True Stories

Exempt Disability Income Loses Benefits In Bankruptcy

04/24/12

Disability insurance proceeds, from either private insurance or social security, cannot be garnished by a judgment creditor in Florida, and courts will protect the same proceeds after they are deposited in a debtor’s bank account. That’s the law in state court collections, but treatment of disability income is somewhat different in bankruptcy. 

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Bankruptcy Attorneys Advice For People Who Cannot File Personal Bankruptcy

04/10/12

Some people are ineligible for Chapter 7 based upon their income and cannot file Chapter 13 because they have debts above the Chapter 13 ceilings. Many other people are advised by a bankruptcy attorney not to file bankruptcy because they have assets which are not exempt in bankruptcy. I sometimes wonder what happens to people facing judgments who are told by a bankruptcy attorney that they cannot file, or should not file,  bankruptcy. 

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Credit Score Repair After Short Sale, Foreclosure, And Bankruptcy

04/09/12

One of my new bankruptcy clients is a credit manager with Bank of America. After discussing his situation and starting his bankruptcy I took the opportunity to ask him how a bankruptcy debtor best establishes good credit after bankruptcy. I also asked about the comparative impact on credit ratings of a short sale, a foreclosure, and a bankruptcy. 

Here are some of his comments and insights based on many years in the credit and banking industry. 

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Mortgage Modification's Amazing Result: Bank Forgives First Mortgage: Debtors' House Now Fee And Clear

04/01/12

This past week I witnessed one of the most extraordinary results  imaginable in a Chapter 13 mortgage mediation when two married homeowners were able to combine several new mortgage incentive and rebate programs to achieve the ultimate mortgage modification possible...a total and complete write off of their principal balance.  By the time all the mortgage program benefits were applied this bank agreed to strip off the homeowners’ entire first mortgage.

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Chapter 7 Bankruptcy Leads To Financial Success For Hard-Working Couple

11/04/11

People are afraid of filing bankruptcy. Most of my bankruptcy clients are worried about the effect of bankruptcy on their future, and they think they may never recover financially. Consider this true story.

Five years ago I filed bankruptcy for a married couple. The husband had been fired by a a national corporation where he had earned a six figure income for many years. The wife worked for a local home decorating firm.

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Improper Ownership Of Life Insurance Policy Is Windfall For Creditors.

10/25/11

I saw another example of how sloppy financial and estate planning causes problems in bankruptcy. In this instance, a man took out a $100,000 life insurance policy on his own life. The man died at a time when he and his wife had substantial amounts of  credit card debt. The wife wanted to file bankruptcy. I explained to the  that the life insurance proceeds would be part of her bankruptcy estate if she were the insurance beneficiary.  I suggested that she collect the life insurance, but that she avoid filing bankruptcy.

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