Category Archive for: ‘Bankruptcy’

Eliminate second mortgages and save your home in San Diego

One of the most rewarding aspects of my practice is helping struggling homeowners to keep their home and avoid foreclosure by using a popular but not widely known provision of the bankruptcy code to eliminate second mortgages.

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Should an attorney be retained if I don’t know whether bankruptcy is right for my company?

Clients are often concerned about seeking the help of a bankruptcy attorney when they are uncertain or unwilling to enter into bankruptcy. It’s important to know that I am frequently retained prior to a potential bankruptcy to assist in negotiations and exploring options. I can add value by showing creditors the consequences of refusing to negotiate and providing my clients …

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Funds must be paid or transferred in order to qualify as “Student Loan” for bankruptcy purposes

Often students will apply for several student loans at one time, but then only accept one or two of the loans for which they qualify. And occasionally, a student will even sign a contract/promissory note for a student loan, but never actually receive the proceeds of the loan.

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The 7 requirements for a loan to be a “qualified education loan” to be non-dischargeable in bankruptcy:

In order for a “student loan” to be non-dischargeable in bankruptcy, it must meet the following 7 requirements to be a “qualified education loan”: 1) The loan must have been incurred by an individual borrower. Loans incurred on behalf of a business or other organization do not meet this requirement.

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Some Student Loans ARE Dischargeable in Bankruptcy

While most student loans cannot be discharged in bankruptcy without meeting a very high standard of “undue hardship”, there are some exceptions that may make a student loan dischargeable in bankruptcy.

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The “Undue Hardship” Test for a Student Loan to be Dischargeable in Bankruptcy

The Bankruptcy Code allows student loan to be discharged if preventing the discharge would impose an “undue hardship” on the borrower or the borrower’s dependents. Although this is often an extremely difficult standard to meet, it is important to understand what the court will consider in your case. In California, courts apply what is called the “Brunner Test” to determine …

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Debt Relief Options: Short Sales in San Diego

When faced with the prospect of foreclosure, another debt relief option is short sale. One of those options is called short sale. A short sale is when a property sells for less than the balance owing on the mortgage. A short sale transaction is typically more advantageous than foreclosure for both the homeowner and lender, as the property will most …

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Debt Relief Options: Foreclosure in San Diego

Foreclosure occurs when the lender forces the sale of a home that was used as collateral to secure a mortgage loan that the debtor can no longer re-pay. Home foreclosure a very stressful financial situation and unfortunately an all to familiar debt relief option. Fortunately, under California law there is anti-deficiency protection for loans that forecloses in many cases. This …

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Tax Liability under Mortgage Forgiveness Act of 2007, California

Normally, debt forgiveness results in taxable income. But under the Mortgage Forgiveness Debt Relief Act enacted by the Congress in 2007, taxpayers may exclude debt forgiven on their principal residence if the balance of their loan was $2 million or less. In some cases, however, other kinds of tax relief, based on insolvency, for example, may be available. Keep in …

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Available Options When Mortgage is in Default

When a homeowner is no longer able to continue to make mortgage payments to the lender, the homeowner should explore several available options before the lender begins the foreclosure process, i.e. short sale, deed in lieu of foreclosure, loan modification, and bankruptcy. When considering these options, every homeowner should be primarily concerned with the following 2 liabilities:

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