Posted on Friday, September 17th, 2010
More and more people these days are struggling to continue making their mortgage payments for a variety of reasons including job loss, decreasing real estate values, and increasing mortgage payments due to an Adjustable Rate Mortgage (ARM). However, foreclosure is not the only option available for people who are having problems meeting their mortgage payment.
The answer to whether you wish to stay in your home (and can afford to do so) or whether you wish to move presents differing options to consider.
Some of the options available if you wish to keep your home include:
Some of the options available if you wish to give up your home:
Your individual situation will determine which option is the best path for you to follow. You should work with an attorney to review your specific circumstances and needs in order to get the best possible outcome. Please contact our office for more information or to speak with an attorney.
Posted on Friday, September 17th, 2010
With the worsening economy, more and more people are having a difficult time meeting their mortgage payments. Inevitably it seems, where there are people in trouble there are con artists looking to cash in on other people’s problems. According to the Federal Bureau of Investigation (FBI), there were a total of 62,494 mortgage fraud suspicious activity reports in Fiscal Year 2008 with $1.4 billion in losses. Illinois is ranked #8 in the list of states with significant fraud problems.
The U.S. Department of Housing and Urban Development (HUD) has articles on some of the scams that are currently being used on homeowners, such as conning homeowners into signing over their home (see information at www.hud.gov). Additionally, the FBI released an article on how to avoid becoming a victim of mortgage fraud . In response to the growing problem of mortgage fraud, Illinois has enacted The Mortgage Rescue Fraud Act, which governs mortgage modification companies. Based on this law, there have been numerous investigations into these companies by the Attorney General for fraud and other misconduct .
Before working with any company to modify your mortgage or stop foreclosure on your home, be sure to investigate the company thoroughly. Because there are so many scams out there, never sign a document with reading and understanding what you are signing. If you need assistance understanding the document, talk to an attorney.
Posted on Friday, September 17th, 2010
Generally, student loans are not dischargeable in bankruptcy, unless repaying the student loan causes an “undue hardship”. Unfortunately, meeting the standard of undue hardship can be very difficult. Most courts use a three-part test to determine whether an undue hardship exists:
Please contact our office to discuss your specific circumstances or to receive additional information about your options under bankruptcy
Posted on Saturday, July 17th, 2010
Bankruptcy law allows for individuals to keep property from being sold to pay creditors through “exemptions”. In a Chapter 7 filing, any property which is not claimed as “exempt” is potentially available to be taken by the trustee for paying creditor claims. Therefore, prior to a bankruptcy filing, individuals must list their assets as well as the value of the asset or the equity owned in the asset to determine whether the available exemptions are enough to protect all of the assets.
You should consult with an attorney to determine which exemptions are applicable to you and what is the best way to protect as many of your assets as possible during the bankruptcy.
Posted on Saturday, July 17th, 2010
You may be able to discharge federal income tax in a Chapter 7 bankruptcy case if the tax debt meets certain criteria:
Discharging tax debt is a complex area with many rules surrounding it. If you are burdened with federal income tax debts, you should consult with a bankruptcy attorney to determine whether, and to what extent, the debt would be dischargeable in bankruptcy.