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THE DIFFERENCES AMONG BANKRUPTCY ATTORNEY STRATEGIES
In foreclosure, if you are able to resume making reasonable, regular monthly mortgage payments, bankruptcy should be used as the "insurance policy", as Plan "B" so-to-speak... backing up the more practical, direct lender intervention. The Law Offices of Jeffrey A. Cancilla, and our associated attorneys nationwide, begin intervention on foreclosure by dealing directly with the "lender". You know the lender as the company taking your payments, while we consider them to be the "servicer" on behalf of an "investor" who is the true lender on your mortgage. The investor obviously does not want a loss on your home. With an attorney prodding the lender to protect its investor, and the obvious next step being notification of bad faith dealing and failure to engage in loss mitigation and the utilization of hardship programs, most often the lender quickly recognizes our client's ability to keep the home for the benefit of all concerned parties, without the need for court intervention.
Additionally, some mortgages (or the manner in which the mortgage was sold or serviced) violate the federal Truth In Lending Act, RESPA, HOEPA, and state consumer protection laws. You want to choose an attorney who will utilize any such violations as a defense to foreclosure, and possibly seek damages for the violations. The violations take many forms, such as misrepresentation of the terms of the mortgage (some of the recent option ARM's and negative amortization loans are prime examples) as well as simply cheating homeowners with fraudulent fee and interest calculations.
Only if no other superior options are available will The Law Offices of Jeffrey A. Cancilla advise filing a Chapter 13 bankruptcy. If bankruptcy is the only option available, then we will endeavor to attain all possible benefits to our client available under the bankruptcy code and the laws of our state. Many debtors will not be able to even afford a Chapter 13, and must consider a liquidation bankruptcy (Chapter 7) or possibly returning the property to the lender without foreclosure via a deed in lieu of foreclosure or a short sale.
WHAT ARE SOME OF THE REQUIREMENTS FOR FILING?
In order to file a Chapter 13 bankruptcy, you must have a stable income sourcewith disposable income (income left over after you pay the bare necessities of life such as shelter, food and utilities). You must have no more than $922,975 in secured debt (debt involving property that your creditor might take if you don't make your payments) and $307,675 in unsecured debt. These amounts are adjusted periodically to reflect changes in the consumer price index. The court filing fee is $274. You must reside or have a domicile, a place of business, or property in the United States; and you must not have had a bankruptcy filing dismissed for cause within the last 180 days. (In laymans terms, if you are "thrown out" of bankruptcy - involuntarily dismissed for non-payment or another violation of the courts rules - you can incur what is known as "prejudice", which is the court's ruling that you can not ask the court for help again until that 180 days passes. Filing prematurely and incurring prejudice is one very important reason to only use Chapter 13 as a last resort to save a home.)
The "new" bankruptcy code requires the completion of a U.S. Trustee approved credit counseling briefing. Your bankruptcy attorney will then file that Credit Counseling certificate along with your bankruptcy petition. Bankruptcy petitions filed without a Credit Counseling certificate may be dismissed, with catastrophic results because it may allow creditors a window in which to take collection action, and even continue with foreclosure or repossession while the protection of the "automatic stay on payments" is not in effect. Our office has established an online system for accomplishing the credit counseling in the most convenient manner for the client, so as never to be risking your security within the Chapter 13.
This article does not constitute legal advice, and no attorney-client relationship exists with the Law Offices of Jeffrey A. Cancilla until a written agreement is signed by both parties. Jeffrey A. Cancilla also involved in Foreclosure Education Center training programs for attorneys nationwide to concentrate on pre-bankruptcy strategies to "tune up" a client's mortgage default prior to any court filing, so that any remaining debt may be more affordably handled if a Chapter 13 is indeed necessary. To reach Jeffrey A. Cancilla, you may call Toll Free 800-844-1513.
The syndication of third-party articles onto this site does not represent a gaurantee by IamFacingForeclosure.com of any article's contents or endorsement of the services provided by the author. All articles are provided for informational purposes only. You should consult with one or more appropriate professionals and use your own judgment before taking financial or legal action.