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Many people filing Chapter 7 bankruptcy wonder what happens after they have completed the meeting of creditors. What are the timelines for wrapping up the bankruptcy process and what else do you have to do? What happens to my property after the meeting of creditors? As part of your filing, you were required to [...]
Chapter 7 Bankruptcy – More of the Basic Steps in Your Bankruptcy Where to File – Residency Requirements Under U.S. bankruptcy laws you can file in any federal court district where you have had a “domicile, residence, principal place of business or principal assets for the last 180 days.” For long-time Arizona [...]
Understanding the Basics of Chapter 7 Bankruptcy General Overview Chapter 7 bankruptcy is often referred to as a straight or liquidation bankruptcy. In a Chapter 7 case all property of any significant value that is included in your bankruptcy is sold. Money from the sale of property is then distributed to whomever you [...]
What is a “Bankruptcy Trustee”? It is common for clients considering bankruptcy or who have already filed, to ask what a “bankruptcy trustee” is. This question is usually followed quickly by, “What does the bankruptcy trustee do?” The trustee is a person assigned to your bankruptcy case to represent the interests of the people [...]
Introduction to Bankruptcy for Individuals in Phoenix and Tucson Bankruptcy is often a confusing subject. As with most issues involving the law, it can be hard to dig through all the legal jargon used. Especially when you’re feeling stressed about your finances, it can be even harder to understand the process. We’re here to walk [...]
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So you already know about how Consumer Help Radio is an audio program that answers your questions about bankruptcy, consumer protection issues, student loan law and just about anything having to do with the law and your money.
You know how I spend a few minutes catching you up on the news you need to know about personal finances and the world of money.
Ripped from the headlines, as it were.
And you that I’ve even started including some great independent music in each episode.
And how it’s free to download and listen on your computer, iPod, iPhone, iPad, Android phone or BlackBerry device. You know you can find it on iTunes or by going to the website.
It’s the prefect complement to my other podcast, Money Go Roundtable. You already listen to that one, too.
Wait a minute – you don’t listen to Consumer Help Radio?
You should. It’s really good, not that I’m biased or anything.
Find it on iTunes or by go to the website.
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If you are behind in your mortgage or facing foreclosure, you may have been contacted by one or more companies promising to get your loan modified or your foreclosure stopped. Unsurprisingly, all you have to do is pay a hefty, up-front fee. Blanket guarantees such as these—especially with a large advanced sum—smack of dishonesty and should set off your scam alarm. Do not trust these companies, and certainly do not give them any of your money. Read on to learn about two common scams and your rights.
MARS Rule
The FTC has been cracking down on many mortgage relief scams, which prey on vulnerable homeowners in financial distress. These relief scams violate the Mortgage Assistance Relief Services (MARS) Rule. Under the MARS Rule, mortgage assistance relief services must comply with the following:
- The company may not collect advance fees
- The company must disclose the amount of the fee
- The company may not tell the consumer to stop communicating with her lender or servicer
- The company may not make false, misleading, or unsubstantiated claims about its services
The company must also disclose up-front that:
- It is not associated with the government or the lender
- The lender may not agree to change the terms of the loan
- The consumer can stop doing business with the company at any time
- The consumer can accept or reject any offer from the lender
- If the consumer rejects the offer, she does not have to pay the company’s fee
These are just some highlights of the MARS Rule. While not every organization and person is bound by the MARS Rule (for example, some attorneys and non-profit organizations are exempt), companies that do not comply with the above requirements are prevalent. Two of the most common scams used by these companies are Forensic Loan Audits and Mass Joinder Lawsuits.
Forensic Loan Audits
Forensic Loan Auditors (also called Mortgage Loan Auditors, Foreclosure Prevention Auditors, Forensic Mortgage Loan Auditors, or some other variation) promise relief for distressed homeowners by auditing their mortgage documents. The companies say that your lender may not have complied with mortgage lending laws, and if that is the case, then you can use their report to avoid foreclosure, modify your loan, cancel your loan, and so on.
Do not believe these companies! There is no guarantee that an audit will do anything for you. Even if there is an error in your loan documents, and even if you sue your lender and win, your lender might not modify your loan. Scammers will lie about what an audit can or will do for you to sell you their services.
Mass Joinder Lawsuits
Many scammers lead homeowners to think that a “mass joinder lawsuit” is the answer to their mortgage difficulties. The homeowners are told that if they join others in suing the mortgage lender, they could stop their foreclosure, get money, or even get the title to their homes. The scammers collect a large advance fee for their “attorney” to review and pursue your case; but the advice, experience, and results are often sorely lacking.
Legitimate Lawsuits
Sometimes, suing your mortgage servicer does make sense, whether suing as an individual or as part of a class action. If you believe you are a victim of mortgage servicing fraud or abuse, a lawsuit may be appropriate. There is a proper way to consider this course of action, and there is a proper way to see it through. These mass joinder lawsuit scams are not the answer. A qualified, experienced attorney can evaluate your specific circumstance and help you make the best decision for you.
See Related Blog Posts:
Alternatives to “Foreclosure Defense” Offer Better Results
Be Aware of Common Debt Collection Scams
The post Protecting Yourself From Mortgage Relief Scams appeared first on AKB.
Bringing you the most up-to-date news, tips and blogs throughout the web. Here’s your Bankruptcy Update for March 28, 2013 At Revel bankruptcy hearing, judge OKs interim approval of financing Ruling on Stockton bankruptcy eligibility likely Monday Bankruptcy Judge Gives Airline Deal a Go-Ahead
Debtors considering bankruptcy may be aware of the credit counseling requirement needed for filing. You are required to complete a credit counseling course before you file and then a financial management course before your discharge can be granted. This qualification became effective when the bankruptcy code was revised in 2005. The idea is to help [...]
While many people are busy preparing their tax returns, in this post we will focus on the treatment of tax refunds in bankruptcy.
In a Chapter 7 personal bankruptcy, a debtor filing in New York State may exempt up to $5,000 of cash or cash equivalents ($10,000, if the debtor is a married couple filing jointly), if the homestead exemption isn't taken. Accordingly, for a single debtor, if his or her New York State or federal tax refund exceeds $5,000, then the bankruptcy trustee can require the debtor to turnover to the bankruptcy trustee the difference between the tax refund(s) and $5,000.
However, if a debtor files for bankruptcy in June of a given tax year, then the amount of the tax refund would be prorated between the pre–bankruptcy period (the beginning of the tax year through the day before the filing date, which monies would be paid to the bankruptcy trustee for distribution to creditors) and the post–bankruptcy period (the filing date through the end of the tax year, which monies would be retained by the debtor).
If a debtor expects a large tax refund post–bankruptcy filing, he or she could lower the number of withholding allowances or amount withheld to reduce his or her tax refund, or delay the bankruptcy filing until after receipt of the tax refund.
For questions about the complex interplay between taxes and bankruptcy, please contact Jim Shenwick.
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