Posts Categorized: Uncategorized

Walking Away From Mortgage Debt

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Given today’s economy and housing market, it is not surprising that many homeowners no longer view homeownership as the American dream.  Considering the decline in property values, glut of houses on the market, and few buyers qualifying to purchase homes, for many it’s become a nightmare. Often when I am talking with a person struggling… Read more »

Can I get rid of tax debt in bankruptcy?

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If you owe the IRS or Department of Revenue a tax debt, the taxes may be dischargeable in bankruptcy.  Tax debts are complicated, and your bankruptcy attorney will discuss those issues with you.   The answer to “can I get rid of tax debt in bankruptcy” is “maybe.” There are several rules that determine whether a… Read more »

What is the role of a chapter 7 or chapter 13 bankruptcy trustee?

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The bankruptcy trustee steers the bankruptcy process much like the captain of a ship steers the ship. The bankruptcy trustee is a third party appointed by the bankruptcy court to oversee a bankruptcy case.  Trustees are typically bankruptcy attorneys themselves.  The trustee has a responsibility to make sure that a debtor is complying with the… Read more »

If I file bankruptcy, will everyone know?

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Who will know if you file bankruptcy?  Has your neighbor filed bankruptcy?  You probably don’t know whether they have or not, and they won’t know if you do. Bankruptcy –  the “B” word – carries a negative stigma.  Many people worry that if they file bankruptcy, everyone will know they are having financial problems.  The… Read more »

What is a judgment?

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A judgment is the outcome of a lawsuit where the winning party is awarded a sum of money from the losing party. In the bankruptcy context, a judgment typically results when a creditor sues and wins in court, i.e., Bank of America v. John and Jane Doe. The judgment is the piece of paper that… Read more »

What is a deficiency?

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A deficiency arises when a secured creditor sells its collateral and the money from the sell is not enough to pay off the debt in full.  Consider these scenarios: Jane defaulted on her mortgage.  She owed $100,000, and the house was sold for $80,000 at the foreclosure sale.  The $20,000 difference is called a deficiency,… Read more »