With Tennessee again leading the nation in bankruptcy filings, it is no surprise that instances of mortgage fraud are on the increase throughout the state. According to the FBI, there are two categories of mortgage fraud - fraud for property and fraud for profit.
Fraud for property involves situations where a homeowner misrepresents his income and/or net worth on a loan application in order to qualify for a mortgage. The homeowner's intentions may be to remain in his house and repay th... Read Full Story
Where do John McCain and Barack Obama stand on the nation's housing crisis? on bankruptcy reform, on economic issues that affect Americans fighting to avoid bankruptcy. Reuters news service has published a useful summary, which I am reprinting here:
McCain:
1. Proposes to spend up to $10 billion to allow some homeowners to trade high-interest, adjustable-rate mortgages for fixed-rate loans.
2. Proposes a suspension of the 18.4-cent federal gas tax and 24.4-cent diesel tax during the sum... Read Full Story
USA Today reported in today's edition that complaints against debt collectors have reached an all-time high. The Better Business Bureau reports at 26% increase in complaints in 2007, and attorneys general in many States are pursuing actions against collection agencies for false and misleading activities.
In discussing debt collection tactics with our bankruptcy clients, it appears that there are some debt collectors that will do or say anything to intimidate a debtor into paying an over... Read Full Story
Part of the bankruptcy work that Clark and Washington does with our Chapter 13 clients involves the creation of a budget that will become part of the bankruptcy petition and filed with the clerk of bankruptcy court.
By law, Chapter 13 cases must last a minimum of 3 years, although many of the Chapter 13 cases we file will end up lasting 5 years.
It is hard enough to prepare a budget for the next six months - how can anyone possibly predict 5 years into the future? There is no absolute answer... Read Full Story
The National Bankruptcy Research Center, a data research company, reports that Tennessee holds the distinction of having the highest per capita number of bankruptcy filings in the country. According to the NBRC, Tennesseans are filing bankruptcy at a rate that will result in an annual bankruptcy filing rate of one out of every 56 households.
The NBRC did not comment as to why Tennessee has so many bankruptcy filings, but we at Clark and Washington actually see a large number of filers and we... Read Full Story
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After you file a Chapter 7 or a Chapter 13 bankruptcy, you will be required to attend a brief hearing called a Section 341 Meeting of Creditors. Bankruptcy professionals usually refer to this hearing as a "341 hearing."
Your 341 hearing will be held between 30 and 45 days after you file and it will last about 5 to 10 minutes. Although nothing final happens at your 341 hearing and most of the questions are fairly simple, you may be concerned about this hearing.... Read Full Story
Every week, Clark and Washington gets calls from elderly clients asking for information about bankruptcy because of unmanageable debt. And all too often, this debt arises because the senior overspent on television home shopping programs or because the senior succomed to the pitch of a telemarketer.
Last year the New York Times ran a story called "Bilking the Elderly, With a Corporate Twist." The story documents the process of how mailing list vendors compile detailed inf... Read Full Story
As you may have read, one of the practical implications of the October, 2005 changes to the bankruptcy law has been to "push" debtors away from Chapter 7 and into Chapter 13. Chapter 13 is still a form of bankruptcy and it is a very powerful tool, but you need to be very careful at the outset of your case to make sure that you and your lawyer create a liveable and reasonable budget.
Clark and Washington sees dozens of clients each month in our five Tampa/St. Pete offices and o... Read Full Story
Frequently, we meet with potential clients who have significant tax debt in addition to credit card, vehicle loan or mortgage debt. In some cases, the tax problem is the factor that led a person to call our office. In those cases where tax problems are the driving force behind the consultation, we have to consider whether the client is better off filing bankruptcy or pursuing a negotiated settlement with the IRS.
The IRS has a number of programs available to indivduals who have in... Read Full Story
One of the most controversial topics arising from the BAPCPA changes ot the bankruptcy law has to do with the so-called "hanging paragraph" of Section 1325(a). Stated simply, Section 1325(a) does not clearly address what happens in a Chapter 13 if a debtor surrenders a vehicle back to a secured creditor if the vehicle is worth less than the outstanding claim.
Example: Tom has a 2005 Chevrolet worth $10,000. GMAC holds a lien against that vehicle totaling $14,000.&n... Read Full Story
