Mr. and Mrs. #654 came into the Law Offices of Chang & Diamond with their 3 small children because they were severely upside down in their property. They owed more for their cars than they were worth and they owed a lot more on their home than it was worth. We saw a lot of ways we could help this family!
With the Lady of the house staying at home with their young children and Mr. #654 being the only breadwinner, it was clear from the analysis of his income that they qualified for Chapter 7 bankruptcy.
Chapter 7 would allow Mr. and Mrs. #654 the ability to get out from under their home and their cars. They still needed two working cars that fit car seats though, so we let them know that AFTER their bankruptcy is complete that they can still get financing from some of the local dealerships. Of course the decision of lending and interest rates would ultimately be up to the dealership, but since they could not file for a Chapter 7 again for 8 years, the lenders must feel safe lending to them. (We have had several calls from Dealerships confirming this information.)
Since Mr. and Mrs. #654's home loan was an ARM (Adjustable Rate Mortgage) and their mortgage had adjusted, they had been paying almost all of their income to the mortgage company. After making the decision to walk away from the house the were able to rent for a fraction of the cost. Leaving more money for the raising of a young family.
Because the debts from their home had been incurred before they filed Chapter 7 bankruptcy they were able to have that debt discharged through the bankruptcy. There were no tax liabilities from the deficiency.
All in all it was a happy ending for family #654. I guess I should say rather, that it was a HAPPY BEGINNING!
Monday, June 28, 2010
Wednesday, June 9, 2010
Can I buy a house after Bankruptcy?
Many of our clients inquire as to their ability to purchase a home (Real Property) after filing bankruptcy. Below are some of the new Underwriting Guidelines for buying a Real Property. Here is how a bankruptcy or a foreclosure can affect your ability to purchase real estate.
Bankruptcy Info:
1. If a Chapter 13 bk was discharged within the last 24 months; dismissed within the last 48 months; or filed by neither discharged nor dismissed within the last 48 months will receive a "refer with caution/IV recommendation".
(I looked up Refer With Caution/IV: "The loan is ineligible due to the recommendation")
2. Non Chapter 13's filed, discharged, or dismissed will received a "refer with caution/IV recommendation.
Foreclosure Info:
1. Debtors with a foreclosure on their credit report over 5 years old will need to put 10% down and have a minimum credit score of 680 to purchase a principle residence.
2. The purchase of a 2nd or investment property will not be permitted while a foreclosure is on Credit.
3. Cash-out refinances are not permitted while a foreclosure is on your credit.
4. Minimum credit score of 620 to purchase Real Property
All of this information came from www.fanniemae.com. For further information on how Bankruptcy or a Foreclosure would affect you, please call us at 619-233-6300 to set up a free consultation.
Bankruptcy Info:
1. If a Chapter 13 bk was discharged within the last 24 months; dismissed within the last 48 months; or filed by neither discharged nor dismissed within the last 48 months will receive a "refer with caution/IV recommendation".
(I looked up Refer With Caution/IV: "The loan is ineligible due to the recommendation")
2. Non Chapter 13's filed, discharged, or dismissed will received a "refer with caution/IV recommendation.
Foreclosure Info:
1. Debtors with a foreclosure on their credit report over 5 years old will need to put 10% down and have a minimum credit score of 680 to purchase a principle residence.
2. The purchase of a 2nd or investment property will not be permitted while a foreclosure is on Credit.
3. Cash-out refinances are not permitted while a foreclosure is on your credit.
4. Minimum credit score of 620 to purchase Real Property
All of this information came from www.fanniemae.com. For further information on how Bankruptcy or a Foreclosure would affect you, please call us at 619-233-6300 to set up a free consultation.
Tuesday, June 1, 2010
Stop Calling Me!!!
There is nothing worse than being harassed by creditors! The incessant calling is enough to make any person insane. There are only a few ways to stop those calls. If you don't have the money to pay off the debt and don't want to live your life hiding from your phone calls, hiring a bankruptcy lawyer can offer one form of relief.
When a person files bankruptcy with Chang & Diamond, APC, there is an federal law that terminates any and all collection practices. We call this law "The Automatic Stay". The automatic stay offers a shield for debtors to stand behind because the law applies to almost any creditor. The stay states that the creditors may not call you, pursue collections or lawsuits against you, and they cannot continue to garnish wages. It makes it illegal for creditors to have contact with you in any way.
The automatic stay is a double edge sword though because it also says that your lenders cannot send you statements anymore. If you are current with your house or car and intend to keep your home or car the lender still cannot send you statement. Also when you call, you may only have access to speak to their bankruptcy department which is a decidedly different experience than talking to "customer service".
The stay does not last forever. You are only protected while you are in bankruptcy. As soon as your bankruptcy is finished, so is the automatic stay. Even when the automatic stay ends however, if you have filed bankruptcy with a bankruptcy attorney your debts will be gone and there will be no reason for any more calls.
Go ahead, and give a sigh of relief and begin to love your cell phone again!
If you want more information on Chapter 7 or Chapter 13 bankruptcies, call Chang and Diamond today for a free consultation! We are available at our San Diego office Monday through Friday from 8:30 to 5;00pm. Call us at 619-233-6300 or 800-718-8118. We look forward to hearing from you.
When a person files bankruptcy with Chang & Diamond, APC, there is an federal law that terminates any and all collection practices. We call this law "The Automatic Stay". The automatic stay offers a shield for debtors to stand behind because the law applies to almost any creditor. The stay states that the creditors may not call you, pursue collections or lawsuits against you, and they cannot continue to garnish wages. It makes it illegal for creditors to have contact with you in any way.
The automatic stay is a double edge sword though because it also says that your lenders cannot send you statements anymore. If you are current with your house or car and intend to keep your home or car the lender still cannot send you statement. Also when you call, you may only have access to speak to their bankruptcy department which is a decidedly different experience than talking to "customer service".
The stay does not last forever. You are only protected while you are in bankruptcy. As soon as your bankruptcy is finished, so is the automatic stay. Even when the automatic stay ends however, if you have filed bankruptcy with a bankruptcy attorney your debts will be gone and there will be no reason for any more calls.
Go ahead, and give a sigh of relief and begin to love your cell phone again!
If you want more information on Chapter 7 or Chapter 13 bankruptcies, call Chang and Diamond today for a free consultation! We are available at our San Diego office Monday through Friday from 8:30 to 5;00pm. Call us at 619-233-6300 or 800-718-8118. We look forward to hearing from you.
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