One of the hardest issues for a bankruptcy attorney to deal with is the issue of the Reaffirmation Agreement. When a person files a Chapter 7 bankruptcy he is given a rare opportunity: To start over fresh without his debts! This means that a debtor has the right to get rid of both his debts to unsecured creditors and secured [...]
fresh start
HAMP, the Home Affordable Modification Program which can modify a mortgage, is no way to avoid bankruptcy. It’s a heart-breaker. It builds up false hopes and then destroys them. That’s my conclusion from reading the new Congressional Oversight Panel report. I haven’t written on HAMP because I’ve questioned its relevance to bankruptcy, but a number of clients [...]
At the same time the bankruptcy community is pondering the Lanning decision on what “projected disposable income” is in a Chapter 13, I read Judge Eugene Wedoff’s thoughts on whether Chapter 13 plans ought to require the payment of all of that disposable income during the bankruptcy to the trustee. * His point was that [...]
The client planned to file bankruptcy. Two of his creditors were willing to settle the debt for a substantial discount, my client reported. Could he accept a reduced payoff before he filed bankruptcy? There is no bar to compromising with creditors before a bankruptcy filing. Debtors under California state law are free to pay one [...]
We all handle medical problems differently. Go to any Emergency Room and you may wonder why the guy experiencing chest pains for the past week didn’t come in earlier and why the kid with the splinter is there at all. Financial problems are the same. Some delay getting financial counsel, while others are pro-active and [...]
11. �THOSE DEBT MANAGEMENT PLANS ADVERTISED ON TV AND RADIO REALLY WORK! FALSE – Most people are optimists about their finances. �Things don’t always get better. Check out this post about Debt Management Plans. 12. �YOU CAN KEEP ONE CREDIT CARD (JUST DON�T TELL YOUR BANKRUPTCY ATTORNEY) FALSE – You need to list all of [...]
