2013 August 30 by jesse
I have attended hundreds of meetings with the bankruptcy trustee with my clients in both chapter 7 and chapter 13. Clients are often very nervous and unsure about the meeting of creditors. No one wants to appear in a public place to be questioned about their bankruptcy and finances.
The Meeting of Creditors is less like going to Court, and more like going to the DMV to register your case (in most cases). However, the unknown is usually scary.
So … In order to serve my clients better and prepare them for the meeting I complied a list of general questions the Trustee will most likely you. Hopefully they will be a help to you.
- The Trustee will swear you in.
- Please state your name, address. (If there are 2 of you, the second person can just say “same address” if you live at the same address).
- Have you ever filed bankruptcy before? If so, when and where?
- Are you still employed at XYZ and making the same you were when you filed bankruptcy? (Please let the attorney know if you have changed jobs or received an increase/decrease in income since your bankruptcy was filed).
- Is there any other source of income besides your employment?
- How many people are in your household?
- Do you own any real estate?
- If so, how did you determine its value? When did you purchase it? How much did you purchase it for? What do you think it would sell for today?
- If no, then: Have you ever owned any real estate in the last 4 years? (Please let the attorney know if you have).
- Your Plan calls for X number of payments of $______ per month. Have you made your first payment? Will you be able to make your Plan payments on a regular and timely basis?
- Over what period of time were the bulk of your debts incurred?
- Have you listed all your debts?
- Have you listed all your assets?
After the attorney asks you the above questions, s/he will then ask if there are any creditors who wish to ask questions. The only creditors who appear with any degree of regularity are the IRS, the Colorado Department of Revenue, ex-spouses who want a pound of flesh, and ex-business partners who have a bone to pick. Most creditors never appear at these meetings.
In addition to these questions, the Trustee’s Attorney may ask some questions specifically relating to your bankruptcy.
ONLY ANSWER THE QUESTIONS THAT ARE ASKED. Do not offer more information than what is requested. If you are unsure what to answer you can ask your attorney, who will be sitting right next to you.
After you have been examined by the Trustee’s Attorney you are free to leave.
2013 August 20 by jesse
The Federal Housing Administration (FHA) is allowing borrowers who went through a bankruptcy, foreclosure, deed-in-lieu, or short sale to reenter the market in as little as 12 months, according to a mortgage letter released Friday.
Borrowers who experienced a foreclosure must wait at least three years before getting a chance to get approved for an FHA loan, but with the new guideline, certain borrowers who lost their home as a result of an economic hardship may be considered even earlier.
For borrowers who went through recession-related financial event, FHA stated it realizes “their credit histories may not fully reflect their true ability or propensity to repay a mortgage.”
In order to be eligible for the more lenient approval process, provided documents must show “certain credit impairments” were from loss of employment or loss of income that was beyond their control. The lender also needs to verify the income loss was at least 20 percent for a period lasting for at least six months.
Additionally, borrowers must demonstrate they have fully recovered from the event that caused the hardship and complete housing counseling.
According to the letter, recovery from an economic event involves reestablishing “satisfactory credit” for at least 12 months. Criteria for satisfactory credit include 12 months of good payment history on payments such as a mortgage, rent, or credit account.
The new guidance is for case numbers assigned on or after August 15, 2013, and is effective through September 30, 2016.
Author: ESTHER CHO