Blogs

 
Until recently Oregon filers could depend on their state bankruptcy exemptions to protect up to $3000 in household goods. Truthfully protection of household goods does not come up all that often in bankruptcy proceedings. After all, once you buy something and take it home, the resale value is usually pennies on the dollar. That said, many Oregon filers genuinely worried that the Chapter 7 Bankruptcy Trustee might come to their home, inspect their furniture, the contents of their garage, the kids’ toys, etc. and opt to sell off some of the filers’ treasured family heirlooms.
With the recent adoption of the federal exemptions, prospective Oregon bankruptcy filers can now breathe a sigh of relief. The protection for household goods has been increased from $3000 to $11,525. In addition, the wildcard and homestead exemptions can now be applied as well to protect another $11,000 in household goods for single filers and another $22,000 for married filers.
What this means is that your stuff is now protected. You keep it all.
 
 
T
 
 
 
 
 
The original post is titled Federal Bankruptcy Exemptions in Oregon and Your Household Stuff , and it came from Oregon Bankruptcy Lawyer | Portland, Salem, and Vancouver, Wa .

On August 22, 2013, David Shaev will be presenting at the Consumer Bankruptcy Informational Workshop, a presentation of City Bar Justice Center of the New York City Bar and the U.S. Bankruptcy Court for the Eastern District of New York.
The event will be held at the New York City Bar, 42 West 44th Street, New York, New York from 6:00pm – 8:30pm.
Joining David will be fellow New York City bankruptcy attorneys Sheldon Barasch and Rachel Blumenfeld.
The event is free and open to the public, but registration is required.
Topics to be covered are:

• Types of Bankruptcies available;
• Requirements and costs for filing bankruptcy;
• Advantages and Disadvantages to filing bankruptcy;
• Alternatives to filing bankruptcy; and
• Information about the long-term effects of a bankruptcy Discharge.

For more information or to register, contact the Pro Se Office at the United States Bankruptcy Court for the Eastern District of New York at (347)394-1738.
I hope you can make it for this informative and free session.
Free New York Bankruptcy Information Event – All Are Welcome was originally published on Consumer Help Central. If you're seeing this message on another site, it has been stolen and is being used without permission. That's illegal, a violation of copyright, and just plain awful.

A defaulted federal student loan isn’t the end of the world.
Let’s say you fell behind on your student loans. Way behind.
So far behind that you went into default on your federal loans. But times got better, and you were able to rehabilitate those loans and resume payments.
Later on, you find yourself in a financial crunch again. One thing leads to another, and you default again.
What’s to be done?
Rehabilitation – A One Shot Deal
In the world of consumer finance and debt, you can fall behind on a loan and then catch up again. Fall behind again and you catch up again.
For all their faults, private creditors and collectors are forgiving in that way. They want their money, and are content to get it when you’ve got it.
In the world of federal student loans, however, the landscape is different.  If you default once and rehabilitate your federal student loans, you can’t do it again.
Consider Consolidation
You can’t rehabilitate the federal student loan, but you may be able to consolidate the loan if you agree to repay the loan under either the Income Contingent or Income Based Repayment Plan.
There is, however, a catch.  You can’t consolidate a defaulted federal student loan under these circumstances:

• If a judgment has been issued against a defaulted loan (unless the judgment order has been vacated); and
• If you are trying to consolidate defaulted Direct Consolidation Loans and do not include at least one additional eligible loan in the consolidation.

If your defaulted student loan is a FFEL Loan or Direct Loan, you may be liable for collection costs as well as any collection costs of up to 18.5% of the principal and interest outstanding on the defaulted loan.
Federal Loans Eligible For Consolidation
Not all federal student loans are eligible for consolidation, however.
You must have at least one Direct Loan or Federal Family Education Loan (FFEL) loan in order to consolidate under the Direct Loans program.
Even if you have a number of loans, you can consolidate under the Direct Loans program if at least one of them is a Direct Loan or FFEL Loan.
Chapter 13 Bankruptcy As An Option
If your loan is in default and you can’t consolidate under the Direct Loans program, maybe Chapter 13 bankruptcy can help you.
Under Chapter 13 bankruptcy, all of your debts (not just student loans – all of them) are put under the control of the U.S. Bankruptcy Court.
Each month you pay an agreed-upon amount of money to the Chapter 13 bankruptcy trustee appointed in your case, and that trustee distributes the money to your creditors – including your federal student loan lender. At the end of the case, which last 3-5 years depending on your household income and a few other factors, most of your debts are wiped out.
Your federal student loans, however, will not be wiped out at the end of your Chapter 13 bankruptcy case. In that way, you can look at Chapter 13 as a way of forcing a temporary repayment plan on your federal student loan servicer.
In order to qualify for Chapter 13 bankruptcy, you must have regular income as well as the ability to make payments of some sort. It doesn’t need to be a huge number each month, but if you’re running the in negative each month then Chapter 13 isn’t going to work for you.
The Downside Of Chapter 13 Bankruptcy
Using Chapter 13 bankruptcy as a way to handle your defaulted federal student loans isn’t a perfect solution.  In fact, here are some of the downsides you need to know about:

• the case runs for 3-5 years depending on your household income;
• during the time that you’re in Chapter 13 bankruptcy, you will need to turn over a portion or all of your tax refunds each year to the trustee for distribution to your creditors;
• interest on your federal student loans continues to accrue during your Chapter 13 case, so your balance may not go down by a significant amount of money by the end of the case; and
• you will not be able to use new credit or borrow money while you’re in Chapter 13 unless you get permission from the court to do so.

The Benefits Of Chapter 13 Bankruptcy
There are, however, lots of benefits to filing for Chapter 13 bankruptcy. They are:

• force a repayment plan of your federal student loans based on what you can afford;
• stop collection activities against you for the period of time that you’re in Chapter 13;
• prevent wage garnishments, bank account freezes and judgments from going forward against you;
• maintain the ability to keep a roof over your head and food on your plate without continuing to slide further behind in your federal student loan obligations;
• wipe out many of your other debts at the end of the Chapter 13 case, which may make it easier to catch up on your student loans over time; and
• if your financial situation doesn’t improve by the end of the case, you can file another Chapter 13 to handle your remaining student loan debt.

Legal Fees For Chapter 13 Bankruptcy
This is a big question for most people – Chapter 13 sounds great, but how am I going to pay for it?
Fair question.
In some places, our Chapter 13 legal fees are set by the court (in Los Angeles Chapter 13 cases, for example, we are limited to charging $4,000 for the basic work involved).
In New York, our fees are based on your situation and what we reasonably expect to do in order to get your the help you need. That usually runs about $6,500.
On top of those fees, there are court filing fees that come to $281.  There’s also a credit counseling certification process as well as a financial management certification that you’ll need to do, and they usually come to about $50 combined.
How Legal Fees Get Paid
Your goal is to get this handled as quickly as possible, and we want to help. That’s why we allow you to pay most of your fees through the Chapter 13 Plan.
That means we will stand in line with your other creditors and get paid a little bit each month our of your monthly payments.
It makes sense for you because you get into court more quickly, and you have the peace of mind knowing that we don’t get paid if the case isn’t successful.
Consider Your Options
As you can see, a defaulted student loan isn’t the end of the world. Whether it’s consolidation or Chapter 13 bankruptcy, there are ways to avoid the government’s collection efforts.
I’m happy to help either way, and when we talk it will largely be about mapping out these options and seeing which one works best for you.
 
What To Do If You Default On Your Federal Student Loans After Rehabilitation was originally published on Consumer Help Central. If you're seeing this message on another site, it has been stolen and is being used without permission. That's illegal, a violation of copyright, and just plain awful.

You can refinance your mortgage during an active Chapter 13 bankruptcy case – but only if you follow the rules.
When you file for Chapter 13 bankruptcy, part of the deal is that you are not allowed to take on more debt until the case is over.
If you want to take on new debt while your case is active, you need court permission.
Some places relax the rules a bit. For example, for cases filed in the U.S. Bankruptcy Court for the Southern District of New York, you’re allowed to take on new debt up to $1,500 without asking the court.
When you refinance your mortgage, you’re taking on new debt.
Though you’re just swapping a new loan for an old one, it’s a new account and lender. That means it’s new debt.
You will need to follow the rules to make sure you don’t get into trouble.
Information And Documents We Need
You are going to need to get us some documents from your mortgage broker or lender.
You will also need to take the time to talk with someone in the office about the situation and circumstances surrounding the refinance.
The information required differs based on where you are – the court rules in Los Angeles differ, for example, from those in Brooklyn cases. And the requirements in Brooklyn cases are different from those in Manhattan.
That’s why you need to get in touch with us. No sense in getting the wrong information, only to have to go on a hunt for the right documents and lose valuable time later on.
Once We Have The Information In Hand
From there, we will need to file a motion with the bankruptcy court to allow you to refinance your mortgage.
This is called a Motion To Incur Debt in New York bankruptcy cases, and Debtor’s Motion For Authority To Refinance Real Property for Los Angeles bankruptcy cases  (you can click here for the official form we need to use in Los Angeles). Either way, it’s largely the same thing.
It takes a few days to put the papers together. Once filed, it will take about 3-4 weeks for the motion to be heard by the bankruptcy judge.
Once the judge hears the motion, and assuming nobody opposes it, we should receive an Order allowing you to refinance within a week or so. It could take longer depending on how busy the court is.
You are allowed to close on your refinance only after the judge has approved the motion.
When To Get In Touch With Us
Plan on dropping us a line when you get serious about refinancing. You don’t need to have a firm commitment from a lender, but give a call when you know for sure that you’re looking to refinance.
We’ll go through some basics, including the amount you’re borrowing, whether you’re looking to cash out some equity, and what we’ll need for your Motion To Incur New Debt.
Don’t wait until you’ve got a commitment because then you’re under a time crush to get to the closing table. Look at the timeframe for a motion to be heard and approved – do you really want to lose the refinance just because you sat on the sidelines?
Image credit:  RambergMediaImages
Refinancing Your Mortgage While In Chapter 13 was originally published on Consumer Help Central. If you're seeing this message on another site, it has been stolen and is being used without permission. That's illegal, a violation of copyright, and just plain awful.