Bankruptcy

Per U.S. District Court, bankruptcy filings in the United States is up 13% and surging higher. Inflation, high rates, and cost of goods and services are leading cause of unemployment and financial crisis among Americans.

https://www.uscourts.gov/news/2023/10/26/bankruptcy-filings-rise-13-percent

The wage attachment order is attached. Please give it to your payroll office to process ASAP.

Because the wage attachment was not put into place, the Trustee is missing your August payment and the trustee sent the attached notice that I sent to you on 9/8. You must get $594.66 to the trustee’s office (via TFS) by 9/18 or the case will be dismissed. Please send me a screen shot or some other proof of payment so that I can show that the trustee to prevent dismissal of the case.

Keep in mind that for your August and September payments, you will need to monitor your payments and pay directly to the trustee anything that the wage attachment does not. My office does not audit or double check the payments you make to the trustee to check for payment underfunding. You will need to make sure that the trustee gets the full payment each month – whether it be from the wage attachment or in the form of a direct payment from you through TFS.

Converting the case to Chapter 7 would not be helpful and probably harmful for two reasons:

1. You would lose the protection of the bankruptcy automatic stay. Your mortgage company is only being held at bay right now because you have a confirmed plan that pays the pre-petition and post-petition arrears. If you cannot catch up the arrears on your own and maintain the mortgage payments, then you will lose the house unless you can convince the bank to give you a modification. If losing the house is inevitable because you cannot afford the mortgage or plan payments, then the best option is to modify the plan to provide for the sale of the house while still maintaining the protection of the stay. A sale in chapter 13 is controlled by you, you control the price, realtor and timetable for sale. In chapter 7, the trustee sets all of the sale conditions and you do not control anything.

2. Based on current real estate valuation and the CMA we obtained almost 2 years ago, you probably have non-exempt equity in the house, and a chapter 7 trustee would take control of the house and would sell the house. You cannot say “no” to the trustee – who has legal authority to sell the house for the benefit of your unsecured creditors. When we filed the case almost two years ago, we had estimated according to a market analysis that it was worth $285,000d and subject to a mortgage claim of $228,000s. Your two household equity exemptions exempted all of the equity in the house based on a valuation of $280,000, but that was probably on the low end and since then, real estate prices have increased. A Chapter Seven trustee is required to sell the house in order to unlock the unexempt equity in the house for the benefit of unsecured creditors.

Brent

Hi just wanted to ask if a borrower can qualify for FHA loan less than a year on her CH 13 repayments?
Thank you

What’s the difference between chapter 7 Discharge and Dismissed when it comes to the waiting period to qualify for a mortgage?

A car dealer told me that I did not qualify to lease a car. I was only able to take out a loan. My BK was d/c over 2 years ago and I have worked very hard to re-establish perfect credit for the last two years.

WHY PEOPLE ARE FORCED INTO BANKRUPTCY?

Yes, you can secure a mortgage immediately following a Chapter 13 Bankruptcy. Most lenders will require one tradeline open for 24 months or more, or three tradelines open for 12 months. We do have access to a lender that will allow non-traditional tradelines such as rent history, utilities and subscriptions.

Minimum Loan to value is 70%. The lender will require reserves of 6 months and a credit score over 640. This is a great option for a borrower to get into a home and rebuild. They can refinance into a more traditional product in a few years when they have met the BK seasoning requirement.

I filed Chapter 7 Bankruptcy on November 2019 because my judgment creditors were renewing mynold judgments. I was discharged of my Chapter 7 on April 2020. I started applying for secured credit cards the day of discharge. I got 7 Secured credit cards, two credit builder loans. By the end of 2020, my credit scores were at 680 FICO. Secured credit cards and credit Rebuilder loans are the best to rebuilding your credit scores after bankruptcy

I have a couple who want a cash-out refinance loan on an owner-occupied property that is completely paid off. However, they have a Chapter 12 bankruptcy that was discharged a little over a year ago. Has anyone else experienced this situation and have advice on potential options for them? Thanks!

I have a client who wants to buy a house during Chapter 13 Bankruptcy with USDA LOANS. He was. Told yes from Cross-country Mortgage on FHA loans but not USDA LOANS. Two years into a five year Bankruptcy repayment plan.

Homeowners with equity in their homes can buy out Chapter 13 Bankruptcy while in an active Chapter 13 Bankruptcy repayment plan by doing a cash-out refinance and paying off the bankruptcy early. HUD and VA loans allow for borrowers to qualify for FHA and VA loans while in an active Chapter 13 Bankruptcy with trustee approval and a manual underwriting. Here is a link to a new blog posted today.

https://gcaforums.com/buy-out-chapter-13-bankruptcy/

What are HUD Chapter 13 Bankruptcy dismissal guidelines to qualify for an FHA LOAN. Is there any waiting period requirements.

Inflation has been skyrocketing like never before in history. Home prices are at historic highs. Mortgage rates are almost at 8.0% with no signs of increasing. Rents are increasing every year but wages has not gone up. If anything, wages are decreasing and by no means keeping up with Inflation. What’s in the horizon? I feel bankruptcy rates will increase like never before.

There is many conflicting answers as to when you can apply for a mortgage after Chapter 11 Bankruptcy mortgage. Per HUD guidelines, there is a two year waiting period after a Chapter 11 Bankruptcy discharge date to be eligible for an FHA loan.. Chapter 11 Bankruptcy repayment plan should be the same type of guidelines per HUD as Chapter 13 Bankruptcy. More on this in the coming days. Will be contacting HUD to get confirmation.

Found that HUD does not guarantee FHA LOANS DURING CHAPTER 11 BANKRUPTCY REPAYMENT PLAN. WILL GET THIS FACT CHECKED.

Can I buy a house during Chapter 13 Bankruptcy repayment plan?

What are Fannie Mae Chapter 13 Bankruptcy dismissal guidelines on conventional loans.

Is there a waiting period after Chapter 13 Bankruptcy dismissal on VA loans.