doddsbankruptcylaw.com

Chapter 13 Plan Modifications in Surprise, AZ

Dan Dodds — Fri, 15 Jun 2012 05:00:16 +0000

When you file a Chapter 13 bankruptcy, you will be required to file a repayment plan. For more information on Chapter 13 plans, please read my blog titled“Chapter 13….What is the Plan?” The plan sets forth how a debtor intends to repay his creditors over a term of 3 – 5 years, while also keeping as many assets as possible. But what happens if your circumstances change during the course of your bankruptcy case? The Bankruptcy Code provides two basic options:

Amending your plan. A debtor can request permission from the court to amend the Chapter 13 plan. The burden of proof is on the debtor to demonstrate that a modification of the plan is necessary. Creditors have the opportunity to challenge the modification, so you will need to be prepared to handle any objections. In other words, it is necessary that you have documentation that demonstrates a change in your finances and that modifying the plan is necessary. Some of the most common ways to modify a Chapter 13 plan are to alter the amount of the monthly payment or extend the term of the plan.

Conversion of your case. A debtor who is struggling in a Chapter 13 case can convert his case to a Chapter 7. For more details regarding conversion of a case, please read my blog titled “Converting a Chapter 13 to a Chapter 7 Case.” In order to convert a case, the debtor must be eligible to file a Chapter 7, which means that he must be able to pass the “means test.” For more information on the means test, please read my blog titled “Bankruptcy and the Means Test.”

Contact Dan Dodds if you are interested in filing a bankruptcy case or you need assistance with a struggling Chapter 13 case.

If you live in the area of Surprise, Arizona, contact The Dodds Law Firm, PLC, at 623-209-8923. The Dodds Law Firm, PLC, serves clients primarily in the areas of Fair Debt Collection Practices Act violations, Chapter 7 and 13 bankruptcies, and issues of Unfair or Deceptive Business Practices. Mr. Dodds and his staff know how to listen carefully, and how to explain the law and procedures involved in a legal matter, as well as your rights and options, so that you can make informed choices.

Short Sale Myths in Surprise, Arizona

Dan Dodds — Thu, 14 Jun 2012 05:00:38 +0000

Short sales are a “hot topic” in today’s economy, but there are a lot of myths surrounding the topic as well. This blog will focus on a few of the most common misunderstandings surrounding the short sale process. However, if you are considering a short sale, your best option is to seek the assistance of a qualified attorney like Dan Dodds.

Myth: You have to be late on your payments to get approved.

There is some truth to this one because a minority of lenders will require the homeowner to be late on their payments before they are eligible for a short sale. Generally, however, most lenders will allow the homeowner to be current on their payments and obtain approval for a short sale of their home. The reality, though, is that most homeowners do not take this route because they feel like they are throwing their money away.

Myth: Letting my lender foreclose on my house is easier and is no more damaging to me than in a short sale.

A foreclosure is much more damaging to a homeowner than a short sale in most states. In a foreclosure, the tax consequences and damage to your credit score are much worse with a foreclosure. The short sale tool generally allows the homeowner a quicker financial recovery, so do not allow a foreclosure on your home without attempting a short sale first.

Myth: The short sales process is getting easier and quicker because the banks are getting more experienced in handling them.

Unfortunately, the short sale process is still difficult and time-consuming. The changes in regulations have made it harder on the banks (which ultimately make it harder on the homeowners). Obviously, it is important to eliminate the fraudulent or discriminatory practices that the banks were using, but it is also important that short sales remain more cost-effective for the lenders than foreclosures.

The short sale process can be manageable if you know how to work the system. Thus, it is important that you consider hiring an experienced short sale attorney to assist you.

If you would like to discuss your problems with debt collectors, call The Dodds Law Firm, PLC, at 623-209-8923. The Dodds Law Firm, PLC, serves clients primarily in the areas of Fair Debt Collection Practices Act violations, Chapter 7 and 13 bankruptcies, and issues of Unfair or Deceptive Business Practices. Our firm is committed to protecting the rights and benefits afforded to all individuals under state and federal law, as well as the U.S. Constitution.

Bankruptcy in Arizona: Can somebody else pay?

Dan Dodds — Wed, 13 Jun 2012 05:00:19 +0000

If you are considering filing for bankruptcy protection, you may be wondering where your will find the money to hire an attorney and pay your filing fees. It is common for debtors to have family or friends help pay for their filing. Before taking this step, however, you should consult with an experienced bankruptcy attorney like Dan Dodds to make sure you don’t run into any unexpected problems.

If you are filing a Chapter 7 case, you must pass the “means test.” For more information on the means test, read my blog titled “Bankruptcy and the Means Test.” The test is a process whereby the court considers ALL of your income from the prior six months to determine if you are eligible for a Chapter 7 filing. Thus, any money given to you to pay for your filing will be considered as income if it was given within the six months before your filing date. Thus, depending on your level of income and the amount of money given to you for your bankruptcy filing, the additional contribution could increase our annualized income for purposes of the means test. In other words, if the monetary gift raises your income above the allowable limits, you may be ineligible to file a Chapter 7 case.

If you are filing a Chapter 13 case, the court will consider ALL income received by you in the six months prior to your filing date to determine the plan commitment period. Again, if you were given money to pay for your bankruptcy within this 6 month period, the court will consider it as income. Thus, it could mean that the court may require that your Chapter 13 plan last for 4-5 years rather than only 3 years.

It is important that any financial assistance you receive to pay your legal fee is disclosed to the court. Be sure to discuss this matter with your attorney.

If you would like a down-to-earth approach and a lawyer who will listen carefully to all your questions and concern, call The Dodds Law Firm, PLC at 623-209-8923. Dan Dodds serves clients primarily in the areas of Chapter 7 and Chapter 13 bankruptcies, real estate issues, violations of the Fair Debt Collection Practices Act, and issues of Unfair or Deceptive Business Practices. Mr. Dodds and his staff know how to listen carefully, and how to explain the law and procedures involved in a legal matter, as well as your rights and options, so that you can make informed choices. If you live in the area of Surprise, Arizona, call The Dodds Law Firm, PLC.

Short Sales and the Home Foreclosure Affordable Alternatives Program

Dan Dodds — Tue, 12 Jun 2012 05:00:24 +0000

The Home Foreclosure Affordable Alternatives (HAFA) program was created to streamline the short sale approval process. If you are unable to continue paying your mortgage and you want to avoid a foreclosure, the HAFA program may be helpful to you. As with any government program, however, there are qualification requirements such as:

You live in the home or have lived there within the last 12 months.
You have a documented financial hardship.
You have not purchased a new house within the last 12 months.
Your first mortgage is less than $729,750.
You obtained your mortgage on or before January 1, 2009.
You must not have been convicted within the last 10 years of felony larceny, theft, fraud, forgery, money laundering or tax evasion in connection with a mortgage or real estate transaction.

The advantages of a HAFA short sale outweigh those that exist in a traditional short sale. The HAFA website lists the following advantages:

You can get free advice from HUD-approved housing counselors and licensed real estate professionals.
Unlike conventional short sales, a HAFA short sale completely releases you from your mortgage debt after selling the property. This means you will no longer be responsible for the amount that falls “short” of the amount you still owe. The deficiency is guaranteed to be waived by the servicer.
In a HAFA short sale, your mortgage company works with you to determine an acceptable sale price.
HAFA has a less negative effect on your credit score than foreclosure or conventional short sales.
When you close, HAFA provides $3,000 in relocation assistance.

A short sale may the solution to your problems if you are struggling to pay your mortgage. If you believe you are eligible for a HAFA short sale, it may be wise to seek the assistance of a qualified attorney like Dan Dodds.

Bankruptcy Advice on the Internet….is it helpful or harmful?

Dan Dodds — Mon, 11 Jun 2012 05:00:53 +0000

If you are considering filing a bankruptcy case, you are likely reading about the process online. While it is helpful to learn a little about what is involved in filing a case, it is important to understand that the internet cannot replace the knowledge and experience of a bankruptcy attorney like Dan Dodds.

There are many online discussions of the means test (see, Bankruptcy and the Means Test), what happens to an inheritance in bankruptcy (Bankruptcy and Inheritances), or even exemptions (Chapter 7 Bankruptcy – It Really is a “Fresh Start”), but discussions such as these are general guidance for all readers. Each individual is different and so are the various factors involved in their bankruptcy case.

When you meet with a bankruptcy attorney, it is common for them to have you fill out a lengthy questionnaire. The questions are aimed at discovering not only your basic financial situation, but also any areas where you may run into trouble during your bankruptcy case. A blog or discussion board online does not cover all of these various circumstances. Thus, you set yourself up for a bombshell to go off during your case if you rely on advice given online because that advice was based on only minimal facts. Additionally, many advice-givers on the internet are not even attorneys, but people who just think they know it all!

If you want to educate yourself before your bankruptcy filing, investigate the websites before you read them. If it is an attorney’s website, look to see if that attorney practices in the area of bankruptcy and his/her experience. Avoid open forums where you post an issue and anyone can respond….this can lead to you getting bad or incorrect advice.

Most bankruptcy attorneys offer free consultations. If you are considering filing a case, it is worth your time to consult with a lawyer who can assess your individual circumstances and give you advice you know you can rely upon.

Bankruptcy in Surprise, AZ: Are you being emotional or rational?

Dan Dodds — Fri, 08 Jun 2012 05:00:17 +0000

Many individuals who are struggling financially know that they should probably file for bankruptcy protection, but they are letting their emotions hold them back. The thought of filing a bankruptcy case is overwhelming to many people. Unfortunately, instead of focusing on the logic of obtaining a “fresh start” financially, many consumers get caught up in the emotions of it all.

Fear is a common emotion associated with filing bankruptcy. The fear of the unknown is always intimidating. It is common for debtors to fear that they will be labeled as a financial failure and that they will not be able to survive without credit. These fears are based on a general misunderstanding about bankruptcy. Most people will never know you filed a case and once your case is over, you will be able to obtain credit again. For more information on both of these topics, please read my blogs titled “Your Bankruptcy…..who will find out?” and “Credit After a Bankruptcy Filing.”

Pride is another emotion that prevent people from seeking bankruptcy protection. Debtors often say that they are not “the type” to file bankruptcy. What most individuals fail to realize is that “the type” that files a care are typically hard-working, honest citizens who have encountered severe medical issue, gotten a divorce, lost a job, or experienced some other difficulty that prevents them from being able to pay their bills.

Finally, debtors typically must get over being stubborn before they file their case. There is often a tendency to want to keep trying to find a way out of their financial situation. Bankruptcy is the way out! Being stubborn can often make your situation even worse.

Once a person sets their emotions aside, it is often clear to them that bankruptcy makes sense. Filing a case is a difficult decision, but it can also change your life. Getting out from under the burden of debt is worth setting aside your fear, pride, and stubbornness.

If you are considering filing a bankruptcy case, consult with attorney Dan Dodds to discuss whether it is the best option for you.

Collection Lawsuits in Arizona – Part 3

Dan Dodds — Thu, 07 Jun 2012 05:00:05 +0000

If you have a creditor that has filed a collection lawsuit against you, be sure to read my blogs titled “Collection Lawsuits in Arizona – Part 1″ and “Collection Lawsuits in Arizona – Part 2.” This is the final blog on this topic and it will focus on the option of resolving your collection dispute with a combination of settlement and litigation.

It is common for creditors, especially debt-buyers, to file a petition without attaching any of the evidentiary documents. This makes it difficult for you to determine the strengths or weaknesses of their case. At some point, all parties involved in the lawsuit will be required to exchange the documents they have that support their position in the case.

Defendants (the borrowers) often use the strategy of filing an Answer in the lawsuit and then wait to see what documents the debt-buyer has to support their allegations. If the evidence is sufficient to support the creditor’s position, your best option may be to pursue settlement. However, if the creditor has insufficient documentation to support their case, litigating the issue may be your best option.

In sum, it is important for you to take your time and evaluate all of your options. Contact an experienced attorney like Dan Dodds as soon as you are served with the lawsuit. Consulting with a lawyer to help you strategize, negotiate, or even litigate, may be the difference between success and failure!

If you would like to discuss your problems with debt collectors, call The Dodds Law Firm, PLC, at 623-209-8923. The Dodds Law Firm, PLC, serves clients primarily in the areas of Fair Debt Collection Practices Act violations, Chapter 7 and 13 bankruptcies, and issues of Unfair or Deceptive Business Practices. Our firm is committed to protecting the rights and benefits afforded to all individuals under state and federal law, as well as the U.S. Constitution.

Collection Lawsuits in Arizona – Part 2

Dan Dodds — Wed, 06 Jun 2012 05:00:53 +0000

If you have been sued by a creditor, you are likely trying to decide what your next move should be. Hopefully you have read my first blog on this topic titled “Collection Lawsuits in Arizona – Part 1.” That blog discusses the option of trying to settle with your creditor. This article will discuss the option of taking your collection lawsuit to court.

Litigation

Once you are served with the lawsuit, you have 20 days to file your response with the court. The lender or debt-buyer is the “plaintiff” and you are the “defendant.” It is the plaintiff’s burden to prove that they own the debt and prove how much is owed. Recently, it has been surprising how many debt-buyers are unable to meet this burden. In fact, many of the companies that handle a huge volume of accounts cannot provide sufficient evidence that they own the account they are suing you on! Unfortunately for these types of creditors, the Rules of Evidence apply to both small and huge companies.

While you may be successful in defending your lawsuit, it is important that you understand there are risks. If the court decides against you, the creditor will likely be awarded the full amount owed plus attorney’s fees and costs (depending on the applicable state law and the terms of the contract). Thus, it is important to consider this possibility when evaluating whether to take the case to trial.

If you are considering going to court over a collection dispute, it is important that you retain an experienced attorney to represent you.

Collection Lawsuits in Arizona – Part 1

Dan Dodds — Tue, 05 Jun 2012 05:00:33 +0000

If you have been sued by a creditor for the collection of a debt, you may be feeling overwhelmed, scared, and confused. Before jumping to any quick conclusions, you should take time to consider your various options. In Arizona, you have 20 days from the date you are served with the lawsuit before you have to file a response with the court. So, what options are available to you? The next three blogs will focus on your options.

Settlement

Going to court should always be your last choice because it is time-consuming and expensive. Thus, to get a collection lawsuit to disappear as quickly as possible, you should consider trying to settle the matter. Settlements can occur anytime, even after the lawsuit had been filed. However, the sooner you settle, the more negotiation power you may have. Once a creditor has invested money into a lawsuit, the less likely they are to cut you a deal.

Settlement is merely the process of offering to pay the lender less than what they are seeking in their lawsuit, or to pay the full amount over a period of time in smaller payments. Obviously, in order to make a settlement work, you must have money to offer the creditor. Also, the quicker you can pay the lender, the more likely they are to agree to settle with you.

While every creditor is different, and no two settlements are the same, it is common for debt-buyers to settle for approximately 65% of the total amount owed. This is because the debt-buyer generally purchases the debt by paying 2-3 cents on the dollar. Of course, you will have to probably work hard for the settlement, but it will be worth the effort to get the matter resolved.

Be sure to consult with a lawyer to help you negotiate your settlement. Having an attorney assist you can make a huge difference in successfully resolving the debt you owe.

Bankruptcy in Arizona: Are your firearms an asset of the estate?

Dan Dodds — Mon, 04 Jun 2012 05:00:16 +0000

Firearms can be an investment, a collector’s item, a tool for your job or hobby, or a method of self protection. They typically hold their value and do not depreciate significantly. When you file a bankruptcy case, it is important to understand how they will be treated in your filing.

Guns are an asset of your bankruptcy estate. You must make full disclosure to the bankruptcy court when you file your case. State and federal law provide numerous exemptions for a debtor to claim which will protect your firearm from the bankruptcy process and allow you to keep it. Of course, every state law is different if the exemptions allowed, but below are the federal exemptions:

11 U.S.C. § 522(d)(5): $1,150.00, which is the federal catch-all exemption and may be applied to any personal property owned by the debtor;

11 U.S.C. § 522(d)(5): Up to $10,825.00 of unused home equity not already exempted under 11 U.S.C. § 522(d)(1);

11 U.S.C. § 522(d)(6): $2,175.00 for tools and equipment used in business. For this exemption to be applicable to the debtor, the debtor must establish that the firearms are necessary for the debtor’s trade, employment or business.

Many debtors do not think to list their firearms as an asset, but it is important that you disclose them to the court and claim the proper exemptions. Thus, when you meet with your bankruptcy attorney, be sure to advise him/her that you own firearms.

If you are considering filing a bankruptcy case and you are curious how your firearms will be treated in your filing, be sure to contact Dan Dodds to learn more.