The economic recession has forced a lot of homeowners in and around the Bronx, Brooklyn, Queens, Manhattan and New York City to lose their homes. Although the economy is showing slight improvements, the flood of foreclosed homes still continue.
Hoping to contain this worrying trend, some large unions in New York City have come together and are asking banks to do more to prevent foreclosures in the New York area. Specifically, the unions are asking the banks to resort to mortgage loan modifications instead of foreclosures.
The unions accused the banks of not helping property owners in New York City to keep their homes. Residents in the Bronx, Manhattan, Queens, Brooklyn and New York City experience a lot of problems when dealing with banks for mortgage loan modifications. These problems include the banks not answering their phone calls, delays in the modification process and multiple requests by the banks for homeowners to resend paperwork already submitted.
The unions plan on transferring their pension funds and bank deposits to other institutions if the major banks that hold these pension funds and deposits fail to prevent the flood of foreclosures by adopting mortgage loan modifications.
If the banks adopt mortgage loan modifications instead of foreclosure as the first and best means of dealing with unpaid mortgages on properties, then it means that many New York City residents may not lose their homes to foreclosure.
Please speak to your Bronx, Queens, Manhattan, Brooklyn or other New York City bankruptcy attorney for further advice.
If you live in the Bronx, Queens, Brooklyn, Manhattan, or anywhere in New York City or the State of New York, you can fight the garnishment of your wages or remove any hold on your account. You can achieve this if your creditors did not follow proper procedures to get your wages garnished or to put a hold on your account.
Before your creditors in New York City can obtain any judgment against you in a court of law, the creditors must give you notice and an opportunity to be heard. One way of achieving this is through the service of process. This is where you get a complaint or a summons and you are asked to respond to it or appear in court to defend yourself. Even this service of process must be done properly.
Let us look at a case where a debt collection firm sent a summons and complaint to a debtor’s last known address. When there was no response from the debtor, the collection firm went ahead and got a default judgment from a court Clerk in their favor. The New York City collection firm got this default judgment because the debtor failed to appear to defend himself or send any communication explaining his position.
Later, a hold was put on the debtor’s bank account and he challenged the default judgment in court claiming that he did not receive any summons or complaint. The judge ruled in his favor and vacated the default judgment. This is because the collection agency posted the summons and complaint at his last known address.
This is the good news for residents of the Bronx, Manhattan, Queens, Brooklyn and all of New York City. Under New York law, the service of process by fixing the summons and complaint to the door of a defendant of any case is not effective service. In this instance, the New York collection agency could only have achieved effective service if they had sent the summons and complaint to the debtor’s dwelling place, usual place of abode or actual place of business.
Under this New York law, even if the debtor had received or seen the summons and complaints after the debt collection firm had posted it to the door of his last known residence, service would still have been ineffective.
Don’t sit back and give up because your creditors have your salary garnished or have got the court to put a hold on your account. Talk to your Manhattan, Bronx, Queens, Brooklyn or other New York City bankruptcy attorney today to know your options.
The economic recession has forced many people in New York City to lose their sources of income and have led many to bankruptcy. These desperate and debt-ridden people are often enticed by any advertisements and offers from debt settlement agencies in New York to help them get out of debt.
If you are one of those burdened with debts and seeking help from a debt settlement agency, then you have to be careful because there is a chance that you may end up worse off than you were. The settlement agencies usually charge between 15% to 20% of a consumer’s credit card balance as fees. It has been estimated that consumers rarely get out of debt settlement programs with their debts cleared. In most situations, consumers get out of these debt settlement programs worse off with severely damaged credits, continuous threats from collection agencies and lawsuits from their creditors.
The first thing the settlement agencies tell you is to stop making payments to your creditors and rather make the payments into a special account that they will set up for you. They do their best to assure you that you will have nothing to worry about once you start the program. They tell you once you manage to reach a certain amount, they will strike a deal with your creditors to cut your debt by half and pay the debt off. This debt settlement program usually has to last between 2 and 3 years.
All this information that the debt settlement companies provide to consumers can be best described as fraudulent if not deceptive. This is because after you start the program, you will soon realize that your participation in the program does not necessarily stop the calls and threats from your creditors and collection agencies. When you start getting calls from your creditors and debt collection agencies, you will immediately call your debt settlement agency thinking that they have you covered. The usual response from them will either be that you do not yet have enough money in your account to cover the debt or that they have no control over the actions of your creditors and collection agencies. What will shock you even further will be the realization that you only have about half of the money you have been paying so far in your special account. For example if you have managed to pay about $3000, you will find out you only have about $1500 in your account. When you ask why, your debt settlement agency will tell you they used the about half of your money to cover administrative fees. Meanwhile, the calls and threats of lawsuits from your creditors and collection agencies will be forcing you into bankruptcy.
Before you sign on to any debt settlement program, please contact your qualified Bronx, Brooklyn, Queens, Manhattan and other New York City bankruptcy attorney for counsel. Do not make that choice without a bankruptcy lawyer and drown yourself deeper in debt.
Many people who file for bankruptcy in New York have fears about other people getting to know that they have file for bankruptcy. They hide this fact from friends and members of their family. This is because the perception here among some people is that it is shameful to file for bankruptcy though I have had to explain over and over that there is nothing shameful about filing for bankruptcy. Others get so scared that their employers would find out that they filed for bankruptcy. They get afraid that their employers might fire them from their jobs if they ever get to know. They try as much as possible to hide their filing for bankruptcy because of this sense of insecurity.
Here is news for you. Federal law prohibits your employer from discriminating against you or from terminating your employment solely because you filed for bankruptcy. The reality now is that a great number of people in New York City and possibly someone near you in the Bronx, Queens, Brooklyn and Manhattan have filed or are filing for bankruptcy. Businesses cannot help it but have a good percentage of that number in their companies. It’s a reality that everyone is facing and so companies would rather not do anything that would appear to be discriminating against their employees.
Besides, you’ve got the law on your side. Your employers would rather have you working than you suing them for huge sums for discrimination.
The law protects you from collection agents when the means used in collecting debts are improper.
Before a debt collection agency starts pursuing you for unpaid debts, it must first give you notice of the debt and also provide you with an opportunity to either confirm or deny the debt. Every person who has a claim against another must give that other person notice of the claim and a chance for that other person to contest the claim or debt in court. This is known as service of process. The service may be faulty if the debt collection agency fails to properly investigate or find the actual residence of the debtor and serves process at the wrong address. Don’t succumb to pressure from these collection agents. If you have not been given proper notice as explained here, call your NY bankruptcy attorney now.
The most common unfair debt collection practice is where the debt collection agency or lawyer harasses or scares you, the debtor through continuous phone calls to the debtor’s home or cell phone. If a debt collection agent calls you at odd hours, for example late in the night or at dawn, with the intention to force the debtor to make payment, please call your NY bankruptcy attorney now for immediate help.
Another way the debt collection may be improper is when the debt collection agency fails to investigate, (especially where the agency was not the original creditor) whether you, the debtor in fact owed the amount as claimed by the original creditor.
Furthermore, the debt collection agent needs to prove that the original creditor has duly and properly assigned all right, title and interest in the account or debt to it. This will be the basis for pursuing any claim against the debtor. If your debt collector has no proof of assignment of the debt to her, call your NY bankruptcy lawyer now.
The law seeks to protect the most vulnerable members of the society who may feel intimidated just at the sight of a letter signed by a lawyer. In instances where such abusive means is used by a debt collection agency or agent, the court usually protects you by dismissing the complaint of the debt collection agency. Your lawyer can have the court set aside a default judgment which was given in favor of the debt collection agency if you did not have a chance to set aside the debt. Don’t just wait for debt collection agencies to drive you into bankruptcy.
Congress enacted the Fair Debt Collection Practices Act to stop abusive debt collection practices. One way to stop this abuse by debt collectors is the requirement of a validation notice and period in collecting debts.
If the debt collection agency does not follow this requirement, you can let your New York lawyer seek an order from the court to get the debt discharged and even get damages against the debt collection agency.
Under the Fair Debt Collection Practices Act, all debt collectors are to send a written notice to the debtor setting forth the debtor’s right to dispute the debt, among other things. This notice must be sent within 5 days of the debt collector’s initial communication with the debtor. This is called the ‘validation notice’.
The debtor then has 30 days from the time of receiving the validation notice to send the debt collector a notice disputing the debt. This period is known as the validation period.The debt collector is free to go on with her debt collection activity during the validation period if the debtor fails to dispute the debt.
However, the debt collection agency must not do anything that might overshadow or be inconsistent with the debtor’s right to dispute the debt or request the name or address of the original creditor. For example, in NY, it is wrong for the debt collection agency to serve a debtor with a summons and a complaint within the 30-day validation period without accompanying communication assuring the debtor that her rights under the validation period remain in force and are not affected by the service of the lawsuit. The courts have this requirement because most Bronx, Queens, Brooklyn, Manhattan and other NY state residents might get confused and understand the service of the lawsuit as a termination of their rights during the validation period.
To prevent such confusion, the best practice is to provide an explanation in both the validation notice and the summons and complaint clarifying the rights of the debtor and explaining that the starting a lawsuit does not override the debtors rights.
Getting organized – it can seem like a Herculean task during this tumultuous time in your life. But by taking the time to organize your documents ahead of time, you’ll not only be better prepared when meeting with your Bronx bankruptcy lawyer, you’ll also make the entire procedure flow much more smoothly.
If you’ve completed your required pre-filing credit counseling and are ready to proceed with filing, these are some of the basic documents you’ll need. (Make sure to consult with your Bronx bankruptcy lawyer about your particular situation and any other documents you’ll need.):
Tax Returns and W-2 Statement of Income – You’ll be required to furnish your tax returns for at least the past two years.
Real Estate Documents – If you own a home or other real property, you’ll need to furnish your Bronx bankruptcy lawyer with copies of the required documents to submit to the bankruptcy court. These documents include the deed, the mortgage note, the latest appraisal, and your latest property tax bill. This is required not only for your primary residence, but for ALL property that you own or hold title on.
Pay Stubs – You’ll need to furnish pay stubs for the past 60 days, or if you are unemployed, then an affidavit stating such. If you’re self-employed, please consult with your Bronx bankruptcy lawyer about requirements to verify your income.
Statement of monthly net income, and any anticipated increases such as an upcoming negotiated pay raise (also, any anticipated increase in expenses)
Titles to Vehicles – You will need to furnish the court with copies of the titles to all vehicles you own.
Certificate of Completed Credit Counseling – Once you’ve completed the mandatory pre-filing credit counseling, make sure to provide a copy of the Certificate of Completion to your Bronx bankruptcy lawyer.
These are just some of the documents that you will be asked to produce during your bankruptcy procedure. By taking the time to organize your documents, you’ll have one less thing to worry about as you wind your way through the process towards regaining your financial footing.
New rules under the federal bankruptcy code require that debtors undergo a financial education course before their bankruptcy is finalized. Your Brooklyn bankruptcy lawyer can provide you with a list of approved agencies that conduct this service.
Before you enroll in the course, the agency will require you to provide proof of identification, as well as your bankruptcy case number (which your Brooklyn bankruptcy lawyer can give to you.) This assures the court that the real petitioner is indeed taking the class, and not sending someone else in his place.
The intent of a financial education course is to provide you with the skills you need to wisely manage your money in the future. It will cover topics such as short-term and long-term financial planning, personal budgeting, and disciplined use of credit, as well as consumer skills such as comparison shopping and determining wants vs. needs. Your Brooklyn bankruptcy lawyer can advise you further about additional topics that may be covered.
Requirements by the court dictate that the course must be at least two hours, and thanks to today’s technology, courses are even offered via the Internet by some agencies. Once you complete the course, you’ll be issued a Certificate of Completion, and you should give a copy of this to your Brooklyn bankruptcy lawyer to furnish to the court.
The bankruptcy court understands that your means are limited, and thus holds the agency providing the educational sessions to charging only a fair and reasonable fee for the class. More importantly, you are further protected in that the agency cannot withhold your Certificate of Completion if you are finding it difficult to finish paying for the course. If this is the case for you, your Brooklyn bankruptcy lawyer can advise you about resources available to help you to meet this final expense.
Hang in there – once you’ve reached this stage of the bankruptcy process, you’re in the home stretch. Just a few hours of class work will sweep you over the threshold into your new financial future – one filled with hope at the prospect of a fresh start in life.
Recent changes to federal bankruptcy laws now mandate that certain pre-requisites be met in order to file for bankruptcy protection.
The first of these requirements is that the debtor wishing to file must undergo mandatory credit counseling six months prior to filing the petition. The session must be conducted by an approved non-profit counseling agency that oversees budget and credit counseling programs for consumers. Your Westchester bankruptcy lawyer can provide you with a list of approved credit counseling agencies.
During this session, the counselor will discuss the many alternatives to bankruptcy, and will also help design a personalized budget analysis for you. Once you complete the credit counseling session, notify your bankruptcy lawyer in Westchester, who can then start a file for you and commence the six-month countdown to filing.
While you might be ntimidated about having to discuss personal information with a stranger, these approved credit counselors are professionals who aren’t there to judge you, just to help you. Westchester bankruptcy lawyers have found that most agencies offer either private sessions or group sessions, which gives you some options when it comes to both pricing and privacy. And speaking of privacy, some credit counseling agencies even offer sessions via the internet, so you can “attend” the session online in the comfort of your own home.
If you’re thinking of filing bankruptcy, your Westchester bankruptcy lawyer will consult with you about the steps you must take and the timelines you must follow.
Remember, every journey starts with a single step. The road to successfully completing the bankruptcy process begins with credit counseling through an approved agency – the required first step that will start you on the path towards a new financial future and a brighter tomorrow.
A “cramdown” is jargon used by lenders and bankruptcy lawyers in NYC. It effectively imposes a court-ordered reduction of the balance of a loan for an outstanding asset – oftentimes a car, boat or motor home. And while this type of forced loan modification exists for non-real assets, it historically has excluded real property.
During Spring 2009, legislators fought to pass a bill under the umbrella of the Helping Families Save Their Homes Act that would make real property eligible for cramdown modifications – a bold move whose intent was to help stop the glut of foreclosures burdening homeowners throughout America.
Bankruptcy lawyers in NYC followed that cramdown legislation for homes with keen interest, as the proposed legislation wound its way through Congress. Ultimately, it failed in the Senate in a 45-51 vote in April 2009. At the time, most pundits and observers felt that the defeat in the Senate would be the final nail in the coffin for this much-sought-after relief championed by bankruptcy lawyers in NYC and beyond.
Now, however, cramdowns for real property may be on the comeback trail. Initially dismissive of potential attempts to revive the bill in May, House Financial Services Committee Chairman Barney Frank (D-Mass) told reporters recently that he intends to try to revive the bill, possibly as soon as October.
This is a move hailed by both homeowners and bankruptcy lawyers throughout NYC, as it gives new hope to those at the heart of America’s financial crisis. While big-name banks continue to receive bailouts at taxpayer expense, they have been wont to share the government’s largesse by sincerely working with those homeowners who, month after month, struggle to meet their mortgage obligations.
Supporters of cramdown legislation cite the continued flood of foreclosures on the real estate market, and feel that cramdowns would help stabilize the real estate industry by finding the financial floor in housing prices. Bankruptcy lawyers in NYC also support the measure, because court-ordered modifications could help millions of borrowers who are burdened with mortgage debt be able to keep their homes.
Stay tuned, as this financial Capitol Hill smackdown – “Lenders vs. Homeowners” unfolds. Bankruptcy lawyers in NYC and across the nation now wait to see if special interests will yet again prevail, or if this time struggling homeowners can actually get some much-needed relief.
