San Francisco Bankruptcy Lawyer Blog

As San Francisco Bankruptcy Attorneys we deal with people who have to decide about what exemptions to chose.

Bankruptcy lawyers San Francisco on Exemptions

What's the deal with exemptions?

Exemptions represent a fundamental aspect of the bankruptcy process. They must be a central consideration of debtors and the attorneys who represent them as it is by claiming exemptions that debtors are able to hold on to their property.

Exempt property is the stuff you're entitled to keep once you file for bankruptcy. Non-exempt property is the stuff you may have to give up. That is, the trustee who oversees your case is within his or her rights to take and sell your non-exempt property in order to compensate your creditors.

Each state has its own exemption system. In some states debtors can choose between their own state's exemption system and the federal bankruptcy exemptions. California allows debtors to choose between two sets of exemptions, one of which is similar to the federal scheme. In all cases, however, you must choose only one - no mixing and matching.

Figuring out what property you'll be able to keep then is a three-step process. First, you'll have to decide which set of exemptions you'll use. Second, you'll need to take an inventory of your personal property. Third, you'll apply the exemptions to your assets in order to get a sense of what you'll be able to keep and what you may have to give up.

Continue reading "Not everything will go in a chapter 7 bankruptcy" »

As a San Francisco Bankruptcy Attorney I often encounter the legal complications of same sex marriages and state and federal law.

Bankruptcy Attorneys in San Francisco on Same Sex Marriages

In today's post we'll take a look at whether a same-sex couple can file for bankruptcy together. Same-sex couples file for chapter 7 and for chapter 13 bankruptcy.

Same-sex marriages and domestic partnerships have become increasingly common as a result of legislative efforts to provide equal protection under the law for all. But so far the legislative action in this area has been on the state level. Bankruptcy is governed by federal law, however, which means that states must bow to the federal system in this area of law.

San Francisco Bankruptcy lawyer on DOMA

A recently enacted federal law greatly reduces the chances of a same-sex couple to be able to file jointly for bankruptcy. This law is the Defense of Marriage act (or DOMA). It defines marriage as a union between a man and a woman. This definition of marriage applies to all federal legal actions. The upshot is that federal law does not currently acknowledge same-sex marriages. And it permits states to disregard same-sex marriage ceremonies performed in other states.

As a result of the federal position on same-sex marriages, couples that wish to file jointly will unfortunately have to file separately. However, the law in this area is still in flux due to the newness of the issue and changes may occur in the near future.

Continue reading " Same-Sex marriages in San Francisco Bankruptcy Proceedings" »

I am a San Francisco Bankruptcy Attorney. I try to qualify my loan modification clients for the Obama Plan but learned that most banks are not very open to apply the rules of the Obama Plan but rather do their own loan modifications.

Last February President Obama signed into law the Homeowner Affordability and Stability Plan. The plan is intended to help keep people in their homes by reducing the foreclosure rate.

If either Freddie Mac or Fannie Mae is your loan provider you may be able to refinance your mortgage and qualify for a fixed-rate and low-interest loan if you've been making your payments and do not have negative equity. If these companies do not control you loan you may still be able to reduce your monthly payments if your financial situation has recently changed through no fault of your own.

People often wonder what incentive mortgage companies have to alter the terms of their existing loans. As usual, it all comes back to money. While mortgage companies do not have to participate in the mortgage modification program, they'll likely lose out in the long run if they don't. The reason is that the new plan makes it harder for a loan provider to make more money from a foreclosure sale than a typical mortgage modification plan.

In addition, mortgage companies must participate in the new plan if they plan to receive any federal bailout money.
Lastly, further incentives were put into the plan for mortgage companies who work to eliminate second and third mortgages on the same property. This reduction of the total number of liens can avert foreclosure by making the home loan more affordable.

Continue reading "Does the Obama Plan work for you ?" »

Being a Bankruptcy Attorney in San Francisco I often deal with issues revolving lost house values, spiked mortgage payments and lenders that are not willing to negotiate a loan modification.

Some encouraging news has recently buoyed hopes that our nation's housing market is stabilizing somewhat. This would be welcome news as home prices have fallen nearly one-third for the nation as a whole and much more than that in states like California and Nevada.

Perhaps the most important green shoot is the recent gain in the S&P/Case-Shiller index. This index tracks home prices in cities across the nation and it recently rose for the first time in 34 months.

However, many analysts feel that the green shoots we're seeing will be trampled on by an array of negative economic factors in the months to come. These include a still-rising unemployment rate and the persistent lack of available credit.

San Francisco Bankruptcy Lawyer

But perhaps the most daunting problem our economy faces is the rising foreclosure rate. Today, almost one in four houses sold is a seized property. And now most people facing foreclosure are prime borrowers as opposed to people who received sub-prime mortgage loans.

Lastly, the percentage of under-water homeowners (those whose mortgages exceed the estimated value of their property) is hovering around 25% nationwide. In some places the ratio is much higher. This is particularly worrisome as negative-equity acts as a double whammy: it reduces demand by discouraging people from selling their homes and depresses prices since it increases the percentage of seized properties.

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As a loan modification lawyer in the Bay Area we deal with many banks to modify our client's loans on a daily baisis.

We do Loan Modificaitons, Short Sales and Bankruptcy Law

In today's post we'll continue to examine the concept of the bankruptcy estate and the kinds of property that are included in your bankruptcy estate (the property which is subject to the court's control once you file for bankruptcy).

With a few exceptions, all personal property you acquired before filing for bankruptcy becomes part of your bankruptcy estate. Unless a property exemption covers these assets the trustee assigned to your case is within his or her rights to sell these assets and give the proceeds to your creditors.

In general, however, the property which you acquire after filing for bankruptcy is yours to keep. But there are a few exceptions to this rule. Here are three types of property that will be considered part of your bankruptcy estate if you acquire them within 180 days of filing:

1) Property gained through an inheritance
2) Proceeds from a life insurance policy
3) Property gained through a divorce settlement

If you acquire property that falls into one of these categories within 180 days of filing for bankruptcy you'll have to file a supplemental form with the bankruptcy court. This holds true regardless of whether your case has already been decided.

Continue reading "Loan Modification Law Firm in San Francisco" »