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Joint Bank Accounts in Bankruptcy

July 5, 2011 By guest-writer

In a world where a person’s credit score is one of the most important numbers in her life, it’s no wonder that some parents are eager to help children by naming them joint bank account holders.

This used to be common practice with credit cards: parents would make children “authorized users” to help them improve their credit rating. But the credit bureaus caught on and no longer consider “authorized user” status a boost to a credit score.

Having a child listed on a bank account certainly might still benefit him, but it could hurt you financially if he decides to file for bankruptcy.

Your Cash in Bankruptcy

So what happens to joint accounts when one person files for bankruptcy? It varies depending on state law, but here are some possibilities.

Presumption of joint ownership: Some states have laws that indicate that any jointly owned accounts are considered to belong to both people listed on the account. In these states, half of the money in a joint account would be considered the property of the filer and could be used to repay creditors.
Rebuttal of presumption: The good news, however, is that filers usually have a chance to rebut (that is, disprove) their actual ownership of the money. A filer might do this by demonstrating that the other joint account owner (who is not filing for bankruptcy) deposited most or all of the funds into that account. This requires some careful legal action, so a lawyer’s help is valuable.
Repayment plan: If the bankruptcy filer chooses Chapter 13, the value of the money in the joint account might be taken into consideration. That is, the filer might be expected to pay more than he can really afford to creditors because the court views half of the joint account money as his. (A lawyer can clarify whether rebuttal would be possible in your state.)

Avoiding Bankruptcy Fraud with Joint Accounts

One other consideration for joint account holders considering bankruptcy is bankruptcy fraud. This is a crime that can ruin a filer’s chances at a bankruptcy discharge, lead to a steep fine (up to $500,000) and even cause jail time.

One action that might be considered fraudulent in court is the improper transfer of property or assets before filing for bankruptcy. In other words, if a joint account holder takes himself off the account just before filing for bankruptcy, the court might be suspicious of the action and still consider the funds fair game for the bankruptcy case.

Waiting periods for transferring assets before bankruptcy vary by state. Asking a lawyer about what’s legal where you live is likely your best bet.

Bankruptcy Court Challenges DOMA

June 22, 2011 By guest-writer

The Defense of Marriage Act, which bars federally recognized same-sex marriage, got a surprise challenge from a California bankruptcy court last week. Here’s a look at what happened and what it might mean in the future.

A gay couple married in California. In 2008, when gay marriage was briefly legalized in the Golden State, Gene Balas and Carlos Morales wed.
Later that year, Proposition 8 was passed. This law amended California’s constitution to exclude the right for gay couples to marry, though the state acknowledged the legitimacy of marriages that had already occurred.
The couple filed jointly for Chapter 13 bankruptcy protection. In February 2011, the couple was pushed by illness and unemployment to seek bankruptcy protection. They filed under Chapter 13, which allows filers to catch up on past debts with the help of a three- to five-year repayment plan.
The U.S. Trustee’s office requested dismissal of the case. Because bankruptcy is governed by federal laws and the federal government does not recognize same-sex marriages, the U.S. Trustee wanted the California court to deny the joint bankruptcy protection. If this request had been granted, the two men would have had to file for bankruptcy individually. This could have been more expensive, both in initial filing fees and long-term debt repayment.
The California judges refused dismissal. Instead of tossing the case out, twenty judges signed a ruling asserting that DOMA is unconstitutional and infringed the rights of the two men seeking bankruptcy protection.

Joint Bankruptcy, DOMA & Civil Rights

Right now, married couples seeking bankruptcy protection can choose between filing individually or jointly. The decision usually depends on state laws, the types of debts a couple has, a couple’s income and a number of other factors.

But because DOMA only permits marriage to a certain group of citizens, it automatically excludes others from joint bankruptcy protection. This exclusion, say California bankruptcy judges, is not in line with the rights guaranteed by the Constitution.

The judges used the language of the DOMA law to dispute its validity:

The joint Chapter 13 bankruptcy, noted the judges, would have “no effect on procreation.” One of DOMA’s professed goals is to promote childbearing.
The bankruptcy case, too, would be in no danger of “harm[ing] any marriage of heterosexual persons,” according to the California ruling. Another of DOMA’s stated goals was to defend and nurture the tradition of heterosexual marriage.

The case is getting a lot of attention because it attacks the controversial anti-gay marriage law from an unexpected angle. It also comes only months after the Obama administration announced that it would no longer defend DOMA in court, as it deemed the law unconstitutional.

Filed Under: Medical Bankruptcy, News Tagged With: avoid bankruptcy, bankrupt medical, Bankruptcy Attorney, Bankruptcy Courts, bankruptcy law, bankruptcy lawer, Chapter 13 Bankruptcy, Court, file bankruptcy, filing medical bankruptcy, Medical Bankruptcy, what is medical bankruptcy

Chapter 13 Bankruptcy Dismissal

June 17, 2011 By Bankruptcy Leave a Comment

By Marcus Peterson -

Bankruptcy is a legally declared inability of an individual or organization to pay creditors. During the course of a bankruptcy, a debtor may ask a court to dismiss the case. If the court finds that dismissal will not harm the creditors, ordinarily a court will grant a petition to dismiss a Chapter 7 or a Chapter 13 bankruptcy.

There are several reasons a debtor may prefer to file a Chapter 13 bankruptcy petition. The reasons include the debtor wishes to resolve certain debts that may not be discharged in a Chapter 7 bankruptcy. The debtor may also wish to protect certain cosigners on personal loans from being pursued by creditors for repayment or feels obligated to repay certain debts. The debtor may believe that future creditors will look more favorably on Chapter 13 reorganization than a Chapter 7 discharge. A debtor may be required to file a Chapter 13 bankruptcy if he or she has received a Chapter 7 bankruptcy discharge within the prior six years, or obtained a Chapter 13 bankruptcy discharge within the prior six years and has not paid off at least 70% of the unsecured debts and was subject to the discharge of a prior Chapter 7 or Chapter 13 bankruptcy filing within the prior 180 days, because the debtor violated a court order, or requested dismissal after a creditor sought relief from the automatic stay.

After filing a Chapter 7 bankruptcy petition, some debtors discover that they are better served by pursuing relief under Chapter 13. By filing an appropriate motion with the bankruptcy court, the debtor has an absolute right to convert the petition to a Chapter 13 filing, if the debtor has not previously converted a Chapter 7 bankruptcy to a Chapter 13 bankruptcy, and the debtor’s estate qualifies for Chapter 13 relief.

Chapter 13 provides detailed information on Chapter 13, Chapter 13 Bankruptcy, Chapter 13 Trustee, Filing Chapter 13 and more. Chapter 13 is affiliated with Filing Bankruptcy.

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Bankruptcy Contempt Case Highlights Important Rules

May 25, 2011 By guest-writer

A recent news article from LoanSafe.org tells the story of a woman who broke some important bankruptcy laws and ended up with almost $48,000 in fines to pay, on top of a five-year probation period. If that doesn’t sound like a good deal to you, read on to find out what she did wrong.

According to sources, the woman’s case worked like this:

In 2005, the woman in question filed for Chapter 7 bankruptcy. Chapter 7 is designed to help filers eliminate certain unsecured debts without making creditor payments through a repayment plan (that only comes into play in Chapter 13 bankruptcy).
As bankruptcy law requires, the woman testified to the completeness and accuracy of the information in her bankruptcy petitions as part of the Chapter 7 process.
Before filing her bankruptcy petition, the woman apparently transferred a piece of property (worth more than $47,000) to her son. She did not mention this transfer in her bankruptcy documents.
After the Chapter 7 case ended, the woman reportedly sold the “transferred” property and used the money to buy a home in a different state without reporting the proceeds of the sale.

Avoiding Bankruptcy Fraud

The woman’s crime was that she improperly transferred property with the intention of shielding it from the bankruptcy court. Had she proceeded lawfully without transferring the property, it would have been considered part of the bankruptcy estate.

Depending on the specifics of the woman’s case, the property might have been sold to raise money to repay her creditors in part; however, lying about the property ended up costing her in the long run.

One reason most insiders recommend that potential bankruptcy filers work with a bankruptcy lawyer is to help them avoid bankruptcy fraud, which includes all of the following.

Reporting incorrect or incomplete information: While the bankruptcy court may excuse honest mistakes on paperwork, more serious “mistakes” will likely lead to some legal action.
Attempting to repay a favored creditor before filing: Singling out one creditor (say, a family member or friend who lent you money) to repay before discharging other debts in bankruptcy is not allowed. Those who attempt to do so could face charges of bankruptcy fraud.
Improperly concealing or transferring property: This could be considered a branch of the “complete and accurate” rule, but it deserves its own section. Attempting to hide or pretending to give away assets to shield them from bankruptcy is not permitted.
Omitting known future income: Whether you’re expecting a tax refund or a hefty inheritance, it’s important to include it in bankruptcy petitions. Otherwise, you risk being charged with bankruptcy fraud.

As the story above illustrates, bankruptcy fraud is serious business: fines can get as high as $500,000 and those convicted may face jail time. Neither of those options sounds like a good way to get back on your feet financially.

Filed Under: Medical Bankruptcy, News Tagged With: avoid bankruptcy, bankrupt medical, Bankruptcy Attorney, bankruptcy lawer, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Court, file bankruptcy, filing medical bankruptcy, Medical Bankruptcy, what is medical bankruptcy

Bankruptcy Lawyers Help Homeowners Erase Second Mortgages

May 18, 2011 By guest-writer

Many Americans currently considering bankruptcy are in financial trouble partly because of the struggling housing market. Underwater mortgages (those in which the homeowner owes more than the home’s current value) are a reality for as many as 28 percent of American homeowners.

Even though bankruptcy law prohibits the court from modifying the terms of a primary mortgage, some bankruptcy lawyers have found a legal way to help their clients stay in their home and avoid foreclosure.

Unsecured Second Mortgages

Here’s the process some bankruptcy petitioners are following to help ease their mortgage debt:

File for Chapter 13 bankruptcy: Entering a Chapter 13 case means that the filer agrees to a three- to five-year repayment plan in which she will catch up on past-due debts.
Petition the court to declare a second mortgage unsecured debt: Filers who have second mortgages that, combined with their primary mortgages, exceed the value of their home’s current value, may be able to make this move. A bankruptcy lawyer can explain in more detail how the move works and whether it might be possible in any individual’s case.
Make payments according to the repayment plan: If the court accepts the petition, the filer must continue making payments according to her repayment plan for the duration of the bankruptcy case. At the end of the case, the remaining unsecured debt (including that from the second mortgage) may be excused by the court.
Avoid foreclosure: In many cases, reclassifying a second mortgage as unsecured debt allows filers to make mortgage payments and remain in their homes.

The Winners and the Losers

Naturally, this legal maneuver is good news for struggling homeowners and potential bankruptcy filers. But banks and other lenders are apparently less than thrilled about the development – after all, they’re the ones who lose out on mortgage payments when debts are excused in court.

But, as one news outlet reminds us, the only way to change the law is an act of Congress. Given the current state of the American housing market and level of financial difficulty many Americans are facing, a move of that sort seems unlikely: what politician would want to be responsible for taking away a tool for avoiding foreclosure?

Can You Save Your Home from Foreclosure?

In order to take advantage of this legal protection, your financial situation must meet a number of criteria:

Sufficient income to make payments: In order to benefit from Chapter 13, you have to be able to make monthly payments according to a repayment plan, which means you have to have a steady source of income.
Two (or more) mortgages: Again, primary mortgages cannot be modified in bankruptcy court.
An underwater home: Finally, you can only have debt declared unsecured if there is no property to secure it (that is, if your loan is worth more than your home). If your home value exceeds the amount of your primary mortgage, then at least a portion of the second mortgage is secured by the home, and cannot be excused by the court.

If you’re ready to find out whether this might work for you, connect with a bankruptcy lawyer today.

Filed Under: Foreclosure, Medical Bankruptcy, News Tagged With: avoid bankruptcy, bankrupt medical, Bankruptcy Attorney, bankruptcy lawer, Chapter 13 Bankruptcy, Court, file bankruptcy, filing medical bankruptcy, Medical Bankruptcy, stop foreclosure, what is medical bankruptcy

Study: Minorities File for Chapter 13 More than Whites

May 16, 2011 By guest-writer

A recent study released by the Woodstock Institute of Chicago shows some strange numbers about bankruptcy filings and race. Specifically, the study shows that African American bankruptcy filers choose Chapter 13 bankruptcy more frequently than their white peers.

The implications of this finding are interesting and instructive to anyone considering bankruptcy as a way of easing debt.

Chapter 13 vs. Chapter 7: What’s the Difference?

In order to understand why this study’s findings matter, it’s essential to understand the key differences between Chapter 7 and Chapter 13 bankruptcy.

Chapter 7 bankruptcy is designed to offer filers a full discharge of eligible unsecured debt. In order to qualify, filers must pass a means test showing that they do not have sufficient income to make regular payments according to a Chapter 13 repayment plan. Chapter 7 often works well for low-income filers who don’t have very much non-exempt property.
Chapter 13 bankruptcy is designed to help those with a regular income repay a portion of their debts. Chapter 13 filers follow a three- to five-year repayment plan in order to catch up on money they owe. At the end of this period, remaining unsecured debts may be discharged by the court.

Choosing the Right Chapter Matters

The study apparently found that blacks and whites of equal income levels were choosing bankruptcy chapters in different proportions. Specifically, sources indicate that in predominately black areas, about 47.9 percent of filers choose Chapter 13 bankruptcy and in predominately white areas, only 22.5 percent of filers do. Nationwide, the rate is 32.8 percent.

Some sources suggest the difference may have been caused in part by overly aggressive advertising by certain bankruptcy firms who were targeting filers in specific areas. These firms, it seems, may have earned more money by leading filers toward Chapter 13 even when they could have filed for Chapter 7.

And the consequences for filing for Chapter 13 when you qualify for Chapter 7 could be serious:

Strained finances: Those who qualify for Chapter 7 protection may just barely make enough money to make payments in the Chapter 13 repayment plan, which could harm their ability to save money for emergencies.
Prolonged debt: Rather than moving through a quick, four- to six-month Chapter 7 case and ending with a debt discharge, Chapter 13 filers must wait for several years before their debts are cleared. In that time, missing a payment could cause the court to remove its protection.
Few benefits: Those who do not have significant non-exempt property may have little or nothing to gain from filing for Chapter 13 when they qualify for Chapter 7.

Deciding which type of bankruptcy makes the most sense for your situation can make a huge difference to your financial future. If you’re considering a bankruptcy filing, be sure to consult with a bankruptcy lawyer about your options.

Filed Under: Medical Bankruptcy, News Tagged With: avoid bankruptcy, bankrupt medical, Bankruptcy Attorney, bankruptcy lawer, Chapter 13 Bankruptcy, Court, file bankruptcy, filing medical bankruptcy, Medical Bankruptcy, what is medical bankruptcy

Applying for Bad Credit Auto Loans during Bankruptcy

May 7, 2011 By Steve Cypher

If and how you can reestablish your car credit by applying for car loans with bad credit during a bankruptcy

How we know

If you’re currently in a personal bankruptcy and need a car loan, you’re probably wondering what your bad credit car loan options are.

During the past 20 years, we’ve heard this from many customers here at Auto Credit Express, where our commitment to bad credit consumers extends to our web site featuring a car loan application – something we felt was necessary after seeing the disappointment and shame that customers with poor credit often feel when a car dealer doesn’t offer second chance auto loans.

And while these consumers can usually try a tote the note dealer, this won’t solve their car credit issues since these dealers usually don’t report loans or loan payments to the credit bureaus and these same loans often end up in repossession.

Bad credit car loans

Getting a car loan after bankruptcy usually means applying for a bad credit auto loan. But if you need reliable transportation before your bankruptcy has been completed a lot depends upon the kind of bankruptcy you’re in which, for most individuals, is either a Chapter 13 or a Chapter 7.

Bankruptcy

A Chapter 13 filing establishes a court-appointed trustee. The trustee sets up a payment schedule that must be adhered to during the bankruptcy, which is normally three or five years.

A Chapter 7 filing liquidates a debtor’s assets and distributes the proceeds to the unsecured creditors. A Chapter 7 is usually over in a matter of months and can only be done once every 8 years.

Since a Chapter 13 bankruptcy can last for a number of years, while a Chapter 7 usually lasts for a little more than four months, bad credit car lenders look at each type differently.

A Chapter 7

In a Chapter 7 bankruptcy, the first step to filing is the means test. If this test is passed, the next step is the 341 meeting of creditors. This is where the court affirms the value of your assets and the accuracy of the information contained in the schedule of debts.

The 341 meeting is important, because bad credit lenders will not even consider an application until this meeting has been held. While most lenders want a Chapter 7 to be discharged (due to the short length of time), there are also some who will look at an application provided the 341 meeting has taken place.

A Chapter 13

A Chapter 13 bankruptcy is entirely different. In order to apply for a car loan if you’re in a Chapter 13, you need to ask the trustee to petition the court for an order to incur additional debt. Without this order, you are not permitted to apply for any loans.

Since a bankruptcy appears on your credit report, any lender will be aware that you’re in a bankruptcy. Before even considering your application, they’ll request a copy of the order to incur additional debt. It not only gives permission, it also specifies the maximum amount the court will allow you to borrow and might also state the maximum interest you’ll be allowed to pay (a sticking point with many bad credit lenders).

The Bottom Line

Whether or not you will qualify for a bad credit auto loan during bankruptcy depends upon the type of bankruptcy, where you are in it, as well as your ability to secure an order to incur additional debt if you’re in a Chapter 13.

Auto Credit Express has helped thousands of people with bad credit buy cars and reestablish their auto credit at the same time using a nationwide network of dealers that specialize in bad auto credit.

So if you are serious about getting your auto credit back on track, you can begin the process now by filling out our secure online bad credit auto loan application.

Filed Under: Auto Loan Debt, News Tagged With: auto loan debt and bankruptcy, avoid bankruptcy, Bankruptcy, Bankruptcy Attorney, bankruptcy lawer, car loan and bankruptcy, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Court, file bankruptcy, forgive car loans

Reasons to File For Personal Bankruptcy

May 6, 2011 By Bankruptcy Leave a Comment

By Jon L Martin -

Filing for personal bankruptcy is a serious decision that should not be taken lightly. But, bankruptcy can be beneficial and allow you to get a fresh financial start. Here are a few reasons why you may want to file either a chapter 7 personal bankruptcy or a chapter 13 personal bankruptcy.

You Have Outstanding Medical Bills- A single trip to an emergency room can cost you $20,000 or more. So, if you suffer a broken leg you and are required to have emergency surgery you can, in an instant, became literally destitute. Therefore, by filing bankruptcy you will likely be able to discharge outstanding medical bills.
Your Wages Are Being Garnished- When you are sued and a judgment is placed against you the creditor can garnish your wages. This means that money will automatically be taken out of your paycheck. This can be a devastating situation. For example, in Nevada a creditor can potentially garnish up to 25% of our wages. Thus, when you file for bankruptcy you will automatically stop the creditor from garnishing your wages.
Your Property is Being Foreclosed- Certain states allow a homeowner to be sued under a deficiency judgment when their house is foreclosed upon. A deficiency occurs when a bank loses money upon selling a house that is foreclosed upon. Basically, if your owe $100,000 on your house and the bank can only sell your house for $30,000 you can be sued for the $70,000 difference. So, by filing for a bankruptcy you can stop the bank from suing you for the $70,000 deficiency. (Please Note, that a deficiency judgment is only allowed in certain states. )
You Lose a Law Suit- If you lose a lawsuit the other party will then be able to collect on what you owe them via the judgment. By filing for bankruptcy you maybe able to stop the other side from collecting their judgment.

These are just a few reasons why filing for a bankruptcy can be useful. However, before filing for a personal bankruptcy you need to consult an experienced bankruptcy attorney. An experienced attorney will tell you the differences between chapter 13 and a Chapter 7 bankruptcy and will be able to advise you if bankruptcy is even necessary. The majority of all bankruptcy attorneys will give a you a free consultation. So, if possible you should get a second opinion. So, do not be cheap. See a an experienced bankruptcy attorney before you make any decision upon whether or not to file for bankruptcy.

I am a lawyer in las Vegas who has a general practice law firm. I represent plaintiffs and consumers in personal injury, criminal, traffic tickets, and bankruptcy. Also, as Las Vegas bankruptcy attorney I provide free consultation. Please call me at 1-877-778-0871 begin_of_the_skype_highlighting 1-877-778-0871 end_of_the_skype_highlighting for a free consultation.

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Strategic Default and Foreclosure: What’s the Difference?

May 2, 2011 By guest-writer

With the housing market headed for what some analysts are calling a double-dip downturn, there’s been a lot in the news lately about homeowners who strategically default on their mortgages. Here’s a look at what that means, how strategic default relates to foreclosure and what you need to know if you’ve got a mortgage you can’t afford.

What Is a Strategic Default?

The mortgage manipulation known as the strategic default works like this:

A homeowner reassesses her debt situation: This can be spurred by a number of things, and in the current economic climate common triggers include having difficulty paying bills (though not necessarily making mortgage payments) and realizing that a home is now worth less than the amount of the mortgage loan.
A homeowner decides not to make mortgage payments: After a month or two of missed mortgage payments, the mortgage loan will be in default (or, said another way, the borrower will have defaulted on the loan). The decision is usually considered “strategic” because those who choose this path opt to meet other financial obligations in lieu of paying their mortgages.
The home goes into foreclosure: Because the homeowner stops making mortgage payments, the mortgage lender begins the foreclosure process and takes back the home.
The homeowner deals with the credit consequences: In addition to finding new housing, strategic defaulters must also face serious financial consequences. Strategically defaulting on a mortgage can seriously damage a credit score, and many lenders (of all kinds) may refuse to issue loans to those with strategic defaults on their record. Fannie Mae, for instance, has announced that strategic defaulters are banned from Fannie Mae mortgage loans for seven years after defaulting.

How Is Strategic Default Different from “Regular” Foreclosure?

A strategic default is a conscious choice on the part of a homeowner to stop making mortgage payments, even if those payments are still affordable. Those who choose to strategically default often indicate that they are no longer willing to pay for a loan worth more than their house.

“Regular” foreclosure happens when a homeowner can no longer afford a mortgage loan and so has no choice but to stop making payments. In both cases, the homeowner loses the house to the lender; in strategic defaults, doing so is a conscious decision on the part of the homeowner.

What Are Other Options for Struggling Homeowners?

Because of the serious credit consequences and questionable ethical nature of strategically defaulting, many homeowners are not willing to do it, even if their loan is bigger than they’d like. Alternatives include:

Applying for a mortgage modification: Some banks (assisted by federal programs) offer mortgage modification programs. To find out whether you might qualify, contact your bank as soon as possible.
Filing for Chapter 13 bankruptcy: Some homeowners are able to at least delay (and possibly prevent) mortgage foreclosure by filing for Chapter 13. If you’re interested in learning whether you qualify, contact a bankruptcy lawyer in your state.

The Latest on Student Debt and Underwater Homes

March 23, 2011 By guest-writer

New reports highlight some interesting information about two topics near and dear to those who have filed or are considering filing for bankruptcy: underwater mortgages and student loan debt. Here’s a look at what kind of picture the latest numbers paint.

Students Don’t Need to Default to Be Behind on Loans

The Institute for Higher Education Policy released a report last week showing that two-fifths of those who borrowed money for educational purposes fell behind on their payments at some point in their first five years of repayment. So what does this mean?

Widespread repayment difficulties: These numbers may not even reflect the current rates of repayment difficulty, given that graduates in the last few years have faced a much tougher job market than those who graduated five years ago.
Old measures may be inadequate: Traditionally, studies on student debt have focused on the rate of default rather than delinquency. Looking at delinquent loans offers a clearer picture of how many people are struggling to repay their loans, even if they manage to get back on track at some point.
Bankruptcy not an option: Student loans are typically not dischargeable in bankruptcy court, which means that those with unmanageable student debt have few options for easing their debt burden. This is scary, considering that some estimates put the country’s total student debt at $896 billion, which is greater than our national credit card debt total.

Reports note that these numbers may affect the current debate in Congress over whether for-profit colleges and universities should be eligible for federally backed financial aid.

More Underwater Homes

Recent numbers released by a company called CoreLogic show that the number of underwater homes in the U.S. (that is, homes with a current value less than the amount of the mortgage on the house) has climbed since last quarter. Here’s a look at the numbers.

A reported 11.1 million U.S. homes were underwater in 2011’s first quarter, a jump from 10.8 million in the last quarter of 2010.
Nevada has a 65 percent rate of underwater mortgages, and is apparently the only state in which the average homeowner is underwater.
Besides the more than 11 million underwater homeowners in the U.S., 2.4 million Americans have less than five percent equity in their houses, according to sources.
Collectively, we reportedly owe about $751 billion more on mortgages than our homes are worth.
Analysts predict that home prices could fall by another five to 10 percent in 2011, meaning that those with little equity could soon find themselves underwater.

Unfortunately, mortgage loans for primary residences cannot be modified in bankruptcy court, but in some cases homeowners may find a Chapter 13 or Chapter 7 filing useful for eliminating other debts to help improve their odds of staying on track with their mortgages.

Filed Under: Foreclosure, Medical Bankruptcy, News Tagged With: avoid bankruptcy, bankrupt medical, Bankruptcy Attorney, bankruptcy lawer, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Court, file bankruptcy, filing medical bankruptcy, Medical Bankruptcy, student loans, what is medical bankruptcy