Andy Miofsky holds the highest AV PREEMINENT rating from Martindale Hubbell Law Directory and a perfect 10.0 from AVVO. Andy is an Illinois consumer rights lawyer with offices in Granite City Illinois. Andy represents people with bankruptcy and student loan debt problems throughout the Southern District of Illinois since 1979.

 

Author: Andy Miofsky, Esq.

20 Nov Chapter 7 Bankruptcy Lets You Cut Your Debt Losses and Move On.

[caption id="attachment_26396" align="alignright" width="216" caption="Cheaper to file bankruptcy"][/caption] Sometimes it makes more sense to let go of the past and start building a new future. Chapter 7 bankruptcy can be your solution. Does this debt arrangement conversation sound familiar? Client: I want to make arrangements to pay this debt. Me: Ok, how much can you offer to pay? Client: Nothing, I don’t have any money? Is it any wonder the bank will not work with you? Be realistic, creditors want cold hard cash, not talk, not arrangements. If you cannot make a payment, your arrangement, while well intentioned, is nothing more than an empty promise. It is time to check into reality.
Read More

25 Sep Disclose, Disclose, Disclose For Successful Bankruptcy

If your bankruptcy attorney is a member of the National Association of Consumer Bankruptcy Attorneys [NACBA] chances are that attorney participates in a list service discussion of issues along with other bankruptcy attorneys across the country. The NACBA list allows member attorneys to share practice tips and discuss emerging trends. A recent discussion illustrates the need for accurate preparation of the bankruptcy paperwork and shows what could happen if proper procedures are not followed. A debtor who filed bankruptcy did not disclose ownership of a pending personal injury claim. After the bankruptcy case concluded the debtor settled the injury claim. Debtor, the personal injury lawyer who worked the case and several medical providers received payment from the settlement. Later the bankruptcy trustee learned about the settlement and demanded all of that money.
Read More

20 Jul Top 3 Reasons Not To Reaffirm a Mortgage in Bankruptcy

Bankruptcy debtors should not reaffirm a mortgage. Reaffirmation of debt in bankruptcy prevents the debt from being discharged, a process explained in greater detail by Kevin Gipson in Chapter 7 Bankruptcy and the Reaffirmation Agreement. Yet, lawyers continue to debate whether to reaffirm a mortgage, without compelling argument on the affirmative side, even though state laws protect a homeowner, who continues to make voluntary mortgage payments without reaffirming the mortgage, from foreclosure, so long as payments are current or brought current within a reasonable time. So why should one reaffirm? Distinguished Missouri bankruptcy attorney Wendell Sherk once said "[T]he only reason to sign them is in order to get continued reporting of good payment status on the credit reports". In practice, mortgage companies dangle the prospect of reporting future good payment history to credit bureaus as a way for bankruptcy debtors to improve the credit score or qualify for future loans. If that is the only reason to sign, then that is actually a compelling reason not to sign. The unsaid corollary of that offer is that same mortgage company will report all information, good and bad, to the credit bureaus. And that information, both the good and the bad, can damage a credit score or derail a loan application. The more accurate part of the reporting argument is that the borrower should not want mortgage payments reported to the lender, because: 1. The debt to income ratio is minimized by not reaffirming the mortgage; 2. The likelihood a borrower actually makes mortgage payments on time is small; 3. The borrower can make the payment late, miss a payment here or there, catch up payment, pay whatever late fees accrue, all without risking a negative tradeline on the credit report.
Read More