Mortgage Workout

Bank Loans


When you have trouble paying your mortgage and the bank says that they are sending your loan to the “workout department”, the purpose of the department is NOT to help you to work things out. Their purpose is to work your loan out of the bank, and that usually means a foreclosure. If you need help in a workout that works for you, call us. Get informed. Knowledge is power.



Economic Outlook

Some reports have shown sectors of the economy improving.  For example, and this varies by location, but it is generally accepted that the housing market is improving.  But even that is not enough to jump start the economy, and it is of no help to some people who have seen huge losses in the amount of equity in their properties, as stated in a recent article.  Every situation is different, presenting different problems and opportunities.

If you have a question, contact us.  Knowledge is power.

Bad Economic Trends

It is always important to try to stay one step ahead of events.  In terms of present day issues, the jobs reports are not looking good, according to a recent Boston Globe article.  What this means is that, as stated in prior blogs, if there is any possibility of a problem of cash flow or insolvency, the best thing is to recognize it and plan early.  A consultation does not mean that you are filing bankruptcy.  It means that you are looking out for options and planning.  Waiting too long to plan can effectively eliminate the opportunity to plan.

Knowledge is power.  Contact Us if you have any questions.

Foreclosure Defense

There have been and continue to be a series of mistakes made by banks on the course of their efforts to foreclose on properties.  Some of these mistakes continue to take place, as set forth in a recent article.  In some cases, this situation can present itself with opportunities for borrowers to try to negotiate a deal with a lender.  But this area of the law, having its roots in old established case law, is too complicated for a non-lawyer to consider self-help remedies.

Knowledge is power.  If you need help, contact us.

Economic Slowdown

The Federal Reserve has announced that the economy has slowed during the first half of 2012, but it is taking no action to stimulate the economy anyway, according to a recent report.  This could be interpreted in so many ways, but still not good news overall.

Knowledge is power.  Contact us if you have any questions.

No Immediate Relief on Mortgages

As shown in a recent article, certain mortgage debt held by Fannie Mae or Freddie Mac will not receive the benefit of principal reductions in getting relief to make their mortgages more affordable.  This does not apply to everyone – just those whose mortgages are held by Fannie Mae and Freddie Mac.  Also, this does not prevent people from being creative in trying to make mortgages more affordable for people in trouble, but it certainly doesn’t help.

Knowledge is power.  Contact us for information if you need help or if you think that you might need help.

Bankruptcy To Be Filed? What About Timing?

Bankruptcy To Be Filed?  What About Timing?

Is there always a reason to hurry up the bankruptcy filing?  Does the timing of a filing matter? Timing depends upon your objectives, and filing quickly sometimes is important when the client needs protection from creditors right away.  This happens when one is trying to stop an impending foreclosure sale, a wage garnishment, or seizure of a bank account. When creditors are moving to seize assets, immediate bankruptcy protection may be needed.

But when the creditors are not threatening immediate action, waiting is something the answer. This may be the case in various circumstances:

  • Tax Debts.  Income taxes are generally nondischargeable in bankruptcy, but there are critical exceptions, and most depend upon timing of the bankruptcy filing. You may have to wait a short while, or as much as 3 years so that taxes may become dischargeable. It is sometimes worth the wait.
  • Assets.  The amount of assets that someone in bankruptcy may protect may vary from state to state.  If your assets are worth substantially more than you can protect, this you may have to take the time to legitimately utilize your assets for your benefit today, rather than to lose them in a bankruptcy.  As a result of doing so, you may need to wait to file bankruptcy fro a period of 1 to 10 years, depending upon the facts involved. However, with proper planning, it will be worth it.
  • Asset Transfers:  If you have transferred assets – your home, cash, stock, or vehicle – to a trusted friend or family member to keep it out of the hands of creditors, this creates timing issues.  This frequently happens when individuals are being pursued by creditors and are afraid that the creditors will seize their property.  This creates a need to wait before filing bankruptcy.

Just like all things in life, timing can be everything.  It is always best to file a bankruptcy  case when you and your lawyer have considered all the possibilities.

Knowledge is power.  Contact us for answers to your questions.