In a developing area of law, a Massachusetts Superior Court judge ruled that Citibank (South Dakota) was charging an unconscionable rate of interest against a Massachusetts credit card user. The Court pointed out that “the general public is drowning in credit card debt” and that “unregulated interest rates and hidden fees the credit card companies charge..make it impossible for consumers to get out from under these debts.” Notwithstanding the agreement or “contract” between the credit card issuer and the consumer, the Court noted the one “sided nature” of those credit card contracts.
Once the interest rate is over 18%, “individuals must make monthly payments for years before putting a dent in their debt” wrote Judge Robert A.
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Recently, in Old West Annuity and Life Ins. Co. v.
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Technically speaking, once you have decided to seek debt relief through a bankruptcy petition, you are not permitted to take on any further debt. Engaging an attorney to help you through the bankruptcy process will incur further debts. Of course, when undertaking any action through the court system, we are entitled to counsel, so bankruptcy law has a process that allows this one extra debt.
Engaging an attorney to help you through the bankruptcy process then becomes a two-stage process. You engage an attorney to help you prepare and file your petition along with all the necessary documents. One form that you will also need to include is a formal request to engage a professional to advise you through the process itself.
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There are hearings in Washington to explore giving Bankruptcy judges more power in rewriting mortgages. This could have a dramatic effect on defaulting Massachusetts homeowners, especially those that file for personal bankruptcy in Massachusetts. Rhode Island Senator Sheldon Whitehouse and the Senate Judiciary Committee, held hearings regarding allowing bankruptcy judges to modify mortgages. http://c-span.org/Events/Senate-Judiciary-Cmte-Hearing-on-Foreclosure-Mediation-Programs/10737419295/
The Home Affordable Modification Program (HAMP) which is the current mortgage program is not available for chapter 7 bankruptcy filers. This program was designed to help over three million homeowners, however, to date, has been used by only about 500,000 homeowners.
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There are primarily two ways for an individual to file for bankruptcy, Chapter 7 and 13. According to Chapter 7, a person may keep a certain part of his property together with most liens, like real estate mortgages. If the person has other assets then these are sold off by the interim trustee to pay off the creditors. However, in any US city like Los Angeles and San Diego there are numerous unsecured debts which get cancelled if Chapter 7 is filed. says Los Angeles Bankruptcy Attorney Steven C. Peck.
There is one major disadvantage of filing Chapter 7. A record of it stays for 10 years on the debtor’s credit report. This practically makes the debtor less eligible to get any further credit for the next 10 years and/or the terms of credits available would be less friendly. Read all post…