Automatic Stay, the Discharge and Unlisted Creditors
The objective in filing for bankruptcy relief is obtaining a discharge of your financial obligations and to acquire a “fresh start”. The process in receiving this discharge takes time after you file the bankruptcy petition. The discharge in a simple “no asset” chapter 7 usually runs between 100 and 120 day before ordered. A chapter [...]
Purchase money security interest includes negative equity
A PMSI, or purchase money security interest, is an interest acquired by a creditor when they extend credit to enable the borrower to acquire particular collateral. Thus, the lender obtains a security interest in the collateral as a condition for their extension of credit. This PMSI is memorialized by a writing. A common example of [...]
Loan Modifications
I place this topic under the bankruptcy blog because mortgage modification is becoming a viable alternative to bankruptcy in many cases. I do not recommend a bankruptcy to everyone who walks though the door. We always explore other possible options to the need to file for relief. Now that the real estate market has bottomed [...]
Forced Placed Insurance
I bring up this topic because I have a disproportionately high percentage of my clients who have in place “force placed insurance”. What is this? Forced placed insurance is the legal practice employed by lenders to insure their collateral when the borrower allows the property to go without insurance. While it is quite evident that [...]