Are you STILL having problems with your mortgage servicer after catching up with your mortgage while in a Chapter 13?
Are you being charged a huge sum to catch up even after the bankruptcy is over? A mortgage servicer is required by federal law to perform an annual escrow analysis on all loans for which it manages an escrow account. But do they always do this?
Are you suffering not only from payment shock, but also negative credit reporting for these alleged deficiencies?
The Social Security Administration (“SSA”) assesses overpayments in any instance where it thinks it may have overpaid benefits. This most commonly occurs when a recipient doesn’t timely report a change in circumstances, such as income.
In many cases, the overpayment may be caused by the SSA itself, when it fails to update its records after receipt of a change in circumstances. Or the SSA may deposit benefits into someone else with a similar name. There is no way for beneficiaries to independently verify whether they are receiving the correct amount of benefits every month and instead they must rely on the SSA’s calculations.
Overpayments can be made over a lot of years – even 20-30 years. Frequently, a mistake is caught and a handful of years have gone by, and the money has long been spent, usually on reasonable and necessary living expenses.
I’m usually reluctant to talk much about pending bills recently introduced because so much can happen before a bill becomes a law. Remember that cartoon with the little bill walking from place to place? Wow, that dates me a bit.
But odds are something along these lines will get passed this year in part as COVID 19 relief: Student Borrower Bankruptcy Relief Act of 2019 and Protecting Homeowners in Bankruptcy Act of 2020 – the bill markups are found here.
If you have private student loans, we don’t need to wait for Congress. We frequently can discharge those private, high interest loans right now. If you’ve filed a bankruptcy if the past, we can reopen your case (as long as the bankruptcy pre-dates the loans themselves) and wipe the deck clear of many, if not most, private student loans.
This week I received an email from a borrower who believed that she didn’t have to make her private student loan payments due to COVID and the CARES Act.
Not true. While many private lenders have indeed voluntarily agreed to forbearance of two to six months per a recent Wall Street Journal article, “For Student-Loan Borrowers, There is Some Relief – but That Isn’t the Whole Story“. The article emphasized that these are uncertain times for all student loan borrowers, but especially those with private loans.
First, these short forbearances are coming to an end and decisions will need to be made.
Don’t forget to register and put tomorrow’s (9/1/20) TBBBA consumer Zoom lunch at noon on your calendar. An attendee link was blasted out to all Tampa Bay Bankruptcy Bar Association members.
The TBBBA is entering the Zoom age for the Consumer Lunches starting at Noon August 4 and continuing the first Tuesday of every month. The Zoom coordinates will be sent later in a TBBBA email blast.
| Webinar: Why you should care about the CARES Act
May 20, 2020 at Noon
The Tampa Bay Bankruptcy Bar Association will be hosting a FREE Webinar via Zoom on May 20, 2020 from 12:00 to 1:30pm. Why you should care about the CARES Act and its impact on Student Loans, Foreclosure, Collection, and Consumer and Business Bankruptcy. Christie Arkovich, Jake Blanchard, Nicole Mariani Noel and Chapter 13 Trustee, Kelly Remick, will discuss provisions of the stimulus bill that expand or create options for Debtors in Chapter 13 cases as well as Small Business Debtors under Subchapter V and many more. Panelists will also discuss foreclosure, forbearance, collection and student loan impacts. No cost to attend. This will be a live webinar and will not be recorded. Register here. Couldn’t come at a better time now that things are hoppin’ a bit more! I encourage our colleagues to register for local insight to help represent our clients the best we can in these trying times |
 It can be risky to reaffirm a mortgage in a bankruptcy, particularly when the property is underwater (worth less than what is owed), or you may need to move and sell quickly. A reaffirmation agreement puts you back on the hook to pay for the full amount of the mortgage, including interest, taxes, insurance, foreclosure fees and costs after a bankruptcy, if you elect to keep the home. Why would someone ever sign one of these? Well, most mortgage companies do not report payments being made on a non-reaffirmed mortgage. So how do you avoid the risk, while at the same time, benefit from timely payments being made which rebuilds credit?
SELF REPORTING MORTGAGE PAYMENTS WHEN YOUR LOAN WAS NOT REAFFIRMED The bankruptcy code does not require that you reaffirm, or sign a court order agreeing to continue the payments on your mortgage. But unless you are surrendering your house, you will want to continue paying because the house will eventually be foreclosed if you do not. Mortgage companies will not report your payments to the three major credit reporting agencies (Experian, TransUnion, and Equifax) if you have not reaffirmed. It is possible, nonetheless, to still get your payment history included in your credit report, as follows:
Additionally, you should keep the payment history, since that can be provided to anyone you’re applying to for new credit. |
I just found an eye opening video by Gary Fraley, a certified bankruptcy attorney in California, on why debt relief companies should be avoided!
Watch the video – it’s short, to the point, and there’s a cool saddle in the back ground — looks like a former Texas transplant to California. I kept looking for a cowboy hat, but that’s probably in his Ford truck hung on the rifle rack. Okay, I may have been watching too many Ranches on Netflix lately!
Courts are divided on this issue. The answer may matter as to whether a debtor in bankruptcy must pass the means test.
The federal Bankruptcy Code defines consumer debt as debt incurred by an individual “primarily for a personal, family, or household purpose.” … The court may classify student loans as either consumer debt or non-consumer debt.
Some courts, like the court in In re Gentri, 185 B.R. 368, 373 (Bankr. M.D. Fla. 1995), assume that student loans are consumer debts, but do not analyze, whether student loans are “consumer debts.” See In re Dickerson, 193 B.R. 67, 70 (Bankr. M.D. Fla. 1996); In re Chapman, 146 B.R. 411, 416 (Bankr. N.D. Ill. 1992).
Reboot Your Life: Tampa Student Loan and Bankruptcy Attorney Blog