According to an article in the Star-Telegram the bill H.R. 1106 which allows modification of toxic mortgages during bankruptcy passed through the House of Representatives last night. This is great news for Dallas-Fort Worth homeowners facing foreclosure . The bankruptcy bill was passed with a vote of 234 to 191 in favor of homeowners facing [...]
In the Chapter 7 Bankruptcy case of Castellaw, James E. and Jennifer L.; In re the bankruptcy court dismissed the debtors' Chapter 7 bankruptcy case because they lived a luxurious lifestyle that could not be justified.The bankruptcy court said: "As a general matter, the retention of multiple luxury items is hard to reconcile with the [...]
According to an article in the Star-Telegram, House Democrats have created a compromise bankruptcy bill that would allow mortgage modification in bankruptcy under the strictest circumstances, if approved by the House on Thursday. The new language includes the following restrictions: Debtors seeking mortgage modification in bankruptcy would need to prove that they attempted to modify [...]
When debtors file for bankruptcy, they are required to take a means test which will determine if their income is 1) above or below the median income of that state and 2) if they have enough income to repay at least some of their debts. The test is based on the debtor's income from the [...]
According to an article in the Herald Tribune, the number of senior citizen bankruptcies is on the rise due to uninsured medical costs and rising debts amongst seniors.The article said: Bankruptcies are increasing faster among Americans 55 and over than in any other age group, according to a recent study. And people 65 and over [...]
In the case of Tekippe, Joseph W. and Jamie L.; In re, a bankruptcy trustee auctioned off the debtors' lawsuit against the state of Iowa against the wishes of the debtors. The debtors who flied for Chapter 7 bankruptcy listed their interest in a pending lawsuit against the State of Iowa as an asset. The [...]
With mounting debts, pending foreclosures and the possibility of bankruptcy, many educated, highly-skilled workers are turning to the food service industry to make ends meet, according to an article in the Dallas Morning News. The article quoted Lisa Johnson, a real estate agent: "I started borrowing money from my parents," said Johnson, 33, who works [...]
If the pending bankruptcy legislation (the house version) is passed and becomes law, homeowners who modify their mortgage in a Chapter 13 bankruptcy would have the right to sell their home before receiving a discharge. If the homeowner sells his/her home during Chapter 13 bankruptcy with a modified mortgage, the claim may be reduced if [...]
In the case of Morrison v. Western Builders of Amarillo Inc. in the 5th U.S. Circuit Court of Appeals, Chief Judge Edith H. Jones ruled that bankruptcy courts have the power to award money judgments against debtors who have nondischargeable debt.In this case the bankruptcy court ruled that a bankruptcy filer's debt was not dischargeable [...]
According to an article in the Star-Telegram , banking institutions claim that the Federal Reserve is stifling their lending efforts and ability to infuse the economy with more credit. The article said: Fearing more bank failures, federal regulators are forcing institutions to hold more money in reserve and are scrutinizing loans. But bank executives complain [...]