On April 30, the US Senate voted against S. 61, a bill that would let judges modify home mortgages in bankruptcy. Karen Oakes wrote an excellent article, “Congress Votes Against Consumers Modifying Home Mortgages In Bankruptcy” discussing the vote. But some might wonder why the banking industry would fight so hard, and spend so much [...]
May 2009
If you are currently participating in a Debt Management Plan (DMP), you must read the following article by the Federal Trade Commission: The FTC has found that some organizations that offer DMPs have deceived and defrauded consumers, and recommends that consumers check their bills to make sure that the organization fulfills its promises. If you [...]
If you owe rent when filing a Chapter 13 bankruptcy case, it’s not easy to figure out how to pay the back rent.  You’ll be paying this pre-bankruptcy debt at 100% when you’re likely paying your credit cards maybe 5%.  Trustees like to object when one class of creditors is paid better than another.� That’s [...]
A recent Missouri case held that when drafting a chapter 13 plan for a bankruptcy debtor who is behind on home mortgage payments, the plan may not provide for direct payment of the regular, ongoing monthly mortgage payments by the debtor to the mortgage bank. Instead, ongoing monthly mortgage payments must be made to the chapter [...]
