Category Archives: Home Mortgages and Bankruptcy

I Signed an Auto Loan Reaffirmation Agreement in my Chapter 7 Bankruptcy, So Now What?

A reaffirmation agreement is, as I’ve written here before, a separate agreement that you may have the option to sign in a Chapter 7 bankruptcy that, essentially, puts you back on the hook for the “reaffirmed” debt as if you had never filed for bankruptcy at all. A Chapter 7 bankruptcy discharges ALL debts owed (except for those deemed to be non-dischargeable by the US Bankruptcy Code, such as child support arrearages or most tax debts, among others), flat-out, unless a debt is “reaffirmed.”

The reaffirmation agreement is a form document with contractual terms of the loans filled in that is provided by a creditor after filing and which requires the your signature, your attorney’s signature IF there is no “undue hardship” (more on this below), and the creditor’s signature. Once signed, it is provided to the creditor, and it is the creditor’s job to file it with the court. If filed and approved, you will be obliged to pay the debt regardless of the bankruptcy.

In most cases, I do not recommend that my bankruptcy clients here in Michigan sign reaffirmation agreements.

Continue reading

Why Reaffirming Mortgages Is a Very Bad Idea

Guest Post by Michael Goldstein, attorney in Massachusetts.

You are in a Chapter 7 bankruptcy to eliminate your overwhelming debt, not to put yourself back on the hook for it.

Click here to read more about why reaffirming mortgages is a very bad idea in a guest post by Massachusetts Attorney Michael Goldstein on the new Michigan Bankruptcy Blog of Michigan Bankruptcy Attorneys The Hilla Law Firm, PLLC.

 

 

Can I File a Chapter 13 Bankruptcy if I Am Not Eligible for a Discharge?

A Chapter 13 bankruptcy filing can still be useful even if you are not eligible for a discharge of the unpaid balance of debt remaining at the end of the Chapter 13 payment plan due to a prior bankruptcy filing in order to force creditors into a Federal court-enforced payment plan at 0% interest. This is particularly useful when it comes to student loan and other non-dischargeable debt.

Click here to read more about filing Chapter 13 bankruptcy even if not eligible for discharge on the new Michigan Bankruptcy Blog of Michigan Bankruptcy Attorneys The Hilla Law Firm, PLLC.

If you are a southeast Michigan resident interested in filing for bankruptcy, please feel free to contact us at (866) 674-2317 or john@hillalaw.com to schedule a free, initial consultation.

Michigan Bankruptcy Exemptions Found Constitutional by the Sixth Circuit

An important new decisionRichardson v. Schafer, was handed down this week by the Sixth Circuit Court of Appeals finding that Michigan’s bankruptcy exemptions are, in fact, Constitutional, contrary to the arguments made by Western District of Michigan Chapter 7 Bankruptcy Trustee Thomas Richardson.

The argument centered on Michigan’s state bankruptcy exemption scheme, and, in particular, on the homestead exemption, which allows $30,000 of equity in a person’s primary residence to be exempted (that is, protected from liquidation/sale by the Chapter 7 bankruptcy Trustee), or up to $45,000 if the homeowner filing for bankruptcy is over the age of 65.

Alternatively, the Federal exemptions allow a homestead exemption of just(currently) $21,625.00.

Continue reading

If I Own my Home Free and Clear, Will I Lose it in a Chapter 7 Bankruptcy?

If you own your home free & clear of any mortgage lien, a Chapter 7 bankruptcy may be a risky process for you, and a Chapter 13 bankruptcy may be a safer form of debt relief for you.

Click here to read more about protecting your home from liquidation in a Chapter 7 bankruptcy on the new Michigan Bankruptcy Blog of Michigan Bankruptcy Attorneys The Hilla Law Firm, PLLC.

If you are a southeastern Michigan resident interested in filing for bankruptcy, please feel free to call me at (866) 674-2317 or email me at john@hillalaw.com to schedule a free, initial consultation.

The Mortgage Meltdown: What Really Happened?

As a bankruptcy attorney routinely filing Chapter 7 and Chapter 13 bankruptcies in an economically hard-pressed state, Michigan, I am daily confronted with the real-world consequences of what the news media talking-heads have come to refer to as “The Mortgage Meltdown” or “The Housing Bubble Burst.”

Everyone is familiar with the long and short of this economic crisis—namely, that property values were quite high for some period of time, during which many folks purchased homes at high prices thinking that they were investing in their future, and then, suddenly, those homes were not worth nearly as much, leaving homeowners with negative equity, massively high monthly mortgage payments relative to the value of their homes, and no real way to sell or move away from the home in the case of job-loss in their geographic areas.

Continue reading

What Are the Tax Consequences of a Short Sale?

There can be serious tax liabilities arising from a short sale, or the sale of real estate for less than is owed on the balances of the mortgage notes attached to the property.

Click here to read more about the tax consequences of a short sale on the new Michigan Bankruptcy Blog of Michigan Bankruptcy Attorneys The Hilla Law Firm, PLLC.

If you are a southeast Michigan resident and are considering filing for bankruptcy, please feel free to contact us at john@hillalaw.com or (866) 674-2317 to schedule a free, initial consultation.