REDUCE YOUR CAR LOAN MONTHLY PAYMENT AND CAR LOAN BALANCE

Many clients come into my office with monthly car loan payments they cannot afford any longer.  Most people's first thought is to give up the car, especially when they owe more on the loan than the car's is worth.

We routinely file cases for clients to help them with their auto loans.  We can reduce the monthly payments significantly, lower the interest rate on the loan, and, if the car's value has dropped below the amount they owe on the loan, we can reduce the loan balance down to the current value of the car.

This procedure has helped many clients keep cars they otherwise would have turned in.  Especially when somebody's income has gone down, they need help to make their car loans more affordable. 

Owners of Multi Family Homes and Mobile Homes Can Reduce Their Mortgage Balances

In Rhode Island, the Bankruptcy Court permits onwers of multi family houses and mobile homes to reduce the amount they owe on their mortgages in a way that few other courts in the United States permit.

I recently have concluded a case for clients who own a multi family house, and through the court, reduced their mortgage balance from $195,000 to $81,500.  My office was able to reduce the number of years that these clients will pay off their mortgage in full from 23 years to 4 years.  We saved these clients 19 years of mortgage payments.

Anybody who owns a multi family house or mobile home should consider whether they would benefit from such a mortgage reduction as well.  My clients have a great feeling that in a few short years they will own their home outright and never need to make a mortgage payment ever again.

Five Time Grammy Award Singer files for Bankruptcy

Many people think that they are the only ones who need help to resolve a financial matter.  In fact, people from every walk of life experiences ups and downs, as this article shows.  Click the link to find out the very famous person who recently sought help from a bankruptcy attorney.

http://www.cnn.com/2013/03/26/showbiz/dionne-warwick-bankruptcy/index.html?iref=allsearch

15 Lies About Bankruptcy

A fellow bankruptcy practictioner in Maryland, Brett Weiss, Esq. has written an extremely informative article entitled "Top 15 Lies About Bankruptcy." 

He clearly repudiates many of the false information about filing for bankruptcy.  I highly recommend that any person considering filing for bankruptcy read this link, which provides useful and valuable information to making an informed decision.

http://www.bankruptcylawnetwork.com/top-15-lies-about-bankruptcy/

The Truth About Debt Consolidation and Debt Management Companies

Many of my clients have trid to avoid filing for bankruptcy by turning to debt consolidation or debt management companies.  Unfortuately, most of these companies promise much more than they every deliver.  Only about 1 out of every 10 people actually pay off their debts in the time they were promised.  The majority of people enrolled in these plans spend so much money and do not realize the results they expected.

Take a few moments to view this link to learn more about the false promises made by these debt management companies.

http://www.nacba.org/Portals/0/Documents/NACBA%20Docs/NACBA%20debt%20settlement%20trap%20consumer%20alert.pdf

http://www.nacba.org/News/ConsumerAlertDebtSettlement.aspx

Potential Problems for People in Bankruptcy Who Use Facebook and other Social Media

Many of my clients, just like all other people, regularly make posts onto Facebook and other social media.  Please read this post to get some insight into the trouble social media has caused some people who have filed for bankruptcy.

http://www.bankruptcylawnetwork.com/bankruptcy-trustee-surfs-social-media/

A well-dressed, young couple was sworn in at their bankruptcy meeting of creditors (341 hearing). The trustee asked the usual questions.
“Your plan proposes to pay your attorney, the filing fee, pay off your car and some taxes, and nothing for the unsecured creditors,” the trustee summarized. “Yes,” the debtors and their attorney nodded.
What happened next was far from typical:

• Trustee: ”You took a vacation last month on the Canadian Railway from Vancouver, British Columbia, to Banff in Alberta, ending in Calgary, didn’t you?“
• Husband: ”Well, uh, yeah.“
• Trustee: ”Who paid for that vacation?“
• <Long silence>
• Trustee: ”And you flew to Vancouver and fly back from Calgary?“
• Wife: ”Yes.“
• Trustee: ”Who paid for the plane tickets?“
• Husband: ”We did.“
• Trustee: ”You stayed at some really nice hotels along the way.“
• Wife: ”Yes.“
• Trustee: ”The pictures on your Facebook page show you at Lake Louise. Who paid for that hotel?”

WHAT IS WRONG WITH THIS PICTURE?

The trustee is suspicious. He thinks these debtors ran up their debts for an extravagant vacation at the same time they are asking for help with their bills.
“This plan is filed in BAD FAITH,” the trustee says. He insists this couple pay for their vacation twice by upping the distribution to unsecured creditors in their chapter 13 bankruptcy by the amount they spent on the luxury vacation.
This spending does not pass the smell test. It looks really bad. The trip was right after the bankruptcy was filed before the meeting of creditors. The timing is horrible. This wasn’t a car trip to the next state to visit a sick grandma. The amount spent was extravagant.
It is possible there is a reasonable explanation, but…
A chapter 13 bankruptcy plan must be proposed in good faith to gain approval. Good faith is defined by the totality of the circumstances.
We’ll see what happens in this case. Ultimately, if the debtors and trustee disagree, the bankruptcy judge will decide if these facts add up to bad faith.

We will be known forever by the tracks we leave. - Dakota proverb

The Internet is not private. Many people have been undone by the proof of their misdeeds on the social-networking sites.

MANY SUCCESSFUL LOAN MODIFICATIONS

We have been very successful in lowering clients' mortgage payments using the Bankruptcy Court's loss mitigation program.  We have modified many mortgage payments by reducing the mortgage payments by $300-$800 per month.  Every case is different, but most people end up with a lower mortgage payment.  Additionaly, the mortgage companies are putting the missed mortgage payments at the end of the loans, so that the borrower does not need to repay the missed payments right away.  This modification procedure has helped many people stay in their homes with an affordable monthly payment.