TheFloridaBankruptcyLawBlog

South Florida Bankruptcy Attorneys Suspended For Filing Frivolous Claim Objections In Chapter 13 Cases

03/14/12

A bankruptcy  attorney can try too hard to eliminate his client’s debt; when the attorney abuses the bankruptcy rules he can find himself in trouble with the bankruptcy court. Several attorneys in south Florida were sanctioned for filing frivolous pleadings in Chapter 13 bankruptcy cases. 

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Chapter 13 Bankruptcy Can Strip HOA Lien

03/09/12

Chapter 13 bankruptcy can strip a second mortgage from a primary residence if the house is worth less than the first mortgage so that the second mortgage is not secured by any equity. Many homeowners who fall behind in their mortgage payments also have past due HOA fees and assessments. Florida law permits HOAs to place impose a lien upon a property to secure payment. Are HOA liens subject to mortgage stripping in Chapter 13, or are HOA liens given the same priority and protection as first mortgages?

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Homestead Exemption Upheld Despite $184,000 Investment Within 10 Years Of Bankruptcy

03/05/12

The 2005 bankruptcy law contains a provision which intends to stop debtors from converting non-exempt funds in to homestead properties otherwise exempt under state law. The Code section provides for loss of homestead exemption to the extent a Chapter 7 debtor used non-exempt assets, such as cash, to buy a homestead within 10 years preceding bankruptcy bankruptcy  when the debtor purchased the homestead with the intent to defraud creditors.

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Mortgage Modification Or Chapter 13 Bankruptcy: Which Comes First?

02/29/12

Some of my bankruptcy  clients are considering Chapter 13 bankruptcy to save their homes and strip off a second mortgage. These people are simultaneously investigating a modification of their first mortgage through one of the mortgage modification programs offered by their mortgage lender and the government’s mortgage initiatives. The clients are unsure whether they should file Chapter 13 and negotiate a mortgage modification in Chapter 13 mortgage mediation, or to fully explore a modification program before filing bankruptcy.

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Mortgage Lenders Paying Homeowners To Find Short-Sale Buyers

02/24/12

Are mortgage lenders finally “getting it?” Since the beginning of the housing crash so many homeowners have expressed to me their frustration trying to work with their mortgage company to arrange a reasonable short sale of their real estate. These homeowners could not comprehend why the mortgage lender believed it was in their interest to foreclose on a property and then own the real estate instead of working through a short sale to dispose of the property to a ready and willing buyer. 

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Chapter 13 Cram Down Of Investment Mortgage Unfair To Unsecured Creditors

02/19/12

Chapter 13 bankruptcy provides debtors the ability to cram down mortgages on their investment property provided that the investment mortgages be paid in full during the Chapter 13 plan. The cramdown opportunity is designed to help the debtors save their investment real estate as part of a reorganization, but the opportunity requires good faith and fairness to other creditors. 

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Surrender Of Property To Mortgage Lender Does Not Forfeit Homestead Exemption

02/15/12

Your homestead property is exempt as long as you intend to maintain the property as your permanent residence. When a homestead owner files bankruptcy he must declare his future intention regarding his homestead property and mortgage. The debtor must declare if he intends to reaffirm the mortgage and stay in the house or surrender the property to the mortgage lender and discharge personal liability on th mortgage note.

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Mortgage Modification Is Money Loser For Service Company

02/10/12

Homeowners with upside down mortgages say that it is very difficult to get their lenders to modify their mortgages under the HAMP program. One reason is that mortgage service companies make less money when a homeowner modifies a mortgage than they make when the mortgage holder forecloses or the homeowner is able to refinance, this according to a law review article in the Washington Law Review.

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Bankruptcy Court Says No Liability For Assisting A Debtor's Fraudulent Transfers Or Conversions

02/06/12

A fraudulent transfers and fraudulent conversions  prior to filing Chapter 7 bankruptcy can be detrimental in two ways. First, the Chapter 7 trustee can reverse the transfer or conversion, take the property back from the transferee (recipient), and sell the property for the benefit of your creditors. In addition, egregious fraudulent transfers within two years of filing Chapter 7 bankruptcy can cost the debtor the bankruptcy discharge.

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Chapter 13 Wage Deduction Order For Defense Industry Employees

02/01/12

Chapter 13 plans have a very high completion rate when debtors agree to pay using a wage deduction order. Payment is more likely when deducted from your paycheck as opposed to having to discipline yourself to give the Chapter 13 payment priority over other household expenses. 

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