Category: Bankruptcy

Beware of Cross-Collateralization when dealing with Credit Unions

A cross-collateralization clause makes the collateral that secures the car loan (the car) serve as collateral for all loans the credit union has made or will make to you. This transforms any unsecured debts that you have with that credit union (i.e., a credit card) into secured debt. It is often the case that the debtor has no idea that this cross-collateralization exists until after default or during

Can my Homeowner’s Association (HOA) foreclose on my home?

Many borrowers that have stopped making their mortgage payments are unsure as to whether or not they should continue making payments to their homeowner’s association; commonly referred to as their HOA. My clients that are facing foreclosure often ask what the consequences are for not paying the HOA. And, they are often surprised with my

When is the right time to file for Bankruptcy?

When to file for Bankruptcy? This is one of the most frequently asked questions that my clients need answering. The truth is, like most answers to legal questions, it depends... Creditor Harassment / Collection Calls: If the primary force driving you to file for bankruptcy is harassing phone calls, letters, and e-mails from your creditors,

What are the alternatives to Bankruptcy?

Believe it or not, there are some alternatives to bankruptcy. Your right to file for bankruptcy and discharge your debts is a very important and very powerful right. It can only be used once every 8 years and should not be exercised unless absolutely necessary. The general rule of thumb for deciding whether you should

What Happens to my 2nd Mortgage/Home Equity Loan in Ch. 7 Bankruptcy?

Many clients are concerned with what will happen to their second mortgage (also referred to as a Home Equity Loan, Home Equity Line of Credit or HELOC) during and after Chapter 7 Bankruptcy. What is Second Mortgage? In general, second mortgages or HELOCs are loans that property owners get. The value of the property above