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Archive for the ‘Bankruptcy Laws’ Category
Lee Steinberg files for Chapter 7 bankruptcy
Recently, sports agent Lee Steinberg filed for Chapter 7 bankruptcy. The agent is famous for representing top athletes like Troy Aikmen and inspiring the 1996 film Jerry Maguire and its main character.
Steinberg currently owes $1.4 million in a lease for a property in Newport Beach. The Chapter 7 bankruptcy filing lists total debts between $1 and $5 million, and only one asset of $475,000 in stock.
The sports agent said he accumulated debt while he was in rehab to recover from an alcohol addiction, and his business suffered as a result of these debts. Steinberg says he has been sober since 2010.
When debt becomes so overwhelming that a person is reduced to a substandard lifestyle and debilitating mental torment, bankruptcy may be the only way out. Declaring bankruptcy is an ordeal almost as bad as the indebted state itself. However, enduring such an ordeal and coming back may be indicator of future super star quality. Way one to start a comeback would be landing a personal loan after bankruptcy. Seeing it through according to the contract will indicate your reliability and creditworthiness.
Waiting in the Wings
One thing you should consider before declaring bankruptcy would be to take out a personal loan to consolidate your debt. This will pay off all your creditors, which is a great credit score booster. And your monthly payment will probably be far less than the aggregate of all your past creditors. You should start your search for such a loan by shopping on the web. Many folks have taken big hits on their credit scores because of these financially unstable times and many private lenders have stepped into this hot market. Read more…
While Bankruptcy is one of the most cost-effective and efficient legal means of walking away from an underwater or foreclosed home available, it is also, under the right circumstances, a better means of saving a home in danger of foreclosure than other non-bankruptcy strategies, such as mortgage modification.
Surrendering a home in bankruptcy enables you to walk away from the property without fear of either future collections or of a negative taxable consequence, without any negotiation with the bank holding your mortgage required. If you live in a so-called “deficiency state” like Michigan, lenders can pursue you for the balance of your debt on a mortgage after a foreclosure in most circumstances. A bankruptcy prior to walking away will prevent that from happening.
However, you may not want to walk away from your home. If your home is underwater or over-mortgaged only because of the presence of a second or even third mortgage on your home, it may be possible to remove those secondary mortgages with a Chapter 13 reorganization bankruptcy. If yo
Percentage of seniors filing for bankruptcy on the rise
Several recent bankruptcy studies have concluded that the percentage of seniors seeking bankruptcy protection is on the rise.
For instance, one study says that in 2006, seniors accounted for 7.8 percent of the nation’s total bankruptcy filings. In 2009, the number of seniors filing for bankruptcy increased to 8.3 percent of the total amount of bankruptcies filed in the U.S.
Experts in bankruptcy say that the demographic of people age 65 and older is the fast growing demographic choosing bankruptcy. One study notes, “While health issues and medical debts are also contributing to bankruptcy filings by the elderly, credit card debt among the elderly has also risen, with a median of $22,562 being owed to credit card companies among filers 65 years and older.”
Contact the Birmingham personal bankruptcy lawyers of Greenway Law, LLC at 205-324-4000 today, if your or someone you love is seeking experienced legal representation to assist them in filing for bankruptcy.
Video: Jon Corzine’s Prepared Testimony on MF Global Collapse (Excerpts)
Jon S. Corzine, former chairman and chief executive officer of MF Global Holdings Ltd., testifies before the House Agriculture Committee about the collapse of the firm and the strategy that led to a bankruptcy filing on Oct. 31. Corzine, who resigned his positions on Nov. 4, said in his statement that he never intended to break any rules. Read more…
TLC singer T-Boz seeks bankruptcy protection
Last month, former TLC singer 41-year old Tionne Watkins, or T-Boz, filed for personal bankruptcy with $768,643 in debt.
The bankruptcy filing shows that most of the singers debt is related to mortgage payments on a $1.2 million home. Watkins, a four-time Grammy award winner, and the rest of TLC filed for Chapter 11 bankruptcy in 1995 at the height of their popularity.
Now, the singer earns about $1,200 a month in royalties for the bands music. Sources report that she is owed around $250,000 in child support from her ex-husband.
Furthermore, the bankruptcy filing reveals that the singers current monthly income is $11,700. The filing also shows that Watkins spends around $8,821 every month.
Bankruptcy Loans – Still Possible with No Credit
Filing bankruptcy doesn’t mean that you can never have credit again. As a matter of fact, the point of filing bankruptcy in the first place is to help people who have made disastrous financial decisions in the past, learn from their mistakes and move on.
Bankruptcy loans are a great way to help you re-establish your credit and buy important items such as a home.
There are two types of bankruptcy loans:
-Debt consolidation loan.
-Post-bankruptcy loan.
While the debt consolidation loan may help those who have filed Chapter 13 bankruptcy pay off their creditors and begin to re-establish their credit earlier than making monthly payments according to their bankruptcy schedule, it can be a recipe for disaster for those who have failed to learn how to budget their money properly and stick to a budget by piling on even more debt to their overburdened financial situation.
The more common bankruptcy loan is the post-bankruptcy type of financing. Read more…
Did I Reaffirm my Mortgage Debt in My Bankruptcy?
In addition to consumer bankruptcy, my firm does a lot of non-bankruptcy debt relief work for Michigan consumers, some of whom have already filed a Chapter 7 bankruptcy with other law firms. Largely, these clients are attempting to save a home through a mortgage modification or other non-bankruptcy negotiation. The first question we have for these clients is: did you reaffirm your mortgage note obligation in your bankruptcy?
A reaffirmation agreement, as I have written about many times before on this blog, is an agreement that is struck during a bankruptcy process between the filing debtor and one of his or her creditors. The reaffirmation agreement must be signed by you (the debtor), your bankruptcy attorney if there is not what is called “undue hardship” (no or negative income left over at the end of the month after your basic household expenses are deducted from your monthly average income as listed on the bankruptcy petition), and the creditor. Dep
Foreclosure rate doubled from last year
According to the latest data from Fitch Ratings, foreclosures are almost two times as high as they were at the same time last year.
The agency uses Residential Mortgage-Backed Security, or RMBS, Performance Metric. Their most recent findings indicate that the rate of foreclosure on homes with delinquent mortgages has increased to 10 percent a month.
Officials say the apparent increase in foreclosures is related to last year’s discovery of problematic procedures in the foreclosure industry like “robo-signing” and the subsequent delay in many foreclosure proceedings.
Experts predict that home prices in the U.S. will drop by about 10 percent in the months to come.
If you or someone you know is facing foreclosure, contact the Birmingham foreclosure defense lawyers of Greenway Law, LLC at 205-324-4000 to discuss your situation with one of our attorneys today.