that the following requirements must be satisfied for property to be determined as homestead property:
- the property must be owned by a "natural person"
- the person claiming the exemption must be a Florida resident who establishes that he intends to make the real property his permanent residence
- the person claiming the exemption must establish that he is the owner of the property and
- the property claimed as the homestead must satisfy the size and contiguity requirements of the constitution.
The Florida Constitution does not limit the types of estates that are eligible for homestead status. Therefore, the exemption may generally attach to any estate in land whether it is a freehold or lesser estate. A life estate has been found to be among the property interests eligible for homestead status. Florida court have held that real property held in trust can be impressed with the character of homestead, including revocable and irrevocable trusts.Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
The concept of a Florida "homestead" arises in three different contexts:
- Taxation exemption per Art. VII, Section 6, Fla. Constit.
- Forced sale exemption before and at death - per Art. X, Section 4(a)-(b), Fla. Const. and
- Restrictions on devise and alienation, Art. X, Section 4(c), Fla. Const.
The definition of "homestead" property for Article VII, section 6 purposes (taxation) is not the same as Article X, section 4 (forced sale and devise and alienation).
Neither the Florida Legislature nor the Florida Constitution provide a definition of what is homestead property for purposes of Art. X, Section 4 (a)(forced sale and devise and alienation). Florida courts generally hold that the following requirements must be satisfied for property to be determined as homestead property:
- the property must be owned by a "natural person"
- the person claiming the exemption must be a Florida resident who establishes that he intends to make the real property his permanent residence
- the person claiming the exemption must establish that he is the owner of the property and
- the property claimed as the homestead must satisfy the size and contiguity requirements of the constitution.
The Florida Constitution does not limit the types of estates that are eligible for homestead status. Therefore, the exemption may generally attach to any estate in land whether it is a freehold or lesser estate. A life estate has been found to be among the property interests eligible for homestead status. Florida court have held that real property held in trust can be impressed with the character of homestead, including revocable and irrevocable trusts.Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
Most chapter 7 bankruptcy trustees in Cook County do a great job of balancing their duties while administering chapter 7 cases. There are more than a select few Trustees who seem to be growing towards advancing these cases beyond what they were intended to be. Let me provide a little background. The duties of a+ Read More
The post More Chapter 7 Bankruptcy Trustees Taking Liberties With The Bankruptcy Code appeared first on David M. Siegel.
In a big victory for mortgage lenders and an even bigger loss for Oregonians struggling to carry two mortgages, the U.S. Supreme Court has just ruled that underwater homeowners can’t get rid of a second mortgage by filing for chapter 7 bankruptcy.
Where a home is worth less than the amount owed on the first mortgage, Oregon debtors can always file Chapter 13 to eliminate a wholly unsecured second mortgage, but Chapter 13 Bankruptcies always involve some form of payment back to creditors, admittedly often as little as $100 a month for a few years before a debtor can get a discharge. Of course for some Oregon homeowners, a $100 per month may as well be five million, as paying anything beyond the first mortgage means not eating.
If you have a second on your home and the property is worth less than the amount of your first mortgage, please contact us so that we can find a way to get rid of your second mortgage in Chapter 13 Bankruptcy
The original post is titled Bad News for Oregon Bankruptcy Filers Hoping to Avoid Second Mortgages in Chapter 7 Bankruptcy , and it came from Portland Bankruptcy Attorney | Northwest Debt Relief .
Article X, Section 4 (a) of the Florida Constitution provides for the Florida "homestead" exemption. This homestead exemption is in most cases available to those who file for bankruptcy relief in Florida.
The homestead exemption allows for a maximum size of the land of 1/2 acre if located within a municipality and 160 acres if located outside a municipality. A homestead is generally limited to your actual residence or the residence of your family and may not generally include any portion used for commercial purposes.
The maximum dollar value of a "homestead" is unlimited , unless an exception applies. One bankruptcy code exception applies if you have acquired you interest in your homestead during the 1215 days prior to the filing of the bankruptcy case, you are limited to $155,675.00 in acquired value. 11 USC Section 522 (p).
Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
Bankruptcy Misconception There is a misconception out there that states that a married couple must file a joint bankruptcy case. This is simply not the case at all. It is true that the total family budget is a factor in determining whether a bankruptcy case can be filed and of which chapter. However, there is+ Read More
The post Married Couples Do Not Need To File Bankruptcy Jointly appeared first on David M. Siegel.
There are many keys to having a successful chapter 13 bankruptcy case. Most importantly, a successful case is one where the debtor has the financial ability to reorganize, the determination to see it through and the ability to satisfy the many requirements of the bankruptcy code. One main factor that I found to be a+ Read More
The post Providing The Right Documents To The Chapter 13 Trustee appeared first on David M. Siegel.
Chapter 13 is widely used to stop a home mortgage foreclosure and propose a Chapter 13 plan to reinstate one's home mortgage. This involves catching one's mortgage up-to-date over a period of up to five years while maintaining further monthly payments. Chapter 13 is also widely used to avoid an "unsecured" second or other junior mortgage if there is no equity to support the second or junior mortgage.
What can be done for the many homeowners in South Florida whose home values have fallen vastly below the amounts due on their first mortgage? For example, if the value of the home has fallen to $200,000.00 and $300,000.00 is owed on the mortgage. Generally, one is not allowed to force a mortgage company to modify one's mortgage on his principal residence. This means, one cannot force the mortgage company to reduce the amount owed, lower the interest rate, or stretch out the term of the mortgage on one's principal residence.
Due to the continuing deterioration of the mortgage foreclosure situation in South Florida, it appears that section 1325 (a)(5) of the Bankruptcy Code may be a provision whose time has come. Section 1325 (a)(5) provides that a Chapter 13 plan should be approved by the Bankruptcy Court if the holder of a secured claim, such as a home mortgage, has accepted the Chapter 13 plan. That is, Chapter 13 of the Bankruptcy Code contemplates approval of a Chapter 13 plan if the mortgage company accepts the Chapter 13 plan even if the Chapter 13 plan proposes to modify a home mortgage.
In normal times, it would be beyond contemplation that a mortgage company would voluntarily accept the modification of a home mortgage. But these are not normal times in South Florida and in many parts of the United States. In fact, public policy and indeed economic self-interest seems to be growing that a mortgage company should accept and even seek the modification of a home mortgage. The serious campaign begun a few weeks ago by the FDIC as the receiver of Indymac is one example of this policy being put into effect in earnest.
It would seem that in today's economy, the use of Chapter 13 should be considered to seek a mortgage companies acceptance of the modification of a home mortgage as proposed under a Chapter 13 plan. While the Bankruptcy Court may not be able to force a mortgage company to modify a secured mortgage on one's principal residence, section 1325 (a)(5) would appear to indicate that one is at least able to request the mortgage company to voluntarily modify one's mortgage.
In fact, one of the largest complaints of homeowners is that they are is unable to reach anyone at the mortgage company and that they only get the runaround when they attempt to reach a mortgage company to attempt to workout or modify their home mortgage. It is widely reported that many mortgage companies appear to be overwhelmed, understaffed, and unable to handle the volume of telephone calls. The benefit of Chapter 13 is that once the bankruptcy case is filed, the mortgage company retains a bankruptcy attorney who the Chapter 13 debtor is at least able to communicate with and request a voluntary mortgage modification.Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
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