What is the new mortgage settlement? Are you included?

Who are these five big banks?

-Ally Financial
-Bank of America,
-Citibank,
-JPMorgan Chase and
-Wells Fargo
How much they are willing to pay? Terms:
-a total of $5 billion in cash.

They will also help homeowners who are underwater on their mortgages by reducing the principal on their loans by a combined $17 billion over the next three years.

How about refinancing?

Borrowers who qualify will get $3 billion in refinancing arrangements.

Improper foreclosure?

Those who were improperly foreclosed on will get a combined $1.5 billion. That probably nets out to less than $2,000 a person.

Impact?

Of course, this would have a sizable impact. Afterall, bank were not the only one to be blamed. The homeowners should except some responsibility (if not a lion’s share) and part of the blame as well. This would rejuvenate the economy but the banks have to be serious with this and not play game as usual and as they had continuously done before. Let the complainants suffers and naysayers should see the light of the day. Pay your mortgages folks on time. Enough is enough, let the good time roll. Everyone is suffering because few of us are not paying their mortgages regardless of the low interest. Lots of us are savings these mortgage payments. The result most of us suffering who are current on their payments and on commitments. It is a contract. Because of many non payers, the economy cannot progress. Like Ross Perot used to say, “if you don’t like the heat in the kitchen, move out”. People who do not like to pay, they would object if this is zero percent interest. Most of them are looking for free money. Yes, it is true. Produce the note was nonsense which was spread by paralegals and crooks. Most of them are languishing in jails. Initially, there was some fiasco when banks were rapidly purchases and notes were not produced. Now, they have solved this ‘storage” problem. Banks have notes, and they can produce. Most of the notes and promissory notes have run out their statutory limitations. We should learn how to be responsible again and accept where the blame lies. The banks have done their job, it is the homeowners who needed to take their part of the responsibility and help improve the economy. Stay in your homes, pays the bills, cut the chase, and be a proud homeowners.

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Here comes the revised Means Test Figures

Revised Means Test Figures, effective May 1st, 2012

The Census Bureau figures, IRS Data and Administrative Expenses Multipliers for Form 22 are revised effective May 1st, 2012. After updating Best Case Bankruptcy, users can view the new figures in the program by changing the expected filing date to May 1st, 2012 or later on the General tab in Form 22. Visit the U.S. Trustee’s Means Testing website for more information regarding the revisions. This update is available for immediate download. For a comparison of the old numbers to the revised numbers, please see the following table.

NV Means Test Tables – Effective 05/01/2012 – with change from 11/01/2011 State: NV Nevada (32)

Median Income – Living Allowance – Health Allowance – Transportation Allowance – Administrative Multiplier
Nevada Census Median Income Effective 05/01/2012

Period 1 Person 2 People 3 People 4 People 5 People 6 People 7 People 8 People Add’l
Year $44,508 $57,327 $62,776 $67,236 $74,736 $82,236 $89,736 $97,236 $7,500
6 Months $22,254 $28,664 $31,388 $33,618 $37,368 $41,118 $44,868 $48,618 $3,750
Month $3,709 $4,777 $5,231 $5,603 $6,228 $6,853 $7,478 $8,103 $625
SemiMth $1,855 $2,389 $2,616 $2,802 $3,114 $3,427 $3,739 $4,052 $313
BiWeek $1,712 $2,205 $2,414 $2,586 $2,874 $3,163 $3,451 $3,740 $288
Week $856 $1,102 $1,207 $1,293 $1,437 $1,581 $1,726 $1,870 $144
Median Income Change Between 05/01/2012 and 11/01/2011

Period 1 Person 2 People 3 People 4 People 5 People 6 People 7 People 8 People Add’l
Year +1,362 3% +1,754 3% +1,921 3% +2,057 3% +2,057 3% +2,057 3% +2,057 2% +2,057 2% 0 0%
6 Months +681 3% +877 3% +960 3% +1,028 3% +1,028 3% +1,028 3% +1,028 2% +1,028 2% 0 0%
Month +113 3% +146 3% +160 3% +171 3% +171 3% +171 3% +171 2% +171 2% 0 0%
SemiMth +57 3% +73 3% +80 3% +86 3% +86 3% +86 3% +86 2% +86 2% 0 0%
BiWeek +53 3% +68 3% +73 3% +79 3% +79 3% +79 3% +79 2% +79 2% 0 0%
Week +26 3% +33 3% +37 3% +40 3% +39 3% +39 3% +40 2% +40 2% 0 0%

National Living Allowance Effective 05/01/2012

Type 1 Person 2 People 3 People 4 People 5 People 6 People 7 People 8 People Add’l
Food $301 $537 $639 $765 $913 $1,062 $1,210 $1,359 $196
Housekeeping $30 $66 $65 $74 $88 $102 $116 $131 $0
Apparel $86 $162 $209 $244 $292 $339 $387 $434 $0
Personal Care $32 $55 $63 $67 $79 $92 $105 $118 $0
Miscellaneous $116 $209 $251 $300 $359 $417 $475 $532 $85
Total $565 $1,029 $1,227 $1,450 $1,731 $2,012 $2,293 $2,574 $281

National Living Change Between 05/01/2012 and 11/01/2011

Type 1 Person 2 People 3 People 4 People 5 People 6 People 7 People 8 People Add’l
Food +1 0% 0 0% 0 0% +8 1% +13 1% +18 2% +22 2% +28 2% +6 3%
Housekeeping +1 3% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0% +1 1% 0 0%
Apparel 0 0% 0 0% 0 0% 0 0% +1 0% +2 1% +4 1% +4 1% 0 0%
Personal Care 0 0% 0 0% +2 3% 0 0% 0 0% 0 0% 0 0% 0 0% 0 0%
Miscellaneous +29 33% +44 27% +54 27% +65 28% +78 28% +91 28% +104 28% +116 28% +13 18%
Total +31 6% +44 4% +56 5% +73 5% +92 6% +111 6% +130 6% +149 6% +19 7%

National Health Allowance Effective 05/01/2012

Allowance Change from 11/01/2011
Under Age 65 Age 65 & Over Under Age 65 Age 65 & Over
$60 $144 0 0% 0 0%

Local Housing Allowance Effective 05/01/2012

Allowance Change from 11/01/2011
County FIPS Type 1 Person 2 people 3 people 4 people 5 people 1 Prs 2 Ppl 3 Ppl 4 Ppl 5 Ppl
Carson City 32510 Utility $426 $501 $528 $588 $598 +33 8% +40 9% +42 9% +46 8% +47 9%
Mortgage $1,141 $1,340 $1,412 $1,575 $1,600 +52 5% +60 5% +64 5% +72 5% +73 5%
Total $1,567 $1,841 $1,940 $2,163 $2,198 +85 6% +100 6% +106 6% +118 6% +120 6%
Churchill 32001 Utility $423 $497 $524 $584 $594 +1 0% +2 0% +2 0% +2 0% +3 1%
Mortgage $872 $1,024 $1,079 $1,203 $1,222 +64 8% +75 8% +79 8% +88 8% +89 8%
Total $1,295 $1,521 $1,603 $1,787 $1,816 +65 5% +77 5% +81 5% +90 5% +92 5%
Clark 32003 Utility $431 $506 $533 $594 $604 +15 4% +18 4% +19 4% +21 4% +21 4%
Mortgage $1,299 $1,526 $1,608 $1,793 $1,822 +66 5% +78 5% +82 5% +91 5% +93 5%
Total $1,730 $2,032 $2,141 $2,387 $2,426 +81 5% +96 5% +101 5% +112 5% +114 5%
Douglas 32005 Utility $446 $524 $552 $616 $625 +19 4% +23 5% +24 5% +27 5% +26 4%
Mortgage $1,375 $1,615 $1,701 $1,897 $1,928 +101 8% +118 8% +124 8% +139 8% +142 8%
Total $1,821 $2,139 $2,253 $2,513 $2,553 +120 7% +141 7% +148 7% +166 7% +168 7%
Elko 32007 Utility $479 $563 $594 $662 $672 +2 0% +3 1% +4 1% +4 1% +4 1%
Mortgage $887 $1,041 $1,097 $1,223 $1,243 +44 5% +50 5% +53 5% +59 5% +60 5%
Total $1,366 $1,604 $1,691 $1,885 $1,915 +46 3% +53 3% +57 3% +63 3% +64 3%
Esmeralda 32009 Utility $580 $681 $718 $800 $813 +71 14% +83 14% +88 14% +98 14% +100 14%
Mortgage $469 $551 $580 $647 $657 -71 -13% -83 -13% -88 -13% -98 -13% -100 -13%
Total $1,049 $1,232 $1,298 $1,447 $1,470 0 0% 0 0% 0 0% 0 0% 0 0%
Eureka 32011 Utility $442 $518 $546 $609 $619 +14 3% +15 3% +16 3% +18 3% +19 3%
Mortgage $659 $775 $816 $910 $924 -14 -2% -15 -2% -16 -2% -18 -2% -19 -2%
Total $1,101 $1,293 $1,362 $1,519 $1,543 0 0% 0 0% 0 0% 0 0% 0 0%
Humboldt 32013 Utility $497 $583 $615 $685 $696 -16 -3% -20 -3% -21 -3% -24 -3% -24 -3%
Mortgage $796 $936 $986 $1,100 $1,117 +16 2% +20 2% +21 2% +24 2% +24 2%
Total $1,293 $1,519 $1,601 $1,785 $1,813 0 0% 0 0% 0 0% 0 0% 0 0%
Lander 32015 Utility $493 $579 $610 $680 $691 +23 5% +27 5% +28 5% +31 5% +32 5%
Mortgage $692 $812 $856 $955 $970 -23 -3% -27 -3% -28 -3% -31 -3% -32 -3%
Total $1,185 $1,391 $1,466 $1,635 $1,661 0 0% 0 0% 0 0% 0 0% 0 0%
Lincoln 32017 Utility $363 $426 $449 $501 $509 +31 9% +36 9% +38 9% +43 9% +43 9%
Mortgage $744 $874 $921 $1,026 $1,043 +96 15% +113 15% +120 15% +132 15% +135 15%
Total $1,107 $1,300 $1,370 $1,527 $1,552 +127 13% +149 13% +158 13% +175 13% +178 13%
Lyon 32019 Utility $441 $518 $546 $608 $618 +11 3% +13 3% +14 3% +14 2% +15 2%
Mortgage $967 $1,136 $1,197 $1,335 $1,356 +82 9% +96 9% +101 9% +114 9% +115 9%
Total $1,408 $1,654 $1,743 $1,943 $1,974 +93 7% +109 7% +115 7% +128 7% +130 7%
Mineral 32021 Utility $400 $470 $495 $552 $561 +32 9% +37 9% +39 9% +44 9% +45 9%
Mortgage $598 $702 $740 $825 $838 +117 24% +138 24% +146 25% +162 24% +164 24%
Total $998 $1,172 $1,235 $1,377 $1,399 +149 18% +175 18% +185 18% +206 18% +209 18%
Nye 32023 Utility $425 $499 $526 $586 $596 +6 1% +7 1% +8 2% +8 1% +9 2%
Mortgage $814 $956 $1,007 $1,123 $1,141 +57 8% +66 7% +69 7% +78 7% +78 7%
Total $1,239 $1,455 $1,533 $1,709 $1,737 +63 5% +73 5% +77 5% +86 5% +87 5%
Pershing 32027 Utility $429 $504 $531 $592 $602 -30 -7% -35 -6% -37 -7% -41 -6% -41 -6%
Mortgage $715 $840 $885 $987 $1,003 +30 4% +36 4% +37 4% +42 4% +42 4%
Total $1,144 $1,344 $1,416 $1,579 $1,605 0 0% +1 0% 0 0% +1 0% +1 0%
Storey 32029 Utility $432 $507 $535 $596 $606 +32 8% +37 8% +40 8% +44 8% +45 8%
Mortgage $1,018 $1,196 $1,260 $1,405 $1,428 +1 0% +1 0% +1 0% +1 0% +1 0%
Total $1,450 $1,703 $1,795 $2,001 $2,034 +33 2% +38 2% +41 2% +45 2% +46 2%
Washoe 32031 Utility $452 $531 $559 $624 $633 +17 4% +20 4% +21 4% +24 4% +23 4%
Mortgage $1,327 $1,558 $1,642 $1,831 $1,861 +69 5% +81 5% +85 5% +95 5% +97 5%
Total $1,779 $2,089 $2,201 $2,455 $2,494 +86 5% +101 5% +106 5% +119 5% +120 5%
White Pine 32033 Utility $378 $444 $467 $521 $530 +1 0% +2 0% +1 0% +1 0% +2 0%
Mortgage $740 $869 $916 $1,021 $1,037 +47 7% +54 7% +57 7% +64 7% +64 7%
Total $1,118 $1,313 $1,383 $1,542 $1,567 +48 4% +56 4% +58 4% +65 4% +66 4%

National Ownership and Local Operating Transportation Allowance Effective 05/01/2012

Allowance Change from 11/01/2011
County Region Type No Car 1 Car 2 Cars No Car 1 Car 2 Cars
All NV Counties WE Operating $182 $236 $472 0 0% 0 0% 0 0%
Ownership $0 $517 $1,034 0 0% +21 4% +42 4%
Total $182 $753 $1,506 0 0% +21 3% +42 3%

Administrative Expenses Multiplier Effective 05/01/2012

Judicial District Code Admin Multiplier Change from 11/01/2011
Nevada – All NV-A 6.50% -2.10

Inside a Foreclosure Factory of a Bank

This is an interesting article which shows the inner, in-house of a bank where non stop documentation is prepared to increase more foreclosure, which of course is avoidable. All credit of this articles goes to the writer of this article and not to me.

http://economywatch.msnbc.msn.com/_news/2012/04/19/11269115-inside-the-foreclosure-factory-theyre-working-overtime?lite

Can you rescind a reaffirmation agreement?

The bankruptcy Code is liberal in this regard. You can rescind your reaffirmation agreement at any time before the bankruptcy court enters a discharge order, or before the expiration of the 60-day period that begins on the date your reaffirmation agreement is filled with the court, whichever occurs later. You must notify the creditor that you are rescinding your reaffirmation agreement.

What are your obligations if you are reaffirming the debt?
A reaffirmed debt remains your personal legal obligations. It is not discharged in your bankruptcy case. That means that if you default on your reaffirmed debt after your bankruptcy case is over, your creditor may be able to take your property or your wages. Otherwise, your obligations will be determined by the reaffirmation agreement which may have changed the terms of the original agreement. For example, if you are reaffirming an open end credit agreement, the creditor may be permitted by that agreement or applicable law to change the terms of that agreement in the future under certain conditions.

Are you required to enter into a reaffirmation agreement by any law?
Of course, not. Only agree, if this is in your best interest. Make sure you can afford the payments you are reaffirming.

What if your creditor has a security interest or lien?
Your bankruptcy discharge does not eliminate any lien on your property. A “lien” is often referred to as a security interest, deef of trust, mortgage or security deed. Even if you do not reaffirm and your personal liability on the debt is discharged, because of the lien your creditor may still have the right to take the security property if you do not pay the debt or default on it. If the lien is on an item of personal property that is exempt under Nevada’s law or that the trustee has abandoned, you may be able to redeem the item

What a Bankruptcy Discharge Means under Chapter 7?

The bankruptcy court grants a discharge to the person named as debtor. However, it should not be treated as dismissal which has entirely different meaning.
The collection of discharged debts are prohibited.
The discharge prohibits any attempt to collect from the debtor a debt that has been discharged. For example, a creditor is not permitted to contact a debtor:
– by mail,
– by phone,
– or otherwise,
– to file or continue a lawsuit,
– to attach wages or other property,
– or to take any other action collect a discharged debt from the debtor.
There are also special rules that protect certain community property owned by the debtor’s spouse, even if that spouse did not file a bankruptcy case.

What is the punishment?
A creditor who violates this order can be required to pay damages and attorney’s fees to the debtor including of course a contempt of court from the bankruptcy court. This, however, should not be mixed up with a creditor’s valid lien which was not avoided or eliminated in the bankruptcy case. Despite all this, a debtor may voluntarily pay his debts that has been discharged.

Debts that are discharged.
The chapter 7 discharge order eliminates a debtor’s legal obligation to pay a debt that is discharged. Most, but not all, types of debts are discharged if the debt existed on the date the bankruptcy case was filed.

Debts that are not discharged.
Let us discuss debts which cannot discharged. Here is a laundry list of these debts:
1. Debts for most taxes.
2. Debts incurred to pay nondischargeable taxes;
4. Debts that are domestic support obligations;
5. Debts for most student loans;
6. Debts for most fines, penalties, forfeitures, or criminal restitution obligations;
7. Debts for personal injuries or death caused by the debtor’s operation of a motor vehicle, vessel, or aircraft while intoxicated.;
8. Some debts which were not properly listed by the debtor;
9. Debts that the bankruptcy court specifically has decided or will decide in this bankruptcy case are not discharged;
10. Debts for which debtor has given up the discharge protection by signing a reaffirmation agreement in compliance with the Bankruptcy Code requirements for reaffirmation of debts; and
11. Debts owed to certain pension, profit sharing, stock bonus, other retirement plans, or to the Thrift Savings Plan for federal employees for certain types of loans from these plans.

The law is complex, and it is always good to talk to a Nevada licensed attorney.

Are Federal Owed Taxes Dischargeable in Your Bankruptcy?

How to Get Rid of Back Federal Taxes in Bankruptcy?
We have been asked this question many times. As a matter of fact, Congress has already provided this important tool in the Bankruptcy Code but the important thing is that one should carefully use it without any collateral impact on the bankruptcy case. Let us visit them one more time. In order for those taxes to be discharged, the following conditions must be met.

1. First of all, the tax at issue must be of the dischargeable kind (income taxes for instance) and the tax must have been due and owing for a period of more than 3 years from the most recent date the tax return was due.

2. The tax return for the tax delinquent debt must have been filed more than 2 years before the current bankruptcy case was filed.

3. The tax debt relief at issue has been assessed by the taxing authority for more than 240 days prior to the filing of the bankruptcy case (federal taxes are usually assessed within 6 weeks of the filing of the return, the States vary).

4. The debtor, in filing the return must not have attempted to evade the paying of the tax nor can the return filed by the debtor be a willfully “fraudulent” return.

Effect of Offer in Compromise
An extension of the time period and offer in compromise stops any action from the IRS. Tax Return Must be Prepared Properly. Again, the “tax return” filed must actually be an acceptable tax return and not just a mere ruse of filing.

What kind of execution order required for garnishment in Nevada

Below you will find what an execution or order for garnishment in Nevada looks somewhat like.

NOTICE OF EXECUTION

YOUR PROPERTY IS BEING ATTACHED OR

YOUR WAGES ARE BEING GARNISHED

Plaintiff, ……………….. (name of person, filing garnishment or attachment), alleges that you owe the plaintiff money. The plaintiff has begun the procedure to collect that money. To secure satisfaction of judgment, the court has ordered the garnishment of your wages, bank account or other personal property held by third persons or the taking of money or other property in your possession.

Certain benefits and property owned by you may be exempt from execution and may not be taken from you. The following is a partial list of exemptions:

1. Payments received pursuant to the federal Social Security Act, including, without limitation, retirement and survivors’ benefits, supplemental security income benefits and disability insurance benefits.

2. Payments for benefits or the return of contributions under the Public Employees’ Retirement System.

3. Payments for public assistance granted through the Division of Welfare and Supportive Services of the Department of Health and Human Services or a local governmental entity.

4. Proceeds from a policy of life insurance.

5. Payments of benefits under a program of industrial insurance.

6. Payments received as disability, illness or unemployment benefits.

7. Payments received as unemployment compensation.

8. Veteran’s benefits.

9. A homestead in a dwelling or a mobile home, not to exceed $550,000, unless:

(a) The judgment is for a medical bill, in which case all of the primary dwelling, including a mobile or manufactured home, may be exempt.

(b) Allodial title has been established and not relinquished for the dwelling or mobile home, in which case all of the dwelling or mobile home and its appurtenances are exempt, including the land on which they are located, unless a valid waiver executed pursuant to NRS 115.010 is applicable to the judgment.

10. All money reasonably deposited with a landlord by you to secure an agreement to rent or lease a dwelling that is used by you as your primary residence, except that such money is not exempt with respect to a landlord or the landlord’s successor in interest who seeks to enforce the terms of the agreement to rent or lease the dwelling.

11. A vehicle, if your equity in the vehicle is less than $15,000.

12. Seventy-five percent of the take-home pay for any workweek, unless the weekly take-home pay is less than 50 times the federal minimum hourly wage, in which case the entire amount may be exempt.

13. Money, not to exceed $500,000 in present value, held in:

(a) An individual retirement arrangement which conforms with the applicable limitations and requirements of section 408 or 408A of the Internal Revenue Code, 26 U.S.C. §§ 408 and 408A;

(b) A written simplified employee pension plan which conforms with the applicable limitations and requirements of section 408 of the Internal Revenue Code, 26 U.S.C. § 408;

(c) A cash or deferred arrangement that is a qualified plan pursuant to the Internal Revenue Code;

(d) A trust forming part of a stock bonus, pension or profit-sharing plan that is a qualified plan pursuant to sections 401 et seq. of the Internal Revenue Code, 26 U.S.C. §§ 401 et seq.; and

(e) A trust forming part of a qualified tuition program pursuant to chapter 353B of NRS, any applicable regulations adopted pursuant to chapter 353B of NRS and section 529 of the Internal Revenue Code, 26 U.S.C. § 529, unless the money is deposited after the entry of a judgment against the purchaser or account owner or the money will not be used by any beneficiary to attend a college or university.

14. All money and other benefits paid pursuant to the order of a court of competent jurisdiction for the support, education and maintenance of a child, whether collected by the judgment debtor or the State.

15. All money and other benefits paid pursuant to the order of a court of competent jurisdiction for the support and maintenance of a former spouse, including the amount of any arrearages in the payment of such support and maintenance to which the former spouse may be entitled.

16. Regardless of whether a trust contains a spendthrift provision:

(a) A present or future interest in the income or principal of a trust that is a contingent interest, if the interest has not been satisfied or removed;

(b) A present or future interest in the income or principal of a trust for which discretionary power is held by a trustee to determine whether to make a distribution from the trust, if the interest has not been distributed from the trust;

(c) The power to direct dispositions of property in the trust, other than such a power held by a trustee to distribute property to a beneficiary of the trust;

(d) Certain powers held by a trust protector or certain other persons; and

(e) Any power held by the person who created the trust.

17. If a trust contains a spendthrift provision:

(a) A present or future interest in the income or principal of a trust that is a mandatory interest in which the trustee does not have discretion concerning whether to make the distribution from the trust, if the interest has not been distributed from the trust; and

(b) A present or future interest in the income or principal of a trust that is a support interest in which the standard for distribution may be interpreted by the trustee or a court, if the interest has not been distributed from the trust.

18. A vehicle for use by you or your dependent which is specially equipped or modified to provide mobility for a person with a permanent disability.

19. A prosthesis or any equipment prescribed by a physician or dentist for you or your dependent.

20. Payments, in an amount not to exceed $16,150, received as compensation for personal injury, not including compensation for pain and suffering or actual pecuniary loss, by the judgment debtor or by a person upon whom the judgment debtor is dependent at the time the payment is received.

21. Payments received as compensation for the wrongful death of a person upon whom the judgment debtor was dependent at the time of the wrongful death, to the extent reasonably necessary for the support of the judgment debtor and any dependent of the judgment debtor.

22. Payments received as compensation for the loss of future earnings of the judgment debtor or of a person upon whom the judgment debtor is dependent at the time the payment is received, to the extent reasonably necessary for the support of the judgment debtor and any dependent of the judgment debtor.

23. Payments received as restitution for a criminal act.

24. Personal property, not to exceed $1,000 in total value, if the property is not otherwise exempt from execution.

25. A tax refund received from the earned income credit provided by federal law or a similar state law.

26. Stock of a corporation described in subsection 2 of NRS 78.746 except as set forth in that section.

Ê These exemptions may not apply in certain cases such as proceedings to enforce a judgment for support of a child or a judgment of foreclosure on a mechanic’s lien. You should consult an attorney immediately to assist you in determining whether your property or money is exempt from execution. If you cannot afford an attorney, you may be eligible for assistance through ……………….. (name of organization in county providing legal services to the indigent or elderly persons). If you do not wish to consult an attorney or receive legal services from an organization that provides assistance to persons who qualify, you may obtain the form to be used to claim an exemption from the clerk of the court.