Using Bankruptcy to “Strip” Liens on Investment Property
One of the great tools bankruptcy provides is the ability to avoid undersecured and wholly unsecured liens (often referred to as “stripping down” a lien or “stripping off” a lien). If you owned investment properties that are currently underwater, what if I told you there might be a way to reduce the outstanding mortgages on […]
KEEP READING . . .The beauty (and the ugly) of a chapter 13 bankruptcy, as experienced by a lawyer
I was in court this morning for a case of mine. It was scheduled for the dual purpose of confirmation of the chapter 13 plan, and the trustee’s motion to dismiss. It seems counterintuitive that the same case can be scheduled for a hearing before the court for two things, each seeking the polar opposite […]
KEEP READING . . .Voluntary Retirement Contributions and Retirement Loan Repayments are reasonably necessary expenses for Bankruptcy Debtor
In bankruptcy news, a nice, debtor-friendly case came out of the Bankruptcy Court for the Southern District of Indiana. The question presented: whether a debtor’s voluntary retirement contributions and retirement loan repayments are reasonably necessary expenses for bankruptcy debtor. The answer according to this court: Yes!
KEEP READING . . .Sometimes, (in bankruptcy) letting go is the best thing
People often tend to let their emotions govern their choices, especially in legal matters. It’s ultra-common in divorces, where the parties would rather battle over some issue, keeping the case open another few years and increasing attorneys fees, rather than coming to a sensible resolution. (I once saw a conference where the parties decided to […]
KEEP READING . . .Bank Tries to Disregard Loan Modification Agreement that IT OFFERED in Bankruptcy Court!
“Wow!” That was all I could think after reading this case. Unfortunately, poor lender practices, especially in the foreclosure and bankruptcy context, have become all too common. If you or someone you know had been dealing with a foreclosure, then you might be aware of the challenges that had to be overcome to gain some […]
KEEP READING . . .A Mortgage Bank may LOSE its right to foreclose
Can a mortgage bank lose its right to foreclose on real estate that is in foreclosure? This case comes out of the United States District Court, District of Massachusetts. The underlying facts are fairly commonplace. The debtor-homeowner bought a house in Massachusetts and, at the time of purchase (May 28, 2004), executed a Note and […]
KEEP READING . . .Case Review: Lien Stripping in Chapter 13 cases are SAFE here in NY
For most people, bankruptcy law isn’t the most newsworthy thing. For bankruptcy practitioners like myself, I try to pay attention to EVERYTHING that’s going on, including in different courts around the country. (It’s a good way to learn new arguments, techniques and theories to better serve my clients.) Most bankruptcy practitioners that represent consumer debtors […]
KEEP READING . . .What Does A Bankruptcy Discharge Mean?
It has happened a number of times to me. A client comes in inquiring about bankruptcy. Often, one of the specific motivations for inquiring about bankruptcy is that the potential debtor owns real property somewhere (PA, FL) that is ridiculously underwater. They have tried short selling the property, to no avail. The lender will not […]
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