Debts Which Cannot Be Discharged in Bankruptcy?


Debts You Still Have to Pay After Bankruptcy

- You still have to pay fine and penalties for violating the law and that includes your traffic tickets and criminal fines and criminal restitution.
– You still have to pay debts you have not included in your bankruptcy papers.
– Students loans are not dischargeable in bankruptcy court and filings unless it is a very hardship case and judge decides it separately.
– Again, child support and alimony cannot be discharged via bankruptcy.
– Your settlement from a divorce or separation cannot be subject to discharge in a bankruptcy proceeding.
– Fraudulent debts cannot be discharged.
– Debts for personal injuries or death caused by your intoxicated driving and
– Recent IRS collections and other tax dues.

Divorce and Bankruptcy?


Filing of Bankruptcy During Divorce
Along with some narrow exceptions, the law of automatic stay does applies to divorce proceedings. It would prevent completion of divorce until the stay is lifted or expired or is terminated. A spouse can request the court asking for the motion to lift the stay to complete the divorce process. Failure to seek relief from stay can lead to swift contempt penalties from the court. It can be used as an abusive process as one spouse is abandoning its responsibilities toward the distribution of marital assets in community states like Nevada. The combination of both bankruptcy and divorce are done in different judicial forums as bankruptcy is filed in federal courts and divorce is filed in district courts on a state level and their interaction is dangerous to the interests of clients. It is complex and should be avoided

Tenant Eviction and Bankruptcy


New Laws in Landlord Tenancy and Bankruptcy?
Let us say if you are behind on rent payments, can your landlord evict you while you file for bankruptcy?
This question has been asked many times from our clients. We had tried to answer it in simple ways here. The answer depends upon whether your residential landlord has only threatened to evict you or in fact got an eviction judgment against you. The new bankruptcy law has changed this equation for ever. Under this law, if your landlord has already begun eviction proceedings in state court and has obtained a judgment for possession of the residential premises before you file for bankruptcy, the landlord can evict you unless, the debtor do two things.
1. File a certification with the bankruptcy court, along with your bankruptcy petition, that there are circumstances under applicable non bankruptcy rules that would allow you reinstate the residential lease and cure the monetary default; and

(2) pay 30 days rent to the bankruptcy court clerk to be transmitted to the landlord. The landlord can still object, in which case the bankruptcy court must decided within ten days of the filing of the objection whether the landlord can proceed with the eviction in order to gain possession of the rental property. Then you must also file a second certification with the bankruptcy court, within thirty days of filing your bankruptcy petition, stating the pre-petition default that gave rise to the landlord’s judgment for possession in state court has been cured –in other words, that you have paid all back rent. Even after you file this second certification, however, the landlord may still object, in which case the court must determine within ten days of the objection whether the landlord can proceed with the eviction action.
The law also provides that, if the residential landlord has begun eviction proceedings before you file for bankruptcy on the grounds that you have endangered the rental property or have used or allowed others to use illegal substances on the property, all the landlord has to do is file a certification to this effect with the bankruptcy court clerk. The landlord can then proceed with the eviction process fifteen days later if the debtor does not object. Note that the law does allow you to object within fifteen days and, at a hearing, show the bankruptcy court that the situation has been remedies or never existed in the first place. At that point, it will be up to the bankruptcy court to decide whether your landlord can proceed or not. The deadlines in these kinds of situations are very short. It is good to contact an experienced and knowledgeable attorney in these matters.

What Are the Advantages of Filing Bankruptcy


Advantages of Filing Bankruptcy?
Filing for bankruptcy allows most of the depressed folks a fresh financial start. Your debts are discharged and all the collection efforts are stopped immediately. Sooner you file for bankruptcy, an automatic stay is placed on the collection calls. If a creditors continues to collect, the creditor may be held in contempt of court and there are hefty penalties. There are also laws which stops and punishes all kinds of discrimination against people who declares bankruptcy.

What are problem debts and how to handle them in bankruptcy?


What are Problem Debts?
Your debts far exceed your income. You are behind on your payments including your mortgage payments and other bills, and your creditors are constantly harassing you. You become sick few months ago, and could not pay the medical bills on time, and now your phone is ringing off the hook. Many Americans find themselves in this situation. The creditor’s keeps calling and the debt just keeps growing.
Bankruptcy is one of the alternatives available for relieving financial distress. It is a serious legal procedure and needs lots of both technical and legal help. Let us first explore about the alternatives to bankruptcy. Some people in this financial distress can improve their situations simply by contacting and directly negotiating with the creditors. Others may seek help with reputable consumer credit counseling services which have experienced negotiators with the creditors and formulating and establishing repayments plans. Bankruptcy should be taken as a last resort and not the first thing in this distressed decision making time.
Alternatives to Bankruptcy
A creditor might be willing to give you a break in giving more time for your payments. Also, a creditor might be willing to settle for cash a large onetime payment for the total debts. Again, it might be willing to settle its claims in exchange for partial cash payments, or it may be willing to extend the terms of the payments. These extensions and smaller payments over a considerably larger period of time may give you some relief.
Are you judgment Proof?
A judgment proof person is one who has not many tangible assets and most of his income is exempted already from garnishment. Again a judgment proof person has little or no money, no assets and no property that he would be unable to pay even if a judgment by a court of law is rendered against him. There are wide varieties of both state and federal laws which can make him/her exempt. When creditors would do their final analysis, they would consider it more convenient not to go after this judgment proof person because there is nothing they can take by way of judgment enforcement and execution. It is a futile exercise and waste of money seeking judgment against judgment proof folks. Your creditors would spent considerable amount of money in obtaining both judgment and then executing, and would be shocked and embarrassed when they don’t find any way to execute this against you. But your creditors may come back and keeps looking for avenue to satisfy your judgment sooner you get more property than what it originally made you a judgment proof individual.
Contacting your creditors
Again, it is a good idea to contact your creditors directly if you have more assets than a judgment proof may have. No need to hide them. It is good to pick up the phone and talk directly to your creditors. You can request a reduction in your monthly payments, as well as reduction in your interest rate. You also can obtain the help of some of the reputable credit counseling agencies. You can find the nearest CCCS by calling 800-388-22277 or by visiting http://www.nfcc.orga. Some do charge some money, but it is worth to pay this amount in exchange for very valuable help. Make sure you read all the finger prints and ask lots of questions. THE CCCS make repayment plans which are distributed among your creditors until your debts are fully paid. It can be lengthy time which can also repair some of your damaged credit and increase your FICO scores. Please be careful, however, with the for-profit agencies. Sometime there are sharks sitting in these turbulent waters. Keep in mind and look for predatory debt counselors. Be sure to check their references in the Better Business Bureau and ensures that it is approved by the US trustee for credit counseling in the bankruptcy operations.
What things to be considered in debt consolidation?A debt consolidation can ideally be too true, but it still is ideal for folks who do not like to declare bankruptcy and especially if their debts can be managed and they have the paying capacities. One should be careful in having a permanent interest rate when consolidating their debts. Again, watch out for a prepayment penalty? Are you surrendering something like a plastic card for permanent use? It is not a bad idea to do that. It is not worth any consolidation, if you keep on using your credit cards during this time. It is good to put them in a shredder once for all.
Can you Do Your Debt Consolidation at Your Own?
Of course, you can do it. You can at least do one habit right away. Start watching the financial news and read some good financial magazines. Pick up the phone and talk to your creditors and tell them your desire to consolidate debt. They would let you talk to some important and knowledgeable person. If you are eager to find a resolution, your creditors would also be eager to lend you a helping hand. You can always ask your creditors to forego the late fees, the penalties. Get everything in writing before making payments. Never give them the access to your checking account numbers

Bank of America Sued for Foreclosing on Wrong Home


Banks in their zeal to foreclose are forgetting the basic principal of due diligence and foresight. Bank of America, by far is, the most despicable bank in its response to loan modification request. Its customer service is horrible, slow, lazy and would tell you quite often that they never received faxes, letters or financial statements despite you sending them many times. It has eaten up lots of bailout money, very slow in customer service and in doing loan modification, continuously lose all the papers sent to them, and mostly manned by rude customer and loss mitigation people. These folks have no basic milk of human kindness. Their stock is continuously going lower everyday but still they are not learning any lesson. This news came from Florida where the homeowners paid all cash for his home yet BOA still foreclosed their home.

http://www.law.com/jsp/article.jsp?id=1202439609936

Who Is MERS? Why They Hold Millions of Loans? Tracking Loans Through a Firm


Almost every one of us has heard about MERS but do not exactly know who they are and what they do? Is MERS some kind of alien entity. In fact, yes, it is an electronic entity.

MERS is an entity which would foreclosure your home even though it has no physical presence anywhere. Under the rules of civil procedure only a real party in interest can sue or be sued, and MERS is an electronic entity and not a real party in interest. MERS never lent anyone a single penny, and never signed any disclosure papers, but still they like to foreclose your home. Why?
Here, is an interesting article about the role of MERS and what they do?

http://www.nytimes.com/2009/04/24/business/24mers.html?_r=1&pagewanted=print