Thursday, November 19, 2015

Stop Mortgage Foreclosure with Chapter 13 Bankruptcy

You can stop your mortgage foreclosure by filing a chapter 13 bankruptcy under most circumstances.  Chapter 13 will give you an opportunity to apply for a mortgage modification while under the protection of the Bankruptcy Court.

A chapter 13 bankruptcy must be filed before the foreclosure sale takes place if desire to save your real property. Under chapter 13 you are required to present a plan of reorganization.

Mortgage Modification

In Chapter 13  you are able to use the Bankruptcy Court's new "LMM" program - Loss Mitigation Mediation. You and the mortgage company are able to communicate over a special internet portal so documents do not get lost.

Wipe Out "Under-Water" Second Mortgages

Under chapter 13 bankruptcy, you can avoid or wipe-out your second mortgage if it is wholly "under-water." 

Wednesday, November 18, 2015

"Short Sale" of Real Estate

Jordan E. Bublick is a 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.


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.

Sunday, November 15, 2015

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."

Friday, November 13, 2015

(305) 891-4055 - Free Initial Consultation - Office: Miami - Aventura - Bankruptcy Attorney Jordan E. Bublick - 25 Years Experience -

Miami Bankruptcy AttorneyChapter 13 and chapter 7 bankruptcy are the types of bankruptcy used by individuals to obtain debt relief.  Chapter 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.

Wednesday, November 4, 2015

"Party Aggrieved" Requirement for Appeal of Bankruptcy Court

On September 4, 2014, the United States Court of Appeals for the 11th Circuit Court of Appeals addressed the "party aggrieved" doctrine in the case of Benjamin Atkinson v. Ernie Haire Ford, Inc. (In Re: Ernie Ford, Inc.), 2014 WL 4358417.

Party Aggrieved Requirement

The Court explained that, as bankruptcy cases often involve numerous creditors who are dissatisfied with any compromise that jeopardizes the full payment of their outstanding claims against the bankrupt, that "special rules have been developed to govern which parties my appeal a bankruptcy court order. The Court reviewed that courts continue to apply this rule, which was codified in the 1898 Bankruptcy Act, that only a  "person aggrieved" can appeal a bankruptcy court order.

Definition of a Party Aggrieved

The Court cited its previous holding in the case of In re Westwood Cmty. Two Ass'n v. Barbee (In re Westwood Cmty. Two Ass'n) 293 F.3d 1332 (11th Cir. 2002) which defined a party aggrieved as those individuals that are "directly, adversely, and pecuniarily, affect[ed]" by a bankruptcy court's order." This case further explained that "[a]n order will directly, adversely, and pecuniarily affect a person if that order diminishes their property, increases their burdens, or impairs their rights."

Bankruptcy Code Interests

The Court further held that it agreed with other circuit courts which have held that a person is not "aggrieved" when the interests harmed by the court order are "not the interests that the Bankruptcy Code seeks to protect or regulate." The Court cited another case which states that this doctrine was developed to limit appeals of bankruptcy court to avoid "endless appeals brought by the myriad of parties who are indirectly affected by every bankruptcy court order." It explained that the purpose of this doctrine was to ensure that the goals of bankruptcy are not derailed by a flood of appeals" by those parties "who do not suffer a direct harm to interests the Bankruptcy Code seeks to protect or regulate." It further stated that the allowance of appeals from parties who have suffered "only an indirect harm or who hold interests outside of the scope of the Bankruptcy Code would defeat the very purpose underlying our person aggrieved standard."

Further References

The Court in In re Randy L. Jones, Case 09-11551-MGW (Bankr. M.D. Florida 2013) (Williamson, J), applied the party aggrieved doctrine in a chapter 13 case  to avoid the Chapter 13 trustee's objections to an attorney fee settlement as the unsecured creditors were being paid 100%.

A lengthy law review article published in 2010 on the party aggrieved doctrine is available entitled "Non-Pecuniary Interests and the Injudicious Limits of Appellate Standing in Bankruptcy" by S. Todd Brown.