What seemed like a very simple bankruptcy case has become a complicated argument over rent-stabilized leases in bankruptcy. The bankruptcy trustee argues that the lease is an asset of the bankruptcy estate and may be sold to pay off the debtor’s creditors. However, the attorney for the debtor argues that the lease is protected by state exemption laws as a social service. The question has been referred to the state’s Court of Appeals and the fate of where a 79-year old widow will live is … [Read more...]
Detroit retirees vote on Detroit bankruptcy plan
May 22, 2014 by
About 30,000 Detroit retirees are among the 110,000 creditors that will vote on Detroit’s proposed bankruptcy plan. This is as legislators prepare to vote on a proposed state contribution to help Detroit settle its debt. The legislation has heavy opposition and some retirees believe that none of the options provided on the customized ballot are remotely satisfactory. The ballots are due by July 11 and no one really knows what direction the votes may take as creditors and other interested … [Read more...]
How long will it be before I can buy a car after bankruptcy?
May 20, 2014 by
Some debtors are concerned that they will not be able to purchase a car after filing Chapter 7 bankruptcy; however, it is much easier now to do that than in years past. While you should not buy a car until after your bankruptcy is completed and the case has been closed, purchasing a car after your bankruptcy case is closed is now a good possibility. Because of a variety of reasons (i.e. car lots have more cars in inventory, people are keeping their cars longer creating less demand, lenders are … [Read more...]
New hope for writing off student loan debt!
May 20, 2014 by
As thousands of college graduates enter the workforce this May and June burdened with heavy student loan debt, there is new hope that they may be able to write-off student loan debt under certain circumstances. Seven members of Congress are asking for “undue hardship” guidelines that would allow some individuals to discharge federal student loans through the filing of a bankruptcy. By defining what constitutes “undue hardship,” more individuals may be allowed to discharge student loans when … [Read more...]
Do you know want lenders want in a good applicant?
May 16, 2014 by
If you are ready to purchase a home or even refinance your current mortgage, knowing what a lender looks at in an applicant can help you be prepared for the mortgage application process. There are three elements that a lender reviews in order to determine if you are a worthy candidate – your credit history, capacity and collateral. These three elements all combine to tell the lender if you are a good credit risk. For more information read, “Three must-haves when applying for a home … [Read more...]
How to you handle filing tax returns when you divorce?
May 15, 2014 by
Ending your marriage is stressful and emotional; however, ending up in tax court because you and your spouse both claimed your children on separate tax returns only rubs salt into the wound. Filing tax returns for the year your divorce can be complicated, especially when there are children involved and you itemize expenses. Communication seems to be the number one lesson that other couples can learn from this couple’s mistake. For more lessons read, “IRS Case Offers Joint Tax Return Lessons … [Read more...]
Do you know makes a buyer not like a home? You should if you want to sell yours!
May 14, 2014 by
If you want to sell your home, you had better know what buyers want and, more important, what they do not want. Buyers can make a decision based on something as simple as they do not like that the kitchen is decorated in a rooster theme. Some buyers may be able to look past small things such as this; however, knowing what turns a buyer off can mean the difference in selling your home within the first few months or your house sitting on the market for a year. If you want to know what turns a … [Read more...]
Quiznos makes quick work of Chapter 11 case
May 13, 2014 by
The fast-food restaurant filed for Chapter 11 bankruptcy earlier this year; however, it worked some “fast food magic” in bankruptcy as it has already received confirmation of its proposed plan of reorganization. Even though the company only owns seven of the 2100 restaurants (the rest are operated by franchisees), it was severely in debt. With the help of its creditors, the company has been able to successfully propose a plan to continue in business. For the complete store read, “Court … [Read more...]
Rebuilding credit during a Chapter 13 case
May 12, 2014 by
Many bankruptcy debtors are worried about how they will rebuild their credit after filing bankruptcy. One way is to obtain a secured credit card. You must place a deposit equal to your credit limit with the credit card company to cover any potential defaults in payment. However, as you make each monthly payment on time, the company should report this to the credit reporting agencies so that your credit rating will begin to improve. If you are in a Chapter 13 bankruptcy, you should consult … [Read more...]
Current trends related to your money and credit score
May 9, 2014 by
It seems that every day someone is telling us something new that we must know about what affects our credit scores. There is a never-ending list of new trends that affect our wallets as well as our credit ratings. It is difficult to keep up with every new trend; however, there are a few that you should review so that you are not taken by surprise. Keeping up with financial trends helps us improve our finances and have a stronger financial foundation. For current financial trends read, … [Read more...]
