Bankruptcy Lawyer MA Matthew T. Desrochers » Bankruptcy in Massachusetts

HAMP Loan Revamped

admin — Mon, 20 Jun 2011 16:34:03 +0000

After a long and tedious road with HAMP Loans, people that are accepted into the program can finally start seeing the light at the end of the tunnel, a successful loan modification for their precious homes.

The Treasury Department finally was able to report that on average the same number of homeowners that were approved for trial loan modifications are being approved for permanent modifications. In March, that number was 29,000. Over the past year, the average has been 70% and has increased steadily until reaching the point at now, where it is a vast majority that has been approved.

In addition, the average number of months that a loan modification has taken to complete has decreased from 5.2 months to 3.5 months. This actually makes them ALMOST following the new HAMP guidelines of a 3 month trial modification before being approved for a permanent loan modification.

So while the program has made progress since its inception, it still is not helping that many people. Its helping 29,000 a month compared to the 90,000 that were scheduled to close in May. However, it is well worth it to try now because if you get a trial modification you would be well on your way to being back on track and enjoying your home.

Rebuilding Your Credit After Bankruptcy

admin — Mon, 13 Jun 2011 18:46:40 +0000

1. Stop feeling like you are a failure! The number of state residents filing for Chapter 7 bankruptcy in Massachusetts rose by 8.5 percent in 2010, as more than 17,000 filed for protection during the year. In this economy, any little set back could easily cause a person to need to file bankruptcy. Some of the current situations have been: loss of job, loss of income, medical bills, credit cards changing how much you have to pay each month, etc. In addition, if you adjust your attitude and say it happened what I do now and how do I keep from repeating it, you will be much more positive and make a better change.

2. Analyze what happened and move forward. If you want to change and prepare better for the future than you can!

3. Create a budget, under your means, and include an emergency fund. If you set up and follow a budget under your means and put money away for an emergency fund, than you will have less of a chance to file bankruptcy again.

4. Pay your bills on time. By paying all your bills on time you will see your credit go up. In some, instances your landlord could be reporting your rental history to the credit companies and this could be of benefit to your credit history and rebuilding your score.

5. Get a secured credit card, make on time payments, and keep your balance below 30%. A secured card allows you to put a deposit down of the amount of your credit limit and then they report your payment schedule to the credit bureaus monthly. If you close out the card with a balance of zero then you receive that money back. Do make sure that the card reports to the credit bureaus as some do not.

If you would like to learn more and/or receive assistance with bankruptcy or debt settlement, please contact us at (857) 244-1940 or fill out the form on the right.

Bankruptcy and Your Credit Score

admin — Wed, 18 May 2011 15:07:56 +0000

As a result of current difficult economic times, many people have been forced to consider bankruptcy. While bankruptcy has been a helpful and necessary process for many people, some are hesitant to take that step out of fear or a misunderstanding of how bankruptcy works. One common question for people is: How will bankruptcy affect my credit score?

How Your Credit Score Is Calculated

Scores range from a low of 300 to a high of 850, with the average score being 723 according to Bankrate.com. 22 pieces of data make up the Credit Score, but only five points make up the majority of the score. Note: Income is NOT a factor used to create your credit score. The five major pieces of information are:

- Payment history (35 percent of the rating): According to a recent CNN report, a mortgage payment that is 30 days past due can drop a score anywhere from 40 to 110 points. Being 90 days late can cause the score to fall 70 to 135 points.

- Length of credit history (15 percent): Creditors like to see consumers with established and lengthy credit histories

- New credit (10 percent)

- Types of credit used (10 percent)

- Debt (30 percent): scores calculate your score based partly on your available credit to your outstanding balances

Bankruptcy and Foreclosure

- Foreclosures may cause an 85-160 point drop

- Bankruptcy may drop a score 130-240 points

- Bankruptcies may remain on your credit report for 7 years for Chapter 13, and 10 years for Chapter 7, 11 or 12

Ways to Improve Your Score

- Pay bills on time — This is the most weighted factor in FICO scores.

- Keep credit balances low

- Don’t close credit accounts

Work with an Attorney

Bankruptcy is a complex process, but can give people the fresh start they need. If you are considering bankruptcy or concerned about how it will affect your credit and your future, discuss your situation with an experienced bankruptcy attorney.

If you would like to learn more and/or receive assistance with bankruptcy, loan modification or foreclosure, please contact us at (857) 244-1940 or fill out the form on the right.

Proposed Changed to Home Affordable Modification Program (HAMP)

admin — Fri, 29 Apr 2011 14:38:07 +0000

Not only has the foreclosure crisis been a problem in damaging the economy but so has the loan modifications. The Home Affordable Modification Program (HAMP) was supposed to help millions of people who were struggling to pay their mortgage. Below are some proposed changes to help the plagued HAMP program:

Prohibit banks from initiating foreclosure proceedings while a modification is being processed.
Any homeowner who makes three trial payments would be granted permanent modification. Many homeowners made payments on the trial modification for over a year and then they were denied their permanent modification.
Create training programs for banks and more enforcement to discourage violations through the Consumer Financial Protection Bureau.

If you would like to learn more and/or receive assistance with loan modification or foreclosure, please contact us at (857) 244-1940 or fill out the form on the right.

Chapter 13 Bankruptcy

admin — Wed, 27 Apr 2011 18:19:03 +0000

People not eligible to file a Chapter 7 bankruptcy may be eligible for Chapter 13. The key lies in protecting non-exempt assets.

For people opting to file bankruptcy under Chapter 13, they need to know that the procedure is a great deal more complex than a Chapter 7. Chapter 13 takes into account a detailed evaluation of income and a person’s expenditures to figure out what would be a suitable repayment plan. Debtors with non-exempt assets who happen to have a below average income according to the state median will typically make payments over a three year period otherwise they will make payments for five years.

In addition, anyone filing for bankruptcy will have to take credit counseling at least 180 days before their papers are filed.

If you would like assistance with determining what would be the best option for you regarding your debts or you would like to file for bankruptcy, please contact us at (857) 244-1940 or fill out the form on the right.

I Want to Keep My Home…Bankruptcy Might Be Your Best Option

admin — Thu, 07 Apr 2011 16:56:16 +0000

If you are having financial difficulties and fear that foreclosure of your home might be imminent, think long and hard about your options for debt relief, including the possibility of filing for bankruptcy. After all, bankruptcy can be a way that you get to keep your home because it could allow you to get rid of enough debts that you can afford to make back payments and keep your house.

While bankruptcy was once seen by some as a failure of some kind, and was often considered shameful, that is simply not the case anymore. Yes, bankruptcy will have an impact on your credit rating for a time, but it can actually improve the credit of one who is in danger of foreclosure. Most people who file for bankruptcy can begin to positively rebuild their credit in as little as a year, allowing them to once again qualify for auto or home loans, and obtain new credit cards.

If you would like assistance with determining what would be the best option for you regarding your debts or you would like to file for bankruptcy, please contact (857) 244-1940 or fill out the form on the right.

Economy Getting Better or Stuck in a Rut?

admin — Wed, 06 Apr 2011 16:56:08 +0000

Is the economy getting better or are is it still stagnant? This is a question on many peoples minds. While the White House says the economy is getting better some very prominent economists are comparing the current economic situation to the financial crisis of the 1970’s. During this time, the price of gold tripled, mirroring the rising cost of oil during that time, the dollar steadily lost value against gold and oil, as the prices of those commodities increased, and this led to high inflation in the late 1970s. All of which is mirrored in today’s economy.

Thus, if you are already struggling this may be the perfect time for you to wipe all you debts clean and start fresh with a bankruptcy. Especially, since the economy is stuck in a recessional rut and prices on goods may very well increase over the next several months.

Who Qualifies for Obama’s Home Loan Modification (HAMP)

admin — Fri, 18 Mar 2011 22:49:19 +0000

Under Obama’s loan modification plan the lender agrees to change the terms of your loan so that you can afford to make the monthly payments. Once accepted in to the program struggling homeowners will not have to worry about losing their homes because foreclosure is no longer an option.

There are many requirements homeowners have to meet in order to be eligible and not everyone who applies will be accepted. You will want to talk to an experienced attorney who will help you calculate your debt ratio and prepare an application in a way that will improve your chance of getting accepted.

There are two types of homeowners for which the home modification program is geared. The first is a group of borrowers who are able to pay their mortgages but who were denied refinancing because they owed more than their property is worth. The other group is those who are on the brink of foreclosure and need help right away.

Finally, there is no cost to apply for a loan modification so homeowners are advised to exercise caution when loan modification companies charge a fee for applying.

If you would like to learn more and/or receive assistance with loan modification or foreclosure, please contact us at (857) 244-1940 or fill out the form on the right.

Taxes and Canceled Mortgage Debt…Do I have to Pay?

admin — Wed, 16 Mar 2011 22:48:59 +0000

Normally, one would have to pay taxes anytime a past debt is forgiven in an amount that is over $600. However, there is a special exemption that exists that keeps people from paying taxes when the debt forgiven is related to losing their home. There are several common misconceptions that are good for everyone to know whether you are a current homeowner or a former homeowner.

The test to qualify for the special tax treatment is that the debt that has been canceled must have been used by you “to buy, build or substantially improve your principal residence.”

The house cannot be your second home; it must be your primary residence.
The debt can only be for acquiring or constructing a house and making capital improvements to the house; it cannot have been for non-qualifying purposes, such as refinanced mortgage debt used for kid’s tuition, buying cars, or paying off credit cards.
If you do refinance your mortgage with non-qualifying debt, you will only get the difference in the tax exemption.
The mortgage cancellation relief is capped at $2 million for singles and married taxpayers, $1 million for married owners filing separately.
The form on the IRS website, irs.gov, is Form 982 and Publication 4681

If you would like to learn more and/or receive assistance with loan modification or foreclosure, please contact us at (857) 244-1940 or fill out the form on the right.

Bankruptcy is Not an End All Solution

admin — Wed, 16 Mar 2011 18:54:26 +0000

Bankruptcy is not an end all solution. If you are thinking about filing for bankruptcy you should consider all options before you file that may be better for you. Such options are: Loan Modifications, Debt Management Plans, and Debt Consolidation.

The goal of loan modifications is to change your mortgage loan payments to a monthly payment that you will be able to pay easier.

The goal of debt management plans is to lower your total monthly payments by negotiating a lower interest rate and payment plan with your credit companies.

The goal of debt consolidation is to lower your average interest rate and payments by taking out a new loan with all of your debts at a lower interest rate and with a longer repayment period. This is an option you need to consider before you start missing payments as you get the best interest rates when your credit is the highest.

Bankruptcy should be only the final step in managing debt. There are so many options available before this comes about that only those that have exhausted all other debt repayment plan or debt consolidation options need even contemplate bankruptcy.