We have been practicing law in Boston and throughout Massachusetts since 1985. I have represented clients in District Courts, Superior Courts, the Appeals Court, Housing Court, Probate Courts, Federal Bankruptcy Court and the Federal District Court.
Discharging student loans under federal bankruptcy laws is very difficult. Even if you have a good case under the law, getting a discharge for federal student loans would involve significant time and effort to convince the Trustee, the Court, and the educational funding company. A recent decision handed down by the US Appeals Court demonstrated just that.
Read MoreNotwithstanding the upturn in the economy, the number of foreclosures in Massachusetts is up this year. In 2009, the number was 9,269, while this year the number is close to 10,000, through August. With the mortgage companies throughout the US stopping or slowing foreclosure cases because of improper documentation the rate of increase may slow. We will see.
Read MoreOur Massachusetts bankruptcy blog recently reported that GMAC Mortgage had stopped all foreclosure proceedings because of improper documentation. Yesterday, JP Morgan Chase announced they too would halt over 50,000 foreclosure actions as a result of in adequate documentation.
Read MoreOur personal bankruptcy clients often note that before their job loss or before their credit score reduction, they were quite satisfied. In a now famous study by Princeton University professors, the research shows that while happiness “rose steadily with annual income, the quality of the respondents’ everyday experiences did not improve beyond approximately $75,000 per year.”
Read MoreThe Federal Trade Commission’s new rules aimed at protecting consumers with credit card debt starts today. This is following a federal investigation that found fraud and deception of vulnerable consumers. Massachusetts consumers seeking relief from credit card bills will benefit from the new regulations aimed at debt relief companies but may still want to consider consulting with a Massachusetts Bankruptcy lawyer before signing up. The so called “debt relief agencies” are now required to disclose all fees and their refund policies based on actual expected results. Debtors must be given a “good faith estimate” of the time it will take to complete their debt relief program. In addition, the companies are required to inform debtors of the negative impact on their credit score. Most importantly perhaps is that the companies advertisements must be accurate with respect to how much savings their clients received.
Read MoreOur chapter 7 bankruptcy clients often ask how, if ever, they can buy a home after they have filed for federal bankruptcy protection. First of all, we counsel our clients to rebuild credit scores. Second, we address the Fannie Mae rules and regulations. Those rules clearly state that credit histories that includes a bankruptcy “represent a higher credit risk” however, “this does not mean that the borrower’s credit will not be acceptable.” They are looking for current outstanding debt, following the bankruptcy, four years time (absent “extenuating circumstances”), and reestablished credit. The regulations are not hard to comply with for many of our clients.
Read MoreGMAC Mortgage, the holding company formally an arm of General Motors, has announced that it will stop all foreclosures, evictions and purchase and sale agreements, and suspend sales of foreclosed properties in 23 states. The reason appears to be that many of the foreclosures they were undertaking were not properly documented – the lawyers for GMAC failed to secure the original promissory notes and other necessary documentation for court proceedings. Massachusetts homeowners should look carefully at any foreclosure actions, using a consumer or Boston bankruptcy lawyer to be sure the documentation is valid.
Read MoreMany of our Boston bankruptcy clients have outstanding tax liabilities in addition to credit card debt, motor vehicle and mortgage debt. Most have not heard that there are legal ways to discharge taxes. The general rule is that more than two years since the tax return was due, including extensions, taxes can be discharged in bankruptcy. Of course, when dealing with the Internal Revenue Service and the United States Bankruptcy Code, it is complicated and you should have a lawyer. And your taxes should be filed by a CPA if there are any complications. In particular, it is important that there was no fraud or other criminal activity.
Read MoreThis Boston bankruptcy attorney‘s blog has been pointing out Harvard Professor Elizabeth Warren’s effective work in getting Congress to establish the US Consumer Financial Protection Bureau (CFPB). The new agency, however, is a law yet to be implemented; there is no building, no employees, no new regulations. Today President Obama appointed Professor Warren to get the Agency started. True, it is not a “nomination” for the Senate to approve. But, in Washington these days, there does not seem to be a lot of cooperation, and with elections coming up, there is even less. Thus, it appears like an end run around politics to get something done: start up the agency to protect consumers.
Read MoreThis Massachusetts Consumer Blog predicts that Harvard Professor Elizabeth Warren will be appointed the first commissioner to the Consumer Financial Protection Bureau after her work and energy in lobbying Congress to create the consumer focused agency following the financial crisis. Professor Warren was instrumental in guiding Congress to pass the provisions of the financial overhaul bill regarding the Consumer Financial Protection Bureau. “They created a strong, independent consumer agency that will have the tools to rein in the industry tricks and traps and to cut out the fine print,” Ms. Warren said back in June.
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