By Crispin Lozano
Question: I have been denied for a loan modification. My house has no equity but I want to keep it although I am three months behind on my mortgage payments. Can I keep my house if I file for Chapter 7 Bankruptcy?
Answer: You can keep your house even if you file for Chapter 7 Bankruptcy. When you file for bankruptcy you will be required to submit a Statement of Intention on what you want to do with your secured properties like your home and your car. You can state that the debt on your house will be reaffirmed. This means that you will honor the original terms of the mortgage on your house and you will pay the required monthly payments continuously even if you already filed bankruptcy. While your case is in Bankruptcy court you may negotiate with your lender for a loan modification, or a loan work out. Your late payments can be added to the principal if the lender agrees. It is more likely that the lender will give you a better loan terms because of your changed situation. There are lenders that grant loan modification after Chapter 7 Bankruptcy discharge. Since in Chapter 7 you can eliminate most of your unsecured debts like credit cards, medical bills, department store bills etc. the lender is more likely to give you a loan workout because they know that your paying capacity has improved with the elimination of your unsecured debts.
Question: Is Chapter 13 Bankruptcy the better alternative than Chapter 7 if I want to keep my house?
Answer: Chapter 13 is a payment plan bankruptcy and applies only to those individuals with regular income. Under Chapter 13 you will need to pay your current monthly mortgage plus the unpaid mortgage overdue account plus a portion of all unsecured debts. From your monthly payments the Bankruptcy trustee will add a commission of ten percent. Statistically about ninety percent of those who filed Chapter 13 ended up converting to Chapter 7 because they cannot afford the monthly payments. Although in Chapter 13, you can strip the lien on a second mortgage, it does not mean that you do not have to pay it. It only means that the second mortgage will become an unsecured debt which you will have to pay partially under your payment plan. In the final analysis Chapter 13 is more expensive and the chance of your discharge in three years is slim because either those who filed Chapter 13 either withdraw from the plan or convert to Chapter 7 later because they are paying more than they anticipated before.
Note: This is not a legal advice.
Immigration News
1. On December 23, 2010, we received an approval from the Immigration Court for a waiver of misrepresentation for an alien who entered as single but actually married.
2. The death of U.S. citizen parent will not be a hindrance to apply for a waiver of misrepresentation.
3. On January 5, 2010, we received an approval in Immigration Court of an adjustment of status based on good faith marriage despite an age difference of 18 years.
4. Petitioner’s death is not a problem if the beneficiary is in the U.S. when the petitioner died and at the time of adjustment of status.
5. Abused spouse of U.S. citizen or permanent residents can self petition even if there is a problem with the entry documents such as C or D visa or entry without inspection or assumed name.
6. Individual Tax Identification Number (ITIN) can be used for filing tax returns and is required before bank accounts can be opened.
Bankruptcy News
1. Chapter 7 will eliminate all unsecured debts. If you are near retirement age, you must eliminate most of your debts.
2. Bankruptcy will stop foreclosure actions. If your trustee sale date is 10 days before, you can still file for bankruptcy.
3. If your salary is being garnished, you have a court case about debts or you are being harassed by creditors, bankruptcy can stop garnishment, court cases, harassing creditors and eliminate the debt.
4. Bankruptcy is cheaper, faster and safer than debt settlement which has no guaranteed success.
5. Preserve your health, eliminate stress and live a happy life by eliminating your debts which is the root of all problems.
Crispin Caday Lozano is an active member of the State Bar of California and he specializes in immigration and bankruptcy law. He earned his Juris Doctor at Western State University College of Law in Fullerton, California. He is also a Certified Public Accountant and a Bachelor of Business Administration Cum Laude graduate. He has four offices which are located in Hayward, San Jose, Fresno and Bellflower, California. You can contact him at telephone number 1-877-456-9266.
Question: I have been denied for a loan modification. My house has no equity but I want to keep it although I am three months behind on my mortgage payments. Can I keep my house if I file for Chapter 7 Bankruptcy?
Answer: You can keep your house even if you file for Chapter 7 Bankruptcy. When you file for bankruptcy you will be required to submit a Statement of Intention on what you want to do with your secured properties like your home and your car. You can state that the debt on your house will be reaffirmed. This means that you will honor the original terms of the mortgage on your house and you will pay the required monthly payments continuously even if you already filed bankruptcy. While your case is in Bankruptcy court you may negotiate with your lender for a loan modification, or a loan work out. Your late payments can be added to the principal if the lender agrees. It is more likely that the lender will give you a better loan terms because of your changed situation. There are lenders that grant loan modification after Chapter 7 Bankruptcy discharge. Since in Chapter 7 you can eliminate most of your unsecured debts like credit cards, medical bills, department store bills etc. the lender is more likely to give you a loan workout because they know that your paying capacity has improved with the elimination of your unsecured debts.
Question: Is Chapter 13 Bankruptcy the better alternative than Chapter 7 if I want to keep my house?
Answer: Chapter 13 is a payment plan bankruptcy and applies only to those individuals with regular income. Under Chapter 13 you will need to pay your current monthly mortgage plus the unpaid mortgage overdue account plus a portion of all unsecured debts. From your monthly payments the Bankruptcy trustee will add a commission of ten percent. Statistically about ninety percent of those who filed Chapter 13 ended up converting to Chapter 7 because they cannot afford the monthly payments. Although in Chapter 13, you can strip the lien on a second mortgage, it does not mean that you do not have to pay it. It only means that the second mortgage will become an unsecured debt which you will have to pay partially under your payment plan. In the final analysis Chapter 13 is more expensive and the chance of your discharge in three years is slim because either those who filed Chapter 13 either withdraw from the plan or convert to Chapter 7 later because they are paying more than they anticipated before.
Note: This is not a legal advice.
Immigration News
1. On December 23, 2010, we received an approval from the Immigration Court for a waiver of misrepresentation for an alien who entered as single but actually married.
2. The death of U.S. citizen parent will not be a hindrance to apply for a waiver of misrepresentation.
3. On January 5, 2010, we received an approval in Immigration Court of an adjustment of status based on good faith marriage despite an age difference of 18 years.
4. Petitioner’s death is not a problem if the beneficiary is in the U.S. when the petitioner died and at the time of adjustment of status.
5. Abused spouse of U.S. citizen or permanent residents can self petition even if there is a problem with the entry documents such as C or D visa or entry without inspection or assumed name.
6. Individual Tax Identification Number (ITIN) can be used for filing tax returns and is required before bank accounts can be opened.
Bankruptcy News
1. Chapter 7 will eliminate all unsecured debts. If you are near retirement age, you must eliminate most of your debts.
2. Bankruptcy will stop foreclosure actions. If your trustee sale date is 10 days before, you can still file for bankruptcy.
3. If your salary is being garnished, you have a court case about debts or you are being harassed by creditors, bankruptcy can stop garnishment, court cases, harassing creditors and eliminate the debt.
4. Bankruptcy is cheaper, faster and safer than debt settlement which has no guaranteed success.
5. Preserve your health, eliminate stress and live a happy life by eliminating your debts which is the root of all problems.
Crispin Caday Lozano is an active member of the State Bar of California and he specializes in immigration and bankruptcy law. He earned his Juris Doctor at Western State University College of Law in Fullerton, California. He is also a Certified Public Accountant and a Bachelor of Business Administration Cum Laude graduate. He has four offices which are located in Hayward, San Jose, Fresno and Bellflower, California. You can contact him at telephone number 1-877-456-9266.
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