A Credit Slips post on HR 1106, the mortgage modification bill, . lamented that “people just don’t get that this law doesn’t create losses, it forces banks to acknowledge already existing losses, which is an important prerequisite to getting us out of this financial crisis.” Since the collateral for these loans at risk has already […]
Cancel card and enjoy convenience?
American Express is offering a cash reward for card holders who cancel their accounts. This is touted as a convenience to help card holders manage their finances. Huh? Is it my imagination, or weren’t credit card companies recently promoting the use of their cards as a means of conveniently managing money? Old Am Ex Blue, […]
“How do I know when to file bankruptcy” was David Leibowitz’s topic on the Bankruptcy Law Network. I don’t quibble with his list of ten events that say “it’s time to file”, but, my God, if you wait for those events, you’ve suffered far more than necessary arriving at the decision to get a fresh […]
Banking lobby ignores current mortgage law
Spokesmen for the banking lobby expect the world to stop spinning if bankruptcy judges gain the right to modify home mortgages. They construct a parade of horribles if a contract between a lender and a borrower is altered. What they don’t explain is why this very same power to modify mortgages has not crushed the […]
Banks Worsen Foreclosure Crisis
Business Week has a great (or sad) story detailing the reactions of the banking industry to the foreclosure crisis, from 2006 to the present. Banks and their advocates in Washington have delayed, diluted, and obstructed attempts to address the problem. Industry lobbyists are…working overtime to whittle down legislation…that would give bankruptcy courts the authority to […]
Mortgage bankers lobby for status quo
I feel like I’ve found my new website’s reverse image: meet the evil twin of SaveHomeWithBankruptcy, the mortgage banker’s Stop the Bankruptcy Cram Down. There will be lots to write about here and on Northern California Mortgage Mods, the companion blog that Doug Jacobs and I write, countering the mortgage banker’s view of the solution […]
Personal money management is complicated
My newest colleague in the Bankruptcy Law Network, Adrian Lapas, discussed the critical importance of developing a budget in connection with a Chapter 13 plan. Spend the plan payment on something else and your case may be dismissed. Budgeting for your post bankruptcy life is made more complex by a number of factors: Many people underestimate […]
Another voice in the savings chorus
I am not alone! A Wisconsin judge allowed Chapter 7 debtors to contribute to retirement savings in the face of a means test challenge claiming savings was an abuse of the bankruptcy system. Hurray! Another in the small band of those touting savings. In the Mravik case, the debtor’s Chapter 7 means test, which does […]
Falling rents make walking away cheaper
Those who elect to let their house go to foreclosure will find renting cheaper even than renting last year. A Business Week study named Sunnyvale-San Jose and Oakland-Fremont to the top ten cities where rents fell the most. I usually lead clients with homes in foreclosure through an analysis of “should they keep the house.” […]
Bankruptcy as opportunity
My friend bankruptcy attorney Doug Jacobs tackles client guilt about filing bankruptcy by getting the client to consider how much more than the original charge they’ve paid the credit card company over time. I have success getting clients to consider what they could do with the money they are now paying out on minimum payments […]
