8/16/2013
This morning I got a call at 4.00 a.m. from a very distraught homeowner whose house was being sold at an foreclosure auction at 9.00 a.m. at the Miami-Dade Circuit Court. Mind you she did not have my cell number. The messaging service routed the call to my cell because the woman was crying and she needed to speak to "her" attorney right away. I do not know this person and have never represented her.
I spoke to her, and informed her that the only possible way she could top the foreclosure sale would be to file a bankruptcy [chapter 13 or a Chapter 7]. Before I could even ask her if she had ever filed a bankruptcy, she volunteered that she had filed a bankruptcy in May, 2013, and the case was dismissed. Upon investigation I found out that she was not eligible to file another bankruptcy because her case was dismissed with prejudice for 180 days from filing any kind of bankruptcy anywhere in the United States.
I ask her if there was anybody else on the deed or if there were any other defendants on the foreclosure lawsuit that could file a bankruptcy as that would stop the sale of the home. In this case there were no other defendants. I told her that she was probably out of luck and that the house would most probably get sold at the foreclosure sale. It is now 1.58 p.m. The house was sold at the foreclosure sale at 10.25 a.m. this morning. I feel very sad for her.
She then proceeded to tell me that she did not file the bankruptcy, but that the people who were helping her with the loan modification filed the bankruptcy for her. Okay, that is fine and dandy. But it does not help her today to save her home. Even if she had come to me a week ago, I could have done something for her. But this morning was too late.
People, be careful. The filing of a bankruptcy is a "privilege." Don't abuse the privilege because it will come to haunt you.
Here is the million dollar question: How many times can I file a bankruptcy.
Answer: it depends !!! If you are not seeking a discharge of your debts, you can file as many times as you can until a Bankruptcy Judge labels you a "serial filer," or "abuser" of the bankruptcy law, and then enters an Order prohibiting you from ever filing a bankruptcy in the USA. But I am sure you can always file one in Canada or the Bahamas.
The law allows you to file a Chapter 7 once in 8 years. You can file a Chapter 13 four years after you get a discharge in a Chapter 7, and get a discharge. However, in emergencies like a foreclosure sale or a garnishment, you can always file a Chapter 13 bankruptcy to invoke the protection of the Automatic Stay as long as there is no Order from the Bankruptcy Court prohibiting you from filing another bankruptcy.
My strategy is simple: if a Client comes to me, and I file him/her in a bankruptcy, and that case is dismissed for any reason, I immediately file a Motion to Reduce the Prejudice Period, attend a hearing and obtain an Order Reducing the Prejudice Period. This way the Client is protected just in case he or she has to file another bankruptcy within 6 months of the last dismissal.
Here is some suggestions:
1. Don't let realtors and loan modification specialists file you in any bankruptcy, and if they do, immediately after the filing, contact a bankruptcy lawyer and educate yourself on the law and process. I give FREE CONSULTATIONS to people in these situations.
2. Bankruptcy is a privilege. Don't abuse it !!!
3. Bankruptcy law is complex. Consult with a Bankruptcy Lawyer.
4. Many Bankruptcy Lawyers have payment plans. In Chapter 13 cases, legal fees can be paid through the Chapter 13 Plan.
5. If you file a bankruptcy just to stop a sale, and then let the case get dismissed, be careful. You are playing with fire. You may lose your home the second time around.
6. Bankruptcy is not a bad thing. It will not ruin you for the rest of your life. Your credit is already bad because you have defaulted on your credit cards, mortgages, car loans, etc. How much more can a bankruptcy affect you. Not much effect on your credit score. Besides credit can be fixes, repaired, and restored. Within 12 to 18 months of the filing of the bankruptcy, it is not uncommon for you to have a score of around 600 and more..
7. Bankruptcy can be used to get rid of debts and to reorganize your debts or save you home from a foreclosure sale, stop a garnishment, get rid of an IRS lien, 2nd mortgages, Association liens, etc.
If you are having trouble getting a Loan Modification, and you believe you have sufficient income to get one, contact me. The Bankruptcy Court has a new Loan Modification Mediation Program that is expected to help a lot of homeowners accomplish what they could before...that is get a loan modification.
LIFE IS SHORT. GET RID OF DEBTS !!!
Attorney
Elias Leonard Dsouza concentrates his practice on Bankruptcy [Chapter
7, 13 & 11,] Foreclosure Defense, Defense of Credit Card Lawsuits,
Credit Restoration, and Debt Settlement & Credit Counseling. Our
office also handles complex Civil Litigation, Business & Corporate
Transactions & Litigation, Employment Law, Collections, Creditor
representation, Real estate transactions, Personal Injury, Family Law,
Immigration, Landlord-Tenant law, Franchise Law, Tax Law and We Sue Debt
Collectors under the Fair Debt Collection Practices.
If you have questions on this Program, please call me at 954-358-5911.
MY MISSION:
I
am very passionate about helping consumers protect their rights, and my
goal is to compassionately and passionately help people reorganize
their debts, help them keep all or most of their property, save their
homes from Foreclosure, stop wage garnishments, and assist people to
“get a fresh financial start”. I am available to assist and advise you
on how to rebuild your credit and buy the new house or start the new
business that you always wanted to. This is a small law firm, and as
such, can and does provide personal service, professional
representation, and follow up. If you would like to learn
more about your options, contact me as soon as possible for a FREE INITIAL CONSULTATION so
that I can assist you through these difficult times. I also offer an affordable payment plan for legal fees.
Elias Leonard Dsouza, Esq.
"The best compliment you could ever give me is a referral."
A CONSUMER RIGHTS PROTECTION LAW FIRM
LIFE IS SHORT. GET RID OF DEBTS !!!
"Life is Short. Get Rid of Debts"
111 N. Pine Island Rd., Suite 205
Plantation, Florida 33324
Phone: 954-358-5911
Fax: 954-357-2267
www.DsouzaLegal.com
Skype: elias.leonard.dsouza
Skype: 954-762-7608
Http://Facebook.com/Elias.Leonard.Dsouza
Blog: http://dsouzalegal.blogspot.com
Friday, August 16, 2013
Thursday, August 15, 2013
When is the Right Time for me to File my Bankruptcy !!!!
Ah, I am glad you asked !!!
The timing of the Bankruptcy is very important. It may make a difference in whether your bankruptcy will "smooth sailing" or a "Tsunami".
Tax Refunds: Are you expecting a large tax refund. Don't file your bankruptcy. The Trustee will take your refund. Wait, get the refund, use it to pay your necessities, may be even pay the legal fees to your lawyer to file the bankruptcy, and then file your bankruptcy. True Story: A potential client once consulted with me [three times]. After the third time, of course she is an expert on bankruptcy law, files her own bankruptcy without a lawyer...and then the trouble starts. She is due a refund of $12,000. The Chapter 7 Trustee takes the refund, along with the car in which she had an equity of $6,000, and pays her creditors 100% of what they are owed. What did the filing of the bankruptcy do for her. Absolutely a waste.
Transfer: A "transfer" happens when a person contemplating for bankruptcy gives, donates, sells, transfers or gives up the rights or ownership of an asset to another person or business. For example, sale of a car, quit claim deed of real estate, pawning of jewelry, trading an old car for a new one, etc. etc. True Story: A potential client who consulted with me owned 2 condos paid for free and clear valued at $165,000. They owed $30,000 on their credit card debts. They did not retain me. They used a colleague of mine, and filed their bankruptcy about 6 months later. However, they failed to tell their attorney about the 2 condos which they had transferred via a quit claim deed to their daughter for "no value." Everything was going smooth [and I promise you I did not squeal on them. I would never do that. Attorney-Client Confidentiality.] The Chapter 7 Trustee somehow found out. Now they have an adversary complaint [a lawsuit] against them for denial of discharge. And the daughter is being sued to return the properties back to the bankruptcy estate. If you intend to transfer assets [my advice is 'don't do it.'] wait for 2 years under the bankruptcy law or if you want to be absolutely sure, wait for 4 years to get past the Florida Fraudulent Conveyance Act. Or better yet do some asset planning and don't file a bankruptcy. Once a Chapter 7 Trustee has his fangs around you, it is downhill from then on. Trustees are sharp people. Don't mess with them.
Exemptions: If you have have not lived in Florida for at least 730 days or more before the filing of the bankruptcy, you cannot use Florida's exemption. You have to use the Federal Exemptions or the State where you lived last and the most. True Story: This Client never consulted with me. This gentleman lived in California where he was being chased by creditors. To escape his creditors, he sells his mansion, and gets net proceeds of $400K. He moves to Florida the next day leaving behind a mountain of bills, and buys a home in Boca Raton for exactly the same amount. Two months later a local Palm Beach attorney files this person in a Bankruptcy. The Trustee objects to exemptions. The Court rules in favor of the Trustee. The Trustee sell the Debtor's home. The California creditors get almost 60% of their debt paid. Debtor is very unhappy and poor now. The good thing about this case is that the Trustee does not object to the Debtor's discharge.
Debts paid to family members: This is called a preference. Even paying your wife is considered a preference. The gist of the preference law is that you are preferring to pay the debts of your family members and friends rather than Visa and Mastercard. This is not allowed. True Story: Again this Client never consulted with me. I don't know her. She files a bankruptcy. Six months earlier she settled a personal injury lawsuit and received about $50,000. Immediately [as most moral people would do] she starts paying the debts she owed to her family members who had loaned her money when she was not working. She paid 2 sister, mother, father, and grandmother. The Trustee sued all these relatives, and objected to the discharge of the debtor. This story has a great ending. This must be one great family. All family member came together, spoke to the Trustee's attorney, and immediately agreed to pay the Trustee $50,000 plus his legal fees. The only thing they asked in return was that the Debtor get her discharge. Trustee agreed and everything ended up well after all. I give three cheers for this family. Most families would have turned on each other..but not this one.
Foreclosure Sales: You must file your bankruptcy before the home is sold. You cannot get your home back after the foreclosure sale [unless the creditor consents].
Garnishment: If you know a creditor is getting ready to execute on the judgment, the proper time is to file the bankruptcy before the Writ of Garnishment or Levy is issued by the Clerk. Once the Clerk enters the Writ, the Writ becomes a lien on that bank account, and it may be impossible [in some cases] to have that bank account or property released.
LIFE IS SHORT. GET RID OF DEBTS !!!
Attorney Elias Leonard Dsouza concentrates his practice on Bankruptcy [Chapter 7, 13 & 11,] Foreclosure Defense, Defense of Credit Card Lawsuits, Credit Restoration, and Debt Settlement & Credit Counseling. Our office also handles complex Civil Litigation, Business & Corporate Transactions & Litigation, Employment Law, Collections, Creditor representation, Real estate transactions, Personal Injury, Family Law, Immigration, Landlord-Tenant law, Franchise Law, Tax Law and We Sue Debt Collectors under the Fair Debt Collection Practices.
If you have questions on this Program, please call me at 954-358-5911.
MY MISSION:
I am very passionate about helping consumers protect their rights, and my goal is to compassionately and passionately help people reorganize their debts, help them keep all or most of their property, save their homes from Foreclosure, stop wage garnishments, and assist people to “get a fresh financial start”. I am available to assist and advise you on how to rebuild your credit and buy the new house or start the new business that you always wanted to. This is a small law firm, and as such, can and does provide personal service, professional representation, and follow up. If you would like to learn
more about your options, contact me as soon as possible for a FREE INITIAL CONSULTATION so
that I can assist you through these difficult times. I also offer an affordable payment plan for legal fees.
Elias Leonard Dsouza, Esq.
"The best compliment you could ever give me is a referral."
A CONSUMER RIGHTS PROTECTION LAW FIRM
LIFE IS SHORT. GET RID OF DEBTS !!!
"Life is Short. Get Rid of Debts"
111 N. Pine Island Rd., Suite 205
Plantation, Florida 33324
Phone: 954-358-5911
Fax: 954-357-2267
www.DsouzaLegal.com
Skype: elias.leonard.dsouza
Skype: 954-762-7608
Http://Facebook.com/Elias.Leonard.Dsouza
Blog: http://dsouzalegal.blogspot.com
The timing of the Bankruptcy is very important. It may make a difference in whether your bankruptcy will "smooth sailing" or a "Tsunami".
Tax Refunds: Are you expecting a large tax refund. Don't file your bankruptcy. The Trustee will take your refund. Wait, get the refund, use it to pay your necessities, may be even pay the legal fees to your lawyer to file the bankruptcy, and then file your bankruptcy. True Story: A potential client once consulted with me [three times]. After the third time, of course she is an expert on bankruptcy law, files her own bankruptcy without a lawyer...and then the trouble starts. She is due a refund of $12,000. The Chapter 7 Trustee takes the refund, along with the car in which she had an equity of $6,000, and pays her creditors 100% of what they are owed. What did the filing of the bankruptcy do for her. Absolutely a waste.
Transfer: A "transfer" happens when a person contemplating for bankruptcy gives, donates, sells, transfers or gives up the rights or ownership of an asset to another person or business. For example, sale of a car, quit claim deed of real estate, pawning of jewelry, trading an old car for a new one, etc. etc. True Story: A potential client who consulted with me owned 2 condos paid for free and clear valued at $165,000. They owed $30,000 on their credit card debts. They did not retain me. They used a colleague of mine, and filed their bankruptcy about 6 months later. However, they failed to tell their attorney about the 2 condos which they had transferred via a quit claim deed to their daughter for "no value." Everything was going smooth [and I promise you I did not squeal on them. I would never do that. Attorney-Client Confidentiality.] The Chapter 7 Trustee somehow found out. Now they have an adversary complaint [a lawsuit] against them for denial of discharge. And the daughter is being sued to return the properties back to the bankruptcy estate. If you intend to transfer assets [my advice is 'don't do it.'] wait for 2 years under the bankruptcy law or if you want to be absolutely sure, wait for 4 years to get past the Florida Fraudulent Conveyance Act. Or better yet do some asset planning and don't file a bankruptcy. Once a Chapter 7 Trustee has his fangs around you, it is downhill from then on. Trustees are sharp people. Don't mess with them.
Exemptions: If you have have not lived in Florida for at least 730 days or more before the filing of the bankruptcy, you cannot use Florida's exemption. You have to use the Federal Exemptions or the State where you lived last and the most. True Story: This Client never consulted with me. This gentleman lived in California where he was being chased by creditors. To escape his creditors, he sells his mansion, and gets net proceeds of $400K. He moves to Florida the next day leaving behind a mountain of bills, and buys a home in Boca Raton for exactly the same amount. Two months later a local Palm Beach attorney files this person in a Bankruptcy. The Trustee objects to exemptions. The Court rules in favor of the Trustee. The Trustee sell the Debtor's home. The California creditors get almost 60% of their debt paid. Debtor is very unhappy and poor now. The good thing about this case is that the Trustee does not object to the Debtor's discharge.
Debts paid to family members: This is called a preference. Even paying your wife is considered a preference. The gist of the preference law is that you are preferring to pay the debts of your family members and friends rather than Visa and Mastercard. This is not allowed. True Story: Again this Client never consulted with me. I don't know her. She files a bankruptcy. Six months earlier she settled a personal injury lawsuit and received about $50,000. Immediately [as most moral people would do] she starts paying the debts she owed to her family members who had loaned her money when she was not working. She paid 2 sister, mother, father, and grandmother. The Trustee sued all these relatives, and objected to the discharge of the debtor. This story has a great ending. This must be one great family. All family member came together, spoke to the Trustee's attorney, and immediately agreed to pay the Trustee $50,000 plus his legal fees. The only thing they asked in return was that the Debtor get her discharge. Trustee agreed and everything ended up well after all. I give three cheers for this family. Most families would have turned on each other..but not this one.
Foreclosure Sales: You must file your bankruptcy before the home is sold. You cannot get your home back after the foreclosure sale [unless the creditor consents].
Garnishment: If you know a creditor is getting ready to execute on the judgment, the proper time is to file the bankruptcy before the Writ of Garnishment or Levy is issued by the Clerk. Once the Clerk enters the Writ, the Writ becomes a lien on that bank account, and it may be impossible [in some cases] to have that bank account or property released.
LIFE IS SHORT. GET RID OF DEBTS !!!
Attorney Elias Leonard Dsouza concentrates his practice on Bankruptcy [Chapter 7, 13 & 11,] Foreclosure Defense, Defense of Credit Card Lawsuits, Credit Restoration, and Debt Settlement & Credit Counseling. Our office also handles complex Civil Litigation, Business & Corporate Transactions & Litigation, Employment Law, Collections, Creditor representation, Real estate transactions, Personal Injury, Family Law, Immigration, Landlord-Tenant law, Franchise Law, Tax Law and We Sue Debt Collectors under the Fair Debt Collection Practices.
If you have questions on this Program, please call me at 954-358-5911.
MY MISSION:
I am very passionate about helping consumers protect their rights, and my goal is to compassionately and passionately help people reorganize their debts, help them keep all or most of their property, save their homes from Foreclosure, stop wage garnishments, and assist people to “get a fresh financial start”. I am available to assist and advise you on how to rebuild your credit and buy the new house or start the new business that you always wanted to. This is a small law firm, and as such, can and does provide personal service, professional representation, and follow up. If you would like to learn
more about your options, contact me as soon as possible for a FREE INITIAL CONSULTATION so
that I can assist you through these difficult times. I also offer an affordable payment plan for legal fees.
Elias Leonard Dsouza, Esq.
"The best compliment you could ever give me is a referral."
A CONSUMER RIGHTS PROTECTION LAW FIRM
LIFE IS SHORT. GET RID OF DEBTS !!!
"Life is Short. Get Rid of Debts"
111 N. Pine Island Rd., Suite 205
Plantation, Florida 33324
Phone: 954-358-5911
Fax: 954-357-2267
www.DsouzaLegal.com
Skype: elias.leonard.dsouza
Skype: 954-762-7608
Http://Facebook.com/Elias.Leonard.Dsouza
Blog: http://dsouzalegal.blogspot.com
When and Why do people file a Chapter 13 Bankruptcy
There are 3 kinds of bankruptcies that individuals can file. Chapter 7, 11 & 13.
Today we will discuss why people file a Chapter 13 bankruptcy.
Chapter 13 Bankruptcy is a "Reorganization" bankruptcy. Reorganization means that you will pay some or part of your debts back. How much you will pay depends on various factors: Income, Assets, etc.
People file a Chapter 13 bankruptcy for one or more of the following reasons:
1. An intense desire for moral or personal reasons to pay back some of the debts.
2. To save or protect an asset or assets [cars, homes, personal property..stocks, bonds, etc.]
3. When one is not qualified to file a Chapter 7 because of high income or because the person has already filed a Chapter 7 earlier and received a discharge in the prior bankruptcy.
4. To deal with IRS tax issues.
Chapter 13 is a procedure for individuals with a regular source of income to reorganize their debt while under the protection of the Bankruptcy Court. Chapter 13 is similar to chapter 11, except, that its procedure is greatly streamlined and the creditors do not get to vote on whether the chapter 13 plan of reorganization is approved.
There are two primary situations where Chapter 13 is used the most. The first is to use Chapter 13 to stop a mortgage foreclosure and to propose a plan to catch mortgage payments over a period of time, i.e over 36 to 60 months. The filing of a chapter 13 case stops any foreclosure action and gives you an opportunity to catch the mortgage payments up-to-date over a 3-5 year plan. As part of the plan, your credit cards and other unsecured debt are put on hold and these creditors are paid a very small percentage (10 to 20%) over the life of the Plan, depending on your disposable income or the value of your non-exempt assets, also known as the “liquidation test, ” at the end of which time, these debts are completely forgiven.
Debts debts incurred through fraud cannot be discharged in a Chapter 13 Bankruptcy. However, the creditor has the burden of proving that you have committed fraud.
A Chapter 13 bankruptcy must be filed before your house is actually sold at a foreclosure sale. Once your house is sold at the Courthouse steps, it is usually too late to file a bankruptcy to save that property. You can still file a bankruptcy to get rid of the deficiency on that property.
The other major use of Chapter 13 is by individuals who do not have mortgage problems, but who are behind with their credit cards, loans, medical bills, and other unsecured debt, but for some reason cannot file a Chapter 7 (the usual reason is that these Debtors have previously filed and received a Chapter 7 in the last 8 years). In such cases, a chapter 13 plan is proposed with monthly payments over 3 to 5 years sufficient to pay in a typical case around 10 to 20 cents on the dollar. If a person has a lot of ”non-exempt” assets, the monthly plan payment will be a little higher, but still affordable to most people.
The payments under a chapter 13 plan are made on a monthly basis to the chapter 13 trustee, who then distributes the funds to all the creditors. The Bankruptcy Court requires that the monthly plan payments come directly from your wages. Therefore, a Wage Deduction Order is signed by the Bankruptcy Judge which instructs your employer to send money from your wages directly to the Chapter 13 Trustee. In some cases the Wage Deduction Order can be waived. This happens if you are working in the financial industry or you have a good faith belief that your job may be jeopardized if the employer finds out that you have filed a bankruptcy or employees working strictly on commissions and piece meal or as temps.
What will be my Plan Payment to my unsecured creditors [credit cards, medical bills, etc.]
How much you will pay to your unsecured creditors depends on various factor:
1. You have to make a good faith payment to your unsecured creditors. you cannot pay them $0.00.
2 . Income. You have to pay at 90% of your disposable income to your creditors. Gross Income minus Reasonable and Necessary Expenses equals Disposable Income.
3. Liquidation Test: If the Trustee were to take your non-exempt assets, and liquidate them for cash, how much money will be able to be distributed to the unsecured creditors. You have to pay at least that amount to your unsecured creditors through the Chapter 13 Plan.
4. A new formula is the CMI disposable income formula. We will discuss this later in another blog.
Whatever yields the most and the highest distribution to your creditors..is what you will pay through the plan. So if item # 2 yields $6,000, however, item # 3 will yield $10,000, then you will pay $10,000 through the Chapter 13 Plan to your unsecured creditors.
If you have questions on this Program, please call me at 954-358-5911.
MY MISSION:
I am very passionate about helping consumers protect their rights, and my goal is to compassionately and passionately help people reorganize their debts, help them keep all or most of their property, save their homes from Foreclosure, stop wage garnishments, and assist people to “get a fresh financial start”. I am available to assist and advise you on how to rebuild your credit and buy the new house or start the new business that you always wanted to. This is a small law firm, and as such, can and does provide personal service, professional representation, and follow up. If you would like to learn
more about your options, contact me as soon as possible for a FREE INITIAL CONSULTATION so
that I can assist you through these difficult times. I also offer an affordable payment plan for legal fees.
Elias Leonard Dsouza, Esq.
"The best compliment you could ever give me is a referral."
A CONSUMER RIGHTS PROTECTION LAW FIRM
LIFE IS SHORT. GET RID OF DEBTS !!!
"Life is Short. Get Rid of Debts"
111 N. Pine Island Rd., Suite 205
Plantation, Florida 33324
Phone: 954-358-5911
Fax: 954-357-2267
www.DsouzaLegal.com
Skype: elias.leonard.dsouza
Skype: 954-762-7608
Http://Facebook.com/Elias.Leonard.Dsouza
Blog: http://dsouzalegal.blogspot.com
Today we will discuss why people file a Chapter 13 bankruptcy.
Chapter 13 Bankruptcy is a "Reorganization" bankruptcy. Reorganization means that you will pay some or part of your debts back. How much you will pay depends on various factors: Income, Assets, etc.
People file a Chapter 13 bankruptcy for one or more of the following reasons:
1. An intense desire for moral or personal reasons to pay back some of the debts.
2. To save or protect an asset or assets [cars, homes, personal property..stocks, bonds, etc.]
3. When one is not qualified to file a Chapter 7 because of high income or because the person has already filed a Chapter 7 earlier and received a discharge in the prior bankruptcy.
4. To deal with IRS tax issues.
Chapter 13 is a procedure for individuals with a regular source of income to reorganize their debt while under the protection of the Bankruptcy Court. Chapter 13 is similar to chapter 11, except, that its procedure is greatly streamlined and the creditors do not get to vote on whether the chapter 13 plan of reorganization is approved.
There are two primary situations where Chapter 13 is used the most. The first is to use Chapter 13 to stop a mortgage foreclosure and to propose a plan to catch mortgage payments over a period of time, i.e over 36 to 60 months. The filing of a chapter 13 case stops any foreclosure action and gives you an opportunity to catch the mortgage payments up-to-date over a 3-5 year plan. As part of the plan, your credit cards and other unsecured debt are put on hold and these creditors are paid a very small percentage (10 to 20%) over the life of the Plan, depending on your disposable income or the value of your non-exempt assets, also known as the “liquidation test, ” at the end of which time, these debts are completely forgiven.
Debts debts incurred through fraud cannot be discharged in a Chapter 13 Bankruptcy. However, the creditor has the burden of proving that you have committed fraud.
A Chapter 13 bankruptcy must be filed before your house is actually sold at a foreclosure sale. Once your house is sold at the Courthouse steps, it is usually too late to file a bankruptcy to save that property. You can still file a bankruptcy to get rid of the deficiency on that property.
The other major use of Chapter 13 is by individuals who do not have mortgage problems, but who are behind with their credit cards, loans, medical bills, and other unsecured debt, but for some reason cannot file a Chapter 7 (the usual reason is that these Debtors have previously filed and received a Chapter 7 in the last 8 years). In such cases, a chapter 13 plan is proposed with monthly payments over 3 to 5 years sufficient to pay in a typical case around 10 to 20 cents on the dollar. If a person has a lot of ”non-exempt” assets, the monthly plan payment will be a little higher, but still affordable to most people.
The payments under a chapter 13 plan are made on a monthly basis to the chapter 13 trustee, who then distributes the funds to all the creditors. The Bankruptcy Court requires that the monthly plan payments come directly from your wages. Therefore, a Wage Deduction Order is signed by the Bankruptcy Judge which instructs your employer to send money from your wages directly to the Chapter 13 Trustee. In some cases the Wage Deduction Order can be waived. This happens if you are working in the financial industry or you have a good faith belief that your job may be jeopardized if the employer finds out that you have filed a bankruptcy or employees working strictly on commissions and piece meal or as temps.
What will be my Plan Payment to my unsecured creditors [credit cards, medical bills, etc.]
How much you will pay to your unsecured creditors depends on various factor:
1. You have to make a good faith payment to your unsecured creditors. you cannot pay them $0.00.
2 . Income. You have to pay at 90% of your disposable income to your creditors. Gross Income minus Reasonable and Necessary Expenses equals Disposable Income.
3. Liquidation Test: If the Trustee were to take your non-exempt assets, and liquidate them for cash, how much money will be able to be distributed to the unsecured creditors. You have to pay at least that amount to your unsecured creditors through the Chapter 13 Plan.
4. A new formula is the CMI disposable income formula. We will discuss this later in another blog.
Whatever yields the most and the highest distribution to your creditors..is what you will pay through the plan. So if item # 2 yields $6,000, however, item # 3 will yield $10,000, then you will pay $10,000 through the Chapter 13 Plan to your unsecured creditors.
Attorney Elias Leonard Dsouza concentrates his practice on Bankruptcy [Chapter 7, 13 & 11,] Foreclosure Defense, Defense of Credit Card Lawsuits, Credit Restoration, and Debt Settlement & Credit Counseling. Our office also handles complex Civil Litigation, Business & Corporate Transactions & Litigation, Employment Law, Collections, Creditor representation, Real estate transactions, Personal Injury, Family Law, Immigration, Landlord-Tenant law, Franchise Law, Tax Law and We Sue Debt Collectors under the Fair Debt Collection Practices.
If you have questions on this Program, please call me at 954-358-5911.
MY MISSION:
I am very passionate about helping consumers protect their rights, and my goal is to compassionately and passionately help people reorganize their debts, help them keep all or most of their property, save their homes from Foreclosure, stop wage garnishments, and assist people to “get a fresh financial start”. I am available to assist and advise you on how to rebuild your credit and buy the new house or start the new business that you always wanted to. This is a small law firm, and as such, can and does provide personal service, professional representation, and follow up. If you would like to learn
more about your options, contact me as soon as possible for a FREE INITIAL CONSULTATION so
that I can assist you through these difficult times. I also offer an affordable payment plan for legal fees.
Elias Leonard Dsouza, Esq.
"The best compliment you could ever give me is a referral."
A CONSUMER RIGHTS PROTECTION LAW FIRM
LIFE IS SHORT. GET RID OF DEBTS !!!
"Life is Short. Get Rid of Debts"
111 N. Pine Island Rd., Suite 205
Plantation, Florida 33324
Phone: 954-358-5911
Fax: 954-357-2267
www.DsouzaLegal.com
Skype: elias.leonard.dsouza
Skype: 954-762-7608
Http://Facebook.com/Elias.Leonard.Dsouza
Blog: http://dsouzalegal.blogspot.com
Tuesday, August 13, 2013
Court Rules Borrowers Can Fight Bank's Decision to Deny Modification
Homeowners who are denied a modification under the Home Affordable Modification Program (HAMP) even after completing a trial period plan (TPP) have legal standing to sue their lender, the 9th U.S. Circuit Court of Appeals in San Francisco ruled Thursday.
The ruling reversed a lower district court dismissal that concluded Wells Fargo was not required to offer borrowers a modification if the bank did not send a signed modification agreement.
The ruling reversed a lower district court dismissal that concluded Wells Fargo was not required to offer borrowers a modification if the bank did not send a signed modification agreement.
The federal appeals court decision, however, ruled that Wells Fargo
actually was contractually required to offer the plaintiffs a permanent
mortgage modification since the plaintiffs submitted accurate financial
documents and completed their trial period plan.
“The panel held that the district court should not have dismissed the plaintiffs’ complaints when the record before it showed that the bank had accepted and retained the payments demanded by the TPP,” the court opinion stated.
The ruling was based on two lawsuits from borrowers who filed separate actions against Wells Fargo. In Corvello v. Wells Fargo Bank, NA and Lucia v. Wells Fargo Bank, NA, the plaintiffs alleged that the bank offered them a trial period plan with the promise of a permanent modification, but after they completed the trial, the bank did not offer them a permanent modification or send them a notification of ineligibility.
The panel in the federal appeals court also cited a prior case, Wigod v. Wells Fargo Bank, NA, in its ruling. In Wigod, the 7th Circuit Court of Appeals found Wells Fargo’s interpretation of the trial period plan could allow banks to avoid obligations to modify borrowers simply by deciding not to send a signed modification agreement even if the borrower submitted accurate financial documents and the required trial payments.
This Article is from the DSNew.com
If you have questions on this Program, please call me at 954-358-5911.
MY MISSION:
I am very passionate about helping consumers protect their rights, and my goal is to compassionately and passionately help people reorganize their debts, help them keep all or most of their property, save their homes from Foreclosure, stop wage garnishments, and assist people to “get a fresh financial start”. I am available to assist and advise you on how to rebuild your credit and buy the new house or start the new business that you always wanted to. This is a small law firm, and as such, can and does provide personal service, professional representation, and follow up. If you would like to learn
more about your options, contact me as soon as possible for a FREE INITIAL CONSULTATION so
that I can assist you through these difficult times. I also offer an affordable payment plan for legal fees.
Elias Leonard Dsouza, Esq.
"The best compliment you could ever give me is a referral."
A CONSUMER RIGHTS PROTECTION LAW FIRM
LIFE IS SHORT. GET RID OF DEBTS !!!
"Life is Short. Get Rid of Debts"
111 N. Pine Island Rd., Suite 205
Plantation, Florida 33324
Phone: 954-358-5911
Fax: 954-357-2267
www.DsouzaLegal.com
Skype: elias.leonard.dsouza
Skype: 954-762-7608
Http://Facebook.com/Elias.Leonard.Dsouza
Blog: http://dsouzalegal.blogspot.com
“The panel held that the district court should not have dismissed the plaintiffs’ complaints when the record before it showed that the bank had accepted and retained the payments demanded by the TPP,” the court opinion stated.
The ruling was based on two lawsuits from borrowers who filed separate actions against Wells Fargo. In Corvello v. Wells Fargo Bank, NA and Lucia v. Wells Fargo Bank, NA, the plaintiffs alleged that the bank offered them a trial period plan with the promise of a permanent modification, but after they completed the trial, the bank did not offer them a permanent modification or send them a notification of ineligibility.
The panel in the federal appeals court also cited a prior case, Wigod v. Wells Fargo Bank, NA, in its ruling. In Wigod, the 7th Circuit Court of Appeals found Wells Fargo’s interpretation of the trial period plan could allow banks to avoid obligations to modify borrowers simply by deciding not to send a signed modification agreement even if the borrower submitted accurate financial documents and the required trial payments.
This Article is from the DSNew.com
By: Esther Cho
Attorney Elias Leonard Dsouza concentrates his practice on Bankruptcy [Chapter 7, 13 & 11,] Foreclosure Defense, Defense of Credit Card Lawsuits, Credit Restoration, and Debt Settlement & Credit Counseling. Our office also handles complex Civil Litigation, Business & Corporate Transactions & Litigation, Employment Law, Collections, Creditor representation, Real estate transactions, Personal Injury, Family Law, Immigration, Landlord-Tenant law, Franchise Law, Tax Law and We Sue Debt Collectors under the Fair Debt Collection Practices.
If you have questions on this Program, please call me at 954-358-5911.
MY MISSION:
I am very passionate about helping consumers protect their rights, and my goal is to compassionately and passionately help people reorganize their debts, help them keep all or most of their property, save their homes from Foreclosure, stop wage garnishments, and assist people to “get a fresh financial start”. I am available to assist and advise you on how to rebuild your credit and buy the new house or start the new business that you always wanted to. This is a small law firm, and as such, can and does provide personal service, professional representation, and follow up. If you would like to learn
more about your options, contact me as soon as possible for a FREE INITIAL CONSULTATION so
that I can assist you through these difficult times. I also offer an affordable payment plan for legal fees.
Elias Leonard Dsouza, Esq.
"The best compliment you could ever give me is a referral."
A CONSUMER RIGHTS PROTECTION LAW FIRM
LIFE IS SHORT. GET RID OF DEBTS !!!
"Life is Short. Get Rid of Debts"
111 N. Pine Island Rd., Suite 205
Plantation, Florida 33324
Phone: 954-358-5911
Fax: 954-357-2267
www.DsouzaLegal.com
Skype: elias.leonard.dsouza
Skype: 954-762-7608
Http://Facebook.com/Elias.Leonard.Dsouza
Blog: http://dsouzalegal.blogspot.com
New Loan Modification Mediation Program introduced in the U.S. Bankruptcy Court Southern District of Florida
On April 1, 2013, the U.S. Bankruptcy Court for the Southern District of Florida unveiled a new Loan Modification Mediation [LMM] Program through a Chapter 13 and Chapter 11 Bankruptcy.
If you have ever applied for a Loan Modification, you know how frustrating the loan modification process is. You are probably familiar with the the following situations:
The New Loan Modification Mediation Program
through a Chapter 13 and Chapter 11 Bankruptcy removes all of the above hurdles. This Program
has been in use in the Orlando district and has had a 73% success rate. The possibility of getting a Loan Modification on your primary home or even an investment property is much greater through the Bankruptcy Court's LMM Program.
Here are some of the highlights of the LMM Program
There is ACCOUNTABILITY, and a
Bankruptcy Judge oversees the process. Here is what you get under this New
Program:
YOU
ARE QUALIFIED EVEN IF YOU HAVE FILED A PRIOR CHAPTER 7 OR A CHAPTER 13
BANKRUPTCY AND RECEIVED A DISCHARGE.
Attorney Elias Leonard Dsouza concentrates his practice on Bankruptcy [Chapter 7, 13 & 11,] Foreclosure Defense, Defense of Credit Card Lawsuits, Credit Restoration, and Debt Settlement & Credit Counseling. Our office also handles complex Civil Litigation, Business & Corporate Transactions & Litigation, Employment Law, Collections, Creditor representation, Real estate transactions, Personal Injury, Family Law, Immigration, Landlord-Tenant law, Franchise Law, Tax Law and We Sue Debt Collectors under the Fair Debt Collection Practices.
If you have questions on this Program, please call me at 954-358-5911.
MY MISSION:
I am very passionate about helping consumers protect their rights, and my goal is to compassionately and passionately help people reorganize their debts, help them keep all or most of their property, save their homes from Foreclosure, stop wage garnishments, and assist people to “get a fresh financial start”. I am available to assist and advise you on how to rebuild your credit and buy the new house or start the new business that you always wanted to. This is a small law firm, and as such, can and does provide personal service, professional representation, and follow up. If you would like to learn
more about your options, contact me as soon as possible for a FREE INITIAL CONSULTATION so
that I can assist you through these difficult times. I also offer an affordable payment plan for legal fees.
Elias Leonard Dsouza, Esq.
"The best compliment you could ever give me is a referral."
A CONSUMER RIGHTS PROTECTION LAW FIRM
"Life is Short. Get Rid of Debts"
111 N. Pine Island Rd., Suite 205
Plantation, Florida 33324
Phone: 954-358-5911
Fax: 954-357-2267
www.DsouzaLegal.com
Skype: elias.leonard.dsouza
Skype: 954-762-7608
Http://Facebook.com/Elias.Leonard.Dsouza
Blog: http://dsouzalegal.blogspot.com
If you have ever applied for a Loan Modification, you know how frustrating the loan modification process is. You are probably familiar with the the following situations:
1.
Dealing with multiple bank representatives and getting
no results.
2.
Lost paperwork.
3.
Repeated request for the same documents over and over
again.
4.
Modification Denials without giving a specific reason.
Here are some of the highlights of the LMM Program
1. No more lost
documents because all documents are uploaded on a Internet Portal for all parties to
review and make a decision. Parties include the Lender, Homeowner, and the Mediator. The portal is safe, and the general public cannot access your personal information.
2.
The Bankruptcy
Judge enters Orders where the duties of all parties are clearly spelled out,
and if the parties [including the homeowner] fail to do what they are supposed to do, the Court can issue sanctions.
3.
Banks have to mediate in “good faith” and have to give
you a reason if they expect to deny the Loan Modification.
4.
You do not have to deal with multiple bank
representatives.
5.
The Mediator acts as a facilitator to help You in the
Loan Modification process.
6.
If you are denied a Modification, you can have a second bite at the
apple, and request another mediation if circumstances [financial] have changed.
7.
You are allowed to do a “short sale” of the property
and waive the deficiency through this program.
8.
You can do a “deed in lieu of foreclosure” through
this Program and be discharged from all liability on the mortgage.
Attorney Elias Leonard Dsouza concentrates his practice on Bankruptcy [Chapter 7, 13 & 11,] Foreclosure Defense, Defense of Credit Card Lawsuits, Credit Restoration, and Debt Settlement & Credit Counseling. Our office also handles complex Civil Litigation, Business & Corporate Transactions & Litigation, Employment Law, Collections, Creditor representation, Real estate transactions, Personal Injury, Family Law, Immigration, Landlord-Tenant law, Franchise Law, Tax Law and We Sue Debt Collectors under the Fair Debt Collection Practices.
If you have questions on this Program, please call me at 954-358-5911.
MY MISSION:
I am very passionate about helping consumers protect their rights, and my goal is to compassionately and passionately help people reorganize their debts, help them keep all or most of their property, save their homes from Foreclosure, stop wage garnishments, and assist people to “get a fresh financial start”. I am available to assist and advise you on how to rebuild your credit and buy the new house or start the new business that you always wanted to. This is a small law firm, and as such, can and does provide personal service, professional representation, and follow up. If you would like to learn
more about your options, contact me as soon as possible for a FREE INITIAL CONSULTATION so
that I can assist you through these difficult times. I also offer an affordable payment plan for legal fees.
Elias Leonard Dsouza, Esq.
"The best compliment you could ever give me is a referral."
A CONSUMER RIGHTS PROTECTION LAW FIRM
"Life is Short. Get Rid of Debts"
111 N. Pine Island Rd., Suite 205
Plantation, Florida 33324
Phone: 954-358-5911
Fax: 954-357-2267
www.DsouzaLegal.com
Skype: elias.leonard.dsouza
Skype: 954-762-7608
Http://Facebook.com/Elias.Leonard.Dsouza
Blog: http://dsouzalegal.blogspot.com
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