Lien Stripping in Bankruptcy is Court Ordered Mortgage Modification One of the advantages to filing chapter 13 bankruptcy is the ability to strip an “under secured” junior mortgage lien. When a homeowner owes more on their first mortgage than their home is worth, Chapter 13 allows junior mortgages to be removed or “stripped” which has [...]
Bankruptcy News
Seventh Circuit: Attempted Murder Debts Not Dischargeable
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The right to a bankruptcy discharge is not absolute. For example, debtors who fail to keep adequate records, hide assets, incurred debt based on false pretenses, rack up credit card debt in bad faith or who are generally dishonest with the court are precluded from receiving a discharge by the bankruptcy code. Similarly, the bankruptcy [...]
Can I meet with a bankruptcy attorney and not file for bankruptcy?
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Meeting with an attorney does not mean that you’re obligated to file for bankruptcy Meeting with a bankruptcy attorney means that you are interested in exploring your options for dealing with debt. It does not mean that you are going to file bankruptcy or that you have failed financially. To the contrary, the business world [...]
HSBC Reaffirmation Agreements Don’t Quite Add Up: Are the Errors Intentional?
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Problems With Reaffirmation Agreements of HSBC Subsidiary A couple months ago, I got a call from a prospective client (who we’ll call Jim). At the time he called, Jim was involved in a pro se adversary case involving a dispute over the terms of a reaffirmation agreement. As I learned more and dug deeper, it [...]
Make Student Loan Debt Dischargeable in Bankruptcy…Again
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Why Not Student Loans? In the famous decision, Local Loan Co. vs. Hunt, the Supreme Court summed up the relatively simple policy behind our bankruptcy laws: the ”honest but unfortunate” debtor is given the opportunity to start over, “unhampered by the pressure and discouragement of preexisting debt.” The idea of periodic debt forgiveness is ancient, appearing numerous [...]
First Circuit: Lender Not Obligated to Foreclose on Home Surrendered in Bankruptcy
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Surrendering Property Usually Allows the Debtor to Walk Away From Underwater Property. What Happens When the Bank Refuses to Take Ownership? One of the big advantages for consumers filing bankruptcy is the ability to surrender property they can no longer afford. Through bankruptcy, debtors can avoid a deficiency lawsuit and get rid of personal liability [...]
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