How Chapter 13 can be used to stop foreclosure?

How Chapter 13 Can Be Helpful In Stopping Foreclosure?
Foreclosure are on the rise in Nevada, and especially in Las Vegas. Chapter 13 is one of the appropriate remedy. When should Chapter 13 be filed? Benefits of Chapter 13 in stopping foreclosure.
My clients quite often asked me one very important question whether they should continue to seek
mortgage modification, or go ahead and file a Chapter 13 to stop a foreclosure. It is of course a very
pertinent question. There is a very slow pace of lenders’ response to modification applications on one pretext or the other. Let me analyze it with more emphasis this time.
1. First of all, You need to know what kind of modification you are applying for. Again, your modification does not stop the foreclosure process. In fact, both are dealt by two different sections of the same bank and have virtually no liaison with each other. If that is the case, you may have a very limited time in which to deal with a foreclosure if you are turned down for a modification. Other programs, like the HAMP program, require that lenders stop foreclosures while they process modifications. It is important to know whether your lender is proceeding with foreclosure in parallel with a modification application, or suspending foreclosure. If the latter is the case, you will have more time to respond, but you still may have to respond quickly.
2. It is has to be determined right away by your lender and you should know as well whether you are likely to qualify for modification under the application guidelines. For example, the HAMP program requires that you show that you have sufficient income to make the reduced payments in order to get approval. If you just lost your job, and you have no income, you aren’t going to qualify for that particular program. If you can predict with a fair amount of accuracy whether you will be accepted or rejected for modification, you can plan accordingly.
3. Please read this blog quite often as I update this continuously even on holidays and please educate yourself about the foreclosure process where you live, and where your case is in that process. I have a tremendous amount of information which is free of course and I never hide anything from Nevada residents. I like them to be fairly educated and make their own smart decisions in this regard. Please do not wait until the last minute to talk to a knowledgeable foreclosure defense attorney in this regard. Time, is of course, the essence in these matters. There can also be differences in what a lender considers to be “in foreclosure” and what a lawyer would describe as “in foreclosure.” The best way to determine what the process is and where you are in it is to consult with a seasoned attorney who handles such matters in your jurisdiction. Your options are very limited if the home is foreclosed.
4. You may want to consider whether you have defenses to foreclosure. First of all, most modification agreements that I have seen contain some language that says that you are waiving any defenses to the mortgage. Know what you are giving up before you sign such a release. Further, you may also want to consider defending a foreclosure action as a third alternative to modification programs or Chapter 13. Many attorneys who handle such matters report that the most meaningful modifications that they see are those that are the result of settlement negotiations where defenses to foreclosure have been raised.
5. There is nothing wrong with Chapter 13 filing when nothing else works or if your lender has become very stubborn. Deal with him in any way possible and stop the foreclosure on your home. This is your fortress and if it is foreclosed, next home purchase is too far away. Fight back, and don’t procastinate.


Can You Keep Your Car in Bankruptcy?

Can You Keep Car If You File For Bankruptcy?
[Law office of Malik Ahmad can be contacted to get free consultation for bankruptcy]
I have been asked many times about keeping car after declaring bankruptcy. The simple answer is yes, you can keep your car. But also it this is a white elephant, and you are fed up making the huge monthly payments, you can get rid of too. The federal plan for bankruptcy does not like to wipe out everything you have. You still can keep a job, and of course driving from to work and back to home. A car is an indispensable tool, and one cannot live without it. You have to drive to work. So let’s handle this questions once and for all. Debtor who file bankruptcy can keep one car in Nevada up to $15,000. worth of equity. Again, you have to think if you can afford the payment and like to continue the car. The most important questions is that if you can afford the car payments.
By filing bankruptcy, you erase your personal obligation to pay debt. When a debtor reaffirms debt, she is agreeing to continue being obligated for the debt, as opposed to discharging it as part of the bankruptcy. As a condition of keeping the car, your lender will make you reaffirm the obligation to make your car payments. After you have executed the reaffirmation agreement with the help of your attorney, you will continue to make car payments and use your car exactly as you did before bankruptcy. Reaffirmation agreements must be taken seriously because once you sign, you have taken the obligations to make the payments as agreed. The Court will not approve your reaffirmation of your car loan if to do so would constitute an undue burden. Therefore, the consumer must be able to demonstrate that she can continue to make her car payments before the Bankruptcy Court will approve the reaffirmation.
Is Your Car Worth to Keep It?
One of the common misconceptions about bankruptcy is that you will lose all of your property if you file. This is simply not the case. Many people who file bankruptcy retain all of their property through the process through the use of the exemption laws. However, it is important to meet with a knowledgeable bankruptcy attorney to discuss your state’s exemption laws. Additional equity can be protected by using the state wildcard exemption. If you owe more than your car is worth you need not worry about exemptions since you have no equity in your car. The bankruptcy trustee will only seek to liquidate property that has equity which exceeds the amount of your allowed exemption. Keep in mind also that you would likely have the option of paying the Trustee the amount of the non-exempt equity in order to retain your car. To summarize, if you can afford to continue to make your payments and do not have non-exempt equity in your car, you will be able to keep it through the bankruptcy process. If you have fallen behind on car payments and need time to get caught up, chapter 13 bankruptcies may be an option to get you the car back.

What constitute bankruptcy fraud?

When you file bankruptcy, you take an oath (in 341 meeting as well) that all documents filed are filed diligently and not meant to defraud anyone. Also, within the Bankruptcy court, the officials of Trustee and the Department of Justice investigates all of the paperwork filed and can ask questions in a 341 meeting.
The latest reform of 2005 had made bankruptcy simpler and information, it can, however, be easier to forget to file many documents in Bankruptcy courts and make them subject to a formal investigation.Following is a link with the IRS which gives many examples of bankruptcy fraud.,,id=213766,00.html”>,,id=213766,00.html

What are the duties of a trustee in bankruptcy proceedings?

What are the duties of a trustee in a bankruptcy proceeding?
The trustee performs many important functions under the bankruptcy code. A trustee shall collect and reduce to money the property of the estate for which such trustee serves, and close such estate as expeditiously as is compatible with the best interests of parties interest;

– A trustee is accountable for all property received.
– A trustee ensure that the debtor shall perform his intention as specified in section 521(2(b) of the Code.
– A trustee investigate the financial affairs of the debtor.
– A trustee, if advisable, would oppose the discharge of the debtor.
– If the business of the debtor is authorized to be operated, file with the court, with the United
States trustee, and with any governmental unit charged with responsibility for collection or determination of any tax arising out of such operation, periodic reports and summaries of the operation of such business, including a statement of receipts and disbursements, and such other information as the United States trustee or the court requires.
– A trustee shall make a final report and file a final account of the administration of the estate with the court and with United States trustee.
– If with respect to the debtor there is a claim for a domestic support obligation, provide the applicable notice specified.
– Use all reasonable and best efforts to transfer patients from a health care business that is in the process of being closed to an appropriate health care business that is in the vicinity of the health care business that is closing.
– The trustee shall review all the materials filed by the debtor and not later than 10 days after the date of the first meeting of creditors, file with the court a statement as to whether the debtor’s case would be presumed to an abused under section 707(b) and not later than 5 days after receiving a statement shall provide a copy of the statement to all creditors

Finally, good news about housing market in Nevada

We hear bad news all the time about housing sector that we almost gotten used to it. Now, finally something came good on our radar screen.

How bankruptcy handles Home Retention?

How Bankruptcy Handles Homes Retention?
Law office of Malik Ahmad offers free consultation to prospective bankruptcy clients]
This is almost a continuous question as each of my client asks this invariably every time they meet me and of course on a non stop basis. “Can I keep my home”?

Of course, you can keep you home, if you file Chapter 7 bankruptcy or Chapter 13. Home is an exempted property, especially if you have filed homestead under Nevada laws. But this retention is temporary until the opposing lender’s counsel request a motion to lift stay. Invariable, the opposing counsel files a motion to lift stay and invariable it is accepted. Now, you are back to square one and is open to these vultures again, subject of course again, to foreclosure.
Rule No. 1
Do you wish you keep your home? Are you able to pay the mortgage and continue with the pre bankruptcy obligation? If that is the case, you can keep the home. You may down the road request loan modification, but that is a different case. First, if you wish to keep your home, you’re going to have to be able to pay the mortgage. You have three choices after you file the bankruptcy.
-You can surrender the property and have no obligations to pay anyone.
-You can reaffirm the debt, and continue making the payments and still like to assure your lender that such payments would be made as agreed before.
-However, sometimes, when a homeowner is already underwater on their first mortgage, a second or third mortgage can be modified or stripped under Chapter 13.

Rule No. 2.
Let us say you can afford your mortgage, the bankruptcy process would let you keep the home via Nevada exemption. In Nevada, the homestead exemption is $550,000. If you have equity up to $550,000, you can keep your home and safeguard against creditors. A home is at risk of being liquidated in a chapter 7 bankruptcy in Nevada only if there when there is non-exempt equity which exceeds the amount allowed to be protected under Nevada state or federal law. Again, we mean primary home here.

1. Again in Nevada, it is not uncommon to file a chapter 7, AND NOT REAFFIRM ON THE HOUSE, thus discharging the debtor’s personal liability, but continue to make the house payments and continue to live in the house. The advantage to this, from the debtor’s view, is that if the debtor later is unable to pay for the house, the creditor can repossess it through foreclosure, but the personal liability of the debtor is extinguished and down the road the lender cannot come back and sue for deficiency.
2. That takes care of the deficiency issue in Nevada. We have heard of this omnipresent issue all the time, and a bankruptcy resolves this lingering issue.

What Debts You Still Have to Pay Even After Bankruptcy?

While most of the debts can be discharged through bankruptcy, certain debts cannot be discharged via bankruptcy:

– court fines and penalties imposed for violating the law, such as criminal court fines and criminal restitution;

– debts you forget to list in your bankruptcy papers, unless the creditor learns of your bankruptcy case or the creditor could no longer file a claim after learning of the bankruptcy;

– student loans, unless it would be an undue hardship for you to repay;
– child support and alimony;
Under any bankruptcy chapter, once the bankruptcy case ends, most borrowers are discharged from, their former liabilities. In other words, courts excuses such borrowers from having to repay most of the debts. The borrowers then start over again with substantially clean financial slates, except that a record of the bankruptcies will generally remain on their credit records for ten years. The bankruptcy court entries a discharge order relatively early in most chapter 7 cases, unusually from four to six months after you file your petition. In chapter 13 cases, you make full or partial payment to creditors under a court confirmed plan over a period of time,which can be as long as five years, and then receive a discharge. Under the new law, debtors cannot obtain a discharge under Chapter 7 or 13 until they have taken an approved course in personal financial management.

– many property settlement obligations from a divorce or separation including past due amounts.
fraudulent debts (last-minute credit binges and/or cash advances);

– debts for personal injury or death caused by your intoxicated driving; and

– recent income tax debts and most other tax debts.