FANNIE MAE ANNOUNCES SHORTER WAITING PERIODS

We are bankruptcy attorneys  we have offices located in Eastgate, Ohio and Middletown, Ohio.  We specialize in Chapter 7 and Chapter 13 bankruptcy filings.

GOOD NEWS!!

The most important question for people who file bankruptcy because they can no longer make their house payments is how long do I have to wait before I can purchase another home.  Since the housing crisis there have been two waiting periods:  two years after the bankruptcy but three years after the foreclosure. The three years after foreclosure was a real stumbling block for a lot of debtors.  In many circumstances the home did not foreclose until well after the discharge (this is one of the reasons we suggest to our clients to stay in their home and live rent free as long as possible), in some cases making the waiting period to purchase a new home as long as three to five years!

On July 29, 2014 Fannie Mae announced a new policy.  From now on the two year after discharge rule will only apply.  You do not have to wait the full three years after foreclosure to purchase a new home.  This is good news for hundreds of thousands of people nationally and good for our country too because more houses will be built and sold!

DIRECTLY FROM FANNIE MAE

Below is a cut directly from the Fannie Mae newsletter.

Waiting Period for Mortgage Debt Discharged through Bankruptcy

The Selling Guide has been updated to indicate that if a mortgage debt has been discharged through bankruptcy, even if a foreclosure action is subsequently completed to reclaim the property in satisfaction of the debt, the borrower is held to the bankruptcy waiting periods and not the foreclosure waiting period. Lenders must obtain documentation to verify that the mortgage debt in question was in fact discharged as part of the bankruptcy.

FannieMae

This is good news for everybody!

If you are struggling with your mortgage for any reason, job loss, increase in real estate taxes or some other reason, there is no real reason to fret if you will have to give up your home.  In two years time you will be able to purchase a new home and really get the fresh start people are looking for through a bankruptcy filing.

MORE INFORMATION

If you are struggling with your mortgage or any other type of debt we may be able to help you to get a fresh financial start.  Check out our website at www.keeganandrade.com or at www.middletown-bankruptcy.com

FREE CONSULTATION

We know you are struggling, that is why we offer you a free consultation at our Eastgate, Ohio  or Middletown, Ohio location.  Call today for your free consultation, we offer fair fees and monthly payment plans.

Bankruptcy Meeting of Creditors: No Need to Worry

We are bankruptcy attorneys we have offices located in Eastgate Ohio and Middletown, Ohio.  We specialize in Chapter 7 and Chapter 13 Bankruptcy filings.

DO YOU HAVE TO GO TO COURT FOR BANKRUPTCY?

This is one of the most commonly asked questions that we receive in our office, will I have to go to court and appear before a Judge?  In most bankruptcy cases the answer is yes, but not in front of a Judge before a trustee at a meeting called the "meeting of creditors".  The primary purpose of this meeting is to give the bankruptcy trustee the opportunity to review your petition and have you confirm under oath the information you provided in your schedules.

Knowing what to expect at the hearing can make the process go smoother and help to ease that feeling of anxiety.

WHO WILL ATTEND THE MEETING OF CREDITORS?

Usually, the only people attending the meeting of creditors are the trustee, your attorney and you.  Many people are worried that their creditors will come to this hearing and harass them.  Although your creditors will get notice of your meeting of creditors they usually do not attend.  If they happen to appear your attorney will be with you to make sure they do not do anything inappropriate.

THE SETTING

For Chapter 7 and Chapter 13 debtors living in Hamilton County, Clermont County, Brown County, Highland County and Butler County, Ohio their meeting of creditors will be held in downtown Cincinnati. For Warren County, Clinton County and other northern Ohio counties will have their meeting of creditors in Dayton. The setting is an open format where you will set with your attorney at a table across from the trustee.  Other debtors may be in the room and able to hear your testimony, but do not worry about that, they are all going through the same as you and will not judge.

This meeting is less formal than going in front of a Judge.  You will want to dress nice, but a suit and tie are not required.

HOW THE MEETING OF CREDITORS WORKS

At the beginning of the meeting the trustee will swear or affirm you in under oath.  He will then ask to see your drivers licence and social security card, you should have these out and ready before the meeting begins.  He will then ask you a series of questions related to the information that you provided in your petition, schedules and other documentation.  It is very important to understand that the trustee will never try to trick you.  Please keep in mind that just because they ask a certain questions does not mean anything is wrong.  He will ask you questions to verify what you have on the schedules is accurate.  Of course if anything in your circumstances had changed you would need to let the trustee know of this.  Remember, your attorney will be with you.

AFTER THE MEETING OF CREDITORS

After your meeting of creditors you will need to complete a second credit counseling session.  Once that is complete you are basically done with what you need to do and will at that point just be waiting for your discharge.  Your discharge is typically issued approximately 120 days after your case is filed.  You are then debt free and able to start your fresh financial life.

MORE INFORMATION

For more information check out our website at www.keeganandrade.com or www.middletown-bankruptcy.com

FREE CONSULTATION

Contact your Eastgate, Ohio or Middleltown, Ohio bankruptcy attorney today for your free consultation today.  We offer a free consultation, fair fees and monthly payment plans.

Life After Bankruptcy

We are bankruptcy attorneys we have offices located in Eastgate, Ohio and Middletown, Ohio.  We specialize in Chapter 7 and Chapter 13 Bankruptcy filings.

LIFE AFTER DISCHARGE

Congratulations, you have received your bankruptcy discharge at the end of your Chapter 13 case.  You are anxious to get a fresh start.  What should you do next?  Here are a few steps you should take to rebuild your credit, ensure financial future and make sure you get the new debt-free status.

KEEP COPIES OF YOUR BANKRUPTCY PAPERWORK

It is important to keep copies of your petition, schedules, and order of discharge for your records.  You can retrieve these copies later, if you lose them, however, it may cost you and can be a bit of a hassle.

Why keep your paperwork?  Although it does not happen every day, creditors have been known to collect on a debt that has been discharged through bankruptcy.  You will need this paperwork if any creditor harasses you for payment after discharge.  Creditors can get into major trouble for harassing you once your case is discharged.  As we will discuss later, you may need your paperwork to correct any issues with your credit report.

YOUR CREDIT REPORT

Once you receive your discharge you should take the time to send a copy of your schedules and discharge to the reporting agencies.  Once you have taken that step wait a few months (as it does take some time for the credit reporting agencies to update your report) and then check your credit report.  You may pull your free credit report at www.annualcreditreport.com.  All debts included in your bankruptcy should read "discharged in bankruptcy" or something similar.

MAKE PAYMENT ARRANGEMENTS

If you have any non-dischargeable debts, such as certain taxes, you will need to contact the creditor to make arrangements to pay them.  You will have to directly contact the IRS, state revenue department (e.g., Ohio Department of Taxation), or the local taxing authority to make payment arrangements.

If you had student loans which survive your bankruptcy you must contact your financial provider to make payment arrangements on the your remaining student loan debt.

REBUILD YOUR CREDIT

To rebuild your credit, you may wish to obtain a secured credit card.  A secured credit card has your money deposited into a bank account as collateral for the credit card.  Please note that a secured credit card is not the same as a pre-paid credit card, as a pre-paid credit card does not report on your credit.  Shop around for these and pay attention as some will charge your interest.  You also want to make sure that they will be reporting to the credit reporting agencies.  We do not recommend getting multiple cards.

Make any debt payments that you kept after the bankruptcy such as your home or vehicle on time.  You will rebuild your credit before you know it.

MORE INFORMATION

For more information check out our website at www.keeganandrade.com or www.middletown-bankruptcy.com

Call our Eastgate, Ohio or Middletown, Ohio Bankruptcy Attorneys today for your free consultation.

BANKRUPTCY INCOME LEVELS

We are bankruptcy attorneys we have offices located in Eastgate, Ohio and Middletown, Ohio.  We specialize in Chapter 7 and Chapter 13 bankruptcy filings.

Many people assume that if their income is relatively high, they cannot file for Chapter 7 bankruptcy.  Usually this assumption is incorrect.  It is not by any means unusual for a high-income debtor to file under Chapter 7.  In reality, high-income Chapter 7 bankruptcies are filed everyday.

What constitutes as high income is a matter of perspective and depends on many factors, such as where you live, your living expenses, the size of your family, etc.  (A salary of $80,000.00 for a family in rural Ohio goes a lot further than the same earnings in the city center of Columbus or Cincinnati).  With that being said, in the language of bankruptcy attorneys a "high-income debtor" is a debtor with earnings above the state median income for the debtor's family size.

The Ohio state median income per family size (determined by census figures) as of the date of this post is as follows

Individual	Family of 2	Family of 3	Family of 4
43,688	53,850	61,568	77,500

*For each additional family member over four, add $8,100.

WHY IS THE STATE MEDIAN IMPORTANT?

Whether your income is above or below the Ohio state median income determines if you will be able to discharge all or most of your debts in Chapter 7, or will you be required to pay back at least a portion of your debt under Chapter 13.  If your average gross earning for the six months before filing for bankruptcy is at or below the state median for your family size, you may file under Chapter 7 (assuming that you meet the other requirements).  Simple!

On the other hand, if your average gross earnings for the six months before filing is over the median, you will have to takes a "means test" to determine if you qualify for Chapter 7.  This means test considers your income minus certain allowable expenses.  Frequently the results allow a debtor with substantial earnings but high expenses to file under Chapter 7.

ARE YOU REALLY A HIGH-INCOME DEBTOR?

Before jumping to meet the means test, debtors need to determine if they are actually high-income debtors for the purposes of the test.  We often have clients with seemingly high earnings who are surprised that they fall below the state median.  Many of these clients have not considered the size of their families.  However, one of the most important factors in determining whether or not you are a high-income debtor is family size.  For example, a family of four making $85,000 would have earnings well above the state median of $77,500 for their family size.  But what if that family making $85,000 includes six members?  Because the median state income medical for a family of six is $93,700, the debtors do not need to take the means test.

Even if the debtor is above the state median, it is often by much less than the debtor presumed.  The closer your overall earnings are to the state median, the easier it is to pass the means test.

WHAT TYPE OF INCOME?

If you appear to be over the median, you may still be able to avoid the means test.  Depending on what type of earnings you have.  Not all sources of money count as income for calculating gross earnings.  For example, under the Bankruptcy Code certain income, primarily social security, is excluded from your gross income for the purposes of the means test.  This exclusion will often bring a debtor's gross earnings below the state median, thus avoiding the means test.  In addition, because the bankruptcy code focuses on "regular income", some irregular earnings may not count as "gross income".

CAN I PASS THE TEST?

Finally, even if you must take the means test, it is still quite possible that you will qualify for Chapter 7.  Very often, high-income debtors have high allowable expenses, including mortgage payments, vehicle payments, etc., that will offset their earnings.  Although the means test is complex and must be handled carefully, it is not at all unusual for high-income debtors to pass the test.  However, failing to list income of any kind can lead to unpleasant consequences.  Attention to detail is the name of the game?

WHAT NOW?

We have spent most of this blog discussing the initial qualification for Chapter 7.  However, it is important to note that even if you pass or avoid the means test, you do not automatically get to file under Chapter 7.  You must meet all other requirements, including a showing that after expenses, you have no significant disposable income to pay your creditors.  In addition, there may be a reason for choosing Chapter 13, such as saving a house from foreclosure or a car from repossession.  In some cases, a non-bankruptcy solution such as debt negotiation may be available.

MORE INFORMATION

For more information check out our website at www.keeganandrade.com or www.middletown-bankruptcy.com

FREE CONSULTATION

Contact our Eastgate, Ohio bankruptcy attorney today for your free consultation to see if you can qualify for a Chapter 7 bankruptcy.