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
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?
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?
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
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
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’
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