When homeowners are deeply underwater on their mortgages and also have a second mortgage or home equity line of credit, they might be able to negotiate with the bank holding the second mortgage. The resulting settlement occasionally comes to a fraction of the total loan, and it’s understandable for people to wonder why second mortgagee would . . . → Read More: Banks Are More Willing to Negotiate a Settlement on a Second Mortgage in New York Than One Might Think

One creditor that can cause more hassles in a Chapter 7 New York bankruptcy than others is the government, specifically the IRS, New York’s Department of Taxation and Finance, or municipal revenue agencies. The bankruptcy code is kinder to the IRS than other creditors, but while tax debts generally receive “priorities” in bankruptcy—meaning they can’t be . . . → Read More: Yes, New Yorkers, Some Income Tax Debt Can Be Discharged in Chapters 7

Short selling a home in New York is one alternative for resolving the underwater mortgage. Others include refinancing, loan modifications, deed in lieu of foreclosure agreements, and of course bankruptcy. The short sale, though, is quite common and the process is essentially simple. The homeowner sells his or her house for less than the remaining . . . → Read More: A Short Guide to Short Sales for New Yorkers

For too many people, bankruptcy feels like giving up. Choosing other, riskier options may make them feel as though they’re still in control, and who knows? Maybe things will turn around for them. They run down their savings, rely on credit cards, and then as a last resort make a visit to a payday lender.

Payday lending . . . → Read More: Stay Clear of Payday Lenders, Bankruptcy Is So Much Safer

New Yorkers who are on a tight budget might look at their mortgage payments in isolation from the other costs of owning a home. This is a serious mistake as the other, hidden costs of home ownership might be harder to budget, but they can easily turn a shoestring budget into a reason to sell, refinance, . . . → Read More: House Costs Are Greater than Sticker Price

Business owners entering bankruptcy almost always have more complex cases than simple private bankruptcies, especially because the business owners themselves are filing on their own behalves as well. The differences in how the tax code applies to small businesses as opposed to individuals don’t help either.

One quirk business owners need to be aware of in particular . . . → Read More: Why Using a ‘Loss Carryforward’ before Bankruptcy Is a Good Move

“Zombie debt,” for New Yorkers unfamiliar with the term, is a debt you no longer owe that a collector has bought from a creditor nonetheless—whether it originated the loan or not—for a fraction of the price. The collector then tries to enforce the loan hoping you’ll repay it. Elsewhere, you may have heard the term, “charged . . . → Read More: Note to New Yorkers: “Charged Off” Debt is NOT “Zombie Debt”

After the housing bubble burst, millions of Americans found themselves underwater in their mortgages, meaning they owed more to the bank than their houses were currently worth. In this nasty situation, people are still looking for options for making things easier for themselves, particularly because selling a house at a loss leaves the homeowner liable for . . . → Read More: Mortgage Modifications in New York: A Quick Guide

When a creditor cancels a debt owed to it in New York or elsewhere, and the debt is greater than $600, then it must send the now-former debtor IRS Form 1099-C. The debtor includes this in his or her income tax filing to demonstrate that the canceled debt is in fact income subject to income tax. . . . → Read More: What Is Form 1099-C?

Starting in the 1980s, 401(k) plans rapidly become one of the most popular retirement savings vehicles for workers in New York and elsewhere. The concept grew to replace the corporate pension because it became more common for workers to move between industries instead of work in just one company.

Here’s how they work, if you didn’t already . . . → Read More: 401(k) Loans Can Put New Yorkers Deeper into Debt