bankruptcy and bankruptcy related subjects.

 

Attention clients: Remember to take your second credit counseling course, the Financial

Management Course. This must be done before your case is over. If it is not, your case 

will be closed without your receiving a discharge.

 

 

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Foreclosures:

 

It may not be much comfort to those of you facing foreclosure on your property, but even such well known names as Paul Teutel and Orange County Choppers are facing foreclosure action. In this case, the company is not filing for bankruptcy, rather, they are trying to modify the mortgages on their buildings because of the drastic decrease in their value.  Apparently, they are having trouble getting anything done with their mortgage companies, a situation which is all too familiar to many of our clients. 

 

Read about it here:

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An object lesson to those whose homes are in the foreclosure process, but who are also working on loan modifications with their mortgage lenders: In Maricopa, Arizona, a homeowner's house was foreclosed on because employees at Chase Bank forgot to tell Freddie Mac officials that the property was the subject of a loan modification. Read more about it here:

 

 

If you are in a similar situation, don't think that just because you are working with your lender on a modification your home is safe. If you do not have the loan modification documents in hand within a week of the foreclosure date, you may need to consider taking some other action to ensure that your home is not foreclosed on. If you file a Chapter 13 case to stop the foreclosure, you can still continue with the modification process, in most cases.

 

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A bill has been introduced in the House of Representatives which would put and end to the Home Affordable Modification Program (HAMP) citing the Inspector General's characterization of the program as a failure. Read more here:

 

 

 

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Bankruptcy

 

The big debate in the bankruptcy arena, at the moment, is whether the Bankruptcy Code should be amended to allow States to declare themselves bankrupt. This is often mentioned in connection with relieving a State of the burden of paying pensions to its retired employees. Read the pros and cons here:

 

 

 

http://news.yahoo.com/s/nm/20110125/pl_nm/us_usa_states_bankruptcy_senate       

 

Georgia Senator Johnny Isakson's opinion here:

 

 

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So your bankruptcy case is over and you have received your discharge, what do you do about reestablishing your credit? Read some tips here:

 

http://www.rimborsolicenza.org/bad-credit-tips-credit-after-bankruptcy/         

 

Want to buy a house after your case is over? Read this:

 

                    

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Michael Jackson's dermatologist, Arnold Klein, has filed a Chapter 11 case.  Read more here:

 

 

Toni Braxton has, apparently, lost her battle to keep her home in Duluth, Georgia from

foreclosure after the filing of her Chapter 7 case last November. Read about it here:

 

 

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Georgia up, Tennessee down.

 

Personal bankruptcy filings were at a 5 year high in the U.S. for 2010 with Hawaii and California leading the nation with a 28.9% and 25% increase in filings, respectively.

Georgia showed a 6.1% increase, while Tennessee was among the few states with a decrease in filing of 7.2%