Friday, July 8, 2016

Correcting Your Credit Report:


The federal Fair Credit Reporting Act (FCRA) provides a consumer with certain rights regarding his file in the credit bureau. The FCRA was enacted to promote the accuracy, fairness, and privacy of information in the files of a credit bureau.

Credit bureaus may generally report accurate negative information on your credit report for up to seven years and bankruptcy information for up to ten years. Under the law, credit bureaus are also called "credit reporting agencies.". You may obtain a free copy of your credit report once every 12 months from each of the three major credit bureaus at www.annualcreditreport.com.

A consumer has the right to dispute inaccurate or outdated information on his credit report under the FCRA. The credit bureau and the provider of the information (such as the credit card company or other lender) have the duty to correct inaccurate or outdated information. You may dispute the information on the credit report with both the credit bureau and the provider of the information. The credit bureau must generally investigate the disputed item within 30 days. When the investigation is complete, the credit bureau must give a person the written results.

Tuesday, July 5, 2016

Credit Counseling Prior to Bankruptcy

The bankruptcy code requires that an individual seeking to file for bankruptcy relief must take a certain approve credit counseling course during the 180 days prior to the filing of the case. The course must be take from an approved nonprofit budget and credit counseling agency. The course may be taken in person, telephone, or on the internet.

The clerk of the bankruptcy courts maintain a list of the approved credit counseling agencies. The office of the U.S. Trustee approves these agencies pursuant to its criteria.

Sunday, July 3, 2016

Mortgage Modification under the Bankruptcy Court's New "Mortgage Modification Mediation" Program

The Bankruptcy Courts in Miami has program to help people get a mortgage modification and help them save their home from foreclosure as part of their  chapter 13 bankruptcy case.

The program is called "Mortgage Modification Mediation" (MMM). It is available for homeowners and certain investment property owners who are seeking a modification of their mortgage and may be facing foreclosure of the mortgages on their property.  As part of the MMM program, the Bankruptcy Court appoints a mediator to work with the debtor and their bankruptcy attorney in reaching an agreement.  MMM has been successful in about 80% of the cases in other parts of Florida that previously instituted the program. One advantage of this program is that it provides for better communication with the mortgage lender in the process of negotiating a mortgage modification. A mediator is appointed by the Bankruptcy Court to help the parties negotiate an agreement.

As part of this process, an order is issued by the Bankruptcy Court requiring your mortgage lender to register with the internet portal and negotiate with you for a mortgage modification. The documents that are needed for the mortgage company to consider the mortgage for a modification are submitted on an internet portal for better communications.   All communications between the parties is done through the MMM Portal. After the order is entered the homeowner, mortgage lender and mediator communicate and meet to mediate a modification. In the meeting, all parties must be really and able to settle all matters.

Monday, June 20, 2016

Student Loans

Experts state that by early 2013, the amount of student loan debt in the United States surpassed $1 trillion and that nearly 20% of Americans households owe on student loans.

It is also reported that student loan delinquency and default are also on the rise. By 2009, about 9% of borrowers had defaulted. Student graduating from for-profit schools have a much worse default rate.

There are many negative consequences for student loan borrowers who default. The federal government contracts with several private collection agencies to collect on defaulted loans. Collection charges may be as high as 20% or higher of the payment. Also in order to collect, the government can seize wages, tax refunds, and social security payments.

Deferment and Forbearance
Borrowers with federal loans who return to school or who are in a difficult financial circumstances may be able to obtain a temporary deferment or forbearance of payments. Information is available on the Department of Education's website.

Deferment means that the borrower is excused from making payments for a period of time. Borrowers who do qualify for deferment may seek forbearance from payment or a reduction in payments for up to 12 months. Unlike with deferment, interest continues to accrue on the loan.

Saturday, February 20, 2016

Chapter 7 and 13 Bankruptcy Relief

(305) 891-4055 - Free Initial Consultation - Office: North Miami - Kendall - Bankruptcy Attorney Jordan E. Bublick - 25 Years Experience - www.bublicklaw.com


Miami Bankruptcy AttorneyChapter 13 and chapter 7 bankruptcy each provides for different requirements and relief.  In general chapter 13 provides for an opportunity to reorganize your debt and chapter 7 provides for an opportunity to just discharge your debt.

Chapter 13

 

Chapter 13 bankruptcy is often used by people with higher incomes and substantial non-exempt property to formulate a chapter 13 plan to reorganize their debt while under the protection of the bankruptcy court. Under a chapter 13 plan, you are able to reorganize your secured debt (such as mortgages and car loans) as wells as unsecured debt (credit cards and personal loans).  Often you are only required to back only  10% to 20% of you unsecured debt and discharge the rest. A typical chapter 13 plan is over a period of 3 to 5 years.


Chapter 7 


Chapter 7 bankruptcy is usually used by people with lower income and little non-exempt property. Under chapter 7 unsecured debt, such as credit cards and loans, is discharged, unless it falls within the categories of non-dischargeable debts, such as student loans and some types of taxes.

Mortgage Modification


Chapter 13 bankruptcy is also used by people who are behind with their mortgages and to save their homes from foreclosure. Under a chapter 13 plan, you are able to take various approaches. You may reinstate your mortgage by catching up-to-date your past due payments over a period of up to 5 years.

Totally underwater second mortgages on residential property may be wholly avoided. Maintenance association liens may be avoided to the extent they are not secured by equity in the real estate.

Mortgage Modification Mediation


You may use the bankruptcy court's new mortgage modification mediation program ("MMM") [previously called the loss mitigation mediation ("LMM") program]  to negotiate with your mortgage company to achieve a modification of your mortgage.

Saturday, February 13, 2016

"Short Sale" of Real Estate

Jordan E. Bublick is a North Miami Bankruptcy Lawyer - North Miami - Aventura Office - (305) 891-4055

A short sale involves the mortgage lender agreeing to allow a homeowner to sell his real property for a price less than enough to payoff the mortgage in full. That is, the lender agrees to release its mortgage lien on the property for an amount less than a full pay-off so as to allow the sale of the real estate to proceed.  As the net proceeds of the sales price is less than the full amount due on the mortgage lien, the mortgage holder must agree to accept a "short" payoff in exchange for release of its mortgage lien.

Implications

Many homeowners facing foreclosure consider a "short sale", but have a difficult time understanding all of its implications. Some property owners that attempt to achieve a short sale are not successful in their efforts. Many seem to indicate frustration in the attempt to communicate with the mortgage lender(s) and/or actually complete a short sale. In addition, many lenders may be under contractual or regulatory restrictions that may not permit them to agree to a short sale.

Apparently the most difficult item in the short sale process is communicating with the lender and any second mortgage holder, such as the holder of a "home equity loan." In addition to the agreement of the first mortgage holder, the agreement of any junior mortgage holders must also be obtained. Outstanding judgments or tax liens may also be an issue as the buyer would need to receive clear title.

The process of obtaining a short sale usually takes several weeks to pursue and one needs to furnish substantial documentation, including personal financial information such as paycheck stubs, bank statements, 401(k) statements, and tax returns. One may also need to furnish information about a hardship.

Release from Liability
One of the most important issues in the short sale is whether the homeowner is actually released from liability for the "short" or unpaid amount. If the mortgage company and/or the second mortgage company do not release a person from liability for the unpaid portion, the benefit of a short sale to a homeowner may be questioned.



Thursday, January 28, 2016

Chapter 7 and Chapter 13 Bankruptcy


Bankruptcy Attorney Jordan E. Bublick is a Miami, Florida  has over 25 years of experience in filing Chapter 13 bankruptcy (reorganization of mortgages and other debt) and Chapter 7 Bankruptcy cases (discharge of debt). He has filed over 8,000 bankruptcy cases. Jordan E. Bublick has been a member of the Florida Bar since 1983 and is a graduate of the Ohio State University College of Law (JD) and the New York University School of Law (LL.M.).

Chapter 7 Bankruptcy 

Chapter 7 bankruptcy is generally used by people who desire to discharge unsecured debt and who have little non-exempt property.

Chapter 13 Bankruptcy 

Chapter 13 bankruptcy is used to reorganize mortgages and other secured debt as well as to discharge unsecured debt.

Chapter 13 bankruptcy is often used to stop a foreclosure action and proposed a plan of reorganization. Due to the decreased real estate values in South Florida, often a junior mortgage lien may be avoidable as an "unsecured debt."