Recent Blog Posts

Chapter 13 Loan Modification saving $300 per month and capitalizing $15,000 of arrearage

Westchester County Bankruptcy Lawyer — Tue, 15 May 2012 21:15:00 GMT

For these particular clients who were in Chapter 13, the bank delayed and delayed. The bank continually asked for more documentation and upon our providing same would spend months reviewing it. Finally, at a loss mitigation status report in bankruptcy court Judge Drain told bank's counsel that if they asked for one more piece of paper they would be required to have a bank officer appear. Three days later they asked for more documentation and were required to appear in court. On the court date the bank sent a representative from Texas to White Plains along with high powered counsel from one of the country's most respected law firms based in Virginia. The bank representatives did not have much to say, but promised a response in the near future.

About two weeks later the bank's attorney contacted a Westchester County bankruptcy lawyer and told us that a loan modification had been proposed that did not change the interest rate. While seemingly disappointing as it turns out the modification lowered the monthly payments by over $300 and tacked the arrearage on the back of the mortgage. Because our clients would have had to repay the arrearage in the Plan, their Plan payments were also lowered.

Another fine result based on the Bankruptcy Court's loss mitigation procedures. Once again we applaud Judge Drain for refereeing this modification to a successful conclusion.

If you need to file a Chapter 13 bankruptcy or loan modificaiton, contact Bronson law Offices today to set up a consultation.

Chapter 20 Loan Modification saving $770 per month

Westchester County Bankruptcy Lawyer — Fri, 11 May 2012 21:12:00 GMT

A Westchester County bankruptcy lawyer loves doing Chapter 13 bankruptcies for our clients. Although our clients are never happy to have to consult a bankruptcy attorney we try to make the experience as pleasant as possible. Our team of attorneys and legal assistants is very caring and we establish personal relationships with many of our clients. We serve the local community and are very happy to provide solutions to tough financial situations.

Recently, clients for whom we had previously filed a Chapter 7 bankruptcy came back to us three months after their discharge and told us of they were behind in making payments on their house. Apparently, during the Chapter 7 they stopped making payments. We applied for a loan modification for these clients and they were turned down for lack of income, although our analysis showed that they should qualify. Upon exploring this situation with the lender it became apparent that we were not going to make any progress following standard procedures. We suggested filing a Chapter 13 for loss mitigation purposes. Based on the same documentation as we presented for the loan modification previously our clients were granted a loan modification saving them $770 per month. Although a discharge for unsecured debt cannot be obtained in a Chapter 13 that is filed within 4 years of the filing of a Chapter 7 petition, loss mitigation and repaying arrearage can be very effective. We are now working on modifying the second mortgage for this client.

Contact Bronson Law Offices today if you or a loved one need to file a Chapter 13 bankruptcy case.

Chapter 7 Bankruptcy May Not Be Right For You

Westchester Bankruptcy Lawyer — Thu, 01 Dec 2011 00:02:00 GMT

If you are trying to decide if you should file for Chapter 7 bankruptcy, you must first decide if it makes financial sense. To start, you need to determine if your debts are mainly of the type that require a judgment, and if you have any property or income that can be seized by creditors if they obtain a judgment. If your property is exempt and your income comes from Social Security, your creditors will not be able to take anything from you and they probably will not go to the trouble of obtaining a judgment. If you find yourself in this situation, regardless of how much you owe, nothing bad will happen to you if you don't file for a Chapter 7 bankruptcy.

Chapter 7 bankruptcy does not discharge certain types of debts, and therefore it doesn't make sense to file for a Chapter 7 bankruptcy if your primary goal is to erase these nondischargeable debts. Nondischargeable debts include alimony obligations, back child support, student loans, recent debts for luxuries and more.

Overall, it can be tricky to decide whether or not a Chapter 7 bankruptcy is the right financial choice. A Westchester County bankruptcy lawyer from the Bronson Law Offices, P.C. can assist you in making the right choices for your case. Contact a Westchester County bankruptcy attorney today for answers to your debt questions and legal help with your current situation.

Second Mortgages

Westchester County Law Firm — Wed, 21 Sep 2011 03:35:00 GMT

Many people have taken out home equity loans or second mortgages. Second mortgages can be modified the same way first mortgages. Hamp has a provision for second mortgage modifications. In a Chapter 13 bankruptcy it is possible to strip the second mortgage from the house and make it like unsecured debt. It is conceivable that the client would only have to repay 5 to 10% of the second mortgage in a strip. Accordingly if the housing crisis ceases and home values begin to increase again, the house will not be burdened by the second mortgage. We have some very specific recommendations regarding second mortgages and we urge potential clients to discuss them with us. Huge benefits for homeowners can exist due to lien strips.

When it comes to modifying a second mortgage you should hire an experienced Westchester County bankruptcy attorney to assist. At our law firm we understand all aspects of mortgage modification and will be able to provide the best possible legal approach to yoru situation. Contact our law firm at 914-827-5238 and schedule a consultation today.

The Likelihood of Success of Loan Modification or Loss Mitigation.

Westchester County Bankruptcy Attorney — Tue, 20 Sep 2011 04:30:00 GMT

While the banks put homeowners through many hurdles on the way to obtaining a loan modification, if one is persistent enough and has the wherewithal to make the modified loan payment, eventually loan modifications are granted. When dealing directly with the clients the lenders provide very little guidance as to how to complete the forms. Most clients want to be honest so they just give the bank all the information they have hoping that the bank will look at everything in the best light and approve them. But they just don't do that and many homeowners end up sabotaging their own applications. Recently I saw a letter received by one of my clients on a loan modification application they had submitted before they came to see me. The modification was denied for "Lack of Hardship". I read the clients' hardship letter and although it was long and well done, it did not state a hardship other than "we can't afford to make the payment". When I questioned the clients I found out that their monetary problems stemmed from a divorce and a job that gave no raises for three years, as well as an increase in the mortgage payment because the ARM adjusted. That's what the hardship letter should have addressed.

While not everyone gets a loan modification, the likelihood of eventual success is high. Most people who apply on their own are denied for lack of follow up on documentation. For the clients that we represent most denials are for too much or too little income or too much arrearage.

Persistence is the key to getting a loan modification and making sure the documents present a situation that can be approved and good record keeping when dealing with the Bank. Also, it always helps to have the fall back of a Chapter 13 that puts more pressure on the bank to deal fairly.

Facing foreclosure and in need of a loan modification or mortgage modification? At our law firm a Westchester County bankruptcy lawyer will be able to provide the experienced knowledge and guidance your case deserves. Don't hesitate to contact a member of our staff and schedule a consultation to discuss your financial situation.

Types of Loan Modifications

Westchester County Debt Relief Lawyer — Sat, 17 Sep 2011 10:15:00 GMT

There are two basic types of loan modifications-Hamp (the government modification plan) and traditional modifications. The government HAMP program works very well once you qualify. Basically to qualify for HAMP the lender will have had to have borrowed from the government, which is most of the major banks with the exception of HSBC. There are many rules and limitations that can be seen on the Making Homes Affordable web site; however, one of the most important relates to gross income and the debt to income ratio. Income cannot be too high, or too low. Either way, the home owner can be disqualified, but again, you can always reapply. Net Present Value is also a determiner of whether or not the lender is required to offer you a Hamp modification. Net Present Value is a complicated formula involving many moving parts. Basically the NPV test examines whether the bank is better off offering a modification or foreclosing.

Traditional modifications are at the discretion of the banks and we find that about 50% of loan modifications that are offered tend to be traditional. At our Westchester County law firm we will be able to provide the legal guidance your matter needs. Our Westchester County bankruptcy lawyers have the experience necessary to assist with your claim, contact our firm and schedule a consultation to discuss your situation today.

Is the Housing Crisis over?

Westchester County Bankruptcy Lawyer — Fri, 16 Sep 2011 20:06:00 GMT

We believe that the housing crisis has not reached its peak as of yet. While foreclosures and foreclosure sales have slowed in recent months they will increase once the legal hurdles that have been encountered are straightened out. For instance the Robo-signing was unnecessary and the banks attorneys have figured out how to avoid the problems they were having. There are issues with MERS, but it is not likely to present irreparable problems for the banks. The fact is that despite the slip-shod paperwork and willy-nilly assignments of mortgages that took place, the courts are not likely to give homeowners a free ride. What we believe needs to happen is a widespread mechanism to reduce mortgages that are in excess of the value of the home. The government has toyed with this idea, but there is nothing in place today.

Alternatively, congress needs to provide the bankruptcy courts with the power to reduce the principal on residential mortgages. According to a New York Times article on August 25, 2011, Obama is weighing a refinance plan that would lower interest rates to 4% saving homeowners an estimated 85 billion dollars a year. It is unclear how such a plan would work.

Further the Times reports:" A broader criticism of a refinancing expansion is that it would not do enough to address the two main drivers of foreclosures: homes worth less than their mortgages, and a sudden loss of income, like unemployment. American homeowners currently owe some $700 billion more than their homes are worth" NY Times Aug. 24, 2011.

Facing a legal matter such as home foreclosure can be a very devastating and life changing event. At our firm, we have assisted numerous homeowners save their homes from foreclosure by seeing if they are eligible to file for bankruptcy. Contact a Westchester County bankruptcy attorney and discuss your financial situation today.

How Does Bankruptcy Help Home Owners?

Westchester County Bankruptcy Attorney — Wed, 14 Sep 2011 12:05:00 GMT

Bankruptcy stops foreclosure, pure and simple. Prior to a sale a bankruptcy filing causes the automatic stay to be implemented and no sale or foreclosure can take place for a period of time. During this period we work with the client to modify their mortgages so that they can capitalize any amounts owed and reduce the monthly payments. In a Chapter 13 bankruptcy the Southern and Eastern Districts of New York have a loss mitigation program that allows loan modification supervised by the bankruptcy judges. This program works very well for those individuals that want to keep their house.

In a Chapter 13 the homeowner has the absolute right to repay arrearage over 60 months while making their current loan payments. Not many homeowners can do that without assistance from another family member.

While a loan modification outside of bankruptcy court can have better results with the arrearage being capitalized, the banks are so hard to work with and modifications are routinely denied. When we go back and ask why, we find that many times the banks have made mistakes in inputting information. There response; however, is, "you can reapply". Consequently we end up reapplying two or three times for many of our clients until our clients get approved. If you are in risk of losing your home due to foreclosure and would like to see if filing for bankruptcy is an option for you then please call a Westchester County bankruptcy lawyer at 914-827-5238 today. By contacting a member of our firm you will be taking your first step to financial stability. Don't hesitate to consult with a member of our legal team today.

Do People Have to Give up Their Cars, Houses and Other Assets in a Bankruptcy?

Westchester County Debt Relief Lawyer — Tue, 13 Sep 2011 10:40:00 GMT

In most cases, there is no reason why you need to give up your personal assets when it comes to filing for bankrutpcy. We would not recommend bankruptcy if our clients had to give up substantial assets; we would recommend a Chapter 13 where they can keep their assets and repay a portion of their debts. In New York, since the beginning of the year, we have had these great exemptions that allow almost everyone to keep their assets. There are generous exemptions for home equity, cars, home furnishings, wearing apparel, some jewelry and retirement funds. Additionally, New Yorkers now can take advantage of the Federal Exemptions, which before January they were not allowed to utilize. These exemptions apply in Chapter 7, Chapter 13 and in debt collection cases.

A Westchester County bankruptcy lawyer from our law firm will be able to take a look at your financial situation and see what the best legal approach for your matter would be. We understand all aspects of bankruptcy law and will be able to assist with protecting your assets throughout the entire legal process. Contact a lawyer from our law firm and we will be able to assist with getting your financial situation back on track.

Does Bankruptcy Impose a Stigma?

Westchester County Debt Attorney — Mon, 12 Sep 2011 19:45:00 GMT

Bankruptcy should be viewed as a legal right where people undergoing financial stress have an outlet to fix their problems. Businesses utilize bankruptcy to better their position and end up being even more profitable. Bankruptcy is a tool and if you can benefit from it, you should utilize it. At least you should know your options. What I tell clients is that the government gave billions of dollars to the banks to bail them out when the economy started to go bad and the housing bubble burst. Today the banks have largely recovered and are experiencing record profits. The government, however, did not do much for the individual. Bankruptcy is the individual's bail out. It can give you a fresh start, wiping out unsecured debt. Even though bankruptcy filings are public, with the sheer numbers being undertaken anonymity is pretty much assured. There is no shame in utilizing the Federal law to deal with the financial burdens that were heaped on all of our shoulders over the last several years stemming from the housing crisis.

When facing a bankruptcy law related matter, you should consult with a legal advocate you know you will be able to trust. At our law firm a Westchester County bankrutpcy lawyer will be able to assist with getting your financial situation back on track. We will be able to take a look at your situation and see if you are eligible for filing for bankruptcy. Contact our law firm and set up a consultation with a member of our staff today.

Help For a Client in Foreclosure?

Westchester County Debt Relief Attorney — Fri, 09 Sep 2011 19:25:00 GMT

Our Westchester County bankruptcy attorneys have a number of different strategies that we utilize based on the clients goals. If the client has realistic goals sometimes we are merely trying to keep the client in the home for as long as possible. Other times we can actually design a strategy to modify the loan or repay the past due mortgage amount. We can help a client defend the foreclosure and we can attend mandated State court mediation. Alternatively we can utilize the bankruptcy courts as a forum to contest a banks proof of claim or we can utilize loss mitigation supervised by the bankruptcy court to obtain a loan modification.

Our bankruptcy lawyers fight for our clients using all tools available; however, the client has to be realistic. If there is just not enough money to pay the mortgage and the house is underwater (mortgage worth more than the house) sometimes surrendering the house is the best solution.

If you are losing your home due to foreclosure then you need to speak with a member of our legal team and see what the best possible legal approah would be. We understand how stressfull facing such a matter can be, we will stand by your side throughout the entire legal process. Contact our firm and schedule a consultation today.

How Are We Different From Other Attorneys?

Westchester County Bankruptcy Attorney — Tue, 06 Sep 2011 22:20:00 GMT

We believe we can be distinguished from other attorneys practicing in this area because we enjoy what we do. Our Westchester County bankruptcy lawyers love to educate our clients and spend a considerable amount of time trying to figure out strategies for them even before we are hired. Our legal team spends a generous amount of time during the free consultation and even when we can't help a potential client, they tend to be grateful for the information we give them. We love assisting with bankruptcy because of the fresh start that it offers. We like and respect our clients and are very sympathetic to their cause. When our clients tell us after our first meeting that they had a good night's sleep for the first time in a long time, we know we have been successful.

Addition of Attorney

We are pleased to announce the addition of Tara McDevitt to our staff. Tara has experience in bankruptcy and litigation. She adds the ability for our firm to offer foreclosure defense in state court and FDCPA litigation. Tara graduated in the top 5% of her St. Johns Law School class. She lives in Queens with her daughter. Tara is resident in our Queens office and is generally available for appointments.

When it comes to bankruptcy law related matters hiring an experienced Westchester County bankruptcy attorney would be the first step on your way to financial stabibility. At our law firm we understand the legal attention facing a debt related matter such as Chapter 7 bankruptcy or foreclosure defense requires. We will be able to provide the best possible legal approach to your situation, contact a member of our firm by calling 914-827-5238 today.

What are the Main Areas in Which the Firm Practices?

Westchester County Bankruptcy Lawyer — Tue, 06 Sep 2011 18:15:00 GMT

Bankruptcy is our primary focus. Our Westchester County bankruptcy lawyers counsel people regarding their financial situation to determine if bankruptcy is right for them. We then prepare the proper documents and walk our clients through the bankruptcy process. We are very good at making our clients feel comfortable during what they perceive as a very nerve racking experience.

Chapter 7 bankruptcy can be an amazing tool for people who have exhausted their financial resources, cannot afford to pay their credit cards and need a fresh start.

Chapter 13 bankruptcy offers the ability to stop foreclosures, repay past due amounts over 5 years, and attempt to modify mortgages.

Our Westchester County bankruptcy attorneys also offer legal assistance for loan modifications, foreclosure defense and for Fair Debt Collection Practice Act law suits for clients being harassed by debt collectors.

An attorney from our Westchester County law firm represent clients in New York, Pennsylvania, New Jersey and in certain instances in Connecticut. If you are facing a debt realted matter then you should contact a lawyer from our legal team and discuss your financial situation.

The Honest Debtor Gets the Discharge

Bronson Law Offices — Tue, 05 Apr 2011 03:09:00 GMT

Every bankruptcy requires a meeting with the trustee for the mandatory examination commonly known as the 341 meeting. For most clients this meeting is very short and the questions and answers are fairly mundane. Some clients however have more complicated situations and the goal of our office is to prepare the petition with as much helpful disclosure as possible in order to avoid lengthy questioning. It is not always possible to anticipate the questions the trustee will ask. When the trustees go off on tangents or focus on points that were not anticipated it is important that the client be honest, and not anticipate what the "right" answer may be.

I have seen many debtors attempt to hedge their statements being unsure of the best position to take. While it is important to be prepared for the questions the trustee will ask, the twists and turns of the trustee meeting cannot always be anticipated. When I prepare clients I tell them to keep their answers short and be concise. I may even prepare them with specific answers to difficult questions so that their case is presented in the best light. However the most important aspect of the trustee meeting is being truthful. The trustee respects an honest debtor and if an honest mistake is made, the petition can always be amended. For example I have seen clients who have completely forgotten that they own a time share at Disney world until the trustee asks the question. Upon detailed questioning by the trustee it becomes clear that the time share has little value, if any, and carrying charges are generally owed. The clients forgot to disclose the asset because they believed that they already forfeited ownership by not paying carrying charges. In such an event the trustee either asks the attorney to amend the petition or ignores the asset as inconsequential.

While preparation for the trustee meeting is critical, honesty trumps all and clients are best served if they are forthright and truthful in all their statements, rather than trying to figure out more obscure responses. Honest debtors receive a discharge in bankruptcy and thus obtain a fresh start to build their future lives.

If you need help filing for bankruptcy in Westchester County, or if you are wondering if bankruptcy is the right option for you, contact our office to arrange a consultation with bankruptcy attorney H. Bruce Bronson today!

Where Do I File for Bankruptcy?

Westchester County Bankruptcy Attorney — Wed, 22 Dec 2010 01:10:00 GMT

Most clients do not think about where they will be filing when they consider bankruptcy, however, it is important to hire an attorney who is familiar with the various jurisdictions and trustees who work in them. In the greater New York City area we have two Federal District Court divisions which consist of the Southern District of New York (SDNY) and the Eastern District of New York (EDNY).

The Southern District of New York consists of the Manhattan Division, White Plains Division and Poughkeepsie Division. The Manhattan Division serves the Bronx and Westchester counties. The Poughkeepsie Division serves Dutchess, Orange, Putnam, and Sullivan Counties and the White Plains Division serves Westchester County and Rockland County. http://www.nysb.uscourts.gov/

In the Eastern District of New York, the Brooklyn Division serves Queens, Kings (Brooklyn) and Richmond (Staten Island) and the Central Islip Division serves Nassau and Suffolk counties. http://www.nyeb.uscourts.gov/

The websites for the bankruptcy courts in both the Southern District and Eastern District of New York provide directions and a plethora of information regarding bankruptcy.

Our New York offices are located in Westchester County and Queens County, and provide convenient locations for us to practice bankruptcy law and serve our clients. Contact us today for a free consultation with an experienced bankruptcy lawyer.