July 28th, 2010
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.
November 18th, 2009
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.
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August 14th, 2009
While bankruptcy laws exist for both the protection of debtors as well as creditors, the system has been subject to abuse. Therefore, Congress chose to overhaul bankruptcy laws four years ago through the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. While a reputable bankruptcy lawyer in BRONX can advise you best, here is a partial list of some of the key changes the law addressed:
- Mandatory Credit Counseling: Before a petitioner can file for bankruptcy, the law now requires a consumer to undergo mandatory credit counseling via a government-approved program (click here < http://www.usdoj.gov/ust/eo/bapcpa/ccde/index.htm> for a list of approved providers), or your professional bankruptcy lawyer in BRONX can refer you to a qualified counseling agency.
- Requirements for Tax Returns and Proof of Income: Consumers wanting to file either Chapter 7 or Chapter 13 must now furnish proof of income via their tax returns in order to qualify for bankruptcy protection.
- A New “Means Test” to qualify for Chapter 7: The new means test is based upon the median income for your state. As a general rule, if you make more than the median income and have $100 leftover to put towards debts (after meeting your essential monthly expenses), then you have to file under Chapter 13. An experienced bankruptcy lawyer in BRONX can advise you further about whether this.
- Fewer Automatic Protections (“Stays) for Filers: In the past, people who filed for bankruptcy protection enjoyed an array of automatic protections (in legal terms, called ‘Stays’) from their creditors. Under the new law, however, some of these protections have been eliminated, including protection from eviction or from driver’s license suspensions. Again, a seasoned bankruptcy lawyer in BRONX can explain the parameters of this aspect of bankruptcy law in greater detail.
- New Priority for Unpaid Child Support and Alimony: Money for back payments for child support and/or alimony (or new obligations to pay for these expenses) qualify as familial debts, which are now given top priority in the hierarchy of creditors.
- Mandatory Financial Education at the Conclusion of the Bankruptcy Action: As your bankruptcy process winds down, the new law requires you to undergo a mandatory financial education program before you will be allowed to have a final discharge of your debts. A reputable bankruptcy lawyer in BRONX can refer you to a government-approved program that will help you meet this final requirement.
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