Southern California Bankruptcy Law Blog

Monthly Archives: September 2011

The Home Mortgage Nightmare Gets Worse

Posted in Foreclosure, Home Loans

Over the last few weeks Alejandro Lazo of the Los Angeles Times has written about new mortgage problems looming on the horizon.  On September 14, 2011 he discussed the toxic combination of relatively high interest rates and heavily underwater property values as presaging the next wave of residential foreclosures.  He observed: A total of 10.9 million homes… Continue Reading

Rebuilding Credit After Bankruptcy

Posted in Chapter 11, Chapter 13, Chapter 7, Home Loans

Many potential bankruptcy clients tell me that they are concerned about the possible ill effects of bankruptcy on their future credit rating.  They are surprised and pleased to learn my tips for rebuilding credit after bankruptcy.  Let me begin with a bit of background. I.          Your Current Credit Is Poor When someone calls a bankruptcy… Continue Reading

Can’t Make The Chapter 13 Plan Payments

Posted in Chapter 13, Chapter 7

Sometimes a debtor faces a change of circumstances after having been in a Chapter 13 plan for a while.  If either your income decreases, or legitimate expenses increase, you may no longer be capable of continuing with the plan as originally confirmed.  What can be done? I.          Motion To Temporarily Suspend Payments Or Modify The… Continue Reading

Discharging Judgment Debts

Posted in Chapter 11, Chapter 13, Chapter 7

If one of your creditors got a judgment against you in a State Court action, you can still discharge that debt in bankruptcy – if it is of the dischargeable variety. When a debtor files for bankruptcy protection, the long term goal is, of course, freedom from debt.  Unfortunately, not all debts are dischargeable in… Continue Reading

Asset Protection, Exemptions, And Bankruptcy

Posted in Chapter 11, Chapter 13, Chapter 7

Can you keep all of your possessions in bankruptcy?  The answer depends on which chapter of the Bankruptcy Code you use to file your petition.  There are four chapters in the Code under which individuals and legally married couples may file. I.                   Chapter 7 The chapter most commonly used is Chapter 7, and its big… Continue Reading

Discharging Student Loans In Bankruptcy

Posted in Chapter 13, Chapter 7

Our country has a huge ticking time bomb:  an ocean of student loan debt.  And as tuition and other educational costs continue to shoot up, students must take out ever larger student loans to finance their educations.  It is not uncommon for a doctor to finish medical school with $200,000 to $300,000 in student debt. … Continue Reading

Famous People Who Filed Bankruptcy

Posted in Chapter 11, Chapter 13, Chapter 7, Debt

You might be surprised at the list of notables who have availed themselves of bankruptcy protection.  Of course, there are millions who go through bankruptcy every year.  But it is reassuring to know that some of the most important people in American history have gone through bankruptcy. According to CNN  some of those folks include: … Continue Reading

Home Mortgage Modification And Bankruptcy – Part III

Posted in Automatic Stay, Chapter 11, Chapter 13, Chapter 7, Home Mortgage Modification

I.          The Growth Of Government-Held Debt The managing director of Economics1, a nonpartisan policy-research institute, reports: In reviewing the latest Fed data, Investor’s Business Daily noticed that the total amount of government-financed consumer credit (the vast majority of which is mortgages) stood at $6.3 trillion, just slightly below the private sector’s total, $6.5 trillion.  As… Continue Reading

Home Mortgage Modification And Bankruptcy – Part II

Posted in Home Loans, Home Mortgage Modification

In my last post I focused on housing because I think it’s the most important factor in the current mess.  This post discusses the programs set up to address the mortgage meltdown.  The feds also view housing as the linchpin. I.          HAMP, HAUP, HAFA, HARP These stand for “Home Affordable Modification Program”, “Home Affordable Unemployment Program”,… Continue Reading

Homeowners Association Dues And Bankruptcy

Posted in Chapter 11, Foreclosure

It is not news to say that today’s real estate market is terrible.  Many “homeowners” are quite literally hundreds of thousands of dollars underwater.  I put homeowners in quotation marks because someone who is underwater does not really own a single molecule of the house. This leads many to surrender their houses as part of… Continue Reading