Obama Expands Mortgage Modification Program/ New Bankrutpcy Filing Fees as of 11/1/11

Posted on October 25, 2011 by admin

Gauss Law Firm Brief: 303.670.4242
Below you will find a brief update on and expanded mortgage modification program being adopted by the Obama Administration. It is also getting more expensive to go broke, and I’m providing a new schedule of bankruptcy related filing fees.

Obama Administration Expands Program For Mortgage Modifications
The Obama administration announced today that it would be expanding it’s mortgage modification program for Freddie and Fannie Mae backed mortgages. The expanded program, like the old one, only applies to persons who are upside down and current on their mortgages.

It is estimated that the relaxed rules will make another one million homeowners eligible for refinancing. The program has also been expanded for another 18 months.

My view is that while attempting to help is laudable, this expanded program will make little difference to the crises. 3.5 million homeowners are in foreclosure and /or more than 4 months behind in the United States. Fundamentally, I view this as yet another attempt to slap a little lipstick on this sweaty, hairy pig. This is a disaster and the problem with these voluntary modification programs is that it gives many false hope.

Spending two years trying in vain to get a modification does not help the financially stressed homeowner. Bankruptcy helps the distressed homeowner. The problem has always been that the big banks get paid on the mortgage insurance when homeowners default. While taking the bailout money these banks have done little to really rewrite mortgages and instead are sitting on those funds while collecting mortgage insurance. Jaded? Yep. But that is what I see.

Also the OCC (comptroller) is initiating a forclosure review process for about 4.5 million homeowners.  Some homeowners who have been forclosed upon, will be receiving a letter in the mail letting them know that their forclosure is reviewable by the agency.

If you are considering bankruptcy or a home mortgage modification stop by and I would be happy to help analyze your situation. For a few, the home mortgage modification may be a solid alternative.

I hope everyone had a great summer and will have a happy and healthy holiday season!

**New Filing Fee Schedule:

PETITION FEES   As of Nov 1, 2011
Chapter 7   $306
Chapter 9   $1,046
Chapter 11   $1,046
Chapter 12   $246
Chapter 13   $281
Chapter 15   $1,046
CONVERSION FEES    
Chapter 7 to a Chapter 11   $755
Chapter 7 to a Chapter 12   $0
Chapter 7 to a Chapter 13   $0
Chapter 9 to a Chapter 7   $15
Chapter 11 to a Chapter 9, 12, 13, or 15   $0
Chapter 11 to a Chapter 7   $15
Chapter 12 to a Chapter 7   $60
Chapter 12 to a Chapter 11   $800
 
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21 Things To Know If You Are Considering Bankruptcy

Posted on October 7, 2011 by admin

21 Things to Know If You are Considering Bankruptcy.

1. Meet with a bankruptcy lawyer sooner rather than later. Waiting until you have an emergency like a lawsuit or foreclosure just complicates the case. If bankruptcy is the best option, having time to plan will reduce stress, make your case go smoother, and quite possibly save you money.

2. Keep your bills. It is tempting to begin trashing bills when you don’t have the money to pay. Having your bills in order will make preparation of your bankruptcy case much easier. You should also get a free copy of your credit report from www.annualcreditreport.com

3. Do not repay friends or family members for personal loans. It is tempting to repay those closest to you, but if a bankruptcy is in your future this is a bad idea. You risk having the trustee go after that money in order to pay it to other creditors. This is called a “preference.”

It is best to wait until after bankruptcy to repay friends and family.

4. Keep your pay stubs and keep good business records. Bankruptcy of course depends heavily on your income. Your bankruptcy lawyer will need all of your pay stubs and business records for approximately one year in order to prepare your case. It is easier to just have this information on hand if you decide to file.

5. File your tax returns. If you are owed refunds and get them before you file, you will be able to keep them. If you wait until after you file bankruptcy to do your taxes, you may lose the tax refunds. If you owe tax, it will help you qualify for bankruptcy and help you get a grasp on your financial situation.

6. Do not let parents put property in your name for estate planning purposes. Often times, parents will want to transfer property to their children in order to avoid probate. If you end up having to file bankruptcy, you risk losing that property to the bankruptcy trustee.

7. Get needed medical treatment and dental treatment if possible. It makes no sense to file a bankruptcy and then get hit with an expensive medical bill the month after your case ends.

8. Do not transfer property to friends or family members. It’s tempting to “give” your valuable property to friends in order to keep it out of your bankruptcy, but there are of course rules against this sort of thing, and that includes gifts or “fake”sales. When you work with a professional bankruptcy lawyer, there are a number of legal ways to avoid losing things of this nature. Do not run the risk of ruining your case, or going to jail, by hiding property.

9. Once you are sure you are going to need to file, stop using credit. Charges that are made close to the time of filing your case get special scrutiny and you may have to repay them in your bankruptcy case.

10. Do not choose the first bankruptcy lawyer you come across. Meet a few lawyers and ask questions. Do not choose the cheapest bankruptcy lawyer you find. Those lawyers are cheap for a reason. You are filing a document which will affect your entire financial future, choose wisely.

11. Do not beat yourself up. Many good people are forced to file bankruptcy. It is not something any of us expected to have to do, but it’s not the end of the world. Having too much debt is enormously stressful. You will not be able to help anyone or accomplish anything, if you are seriously ill or dead. Make a rational decision with the help of a professional. Accept that you’re not a bad person for considering the idea of bankruptcy.

12. Do not use retirement funds or home equity to pay credit cards. If you end up filing bankruptcy this is simply money wasted, money that you could have kept in a bankruptcy. If the situation is that drastic that a bankruptcy may be necessary, meet with a professional before deciding to use retirement funds or home equity to pay down credit cards.

13. Do not cancel your health insurance in order to save money. It’s tempting to take the chance, but access to healthcare is crucial. If you are sick or dead, you are not in a position to help anyone or accomplish anything. Don’t skimp on medical care or health insurance, it’s too important.

14. Do not turn off retirement plan contributions. You can keep qualified retirement funds in a bankruptcy, and if you end up doing a repayment program (a chapter 13) you may continue to fund your retirement during the plan. Having a history of making contributions will help establish your right to continue building that account during a Chapter 13.

15. Do not consider hiding anything from your lawyer. We are human beings, and believe me, we have seen it all before. It is our professional obligation to keep your confidences and there is almost always a way to handle something negative properly and legally, as long as we know about it before hand and it doesn’t come out in court as a “surprise.” We are not here to judge you, we are here to help you, so be honest.

16. Do not get involved with a shady “credit counselor”. There are many quality people in that industry, but you have to be careful to avoid dishonest and greedy debt and credit counselors. If you do decide to use a credit counselor, do your research with the Better Business Bureau and get references before making a choice.

17. Do not air your dirty laundry on Facebook.. It’s tempting to complain or vent on sites like Facebook, but creditors and all sorts of lawyers are increasingly doing online research on people in order to try to get an advantage in the courts. Keep your private financial information private.

18. Do not be overly concerned about your credit rating. Your lawyer will help explain that a bankruptcy is not the end of the world. A credit score is simply an industry tool used to determine how much interest creditors will likely be able to charge you over time. That’s it! It is not the measure of your self worth as an individual.

19. Do not listen to Uncle Fred. Uncle Fred isn’t a lawyer, he hasn’t been filing bankruptcies for 16 years and he did not go to law school. Same goes for Aunt Esther. Get professional help with your bankruptcy questions and ignore the “experts” you may encounter in life.

　

20. Don’t write bad checks and ignore lawsuits. Writing bad checks can get you into criminal trouble as well as cause more debt. Ignoring lawsuits and in particular, interrogatories (questions from creditors about your assets which the court orders you to answer) can also lead to criminal trouble.

21. In summary, you should rely on professional advice and make an honest assessment of your situation. Keep good records, file your taxes and go see a professional about the idea of filing for bankruptcy as soon as possible. It’s not the end of the world, and in fact it may open up a world of opportunity for you and your family. I enjoy helping people through this process and I can be reached at (303) 670-4242. Robert Gauss, Esq. Bankruptcy Professional. More information is available at www.gausslaw.com

　

　

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Bankruptcy Services, Pricing Considerations

Posted on September 22, 2011 by admin

“$799 to file!” “$499 to start!” “Cheap and fast!,” etc. All of this sounds great when you are in need of a bankruptcy. But consider the reality. A decent professional is not going to charge you a cut rate to handle a legal matter that will effect your entire financial life. Do you really want to pay the price of a cheap lawn chair for your bankruptcy? Maybe you don’t, and here’s why:

Lawyers who charge so little do not have a. the time to give each case the attention it deserves and/ or b. the experience or ability necessary to give the case the attention it deserves. Bankruptcy is complex. From the initial decision to file, to pre-bankruptcy planning, to post petition issues, you need real, quality help. Most of the time a lawyer doing things right will be able to save you at least the amount you would’ve saved by going to a “cheap” lawyer.

Likewise, when I go to Bankruptcy Court, I regularly see the consequences caused by treating bankruptcy law like a hamburger stand. Improperly completed paperwork, undisclosed assets, time and expense to the client. Lately, and I kid you not, some of these cut rate lawyers have made themselves so busy that they are literally missing court appearances.

Do this most of all: meet with a few lawyers before you file. Ask questions about the law, your situation, office procedures, and the lawyer’s level of experience with bankruptcy. All good bankruptcy lawyers will welcome this. You will not find them frustrated or pressed for time or put upon, you will find them full of decent answers as to why they want to charge you a fair rate.

Poor bankruptcy lawyers will not have the right answers, and they will seem put upon by going through an “interview.” Most of all, meeting someone gives you a chance to get a real feel for their humanity. Does this person care? Your decision will become an easy one.

Quite frankly, when I get calls from people who already have a lawyer, but who cannot get that lawyer to return calls, I am often unsurprised when I hear the names. What did you expect? This person is charging you a fee appropriate for a used televison, so did you really expect a return call at 6:30 on a Friday?

You are already in a jam, and I know it’s hard to come up with the money to file, but I can guarantee you that it is well worth it. Where else in this life are you going to spend X, to get a 10x to 100x, return on your money. Bankruptcy is IT for people who need it. It’s the best deal you will ever get in your life, I guarantee it! ( to use a salesman type phrase, it’s irony folks. But seriously, it IS the best deal you will ever get)

A professional acts accordingly, a professional charges a fair rate, a rate that allows the case to receive real attention. I am available at (303) 670-4242. Robert Gauss.

(To this extent this is advertising for bankruptcy service I am required to state that I am a debt relief agency and that I help people file for bankruptcy under the US Bankruptcy Code. So there).

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