There are hearings in Washington to explore giving Bankruptcy judges more power in rewriting mortgages. This could have a dramatic effect on defaulting Massachusetts homeowners, especially those that file for personal bankruptcy in Massachusetts.
Read MoreAccording to preliminary numbers from the American Bankruptcy Institute, consumer bankruptcies are down 22% nationwide in January. The initial press release does not include a breakdown for Massachusetts bankruptcies, but, antidotal evidence in this office and in other bankruptcy law offices in Massachusetts, comes to the same conclusion.
Read MoreMassachusetts homeowners facing foreclosure should consider reading Arizona Law Professor Brent White’s new book Underwater Home: What Should You Do If You Owe More on Your Home than It’s Worth? The book makes some excellent points that Massachusetts homeowners facing foreclosure should consider. For example, according to Professor White, it does not make sense to
Read MoreConsumer bankruptcies were up 9% for 2011 according to the American Bankruptcy Institute. The number, which hit 1,530,078, was 122,290 more than the total for 2009. Over 70% of the personal bankruptcy filings were Chapter 7. The numbers of Massachusetts Chapter 7 bankruptcies was up 13.9%, the 11th highest increase in the US.
Read MoreA new Massachusetts homestead law, which was supported by Governor Patrick, allows for automatic homestead protection of all homes in Massachusetts. All homes in Massachusetts will have an automatic homestead exemption of up to $125,000. Unfortunately, while the law protects all Massachusetts homeowners, we urge our Massachusetts bankruptcy clients to file a written homestead as well. Why? Because the written homestead, properly filed with the Registry of Deeds, provides $500,000 in protection. The cost of filing a homestead is $35, and the cost of retaining an attorney to assist you should be nominal as well.
Read MoreBankruptcy news indicates that the number of people filing bankruptcy in Massachusetts dropped in November. In fact, the numbers are down 13.3% from the prior month, according to the American Bankruptcy Institute, nationwide, not just Massachusetts bankruptcy. They are still up from November 2009, however. The total number of bankruptcies filed in 2010 is already significantly higher than 2009, which was about 30% higher for personal bankruptcies than 2008. Massachusetts Bankruptcy Court reports for year end are 2010 will be published next month.
Read MoreBy Samantha Taylor, guest author Any petition for a Massachusetts bankruptcy is filled so that you, the debtor can come out of your financial crisis and can start afresh. Most of your assets are likely exempt from your creditors. Thus your debt is discharged. It usually works best for those who have a large amount of unsecured debts. It does not pardon mortgage payments or other secured debts, however, the Massachusetts homestead law protects most homes. If you are not able to make mortgage payments, however, you need a lawyer to determine how to proceed. If you home is underwater, you may be able to allow a foreclosure and walk away without owning anything to the lender, or you may qualify for a mortgage modification. There are many advantages and disadvantages of Chapter 7 bankruptcy. They are as follows.
Read MoreOctober numbers are in and the news is that national filings are up 1.4%, according to the American Bankruptcy Institute. However, the numbers were down compared to October 2009. There were 130,329 filings in September and 132,173 cases in October. The ABI research team predicts 1.6 million consumer bankruptcies in 2010. Chapter 7 personal bankruptcy filings are approximately 70% of those cases.
Read MoreCollege students may have the second highest personal bankruptcy rate in the US. When you add credit card debt taken on by parents to help fund their children’s education, which we see often in our Boston personal bankruptcy practice, this is a scary statistic. In a national study, the EDSA Group determined that while 28% of college students that dropped out of school for academic reasons, 38% of college dropouts left for financial reasons. The actual reasons may be related to the way college is now paid for – more work study and fewer grants, more students and parents using credit cards to finance education, and more student loans. In Massachusetts, the trend is up for student loan defaults.
Read MoreOne of the most frequently asked questions from our Massachusetts personal bankruptcy clients is, “Can I keep my car?” The answer, generally, is yes. However, in a Chapter 7 personal bankruptcy case in Omaha, an heir to a fortune filed for personal bankruptcy protection last month and had to surrender his Maserati, which was sold by the Bankruptcy Trustee for $58,500.
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