It’s surprisingly common for people exiting New York bankruptcy to see their credit scores improve. This phenomenon is generally attributed to the fact that debtors have taken the responsible course of action with their debts, rather than letting them spiral into default. Alternatively, creditors may be interested in taking advantage of former debtors’ inability to . . . → Read More: Removing a Bankruptcy Filing From a Credit Report
It’s one of the most important questions debtors can ask, particularly if their incomes are above the median for their state and they don’t expect to pass the means test. There are three tests the Bankruptcy Code applies to debtors’ repayment plans before they can be confirmed. A plan must pass all three tests and . . . → Read More: How Much Do You Need to Be Able to Pay in Chapter 13?
Late last year I wrote about the federal government’s investigations into zombie debts that were persisting on people’s credit reports after they filed New York bankruptcy. Uncorrected errors on credit reports like these can cause serious consequences for those trying to obtain new credit, especially those who’ve exited bankruptcy. The good news on this front . . . → Read More: New York Attorney General Announces Settlement With Credit Reporting Bureaus
You may recall the “robo-signing” scandal that erupted in 2010. Banks’ employees and contractors were improperly signing false mortgage or foreclosure documents and then executing them on homeowners. Apparently, some of these documents found their way into bankruptcy courts, meaning the lenders committed perjury as well. The U.S. Trustee Program, which among other responsibilities helps . . . → Read More: U.S. Trustee Program Announces $50 Million Bankruptcy Settlement With JPMorgan Chase
Most people don’t think about growing their families when filing New York bankruptcy, but bringing a child into your family can add a few wrinkles to a filing that debtors might want to know about, particularly when a pregnancy happens by accident.
Probably the most common place where a new child will (or won’t) affect . . . → Read More: Bankruptcy When You Are Expecting
There’s more to taxes in chapter 13 New York bankruptcy than what I’ve written about already, tax refunds and deductions, so now is as good a time as any to discuss some of the other major topics.
First on the list is how do you file your taxes while in bankruptcy? The answer for chapter . . . → Read More: Taxes and Chapter 13 Bankruptcy
It’s not a phenomenon that’s affected people filing New York bankruptcy yet, but it might become one in the not-so-distant future: Some federal courts in other states are ruling that tax debts that would otherwise be dischargeable are in fact not.
Here’s the background. Typically, discharging a tax debt requires the debtor to meet three . . . → Read More: Bankruptcy Courts Becoming Less Forgiving of Late Tax Returns
In discussing reverse mortgages and New York bankruptcy, I demurred on whether they “work as intended.” As a brief reintroduction, a reverse mortgage gives the homeowner equity payouts over time rather than the homeowner “purchasing” equity with monthly payments. The Consumer Financial Protection Bureau (CFPB) recently issued a report that addressed the effectiveness of reverse . . . → Read More: CFPB Reports on Homeowners’ Reverse Mortgage Complaints
There’s a lot of bad reporting on student loans out there. Frequently, you will hear about how student loans aren’t a problem because the people with high balances are a tiny minority of all student loan debtors, or that higher debts tend to coincide with higher incomes. The issue isn’t that these points are strictly . . . → Read More: Student Loan Defaults Mounting Despite Income-Based Repayment Programs
A reverse mortgage is when a homeowner who owns a property free of any other mortgages and is at least 62 years old borrows money against the home’s equity. It’s “reverse” in the sense that the home’s equity decreases as the money is paid out to the homeowner instead of rising with each mortgage payment. . . . → Read More: Reverse Mortgages and New York Bankruptcy