February 2012

On February 7, 2012, the National Association of Consumer Bankruptcy Attorneys (NACBA) published the results of a survey of its 860 of its members. It found that a whopping four out of five bankruptcy attorneys reported a “major jump” in student loan debtors seeking counseling with bankruptcy attorneys. The NACBA characterized the problem as the …

Bankruptcy Attorneys Recommend Returning Bankruptcy Protections to Student Loans Read More »

Most New York bankruptcies are either in Chapter 7 or Chapter 13. The two chapters provide benefits and drawbacks to petitioners, which means there are good reasons to file in one chapter and not another. For example, if you borrow money to buy a car, have a relative co-sign on the loan, and then run …

Using Chapter 13 to Protect a Co-Signer in New York Read More »

The Federal Reserve tracks the amount of “nonrevolving” consumer debt in the United States. “Nonrevolving debt” contrasts with “revolving debt,” the difference being that revolving debt represents a set amount of credit that one can borrow in any amount at any time but can still reuse it once it’s paid off. Nonrevolving debt means the …

$1 Trillion of Student Loan Debt and Advice to Student Debtors in New York Read More »

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 …

Banks Are More Willing to Negotiate a Settlement on a Second Mortgage in New York Than One Might Think Read More »

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 …

Yes, New Yorkers, Some Income Tax Debt Can Be Discharged in Chapters 7 Read More »

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 …

A Short Guide to Short Sales for New Yorkers Read More »