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Offices in downtown Brooklyn & Melville, LI

26 Court St, Suite 2211
Brooklyn, NY 11242-1125
Phone: (718) 855-6840
Toll Free: (800) 297-6840
Fax: (718) 625-1966
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68 South Service Road, Suite 100
Melville, NY 11747
Phone: (631) 454-5248
By Appointment Only

Bankruptcy With or Against Reverse Mortgages

Last year I wrote about reverse mortgages and New York bankruptcy, but a recent article in the American Bankruptcy Law Journal adds more depth to the “intersection” between reverse mortgages and bankruptcy. It has a handful of lessons that New York homeowners (and their heirs) might want to know.

First, though, is a reminder as . . . → Read More: Bankruptcy With or Against Reverse Mortgages

Does the Means Test Apply to Cases That Are Converted From Chapter 13?

The short answer is probably yes.

The long answer is that the specific issue hasn’t been decided in a New York bankruptcy case or in a Second Circuit appellate case that I could find. Courts in other parts of the country have split on the issue. Their reasoning is interesting.

Against Taking the Means Test . . . → Read More: Does the Means Test Apply to Cases That Are Converted From Chapter 13?

At Last, a Principal Reduction Opportunity for Underwater Homeowners

In addition to mortgage modifications, deed-in-lieu of foreclosure offers, New York bankruptcy, and other options, the federal government has finally created the effective solution that until now has been off the table for underwater homeowners: mortgage principal reductions. On April 14, the Federal Housing Finance Agency (FHFA) announced the Principal Reduction Modification program, which would . . . → Read More: At Last, a Principal Reduction Opportunity for Underwater Homeowners

What Happens to Condo or Homeowners Fees in Bankruptcy?

Many New Yorkers live in condos or homeowner communities as opposed to independent, single-unit owner-occupied or rental housing. Keeping a home in New York bankruptcy is a common topic, as is protecting the interests of renters—including those in rent-stabilized units—but not so much is said about condos or homeowner communities. In New York City such . . . → Read More: What Happens to Condo or Homeowners Fees in Bankruptcy?

More on Bankruptcy Reform’s Legacy: Repeat Filing Continues

I have one more point of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005 to analyze: changes to the automatic stay to repeat filings. In the time leading up to its passage, many in Congress (and certainly creditors) believed debtors filed successive, strategic bankruptcies in a manner to avoid paying debts they . . . → Read More: More on Bankruptcy Reform’s Legacy: Repeat Filing Continues

Is Debt or Income Preventing Young Americans From Buying Homes?

It’s understandable that young Americans would not want to take out even more debt to purchase a home after the housing bust led to a wave of New York bankruptcy filings and foreclosures. Indeed, according to a 2014 Federal Reserve Bank of New York study, the number one reason a group of renters gave for . . . → Read More: Is Debt or Income Preventing Young Americans From Buying Homes?

Bankruptcy Courts: Parent PLUS Loans Stay, Bar-Exam Loans Go

Two bankruptcy cases made the news in March that will be of interest to New York bankruptcy debtors. One of them was even a Brooklyn bankruptcy.

The first case appeared in the Boston Globe. Echoing my post on the economic risk calculator, a debtor earned $165,000 annually as president of a manufacturing company and borrowed . . . → Read More: Bankruptcy Courts: Parent PLUS Loans Stay, Bar-Exam Loans Go

‘Economic Risk’ and ‘Bankruptcy Risk’

The New York Times recently ran an op-ed simply titled, “Calculate Your Economic Risk.” It sounded like the Choose Your Own Adventure novel from the late 1970s—or bankruptcy risk scores that some creditors use. According to the op-ed’s authors, who are academics, it’s possible to estimate “economic risk” the same way as the risk of . . . → Read More: ‘Economic Risk’ and ‘Bankruptcy Risk’

More on Bankruptcy Reform’s Legacy: Debtor Education a Waste of Time?

After considering how the means test affected New York bankruptcy for the worse, my mind wanders to other aspects of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), which was passed in 2005. Specifically, the addition of a credit-counseling requirement for debtors to complete before filing bankruptcy and a financial-management course to be completed . . . → Read More: More on Bankruptcy Reform’s Legacy: Debtor Education a Waste of Time?

Downsizing Can Benefit Above-Water Homeowners

There’s quite a bit to say to homeowners who are underwater on their mortgages: short sale, offering the deed in lieu of foreclosure, refinancing, obtaining a mortgage modification, staying and paying, surrendering the home in New York bankruptcy, or even walking away. By contrast there isn’t much advice for homeowners who are barely above water. . . . → Read More: Downsizing Can Benefit Above-Water Homeowners