Matt Leichter, Author at Bankruptcy Attorney in Brooklyn, New York

U.S. Supreme Court to Decide Future of ‘Structured Dismissals’ in Chapter 11

Bankruptcy, Chapter 11 Bankruptcy, Creditors / By Matt Leichter

Most New York bankruptcy debtors do not choose chapter 11, but their lives can be affected by chapter 11 bankruptcies filed by others, such as their employers. This is precisely what is happening in a case the U.S. Supreme Court is deciding, Czyzewski v. Jevic Holding Corp., which asks whether bankruptcy courts should allow “structured …

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NY Fed: Subprime Auto Loan Delinquencies Are Rising

Bankruptcy, Chapter 7 Bankruptcy, Debt / By Matt Leichter

Auto loan debts might become more common in New York bankruptcy, going by a report from the Federal Reserve Bank of New York. In a blog post, its researchers found that lending for cars increased steadily after the Great Recession, but since the first quarter of 2010, originations in subprime auto loan debt (FICO scores …

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Will the Federal Government Reform Income-Driven Repayment Plans?

Debt / By Matt Leichter

Income-driven repayment (IDR) plans came into prominence in 2007, and in the last decade the Obama administration has promoted them and broadened their scope, e.g. by proposing new ones like REPAYE. IDR plans reduce debtors’ monthly payments and ultimately forgive loans after a certain number of years, usually 20. For many years, federal student loans …

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Debtors to No Longer Receive IRS Form 1099-C for ‘Non-Cancelled’ Debts

Bankruptcy, Debt / By Matt Leichter

One way New York bankruptcy benefits debtors over debt settlement or other non-bankruptcy options is that debtors do not need to pay income taxes on cancelled debts. Normally, cancelled debts are considered income, so when lenders forgive debts greater than or equal to $600, they are obligated to send debtors IRS Form 1099-C, which leads …

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Identity Theft Through Cell Phone Numbers?

Bankruptcy, Credit cards / By Matt Leichter

A couple years ago, I wrote about four ways identity theft could lead to New York bankruptcy. The notable candidates were theft of Social Security and credit card information. Now The New York Times has thought of a new type of identity theft: cell phone numbers. According to the article, landlines are rapidly going the …

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How Does Association Foreclosure Differ From Typical Mortgage Foreclosure?

Bankruptcy, Foreclosure, Mortgage / By Matt Leichter

The upfront short answer is: not a whole lot. A while ago I posed the question of what happens to homeowners or condominium fees in New York bankruptcy. This post is sort of a sequel. Many New Yorkers live in common-interest housing that charge either homeowner association (HOA) or condominium association (COA) fees. These fees …

How Does Association Foreclosure Differ From Typical Mortgage Foreclosure? Read More »

Use Secure Passwords to Protect Personal Information

Bankruptcy, Credit cards / By Matt Leichter

Stolen passwords and PINs can easily result in unauthorized purchases or fraudulent credit accounts. Debtors unable to undo the damage might face serious consequences, including New York bankruptcy. The issue of password security is also salient because stories of Democratic Party officials’ hacked emails made the news before the November election. It’s a good opportunity …

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What Happens to ‘Abandoned’ Personal Property After Foreclosure?

Bankruptcy, Foreclosure, Mortgage / By Matt Leichter

New York bankruptcy helps homeowners most when they are nearing foreclosure, not afterwards. The primary reason is that the automatic stay protects homeowners from debt collection and foreclosure efforts. Chapter 7 can buy debtors substantial time to sell their homes on their terms, like a short sale, or exempt its equity from the bankruptcy estate …

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NYT Discusses Program for Swapping Student Debt for Mortgage Debt

Bankruptcy, Debt, Mortgage / By Matt Leichter

One might think that The New York Times‘ “Your Money” article on a company that offers to swap student debt for mortgage debt is an advertisement, but it’s an alternative to New York bankruptcy worth considering. SoFi, a nonbank lender, with the help of the government mortgage entity Fannie Mae promises student debtors the opportunity …

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Education Department Publishes Regulations for ‘Borrower Defense’ Claims

Bankruptcy, Debt / By Matt Leichter

Back in February, I discussed the surge in student debt “borrower defense” discharge claims. Student debtors discovered an obscure 1995 rule that permitted them to administratively discharge—that is, outside the bankruptcy process—their student loans if they could show that their schools somehow defrauded them. The development occurred just as the for-profit Corinthian Colleges shuttered its …

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Matt Leichter