Boston Bankruptcy Lawyer Blog

The federal Department of Treasury announced new guidelines to streamline mortgage application processes for all mortgage applicants, including those in Boston and Massachusetts who apply for a mortgage associated with Fannie Mae or Freddie Mac. Our bankruptcy clients often are not able to save their homes because interest rates, and other costs, are just too high. http://www.neilburnslaw.com/lawyer-attorney-1397148.html

Beginning June 1, under the new regulations, the lenders will be required to obtain all necessary documentation at the outset, thus saving confusing and rejection later on. Further, some lenders require the collection of documents twice; this will save that step. The lenders will now require two pay stubs and a release so that the lender can go on-line and obtain a tax return from the IRS. Since the program began there have been 900,000 mortgage modification applications - unfortunately, only 1100,000 have been approved. December data shows an improvement in the rate of approvals.

Continue reading "Feds Streamline Mortgage Applications for Massachusetts Homeowners" »

The Massachusetts Department of Public Utilities announced plans to increase energy efficiency with a goal of saving Boston and Massachusetts consumers over $2 billion per year over the next three years. Our clients are looking to save money on natural gas and electric bills under the Green Communities Act.

Essentially, the new law includes funding for the nations first carbon allowance auction, along with improved energy assessments of homes and incentives for the purchase of high efficiency lighting and appliances, heating and air conditioning and insulation. The plans require better multicultural and community based outreach. The requirements include a target of 2.4% savings in electricity costs, based on a decline in use of electricity, due to conservation. The Department of Public Utilities estimates that the law would add, or save, 4,000 jobs.

Continue reading "Massachusetts Consumers Will Reap Benefits of New Energy Policy" »

Our personal bankruptcy clients often point out that they are being "harassed" by the collection agencies and lawyers, in Boston and throughout Massachusetts. One Boston area law firm uses the brother of the attorney as their attack dog - he implies he is the lawyer and his words are vicious.

Thus, it is important for consumers to know their rights. The Federal Fair Debt Collection Practices Act protects consumers from abuse by collection agencies and collection lawyers. Note, the federal law does not apply to the actual creditor, only to "third parties" such as the collection agencies and collection attorneys. The Massachusetts law, Chapter 93A, Section 49, Debt Collection in an Unfair, Deceptive or Unreasonable Manner gives Massachusetts consumers additional protections.

Continue reading "Massachusetts Consumers Need to Know Fair Debt Collection Laws" »

Banker and Tradesman, a publication of the Warren Group published their bankruptcy statistics noting that Chapter 7 Personal Bankruptcies were up 33% in 2009. This is not news to readers of this blog or our website.

What is news, however, is that Banker and Tradesman acknowledges that Massachusetts is different. While all states have folks filing bankruptcy following layoffs and business declines, we don't have the medical bankruptcy rate that other states appear have. Instead we have seen an increase in the number of clients sensitive to huge interest rate hikes by the credit card companies.

What we have seen, I explained to Banker and Tradesman, is an increased number of clients who actually could pay their credit card debt. However, when the creditors unexpectedly increased the interest rates -- that pushed them over the edge: they see no way they can ever make the payments. When they file for bankruptcy, they get a fresh start, but they were not headed in that direction before the interest rate increases.

In Canada, a recent article by a bankruptcy trustee, found the same results.

Some of our clients have significant gambling debt when they come to us for advice regarding discharging debt in Massachusetts Bankruptcy Court in Boston.

Some research showed that approximately 10% of all personal bankruptcy filings are linked to gambling debt; and that 20% of "compulsive" gamblers ultimately file for bankruptcy protection.

Continue reading "Massachusetts Bankruptcy and Discharge in Boston Bankruptcy Court" »

Clients and potential clients in Massachusetts sometimes ask us if filing for a Chapter 7 Personal Bankruptcy will have any adverse effect on their current or future student loans. The answer is fairly clear: no. In 1978, Congress passed a law which prevented various types of discrimination against folks who filed for bankruptcy protection. With respect to denying student loans, the law states that a governmental unit "may not deny a student grant, loan, loan guarantee, or loan insurance to a person that is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act."

Continue reading "Can Universities in Boston or Massachusetts Discriminate Against Bankruptcy Filers?" »

According to initial numbers posted by the National Bankruptcy Research Center, there were over 1,410,000 personal bankruptcies filed in 2009. The total is up 32% from 2008. We have found that the number of clients qualifying for Chapter 7 personal bankruptcy, in which you discharge all of your unsecured and non priority debt has increased as well. The number of personal bankruptcies are the highest since the new, stricter, bankruptcy law went into effect in October, 2005.

Continue reading "Bankruptcy Numbers Up in Boston and Across Massachusetts" »

Clients and potential clients in Massachusetts sometimes ask us if filing for a Chapter 7 Personal Bankruptcy will have any adverse effect on their employment status. The answer is fairly clear: no.

In 1978, Congress passed a law which prevented various types of discrimination against folks who filed for bankruptcy protection. With respect to denying employment, that law states that an employer cannot "deny employment to, terminate the employment of, or discriminate with respect to employment against" anyone simply because he or she has filed for personal bankruptcy.

Continue reading "Can Massachusetts Employers Fire You for Filing for Bankruptcy?" »

While end of year statistics are not yet in, the good news for our Massachusetts clients is that the number of foreclosures is trending down. There were 27.3% fewer foreclosures through October 2009 (7,707) than the same period a year earlier (10,603). The auction numbers were down 9.8% for that time period. Statistics just out from Banker and Tradesman shows that November foreclosures are down as well.

Another good statistic is that the number of actual foreclosure deeds, which represents foreclosures that conclude (the property is not reclaimed by the owner) is also down significantly: 26.8% for the first 11 months of 2009.

Continue reading "Massachusetts Foreclosures Trending Down" »

Clients regularly ask us about their credit score. We are always on the lookout for information that will help our clients understand and upgrade their score. Recently, we have learned of new websites that may be useful to determine your credit scores. The following are a few we have found:

Credit Karma, owned by TransUnion, provides a credit score which is NOT your actual FICO score, but claims to be an indication of your FICO score. For no cost, the website provides helpful information for increasing your score. A nice feature is that you can check your scores as often as you wish. The fun part of this site is that you can simulate future events to determine how they would effect your credit score.

Continue reading "Credit Report Check Ups for Massachusetts Bankruptcy Clients" »

Many of our clients are worried about their retirement, their 401k accounts, and, of course, what to do about future investing. They are not alone. In a study undertaken by Wells Fargo, it was shown that workers are not saving sufficiently. Notwithstanding the significant loss of value of retirement accounts following the "crash" in 2008, according to their survey, only 23% of workers are saving more than they were a year ago, 57% are saving the same amount and 20% are saving less. On the other hand, 56% of pre-retirees are planning to work more years.

Continue reading "2010 Retirement News for Massachusetts Clients" »

A client of ours had her wallet stolen recently on Newbury Street in Boston, Massachusetts. After commiserating with her and then looking around the web, we have come up with a few suggestions should the same happen to you.

1. Use only initials on your printed checks so a thief will not know how you sign your name. Do not have your phone number on your check. Never put your social security number on your checks.

2. Do not sign the back of your credit cards. Write "photographic identification required" in the signature spot.

3. When paying a credit card bill, only write the last four numbers of the credit card on the check.

4. Make a copy of each and every document in your wallet (front and back) and keep it in a safe place. You can also make a PDF file of these documents and have them available in a web based storage account. Be careful with passwords for that account, however. You can do the same with your passport.

Continue reading "Stolen Wallet Tips" »

While it still feels like Massachusetts consumers are filing bankruptcies at record rates, the statistics may be encouraging right now.

Consumers filed 112,152 personal bankruptcies in November, 2009. This was a decrease of 18% from the October 2009 numbers. Nevertheless, the numbers are up 12% from the previous year. These figures are from the American Bankruptcy Institute.

Continue reading "Surprising Drop in Consumer Bankruptcies November 2009" »

Boston attorney Thiadora Pina appeared in Suffolk Superior Court on behalf of the owner of Brigham's Ice Cream stores on November 18, 2009. We represented the owner, Luke Cooper, individually, as a vendor filing suit against Brigham's Ice Cream's holding companies, including Deal Metrics, LLC.

The vendor alleged that Brigham's Ice Cream owed them a considerable amount of money. In their suit to collect that money directly from the bank holding Brigham's Ice Cream's funds, the vendor sought to also collect money directly from Luke Cooper. Attorney Pina argued on behalf of Mr. Cooper in an effort to deny the vendor the right to attach his personal bank accounts. She successfully presented her argument to the Suffolk Superior Court and the vendor's Motion was denied as to Luke Cooper, individually.

We are advising our Massachusetts clients to look into a loophole in the tax code for Roth IRA conversions in 2010.

The tax code has been amended to allow folks to do a reverse Roth IRA conversion in 2010. Here is how it can be executed:

Continue reading "More Roth Planning for 2010 and 2011" »