I’ve encountered several instances of payors with 50-200k of child support accruing interest at a penalty rate who it is undisputed that they paid the money. After attending the National Association of Bankruptcy Lawyers I believe it may be possible to find a solution in the bankruptcy code.

Firstly, if caught early enough I think you could attack these payments as a preferential transfer recover them and then pay them.

Secondly, I think it would be proper to classify these debts as a penalty and not child support debts. This would be a more difficult. There is some support in case law though I haven’t investigated extensively and it hasn’t been specifically litigated. Judge Speer of the Northern District of Ohio has stated that state classifications are “not necessarily determinative” in In Re. Gruber, (10-3028, 2010).

While I try to avoid having my clients be test cases as it’s not a great trip for them I think there are probably some people out there who really really need to see a bankruptcy lawyer who’d be willing to litigate this complicated issue.

There are a lot of different strategies for trying to solve your own foreclosure crisis.

One of the more aggressive and risky strategies is foreclosure defense.

Essentially, this is an attempt to legally defend yourself from the foreclosure proceedings.

While this has been known to benefit the homeowner in some cases, it could backfire.

The main premise upon which foreclosure defense works is in exposing the weak nature of the corporate structure.

Banks are required to follow very narrow regulatory authority.

This is carried out by a variety of employees, all of which might make mistakes.

If they have made a mistake anywhere in the process, this could be presented to create a judgment in your defense.

It happens a lot more often than you might think.

However, when you go face-to-face with the law about a mortgage you have not been paying, you take some serious risk.

The nature of the corporate structure of many banks, however, exposes them to the possibility of making errors.

A sharp attorney might catch one.

If you are having a difficult time paying your mortgage, foreclosure defense will buy you some time.

This is not something to try for that reason alone.

If the judgment is not in your favor, then you will be in more trouble.

The Truth in Lending Act contains regulations regarding the report and management of the terms of consumer loans.

Paperwork mismanagement by the lender could violate this regulation.

This is an example of the type of challenge that an attorney might bring during a foreclosure defense.

Foreclosure defense is not going to work for most people.

It is something to consider if a lawyer feels confident in your case.

The legal process keeps lenders honest.

However, there are a lot of different options that might be cheaper and more effective.

Careful review of your specific circumstances is necessary to find the best solution.

In recent memory, the economy was as good as it could possibly be.

It seemed like there was enough money for anything.

Suddenly, however, the bottom fell out.

Interest rates adjusted upwards, and lots of people lost their homes.

Consumer spending decreased, and many lost their jobs as well.

In order to prevent a foreclosure crisis from happening again, it is important that everyone understand how we got into this mess in the first place.

Artificially low interest rates made it seem like homes went up in value year after year at an amazing speed.

Many people started “flipping houses.

This is where a mortgage is taken out on a home, which is then sold a year or two later for a profit.

Essentially, this is speculative buying on credit.

It is not particularly different than taking out a credit line with which to buy stocks.

This speculative buyer can not be blamed for the choice that was made.

If you discovered that buying and selling homes on credit would earn a profit, it would be foolish to not participate.

This was mostly done by middle class people looking to protect their wealth from inflation.

The problem is that artificially low interest rates set by pure guess will have the unintended consequence of causing price distortions in the market.

Price distortion encourages malinvestment.

The speculative buying demand caused home builders to build too many homes.

Once this was realized, the bubble burst.

When interest rates were raised again, adjustable rate mortgages became too expensive for many homeowners.

This is where the foreclosure crisis exploded.

Many banks failed, and the amount of money in the economy suddenly deflated.

This price deflation caused companies to have to fire labor that was suddenly too expensive.

Ironically, this foreclosure crisis is so huge that families who can not afford their homes are able to negotiate new deals with banks.

If you have been affected by this crisis, now is the right time to reach out to someone who knows the types of arrangements that banks are looking at to stave off this crisis.Fortunately, the foreclosure crisis hasn’t hammered Memphis as hard as other areas.

For those who are facing foreclosure, the effects of the busted housing bubble have created a real financial crisis.

While the government has enacted a foreclosure plan aimed at helping struggling homeowners to pay their mortgages, a real solution must come from those who are facing the crisis and in Memphis bankruptcy this plays a big part.

Burdensome loans that risk default could put both banks and working families in peril.

Since both of these parties have a direct interest in solving this problem, it is imperative that they work together in crafting their own foreclosure plan to address this crisis.

Banks have a vested interest in seeing you recover as much of the loan as you can.

Every foreclosure might signal the last day of business for a bank.

For this reason, homeowners must seek a solution that works on their behalf.

If you just allow those letters to pile up without response, you will be facing an inevitable foreclosure.

However, there are lots of ways to coordinate with your lender to set up terms that would allow you to avoid foreclosure.

This is a true foreclosure plan for your specific situation.

When the general economy suffers due to credit defaults, it rarely feels like there should be blame on the parties in the contract.

However, feelings will not bring this problem to a solution.

A government foreclosure plan alone will not save the economy.

It is necessary that homeowners and banks do what they can to come to an agreement that will produce a solution to the general problem.

It is much easier to carry the load as a group, than to expect a third party to solve the problem for both sides.

5 Signs You are Ready to File for Bankruptcy

Making the decision to file for bankruptcy is often both mentally and emotionally draining. While some individuals find themselves faced with insurmountable debts because poor financial management, others are faced with no choice due to unavoidable circumstances such as an accident, serious illness, or loss of employment. The good news is that filing for bankruptcy is more common than ever before. While it may at first seem embarrassing to admit you need to file, actually doing so no longer carries the negative social stigma it once did. So how do you know it’s time to take the plunge?

You Transfer Balances from Card to Card

Credit card companies love making low or zero interest balance transferring options. The problem is that if you have enough open credit to move your balance you also have room to create more debt. If you don’t have the cash to make a minimum payment (or more) on your credit card, moving the balance from place to place won’t make it go away.

You Only Make Minimum Payments

While making the minimum payment on your credit card may feel productive, it really isn’t. In many cases, those with high interest rates end up with compounded monthly interest charges that are just as much or more than the minimum payment. You think you’re making progress but your balance stays stagnant or slowly grows higher.

Your Accounts are in Collections

Your debts are overwhelming and no matter how hard you try you simply can’t keep up with all of the payments you owe. Seek the advice of a bankruptcy attorney right away. Harassing phone calls from collection agencies won’t make you feel better and the sooner you take action the easier it will be to avoid progressing to the point of a lawsuit or wage garnishment.

You Use Credit Cards in Place of Cash

Not having enough cash to pay for everyday expenses can be incredibly nerve wrecking. Using a credit card to pay for everyday expenses like groceries may seem like a solution but it’s certainly only good for the short term. When the credit card statement comes in you’ll find yourself in the exact same situation – unable to pay.

You’re Thinking about a 2nd Mortgage

While a second mortgage may be good for making large purchases or building an addition, it really isn’t the solution to financial debt. Taking out a 2nd mortgage may temporarily relieve you of some of your financial obligations but it will create a payment of its own. Eventually you’ll be struggling to make payments again – only this time your house will be on the line.

Most bankruptcy attorneys offer free or low-cost consultations and can quickly and easily walk you through the entire bankruptcy process. Contact a lawyer right away if you find yourself in one or more of the above situations. The sooner you act the easier it will be to file.

‘Chapter 7 Bankruptcy vs. Chapter 13 Bankruptcy

Once you decide to file for bankruptcy you’ll need to determine which type of filing is best for you. While there are several different types of bankruptcy filings to choose from, the most common personal bankruptcy types are chapter 7 and chapter 13. The type of filing you choose will depend on whether or not you are able to pay any of your debts or if you need to receive a complete and total discharge.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is for individuals who simply cannot make payments towards their debts. Once you finish with the paperwork, counseling courses, and court appearances you will be given what is referred to as a clean, debt-free financial slate.

There are certain criteria you must meet in order to be allowed to file for chapter 7 bankruptcy. The first thing your bankruptcy attorney will do is complete a chapter 7 means test. The test considers your income and debts and determines whether you make enough money to pay off your debts in any way, shape, or form. If your adjusted income falls below the means level for your state you will be allowed to file for Chapter 7 bankruptcy.

Your creditors will be notified that you are filling for bankruptcy and will not be allowed to attempt to collect money from you again. While the courts may seize some of your property to pay off parts of your debt, those with little income or tangible property are not usually affected in this manner.

Chapter 13 Bankruptcy

Individuals who are unable to file for chapter 7 bankruptcy often opt for chapter 13. Under a chapter 13 filing you will be required to repay all or a portion of your debts. The courts will work with you and your court-appointed trustee to determine what type of payment plan you can reasonably agree to.

They will usually require you to make set monthly payment over a specified period of time, with a maximum of 5 years. During this time you are allowed to keep your property and the balance of your debt is discharged after you complete the agreed-upon payment plans.

While your creditors have the legal right to file an objection to your bankruptcy case, most will not do so unless they feel you fraudulently created your debt with the intent of filing for bankruptcy to rid yourself of it later on. In terms of chapter 13 bankruptcy, your creditors will have to accept whatever payment plan mandated by the court.

Chapter 7 and chapter 13 bankruptcy filings both require a lot of time and paperwork but the end result is almost always worth the effort. Contact a bankruptcy attorney for assistance with the paperwork and filing procedures and you’ll be on your way to financial freedom in no time flat.

As getting credit is essential for rebuilding your credit score this might be the only option available to get started again.

By getting the assistance of a co-signer you will get the benefit of that person’s better credit record and that will help you to get a loan and one where you will possibly be able to get a reasonable interest rate.

There is a danger for both people with such an arrangement and even though your credit score might be low you don’t want to add more bad information to your records if your co-signer fails to make payments.

Both you and the co-signer are responsible for the payments and any failure to make the payments required for the loan will result in damage being done to both yours and your co-signers credit scores.

On the other hand you can stand to make some gains with an arrangement where your co-signer has a good credit score and all the payments are made on time. This can help to boost your own credit score and help you to be able to arrange your own finance the next time you apply for a loan.

This is a good way to get started back on the road to recovery when there seems to be no other alternatives.

This can also show lenders that someone else has enough trust in your ability to make the repayments that they have risked their own credit score to help you out and some lenders will see that as a good sign to encourage them to lend you money once they have seen the co-signed loan paid off with no problems.

I found the practice of divorce and family law litigation to involve almost without exception a mutually unrewarding outcome for both parties, except when the parties had come to a mediated agreement. I also was frustrated by the high financial costs being imposed on my clients by the litigation process.

In order to refocus my law practice into a more socially beneficial business, I underwent training as a family law mediator and decided to focus on the non-litigation practice of law. I also have associated with a national law firm with an exclusive focus on the largely administrative practice Social Security Disability Law.

One area that I’m keeping is the practice of helping small businesses from forming incorporation and partnerships, drafting contracts, and help with regulatory compliance. Advising and helping small businesses grow has been one of the most rewarding aspects of my practice of law.

I also greatly enjoy the more cerebral and written area of appellate practice. One of the most rewarding cases in my practice was In Re Angela E. et. Al., (Tenn. 2010), where I was appellate counsel and ultimately achieved a reversal of both the trial court and the Tennessee Court of Appeals.

Creative Ways to Avoid Foreclosure Eviction

Most homeowners were unaware that their mortgage payments and job employment status were going to wildly swing in different directions.

Most banks were unaware that the majority of homeowners were going to be experiencing this problem at the same time.

As a result, a monsoon of defaults rained down on the financial system.

Many families faced foreclosure eviction.

It is important to distinguish between foreclosure and eviction.

The two things do not necessarily go hand-in-hand.

In this fact lies a temporary solution that might help you if you are facing this problem.

Foreclosure will transfer the ownership of the property to the bank.

This asset might change hands a few times.

However, since there are not exactly a ton of buyers on the market, the new owner may be willing to allow you to rent the property while you get your finances in order.

Moving can be expensive.

Foreclosure eviction carries all of the same devastating misery of a traditional eviction, along with the realization that you will not be the owner of this property.

Another way to avoid this circumstance is to stop the foreclosure before it happens.

Foreclosure eviction necessarily requires that the bank foreclose on your home.

Foreclosures are harmful to a bank’s reputation in complex economic times.

This means that the bank would prefer to refinance, possibly even in a way which is favorable to you.

Ultimately, many banks are going to collapse under the weight of all of these foreclosures.

This means they are going to work just as hard as you to avoid foreclosure eviction.

If you fear you might be facing a foreclosure eviction, it is important to weigh all of your options.

There are a few different strategies that can keep you in your home.

A bit light, and I think it illustrates some good viewpoints, but banks at least in Memphis really seem overly bureacratic to respond to specific circumstances.