In February, the Federal Reserve Bank of New York’s Liberty Street Economics blog published five posts on housing and homeownership. I won’t discuss the findings from every post, nor write five in response, but I will hit on the major points that might be salient to New York bankruptcy. In its first post, the Fed’s . . . → Read More: NY Fed: ‘Household Sector Remains Vulnerable to Severe Price Declines’
When debtors have too few funds to pay too many debts, they don’t try to distribute their money among all their debts. Rather, they prioritize some debts over others. The insight, courtesy of a blog post at the Federal Reserve Bank of New York’s Web site, can help debtors and New York bankruptcy lawyers determine . . . → Read More: How Do Debtors Prioritize Their Debts?
I just wrote about the new study renewing the debate on whether underwater homeowners are stuck in their communities due to the “lock-in effect.” The hypothesis states that underwater homeowners are so reluctant to leave their homes at a loss or file bankruptcy that they stay put and try to find work locally, even if . . . → Read More: No ‘Lock-In Effect’ Stopping Millennials From Moving
It did not take long for the Internet to create new markets for consumers. It’s one of the Internet’s primary contributions to people’s lives. Like all new things, as it comes into contact with old laws, novel pitfalls emerge—like debt collectors on social media. Because people transact frequently via the World Wide Web, debtors sometimes . . . → Read More: Digital Currencies Are Assets in Bankruptcy
Late last year I wrote about how delinquencies in the subprime auto loan market are rising because auto finance companies are targeting debtors with poorer credit. As borrowers fall behind on their payments, the number of repossessions grows. In the past, borrowers could rely on a few strategies to prevent a repossession of their vehicles. . . . → Read More: Lenders Tracking and Disabling Vehicles Before Default, Repossession
A few years ago I wrote about the debts that are excluded from a discharge order in a chapter 7 New York bankruptcy. There are, however, a handful of debts that are not only nondischargeable but also not specified as such in the Bankruptcy Code. True, they are rarely seen, but debtors might want to . . . → Read More: Nondischargeable Debts the Bankruptcy Code Won’t Tell You About
If a homeowner’s equity goes negative, will the homeowner feel stuck and unable to find better work? Or, will the homeowner search for new work elsewhere and take the loss? It’s an important question in New York bankruptcy because if the so-called “lock-in” effect is real, homeowners would probably be better off in the long . . . → Read More: The ‘Lock-In Effect’ Revisited: Underwater Homeowners Stuck in Communities
Late last year, The Boston Globe ran an article touching on a difficult topic in New York bankruptcy: joint, nondischargeable debts. Normally, if a debt is jointly owed and dischargeable, then it’s unlikely to raise problems in bankruptcy, whether the borrowers are married or not. Once it’s discharged, the lender may demand payment from the . . . → Read More: Joint, Nondischargeable Debts: Few Options for Separated Couples
The short answer is: We don’t know—according to a November 2016 article in New York Law Journal. In discussing the topic, the authors could not find any court cases in the Second Circuit addressing which party controls the attorney-client privilege in a New York bankruptcy.
Before explaining why this is an issue, it’s necessary to . . . → Read More: Attorney-Client Privilege: Whose Is It in an Individual New York Bankruptcy?
I recently wrote about research showing that race sometimes influences New York bankruptcy chapter choices, and lawyers might misdirect black clients to chapter 13 when chapter 7 would be more appropriate. A new study from the Pew Research Center offers insight as to why black (and Hispanic) borrowers struggle with debts, specifically mortgage debts.
Pew . . . → Read More: Pew Study: Blacks, Hispanics Struggle in Mortgage Markets