Jeffrey M. Rosenblum, P.C.
A Fresh Start

April 2015 Archives

Debts that may not be discharged in Chapter 13 bankruptcy

Some New York residents may be familiar with how the bankruptcy system works. By filing for bankruptcy protection from creditors, some or all outstanding debts may be discharged upon the completion of the process. However, there are some obligations that will be unaffected. For instance, those who owe back taxes, spousal support or child support will still owe that money even after the case has been resolved.

Individuals in bankruptcy could walk away from a home

A New York resident who is currently going through a bankruptcy or someone who is considering bankruptcy as an option may want to know if they can walk away from a home during the proceedings. While it is sometimes possible to do so, there are many considerations homeowners who are in bankruptcy need to take into account before they can stop making their mortgage payments, including the type of bankruptcy that is involved.

Fewer people filing for bankruptcy due to rising costs

A recent study conducted by economists from the Federal Reserve Bank of New York and Columbia University suggests that the costs associated with filing for personal bankruptcy could cause some people to become insolvent. The researchers looked at the impact that the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act has had on bankruptcy filings.

Qualifying for a new home loan after foreclosure

People in New York who have declared bankruptcy or had a foreclosure may be able to qualify for a new home loan under a federal program called 'Back to Work - Extenuating Circumstances." Introduced in 2013, the Federal Housing Administration initiative is designed to help those who have gone through a financial hardship and would otherwise not be able to qualify for a new home loan.

Supreme Court reconsiders past ruling on mortgages

New York homeowners with second mortgages may want to know about a case being discussed by the Supreme Court regarding how bankruptcy should affect the status of "underwater" second mortgages. The case involves allegations that the current system, which is governed by the precedent established by a 1992 Supreme Court decision, allows the lien holders of second mortgages to prevent some borrowers who have declared bankruptcy from avoiding foreclosure.