Jan 02, 2021 · I can share a secret, just between us. Bankruptcy “reform” in 2005 tried in a number of ways to discredit and gag lawyers from helping debtors. One of those additions to the Bankruptcy Code prohibits lawyers from advising those filing bankruptcy to incur new debt. The statute makes no distinction about the kind of debt involved or the ...
Jan 27, 2022 · Failure to properly seek fees may be a slam dunk automatic stay violation under 11 USC 362. Such a violation will allow one to recover actual damages, sanctions, attorney fees and costs, and punitive damages in some cases. So check the billing statements you receive from your mortgage company every month while you are in Bankruptcy.
Aug 16, 2015 · You must answer truthfully, regardless of the 10-year credit history limit. Filing for bankruptcy is not cheap. You have legal fees, filing feels, in …
The Notice included late fees in the amount of $142.26 and legal fees in the amount of $125.00. Midfirst contended that their bankruptcy attorneys were entitled to their legal fees in preparing the Notice because the Bankruptcy Code requires that they send out the Notice and that failure to do so will result in sanctions for Midfirst. The bankruptcy court in this case agreed with the …
The trustee will look at your statements to verify your monthly payments to make sure they match the expenses you put on your bankruptcy forms. For example, if you listed your car loan as $500 a month, the trustee will use your bank statements to ensure that amount is being reflected on your bank statements.Dec 6, 2021
In addition to making sure that your paperwork is accurate and complete, the trustee will be on the lookout for omitted or undervalued assets, undisclosed income, fraudulently transferred property, and any other red flags that can benefit your creditors or indicate abuse of the bankruptcy process.
Other Non-Dischargeable Debts in Bankruptcy 401k loans. Other government debt such as fines and penalties. Restitution for criminal acts. Debt arising from fraud or false pretenses.Nov 2, 2020
If the trustee finds hidden assets, the trustee can ask the court to revoke or take back your discharge. The trustee can do this at any time before the case closes or, even after, up to one year after the discharge date.
For instance, Bankruptcy Rule 2004 authorizes the bankruptcy trustee to examine: the acts, conduct, property, liabilities or financial condition of the debtor. any matter which may affect the administration of the bankruptcy estate, or. any matter which may affect the debtor's right to a discharge.
Your Chapter 7 bankruptcy trustee will likely check your bank accounts at least once during the process of overseeing your filing. They have a right to perform a full audit of your accounts or check them any time it is necessary.
Mortgage Payments After a Chapter 13 Plan The lien allows the lender to foreclose on your home if you miss a payment. Simply completing your Chapter 13 repayment plan and getting a discharge won't get rid of the first mortgage lender's lien on your home.
Nondischargeable debt is a type of debt that cannot be eliminated through a bankruptcy proceeding. Such debts include, but are not limited to, student loans; most federal, state, and local taxes; money borrowed on a credit card to pay those taxes; and child support and alimony.
Debts dischargeable in a chapter 13, but not in chapter 7, include debts for willful and malicious injury to property, debts incurred to pay non-dischargeable tax obligations, and debts arising from property settlements in divorce or separation proceedings.
The bankruptcy trustees go about finding hidden assets by taking a close look at your debts, as well as doing public record searches, online analysis, tax returns, review reports from former spouses or friends, as well as payroll slips that may show deposits into banks or accounts that you have not listed in your ...Jan 29, 2020
Options for asset protection include:Domestic asset protection trusts.Limited liability companies, or LLCs.Insurance, such as an umbrella policy or a malpractice policy.Alternate dispute resolution.Prenuptial agreements.Retirement plans such as a 401(k) or IRA.Homestead exemptions.Offshore trusts.Mar 26, 2022
Generally, the types of assets that you can keep in a bankruptcy include:personal items and clothing.household furniture, food and equipment in your permanent home.tools necessary to your work.a motor vehicle with a value up to a certain limit, usually an older vehicle qualifies.certain farm property.
Well, actually you should not be getting any mortgage statements during your Chapter 13 case. But this technical violation might help remind you to make your monthly payments. Even better, this technical violation may provide you the “smoking gun” of evidence that your creditor is violating bankruptcy laws. There should not be any Bankruptcy Fees ...
To start, most Notes, Deeds of Trusts, and Mortgages, do not provide for Bankruptcy Fees unless specifically necessary to protect their security interest. Typically, bankruptcy does not meet this qualification.
Also, the proof of claim will many times fail to disclose any such fees. While Courts across the United States are split as to whether such disclosure in a proof of claim may be a proper way of seeking fees, most courts are unanimous that the fees still must be reasonable nevertheless.
Servicers are usually diligent about paying property taxes and insurance bills, though mistakes can happen. If you need help working out an error that your servicer made, consider talking to an attorney or a HUD-approved housing counselor. You may also lodge a complaint with the Consumer Financial Protection Bureau (CFPB).
How to Resolve an Escrow Mistake. If you have an escrow account as part of your mortgage loan and you find out the servicer didn’t pay the property taxes or homeowners’ insurance, call your servicer or send the servicer a “notice of error.”. Under federal law, if you send your service r a letter—officially called a notice ...
Escrow Accounts: When the Servicer Is Supposed to Pay Taxes and Insurance. Throughout the entire term of a mortgage loan, a borrower pays monthly amounts of principal and interest. If the lender sets up an escrow account, the borrower also pays roughly one-twelfth of the estimated annual cost of property taxes and homeowners’ insurance each month.
The servicer uses the money in the escrow account to pay the tax and insurance bills as they come due, normally once or twice a year. For example, suppose Tim's property taxes and insurance are $4,500 a year. Tim's lender insists on an escrow account. Tim then has to pay $375 each month in addition to paying principal and interest.
The servicer may then use this money—called an escrow “cushion”—to cover unanticipated increases in the property taxes or homeowners’ insurance.
Tim then has to pay $375 each month in addition to paying principal and interest. The servicer puts the $375 into the escrow account and pays the tax and insurance bills when they're due. Borrowers also sometimes have to pay amounts for homeowners’ association (HOA) dues and private mortgage insurance into an escrow account.
A servicer’s duties normally include: sending you a monthly billing statement. processing your payments. managing a foreclosure (if you stop making payments), and. handling your escrow account, if you have one . In some cases, you might be able cancel your escrow account and pay the taxes and insurance on your own.
If you think your mortgage servicer made an error or is charging unfair fees and your notice of error didn't resolve the matter—or if you’re facing imminent foreclosure—consider talking to a foreclosure attorney who can give advice on what to do in your particular situation.
If you think your servicer made an error when charging you certain fees or overcharged you, you might be able to resolve the issue by sending the servicer a “notice of error.”
But servicers sometimes charge borrowers for several inspections each month or for an amount that is significantly higher than $10 or $15. Most courts consider multiple inspections in one month and charges considerably over $10 or $15 as unreasonable. If you think your servicer made an error ...
If you miss the due date, but make your payment during the grace period, the servicer shouldn’t charge a late fee. Servicers often assess late fees incorrectly, either charging a fee when the borrower pays within the grace period or charging a fee in the wrong amount.
A few types of fees that servicers typically charge to borrowers' accounts are: late fees. property inspection fees.
If you miss a mortgage payment, your loan servicer will probably charge you a late fee. (The amount of the late fee is typically set out in the promissory note that a borrower signs when taking out a home loan.)
Under the terms of most mortgages and deeds of trust, a loan servicer may charge a borrower for costs related to preserving the value of the property, like for: winterizing the home. replacing locks . repairing broken windows. restoring utility services, and/or. landscaping the property.
You should also say that if you do not hear from them within a certain timeframe that you will need to explore your options. Do not directly threaten them with legal action or a bar complaint. File a complaint. First things first—if you must attend a bankruptcy hearing, go to it even if your attorney hasn’t gotten back to you. ...
If the attorney doesn’t show up, tell the bankruptcy trustee or judge what has happened. You may even want to request more time. At this point, it may be best for you to file a complaint with the bar and find another lawyer.
If you’ve left your bankruptcy attorney several voicemails and gotten no response, try contacting them via email or a private message on social media. If they have a receptionist or assistant, you should also leave a message with them.
If you’re unable to schedule an appointment with the bankruptcy attorney, and they are still not returning your calls or emails, you should just show up to their office. Once you get there, don’t make a scene.
If the servicer receives a complete application more than 37 days before a foreclosure sale, it must review the application and determine if the borrower qualifies for a loan modification within 30 days. However, the servicer generally doesn't have to look at multiple loss mitigation applications from you.
If the servicer doesn't look at your submitted documents promptly, the paperwork expires. The servicer will then ask you to resubmit your items. Also, servicers sometimes ask borrowers to resubmit documentation after documents get lost.
Many loan modifications start with a three-month trial period plan. So long as you make three on-time payments during this period, the modification is supposed to become permanent—assuming you still meet the eligibility criteria.
Under federal law, if a trial or permanent loan modification is denied because of an NPV calculation, the servicer must include the inputs used in the NPV calculation in the denial notice.
In some cases, servicers ask homeowners to submit and then resubmit information when applying for a loan modification. One common scenario involves income verification documents—like pay stubs and bank statements—which can quickly become outdated in the servicer's eyes. If the servicer doesn't look at your submitted documents promptly, the paperwork expires. The servicer will then ask you to resubmit your items.
When a servicer promises to modify an eligible loan, homeowners who live up to their end of the bargain expect the servicer to keep their word. But sometimes , homeowners who've made their trial payments can't get the servicer to make the modification permanent.
In some cases, the servicer doesn't tell the homeowners that they're missing documents necessary for the loan modification decision. In others, the servicer simply doesn't get around to reviewing the request promptly. Federal mortgage servicing laws, effective January 10, 2014, aim to reduce these delays.