The first question is: What do you want to happen to your house in bankruptcy? What do you do about mortgage payments? There is nothing automatic; you are not required to keep or leave your house in Chapter 7 or Chapter 13 bankruptcy. Let’s start with Chapter 7 bankruptcy. Assuming you have no equity in…
Tag Archive: personal finance
Michigan Foreclosure: The Big Picture
What do the statistics tell us about the big picture for our economy now? That there will be more bankruptcies in Detroit, and everywhere else in Michigan, and the U.S. The foreclosure crisis continues, if you want chapter and verse, read “Reckless Endangerment.” Foreclosure sales are declining, but in judicial foreclosure states, which Michigan is…
The Truth About Michigan Bankruptcy Petition Preparers
In the Eastern District of Michigan Bankruptcy Court, Detroit, ten percent of the Chapter 7 cases filed are by people without attorneys. Many of the bankruptcy petition preparers abuse the process. First, they charge more than allowed. All of the Judges in the Eastern District of Michigan Bankruptcy Court have signed an order limiting bankruptcy…
Petition Preparer Statement
order_re_max_fee UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF MICHIGAN In re: Case No. Chapter Hon. Debtor(s) / STATEMENT OF PETITION PREPARER PURSUANT TO F.R.BANKR.P. 2016(c) The undersigned, pursuant to Fed.R.Bankr.P.2016(c) states that: 1. The undersigned is the petition preparer for the Debtor(s) in this case. 2. The compensation paid or agreed to be…
The New Truth About Debt Settlement Companies
“We can settle your debt for pennies on the dollar!” You don’t hear those ads as much as we used to, because the federal government finally clamped down with FTC regulations 7 months ago. “Settle your debts for 60, 70 as much as 85% off!” What these debt settlement companies left off their spiel was…
The Truth About Bankruptcy Fraud
The creditor lobby would have you believe that people who file bankruptcy are the ones committing fraud. They sold the bankruptcy law reforms as a way to stop the rampant fraud going on, people filing bankruptcy to skip out on their debts, debts which they could afford to pay. That was the company line. Debt…
The House Payment In Bankruptcy Story
What can I keep paying for if I file bankruptcy? What bills do I have to stop paying if I file bankruptcy? These are common questions I get from people. Too much to cover in one post, so more later. First, let’s discuss mortgage payments. In chapter 7, if you want to keep your house,…
The Truth About Michigan Foreclosure Law Changes
Less than two years ago, Michigan foreclosure law was changed in the face of the greatest foreclosure crisis since the Great Depression. Mortgage companies were required to send an initial foreclosure notice that gave the homeowner the opportunity to request a modification. If he did so, the house went off the foreclosure track for 90…
The Truth About Bankruptcy And Forgiveness Of Debt Income
DISCLAIMER: NOTHING IN THIS POST IS MEANT AS TAX ADVICE, CONSULT A PROFESSIONAL I was shocked to hear that some of my clients were about to pay income tax because of 1099-C forms received on rental properties they had abandoned. Being my clients, they had already filed Chapter 7 and received discharges. Which means, no…
The Truth About The Foreclosure Crisis
An essential part of the real estate bubble was mortgage securitization, the process by which mortgage loans were sold into investment trusts from which bonds were sold. It was mortgage fraud from A to Z, from the selling of mortgage backed securities trusts, before the trusts were full of mortgages. From the ratings agencies, assuming…
