Stand by: I’m going to say something nice about BAPCPA, the bankruptcy “reform” law of 2005. The debtor education requirement that is a condition of getting a discharge is a good idea. Just this week, two clients have reported that they learned useful stuff from the required program. Filing bankruptcy is a teachable moment for […]
Immigrants and bankruptcy disclosure
The culture you grow up in shapes your views of truth telling, business ethics and privacy. I see that day to day as I counsel clients who are immigrants from other parts of the world. It’s sometimes an uphill battle to convince them that the “price” of bankruptcy relief is full disclosure, and that it […]
Loan modification resources
The good folks at the National Consumer Law Center have put together a page of links to various programs and procedures for troubled home loans. My colleague John Mlnarik has begun a discussion of the Obama Treasury programs announced earlier in March on www.norcalmortgagemods.com. Now, we need the Senate to move on S. 61 and […]
Debts not passed on when one passes on
The survivors of someone who dies are not personally responsible for the decedent’s debts. Yet debt collectors seem to be swarming the survivors to collect on bills the decedent owed, or didn’t owe. The New York Times reported on debt collectors who focus on collecting debts of the recently departed, by fair means or foul. […]
Banks have already lost on bad loans
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 […]
