BANKRUPTCY MAY PLAY A PART IN RETIREMENT PLANNING, ATTORNEY SUGGESTS

Bankruptcy Attorney warns people getting ready for retirement not to raid savings to pay off debts

For Immediate Release – Wednesday, December 8, 2010

Contact:  Mike Greiner – 586-693-2000 * mike@financiallawgroup.com

Warren, MI – A prominent Detroit-area Bankruptcy Attorney is suggesting that people getting ready for retirement should include Bankruptcy as part of their retirement planning.

“The greatest tragedy I see is when a client comes into my office who has wiped out a 401K account to pay interest on credit cards,” Attorney Michael Greiner said. “These folks end up in the same boat where they started, usually they have a big tax liability, and now their retirement’s in jeopardy.”

Greiner pointed to a few approaches someone should take into consideration when planning retirement:

• Retirement accounts such as 401Ks, 403bs and 457s are fully protected in Bankruptcy: “The only way creditors get access to your retirement funds is if you give it to them,” Greiner said. “People need to view their 401K as a retirement fund, and not as a piggy bank to pay credit cards.”
• Many courts allow homeowners to knock the second mortgage off their homes in Chapter 13 Bankruptcy: Where property values have declined to the point that the value is less than the amount owed on the first mortgage, second mortgages and home equity loans can often be wiped off someone’s home in a Chapter 13 Bankruptcy case. “Reducing someone’s mortgage debt can be an important step toward retirement,” Greiner said. “This approach creates an affordable path for many people to accomplish that goal in a reasonable amount of time.”
• Debt can be a major burden to people looking to retire: “At a time when people are getting ready to retire, they should be putting their money into savings, not paying interest on credit cards,” Greiner said. “For many people, eliminating credit card debt in Bankruptcy might allow them to retire where they might not have been able to with the debt.”

Greiner is the founder and President of the Financial Law Group, P.C., a Detroit-area law firm specializing in Bankruptcy (www.financiallawgroup.com). He has represented thousands of individuals, businesses and creditors in Bankruptcy. He is also the writer of the recently-published Bankruptcy 101: An Insider’s Guide to Filing Chapter 7 Bankruptcy on your own without an Attorney, and he is the creator of the website myeasy7.com which assists individuals in filing Chapter 7 Bankruptcy without an attorney. He blogs at myeasy7.com/blog.

Cities such as Hamtramck and others may find real solution to financial crisis in Bankruptcy Court, Bankruptcy Attorney says
For Immediate Release – Thursday, November 18, 2010

Contact: Mike Greiner – 586-693-2000 * mike@financiallawgroup.com

Warren, MI – A prominent Detroit-area Bankruptcy attorney today blasted the State of Michigan for telling Hamtramck to borrow more money rather than filing Bankruptcy to restructure its finances. “This is another example of the State trying to paper over the problem rather than addressing the fundamental issue,” Attorney Michael Greiner said.
The foreclosure crisis has resulted in a crisis in local government – lower property values have resulted in lower property taxes for municipalities and school districts. But Greiner says that cities may be able to resolve their financial crises by filing Bankruptcy.
“Bankruptcy is a tool,” Greiner said. “When any entity, including a city, finds itself in financial trouble, the Bankruptcy Court is a place to resolve the competing interests in an organized way.”
Greiner, the former Deputy Mayor of Michigan’s third largest city, pointed out that there are some changes that can be made by filing Chapter 9 Bankruptcy that can’t be accomplished outside of Bankruptcy:

• The City can impose a reasonable settlement on its bond-holders: Governments borrow money by selling bonds. Many of these bonds were sold when times were good and the governmental entities expected to have the revenues to repay these bonds. But when times change, sometimes the pressure on municipalities to repay these debts is unrealistic. Pittsburgh used bonds to finance a new airport terminal for USAirways. But pressures on the airline industry have resulted in fewer passengers at Pittsburgh’s terminal than expected. The City has negotiated for some time with its bondholders to reduce its payments on these loans, and just recently it came up with a deal. But the deal is likely too little, too late, and the cost of repaying these bonds continues to put a severe strain on Pittsburgh’s finances. By filing Bankruptcy, the process could be resolved much more quickly by employing the powers of the Court.

• Cities can rely on the Court to help it make politically unpopular moves: It is often difficult for elected officials to take on the powers that be in their communities. The one-term Mayor of Washington, Adrian Fenty, lost his election after he worked to reform the educational system in his city. In Detroit, Mayor Dave Bing is struggling to reduce the services his city provides to residents to better match the funds available. Bing, however, is already running into opposition from a number of neighborhood groups. By going into Bankruptcy, a non-elected official, the Judge, balancing the interests of the City residents and the creditors, can impose service cuts or tax increases that elected officials find unpalatable. “The pressure elected officials are under to cater to unrealistic demands is intense,” Greiner said. “Court orders are a way to get something done that may be too controversial politically.”

• Bankruptcy Court can change benefit plans, union contracts if needed: Public sector employment is often governed by much more pro-employee laws than in the private sector. States such as Michigan, North Carolina and California protect public employee benefits and union contracts in ways that would be unacceptable in the private sector. But a Federal Bankruptcy Court has the power to overrule these laws if unions continue to make unreasonable demands. Baltimore has been struggling of late to reduce its pension obligations. There, some city employees have retired at less than 55 years of age earning a pension equal to as much as their full salaries while they worked. Vallejo, California already filed Bankruptcy to address these obligations, and Greiner believes more are on the way. “Pensions and benefit plans are a huge burden on local government,” Greiner said. “The unions use their political power in the State capital and with the City Council to stop reform. Those tactics won’t work with a Bankruptcy Judge.”

Greiner is the founder and President of the Financial Law Group, P.C., a Detroit-area law firm specializing in Bankruptcy

(www.financiallawgroup.com). He has represented thousands of individuals, businesses and creditors in Bankruptcy. He is also the writer of the recently-published Bankruptcy 101: An Insider’s Guide to Filing Chapter 7 Bankruptcy on your own without an Attorney, and he is the creator of the website myeasy7.com which assists individuals in filing Chapter 7 Bankruptcy without an attorney. He blogs at myeasy7.com/blog.

Bad documents right from the beginning might be a problem for mortgage companies, Bankruptcy Attorney warns
For Immediate Release – Wednesday, November 17, 2010

Contact: Mike Greiner – 586-693-2000 * mike@financiallawgroup.com

Warren, MI – With mortgage companies working to foreclose on homeowners facing allegations of improper review of foreclosure documents, a prominent Detroit-area Bankruptcy and Real Estate Attorney says the problems run even deeper.
“Bad documents lead to bad mortgages lead to bad foreclosures,” Attorney Michael Greiner said. “Yes, the process for reviewing these documents has often been flawed, but many of the mortgage documents have been flawed right from the beginning.”
Greiner, whose practice has included the audit of mortgage brokers for the State of Michigan, frequently saw documents that were incorrectly, unrealistically or incompletely filled out. Some of the issues these mortgage documents raise include the following:

• Back-up documents were incomplete or missing: Mortgage applications usually required tax returns and proof of income. Yet far too often, such documents are missing from the mortgage files.

• Income and asset estimates are unrealistic: In some applications, people claimed to have six figure incomes and hundreds of thousands of dollars of assets where the only source of income might be work at a nail salon. These estimates, though questionable, were accepted at face value by the mortgage companies.

• Sometimes it’s hard to even tell who the debt is owed to: Borrowers have become well aware of the way mortgages and other debts are bought and sold time and again. Often, the company the homeowner sends the check to is just the servicer – they receive the funds and pass them on to another party who actually owns the debt. Finding the actual owner of the debt to negotiate an agreement can be a real challenge.

Greiner said that when times were good, mortgage companies really dropped the ball on making sure documents were truthful, accurate and complete. But now, these companies are relying on these documents to support foreclosures. “The robosigning scandal is just the beginning,” Greiner said. “I hope courts start to take a hard look at some of these mortgage documents.”

Greiner is the founder and President of the Financial Law Group, P.C., a Detroit-area law firm specializing in Bankruptcy(www.financiallawgroup.com). He has represented thousands of individuals, businesses and creditors in Bankruptcy. He is also the writer of the recently-published Bankruptcy 101: An Insider’s Guide to Filing Chapter 7 Bankruptcy on your own without an Attorney, and he is the creator of the website myeasy7.com which assists individuals in filing Chapter 7 Bankruptcy without an attorney. He blogs at myeasy7.com/blog.

For people with two mortgages – such as a mortgage and a home equity loan — Greiner suggests people knock off the second mortgage in Bankruptcy

For Immediate Release – Wednesday, November 10, 2010

Contact:  Mike Greiner – 586-693-2000 * mike@financiallawgroup.com

Warren, MI – A prominent Detroit-area Bankruptcy attorney is urging homeowners to knock the second mortgage off their homes as a way to resolve the mortgage crisis.

“Courts have ruled that where a homeowner is so far underwater that there is no equity in the home to support the second mortgage, that those mortgages can be wiped off the house in a Chapter 13 Bankruptcy case,” Attorney Michael Greiner said. “In my experience, this is often the best mortgage modification most people can get.”

Greiner pointed out that the economy has continued to struggle largely due to the continuing crisis in residential mortgages. “With so many people owing more on their homes that the houses are worth, foreclosures continue to be a major drag on our economy,” Greiner said. “The banks have been a major cause of this problem.”

“Unfortunately, after we taxpayers bailed out the banks, they seem to feel no obligation to help the same people who rescued them,” Greiner said. “Despite the p.r. claims that banks work with their customers to help them keep their homes, the reality is that a real, helpful mortgage modification is a very rare thing. About 90 percent of the time, the banks turn down borrowers flat or they propose something that is totally unhelpful. In fact, I’ve seen where people who can’t afford to make their mortgage payments apply for a modification, and the bank actually increases their payment.”

What Greiner has been able to do for numerous people is to file a Chapter 13 Bankruptcy case. Typically, there is a small payment for three to five years, often less than the homeowner is paying on the second mortgage. At the end of that period, the second mortgage is entirely knocked off the home and the homeowner only owes the first mortgage.

Key points to bear in mind:

• Greiner said that banks only do truly helpful traditional mortgage modifications for about 10 percent of the people who apply for one.
• Greiner says that most mortgage modification companies charge desperate homeowners money when they can least afford it despite the fact that their efforts are rarely successful.
• Greiner says that there is no real federal “program” to assist homeowners facing foreclosure – the so-called programs consist of calling up the banks and asking them for help, an approach that leaves all the power in the hands of the mortgage companies.

Who is eligible for knocking off a mortgage in Bankruptcy:

• You must have more than one mortgage on your home. A home equity loan is a second mortgage.
• You must owe more on your first mortgage than you could sell your home for. You might need to get an appraisal to prove this point.
• You must have a regular source of income. This source of income need not be a job. It could be a pension, Social Security, or even family support.

Greiner pointed out that this is a relatively new area of law, and that although it has been accepted in a number of Bankruptcy courts, it may not be a viable option nationwide. He urged interested homeowners to discuss this option with a qualified local Bankruptcy attorney.

Greiner is the founder and President of the Financial Law Group, P.C., a Detroit-area law firm specializing in Bankruptcy (www.financiallawgroup.com). He has represented hundreds of individuals, businesses and creditors in Bankruptcy. He is also the writer of the recently-published Bankruptcy 101: An Insider’s Guide to Filing Chapter 7 Bankruptcy on your own without an Attorney, and he is the creator of the website myeasy7.com which assists individuals in filing Chapter 7 Bankruptcy without an attorney.

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BANKRUPTCY ATTORNEY WARNS HOMEOWNERS ABOUT MORTGAGE SCAMS

Mortgage modification programs can get homeowners into deeper trouble, Greiner warns

For Immediate Release – Tuesday, November 9, 2010

Contact:  Mike Greiner – 586-693-2000 * mike@financiallawgroup.com

Warren, MI – A prominent Detroit-area Bankruptcy attorney is warning homeowners not to fall into some mortgage modification traps that are getting people into trouble.

“People are desperate when they apply for these mortgage modifications,” Attorney Michael Greiner said. “As a result, these people are falling into so-called solutions that leave them in worse shape than they were when they started.”

Greiner pointed out three key landmines for homeowners hoping to modify a mortgage:

• Don’t fall behind on your mortgage payments to try to pressure the mortgage company to work with you: Most experts estimate that only about one in ten mortgage modification requests actually result in something useful to the homeowner. Recent government statistics indicate that 450,000 mortgage modifications have been granted compared to over 6 million foreclosures. Many mortgage modification experts and even some mortgage companies advise people to fall behind in their mortgage payments to prompt the modification process. The problem is that since the mortgage companies modify mortgages so rarely, nine times out of ten this strategy backfires, simply leaving the homeowner far behind in his mortgage payments, owing late fees and legal fees, and unable to get caught up.
• Don’t pay someone to help you modify a mortgage: Many companies are advertising their services as mortgage modification experts. The problem is that many of these companies are nothing more than scams, and even where such a company legitimately wants to help the homeowner, there is nothing this person can do that the homeowner can’t do on his or her own simply by calling the mortgage company and completing the mortgage modification packet. In short, the homeowner often spends thousands of dollars – money that could be spent to keep a mortgage current – that he or she really didn’t get anything in return for.
• Don’t try to “settle” your 2^nd mortgage: If a homeowner has a second mortgage that is entirely unsecured due to the drop in real estate values, the mortgage company may be willing to settle that mortgage for less than its full value. The problem is that any reduction in the value of the mortgage is considered taxable income, and many individuals erase any savings they received by settling the second mortgage with a big tax bill.

Greiner emphasized that if someone is behind in his or her mortgage payments, there may be something that can be done to save the home. “Don’t put yourself in worse shape by falling into one of these traps,” Greiner said. Greiner suggested that instead, a homeowner should talk with a Bankruptcy attorney qualified in Chapter 13 cases about some of his or her options.

Greiner is the founder and President of the Financial Law Group, P.C., a Detroit-area law firm specializing in Bankruptcy (www.financiallawgroup.com). He has represented thousands of individuals, businesses and creditors in Bankruptcy. He is also the writer of the recently-published Bankruptcy 101: An Insider’s Guide to Filing Chapter 7 Bankruptcy on your own without an Attorney, and he is the creator of the website myeasy7.com which assists individuals in filing Chapter 7 Bankruptcy without an attorney.

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For more information visit:  www.financiallawgroup.com The Financial Law Group is located in Warren, Michigan and provides chapter 13, chapter 11 and chapter 7 bankruptcy services to Oakland County, Macomb County, Wayne County and St.Clair County, Michigan.

BANKRUPTCY ATTORNEY CALLS FOR BOYCOTT OF STUDENT LOANS

Urges students to charge educational costs on credit cards since they would be dischargeable in Bankruptcy

For Immediate Release – Thursday, November 4, 2010

Contact: Mike Greiner – 586-693-2000 * mike@financiallawgroup.com

Warren, MI – A prominent Detroit-area Bankruptcy attorney is urging a national boycott of student loans. Instead, Attorney Michael Greiner, urges students to charge their educational debts on credit cards – debts that unlike student loans, would be dischargeable in Bankruptcy.

“The next big debt crisis our nation will be facing is the student loan crisis,” Greiner said. “People are coming out of college with so much debt that they have no way to pay it back with the jobs that are available to them.” Students can have $40,000 in student loan debt or more.

Student loans typically don’t get discharged in Bankruptcy. This protection is afforded not just to the federally-backed student loans, but even to private student loans which often charge credit-card interest rates.

“The protections that Congress has given to these student loan issuers are unacceptable,” Greiner said. “The only way we will change this system is to refuse to participate in it.”

Instead, Greiner is urging students to charge student debt onto credit cards. “With these private student loans, students often pay interest as high as on credit cards,” Greiner said. “At least credit cards are dischargeable in Bankruptcy if the student is unable to afford the payments.”

Greiner has seen an increase in graduates looking for relief from high student loan payments. “Unfortunately, there is nothing I can do for these folks,” Greiner said. “Some student loans allow for deferrals in payments, but while you’re not paying, the interest keeps going up. A few deferrals will double or triple the total amount of debt a recent graduate has.”

Key points to bear in mind:

• Student loans – whether they be government or private — are generally not dischargeable in Bankruptcy. That means that even if a person owing student loans files Bankruptcy, he or she would still owe that debt. On the other hand, credit cards used to pay educational costs are typically discharged in Bankruptcy.
• Even if a parent pays for a child’s education, those student loans would be non-dischargeable in a Bankruptcy case. As a result, parents should use credit cards to finance a child’s education.
• It is important that when an individual charges educational debt on a credit card, those charges never be made with the intent to discharge them in Bankruptcy – that would be considered fraudulent. However, there is nothing wrong with staying away from student loans due to the fact that if the person is required to file Bankruptcy sometime in the future, those debts would be non-dischargeable as opposed to credit cards which would be discharged in a Bankruptcy.

Greiner is the founder and President of the Financial Law Group, P.C., a Detroit-area law firm specializing in Bankruptcy. He has represented hundreds of individuals, businesses and creditors in Bankruptcy. He is also the writer of the recently-published Bankruptcy 101: An Insider’s Guide to Filing Chapter 7 Bankruptcy on your own without an Attorney, and he is the creator of the website myeasy7.com which assists individuals in filing Chapter 7 Bankruptcy without an attorney.
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So, what have you finally planned to do with the rising amount of debts? Perhaps you are burying your head in sand with the hope that everything would be fine someday. Think once, just sitting and doing nothing won’t help you and if you are one amongst the million Americans almost drowned in unsecured debt then just hoping against hope and robbing Peter to pay Paul won’t be of any help. In fact in this recent economic scenario people are finding it almost impossible to get out of the mounting amount of debt. It is when Massachusetts Foreclosure finds its way to a number of American families.  And if you are the one naked deep in debt and think that it’s impossible to get out of the quick sand, then it is an indication that you need professional assistance. Consider filing for bankruptcy to get out of your debt with dignity. Still the question remains how to file for bankruptcy. Well before that let’s see what bankruptcy is! Bankruptcy is a legal help, typically structured to give people a fresh start, free of debt. However, before you decide to file Massachusetts bankruptcy, it’s advisable to educate yourself on the varied categories of bankruptcy and bankruptcy laws.

In fact Bankruptcy is the last resort and the law has defined some of the situation as the perfect scenarios to go ahead with Massachusetts bankruptcy filing.  Let’s see when you can file for bankruptcy.  If and when you start borrowing from one card to pay the other, when you try your level best to keep your debts up to date and for this, you start using your savings. Apart from the above eluded situations if you have defaulted on credit card, if your business fails, or if you had a substantial reduction in your monthly income, then you can file think about filing for bankruptcy in Massachusetts.

In fact the new bankruptcy law has typically defined 4 different types of bankruptcy like the Chapter 7, Chapter 11, Chapter 12 and the Chapter 13. Also known as the individual bankruptcy, the Chapter 7 and the Chapter 12 are typically created to help you in restructuring your financial status. While Chapter 7 helps you in getting released from your dischargeable debts, Chapter 13 however allows you to reduce your debt to a manageable level and also supports you in maintaining the payment plan. Chapter 11 bankruptcies are known as the business bankruptcy and cater to the business entities while Chapter 12 bankruptcy is typically structured for the farmers and the anglers.

Few of the bankruptcy actions allow the debtor to stay in his business and use the revenue that has been generated just to resolve his loans. In fact the chapter 7 that is called liquidation is also known by straight bankruptcy and is known as the most common kinds of bankruptcy measures. This bankruptcy law typically involves an appointment of a trustee and the trustee is the person who collects all the non-exempts assets of the debtor and sells it and then distributes the takings to the creditors. Other chapters are 11, 12 and 13 that basically involves the remedy of the debtors to permit them to use future income in order to pay off the creditors.

The bankruptcy laws are just not simply charity and are meant for the greater perspective of encouraging the entrepreneurial risk taking and for the growth of the U.S economy. With mortgage loan modifications and with an array of other methodologies bankruptcy helps in regaining your financial balance. The Massachusetts bankruptcy center with its various locations and with a team of expert bankruptcy attorneys provides tailored solutions in restructuring your financial stability.

Related Chapter 11 Bankruptcy Articles

This video outlines what is a Chapter 13 Bankruptcy. Utah Bankruptcy Attorney Jeremy Eveland explains.

A successfully filed Chapter 7 Bankruptcy completely discharges, or wipes out, most unsecured debts, including but not limited to credit cards, medical bills, utility bills, payday loans, and any other debts that do not have collateral or a hard asset attached to them.   Chapter 7 bankruptcies are the most common type of bankruptcy and are commonly referred to as a “Fresh Start” Bankruptcy.

Characteristics of Chapter 7 include:

1. Permanent Discharge of Unsecured Debts

In general, all or nearly all unsecured debts are eligible for discharge in a Washington State Chapter 7 bankruptcy. These are debts that have no assets attached to them. For example, the following are all typically discharged in Washington Chapter 7 bankruptcy: credit cards, unpaid medical bills, repossession deficiencies, signature loans, payday/cash advance loans, most collection matters, and nearly all lawsuits. Certain debts, however, such as student loans and back taxes, probably will be eligible for discharge.

2. Permanent Discharge of Secured Debts if the Secured Property is Surrendered

If you choose to surrender property that is carrying a debt balance, these debts are typically permanently discharged as well. For example, the secured loan on a car is wiped out (discharged) if you allow the car is repossessed or simply forfeit it and where you owe more than the car is worth (a repossession deficiency).   If not already repossessed, the property can be surrendered before or after you file for bankruptcy.

3. Automatic Stay

After you sign off on your Washington State Chapter 7 Petition, our offices will electronically file it in United States Bankruptcy Court. Immediately upon filing, the court enters an order protecting you from all creditor action. In so doing, the Bankruptcy Court orders all creditors to stop all harassing phone calls, lawsuits, threats, judgments, repossessions, and garnishments. This protection Order is known as the “Automatic Stay”.

4. Keep Exempt Property

Most people are able to keep all of their property in a bankruptcy. If you have furniture and household goods of average value and are willing to keep up your car payment(s), you will most likely keep all of your personal property. Retirement accounts (401(k), IRA, etc) are also exempt property that you will be allowed to keep following a final discharge of your unsecured debts in a bankruptcy proceeding.

5. Keep your House

In a Chapter 7 bankruptcy, you may continue to pay your mortgage or your car loan and keep the house or car by signing a “Reaffirmation Agreement” or, in most cases, by simply remaining current on your secured debts and continuing to make the regular payments.  In effect, a reaffirmation agreement takes the place of your original agreement and essentially makes it as though you have not filed a bankruptcy on those particular loans. In many instances, however, we do not recommend filing a reaffirmation agreement. We simply recommend that you keep making your monthly payment.

Usually homeowners who file for bankruptcy do so because they do not have enough equity to refinance their home to pay of their unsecured debts. In the State of Washington for example, so long as you do not have more than 5,000 of equity after typical closing costs from a sale, you are virtually assured of keeping your home so long as you continue to make your mortgage payments (and secured lines of credit, if any).

While filing for bankruptcy will not lower your regular monthly mortgage payment, a Washington State Chapter 13 Bankruptcy (not Chapter 7) will allow you to catch up on your payments over as long as a five-year period. In order to qualify for a Chapter 13 bankruptcy, however, you must make payments toward the amount you are behind in your mortgage AND be able to make your regular mortgage payment.

If you can now afford to make your mortgage payments, but still wish to sell your home, filing a Chapter 13 bankruptcy will cancel the scheduled foreclosure sale and give you time to list your property for sale. This will allow you to gain more profits and to net additional proceeds from your home than you would typically earn at a foreclosure sale.

6. Keep Your Car

So long as you continue to make your car payments, you can typically keep your vehicle(s). Most people who have car payments do not have enough or any equity in their vehicle for the cars to be considered non-exempt. In fact, in the majority of cases, people owe more than their car is worth. Only in cases where you have a car that is worth considerably more than the amount owing on it, or a car of significant value where you have no loan on it at all, would you not be allowed to keep your vehicle in a bankruptcy proceeding.

Chapter 7 also gives you an option to “Redeem Your Vehicle”. This process involves you paying the secured creditor the fair market value of the collateral, which is typically far lower than the amount you still owe on your current car loan. In exchange for redeeming your vehicle, the creditor provides you with the release of their lien. There are several redemption finance companies we can refer you to that will provide you with a loan will have new and lower payments based upon your vehicle’s current and fair market value.