By: Marshall G. Reissman Bankruptcy Attorney in St. Petersburg, Florida at The Reissman Law Group, P.A.

By: Ceara L. Riggs, Bankruptcy Attorney in St. Petersburg, Florida at The Reissman Law Group, P.A.
On February 9, 2012, State Attorneys General and five of the nation’s largest mortgage servicers reached a $25 billion settlement. Super. But what does this mean for those who have already been foreclosed upon, for those currently facing foreclosure, and for those who are maybe two or three payments behind and fear that foreclosure is just around the corner?

 I read a blog today, as well as the written opinion of the Court, concerning what is called a "fee-only Chapter 13 plan". While I agree with the ruling of the Court I completely disagree with the blog and was shocked that a lawyer would take such an action as a matter of course. A summary of the facts are:

Often, debtors come to the bankruptcy lawyer's office after already having made costly mistakes that could easily have been avoided, including:

Without question just the thought of having to file bankruptcy, Chapter 7, Chapter 13 or a Chapter 11 is very stressful.  It is an emotional roller coaster ride before you actually make a decision.  When anyone is facing the unknown, coupled with the hearsay gossip about bankruptcy that is almost invariably wrong, it is no small wonder that your stress mounts. During financial hardship the pr

Abraham Lincoln, a lawyer by profession, was exactly on the mark when he said: "A lawyer's advice and time are his stock in trade." That's what we sell -- our time (as well as our knowledge).

On an issue of first impression before the Sixth Circuit, the Court held that post-petition income that becomes available after a debtor completes repayment of a 401(k) loan is projected disposable income that must be turned over to the Trustee for distribution to unsecured creditors pursuant to Section 1325(b)(1)(B) and may not be used to fund voluntary 401(k) plans.

Bankruptcy is a very effective tool to deal with financial problems. There are times, however, when it just does NOT make sense. The following facts are from a consultation where I advised AGAINST a filing.

There has been little success with the money allocated by Congress, through HAMP, to help fix the mortgage crisis. Very few people having trouble with their mortgages have received any relief of any kind.  No reduction in interest rates, no reduction in the mortgage amount etc. etc.