It’s December, and one thing that often happens this time of year is temporary tax code provisions that are designed to benefit homeowners expire. What’s more is that many homeowners’ mortgage payments are going to start to rise soon too, possibly creating financial difficulties. Both developments might force New York homeowners to consider filing . . . → Read More: Two Pieces of Bad News for New York Homeowners
There’s plenty of advice out there for dealing with an underwater house via New York bankruptcy, but it’s another question entirely when you inherit one. Given that so many underwater homeowners are older Americans, it’s not as unusual a situation as one might think. So the question arises: What do you do if you . . . → Read More: What Happens If I Inherit an Underwater House?
The recession that began in 2008 was very severe because it was caused by excessive borrowing by households. As people became unable to repay their mortgages, they defaulted, leaving many homeowners underwater in their mortgages. The obvious response was a wave of bankruptcy filings. The recovery after the recession has not been particularly good, . . . → Read More: Filing Bankruptcy Again
Many people aspire to homeownership, but if they have filed bankruptcy they often believe it’s an unreachable goal. This isn’t true. There are several other ways bankruptcy can help someone become a homeowner.
(1) Bankruptcy can improve credit scores and other creditworthiness metrics. It’s avoiding bills and creditors that causes problems. In . . . → Read More: How Bankruptcy Can Lead the Way to Homeownership
People considering filing bankruptcy in New York are well aware of the consequences of a bad credit score. They can be denied credit; potential employers might not hire them; and landlords might decline to rent to them. Consequently there’s plenty of advice about how to maintain and buoy a credit score. What isn’t out . . . → Read More: What Are Bankruptcy Risk Scores?
Congress altered the bankruptcy code in 2005 to require debtors filing chapter 7 bankruptcy to demonstrate that their incomes are below the median family income for their state if their debts were primarily consumer debts. For single earners filing bankruptcy in New York, that figure will be $47,414 as of November 15. Debtors whose . . . → Read More: ‘Bankruptcy Income’ Is Not Always ‘Tax Income’
One thing good New York bankruptcy lawyers tell their clients to do is to obtain a credit report in preparation for filing bankruptcy. (In fact, it’s probably a good idea to get the report even before your first consultation with your bankruptcy lawyer.) This can easily be accomplished through Web sites like AnnualCreditReport.com, which . . . → Read More: Obtain a Credit Report Before Filing Bankruptcy in New York
The U.S. Department of Education (ED) monitors the default rate for federal student loans by calculating a three-year “cohort default rate,” which is the percentage of borrowers whose loans entered repayment within the last three years and are now well past delinquent status into default. Although the three-year cohort default rate is an improvement . . . → Read More: How Government and Private Student Loan Creditors’ Collection Powers Differ
People sometimes lease cars or apartments and then default on them. Normally, default leads to repossession and eviction proceedings, but chapter 13 bankruptcy can provide an alternative: assuming the defaulted lease. Assuming a lease allows lessees (debtors in this case) to keep using whatever they’re leasing by curing the default and resuming the payments. . . . → Read More: How to Assume a Defaulted Lease in Chapter 13 Bankruptcy
One thing debtors are concerned about is their credit scores and the impact filing bankruptcy might have on them. Indeed, as the economy continues to struggle, the importance of credit scores has grown. Although they are not the be-all and end-all of one’s creditworthiness, banks, landlords, insurers, and even potential employers often use them . . . → Read More: What Are the Components of a Credit Score?