All items from The BK blog

File Bankruptcy if You are not Broke? Maybe Not Such a Crazy Idea

owe too much on mortgageThe Atlanta Journal Constitution ran a front page story on Sunday, April 14 entitled More than 40% of Georgia Homes Underwater.  The AJC reporter notes that “there’s not another metro area in the United States with as many concentrated pockets of mortgage holders who are underwater in their homes.  No place else comes close.”Your house is considered underwater if it is worth substantially less than what you owe.  From the mid-1990′s through the mid-2000′s, home values in metro Atlanta rose and mortgage lenders offered outrageous deals to encourage residential purchases.  It was common to see interest only loans or 100% financing which required nothing down from the purchaser.



From The BK blog
Posted 4 weeks 5 days ago

Home Foreclosed? Here’s What Happens Next

official notice of mortgage foreclosureGeorgia foreclosure law allows lenders to start and complete the mortgage foreclosure process in as little as 37 days.  This means that just over a month from the start date of the foreclosure, you may lose all title interest in your home.With very limited exception, lenders in Georgia do not have to go to court to foreclose on your home.  Georgia law permits non-judicial foreclosure, which means that if you go into default, the mortgage company or bank needs only to send you a written notice of intent to foreclosure, then advertise the pending sale for four (4) weeks in the legal newspaper for the county where the property is located.



From The BK blog
Posted 5 weeks 5 days ago

Troublesome Transfers Disrupt Bankruptcy Planning

gift for no considerationOne of the more frustrating parts of bankruptcy practice occurs when I have to tell a prospective client that he cannot file because he recently transferred property out of his name in an attempt to protect that property from creditors.  Most of the time, the transfers are made by someone who owes money to a creditor that he cannot pay and he wants to protect assets from that creditors.



From The BK blog
Posted 8 weeks 4 days ago

Bank Won’t Talk to You Now that You have Filed Bankruptcy – Here’s a Solution

no customer service after bankruptcyMortgage companies and banks often put you on a “no communication” list after you file bankruptcy.  Your on-line access log-in may stop working, you will no longer receive loan statements, and when you call customer service you may be told that because you are in bankruptcy, the lender cannot talk to you anymore.Lenders are not giving you the silent treatment because they are angry at you for filing bankruptcy, nor are they trying to be rude.  They are not talking to you because the automatic stay protection of the Bankruptcy Code says that once you file, it is a violation of the stay to make any effort to collect a debt.



From The BK blog
Posted 9 weeks 3 days ago

Unfiled Tax Returns and Chapter 13

unknown tax liability and chapter 13 bankruptcyChapter 13 bankruptcy cases filed in the Northern District of Georgia cannot be confirmed by the bankruptcy court judge if the IRS or State of Georgia files documentation reporting unfiled tax returns.  The reason?  If you have unfiled tax returns, your potential tax liability is unknown.  Since Chapter 13 consists of a payment plan that must fit within five years, an unknown liability means that there is no way to calculate whether your proposed plan payment will work.Further, prior to your Section341 hearing your Chapter 13 trustee will want to see a copy of last year’s tax return to (a) confirm that you have filed it, and (b) to cross check the annual income figure reported on Schedule B of your petition with the income figures shown on your tax return.



From The BK blog
Posted 10 weeks 3 days ago

Chapter 13 Bankruptcy Fraud Case Reaches 11th Circuit Court of Appeals: Why You Should Care

conviction for bankruptcy fraudEarlier this week, the 11th Circuit Court of Appeals issued a ruling in the bankruptcy fraud case of United States v. Turner. Here are the relevant facts:Mr. Turner owned a parcel of rental property that was destroyed by fire. His insurance carrier issued a check to him for $40,000. Two days after receiving this check, Mr. Turner filed Chapter 13. Three days after filing, Turner deposited the check, used $11,500 to pay off the mortgage on the destroyed property and kept the rest of the money.Several weeks after these financial transactions, Mr. Turner filed his bankruptcy schedules. He did not list receipt of the $40,000 check. He also claimed that the balance on the rental property mortgage was $50,000, rather than $11,500.



From The BK blog
Posted 13 weeks 2 days ago

Pay Your Mortgage After You File Chapter 13 if You Want to Keep Your House

In my latest Bankruptcy Law Network post, I talk about a Chapter 13 debtor’s obligations after his case is filed.  In this video I talk more specifically about a Chapter 13 filer’s obligation to make his on-going mortgage payments, on time, as they come due after filing.
Am I Required to Make Mortgage Payments After Filing Chapter 13? from Jonathan Ginsberg on Vimeo.The post Pay Your Mortgage After You File Chapter 13 if You Want to Keep Your House appeared first on theBKBlog.



From The BK blog
Posted 18 weeks 4 days ago

How to Create a Trustee Friendly Bankruptcy Budget

How to Avoid Problems When Filing a Bankruptcy Case Budget from Jonathan Ginsberg on Vimeo.One of the most important tasks you will be asked to complete relates to the budget you file in your bankruptcy case.   Your bankruptcy trustee (and creditors) will expect a budget that accurately reflects your income as well as all “reasonable and necessary” expenses.  The problem:  what is reasonable and necessary and who decides what that means?Furthermore, the budget you file most account for expenses that you are currently incurring as well as likely expenses that you will face in the near future.Experienced bankruptcy lawyers understand that creating a bankruptcy budget can require many judgment calls.  In this video, I discuss some of the considerations I bring to the process as well as some suggestions about you can protect yourself from possible challenges.The post How to Create a Trustee Friendly Bankruptcy Budget appeared first on theBKBlog.



From The BK blog
Posted 19 weeks 5 days ago

Public Bankruptcy Filings may Help Your Cause in a Divorce Battle

public bankruptcy recordsZsa Zsa Gabor, a 1950′s movie star known for her 8 marriages, once remarked, “I’m an excellent housekeeper.  Every time I get a divorce, I keep the house.”  Most people, of course, do not find divorce much of a laughing matter, especially when it comes to financial issues.If you are going through or have gone through a divorce, you know that the divorce process usually causes financial hardship to both husband and wife, and this is especially true if your divorce involves lengthy and expensive litigation.Not surprisingly, one or both parties to a failed marriage often turn to bankruptcy after their divorce in an effort to recover from the financial burdens of divorce.  Debts to a former spouse for alimony and support are not dischargeable in a bankruptcy but personal loans and credit card debts owed to third parties are dischargeable to the bankruptcy filer, although discharging these debts may run contrary to the divorce judge’s order about who is to pay what.



From The BK blog
Posted 21 weeks 4 days ago

Georgia Homeowners Should Not Assume that Mortgage Lenders will Negotiate in Good Faith

dual tracking foreclosureThe Atlanta newspaper ran a story this weekend about a Mableton woman who found herself facing an eviction notice following a foreclosure even though her mortgage loan account had been accepted into Georgia’s HomeSafe program. The HomeSafe program is a federally funded and state run arrangement whereby unemployed or underemployed borrowers can get a 0% interest bridge loan. The bridge loan funds are then paid to the mortgage lender to stop the pending foreclosure.



From The BK blog
Posted 23 weeks 5 days ago