Why Loan Modification?
为什么修改房屋贷款？
» Reduce your loan balance (Principle Reduction)
减少你的贷款余额（本金减少）
» Lower your monthly payments
降低你的每月付款额
» Lower your interest rate
降低你的利率
» Fix your adjustable rate
固定你的浮动利息
» Waive negatively accrued interest
取消逆增长利息
» Grant extensions on payments
准予支付延期
» Re-amortize loan to include past due payments
重新安排分期偿还贷款包括过期付款
» Avoid Foreclosure
避免银行强行收购
» SAVE YOUR HOME
为你的家庭提供保障
If you are currently experiencing a hardship making your monthly payments to your mortgage company, take the time to read through our Loan Modifications webpages. Read more about how the loan modification services provided by The Law Office of Joshua L. Harmon can help you. Our Loan Modifications section of our website includes recent updates about the FHA changes (HPDP Press Release), Assembly Bill 149 (State of Nevada, foreclosure Law changes), Assembly Bill 152 (State of Nevada, rules for being a Loan Modification Consultant) and an ongoing list of changes that are being experienced during this mortgage crisis. Throughout 2009, there have been many changes in this industry and a lot of fluctuation in how lenders have been participating in loan modifications and various government programs. There is also a section in our loan modification area where you can download the required Loan Modification Forms.
如果每月偿还房屋贷款困难，那就请浏览一下“修改房屋贷款”（Loan Modifications）网页。约书亚．哈蒙律师事务所为你提供如何修改房屋贷款的更多的服务。网页中“修改房屋贷款”部分包括ＦＨＡ修改（ＨＰＤＰ新闻稿），立法案１４９条（内华达州银行拍卖屋权法律修改），立法案１５２条（内华达州正在修订的修改房屋贷款规定）和抵押危机期间一系列变化。2009年在这个领域中参与放款和多种政府项目中如何贷款已有很多变化和波动。可以在修改房屋贷款部分下载“修改房屋贷款表格”。
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Car Accidents
汽车事故 Traumatic Brain Injury (TBI)
脑外伤 Slip and Fall
滑倒
Motorcycle Accidents
摩托车事故 Spinal Cord Injury
脊髓损伤 Animal Attacks
动物攻击
Truck Accidents
卡车事故 Paralysis
中风 Defective Products
不良品
Bike Accidents
自行车事故 Wrongful Death
非正常死亡 Home Injuries">Birth and Nursing Home Injuries

Pedestrian Accidents
行人事故 Dui accidents
酒后驾车事故 出生和幼儿护理伤害
WE SPECIALIZE IN PERSONAL INJURY
精通人身伤害
“Clients are the lifeblood of any law firm. You will speak directly with an attorney in all phases of your case. You deserve nothing less.” -Joshua Harmon
“顾客是律师事务所的生命线。把所有的问题都直接告诉律师。您将享受到优质服务。”――约书亚．哈蒙
“Accidents and injuries can throw your life into turmoil. You will likely suffer pain, miss work, incur medical expenses, need transportation, and have countless unanswered questions. Let me answer your questions and work towards getting you the maximum compensation for your injuries.” – Joshua Harmon
事故和伤害会让人陷入困境，遭受痛苦，失去工作，承担高额的医疗费用，增加交通开支，还有数不清难以回答的问题。让我们来帮您，让您在伤害中获得最大的补偿。――约书亚．哈蒙
Recent Results:
最近的结果：
Motor Vehicle Accident – 350,000
机动车事故取得索赔—350，000
Motor Vehicle Accident – 200,000
机动车事故取得索赔—200，000
Dog Bite – 98,000
狗咬伤取得索赔—98，000
Motor Vehicle Accident – 100,000
机动车事故取得索赔—100，000
Motor Vehicle Accident – 50,000 (policy limit)
机动车事故取得索赔—50，000（保险限制）
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The Law Office of Joshua L. Harmon specializes in providing services for people who are interested in filing Chapter 7 or Chapter 13 bankruptcy in Nevada or Arizona. There are many reasons that finally bring people to the decision to file Bankruptcy:
约书亚．哈蒙律师事务所精通内华达州和亚利桑那州破产第7章和第13章的内容，为大众提供服务。有很多原因会迫使人们申请破产。
» Medical Bills医疗账单
» Judgments 审查
» Wage Garnishments扣发工资
» Credit Card Debt信用卡债务
» Mortgage Debt抵押债务
» Stop Foreclosure阻止银行强行收购住房
A Chapter 7 Bankruptcy is the liquidation of all your debts without the necessity of having to make payments on a monthly basis. Your case is filed and completed in approximately 90-120 days. Chapter 7 is filed when there is no money leftover to pay creditors such as your credit cards each month. You may file for Chapter 7 bankruptcy every eight years, measured from the date of the earlier bankruptcy filing. For example, if you filed on August 1, 2000, you will not e able to file again until August 2, 2008.

破产法的第七章是有关不需要每月支付的债务结算。申请案例将在90至120天完成。申请第七章的条件是申请人已无余额支付给债权人。每8年允许申请一次第七章。如在2000年8月1日申请，下一次申请时间最早为2008年8月2日。
Under The Bankruptcy Reform and Consumer Protection Act of 2005-what we will simply refer to it as the “new law”, you must pass the “means test” in order to qualify for Chapter 7 bankruptcy. Failure to pass this test may result in the need to file Chapter 13 Bankruptcy. Chapter 13 Bankruptcy is commonly entitled Adjustment of Debts of an Individual With Regular Income. Chapter 13 Bankruptcy will result in a repayment plan for 3-5 years, wherein you make payments to the Bankruptcy Trustee. Upon completion of the 3-5 years or repayments, all of the debts being surrendered will be discharged. To learn more about the difference between Chapter 7 and Chapter 13 please visit the Bankruptcy section of our website. You will also find a list of items that may qualify as exemptions in Bankruptcy.
根据2005年破产修正法和消费者保护法（我们称之为“新法”），申请人必须通过“收入评估”方有资格申请破产第七章。如果没有通过收入评估，只能申请破产第十三章。该章用于调整有正常收入个人的债务。根据该章，可以制定一个3至5年的重新还款计划以支付给破产受托人。3至5年还款之后，所有放弃的债务将取消。详情请登陆本公司网站。你还能找到免除破产的细则条款。
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Criminal | DUI | TRAFFIC
犯罪、酒后驾车、交通事故
Do not face any court, the police, or an insurance company alone – get The Law Office of Joshua L. Harmon on your side. Call today to schedule a Free consultation to speak personally with an experienced Las Vegas speeding ticket lawyer.
无需您到庭，去应付警察、保险公司，约书亚．哈蒙律师事务所会为您办理这些事务。现在起打电话约定日期会有经验丰富的超速罚单律师亲自为您免费咨询。
Q. Free consultation? What is the catch?
免费咨询？
There is no catch. There are no strings attached. There are no hidden fees. No obligations.
没有附加条件。没有隐藏的费用。没有约束。

Reasons to hire an attorney to handle your traffic tickets
请律师解决您的交通罚单的理由
» Unemployment (if you drive professionally the accumulation of points can jeopardize your license/job)
失业（如果你驾驶违章积累到一定点数会危及到你的驾照和工作）
» Arrest Warrants (if you fail to answer traffic ticket on time, some courts will issue warrant)
拘留（如果未能及时回复交通罚单，法庭就会给你发传票）
» Points added to your license (accumulation of points can cause suspension or revocation of license)
点数增加可能会吊销和收回你的驾照
» Higher Insurance payments (citations make you a greater risk to insurance companies, and cause an increase in insurance rates)
支付高额保险（传票使你在保险公司有更大的风险，保险公司会提高你的保险费率）
» Driver’s license suspension/revocation(accumulation of points has consequences)
» Wasting valuable time in court
驾照暂时吊销/收回（点数积满的最后结果）
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The Sobering Reality of DUI Charges and Consequences
酒后驾车的指控和后果
» Jail – Incarceration
监禁—入狱
» Job loss
失去工作
» Loss of driver’s license
驾照吊销
» Insurance coverage issues
保险责任范围
» Vehicle impound, impound costs
车辆扣留，扣留费用
» Probation
察看
» Community Service
社区服务
» Alcohol education, treatment and assessment
酒后驾车的教育、治疗和评价
» Restricted interstate or international travel
州际和国际旅行的限制
Attorney Joshua Harmon will diligently gather the necessary documentation, apprise you of his legal opinion, and represent you against your adversaries. Mr. Harmon will return your phone calls promptly and offers a free consultation.
约书亚.哈蒙律师坚持不懈地为当事人收集证据，告知当事人对方法律意见，代表当事人打败其对手。哈蒙先生会及时给您回电话提供免费咨询。
loan modification, dui, criminal, bankruptcy, Josh Harmon, las vegas, Joshua L Harmon, attorney, personal injury, car accident, car wreck, auto attorney. Resources
修改房屋贷款，酒后驾车，刑事犯罪，破产，乔希.哈蒙，拉斯维加斯，约书亚.哈蒙，律师，人身伤害，汽车事故，汽车残骸，汽车律师。资源

Modificación de préstamos
Devolución de anticipo, explicada al final*
¿Porque Modificar su préstamo?
• Reducir el balance del préstamo (reducción del principal)
• Disminuir sus pagos mensuales
• Disminuir la tasa de interés de su préstamo
• Componer la tasa de interés variable
• Obtener extensiones en sus pagos
• Amortizar su prestamos para incluir pagos vencidos
• Evitar reposesión del la propiedad (Foreclosure)
• Salvar su casa
Si está experimentando dificultad para realizar los pagos mensuales a su hipoteca, tómese el tiempo de leer a travez de nuestra página de modificación de préstamos e informarse de los servicios que la oficina legal de Joshua L. Harmon le puede ofrecer. Nuestra página de modificaciones de préstamo, incluye actualizaciones recientes acerca de los cambios FHA (comunicado de prensa HPDP), El proyecto de ley de la asamblea 149 (cambios en las leyes de reposesión en el estado de Nevada), El proyecto de ley de la asamblea 152 (regulaciones para ser un consultor de modificaciones de préstamo), y una extensa lista de cambios que se han experimentado durante la crisis hipotecaria a lo largo del 2009, ha habido muchos cambios en esta industria así como fluctuaciones en la manera en que los prestamistas han estado participando en varios programas de gubernamentales y de modificación de crédito. También contamos con una sección en la cual usted puede descargar todas las formas requeridas para el proceso de modificación de crédito.

Lesiones Personales
Seleccione alguna de las siguientes categorías para obtener mayor información

Accidente Automovilístico Traumatismo Cerebral Resbalones y caídas
Accidente de motocicleta Lesiones de la medula espinal Ataques de animales
Accidente de Camión Parálisis Productos defectuosos
Accidente de Bicicleta Muerte por negligencia Lesiones en nacimiento
Accidente Peatonal Accidentes bajo la influencia de sustancias (DUI)

Nos especializamos en lesiones personales
“Los clientes son la sangre vital de cualquier firma legal, Usted hablara directamente con un abogado durante todas las fases de su caso, usted no se merece menos” –Joshua Harmon
“Las lesiones y los accidentes pueden tornar su vida en un caos. Usted podría sufrir dolor, perder su trabajo, incurrir en gastos médicos, requerir transporte, y tener un sinfín de preguntas sin resolver. Permítame responder sus preguntas y trabajar con usted para obtener la máxima compensación por sus lesiones.” –Joshua Harmon
Resultados Recientes:
Accidente Vehicular: 350,000
Accidente Vehicular: 200,000
Mordedura de perro: 98,000
Accidente Vehicular: 100,000
Accidente Vehicular: 50,000 (limites de póliza)

 Bancarrota
La oficina legal de Joshua L. Harmon, se especializa en proveer servicios a personas que están interesada en presentar en capitulo 7 o el capítulo 13 de bancarrota en Nevada o Arizona. Hay una infinidad de razones por las cuales las personas deciden presentar bancarrota:
• Cuentas medicas
• Sentencias
• Embargo Salarial
• Deudas de tarjetas de crédito
• Deudas hipotecarias
• Detener ejecución de hipotecas (Foreclosure)
El capítulo 7 de bancarrota es la liquidación de todas sus deudas si la necesidad de realizar pagos mensuales. Su caso es presentado y completado en aproximadamente entre 90-120 días.
El capitulo 7 es presentado cuando no queda dinero disponible para pagar a los acreedores como sus tarjetas de crédito cada mes. Usted puede presentar bancarrota en el capítulo 7 cada 8 años, a partir de la fecha en q se presento la bancarrota anterior. Por ejemplo, si usted presento bancarrota en Agosto 1,2000, no podrá presentar bancarrota otra vez hasta Agosto 2, 2008.

Mediante la Reforma de bancarrota y la Ley de Protección al Consumidor del 2005- a al cual simplemente nos referiremos como “la nueva ley”, usted debe ser aprobado mediante una “prueba de medios” para calificar para el capítulo 7 de bancarrota. Si usted no es aprobado en dicha prueba será necesario presentar en capítulo 13 de bancarrota, comúnmente llamado, Ajuste de deudas de una persona con ingresos regulares.
El capítulo 13 de bancarrota resultara en un plan de pagos durante un periodo de 3 a 5 años, en el cual se realizan los pagos al fiduciario de la bancarrota. Una vez terminado dicho periodo o los pagos programados, el remanente de la deuda será eliminado. Para entender mejor las diferencias entre el capitulo 7 y el capitulo 13, por favor visite la sección de bancarrota en nuestra página web. También encontrara una lista de elementos que pueden calificar como prerrogativas en el caso de presentar una bancarrota.

Penal, DUI, Tráfico

No enfrente ninguna corte, policía o una compañía de seguros solo. Tenga a la oficina legal de Joshua L. Harmon a si lado. Llámenos hoy para programar una consulta gratis, y para hablar personalmente con un abogado especializado en infracciones de velocidad.

¿Consulta Gratis? ¿Cual es el riesgo?
No hay ningún riesgo, No hay ninguna condición, No hay cargos ocultos ni obligaciones.
Razones para contratar un abogado que maneje su caso de multas de tráfico.
• Desempleo (si usted maneja profesionalmente, la acumulación de puntos puede poner en peligro licencia y su trabajo)
• Orden de Arresto (Si usted no responde a alguna multa de tráfico a tiempo, algunas cortes pueden emitir una orden de arresto)
• Puntos añadidos a su licencia (la acumulación de puntos puede causar la suspensión o revocación de su licencia de manejo)
• Pagos de seguro elevados (Multas de tráfico, lo convierten en un riesgo para las compañías de seguros, y causan un incremento en los costos de esta)
• Suspensión o revocación de su licencia de manejo (la acumulación de puntos tiene consecuencias)
• Pérdida de tiempo valioso en cortes.

La triste realidad de los cargos y las consecuencias de manejar bajo influencia de sustancias (DUI)
• Cárcel-Encarcelamiento
• Pérdida de empleo
• Perdida de su licencia de manejo
• Problemas con la cobertura de su seguro
• Incautación del vehículo, costos de incautación
• Emisión de un dispositivo de bloqueo
• Libertad condicional
• Servicio comunitario
• Educación, tratamiento y evaluación del Alcohol
• Restricción de viajes interestatales o internacionales

El abogado Joshua Harmon se encargara de reunir la documentación necesaria, y le informara su opinión jurídica para representarlo contra sus adversarios. El Sr. Harmon le regresara sus llamadas telefónicas rápidamente y le ofrecerá consultas gratis.
Modificación de préstamo, DUI, Penal, Bancarrota, Josh Harmon, las vegas, Joshua L. Harmon, abogado, Lesiones Personales, accidente automovilístico, abogado de automóviles. Recursos

Answers trickled in Tuesday for homeowners with loans from shuttered lender Taylor, Bean & Whitaker Mortgage Corp.

But long wait times on phone lines and conflicting responses to questions underscore the broader confusion that prevails among borrowers seeking guidance after privately held Taylor Bean, one of the largest independent home-loan providers in the U.S., abruptly closed its mortgage-lending operation Wednesday.

Bank of America Corp. is taking over the servicing of all Taylor Bean mortgages that are backed by the Federal Housing Administration.

The U.S. Department of Housing and Urban Development posted a document on its Web site Tuesday outlining courses …

Bank of America – 1-800-669-6607 (If you are a previous TB&W customer transfering)

Source: http://online.wsj.com/article/SB125003115268123973.html

* DoJ probe related to mortgage warehouse unit

* May be placed under FDIC receivership

* Co says will cooperate with investigations

* Shares fall as much as 23 pct (Recasts, adds details, background, updates share movement)

By Sweta Singh and Anurag Kotoky

BANGALORE, Aug 7 (Reuters) – Colonial BancGroup Inc (CNB.N) said it faces a criminal probe by the U.S. Department of Justice (DoJ) related to accounting irregularities at its mortgage lending unit, and the struggling lender warned it may be put under receivership.

In a regulatory filing, the company said the Alabama State Banking Department may appoint the Federal Deposit Insurance Corp as receiver or conservator for its banking unit after Aug. 12.

Earlier this week, the agency that investigates misuse of U.S. banking bailout money raided Colonial’s mortgage warehouse lending division in Orlando, Florida.

The U.S. Securities and Exchange Commission also issued subpoenas to the company seeking disclosures related to its participation in the U.S. Treasury Department’s Troubled Asset Relief Program (TARP) and its accounting for loan-loss reserves.

Colonial announced in December that it was to receive $550 million in TARP money. Shareholders subsequently filed a class action lawsuit accusing Colonial of failing to disclose that the TARP money was contingent on the company raising $300 million in private financing.

Taylor, Bean and Whitaker Mortgage Corp, the 12th-largest U.S. mortgage lender, had offered $300 million to help keep the troubled Montgomery, Alabama-based lender afloat, but the agreement fell apart last week.

In the following week, Taylor Bean shut down its mortgage lending operations after the Federal Housing Administration barred it from making loans that the agency insures. The DoJ’s allegations of irregularities relate to more than one year’s audited financial statements and regulatory financial reporting, Colonial said in the regulatory filing.

Colonial said it intends to cooperate with the investigation.

The company operates 355 branches in Florida, Alabama, Georgia, Nevada and Texas and has over $25 billion in assets. If it fails, it would be the largest failure this year.

The company said it continues to explore all possible capital-raising alternatives to comply with the regulatory orders.

Colonial did not immediately return calls seeking comments. The State of Alabama Banking Department and the FDIC, which insures deposits of up to $250,000 per account, declined to comment.

In June, the banking unit had agreed to a cease-and-desist order with regulators, requiring the bank to increase capital levels and reduce problem assets, among other things.

The company has been badly battered by the credit crisis, as higher charge-offs and rising foreclosures in the bank’s Florida construction-loan portfolio continue to strain its balance sheet.

The company’s shares, which have lost 90 percent of their value in the past year, were down 19 percent at 57 cents in morning trade on the New York Stock Exchange. The stock traded as high as $13 in September last year. (Additional reporting by Karey Wutkowski in Washington; Editing by Mike Miller and Deepak Kannan)

Source: http://www.reuters.com/article/rbssBanks/idUSBNG43390620090807?pageNumber=2&virtualBrandChannel=0

NEW YORK, Aug 11 (Reuters) – Lawyers for Taylor, Bean & Whitaker Mortgage Corp, the 12th-largest U.S. mortgage lender, said in court papers last week that a “bankruptcy filing is imminent” for the lender after it was forced to shut down mortgage lending operations.

In court papers filed on Aug. 6, in U.S. District Court for the Northern District of West Virginia, lawyers for Taylor Bean said that due to recent actions taken against the company by the U.S. Department of Housing and Urban Development, and mortgage financiers Freddie Mac (FRE.N) and the Government National Mortgage Association (Ginnie Mae), the company is expected to file for bankruptcy shortly.

The Federal Housing Administration said last week it had barred the Ocala, Florida-based company from making loans that the agency insures, for having failed to submit a required annual financial report and “misrepresenting” its dealings with an auditor that had discovered “irregular transactions that raised concerns of fraud.” [ID:nN04190527]

The lawyers, from the law firm Steptoe & Johnson, had made the statement in a request to halt a civil litigation proceeding saying that the company’s lawyers had “received word that a bankruptcy filing is imminent.”

Taylor Bean ceased mortgage lending operations on Aug. 5.

Taylor Bean made $17 billion of mortgage loans from January to June for a 1.7 percent share nationwide, according to Inside Mortgage Finance. It is one of the largest U.S. home loan providers not owned by a large bank and thus lacks large amounts of deposits that could help cushion market turmoil.

The Wall Street Journal reported on Tuesday that an internal email at Taylor Bean dated Aug. 10, referred to a new computer folder “to assemble all of our bankruptcy detailed spreadsheets.”

A Taylor Bean executive was not immediately available to comment on Tuesday. The voicemail for a company spokeswoman said she no longer works at the firm. (Editing by Lincoln Feast)

source: http://www.reuters.com/article/bankruptcyNews/idUSN1154974520090812

In a statement, the FHA also said the Government National Mortgage Association, better known as Ginnie Mae, was ending Taylor Bean’s right to participate in its mortgage-backed securities program, and would take control of the closely-held firm’s nearly $25 billion Ginnie Mae portfolio.

The FHA also said it planned to sanction two top executives at Ocala, Florida-based Taylor Bean for providing false information to the agency.

Tuesday’s sanctions were announced a day after federal agents associated with the special inspector general for the government’s Troubled Asset Relief Program (TARP) searched a Colonial office in Orlando, Florida. The Ocala Star-Banner reported a separate search at Taylor Bean’s office in Ocala.

A Taylor Bean spokeswoman did not immediately return a call seeking comment. The company was the 12th-largest U.S. mortgage provider in 2008, the newsletter Inside Mortgage Finance said.

According to the FHA, Taylor Bean was sanctioned because it failed to submit a required annual financial report, and “misrepresented” that there were no unresolved issues with an independent auditor.

That auditor had in fact discovered “irregular transactions that raised concerns of fraud,” the FHA said.

“There is a very clear message that should be heard throughout the FHA lending world: operate within our standards or we won’t do business with you,” Shaun Donovan, the secretary of housing and urban development, said in a statement.

Colonial is a Montgomery, Alabama-based lender with about $25.5 billion of assets and 355 branches in Alabama, Florida, Georgia, Nevada and Texas.

Last week the bank said it concluded there was “substantial doubt” about its ability to continue as a going concern.

It cited a possible capital shortfall that could leave it out of compliance with “cease and desist” orders imposed by the Federal Reserve, the Federal Deposit Insurance Corp and the State of Alabama.

The $300 million Taylor Bean investment could have helped Colonial obtain $550 million in federal aid from TARP. (Reporting by Jonathan Stempel; Editing by Valerie Lee)

Source: http://www.reuters.com/article/americasRegulatoryNews/idUSN0419052720090805

MIAMI (Reuters) – Federal agents working with the U.S. Treasury’s Troubled Asset Relief Program (TARP) executed search warrants at two Florida banks on Monday and Colonial Bank (CNB.N) said one of them was its office in Orlando.

A spokeswoman for the Alabama-based bank told Reuters a warrant had been served at the bank’s Orlando location but could not say what was the target of the warrants.

“The bank is cooperating,” Colonial Senior Vice President Merrie Tolbert told Reuters by telephone. “Colonial continues to operate as usual. This search warrant has no impact on our day-to-day retail and commercial banking operations.”

A spokeswoman with the office of the Special Inspector General for the Troubled Asset Relief Program, which buys assets from troubled financial institutions to stabilize the banking industry, would only say that its agents executed two search warrants in Florida on Monday.

“Due to the nature of the ongoing investigation we cannot provide any further information,” the agency said in a news release.

FBI agents joined the search but declined to comment.

Tolbert could not confirm local media reports that the second warrant was executed at a bank branch in the central Florida town of Ocala.

Shares of parent company Colonial BancGroup Inc plunged 18 percent on Monday after it had said on Friday that a key $300 million investment from Taylor, Bean & Whitaker Mortgage Co had fallen through, raising doubts about its survival.

Colonial BancGroup, which last month was issued a cease-and-desist order by the regulators, said it was exploring strategic capital alternatives, including a sale or merger of the company.

The shares have lost more than 90 percent of their value in the past year.

Colonial BancGroup operates 355 branches in Florida, Alabama, Georgia, Nevada and Texas and has more than $25 billion in assets. Its failure would be the largest this year.

(Editing by Pascal Fletcher and Maureen Bavdek)

Source: http://www.reuters.com/article/hotStocksNews/idUSTRE5724PT20090803

WASHINGTON – Today, the Obama Administration released its first monthly Servicer Performance Report detailing the progress to date of the Making Home Affordable (MHA) loan modification program.  The purpose of the report is to document the number of struggling homeowners already helped under the program, provide information on servicer performance and expand transparency around the initiative.

On February 18, the Obama Administration announced its comprehensive plan to stabilize the U.S. housing market.  Two weeks later on March 4, the Administration published detailed program guidelines and authorized servicers to begin modifications immediately.  MHA provides $75 billion for sustainable mortgage modifications through the Home Affordable Modification Program (HAMP). 

MHA has made rapid progress in a few short months.  Servicers covering more than 85 percent of loans in the country are already modifying loans under the program. More than 400,000 modification offers have been extended and more than 230,000 trial modifications have begun.  This pace of modifications puts the program on track to offer assistance to up to 3 to 4 million homeowners over the next three years, our target on February 18.  

Today’s report discloses performance on a servicer-by-servicer basis in order to increase transparency for participating institutions.  The data show that servicer performance has been uneven.  The Administration has asked servicers to ramp up implementation to a cumulative 500,000 trial modifications started by November 1, 2009. This would more than double in three months the number of trial modifications started in the first five months of the program.   

The Administration is taking additional steps to improve performance.  On July 9, Treasury Secretary Tim Geithner and Housing and Urban Development Secretary Shaun Donovan wrote the CEOs of participating servicers calling upon them to redouble their efforts to increase staffing, improve borrower response times and streamline the application process.  Senior Administration officials discussed the importance of these steps in a face-to-face meeting with servicer executives on July 28.  The Administration will develop more exacting metrics to measure the quality of borrower experience, such as average borrower wait time for inbound inquiries, completeness and accuracy of information provided applicants, and response time for completed applications.  As an additional protection for borrowers, the Administration has asked the program compliance agent, Freddie Mac, to develop a “second look” process to audit MHA modification applications that have been declined on an ongoing basis.

.      Program On Pace to Help up to 3-4 Million Homeowners Over the Next Three Years

• More Than 230,000 Trial Modifications Started
  No program has previously attempted to modify so many mortgages at such affordable terms for borrowers.  The Administration is seeing real results – modifications that provide long-term solutions for borrowers.

•  
  • In 2008, 42 percent of modifications by the largest servicers lowered monthly payments.  Under the MHA modification program, 100 percent of borrowers starting trial modifications have had their payments reduced.
• More Than 85 Percent of Mortgage Market Covered by Participating Servicers
  • Thirty-eight servicers have signed Servicer Participation Agreements (SPAs) to participate in the program.  These 38 servicers service many types of loans, including Fannie Mae and Freddie Mac loans, private label loans and loans in portfolio.
  • Approximately 2300 servicers that service Fannie Mae and Freddie Mac loans are automatically participating in HAMP. 

.      Performance Metrics Aimed at Improving Consistency of Servicer Performance

• Description of Metrics Used to Measure Servicer Performance
  The Administration has established a servicer-by-servicer performance metric to enhance overall program performance.
  • The report includes the absolute number of trial modifications begun by each servicer. 
  • The report also includes a simple performance metric which measures each servicer’s performance relative to an estimate of the servicer’s HAMP eligible loans.
    • The performance metric used in the report is trial modification starts as a share of estimated HAMP eligible loans. 
    • Many loans are eligible for HAMP that are not included in the estimated HAMP eligible loans in the public report, including current borrowers in imminent default.
    • This measure of estimated HAMP eligible loans was developed solely to provide a common denominator across which to compare performance of servicers. 
• Servicer Performance Metrics Show Uneven Progress in Implementation

The metric measuring comparative servicer performance shows uneven ramp-up, and substantial variation in the pace of modifications.  To improve performance, the Administration has asked servicers to commit to starting 500,000 trial modifications by November 1, 2009 and to establishing exacting metrics to monitor servicer specific program performance.

.      Public Report Increases HAMP Program Transparency

Today’s report will provide transparency into program results on a servicer specific basis. 

• Reports Will Be Issued on a Monthly Basis
  The Administration expects to issue reports detailing the progress of modifications under the HAMP program each month. This report will be updated to include additional metrics and results as the program progresses and more data becomes available.

http://www.treas.gov/press/releases/docs/MHA_public_report.pdf (PDF Download)

Source: http://www.makinghomeaffordable.gov/pr_08042009.html

The motivating factor in Assembly Bill 149 is the added provision requiring all Trustee Sale notices to now have the accompaniment of a request/waiver for mediation. This mediation will provide an avenue to promote dialogue between lenders and troubled homeowners struggling to pay their mortgages. Consumers are encouraged to attend mediation and obtain proper counsel before attending. The proper preparation of your financial standing will greatly assist you in having a much more efficient and beneficial mediation.

MORTGAGE CRISIS EVENTS – SUMMER 2009

  
Accredited Home Lenders
(877) 273-4599 (CA) 8 a.m.-5 p.m. PST, Monday-Friday; (866) 307-0315 (FL) 11 a.m.-8 p.m.
English and Spanish
  http://www.accredhome.com 
American Home Mortgage Servicing, Inc. (acquired Option One Mortgage Corp)
(877) 304-3100 7 a.m.-9 p.m. CST, Monday-Friday, 7 a.m.-1 p.m. CST, Saturday
  http://ahmsi3.com/servicing/home.asp
 
Ameriquest Mortgage (see Citi Residential Lending)
(800) 430-5252 6 a.m.-5 p.m. PST, Monday-Friday
  http://www.mycitiresidentialloan.com
 
Aurora Loan Servicing
(866)-521-3828 8 a.m.-4 p.m., Monday-Thursday, 8 a.m.-4 p.m. Saturday
All languages
  http://www.myauroraloan.com 
Avelo Mortgage LLC
(866) 992-8356 7 a.m.-10 p.m. CST, Monday-Thursday, 7 a.m.-6 p.m. CST, Friday
English and Spanish
 
 http://www.avelomortgage.com

 
Bank of America
(800) 846-2222, 8 a.m.-9 p.m., Monday-Friday (Collections)
English and Spanish
  http://www.bankofamerica.com
(select Service My Mortgage or Payment Counseling)
 
BB&T Mortgage
(800) 827-3722
8:30 a.m.-7 p.m., Monday-Thursday
8:30 a.m.-6 p.m., Friday
All languages   http://www.bbandt.com/mortgages.com 
Central Pacific Bank
(800) 342-8422 7:30 a.m.-7 p.m., Monday-Friday, 9 a.m.-5 p.m., Saturday
Hawaii, English
  http://www.centralpacificbank.com

 
Charter One Mortgage (see COO Mortgage)
(800) 234-6002
9 a.m.-5 p.m., Monday-Friday
English and Spanish   http://www.coomortgage.com

 
Chase Home Finance
(800) 848-9136 (customer service) 8 a.m.-9 p.m., Monday-Friday; (800) 446-8939 (prime loan loss mitigation) 8 a.m.-9 p.m., Monday-Friday; (800) 854-4613 (subprime loss mitigation) 8 a.m.-9 p.m., Monday-Friday
Spanish and English
  http://www.chase.com
 
Chase Home Finance – NJ
(800) 446-8939
8 a.m.-9 p.m., Monday-Friday
English and Spanish   http://chasehomemortgage.com 
Chevy Chase Bank
(800) 933-9100 8:30 a.m.-4:30 p.m., Monday-Friday, (customer service); (301) 939-4087 7:30 a.m.-4:30 p.m., Monday-Friday (loss mitigation) All languages   http://www.chevychasebank.com/htm/mortgages.html
 
CitiMortgage – Prime Loans
(866) 272-4749, (loss mitigation) 7 a.m.-4 p.m. CST, Monday-Friday; (800) 723-7906, (collections) 6 a.m.-11 p.m.CST, Monday-Friday, 9 a.m.-1 p.m.CST, Saturday, 5 p.m.-9 p.m. CST Sunday; (800) 667-8424, (refinance) 7 a.m.-8 p.m. CST, Monday-Friday, 8 a.m. 2 p.m. CST, Saturday
Spanish and English
  http://www.citimortgage.com

 
Countrywide Financial-California
(800) 669-0102
8 a.m.-5 p.m., Monday-Friday; 8 a.m.-12 p.m. Saturday
English and Spanish
  http://www.countrywide.com
 
Countrywide Home Loans
(877) 744-7691
8 a.m.-9 p.m. CST, Monday-Thursday
Spanish and English
  http://www.countrywide.com 
Downey Financial Corp.
(800) 824-6902, ext. 6696, 8:30 a.m.-4:30 p.m. PST, Monday-Friday
English and Spanish   http://www.downeysavings.com/hl
 
EMC Mortgage Corp.
(888) 609-2379
5 a.m.-9 p.m., Monday-Friday, 5 a.m.-2 p.m., Saturday
English and Spanish   http://www.emcmortgagecorp.com/emcccn/faq/faq.isp

 
Equity One (now Popular Mortgage Servicing Inc.)
(800) 664-1325 8 a.m.-5 p.m.
English and Spanish
  http://www.popularmsi.com
 
EverHome Mortgage
(800) 669-7724
8:30 a.m.-5:30 p.m., Monday-Friday
Spanish and English
  http://www.everbank.com 
First Franklin
(800) 622-5035
8:00 a.m.-10:00 p.m., Monday-Friday
  http://www.viewmyloan.com
 
First Horizon Home Loans
(800) 919-5376, 8 a.m.-5 p.m., Monday-Friday
English and Spanish
  http://www.firsthorizon.com/loans.home.cfm 
Flagstar Bank
(800) 945-7700, ext. 9780 8:30 a.m.-5 p.m., Monday-Friday
All languages
  http://www.flagstar.com/lending/mortgage
 
Fremont Investment & Loan
(866) 484-0291
8:30 a.m.-6 p.m. PST, Monday-Friday
English and Spanish   http://www.1800fremont.com
 
GMAC Mortgage
(800) 850-4622
7 a.m.-11 p.m. CST, Monday-Thursday; 7 a.m.-6 p.m. CST, Friday; 8 a.m.-12 p.m. CST, Saturday
Spanish and English   http://www.gmacmortgage.com
 
Home Loan Services
(800) 622-5035
8 a.m.-10 p.m., Monday-Friday
 hls_hope@hls.ml.com  http://www.viewmyloan.com
 
Homecomings Financial
(800) 799-9250
7 a.m.-11 p.m. CST, Monday-Thursday; 8 a.m.-12 p.m.CST, Saturday
English and Spanish   http://www.homecomings.com/Resource_Center/ResourceCenter.html
 
HomEq Servicing
(866) 822-1471
8:30 a.m.-5:30 p.m. PST, Monday-Friday
English and Spanish   http://www.homeq.com
 
HSBC Mortgage Services
(800) 365-6730
8 a.m.-6 p.m., Monday-Friday
English and Spanish   http://www.hsbcmortgageservices.com
 
Indymac Bank
(877) 736-5556
8 a.m.-9 p.m., Monday-Friday
All Languages   http://www.indymacbank.com

 
Litton Loan Servicing
(800) 999-8501
8 a.m.-10 p.m. CST, Monday-Thursday, 8 a.m.-5 p.m. CST, Friday, 8 a.m.-12 p.m. CST, Saturday, 10 a.m.-2 p.m. CST, Sunday
All languages   http://www.littonloan.com
 
National City Home Loan Services
(800) 367-9305
8 a.m.-5 p.m., Monday-Friday
English and Spanish   http://www.nationalcity.com
 
National City Mortgage
(800) 367-9305,
8 a.m.-5 p.m.,
English and Spanish
  http://www.nationalcitymortgage.com 
Nationstar Mortgage
(888) 480-2432 ext. 3705
8 a.m.-8 p.m., CST, Monday-Friday
English and Spanish
  http://www.nationstarmtg.com
 
Nationwide Advantage Mortgage Company
(800) 356-9442, ext. 7366 and 7127, 8 a.m.-4:30 CST
 custserv@nationwide.com
 http://www.nationwide.com
 
New Century Financial (now Carrington Mortgage Services)
(800) 790-9502
7 a.m.-6 p.m. PST, Monday-Thursday, 7 a.m.-6 p.m. PST, Friday
English and Spanish
  http://www.carringtonms.com
 
NovaStar Financial
(888) 289-1231
English and Spanish
  http://www.novastarmortgage.com
 
NovaStar Mortgage Loan Resolution Department
(888) 743-0774
Non-English (888) 743-0774, ext. 4523
English and Spanish
 Loanresolution@novastar1.com  
Ocwen Financial Corp.
(877) 596-8580, 8 a.m.-9 p.m., Monday-Saturday
English and Spanish   http://www.ocwen.com
 
Ocwen Loan Servicing LLC
(866) 513-2947
English and Spanish
 rapidresolution@ocwen.com  http://www.ocwen.com 
Ohio Savings Bank (now AMTrust Bank)
(866) 476-0022 8 a.m.-10 p.m., Monday-Friday, 8 a.m.-12 p.m., Saturday, 12 p.m.-9 p.m., Sunday
Spanish English
  http://www.amtrust.com
 
PHH Mortgage
(800) 750-2518 8:30 a.m.-5 p.m., Monday-Friday
All Languages
 MBSlossmitigation@mortgagefamily.com  http://www.mortgagequestions.com
 
Prodovis Mortgage, LLC
(888) 878-0522 8 a.m.-5 p.m. CST, Monday-Friday
English, Spanish, Portuguese, French, Russian, Ukrainian
  http://www.prodovis.com
 
Regions Mortgage
(800) 748-9498
8 a.m.-8 p.m. CST, Monday-Thursday, 8 a.m.-6 p.m. CST, Fridays, 8 a.m.-12 p.m. CST, Saturday, English and Spanish
 Email your property address and telephone number to loancounselors@regions.com and a loan counselor will contact you
 http://www.regions.com/mortgage/payment_hardship.rf
 
Saxon Mortgage Services Inc.
(Previously Meritech Mortgage Services and CRAM Mortgage Services)
(888) 325-3502 7 a.m.-10 p.m., Monday-Friday
All Languages
 lossmit@saxonmsi.com  http://www.saxononline.com
(users log in to see workout options and financial plans) 
Select Portfolio Servicing
(888) 818-6032
7 a.m.-8 p.m. MT, Monday-Thursday, 7 a.m.-5 p.m. MY, Friday, 7 a.m.-11 a.m.MT, Saturday
English and Spanish
  http://www.spservicing.com

 
SunTrust Mortgage Inc.
(800) 443-1032
8 a.m.-10 p.m., Monday-Thursday, 8 a.m.-6 p.m., Friday, 8 a.m.-12 p.m., Saturday
English and Spanish
  http://www.suntrustmortgage.com 
U.S. Bank Home Mortgage
(800) 365-7900
8 a.m.-5 p.m. CST, Monday-Friday
All languages
  http://www.usbankhomemortgage.com
 
Wachovia Corporation
(866) 642-8608 8 a.m.-5:30 p.m., Monday-Thursday, 8:30 a.m.-4 p.m. Friday
Many languages
  http://www.wachovia.com 
Washington Mutual
(non performing loans)(866) 488-5449
8 a.m.-9 p.m. CST, Monday-Friday; (loss mitigation) 866-926-8937, 8 a.m.-9 p.m., Monday-Friday
All Languages
  http://www.wamuhomeloans.com 
Wells Fargo
(877)-216-8448
8:00 a.m.-10:00 p.m., Monday-Friday
9:00 a.m.-2:00 p.m., CST, Monday-Friday
English and Spanish
  http://www.wellsfargo.com
 
Wilshire Credit Corp
(888) 917-1050
7 a.m.-4 p.m. PST, Monday-Friday
Most languages
 wcc_hope@wcc.ml.com  http://www.wfsg.com

You are welcome to communicate with us via e-mail, however the transmission or receipt of any information through this web site is not intended to create an attorney-client relationship between any parties. Accordingly, there will be no attorney-client relationship created between you and the Law Office of Joshua L. Harmon, Esq. or any of its attorneys unless and until you have expressly requested to retain us and we have confirmed in writing our agreement to represent you, including the scope and terms of our relationship.

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If litigation is pursued on your behalf, you may have to pay the opposing party’s attorney fees and costs in the event of a loss.

Individual Debt Adjustment

The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income. (Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.)

a. Background
b. Advantages of Chapter 13
c. Chapter 13 Eligibility
d. How Chapter 13 Works
e. The Chapter 13 Plan and Confirmation Hearing
f. Making the Plan Work
g. The Chapter 13 Discharge
h. The Chapter 13 Hardship Discharge

——————————————————————————–

Background

A chapter 13 bankruptcy is also called a wage earner’s plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. If the debtor’s current monthly income is less than the applicable state median, the plan will be for three years unless the court approves a longer period “for cause.” (1) If the debtor’s current monthly income is greater than the applicable state median, the plan generally must be for five years. In no case may a plan provide for payments over a period longer than five years. 11 U.S.C. §1322(d). During this time the law forbids creditors from starting or continuing collection efforts.

This chapter discusses six aspects of a chapter 13 proceeding: the advantages of choosing chapter 13, the chapter 13 eligibility requirements, how a chapter 13 proceeding works, what may be included in chapter 13 repayment plan and how it is confirmed, making the plan work, and the special chapter 13 discharge.

Advantages of Chapter 13

Chapter 13 offers individuals a number of advantages over liquidation under chapter 7. Perhaps most significantly, chapter 13 offers individuals an opportunity to save their homes from foreclosure. By filing under this chapter, individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time. Nevertheless, they must still make all mortgage payments that come due during the chapter 13 plan on time. Another advantage of chapter 13 is that it allows individuals to reschedule secured debts (other than a mortgage for their primary residence) and extend them over the life of the chapter 13 plan. Doing this may lower the payments. Chapter 13 also has a special provision that protects third parties who are liable with the debtor on “consumer debts.” This provision may protect co-signers. Finally, chapter 13 acts like a consolidation loan under which the individual makes the plan payments to a chapter 13 trustee who then distributes payments to creditors. Individuals will have no direct contact with creditors while under chapter 13 protection.

Chapter 13 Eligibility

Any individual, even if self-employed or operating an unincorporated business, is eligible for chapter 13 relief as long as the individual’s unsecured debts are less than $336,900 and secured debts are less than $1,010,650. 11 U.S.C. § 109(e). These amounts are adjusted periodically to reflect changes in the consumer price index. A corporation or partnership may not be a chapter 13 debtor. Id.

An individual cannot file under chapter 13 or any other chapter if, during the preceding 180 days, a prior bankruptcy petition was dismissed due to the debtor’s willful failure to appear before the court or comply with orders of the court or was voluntarily dismissed after creditors sought relief from the bankruptcy court to recover property upon which they hold liens. 11 U.S.C. §§ 109(g), 362(d) and (e). In addition, no individual may be a debtor under chapter 13 or any chapter of the Bankruptcy Code unless he or she has, within 180 days before filing, received credit counseling from an approved credit counseling agency either in an individual or group briefing. 11 U.S.C. §§ 109, 111. There are exceptions in emergency situations or where the U.S. trustee (or bankruptcy administrator) has determined that there are insufficient approved agencies to provide the required counseling. If a debt management plan is developed during required credit counseling, it must be filed with the court.

How Chapter 13 Works

A chapter 13 case begins by filing a petition with the bankruptcy court serving the area where the debtor has a domicile or residence. Unless the court orders otherwise, the debtor must also file with the court: (1) schedules of assets and liabilities; (2) a schedule of current income and expenditures; (3) a schedule of executory contracts and unexpired leases; and (4) a statement of financial affairs. Fed. R. Bankr. P. 1007(b). The debtor must also file a certificate of credit counseling and a copy of any debt repayment plan developed through credit counseling; evidence of payment from employers, if any, received 60 days before filing; a statement of monthly net income and any anticipated increase in income or expenses after filing; and a record of any interest the debtor has in federal or state qualified education or tuition accounts. 11 U.S.C. § 521. The debtor must provide the chapter 13 case trustee with a copy of the tax return or transcripts for the most recent tax year as well as tax returns filed during the case (including tax returns for prior years that had not been filed when the case began). Id. A husband and wife may file a joint petition or individual petitions. 11 U.S.C. § 302(a). (The Official Forms may be purchased at legal stationery stores or downloaded from the Internet at www.uscourts.gov/bkforms/index.html. They are not available from the court.)

The courts must charge a $235 case filing fee and a $39 miscellaneous administrative fee. Normally the fees must be paid to the clerk of the court upon filing. With the court’s permission, however, they may be paid in installments. 28 U.S.C. § 1930(a); Fed. R. Bankr. P. 1006(b); Bankruptcy Court Miscellaneous Fee Schedule, Item 8. The number of installments is limited to four, and the debtor must make the final installment no later than 120 days after filing the petition. Fed. R. Bankr. P. 1006(b). For cause shown, the court may extend the time of any installment, as long as the last installment is paid no later than 180 days after filing the petition. Id. The debtor may also pay the $39 administrative fee in installments. If a joint petition is filed, only one filing fee and one administrative fee are charged. Debtors should be aware that failure to pay these fees may result in dismissal of the case. 11 U.S.C. § 1307(c)(2).

In order to complete the Official Bankruptcy Forms that make up the petition, statement of financial affairs, and schedules, the debtor must compile the following information:

1. A list of all creditors and the amounts and nature of their claims;
2. The source, amount, and frequency of the debtor’s income;
3. A list of all of the debtor’s property; and
4. A detailed list of the debtor’s monthly living expenses, i.e., food, clothing, shelter, utilities, taxes, transportation, medicine, etc.
Married individuals must gather this information for their spouse regardless of whether they are filing a joint petition, separate individual petitions, or even if only one spouse is filing. In a situation where only one spouse files, the income and expenses of the non-filing spouse is required so that the court, the trustee and creditors can evaluate the household’s financial position.

When an individual files a chapter 13 petition, an impartial trustee is appointed to administer the case. 11 U.S.C. § 1302. In some districts, the U.S. trustee or bankruptcy administrator (2) appoints a standing trustee to serve in all chapter 13 cases. 28 U.S.C. § 586(b). The chapter 13 trustee both evaluates the case and serves as a disbursing agent, collecting payments from the debtor and making distributions to creditors. 11 U.S.C. § 1302(b).

Filing the petition under chapter 13 “automatically stays” (stops) most collection actions against the debtor or the debtor’s property. 11 U.S.C. § 362. Filing the petition does not, however, stay certain types of actions listed under 11 U.S.C. § 362(b), and the stay may be effective only for a short time in some situations. The stay arises by operation of law and requires no judicial action. As long as the stay is in effect, creditors generally may not initiate or continue lawsuits, wage garnishments, or even make telephone calls demanding payments. The bankruptcy clerk gives notice of the bankruptcy case to all creditors whose names and addresses are provided by the debtor.

Chapter 13 also contains a special automatic stay provision that protects co-debtors. Unless the bankruptcy court authorizes otherwise, a creditor may not seek to collect a “consumer debt” from any individual who is liable along with the debtor. 11 U.S.C. § 1301(a). Consumer debts are those incurred by an individual primarily for a personal, family, or household purpose. 11 U.S.C. § 101(8).

Individuals may use a chapter 13 proceeding to save their home from foreclosure. The automatic stay stops the foreclosure proceeding as soon as the individual files the chapter 13 petition. The individual may then bring the past-due payments current over a reasonable period of time. Nevertheless, the debtor may still lose the home if the mortgage company completes the foreclosure sale under state law before the debtor files the petition.11 U.S.C. § 1322(c). The debtor may also lose the home if he or she fails to make the regular mortgage payments that come due after the chapter 13 filing.

Between 20 and 50 days after the debtor files the chapter 13 petition, the chapter 13 trustee will hold a meeting of creditors. If the U.S. trustee or bankruptcy administrator schedules the meeting at a place that does not have regular U.S. trustee or bankruptcy administrator staffing, the meeting may be held no more than 60 days after the debtor files. Fed. R. Bankr. P. 2003(a). During this meeting, the trustee places the debtor under oath, and both the trustee and creditors may ask questions. The debtor must attend the meeting and answer questions regarding his or her financial affairs and the proposed terms of the plan.11 U.S.C. § 343. If a husband and wife file a joint petition, they both must attend the creditors’ meeting and answer questions. In order to preserve their independent judgment, bankruptcy judges are prohibited from attending the creditors’ meeting. 11 U.S.C. § 341(c). The parties typically resolve problems with the plan either during or shortly after the creditors’ meeting. Generally, the debtor can avoid problems by making sure that the petition and plan are complete and accurate, and by consulting with the trustee prior to the meeting.

In a chapter 13 case, to participate in distributions from the bankruptcy estate, unsecured creditors must file their claims with the court within 90 days after the first date set for the meeting of creditors. Fed. R. Bankr. P. 3002(c). A governmental unit, however, has 180 days from the date the case is filed file a proof of claim.11 U.S.C. § 502(b)(9).

After the meeting of creditors, the debtor, the chapter 13 trustee, and those creditors who wish to attend will come to court for a hearing on the debtor’s chapter 13 repayment plan.

The Chapter 13 Plan and Confirmation Hearing

Unless the court grants an extension, the debtor must file a repayment plan with the petition or within 15 days after the petition is filed. Fed. R. Bankr. P. 3015. A plan must be submitted for court approval and must provide for payments of fixed amounts to the trustee on a regular basis, typically biweekly or monthly. The trustee then distributes the funds to creditors according to the terms of the plan, which may offer creditors less than full payment on their claims.

There are three types of claims: priority, secured, and unsecured. Priority claims are those granted special status by the bankruptcy law, such as most taxes and the costs of bankruptcy proceeding. (3) Secured claims are those for which the creditor has the right take back certain property (i.e., the collateral) if the debtor does not pay the underlying debt. In contrast to secured claims, unsecured claims are generally those for which the creditor has no special rights to collect against particular property owned by the debtor.

The plan must pay priority claims in full unless a particular priority creditor agrees to different treatment of the claim or, in the case of a domestic support obligation, unless the debtor contributes all “disposable income” – discussed below – to a five-year plan.11 U.S.C. § 1322(a).

If the debtor wants to keep the collateral securing a particular claim, the plan must provide that the holder of the secured claim receive at least the value of the collateral. If the obligation underlying the secured claim was used to buy the collateral (e.g., a car loan), and the debt was incurred within certain time frames before the bankruptcy filing, the plan must provide for full payment of the debt, not just the value of the collateral (which may be less due to depreciation). Payments to certain secured creditors (i.e., the home mortgage lender), may be made over the original loan repayment schedule (which may be longer than the plan) so long as any arrearage is made up during the plan. The debtor should consult an attorney to determine the proper treatment of secured claims in the plan.

The plan need not pay unsecured claims in full as long it provides that the debtor will pay all projected “disposable income” over an “applicable commitment period,” and as long as unsecured creditors receive at least as much under the plan as they would receive if the debtor’s assets were liquidated under chapter 7. 11 U.S.C. § 1325. In chapter 13, “disposable income” is income (other than child support payments received by the debtor) less amounts reasonably necessary for the maintenance or support of the debtor or dependents and less charitable contributions up to 15% of the debtor’s gross income. If the debtor operates a business, the definition of disposable income excludes those amounts which are necessary for ordinary operating expenses. 11 U.S.C. § 1325(b)(2)(A) and (B). The “applicable commitment period” depends on the debtor’s current monthly income. The applicable commitment period must be three years if current monthly income is less than the state median for a family of the same size – and five years if the current monthly income is greater than a family of the same size. 11 U.S.C. § 1325(d). The plan may be less than the applicable commitment period (three or five years) only if unsecured debt is paid in full over a shorter period.

Within 30 days after filing the bankruptcy case, even if the plan has not yet been approved by the court, the debtor must start making plan payments to the trustee. 11 U.S.C. § 1326(a)(1). If any secured loan payments or lease payments come due before the debtor’s plan is confirmed (typically home and automobile payments), the debtor must make adequate protection payments directly to the secured lender or lessor – deducting the amount paid from the amount that would otherwise be paid to the trustee. Id.

No later than 45 days after the meeting of creditors, the bankruptcy judge must hold a confirmation hearing and decide whether the plan is feasible and meets the standards for confirmation set forth in the Bankruptcy Code. 11 U.S.C. §§ 1324, 1325. Creditors will receive 25 days’ notice of the hearing and may object to confirmation. Fed. R. Bankr. P. 2002(b). While a variety of objections may be made, the most frequent ones are that payments offered under the plan are less than creditors would receive if the debtor’s assets were liquidated or that the debtor’s plan does not commit all of the debtor’s projected disposable income for the three or five year applicable commitment period.

If the court confirms the plan, the chapter 13 trustee will distribute funds received under the plan “as soon as is practicable.” 11 U.S.C. § 1326(a)(2). If the court declines to confirm the plan, the debtor may file a modified plan. 11 U.S.C. § 1323. The debtor may also convert the case to a liquidation case under chapter 7. (4) 11 U.S.C. § 1307(a). If the court declines to confirm the plan or the modified plan and instead dismisses the case, the court may authorize the trustee to keep some funds for costs, but the trustee must return all remaining funds to the debtor (other than funds already disbursed or due to creditors). 11 U.S.C. § 1326(a)(2).

Occasionally, a change in circumstances may compromise the debtor’s ability to make plan payments. For example, a creditor may object or threaten to object to a plan, or the debtor may inadvertently have failed to list all creditors. In such instances, the plan may be modified either before or after confirmation. 11 U.S.C. §§ 1323, 1329. Modification after confirmation is not limited to an initiative by the debtor, but may be at the request of the trustee or an unsecured creditor. 11 U.S.C. § 1329(a).

Making the Plan Work

The provisions of a confirmed plan bind the debtor and each creditor. 11 U.S.C. § 1327. Once the court confirms the plan, the debtor must make the plan succeed. The debtor must make regular payments to the trustee either directly or through payroll deduction, which will require adjustment to living on a fixed budget for a prolonged period. Furthermore, while confirmation of the plan entitles the debtor to retain property as long as payments are made, the debtor may not incur new debt without consulting the trustee, because additional debt may compromise the debtor’s ability to complete the plan. 11 U.S.C. §§ 1305(c), 1322(a)(1), 1327.

A debtor may make plan payments through payroll deductions. This practice increases the likelihood that payments will be made on time and that the debtor will complete the plan. In any event, if the debtor fails to make the payments due under the confirmed plan, the court may dismiss the case or convert it to a liquidation case under chapter 7 of the Bankruptcy Code. 11 U.S.C. § 1307(c). The court may also dismiss or convert the debtor’s case if the debtor fails to pay any post-filing domestic support obligations (i.e., child support, alimony), or fails to make required tax filings during the case. 11 U.S.C. §§ 1307(c) and (e), 1308, 521.

The Chapter 13 Discharge

The bankruptcy law regarding the scope of the chapter 13 discharge is complex and has recently undergone major changes. Therefore, debtors should consult competent legal counsel prior to filing regarding the scope of the chapter 13 discharge.

A chapter 13 debtor is entitled to a discharge upon completion of all payments under the chapter 13 plan so long as the debtor: (1) certifies (if applicable) that all domestic support obligations that came due prior to making such certification have been paid; (2) has not received a discharge in a prior case filed within a certain time frame (two years for prior chapter 13 cases and four years for prior chapter 7, 11 and 12 cases); and (3) has completed an approved course in financial management (if the U.S. trustee or bankruptcy administrator for the debtor’s district has determined that such courses are available to the debtor). 11 U.S.C. § 1328. The court will not enter the discharge, however, until it determines, after notice and a hearing, that there is no reason to believe there is any pending proceeding that might give rise to a limitation on the debtor’s homestead exemption. 11 U.S.C. § 1328(h).

The discharge releases the debtor from all debts provided for by the plan or disallowed (under section 502), with limited exceptions. Creditors provided for in full or in part under the chapter 13 plan may no longer initiate or continue any legal or other action against the debtor to collect the discharged obligations.

As a general rule, the discharge releases the debtor from all debts provided for by the plan or disallowed, with the exception of certain debts referenced in 11 U.S.C. § 1328. Debts not discharged in chapter 13 include certain long term obligations (such as a home mortgage), debts for alimony or child support, certain taxes, debts for most government funded or guaranteed educational loans or benefit overpayments, debts arising from death or personal injury caused by driving while intoxicated or under the influence of drugs, and debts for restitution or a criminal fine included in a sentence on the debtor’s conviction of a crime. To the extent that they are not fully paid under the chapter 13 plan, the debtor will still be responsible for these debts after the bankruptcy case has concluded. Debts for money or property obtained by false pretenses, debts for fraud or defalcation while acting in a fiduciary capacity, and debts for restitution or damages awarded in a civil case for willful or malicious actions by the debtor that cause personal injury or death to a person will be discharged unless a creditor timely files and prevails in an action to have such debts declared nondischargeable. 11 U.S.C. §§ 1328, 523(c); Fed. R. Bankr. P. 4007(c).

The discharge in a chapter 13 case is somewhat broader than in a chapter 7 case. Debts dischargeable in a chapter 13, but not in chapter 7, include debts for willful and malicious injury to property (as opposed to a person), debts incurred to pay nondischargeable tax obligations, and debts arising from property settlements in divorce or separation proceedings. 11 U.S.C. § 1328(a).

The Chapter 13 Hardship Discharge

After confirmation of a plan, circumstances may arise that prevent the debtor from completing the plan. In such situations, the debtor may ask the court to grant a “hardship discharge.” 11 U.S.C. § 1328(b). Generally, such a discharge is available only if: (1) the debtor’s failure to complete plan payments is due to circumstances beyond the debtor’s control and through no fault of the debtor; (2) creditors have received at least as much as they would have received in a chapter 7 liquidation case; and (3) modification of the plan is not possible. Injury or illness that precludes employment sufficient to fund even a modified plan may serve as the basis for a hardship discharge. The hardship discharge is more limited than the discharge described above and does not apply to any debts that are nondischargeable in a chapter 7 case. 11 U.S.C. § 523.

——————————————————————————–

NOTES

1. The “current monthly income” received by the debtor is a defined term in the Bankruptcy Code and means the average monthly income received over the six calendar months before commencement of the bankruptcy case, including regular contributions to household expenses from nondebtors and including income from the debtor’s spouse if the petition is a joint petition, but not including social security income or certain payments made because the debtor is the victim of certain crimes. 11 U.S.C. § 101(10A). return to text
2. In North Carolina and Alabama, bankruptcy administrators perform similar functions that U.S. trustees perform in the remaining forty-eight states. The bankruptcy administrator program is administered by the Administrative Office of the United States Courts, while the U.S. trustee program is administered by the Department of Justice. For purposes of this publication, references to U.S. trustees are also applicable to bankruptcy administrators. return to text
3. Section 507 sets forth 10 categories of unsecured claims which Congress has, for public policy reasons, given priority of distribution over other unsecured claims. return to text
4. A fee of $25 is charged for converting a case under chapter 13 to a case under chapter 7. return to text

Source: http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter13.html

Source: http://www.leg.state.nv.us/75th2009/Bills/AB/AB152_EN.pdf

1. Type into the online fields and print from online.

2. Type into the fields and save the file as a pdf on your local computer.

3. Print the form out and fill it out manually.

• Client Information Sheet (Required) (380)
• Client Personal Financial Information (181)
• Loan Modification Checklist (17085)

If you have any questions about our forms please feel free to contact us.

Spinal cord injury x-ray

Our spinal cord injury attorneys will work relentlessly to get compensation for the victim.  Many times, the victim will require medical assistance and monitoring the rest of their life.  Our spinal cord injury attorneys will consult with a medical expert to prepare a cost estimate of medical treatment for the rest of the victim’s life.  In addition, our spinal cord injury attorneys will obtain a detailed report showing the victim’s lost wages and any future earnings that the victim is entitled to receive.  Let our spinal cord injury attorneys handle your case so you may concentrate on getting better and making a full recovery.
 
Any type of accident may cause an injury to the spinal cord.  This is a serious and life-altering injury.  It produces severe symptoms that will alter a person’s life.  Many times, a spinal cord injury produces paralysis or other loss of motion.  Unfortunately, many of these injuries are permanent and the victim will never recover fully from the accident.  Victims with a spinal injury may never be able to walk again.  In addition, the victim may require full-time care, such as a nurse, and may never be able to work again.  They will also require ongoing medical care and financial assistance for the rest of their lives.

Our traumatic brain injury attorneys will work relentlessly to get compensation for the victim. Many times, the victim will require medical assistance and monitoring the rest of their life. Our traumatic brain injury attorneys will consult with a medical expert to prepare a cost estimate of medical treatment for the rest of the victim’s life. In addition, our traumatic brain injury attorneys will obtain a detailed report showing the victim’s lost wages and any future earnings that the victim is entitled to receive. Let our traumatic brain injury attorneys handle your case so you may concentrate on getting better and making a full recovery.

It is illegal in Nevada to operate a motor vehicle with a blood alcohol level of 0.08 or higher. (NRS 484.379). Las Vegas is a 24 hour town and many bars or casinos never close. Every day, people make the disastrous decision to operate their car after they have drunk too much alcohol. Not only are there criminal penalties for this behavior, but also it can have a far more tragic outcome, such as injuring or killing another driver. Drunk driving accidents happen around the clock in Las Vegas – anytime and anyplace. It is only a matter of time until a habitual drunk driver causes an accident and irrevocably impacts someone else’s life. Our DUI accident attorneys are experienced in dealing with the aftermath of a DUI accident and will allow you to focus on recovering from your injuries.
Unfortunately, DUI accidents frequently produce injuries. An injured victim is first struck by drunk driver; and second victimized by an insurance company that refuses to pay the victim a proper settlement for their injuries. Insurance companies have no incentive to properly compensate victims. Insurance companies are not in business to pay money to victims, they are in business to make money. Shortly after a collision, the insurance company may contact the victim and offer a small monetary settlement. This is almost never a fair settlement, and the insurance companies hope the victim does not contact a DUI accident attorney. Our DUI accident attorneys are able to get you the maximum compensation for your injuries, and prevent you from accepting a very unfair deal from a greedy insurance company.
DUI accidents produce a wide range of injuries. These range from broken bones caused by the traumatic forces of collisions, to soreness and stiffness associated with “whiplash.” Our DUI accident attorneys frequently deal with insurance companies and notice they will typically try to deny all but the most obvious injuries. Insurance companies will attempt to deny certain injuries that are difficult to diagnose, such as whiplash or other soft-tissue injuries. They will also seek to refuse to reimburse medical expenses for diagnostic treatment such as an MRI or X-Rays. However, when our experienced DUI accident attorneys contact the insurance companies, they know these delaying tactics will not work and that they cannot take further advantage of a victim. Our DUI accident attorneys will work hard and force the insurance company to pay you all the money you deserve.
Common injuries associated with DUI accidents are discussed in general “layman’s” terms below. For a complete diagnosis and treatment, please consult with your treating physician.

1. Herniated disc – A serious condition caused when the internal fluid from a disc in a victim’s spine leaks out of the disc. This causes severe irritation to the nearby nerves. The body identifies the leaking fluid as a foreign substance and attacks the fluid, causing extreme pain because the “battle” takes place on the nearby nerve roots. Please feel free to contact your treating doctor or our DUI accident attorneys for additional helpful information.
2. Bulging or protruding disc – A “bulging” or “swelling” of the disc. This condition is troubling because the swelling or bulging may cause the disc to push against a nearby nerve root. This is associated with tingling or pain in the extremities, as well as back pain. Please feel free to contact your treating doctor or our DUI accident attorneys for additional helpful information.
3. Annular tearing – An internal disruption of the disc in a victim’s spine. It is associated with a ripping of the disc and is very painful because there is an abundance of nerves present in the area. Annular tearing can produce severe back pain and possibly leg pain because the effected nerves travel to the legs. Please feel free to contact your treating doctor or our DUI accident attorneys for additional helpful information.
4. Spinal cord injury – Any type of accident may cause an injury to the spinal cord. This is a serious and life-altering injury. It produces severe symptoms that will alter a person’s life. Many times, a spinal cord injury produces paralysis or other loss of motion. Unfortunately, many of these injuries are permanent and the victim will never recover fully from the accident. Victims with a spinal injury may never be able to walk again. In addition, the victim may require full-time care, such as a nurse, and may never be able to work again. They will also require ongoing medical care and financial assistance for the rest of their lives. Please feel free to contact your treating doctor or our DUI accident attorneys for additional helpful information.
5. Traumatic brain injury (TBI) – Any type of car accident injuring the head may cause a serious condition called Traumatic Brain Injury (TBI). This is a serious and life-altering injury. Traumatic Brain Injury is a serious brain injury that many individuals never recover from. It produces severe symptoms and may alter a victim’s personality, motor skills, communication skills, speech, and ability to reason or think clearly. Many victims of Traumatic Brain Injury are never able to work again. They will also require ongoing medical care and financial assistance for the rest of their lives. Please feel free to contact your treating doctor or our DUI accident attorneys for additional helpful information.
6. Other injuries – any part of the body can be injured in a car accident. Some of the common injuries are discussed above. For details on additional injuries, please contact our experienced DUI accident attorneys.

DUI accident victims may be entitled to significant financial compensation for their injuries. Our DUI accident attorneys will work hard to get you all the money you deserve. You may receive money for your medical bills, pain and suffering, lost wages, future medical treatment, and a host of other reasons depending upon your case. If you have suffered an injury, please contact our DUI accident attorneys immediately so we may begin getting you the medical treatment and money you deserve.

Our traumatic brain injury attorneys will work relentlessly to get compensation for the victim. Many times, the victim will require medical assistance and monitoring the rest of their life. Our traumatic brain injury attorneys will consult with a medical expert to prepare a cost estimate of medical treatment for the rest of the victim’s life. In addition, our traumatic brain injury attorneys will obtain a detailed report showing the victim’s lost wages and any future earnings that the victim is entitled to receive. Let our traumatic brain injury attorneys handle your case so you may concentrate on getting better and making a full recovery.

Collisions between a pedestrian and a car often produce catastrophic injuries.  A pedestrian has no protection from a car collision.  A car versus pedestrian collision will produce devastating injuries.  Common injuries from car versus pedestrian accidents include broken bones, spinal injuries, brain injuries, and paralysis.  These injuries arise from a series of causes.  First, the pedestrian is struck by a car.  Second, the pedestrian falls to the ground and may be drug behind the initial car.  Third, the pedestrian is struck by oncoming traffic as they lay in the street unable to move.  Our pedestrian accident attorneys are able to get you the money you deserve for your injuries. 
Pedestrian Accidents will almost always require immediate and expensive medical care.  This is the natural result of the traumatic forces involved in the collision.  As well as secondary causes, such as being run over after the pedestrian is knocked to the ground.  Our pedestrian accident attorneys can assist you in getting payment for medical bills, as well as future medical costs. 
It is critical that an experienced pedestrian accident attorney handle your case.  Pedestrian accident cases are complex and require detailed investigation.  Frequently, the pedestrian has no recollection of what vehicle struck him or what happened – they simply wake up in an ambulance or hospital.  Our pedestrian accident attorneys are skilled in reviewing and analyzing the facts of the accident and determining the cause of the pedestrian accident.  Frequent causes of pedestrian accidents include:

1. Failure to yield to a pedestrian
2. Failure to see the pedestrian
3. Passing the pedestrian unsafely
4. Ignoring a crosswalk or crossing signal
5. Striking a pedestrian from behind

          Our pedestrian accident attorneys can investigate your pedestrian accident and help you concentrate on the recovery process. 

Pedestrian accident victims may be entitled to significant financial compensation for their injuries.  Our pedestrian accident attorneys will work hard to get you all the money you deserve.  You may receive money for your medical bills, pain and suffering, lost wages, future medical treatment, and a host of other reasons depending upon your case.  If you have suffered an injury, please contact our pedestrian accident attorneys immediately so we may begin getting you the money you deserve.

         A slip and fall accident can happen anyplace there is an unsafe or dangerous condition.  Common locations include grocery stores, movie theatres, restaurants, department stores, and unmarked stairs or drop-offs.  Our slip and fall accident attorneys are able to evaluate your case and get you the maximum compensation for your injuries.  Slip and fall accident victims may be entitled to significant financial compensation for their injuries.  Our slip and fall accident attorneys will work hard to get you all the money you deserve.  You may receive money for your medical bills, pain and suffering, lost wages, future medical treatment, and a host of other reasons depending upon your case.  If you have suffered an injury, please contact our slip and fall accident attorneys immediately so we may begin getting you the money you deserve.

provides aggressive representation to injured victims.  We provide proactive and aggressive representation because the best results are earned through your attorney’s hard work.  Insurance companies did not get rich by paying out large damage claims – so it is important to let an experienced attorney handle your injury claim.

The firm handles all types of injury and accident claims.  We assist you in getting your life back together while you concentrate on healing the damage to your body.  The law firm will guide you through the complex legal environment caused by insurance companies aggressively denying claims.  We provide detailed analysis into critical questions such as what caused the accident, who is at fault, who can be held legally responsible, what insurance coverage is available, and how to position your case for maximum recovery.  We also are skilled at describing and portraying your injuries in a vivid and detailed manner so that any insurance company knows the extent of compensation you should receive.  Our informative analysis and experience is critical in negotiating a satisfactory resolution.

Unfortunately, some claims cannot be fully resolved through negotiation and require litigation.  This is the process of filing a lawsuit in Court and possibly culminating in a jury trial.  The litigation process can be a rewarding experience, but it is also time-consuming.  Any client must understand that the best results take time so that your case can be properly positioned to achieve the maximum recovery.  We do not advertise “quick” cash.  We commit ourselves to a maximum recovery and recognize that the best results often take time and hard work.  Many attorneys that seek to resolve your case quickly are unwilling to put in the work and time to obtain the highest possible dollar amount. 

The litigation process begins at the Court.  The process is initiated by filing a Complaint which provides the factual basis for your claim and identifies your legal theories for recovery.  The other side typically has twenty (20) days to respond to the Complaint.  Then, the process called “discovery” begins.  The discovery process is a fact finding procedure.  The sides will interview witnesses and record individuals’ testimony through the deposition process.  In addition, the sides will seek and exchange relevant documents and attempt to narrow the issues that are presented to a jury.  The typical discovery process lasts six (6) to twelve (12) months.  After that, the Court will assign a trial date and the parties will present their cases to a jury. 

Whether your case is successfully resolved through negotiation or litigation, we will assist you through the process and aggressively seek the largest monetary recovery possible. 

We look forward to helping you through this difficult stage of your life.  Please contact us immediately so we may begin to process your claim

Animal Attacks
      Pet owners have a duty to properly restrain and handle their dogs or other animals.  This may include ensuring the animal is on a leash when it is outside the home or that the dog is properly fenced onto the owners’ property.  When a dog is not leashed or not properly confined to the residence, serious injuries can occur.  Our dog bit attorneys are available to evaluate your case and assist in determining who is liable for the dog bite. 
      Many dogs in Las Vegas, such  as pit bulls and rottweillers are aggressive by nature and can seriously injure an individual.  These dogs can be extremely violent if not properly trained and handled.  The newspapers report numerous mauling incidents.  These are some of the most serious and heart-wrenching tales because they often involve infants, toddlers, or others unable to protect themselves.  A dog’s powerful jaws can rend flesh and inflict life-threatening wounds in a matter of seconds.  Many of these injuries produce severe scarring that never heals.
      Injured victims can hold dog owners legally responsible for a violent dog’s actions.  The most common legal claim is negligence – for failing to properly leash the dog or failing to properly train the dog.  In addition, if the dog attacks a “guest” in the owner’s home, the owner may be legally liable responsible as well.  Most comprehensive homeowner’s insurance policies provide insurance coverage for dog attacks.  Thus, if a pet owner’s dog attacks a person, that injury will typically trigger insurance coverage.  And most homeowners have insurance because it is paid by their mortgage holder through an escrow account, whether the homeowner knows this or not.  So unless the individual owns their home “free and clear” and has no mortgage, there should be insurance coverage for a dog bite or attack. 

      Our dog bite attorneys are able to evaluate your case and get you the maximum compensation for your injuries.  Dog bite victims may be entitled to significant financial compensation for their injuries.  Our dog bite attorneys will work hard to get you all the money you deserve.  You may receive money for your medical bills, pain and suffering, lost wages, future medical treatment, and a host of other reasons depending upon your case.  If you have suffered a dog bite, please contact our dog bite attorneys immediately so we may begin getting you the money you deserve. ]]> http://chapter7lasvegas.com/2009/08/02/animal-attacks/feed/ 0 http://chapter7lasvegas.com/2009/08/02/bike-accidents/ http://chapter7lasvegas.com/2009/08/02/bike-accidents/#comments Mon, 03 Aug 2009 01:47:19 +0000 admin http://chapter7lasvegas.com/?p=292

Collisions between a bike and a car often produce catastrophic injuries. A bike rider has no protection from a car accident. A collision will knock the bike rider to the ground and cause serious injuries. Common injuries from bike accidents include broken bones, spinal injuries, brain injuries, and paralysis. These injuries arise from a series of causes. First, the bike rider is struck by a car. Second, the bike rider falls to the ground. Third, the bike rider is struck by oncoming traffic as they lay in the street unable to move. Our bike accident attorneys are able to get you the money you deserve for your injuries.

Bike accidents will almost always require immediate and expensive medical care. This is the natural result of the traumatic forces involved in the collision. As well as secondary causes, such as being run over after the bike rider is knocked to the ground. Our bike accident attorneys can assist you in getting payment for medical bills, as well as future medical costs.

It is critical that an experienced bike accident attorney handle your case. Bike accident cases are complex and require detailed investigation. Frequently, the bike is mangled and it is impossible to determine where or how the car struck the bike and bike rider. In addition, there may be a lack of typical physical evidence such as skid marks. Our bike accident attorneys are skilled in reviewing and analyzing the facts of the accident and determining the cause of the bike accident. Frequent causes of bike accidents include:

1. Failure to maintain a travel lane
2. Failure to see the bike rider
3. Passing the bike rider unsafely
4. Turning in front of a bike rider
5. Striking a bike rider from behind

Our bike accident attorneys can investigate your bike accident and help you concentrate on the recovery process. Bike accident victims may be entitled to significant financial compensation for their injuries. Our bike accident attorneys will work hard to get you all the money you deserve. You may receive money for your medical bills, pain and suffering, lost wages, future medical treatment, and a host of other reasons depending upon your case. If you have suffered an injury, please contact our bike accident attorneys immediately so we may begin getting you the money you deserve.

Las Vegas Attorney Specializing in Personal Injury – Paralysis

Paralysis
         Any type of accident may cause an injury that results in paralysis.  This is a serious and life-altering injury.  It produces severe symptoms that will alter a person’s life, causing the loss of motion in one or more areas of the body.  Unfortunately, many of these injuries are permanent and the victim will never recover fully from the accident.  Victims with paralysis may never be able to walk again.  In addition, the victim may require full-time care, such as a nurse, and may never be able to work again.  They will also require ongoing medical care and financial assistance for the rest of their lives.

  
        Our paralysis attorneys will work relentlessly to get compensation for the victim.  Many times, the victim will require medical assistance and monitoring the rest of their life.  Our paralysis attorneys will consult with a medical expert to prepare a cost estimate of medical treatment for the rest of the victim’s life.  In addition, our paralysis attorneys will obtain a detailed report showing the victim’s lost wages and any future earnings that the victim is entitled to receive.  Let our paralysis attorneys handle your case so you may concentrate on getting better and making a full recovery. 

Las Vegas Wrongful Death, Loss of Life, Funeral

Wrongful Death
          Accidents may result in the wrongful death of one or more victims.  The death of a loved one is the most painful loss imaginable.  It is often impossible to understand how an accident caused such a loss to your family and loved ones.  A negligent driver’s momentary lapse of concentration or judgment results in the death of a loved family member.  Unfortunately, many times wrongful deaths result when another driver makes a decision to drive drunk or break other laws.  Truck drivers may cause a wrongful death because they are groggy from lack of sleep or simply in a rush to complete a shipment and pick up another load.  These are the most serious cases and our wrongful death attorneys will pursue them on behalf of you and your loved one. 
Any type of accident may cause a wrongful death.  The impact on the deceased family is significant and unanticipated.  The shock of losing a loved family member is an obvious impact from their wrongful death.  However, there are other effects as well.  Most times, a family is now unable to pay its bills because one of the wage earners is deceased.  There may also be medical bills associated with trying to save the loved one’s life, as well as funeral expenses.  These and other issues will arise as a family tries to deal with the trauma from losing a loved one. 

        Our wrongful death attorneys will work relentlessly to get compensation for the victim’s remaining family.  Many times, the deceased will have unpaid medical bills as a result of doctors struggling to save their life.  Our wrongful death attorneys will help you get these medical bills paid.  In addition, our wrongful death attorneys will obtain a detailed report showing the victim’s lost wages and any future earnings that the victim’s family is entitled to receive.  Let our wrongful death attorneys handle your case so you may concentrate on getting over your tragic loss. ]]> http://chapter7lasvegas.com/2009/08/01/wrongful-death/feed/ 0 http://chapter7lasvegas.com/2009/08/01/dui-accidents/ http://chapter7lasvegas.com/2009/08/01/dui-accidents/#comments Sun, 02 Aug 2009 01:02:39 +0000 admin http://chapter7lasvegas.com/?p=276 DUI Accidents – Drunk Driving Accident

It is illegal in Nevada to operate a motor vehicle with a blood alcohol level of 0.08 or higher. (NRS 484.379). Las Vegas is a 24 hour town and many bars or casinos never close. Every day, people make the disastrous decision to operate their car after they have drunk too much alcohol. Not only are there criminal penalties for this behavior, but also it can have a far more tragic outcome, such as injuring or killing another driver. Drunk driving accidents happen around the clock in Las Vegas – anytime and anyplace. It is only a matter of time until a habitual drunk driver causes an accident and irrevocably impacts someone else’s life. Our DUI accident attorneys are experienced in dealing with the aftermath of a DUI accident and will allow you to focus on recovering from your injuries.
Unfortunately, DUI accidents frequently produce injuries. An injured victim is first struck by drunk driver; and second victimized by an insurance company that refuses to pay the victim a proper settlement for their injuries. Insurance companies have no incentive to properly compensate victims. Insurance companies are not in business to pay money to victims, they are in business to make money. Shortly after a collision, the insurance company may contact the victim and offer a small monetary settlement. This is almost never a fair settlement, and the insurance companies hope the victim does not contact a DUI accident attorney. Our DUI accident attorneys are able to get you the maximum compensation for your injuries, and prevent you from accepting a very unfair deal from a greedy insurance company.
DUI accidents produce a wide range of injuries. These range from broken bones caused by the traumatic forces of collisions, to soreness and stiffness associated with “whiplash.” Our DUI accident attorneys frequently deal with insurance companies and notice they will typically try to deny all but the most obvious injuries. Insurance companies will attempt to deny certain injuries that are difficult to diagnose, such as whiplash or other soft-tissue injuries. They will also seek to refuse to reimburse medical expenses for diagnostic treatment such as an MRI or X-Rays. However, when our experienced DUI accident attorneys contact the insurance companies, they know these delaying tactics will not work and that they cannot take further advantage of a victim. Our DUI accident attorneys will work hard and force the insurance company to pay you all the money you deserve.
Common injuries associated with DUI accidents are discussed in general “layman’s” terms below. For a complete diagnosis and treatment, please consult with your treating physician.

1. Herniated disc – A serious condition caused when the internal fluid from a disc in a victim’s spine leaks out of the disc. This causes severe irritation to the nearby nerves. The body identifies the leaking fluid as a foreign substance and attacks the fluid, causing extreme pain because the “battle” takes place on the nearby nerve roots. Please feel free to contact your treating doctor or our DUI accident attorneys for additional helpful information.
2. Bulging or protruding disc – A “bulging” or “swelling” of the disc. This condition is troubling because the swelling or bulging may cause the disc to push against a nearby nerve root. This is associated with tingling or pain in the extremities, as well as back pain. Please feel free to contact your treating doctor or our DUI accident attorneys for additional helpful information.
3. Annular tearing – An internal disruption of the disc in a victim’s spine. It is associated with a ripping of the disc and is very painful because there is an abundance of nerves present in the area. Annular tearing can produce severe back pain and possibly leg pain because the effected nerves travel to the legs. Please feel free to contact your treating doctor or our DUI accident attorneys for additional helpful information.
4. Spinal cord injury – Any type of accident may cause an injury to the spinal cord. This is a serious and life-altering injury. It produces severe symptoms that will alter a person’s life. Many times, a spinal cord injury produces paralysis or other loss of motion. Unfortunately, many of these injuries are permanent and the victim will never recover fully from the accident. Victims with a spinal injury may never be able to walk again. In addition, the victim may require full-time care, such as a nurse, and may never be able to work again. They will also require ongoing medical care and financial assistance for the rest of their lives. Please feel free to contact your treating doctor or our DUI accident attorneys for additional helpful information.
5. Traumatic brain injury (TBI) – Any type of car accident injuring the head may cause a serious condition called Traumatic Brain Injury (TBI). This is a serious and life-altering injury. Traumatic Brain Injury is a serious brain injury that many individuals never recover from. It produces severe symptoms and may alter a victim’s personality, motor skills, communication skills, speech, and ability to reason or think clearly. Many victims of Traumatic Brain Injury are never able to work again. They will also require ongoing medical care and financial assistance for the rest of their lives. Please feel free to contact your treating doctor or our DUI accident attorneys for additional helpful information.
6. Other injuries – any part of the body can be injured in a car accident. Some of the common injuries are discussed above. For details on additional injuries, please contact our experienced DUI accident attorneys.

DUI accident victims may be entitled to significant financial compensation for their injuries. Our DUI accident attorneys will work hard to get you all the money you deserve. You may receive money for your medical bills, pain and suffering, lost wages, future medical treatment, and a host of other reasons depending upon your case. If you have suffered an injury, please contact our DUI accident attorneys immediately so we may begin getting you the medical treatment and money you deserve.

DUI Accident, drinking and driving

DUI Accidents – Drunk Driving Accident
It is illegal in Nevada to operate a motor vehicle with a blood alcohol level of 0.08 or higher. (NRS 484.379). Las Vegas is a 24 hour town and many bars or casinos never close. Every day, people make the disastrous decision to operate their car after they have drunk too much alcohol. Not only are there criminal penalties for this behavior, but also it can have a far more tragic outcome, such as injuring or killing another driver. Drunk driving accidents happen around the clock in Las Vegas – anytime and anyplace. It is only a matter of time until a habitual drunk driver causes an accident and irrevocably impacts someone else’s life. Our DUI accident attorneys are experienced in dealing with the aftermath of a DUI accident and will allow you to focus on recovering from your injuries.
Unfortunately, DUI accidents frequently produce injuries. An injured victim is first struck by drunk driver; and second victimized by an insurance company that refuses to pay the victim a proper settlement for their injuries. Insurance companies have no incentive to properly compensate victims. Insurance companies are not in business to pay money to victims, they are in business to make money. Shortly after a collision, the insurance company may contact the victim and offer a small monetary settlement. This is almost never a fair settlement, and the insurance companies hope the victim does not contact a DUI accident attorney. Our DUI accident attorneys are able to get you the maximum compensation for your injuries, and prevent you from accepting a very unfair deal from a greedy insurance company.
DUI accidents produce a wide range of injuries. These range from broken bones caused by the traumatic forces of collisions, to soreness and stiffness associated with “whiplash.” Our DUI accident attorneys frequently deal with insurance companies and notice they will typically try to deny all but the most obvious injuries. Insurance companies will attempt to deny certain injuries that are difficult to diagnose, such as whiplash or other soft-tissue injuries. They will also seek to refuse to reimburse medical expenses for diagnostic treatment such as an MRI or X-Rays. However, when our experienced DUI accident attorneys contact the insurance companies, they know these delaying tactics will not work and that they cannot take further advantage of a victim. Our DUI accident attorneys will work hard and force the insurance company to pay you all the money you deserve.
Common injuries associated with DUI accidents are discussed in general “layman’s” terms below. For a complete diagnosis and treatment, please consult with your treating physician.

1. Herniated disc – A serious condition caused when the internal fluid from a disc in a victim’s spine leaks out of the disc. This causes severe irritation to the nearby nerves. The body identifies the leaking fluid as a foreign substance and attacks the fluid, causing extreme pain because the “battle” takes place on the nearby nerve roots. Please feel free to contact your treating doctor or our DUI accident attorneys for additional helpful information.
2. Bulging or protruding disc – A “bulging” or “swelling” of the disc. This condition is troubling because the swelling or bulging may cause the disc to push against a nearby nerve root. This is associated with tingling or pain in the extremities, as well as back pain. Please feel free to contact your treating doctor or our DUI accident attorneys for additional helpful information.
3. Annular tearing – An internal disruption of the disc in a victim’s spine. It is associated with a ripping of the disc and is very painful because there is an abundance of nerves present in the area. Annular tearing can produce severe back pain and possibly leg pain because the effected nerves travel to the legs. Please feel free to contact your treating doctor or our DUI accident attorneys for additional helpful information.
4. Spinal cord injury – Any type of accident may cause an injury to the spinal cord. This is a serious and life-altering injury. It produces severe symptoms that will alter a person’s life. Many times, a spinal cord injury produces paralysis or other loss of motion. Unfortunately, many of these injuries are permanent and the victim will never recover fully from the accident. Victims with a spinal injury may never be able to walk again. In addition, the victim may require full-time care, such as a nurse, and may never be able to work again. They will also require ongoing medical care and financial assistance for the rest of their lives. Please feel free to contact your treating doctor or our DUI accident attorneys for additional helpful information.
5. Traumatic brain injury (TBI) – Any type of car accident injuring the head may cause a serious condition called Traumatic Brain Injury (TBI). This is a serious and life-altering injury. Traumatic Brain Injury is a serious brain injury that many individuals never recover from. It produces severe symptoms and may alter a victim’s personality, motor skills, communication skills, speech, and ability to reason or think clearly. Many victims of Traumatic Brain Injury are never able to work again. They will also require ongoing medical care and financial assistance for the rest of their lives. Please feel free to contact your treating doctor or our DUI accident attorneys for additional helpful information.
6. Other injuries – any part of the body can be injured in a car accident. Some of the common injuries are discussed above. For details on additional injuries, please contact our experienced DUI accident attorneys.

DUI accident victims may be entitled to significant financial compensation for their injuries. Our DUI accident attorneys will work hard to get you all the money you deserve. You may receive money for your medical bills, pain and suffering, lost wages, future medical treatment, and a host of other reasons depending upon your case. If you have suffered an injury, please contact our DUI accident attorneys immediately so we may begin getting you the medical treatment and money you deserve.

18 wheel Diesel truck accident at traffic intersection

     Collisions involving commercial trucks often produce catastrophic injuries.  This is a natural result of the forces involved in trucking accidents.  Many commercial trucks weigh upwards of 80,000 pounds, compared with approximately 2,200 pounds for a typical car.  So, in a trucking accident, the enormous size and weight of the commercial truck produces serious injuries in almost every case.  Furthermore, commercial trucks often have bumpers or sides that do not match the typical height of a normal car bumper – which removes or negates one of the most common car safety devices.  Another unfortunate reality is that commercial trucks have a much higher ground clearance.  If a car impacts the side of a commercial truck, the top half of the car is often sheared completely off the bottom half of the car – with disastrous results for the car driver.  Our truck accident attorneys will investigate the accident scene and determine who is at fault for the truck accident.       

     It is critical that an experienced truck accident attorney handle your case.  Truck accident cases are much more complex than a typical car accident case.  Commercial truck drivers are governed by a different set of rules than other drivers.  Our truck accident attorneys will thoroughly investigate your case.  It is imperative to obtain and analyze evidence relating to the trucking accident.  For example, our truck accident attorneys will obtain:

•  Maintenance records
• Driving records
• Criminal records
• Safety and training manuals
• Transportation schedules
• Log books showing how much rest the driver had
• Payment schedules for early deliveries
• Other critical records and facts

Las Vegas 18 wheel Diesel truck accident at traffic intersection

In some cases, commercial truck accidents occur because of driver error or fatigue.  Truck drivers may not pay attention to the road, and not notice oncoming traffic.  They may also force their way into oncoming traffic thinking that any car can stop prior to hitting them.  A common cause of truck accidents is driver fatigue.  Commercial truck drivers are sometimes paid for each delivery, so this encourages truck drivers to stay on the road instead of resting or taking a break.  These financial incentives encourage truck drivers to continue driving when they are tired and dangerous – leading to truck accidents.  It can also encourage truck drivers to skip necessary maintenance because they are in a hurry to continue with their delivery rather than stopping to have brakes checked or other maintenance performed in a timely manner.  Our truck accident attorneys are experienced in investigating these possible causes of a truck accident. 

          
Truck accident victims may be entitled to significant financial compensation for their injuries.  Our truck accident attorneys will work hard to get you all the money you deserve.  You may receive money for your medical bills, pain and suffering, lost wages, future medical treatment, and a host of other reasons depending upon your case.  If you have suffered an injury, please contact our truck accident attorneys immediately so we may begin getting you the money you deserve.

The current construction on Las Vegas roadways and highways creates difficulties for riders.  Improperly marked roads or unsafe construction zones may appear suddenly and cause a motorcycle accident.  Our motorcycle accident attorneys will fully investigate the accident scene and determine who was responsible for any unsafe road condition.  Third, motorcycle equipment may cause a motorcycle accident or contribute to any injuries.  For example, faulty brakes or defective tires may be the primary cause of a particular motorcycle accident.  Protective clothing such as a helmet or riding clothing may also be defective, allowing injuries which should never have occurred.  Our motorcycle accident attorneys will investigate all possible factors causing the motorcycle accident and promptly pursue them to obtain the maximum compensation for an injured rider. 

  
Motorcycle accident victims may be entitled to significant financial compensation for their injuries.  Our motorcycle accident attorneys will work hard to get you all the money you deserve.  You may receive money for your medical bills, pain and suffering, lost wages, future medical treatment, and a host of other reasons depending upon your case.  If you have suffered an injury, please contact our motorcycle accident attorneys immediately so we may begin getting you the money you deserve.

         A slip and fall accident can happen anyplace there is an unsafe or dangerous condition.  Common locations include grocery stores, movie theatres, restaurants, department stores, and unmarked stairs or drop-offs.  Our slip and fall accident attorneys are able to evaluate your case and get you the maximum compensation for your injuries.  Slip and fall accident victims may be entitled to significant financial compensation for their injuries.  Our slip and fall accident attorneys will work hard to get you all the money you deserve.  You may receive money for your medical bills, pain and suffering, lost wages, future medical treatment, and a host of other reasons depending upon your case.  If you have suffered an injury, please contact our slip and fall accident attorneys immediately so we may begin getting you the money you deserve.

         A slip and fall accident can happen anyplace there is an unsafe or dangerous condition.  Common locations include grocery stores, movie theatres, restaurants, department stores, and unmarked stairs or drop-offs.  Our slip and fall accident attorneys are able to evaluate your case and get you the maximum compensation for your injuries.  Slip and fall accident victims may be entitled to significant financial compensation for their injuries.  Our slip and fall accident attorneys will work hard to get you all the money you deserve.  You may receive money for your medical bills, pain and suffering, lost wages, future medical treatment, and a host of other reasons depending upon your case.  If you have suffered an injury, please contact our slip and fall accident attorneys immediately so we may begin getting you the money you deserve.

       Car accidents in Las Vegas are an unfortunate reality.  The roads are plagued with overly aggressive drivers or drivers that do not pay attention to the road and their surroundings. Drivers like these cause accidents.
         Car accidents produce a wide range of injuries.  These range from broken bones caused by the traumatic forces of collisions, to soreness and stiffness associated with “whiplash.”  Our car accident attorneys frequently deal with insurance companies and notice they will typically try to deny all but the most obvious injuries.  Insurance companies will attempt to deny certain injuries that are difficult to diagnose, such as whiplash or other soft-tissue injuries.  They will also seek to refuse to reimburse medical expenses for diagnostic treatment such as an MRI or X-Rays.  However, when our experienced car accident attorneys contact the insurance companies, they know these delaying tactics will not work and that they cannot take further advantage of a victim.  Our car accident attorneys will work hard and force the insurance company to pay you all the money you deserve. 

       Unfortunately, car accidents frequently produce injuries.  An injured victim is first struck by another driver; and second victimized by an insurance company that refuses to pay the victim a proper settlement for their injuries.  Insurance companies have no incentive to properly compensate victims.  Insurance companies are not in business to pay money to victims, they are in business to make money.  Shortly after a collision, the insurance company may contact the victim and offer a small monetary settlement.  This is almost never a fair settlement, and the insurance companies hope the victim does not contact a car accident attorney.  Our car accident attorneys are able to get you the maximum compensation for your injuries, and prevent you from accepting a very unfair deal from a greedy insurance company. 

         Common injuries associated with car accidents are discussed in general “layman’s” terms below.  For a complete diagnosis and treatment, please consult with your treating physician.

1. Herniated disc – A serious condition caused when the internal fluid from a disc in a victim’s spine leaks out of the disc.  This causes severe irritation to the nearby nerves.  The body identifies the leaking fluid as a foreign substance and attacks the fluid, causing extreme pain because the “battle” takes place on the nearby nerve roots.  Please feel free to contact your treating doctor or our car accident attorneys for additional helpful information. 
2. Bulging or protruding disc – A “bulging” or “swelling” of the disc.  This condition is troubling because the swelling or bulging may cause the disc to push against a nearby nerve root.  This is associated with tingling or pain in the extremities, as well as back pain.  Please feel free to contact your treating doctor or our car accident attorneys for additional helpful information. 
3. Annular tearing – An internal disruption of the disc in a victim’s spine.  It is associated with a ripping of the disc and is very painful because there is an abundance of nerves present in the area.  Annular tearing can produce severe back pain and possibly leg pain because the effected nerves travel to the legs.  Please feel free to contact your treating doctor or our car accident attorneys for additional helpful information. 
4. Spinal cord injury – Any type of accident may cause an injury to the spinal cord.  This is a serious and life-altering injury.  It produces severe symptoms that will alter a person’s life.  Many times, a spinal cord injury produces paralysis or other loss of motion.  Unfortunately, many of these injuries are permanent and the victim will never recover fully from the accident.  Victims with a spinal injury may never be able to walk again.  In addition, the victim may require full-time care, such as a nurse, and may never be able to work again.  They will also require ongoing medical care and financial assistance for the rest of their lives.   Please feel free to contact your treating doctor or our car accident attorneys for additional helpful information. 
5. Traumatic brain injury (TBI) – Any type of car accident injuring the head may cause a serious condition called Traumatic Brain Injury (TBI).  This is a serious and life-altering injury.  Traumatic Brain Injury is a serious brain injury that many individuals never recover from.  It produces severe symptoms and may alter a victim’s personality, motor skills, communication skills, speech, and ability to reason or think clearly.  Many victims of Traumatic Brain Injury are never able to work again.  They will also require ongoing medical care and financial assistance for the rest of their lives.   Please feel free to contact your treating doctor or our car accident attorneys for additional helpful information. 
6. Other injuries – any part of the body can be injured in a car accident.  Some of the common injuries are discussed above.  For details on additional injuries, please contact our experienced car accident attorneys. 

Car accident victims may be entitled to significant financial compensation for their injuries.  Our car accident attorneys will work hard to get you all the money you deserve.  You may receive money for your medical bills, pain and suffering, lost wages, future medical treatment, and a host of other reasons depending upon your case.  If you have suffered an injury, please contact our car accident attorneys immediately so we may begin getting you the medical treatment and money you deserve.   

Mr. Harmon earned his Juris Doctor degree from Washington and Lee School of Law and his Bachelor degree, with honors, from Franklin & Marshall College. While at Franklin & Marshall College, Mr. Harmon worked as a Symbolic Logic Tutor and Classical History Preceptor. Prior to practicing law, Mr. Harmon was a member of the United States Military and attended the United States Army Drill Sergeant’s School.

Mr. Harmon began his legal career at the law firm of Harmon & Davies, P.C. Corporate clients were attracted to his aggressive results-oriented approach to litigation. His notable clients included Mars, Inc., Kal Kan Foods, Masterfoods USA, Sysco, Uncle Ben’s, and Amoi Electronics. Mr. Harmon spent approximately twelve (12) years at Harmon & Davies honing his trial skills.

Mr. Harmon later departed and formed his own law firm concentrating in the area that he enjoyed most – helping injured individuals. He personally handles all aspects of each client’s case and relentlessly pushes each case towards the most favorable resolution.

Mr. Harmon is admitted to the Nevada Bar, California Bar, and Pennsylvania Bar. He is an active member of the Nevada Trial Lawyers Association. He enjoys outdoor activities and spending time with his two year old daughter.

Joshua L. Harmon, Esq. is the principal of the Law Office of Joshua L. Harmon. He concentrates his practice in personal injury law.

Chapter 13 Bankruptcy is also known as a reorganization bankruptcy. Chapter13 bankruptcy is filed by individuals who want to pay off their debts over a period of three to five years. This type of bankruptcy appeals to individuals who have non-exempt property that they want to keep. It is also only an option for individuals who have predictable income and whose income is sufficient to pay their reasonable expenses with some amount left over to pay off their debts.

Source=http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/process.html

Liquidation Under the Bankruptcy Code

The chapter of the Bankruptcy Code providing for “liquidation,” ( i.e., the sale of a debtor’s nonexempt property and the distribution of the proceeds to creditors.)

a. Alternatives to Chapter 7
b. Background
c. Chapter 7 Eligibility
d. How Chapter 7 Works
e. Role of the Case Trustee
f. The Chapter 7 Discharge

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Alternatives to Chapter 7

Debtors should be aware that there are several alternatives to chapter 7 relief. For example, debtors who are engaged in business, including corporations, partnerships, and sole proprietorships, may prefer to remain in business and avoid liquidation. Such debtors should consider filing a petition under chapter 11 of the Bankruptcy Code. Under chapter 11, the debtor may seek an adjustment of debts, either by reducing the debt or by extending the time for repayment, or may seek a more comprehensive reorganization. Sole proprietorships may also be eligible for relief under chapter 13 of the Bankruptcy Code.

In addition, individual debtors who have regular income may seek an adjustment of debts under chapter 13 of the Bankruptcy Code. A particular advantage of chapter 13 is that it provides individual debtors with an opportunity to save their homes from foreclosure by allowing them to “catch up” past due payments through a payment plan. Moreover, the court may dismiss a chapter 7 case filed by an individual whose debts are primarily consumer rather than business debts if the court finds that the granting of relief would be an abuse of chapter 7. 11 U.S.C. § 707(b).

If the debtor’s “current monthly income”(1) is more than the state median, the Bankruptcy Code requires application of a “means test” to determine whether the chapter 7 filing is presumptively abusive. Abuse is presumed if the debtor’s aggregate current monthly income over 5 years, net of certain statutorily allowed expenses, is more than (i) $10,950, or (ii) 25% of the debtor’s nonpriority unsecured debt, as long as that amount is at least $6,575. (2) The debtor may rebut a presumption of abuse only by a showing of special circumstances that justify additional expenses or adjustments of current monthly income. Unless the debtor overcomes the presumption of abuse, the case will generally be converted to chapter 13 (with the debtor’s consent) or will be dismissed. 11 U.S.C. § 707(b)(1).

Debtors should also be aware that out-of-court agreements with creditors or debt counseling services may provide an alternative to a bankruptcy filing.

Background

A chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor’s nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. Part of the debtor’s property may be subject to liens and mortgages that pledge the property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain “exempt” property; but a trustee will liquidate the debtor’s remaining assets. Accordingly, potential debtors should realize that the filing of a petition under chapter 7 may result in the loss of property.

Chapter 7 Eligibility

To qualify for relief under chapter 7 of the Bankruptcy Code, the debtor may be an individual, a partnership, or a corporation or other business entity. 11 U.S.C. §§ 101(41), 109(b). Subject to the means test described above for individual debtors, relief is available under chapter 7 irrespective of the amount of the debtor’s debts or whether the debtor is solvent or insolvent. An individual cannot file under chapter 7 or any other chapter, however, if during the preceding 180 days a prior bankruptcy petition was dismissed due to the debtor’s willful failure to appear before the court or comply with orders of the court, or the debtor voluntarily dismissed the previous case after creditors sought relief from the bankruptcy court to recover property upon which they hold liens. 11 U.S.C. §§ 109(g), 362(d) and (e). In addition, no individual may be a debtor under chapter 7 or any chapter of the Bankruptcy Code unless he or she has, within 180 days before filing, received credit counseling from an approved credit counseling agency either in an individual or group briefing. 11 U.S.C. §§ 109, 111. There are exceptions in emergency situations or where the U.S. trustee (or bankruptcy administrator) has determined that there are insufficient approved agencies to provide the required counseling. If a debt management plan is developed during required credit counseling, it must be filed with the court.

One of the primary purposes of bankruptcy is to discharge certain debts to give an honest individual debtor a “fresh start.” The debtor has no liability for discharged debts. In a chapter 7 case, however, a discharge is only available to individual debtors, not to partnerships or corporations. 11 U.S.C. § 727(a)(1). Although an individual chapter 7 case usually results in a discharge of debts, the right to a discharge is not absolute, and some types of debts are not discharged. Moreover, a bankruptcy discharge does not extinguish a lien on property.

How Chapter 7 Works

A chapter 7 case begins with the debtor filing a petition with the bankruptcy court serving the area where the individual lives or where the business debtor is organized or has its principal place of business or principal assets. (3) In addition to the petition, the debtor must also file with the court: (1) schedules of assets and liabilities; (2) a schedule of current income and expenditures; (3) a statement of financial affairs; and (4) a schedule of executory contracts and unexpired leases. Fed. R. Bankr. P. 1007(b). Debtors must also provide the assigned case trustee with a copy of the tax return or transcripts for the most recent tax year as well as tax returns filed during the case (including tax returns for prior years that had not been filed when the case began). 11 U.S.C. § 521. Individual debtors with primarily consumer debts have additional document filing requirements. They must file: a certificate of credit counseling and a copy of any debt repayment plan developed through credit counseling; evidence of payment from employers, if any, received 60 days before filing; a statement of monthly net income and any anticipated increase in income or expenses after filing; and a record of any interest the debtor has in federal or state qualified education or tuition accounts. Id. A husband and wife may file a joint petition or individual petitions. 11 U.S.C. § 302(a). Even if filing jointly, a husband and wife are subject to all the document filing requirements of individual debtors. (The Official Forms may be purchased at legal stationery stores or downloaded from the internet at www.uscourts.gov/bkforms/index.html. They are not available from the court.)

The courts must charge a $245 case filing fee, a $39 miscellaneous administrative fee, and a $15 trustee surcharge. Normally, the fees must be paid to the clerk of the court upon filing. With the court’s permission, however, individual debtors may pay in installments. 28 U.S.C. § 1930(a); Fed. R. Bankr. P. 1006(b); Bankruptcy Court Miscellaneous Fee Schedule, Item 8. The number of installments is limited to four, and the debtor must make the final installment no later than 120 days after filing the petition. Fed. R. Bankr. P. 1006. For cause shown, the court may extend the time of any installment, provided that the last installment is paid not later than 180 days after filing the petition. Id. The debtor may also pay the $39 administrative fee and the $15 trustee surcharge in installments. If a joint petition is filed, only one filing fee, one administrative fee, and one trustee surcharge are charged. Debtors should be aware that failure to pay these fees may result in dismissal of the case. 11 U.S.C. § 707(a).

If the debtor’s income is less than 150% of the poverty level (as defined in the Bankruptcy Code), and the debtor is unable to pay the chapter 7 fees even in installments, the court may waive the requirement that the fees be paid. 28 U.S.C. § 1930(f).

In order to complete the Official Bankruptcy Forms that make up the petition, statement of financial affairs, and schedules, the debtor must provide the following information:

1. A list of all creditors and the amount and nature of their claims;
2. The source, amount, and frequency of the debtor’s income;
3. A list of all of the debtor’s property; and
4. A detailed list of the debtor’s monthly living expenses, i.e., food, clothing, shelter, utilities, taxes, transportation, medicine, etc.
Married individuals must gather this information for their spouse regardless of whether they are filing a joint petition, separate individual petitions, or even if only one spouse is filing. In a situation where only one spouse files, the income and expenses of the non-filing spouse is required so that the court, the trustee and creditors can evaluate the household’s financial position.

Among the schedules that an individual debtor will file is a schedule of “exempt” property. The Bankruptcy Code allows an individual debtor (4) to protect some property from the claims of creditors because it is exempt under federal bankruptcy law or under the laws of the debtor’s home state. 11 U.S.C. § 522(b). Many states have taken advantage of a provision in the Bankruptcy Code that permits each state to adopt its own exemption law in place of the federal exemptions. In other jurisdictions, the individual debtor has the option of choosing between a federal package of exemptions or the exemptions available under state law. Thus, whether certain property is exempt and may be kept by the debtor is often a question of state law. The debtor should consult an attorney to determine the exemptions available in the state where the debtor lives.

Filing a petition under chapter 7 “automatically stays” (stops) most collection actions against the debtor or the debtor’s property. 11 U.S.C. § 362. But filing the petition does not stay certain types of actions listed under 11 U.S.C. § 362(b), and the stay may be effective only for a short time in some situations. The stay arises by operation of law and requires no judicial action. As long as the stay is in effect, creditors generally may not initiate or continue lawsuits, wage garnishments, or even telephone calls demanding payments. The bankruptcy clerk gives notice of the bankruptcy case to all creditors whose names and addresses are provided by the debtor.

Between 20 and 40 days after the petition is filed, the case trustee (described below) will hold a meeting of creditors. If the U.S. trustee or bankruptcy administrator (5) schedules the meeting at a place that does not have regular U.S. trustee or bankruptcy administrator staffing, the meeting may be held no more than 60 days after the order for relief. Fed. R. Bankr. P. 2003(a). During this meeting, the trustee puts the debtor under oath, and both the trustee and creditors may ask questions. The debtor must attend the meeting and answer questions regarding the debtor’s financial affairs and property. 11 U.S.C. § 343. If a husband and wife have filed a joint petition, they both must attend the creditors’ meeting and answer questions. Within 10 days of the creditors’ meeting, the U.S. trustee will report to the court whether the case should be presumed to be an abuse under the means test described in 11 U.S.C. § 704(b).

It is important for the debtor to cooperate with the trustee and to provide any financial records or documents that the trustee requests. The Bankruptcy Code requires the trustee to ask the debtor questions at the meeting of creditors to ensure that the debtor is aware of the potential consequences of seeking a discharge in bankruptcy such as the effect on credit history, the ability to file a petition under a different chapter, the effect of receiving a discharge, and the effect of reaffirming a debt. Some trustees provide written information on these topics at or before the meeting to ensure that the debtor is aware of this information. In order to preserve their independent judgment, bankruptcy judges are prohibited from attending the meeting of creditors. 11 U.S.C. § 341(c).

In order to accord the debtor complete relief, the Bankruptcy Code allows the debtor to convert a chapter 7 case to case under chapter 11, 12 or 13 (6) as long as the debtor is eligible to be a debtor under the new chapter. However, a condition of the debtor’s voluntary conversion is that the case has not previously been converted to chapter 7 from another chapter. 11 U.S.C. § 706(a). Thus, the debtor will not be permitted to convert the case repeatedly from one chapter to another.

Role of the Case Trustee

When a chapter 7 petition is filed, the U.S. trustee (or the bankruptcy court in Alabama and North Carolina) appoints an impartial case trustee to administer the case and liquidate the debtor’s nonexempt assets. 11 U.S.C. §§ 701, 704. If all the debtor’s assets are exempt or subject to valid liens, the trustee will normally file a “no asset” report with the court, and there will be no distribution to unsecured creditors. Most chapter 7 cases involving individual debtors are no asset cases. But if the case appears to be an “asset” case at the outset, unsecured creditors (7) must file their claims with the court within 90 days after the first date set for the meeting of creditors. Fed. R. Bankr. P. 3002(c). A governmental unit, however, has 180 days from the date the case is filed to file a claim. 11 U.S.C. § 502(b)(9). In the typical no asset chapter 7 case, there is no need for creditors to file proofs of claim because there will be no distribution. If the trustee later recovers assets for distribution to unsecured creditors, the Bankruptcy Court will provide notice to creditors and will allow additional time to file proofs of claim. Although a secured creditor does not need to file a proof of claim in a chapter 7 case to preserve its security interest or lien, there may be other reasons to file a claim. A creditor in a chapter 7 case who has a lien on the debtor’s property should consult an attorney for advice.

Commencement of a bankruptcy case creates an “estate.” The estate technically becomes the temporary legal owner of all the debtor’s property. It consists of all legal or equitable interests of the debtor in property as of the commencement of the case, including property owned or held by another person if the debtor has an interest in the property. Generally speaking, the debtor’s creditors are paid from nonexempt property of the estate.

The primary role of a chapter 7 trustee in an asset case is to liquidate the debtor’s nonexempt assets in a manner that maximizes the return to the debtor’s unsecured creditors. The trustee accomplishes this by selling the debtor’s property if it is free and clear of liens (as long as the property is not exempt) or if it is worth more than any security interest or lien attached to the property and any exemption that the debtor holds in the property. The trustee may also attempt to recover money or property under the trustee’s “avoiding powers.” The trustee’s avoiding powers include the power to: set aside preferential transfers made to creditors within 90 days before the petition; undo security interests and other prepetition transfers of property that were not properly perfected under nonbankruptcy law at the time of the petition; and pursue nonbankruptcy claims such as fraudulent conveyance and bulk transfer remedies available under state law. In addition, if the debtor is a business, the bankruptcy court may authorize the trustee to operate the business for a limited period of time, if such operation will benefit creditors and enhance the liquidation of the estate. 11 U.S.C. § 721.

Section 726 of the Bankruptcy Code governs the distribution of the property of the estate. Under § 726, there are six classes of claims; and each class must be paid in full before the next lower class is paid anything. The debtor is only paid if all other classes of claims have been paid in full. Accordingly, the debtor is not particularly interested in the trustee’s disposition of the estate assets, except with respect to the payment of those debts which for some reason are not dischargeable in the bankruptcy case. The individual debtor’s primary concerns in a chapter 7 case are to retain exempt property and to receive a discharge that covers as many debts as possible.

The Chapter 7 Discharge

A discharge releases individual debtors from personal liability for most debts and prevents the creditors owed those debts from taking any collection actions against the debtor. Because a chapter 7 discharge is subject to many exceptions, though, debtors should consult competent legal counsel before filing to discuss the scope of the discharge. Generally, excluding cases that are dismissed or converted, individual debtors receive a discharge in more than 99 percent of chapter 7 cases. In most cases, unless a party in interest files a complaint objecting to the discharge or a motion to extend the time to object, the bankruptcy court will issue a discharge order relatively early in the case – generally, 60 to 90 days after the date first set for the meeting of creditors. Fed. R. Bankr. P. 4004(c).

The grounds for denying an individual debtor a discharge in a chapter 7 case are narrow and are construed against the moving party. Among other reasons, the court may deny the debtor a discharge if it finds that the debtor: failed to keep or produce adequate books or financial records; failed to explain satisfactorily any loss of assets; committed a bankruptcy crime such as perjury; failed to obey a lawful order of the bankruptcy court; fraudulently transferred, concealed, or destroyed property that would have become property of the estate; or failed to complete an approved instructional course concerning financial management. 11 U.S.C. § 727; Fed. R. Bankr. P. 4005.

Secured creditors may retain some rights to seize property securing an underlying debt even after a discharge is granted. Depending on individual circumstances, if a debtor wishes to keep certain secured property (such as an automobile), he or she may decide to “reaffirm” the debt. A reaffirmation is an agreement between the debtor and the creditor that the debtor will remain liable and will pay all or a portion of the money owed, even though the debt would otherwise be discharged in the bankruptcy. In return, the creditor promises that it will not repossess or take back the automobile or other property so long as the debtor continues to pay the debt.

If the debtor decides to reaffirm a debt, he or she must do so before the discharge is entered. The debtor must sign a written reaffirmation agreement and file it with the court. 11 U.S.C. § 524(c). The Bankruptcy Code requires that reaffirmation agreements contain an extensive set of disclosures described in 11 U.S.C. § 524(k). Among other things, the disclosures must advise the debtor of the amount of the debt being reaffirmed and how it is calculated and that reaffirmation means that the debtor’s personal liability for that debt will not be discharged in the bankruptcy. The disclosures also require the debtor to sign and file a statement of his or her current income and expenses which shows that the balance of income paying expenses is sufficient to pay the reaffirmed debt. If the balance is not enough to pay the debt to be reaffirmed, there is a presumption of undue hardship, and the court may decide not to approve the reaffirmation agreement. Unless the debtor is represented by an attorney, the bankruptcy judge must approve the reaffirmation agreement.

If the debtor was represented by an attorney in connection with the reaffirmation agreement, the attorney must certify in writing that he or she advised the debtor of the legal effect and consequences of the agreement, including a default under the agreement. The attorney must also certify that the debtor was fully informed and voluntarily made the agreement and that reaffirmation of the debt will not create an undue hardship for the debtor or the debtor’s dependants. 11 U.S.C. § 524(k). The Bankruptcy Code requires a reaffirmation hearing if the debtor has not been represented by an attorney during the negotiating of the agreement, or if the court disapproves the reaffirmation agreement.11 U.S.C. § 524(d) and (m). The debtor may repay any debt voluntarily, however, whether or not a reaffirmation agreement exists. 11 U.S.C. § 524(f).

An individual receives a discharge for most of his or her debts in a chapter 7 bankruptcy case. A creditor may no longer initiate or continue any legal or other action against the debtor to collect a discharged debt. But not all of an individual’s debts are discharged in chapter 7. Debts not discharged include debts for alimony and child support, certain taxes, debts for certain educational benefit overpayments or loans made or guaranteed by a governmental unit, debts for willful and malicious injury by the debtor to another entity or to the property of another entity, debts for death or personal injury caused by the debtor’s operation of a motor vehicle while the debtor was intoxicated from alcohol or other substances, and debts for certain criminal restitution orders.11 U.S.C. § 523(a). The debtor will continue to be liable for these types of debts to the extent that they are not paid in the chapter 7 case. Debts for money or property obtained by false pretenses, debts for fraud or defalcation while acting in a fiduciary capacity, and debts for willful and malicious injury by the debtor to another entity or to the property of another entity will be discharged unless a creditor timely files and prevails in an action to have such debts declared nondischargeable. 11 U.S.C. § 523(c); Fed. R. Bankr. P. 4007(c).

The court may revoke a chapter 7 discharge on the request of the trustee, a creditor, or the U.S. trustee if the discharge was obtained through fraud by the debtor, if the debtor acquired property that is property of the estate and knowingly and fraudulently failed to report the acquisition of such property or to surrender the property to the trustee, or if the debtor (without a satisfactory explanation) makes a material misstatement or fails to provide documents or other information in connection with an audit of the debtor’s case. 11 U.S.C. § 727(d).

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NOTES

1. The “current monthly income” received by the debtor is a defined term in the Bankruptcy Code and means the average monthly income received over the six calendar months before commencement of the bankruptcy case, including regular contributions to household expenses from nondebtors and including income from the debtor’s spouse if the petition is a joint petition, but not including social security income or certain payments made because the debtor is the victim of certain crimes. 11 U.S.C. § 101(10A). return to text
2. To determine whether a presumption of abuse arises, all individual debtors with primarily consumer debts who file a chapter 7 case must complete Official Bankruptcy Form B22A, entitled “Statement of Current Monthly Income and Means Test Calculation – For Use in Chapter 7.” (The Official Forms may be purchased at legal stationery stores or downloaded from the internet at www.uscourts.gov/bkforms/index.html. They are not available from the court.) return to text
3. An involuntary chapter 7 case may be commenced under certain circumstances by a petition filed by creditors holding claims against the debtor. 11 U.S.C. § 303. return to text
4. Each debtor in a joint case (both husband and wife) can claim exemptions under the federal bankruptcy laws. 11 U.S.C. § 522(m). return to text
5. In North Carolina and Alabama, bankruptcy administrators perform similar functions that U.S. trustees perform in the remaining 48 states. These duties include establishing a panel of private trustees to serve as trustees in chapter 7 cases and supervising the administration of cases and trustees in cases under chapters 7, 11, 12, and 13 of the Bankruptcy Code. The bankruptcy administrator program is administered by the Administrative Office of the United States Courts, while the U.S. trustee program is administered by the Department of Justice. For purposes of this publication, references to U.S. trustees are also applicable to bankruptcy administrators. return to text
6. A fee is charged for converting, on request of the debtor, a case under chapter 7 to a case under chapter 11. The fee charged is the difference between the filing fee for a chapter 7 and the filing fee for a chapter 11. 28 U.S.C. § 1930(a). Currently, the difference is $755. Id. There is no fee for converting from chapter 7 to chapter 13. return to text
7. Unsecured debts generally may be defined as those for which the extension of credit was based purely upon an evaluation by the creditor of the debtor’s ability to pay, as opposed to secured debts, for which the extension of credit was based upon the creditor’s right to seize collateral on default, in addition to the debtor’s ability to pay. return to text

Source:  http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/process.html

Source:http://www.makinghomeaffordable.gov/pr_07012009.html

Source: http://www.makinghomeaffordable.gov/pr_07302009.html

What is “Making Home Affordable” all about?
The Making Home Affordable Program is part of the Obama Administration’s broad, comprehensive strategy to get the economy and the housing market back on track. The Making Home Affordable Program offers two different potential solutions for borrowers: (1) refinancing mortgage loans, through the Home Affordable Refinance Program (HARP), and (2) modifying mortgage loans, through the Home Affordable Modification Program (HAMP).

MHA FAQ’S

REVISED AS OF JULY 16, 2009
BORROWER
FREQUENTLY ASKED QUESTIONS
What is “Making Home Affordable” all about?
The Making Home Affordable Program is part of the Obama Administration’s broad, comprehensive strategy to get the economy and the housing market back on track. The Making Home Affordable Program offers two different potential solutions for borrowers: (1) refinancing mortgage loans, through the Home Affordable Refinance Program (HARP), and (2) modifying mortgage loans, through the Home Affordable Modification Program (HAMP).
HOME AFFORDABLE REFINANCE
1.
I’m current on my mortgage. Will a refinance under the Home Affordable Refinance Program (HARP) help me?
Eligible borrowers who are current on their mortgages but have been unable to take advantage of today’s lower interest rates because their homes have decreased in value, may now have the opportunity to refinance. Through a refinance under HARP, Fannie Mae and Freddie Mac will allow the refinancing of mortgage loans that they own or that they guaranteed in mortgage backed securities.
2.
How do I know if I am eligible for a refinance under HARP?
You may be eligible if:
•
The loan on your property is owned or guaranteed by Fannie Mae or Freddie Mac (Don’t know? See below);
•
At the time you apply, you are current on your mortgage payments (“current” generally means that you have not been more than 30 days late on your mortgage payment in the last 12 months, or, if you have had the loan for less than 12 months, you have never missed a payment);
•
The amount you owe on your first lien mortgage does not exceed 125 percent of the current market value of your property;
•
You have a reasonable ability to pay the new mortgage payments; and
•
The refinance improves the long term affordability or stability of your loan.
3.
How do I know if a refinance under HARP will improve the long term affordability or stability of my loan?
Your lender will give you a “Good Faith Estimate” and a Truth in Lending Statement; between the two disclosures you will see your new interest rate, mortgage payment and the amount you will pay over the life of the loan. Compare this to your current loan terms. If the proposed new payment is not an improvement, refinancing may not be right for you. But consider that refinancing from an adjustable rate loan (an ARM) to a fixed rate loan or eliminating higher risk loan terms such as interest only payments or balloon payments may also provide long term stability. For example, refinancing from an ARM with a low introductory teaser rate or from an interest-only mortgage into a fixed-rate loan product may actually increase your payment in the short term, but would improve your ability to sustain mortgage payments over the long-term.
4.
How do I know if my loan is owned or has been guaranteed by Fannie Mae or Freddie Mac?
You should call your mortgage lender or servicer (the organization to whom you make your monthly mortgage payments) and ask about the program.
Both Fannie Mae and Freddie Mac have established toll-free telephone numbers and web submission processes to make this data available. Borrowers can enter information to determine if either agency owns or guaranteed the loan. This information is not a guarantee of eligibility for a refinance under HARP, as other qualifying criteria must also be met.
•
For Fannie Mae,
o
1-800-7FANNIE (8am to 8pm EST Mon.-Fri.).
o
www.fanniemae.com/loanlookup
•
Freddie Mac
o
1-800-FREDDIE (8am to 8pm EST Mon.-Fri.)
o
www.freddiemac.com/mymortgage
5.
I owe more than my property is worth. Do I still qualify for a refinance under HARP?
Eligible loans will include those where the first lien mortgage does not exceed 125 percent of the current market value of the property. For example, if your property is worth $200,000 but you owe $250,000 or less on your first lien mortgage you may qualify. The current market value of your property will be determined after you apply to refinance.
6.
I have both a first lien and a second lien mortgage. Do I still qualify for a refinance under HARP?
As long as the amount due on the first lien mortgage is less than 125 percent of the value of the property, borrowers with more than one mortgage may be eligible for a
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refinance under HARP. Your eligibility will depend, in part, on two additional requirements: first, that the lender that has your junior lien mortgage must agree to remain in a junior lien position, and second, on your ability to meet the new payment terms on the first lien mortgage.
7.
Will refinancing lower my payments?
The objective of a refinance under HARP is to provide creditworthy borrowers who have shown a commitment to paying their mortgage, the opportunity to get into a new mortgage with payments that are affordable today and sustainable for the life of the loan. Borrowers whose mortgage interest rates are much higher than the current market rate should see an immediate reduction in their payments.
Borrowers who are paying interest only, or who have a low introductory rate that will increase in the future, may not see their current payment go down if they refinance to a fixed rate and payment. These borrowers, however, could save a great deal over the life of the loan by avoiding future mortgage payment increases. When you submit a loan application, your lender will give you a “Good Faith Estimate” and a “Truth in Lending Statement” that includes your new interest rate, mortgage payment and the amount that you will pay over the life of the loan. Compare this to your current loan terms. If it is not an improvement, a refinancing may not be right for you.
8.
What are the interest rate and other terms of a refinance under HARP?
The rate will be based on market rates in effect at the time of the refinance and any associated points and fees quoted by your lender. Interest rates may vary across lenders and over time as market rates adjust. The refinanced loans must have no prepayment penalties or balloon payments.
9.
Will a refinance under HARP reduce the amount that I owe on my loan?
No. The objective of a refinance under HARP is to help borrowers get into more affordable or stable loans. Refinancing will not reduce the principal amount you owe to the first lien mortgage holder or any other debt you owe. However, refinancing should save you money by reducing the amount of interest that you pay over the life of the loan.
10.
Can I get cash out to pay other debts?
No. However, borrowers whose loans are owned or guaranteed by Fannie Mae may be eligible to finance all closing costs and obtain a small amount of cash (up to $250) through the refinance if there is sufficient equity. Borrowers whose loans are owned or guaranteed by Freddie Mac may be eligible to finance transaction costs equal to the lesser of 4 percent of the current unpaid principal
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balance of the loan being refinanced or $5,000. In addition, such borrowers may obtain up to $250 cash.
11.
How do I apply for a refinance under HARP?
You should call your mortgage lender and ask for a Home Affordable Refinance application. The number is on your monthly mortgage bill or coupon book. Please be patient. Lenders and servicers are implementing the program now and it may take time before they are ready to process all applications. In the meantime, it will help your lender and speed up the application process if you gather some information and documents before you call.
Alternately, you may apply through a lender approved to do business with Fannie Mae or Freddie Mac. Nearly all major banks and mortgage brokers have this approval.
12.
What documentation will I need?
It will help your lender if you gather some information and documents before you call. Generally, you will need:
•
Information about the monthly gross (before tax) income of all the borrowers on your loan, including recent pay stubs if you receive them, or documentation of income you receive from other sources.
•
Your most recent income tax return.
•
Information about any junior lien mortgage on the house.
•
Account balances and minimum monthly payments due on all of your credit cards.
•
Account balances and monthly payments on all your other debts such as student loans and car loans.
13.
I am delinquent on my mortgage. Will I qualify for a refinance under HARP?
No. Borrowers who are currently delinquent or have been 30 days overdue more than once during the past 12 months generally will not qualify. You should contact your servicer to see if a modification under the Home Affordable Modification Program is an option for you.
14.
Will I need mortgage insurance?
If your existing loan has private mortgage insurance, you will need the same amount of insurance coverage for a refinance under HARP. If your existing loan does not have private mortgage insurance, it will not be required as part of a refinance under HARP.
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15.
How long will refinances under HARP be available?
The program expires on June 10, 2010. Your refinance under HARP must have a mortgage note date on or before that date.
HOME AFFORDABLE MODIFICATION
1.
Can the Making Home Affordable Program help me if my loan is not owned or guaranteed by Fannie Mae or Freddie Mac?
Yes. The Program helps borrowers who are struggling to keep their loans current or who are already behind on their mortgage payments. By providing mortgage loan servicers with financial incentives to modify existing first lien mortgages, the Treasury hopes to help homeowners avoid foreclosure regardless of who owns or guarantees the mortgage.
2.
How do I know if I am eligible for a modification under the Home Affordable Modification Program (HAMP)?
To apply for a modification under HAMP, you must:
•
Be the owner-occupant of a one to four unit home;
•
Have an unpaid principal balance that is equal to or less than:
o
1 Unit: $729,750
o
2 Units: $934,200
o
3 Units: $1,129,250
o
4 Units: $1,403,400;
•
Have a first lien mortgage that was originated on or before January 1, 2009;
•
Have a monthly mortgage payment (including taxes, insurance, and home owners association dues) greater than 31 percent of your monthly gross (pre-tax) income; and
•
Have a mortgage payment that is not affordable due to a financial hardship that can be documented.
If you answered YES to all of these questions, you may be eligible for a modification under HAMP. Only your servicer will be able to tell you if you qualify.
3.
Do I need to be behind on my mortgage payments to be eligible for a modification under HAMP?
No. Responsible borrowers who are struggling to remain current on their mortgage payments are eligible if they are at risk of imminent default. An example of imminent default might be that the borrower had or will have a significant increase in their mortgage payment that they cannot afford. If you have had or anticipate a
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significant increase in your mortgage payment or if you have had a significant reduction in income or have experienced some other hardship that makes it impossible to pay your mortgage, contact your servicer. You will be required to document your income and expenses and provide evidence of the hardship or change in your circumstances.
4.
I have a junior lien mortgage. Am I still eligible?
Yes, but only the first lien mortgage is eligible for a modification under HAMP.
5.
How do I know if my servicer is participating? Are all servicers required to participate?
Participation is mandatory for servicers of loans owned or guaranteed by Fannie Mae or Freddie Mac (Government Sponsored Enterprises or GSEs). Participation in HAMP is voluntary for servicers of non-GSE loans. However, substantial incentives are available to servicers, investors and borrowers who complete modifications under HAMP, and most major servicers already have committed to the Program. A current list of participating servicers is available at www.MakingHomeAffordable.gov. Servicers not currently listed have until December 31, 2009 to opt into the Program.
Servicers of non-GSE loans sign a contract with Fannie Mae, as Treasury’s financial agent, through which they agree to review every potentially eligible borrower who asks to be considered for the Making Home Affordable Program. To ensure that a borrower currently at risk of foreclosure has the opportunity to apply for a modification under HAMP, participating servicers may not proceed with a foreclosure sale until the borrower has been evaluated for a HAMP modification and, if eligible, a trial modification offer has been made.
6.
What will my servicer do to determine if I report a hardship?
If you report a hardship, your servicer will:
•
Determine whether your loan meets the minimum eligibility criteria (i.e., owner- occupied; originated on or before January 1, 2009; and unpaid principal balance equal to or less the loan limit for the number of units involved).
•
If your loan meets the minimum eligibility criteria, ask about current income, assets and expenses, as well as any specific hardship circumstances to determine if you are unable to make your mortgage payment. (Your servicer may initially accept verbal income and expense information. However, you will need to provide verifying documentation before a final modification is approved.)
•
Determine if your monthly first lien mortgage payment is greater than 31 percent (approximately one-third) of your gross or pre-tax monthly income.
•
Apply a value test to determine whether the value of the loan to the investor will be greater if the loan is modified (factoring in the government’s incentive payments). For example, loans held by borrowers who have a lot of equity or
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whose incomes are very low in relation to the value of their homes probably will not pass this value test. If the modified loan is not of greater value, the investor and servicer may still modify the loan. However, modification in such cases is not required.
•
If the modified loan is of greater value, the servicer must offer you a modification under HAMP, and, if you accept the offer, will put you on a trial modification (typically three months) at the new payment level.
•
If you successfully make all of the required trial payments during the trial period and the income and expense information you provided is determined to be accurate, your servicer will execute a permanent modification agreement.
NOTE: You will be required to sign the modification agreement and other documents and attest that all of the information you provided to your servicer was true and accurate. Misrepresenting any information required for the Home Affordable Modification is a violation of Federal law and has serious legal consequences.
7.
Is the interest rate subject to change during the term of the HAMP modification?
If the modified rate is below the market rate as determined from the Freddie Mac Primary Mortgage Market Survey rate on the date the modification agreement is prepared, the modified rate will be fixed for a minimum of five years as specified in your modification agreement. Beginning in year six, the rate may increase no more than one percentage point per year until it reaches the market rate at the time the modification agreement is prepared. Your rate can never be higher than the market rate as indicated in your modification agreement. If the modified rate is at or above the market rate at the time the modification agreement is prepared, however, the modified rate is fixed for the life of the loan.
8.
Will a modification under HAMP include property taxes and homeowners insurance?
Yes. All loans modified under HAMP must include an escrow account for payment of future property taxes and hazard insurance, unless prohibited by state law. If your existing loan does not include an escrow account, one will be established. A new escrow account may require collection of a sufficient reserve to pay the taxes and insurance on or before they are next due. The reserve amount cannot be added to the modified loan amount. The servicer may give you the option of paying the reserve amount at the time the loan is modified or the option of spreading the amount over a period of 60 months and including it in the monthly escrow payment.
9.
How low can my interest rate go?
Treasury is providing incentives to your servicer to write the interest down to as low as 2 percent, if necessary to get to a payment that you can afford. Each borrower’s
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interest rate will only be reduced to a point sufficient to get the modified payment to equal 31% of the borrower’s gross monthly income. Not all borrowers will need a rate reduction to 2 percent in order to achieve a monthly mortgage payment that is affordable.
10.
What happens if that is not enough to get to an affordable payment?
If a 2 percent interest rate does not result in a payment that is affordable (no more than 31 percent of your gross monthly income), your servicer may:
•
First try to extend your payment term. At the servicer’s option the term of the loan could be extended up to 40 years.
•
If that is still not sufficient, your servicer may defer a portion of the principal amount you owe until the maturity of the loan. This is called a principal forbearance. However please note that with a forbearance, you will still owe the principal; but repayment is deferred until a later date. See Question 11 for more information on principal forbearance.
•
A portion of the principal could be also be forgiven. This is optional on the part of the servicer. However there is no requirement for principal forgiveness and there is no guarantee that your servicer will offer principal forgiveness.
11.
Could I end up with a balloon payment?
Yes. If your servicer determines that a principal forbearance is required to get your monthly mortgage payment to an affordable level, the principal forbearance amount, say for example this was $20,000, would be subtracted from the amount used to calculate your monthly mortgage payment, but you would still owe the money. You would have a $20,000 balloon payment that accrues no interest and was not due until you paid off your loan, refinanced or sold your house.
12.
What happens if I am unable to make payments during the trial period?
Borrowers who are unable to make three payments by the end of the trial period are not eligible for a modification under HAMP. However, you may be eligible for other foreclosure prevention options offered by your servicer.
13.
How much will a modification cost me?
Borrowers who are behind on payments or at risk of imminent default often do not have cash to pay for the expenses of a loan modification. Borrowers who qualify for a modification under HAMP will never be required to pay a modification fee or pay past-due late fees. If there are costs associated with the modification, such as payment of back taxes, your servicer will give you the option of adding them to the amount you owe on your mortgage or paying some or all of the expenses in advance. Paying these expenses in advance will reduce your new monthly payment and save interest costs over the life of your loan.
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If you would like assistance from a HUD-approved housing counseling agency or are referred to a HUD-approved counselor as a condition of the modification, you will not be charged a counseling fee. Borrowers should beware of any organization that attempts to charge an upfront fee for housing counseling or modification of a delinquent loan, or any organization that claims to guarantee success.
14.
Is housing counseling required for a modification under HAMP?
Borrowers, especially delinquent borrowers, are strongly encouraged to contact a HUD-approved housing counselor to help them understand all of their options and to create a workable budget plan. These services are free. However, housing counseling is only required for borrowers whose total monthly debts are very high in relation to their incomes. It is voluntary for other applicants.
When you apply for a modification under HAMP, your servicer will analyze your monthly debts, including the amount you will owe on the new mortgage payment after it is modified, as well as payments on a second mortgage, car loans, credit cards or child support. If the sum of all of these recurring monthly expenses is equal to or more than 55 percent of your gross monthly income, you must agree to participate in housing counseling provided by a HUD-approved housing counselor as a condition of getting a modification under HAMP.
15.
I heard the government was providing a financial incentive to borrowers. Is that true?
Yes. Borrowers who make timely payments on their modified loans will receive success incentives. For every month you make a payment on time, you will accrue an incentive that reduces the principal balance on your loan. If your loan ceases to be in good standing (three monthly payments are due and unpaid on the last day of the third month), no further success payments will be paid, including accrued but unpaid amounts. The incentive will be applied directly to your loan balance annually and over five years the total principal reduction could add up to $5,000. This contribution by the Treasury will help you build equity faster.
16.
I do not live in the house that secures the mortgage I’d like to modify. Is this mortgage eligible for a modification under HAMP?
No. For example, if you own a house that you use as a vacation home or that you rent out to tenants, the mortgage on that house is not eligible to be modified under HAMP. If you used to live in the home but you moved out, the mortgage is not eligible. Only the first lien mortgage on your primary residence is eligible. The servicer will check to see if the dwelling is your primary residence. Misrepresenting your occupancy in order to qualify for this program is a violation of Federal law and may have serious legal consequences.
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17.
I have a mortgage on a duplex. I live in one unit and rent the other unit. Will I still be eligible?
Yes. Mortgages on two, three and four-unit properties are eligible as long as you live in one unit as your primary residence.
18.
I owe more than my house is worth. Will a modification under HAMP reduce what I owe?
The primary objective of the Making Home Affordable Program is to help borrowers avoid foreclosure by modifying troubled loans to achieve a payment the borrower can afford. Servicers may, but are not required to, offer principal reductions. It is more likely that your servicer will use interest rate reductions and term extensions in order to make your payment affordable.
19.
I have an FHA loan. Can it be modified under HAMP? Are all loans eligible?
Most conventional loans including prime, subprime and adjustable loans, loans owned by Fannie Mae, Freddie Mac and private investors and most loans in mortgage backed securities are eligible for a modification under HAMP. The Administration is working with FHA and VA on a program that would provide for modifications consistent with the Making Home Affordable Program in the near future. Currently loans insured or guaranteed by these agencies are being modified under other programs that also enable borrowers to retain homeownership.
20.
How do I apply for a modification under HAMP?
If you meet the general eligibility criteria for a modification under HAMP, you should gather the financial documentation that your servicer will need to determine if you qualify (See Question 21). Once you have this information, you should contact your servicer and ask to be considered for a modification under HAMP. The servicer’s phone number and email address is on your monthly mortgage bill or coupon book.
If your loan is current, please be patient as it may take some time before servicers are able to process all applications. However, servicers immediately can begin reviewing the eligibility of borrowers.
If you would like to speak to a housing counselor you can call 1-888-995-HOPE (4673). HUD-approved housing counselors can help you evaluate your income and expenses and understand your options. This counseling is FREE.
If you have already missed one or more mortgage payments and have not yet spoken to your servicer call them immediately.
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21.
What information and documents will I need?
It will help your servicer and speed processing of your application if you gather some information and documents before you call. For all borrowers on your loan, you will need:
•
Information about monthly gross income, including recent pay stubs, if the borrowers are salaried and receive them, and documentation of any income received from other sources.
•
Most recent income tax return.
•
Information about assets.
•
Information about any subordinate lien mortgage on the house.
•
Account balances and minimum monthly payments due on all credit cards.
•
Account balances and monthly payments on all other debts such as student loans and car loans.
•
A letter describing why your mortgage is unaffordable (i.e. what caused your income(s) to be reduced or expenses to be increased).
22.
How long will borrowers have to enter into a HAMP modification?
HAMP expires on December 31, 2012. Your trial modification must be in place by that date.
23.
My loan is scheduled for foreclosure soon. What should I do?
If you are at risk of foreclosure, participating servicers may not proceed with a foreclosure sale until you have been evaluated for a modification under HAMP, and, if eligible, offer you a trial modification.
However, borrowers whose loans have been scheduled for foreclosure or any borrower that has missed one or more mortgage payments and has not yet spoken to their servicer should contact them immediately. Borrowers may also contact a HUD-approved housing counselor by calling 1-888-995-HOPE (4673).
WHAT ELSE DO I NEED TO KNOW?
1. Who is my “loan servicer”? Is that the same as my lender or investor?
Your loan servicer is the financial institution that collects your monthly mortgage payments and has responsibility for the management and accounting of your loan. Your servicer may also be your lender, which means they could also own your loan; however, many loans are owned by groups of investors and these investors hire loan servicers to interact with borrowers on their behalf. Also, many lenders no longer interact with their borrowers; they too have the loan servicers handle all contact with borrowers.
 
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Traditionally, banks used money deposited in customers’ savings accounts to make loans. They held the loans, earning the interest as borrowers repaid over time. Banks were thus limited in the number of loans they could make because they had to wait to make new ones until savings deposits grew or existing borrowers repaid their loans. Many families who wanted to own a home were unable to do so because there was not a steady supply of money for banks to lend.
 
Over time, banks started to turn loans into cash by pooling large groups of loans together to create mortgage backed securities that could be sold to investors such as pension funds and hedge funds. The investors get the right to collect future payments and the bank gets cash that it can use to make more loans. Investors hire loan servicers to collect payments and interact with customers.
 
If you have questions about your loan or you are behind on your payments you should call your loan servicer at the number on your payment coupon or monthly mortgage statement.
2. Why does my loan servicer have to ask the lender or investor if they can do a loan modification?
If the organization that services your loan does not own it, your servicer may need to get permission from the owner or investor before they can change any of the terms of your loan. Generally, there is a contract between the servicer and the investor that states what kind of actions the servicer is allowed to take. Most of these contracts, usually called servicing agreements or pooling and servicing agreements (PSAs), give the servicer a lot of leeway to make modification decisions, so long as the modification provides a better financial outcome for the lender or investor than not modifying the loan.
3. What should I do if my servicer tells me that the investor is not participating in the Making Home Affordable Program?
As contracts with servicers are signed, the list of participants will be posted at http://www.MakingHomeAffordable.gov/. Borrowers should check first to see if their servicer is listed. If so, you should call your servicer back and ask to speak to a supervisor or you may contact a HUD-approved housing counselor for assistance. If your servicer is not participating in the Program, you should ask your servicer or a housing counselor about other workout options that may be available.
 
BEWARE OF FORECLOSURE RESCUE SCAMS – HELP IS FREE!
•
There should never be a fee for assistance with or information about the Making Home Affordable Program. 12
13
•
Beware of any person or organization that asks you to pay an upfront fee in exchange for a counseling service or modification of a delinquent loan. Do not pay – walk away!
•
Beware of anyone who says they can “save” your home if you sign or transfer over the deed to your house. Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.
•
Never make your mortgage payments to anyone other than your mortgage company without their approval.

Source:http://www.makinghomeaffordable.gov/borrower-faqs.html#a8

WASHINGTON – As part of an ongoing effort to expand relief to struggling homeowners, Treasury released today the Supplemental Directive for its Home Price Decline Protection (HPDP) program, a component of the Home Affordable Modification Program (HAMP).  HPDP provides additional incentive payments for modifications on properties located in areas where home prices have recently declined.  The purpose of the program is to encourage additional lender participation and HAMP modifications in areas with recent price declines by helping to offset any incremental collateral loss on modifications that do not succeed.  HPDP will help ensure that borrowers in areas with recent home price declines have the opportunity to stay in their homes, thereby minimizing foreclosures, which further depress home values.

“This is an important next step in our multi-faceted efforts to bring relief to struggling homeowners and stabilize the housing market,” said Assistant Secretary for Financial Institutions Michael Barr. “Home price decline protection can help homeowners who may not have been reached otherwise.”

All HAMP loan modifications begun after September 1st, 2009 are eligible for HPDP payments. 

HAMP offers incentives to investors/lenders, servicers, and homeowners for successful mortgage modifications.  The “pay-for-success” structure of HAMP provides incentives to create sustainable mortgage modifications in a manner most cost effective for taxpayers. 

Treasury has allocated a total of up to $10 billion for the HPDP program, but the actual amount spent will depend on the home price trends.  The funds available to individual servicers to pay HPDP and all other incentives on HAMP modifications will be capped according to the Program Participation Cap included in their Servicer Participation Agreement.  Treasury will establish each servicer’s initial cap by estimating the number of modifications that servicer is expected to perform during the term of HAMP. 

The Home Affordable Modification Program (HAMP) commits $75 billion dollars, including $50 billion of funds from the Troubled Asset Relief Program, to encourage loan modifications that will provide sustainably affordable mortgage payments for borrowers.

HAMP is one component of Making Home Affordable, the Administration’s comprehensive plan to stabilize the US housing market and offer assistance to millions of homeowners by reducing mortgage payments and preventing avoidable foreclosures.  Making Home affordable includes: (1) the $75 billion HAMP program, (2) the Home Affordable Refinancing Program providing increased refinancing opportunities for borrowers with high loan-to-value ratios and (3) a $200 billion commitment to increase confidence in the GSEs and support increased refinancing generally.

Source: http://www.makinghomeaffordable.gov/pr_07312009.html

Non-judicial foreclosure is pursued when a power of sale clause is present in the loan document. If the clause contains instructions as to the time, place, and terms of sale, that procedure must be followed. If not, a notice of sale must be published weekly for four consecutive weeks in a newspaper published in the county in which the property is located. If no newspaper is published in the subject county, the notice shall be published in a newspaper in an adjoining county.

The sale may not be held until 30 days from the last date of publication, and shall be held between the hours of 11:00 AM and 4:00 PM at the courthouse door as a public auction for cash to the highest bidder.

Right of redemption: The owner has 12 months in which to redeem the property. Deficiency judgments are permitted.

Nevada
Judicial Foreclosure-Sometimes
Non-Judicial Foreclosure-Yes, most common
Security Instruments-Deed of Trust, Mortgage
Right of Redemption-judicial foreclosure only
Deficiency Judgments-Yes
Time Frame-Usually 120 days

Arizona
Judicial Foreclosure-Sometimes
Non-Judicial Foreclosure-Yes, most common
Security Instruments-Deed of Trust, Mortgage
Right of Redemption-No
Deficiency Judgments-Varies
Time Frame-Usually 90 days

California
Judicial Foreclosure-Sometimes
Non-Judicial Foreclosure-Yes, most common
Security Instruments-Deed of Trust, Mortgage
Right of Redemption-Yes, judicial foreclosure only
Deficiency Judgments-Yes, judicial foreclosure only
Time Frame-111 days or more

New York
Judicial Foreclosure-Yes
Non-Judicial Foreclosure-Yes, but almost never used
Security Instruments-Deed of Trust, Mortgage
Right of Redemption-No
Deficiency Judgments-Yes
Time Frame-Usually 12-19 months

Nevada
Judicial Foreclosure-Sometimes
Non-Judicial Foreclosure-Yes, most common
Security Instruments-Deed of Trust, Mortgage
Right of Redemption-judicial foreclosure only
Deficiency Judgments-Yes
Time Frame-Usually 120 days

Pennsylvania
Judicial Foreclosure-Yes
Non-Judicial Foreclosure-No
Security Instruments-Mortgage
Right of Redemption-No
Deficiency Judgment-Yes
Time Frame-Usually 90 days

This law establishes a Foreclosure Mediation Program for owner-occupied residential properties that are subject to foreclosure notices – formally known as a Notice of Default and Election to Sell – filed on or after July 1, 2009.

  Mediation is an alternative method to help parties resolve disputes by agreement with the help of trained mediators.

Form to Request Mediation (Instructions included)

  

Description:

Under Nevada law, the program is open to homeowners of owner-occupied houses who receive foreclosure notices (formally titled Notice of Default and Election to Sell) that were filed on or after July 1, 2009.  Persons who received foreclosure notices filed before that date may join the mediation program only if their lenders agree.  If you received a foreclosure notice filed before July 1, 2009, do not submit this form unless your lender has already agreed to participate.

 
Assembly Bill No. 149–Assemblymen Buckley, Oceguera, Conklin,

Leslie, Smith; Aizley, Anderson, Atkinson, Bobzien,

Claborn, Denis, Dondero Loop, Goicoechea, Grady,

Hambrick, Hardy, Hogan, Horne, Kihuen, Kirkpatrick,

Koivisto, Manendo, Mastroluca, McClain, Munford,

Ohrenschall, Parnell, Pierce, Segerblom, Settelmeyer,

Spiegel and Stewart

Joint Sponsors: Senators Horsford; and Coffin

CHAPTER……….

AN ACT relating to real property; revising provisions governing

foreclosures on property; providing for mediation under

certain circumstances; providing for the imposition of a fee

for mediation; and providing other matters properly relating

thereto.

 
Legislative Counsel’s Digest:

 
Existing law sets forth procedures governing foreclosures on real property upon

default. A trustee under a deed of trust has the power to sell the property to which

the deed of trust applies, subject to certain restrictions. (NRS 107.080, 107.085)

 
Section 1

sale with respect to owner-occupied housing by providing a grantor of a deed of

trust or the person who holds the title of record with the right to request mediation

under which he may receive a loan modification. Once mediation is requested, no

further action may be taken to exercise the power of sale until the completion of the

mediation. Each mediation must be conducted by a senior justice, judge, hearing

master or other designee pursuant to rules adopted by the Nevada Supreme Court,

and a fee of not more than $85 per hour may be charged and collected for the

mediation.

respect to owner-occupied housing by revising the period in which a deficiency in

performance or payment under the trust agreement may be made good before the

trustee may exercise that power. Similarly,

the trustee’s power of sale with respect to owner-occupied housing by revising the

manner in which service of notice that a person is in danger of losing his home

must be made. In addition,

Court to adopt rules providing for voluntary mediation with respect to a

homeowner who is not in default but is at risk of default.

of this bill establishes additional restrictions on the trustee’s power of
Section 2 of this bill also restricts the trustee’s power of sale withsection 3 of this bill restrictssection 4 of this bill authorizes the Nevada Supreme

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1.

thereto a new section to read as follows:

Chapter 107 of NRS is hereby amended by adding

exercise of the power of sale pursuant to NRS 107.080 with respect
– 2 –
-
to any trust agreement which concerns owner-occupied housing is

subject to the provisions of this section.

. The trustee shall not exercise a power of sale pursuant to

NRS 107.080 unless the trustee:

(a) Includes with the notice of default and election to sell

which is mailed to the grantor or the person who holds the title of

record as required by subsection 3 of NRS 107.080:

(1) Contact information which the grantor or the person

who holds the title of record may use to reach a person with

authority to negotiate a loan modification on behalf of the

beneficiary of the deed of trust;

(2) Contact information for at least one local housing

counseling agency approved by the United States Department of

Housing and Urban Development; and

(3) A form upon which the grantor or the person who holds

the title of record may indicate his election to enter into mediation

or to waive mediation and one envelope addressed to the trustee

and one envelope addressed to the Mediation Administrator,

which the grantor or the person who holds the title of record may

use to comply with the provisions of subsection 3;

(b) Serves a copy of the notice upon the Mediation

Administrator; and

(c) Causes to be recorded in the office of the recorder of the

county in which the trust property, or some part thereof, is

situated:

(1) The certificate provided to the trustee by the Mediation

Administrator pursuant to subsection 3 or 6 which provides that

no mediation is required in the matter; or

(2) The certificate provided to the trustee by the Mediation

Administrator pursuant to subsection 7 which provides that

mediation has been completed in the matter.

shall, not later than 30 days after service of the notice upon him in

the manner required by NRS 107.080, complete the form required

by subparagraph (3) of paragraph (a) of subsection 2 and return

the form to the trustee by certified mail, return receipt requested.

If the grantor or the person who holds the title of record indicates

on the form his election to enter into mediation, the trustee shall

notify the beneficiary of the deed of trust and every other person

with an interest as defined in NRS 107.090, by certified mail,

return receipt requested, of the election of the grantor or the

person who holds the title of record to enter into mediation and

file the form with the Mediation Administrator, who shall assign
– 3 –
-
the matter to a senior justice, judge, hearing master or other

designee and schedule the matter for mediation. No further action

may be taken to exercise the power of sale until the completion of

the mediation. If the grantor or the person who holds the title of

record indicates on the form his election to waive mediation or

fails to return the form to the trustee as required by this

subsection, the trustee shall execute an affidavit attesting to that

fact under penalty of perjury and serve a copy of the affidavit,

together with the waiver of mediation by the grantor or the person

who holds the title of record, or proof of service on the grantor or

the person who holds the title of record of the notice required by

subsection 2 of this section and subsection 3 of NRS 107.080,

upon the Mediation Administrator. Upon receipt of the affidavit

and the waiver or proof of service, the Mediation Administrator

shall provide to the trustee a certificate which provides that no

mediation is required in the matter.

. Each mediation required by this section must be conducted

by a senior justice, judge, hearing master or other designee

pursuant to the rules adopted pursuant to subsection 8. The

beneficiary of the deed of trust or his representative shall attend

the mediation. The grantor or his representative shall attend the

mediation if the grantor elected to enter into mediation, or the

person who holds the title of record or his representative shall

attend the mediation if the person who holds the title of record

elected to enter into mediation. The beneficiary of the deed of trust

shall bring to the mediation the original or a certified copy of the

deed of trust, the mortgage note and each assignment of the deed

of trust or mortgage note. If the beneficiary of the deed of trust is

represented at the mediation by another person, that person must

have authority to negotiate a loan modification on behalf of the

beneficiary of the deed of trust or have access at all times during

the mediation to a person with such authority.

fails to attend the mediation, fails to participate in the mediation in

good faith or does not bring to the mediation each document

required by subsection 4 or does not have the authority or access

to a person with the authority required by subsection 4, the

mediator shall prepare and submit to the Mediation Administrator

a petition and recommendation concerning the imposition of

sanctions against the beneficiary of the deed of trust or his

representative. The court may issue an order imposing such

sanctions against the beneficiary of the deed of trust or his

representative as the court determines appropriate, including,
– 4 –
-
without limitation, requiring a loan modification in the manner

determined proper by the court.

. If the grantor or the person who holds the title of record

elected to enter into mediation and fails to attend the mediation,

the Mediation Administrator shall provide to the trustee a

certificate which states that no mediation is required in the matter.

good faith, are not able to agree to a loan modification, the

mediator shall prepare and submit to the Mediation Administrator

a recommendation that the matter be terminated. The Mediation

Administrator shall provide to the trustee a certificate which

provides that the mediation required by this section has been

completed in the matter.

. The Supreme Court shall adopt rules necessary to carry

out the provisions of this section. The rules must, without

limitation, include provisions:

(a) Designating an entity to serve as the Mediation

Administrator pursuant to this section. The entities that may be so

designated include, without limitation, the Administrative Office

of the Courts, the District Court of the county in which the

property is situated or any other judicial entity.

(b) Ensuring that mediations occur in an orderly and timely

manner.

(c) Requiring each party to a mediation to provide such

information as the mediator determines necessary.

(d) Establishing procedures to protect the mediation process

from abuse and to ensure that each party to the mediation acts in

good faith.

(e) Establishing a total fee of not more than $400 that may be

charged and collected by the Mediation Administrator for

mediation services pursuant to this section and providing that the

responsibility for payment of the fee must be shared equally by the

parties to the mediation.

provisions of this section do not apply if:

(a) The grantor or the person who holds the title of record has

surrendered the property, as evidenced by a letter confirming the

surrender or delivery of the keys to the property to the trustee, the

beneficiary of the deed of trust or the mortgagee, or an authorized

agent thereof; or

(b) A petition in bankruptcy has been filed with respect to the

grantor or the person who holds the title of record under chapter

the case or granting relief from a stay of foreclosure.

. A noncommercial lender is not excluded from the

application of this section.

pursuant to this section in good faith and without gross negligence

is immune from civil liability for those acts.

. As used in this section:

(a) “Mediation Administrator” means the entity so designated

pursuant to subsection 8.

(b) “Noncommercial lender” means a lender which makes a

loan secured by a deed of trust on owner-occupied housing and

which is not a bank, financial institution or other entity regulated

pursuant to title 55 or 56 of NRS.

(c) “Owner-occupied housing” means housing that is occupied

by an owner as his primary residence. The term does not include

any time share or other property regulated under chapter 119A of

NRS.
Sec. 2.

7.080 1. Except as otherwise provided in NRS 107.085,

NRS 107.080 is hereby amended to read as follows:

and section 1 of this act,

property is made after March 29, 1927, to secure the performance of

an obligation or the payment of any debt, a power of sale is hereby

conferred upon the trustee to be exercised after a breach of the

obligation for which the transfer is security.

. The power of sale must not be exercised, however, until:

(a)

case of any trust agreement coming into force:

(1) On or after July 1, 1949, and before July 1, 1957, the

grantor,

of record,

other person who has a subordinate lien or encumbrance of record

on the property

prescribed in subsection 3, failed to make good the deficiency in

performance or payment; or

(2) On or after July 1, 1957, the grantor,

interest,

under a subordinate deed of trust or any other person who has a

subordinate lien or encumbrance of record on the property

if any transfer in trust of any estate in real
[In] Except as otherwise provided in paragraph (b), in the[or his successor in interest,] the person who holds the titlea beneficiary under a subordinate deed of trust or any[,] has , for a period of 15 days, computed as[or his successor in] the person who holds the title of record, a beneficiary[,] has ,

for a period of 35 days, computed as prescribed in subsection 3,

failed to make good the deficiency in performance or payment;

(b)

housing as defined in section 1 of this act, the grantor,

In the case of any trust agreement which concerns owneroccupied

– 6 –
-
the person who holds the title of record, a beneficiary under a

subordinate deed of trust or any other person who has a

subordinate lien or encumbrance of record on the property has,

for a period that commences in the manner and subject to the

requirements described in subsection 3 and expires 5 days before

the date of sale, failed to make good the deficiency in performance

or payment;

(c)

or the trustee first executes and causes to be recorded in the office of

the recorder of the county wherein the trust property, or some part

thereof, is situated a notice of the breach and of his election to sell

or cause to be sold the property to satisfy the obligation; and

The beneficiary, the successor in interest of the beneficiary

[

of the notice.

subsection 2

subsection 2,

which the notice of default and election to sell is recorded in the

office of the county recorder of the county in which the property is

located and a copy of the notice of default and election to sell is

mailed by registered or certified mail, return receipt requested and

with postage prepaid to the grantor

holds the title of record on the date the notice of default and election

to sell is recorded, at

known, otherwise to the address of the trust property. The notice of

default and election to sell must describe the deficiency in

performance or payment and may contain a notice of intent to

declare the entire unpaid balance due if acceleration is permitted by

the obligation secured by the deed of trust, but acceleration must not

occur if the deficiency in performance or payment is made good and

any costs, fees and expenses incident to the preparation or

recordation of the notice and incident to the making good of the

deficiency in performance or payment are paid within the time

specified in subsection 2.

. The trustee, or other person authorized to make the sale

under the terms of the trust deed or transfer in trust, shall, after

expiration of the 3-month period following the recording of the

notice of breach and election to sell, and before the making of

the sale, give notice of the time and place thereof by recording the

notice of sale and by:

(a) Providing the notice to each trustor and any other person

entitled to notice pursuant to this section by personal service or by

mailing the notice by registered or certified mail to the last known

(c)
] (d) Not less than 3 months have elapsed after the recording, or the period provided in paragraph (b) ofcommences on the first day following the day upon[, and] or to the person who[their respective addresses,] his address, if

– 7 –
-
address of the trustor and any other person entitled to such notice

pursuant to this section;

(b) Posting a similar notice particularly describing the property,

for 20 days successively, in three public places of the township or

city where the property is situated and where the property is to be

sold; and

(c) Publishing a copy of the notice three times, once each week

for 3 consecutive weeks, in a newspaper of general circulation in the

county where the property is situated.

other sections of this chapter vests in the purchaser the title of the

grantor and his successors in interest without equity or right of

redemption. A sale made pursuant to this section may be declared

void by any court of competent jurisdiction in the county where the

sale took place if:

(a) The trustee or other person authorized to make the sale does

not substantially comply with the provisions of this section

any applicable provision of section 1 of this act;

[;] or

(b) Except as otherwise provided in subsection 6, an action is

commenced in the county where the sale took place within 90 days

after the date of the sale; and

(c) A notice of lis pendens providing notice of the pendency of

the action is recorded in the office of the county recorder of the

county where the sale took place within 30 days after

commencement of the action.

. If proper notice is not provided pursuant to subsection 3 or

paragraph (a) of subsection 4 to the grantor, to the person who holds

the title of record on the date the notice of default and election to

sell is recorded, to each trustor or to any other person entitled to

such notice, the person who did not receive such proper notice may

commence an action pursuant to subsection 5 within 120 days after

the date on which the person received actual notice of the sale.

housing corporation vests in the purchaser title to the shares in the

corporation which accompany the lease.
Sec. 3.

7.085 1. With regard to a transfer in trust of an estate in

real property to secure the performance of an obligation or the

payment of a debt, the provisions of this section apply to the

exercise of a power of sale pursuant to NRS 107.080 only if:

(a) The trust agreement becomes effective on or after October 1,

03

NRS 107.085 is hereby amended to read as follows:
[; and

– 8 –
-
(b) On

agreement is subject to the provisions of § 152 of the Home

Ownership and Equity Protection Act of 1994, 15 U.S.C. §

02(aa), and the regulations adopted by the Board of Governors of

the Federal Reserve System pursuant thereto, including, without

limitation, 12 C.F.R. § 226.32

(b) The trust agreement concerns owner-occupied housing as

defined in section 1 of this act.

] , and, on the date the trust agreement is made, the trust[.] ; or

. The trustee shall not exercise a power of sale pursuant to

NRS 107.080 unless:

(a) In the manner required by subsection 3, not later than 60

days before the date of the sale, the trustee causes to be served upon

the grantor

the form described in subsection 3; and

(b) If an action is filed in a court of competent jurisdiction

claiming an unfair lending practice in connection with the trust

agreement, the date of the sale is not less than 30 days after the date

the most recent such action is filed.

(a) Served upon the grantor

record:

(1) Except as otherwise provided in subparagraph (2),

personal service or, if personal service cannot be timely effected, in

such other manner as a court determines is reasonably calculated to

afford notice to the grantor

record; or

(2) If the trust agreement concerns owner-occupied

housing as defined in section 1 of this act:

(I) By personal service;

(II) If the grantor or the person who holds the title of

record is absent from his place of residence or from his usual

place of business, by leaving a copy with a person of suitable age

and discretion at either place and mailing a copy to the grantor or

the person who holds the title of record at his place of residence or

place of business; or

(III) If the place of residence or business cannot be

ascertained, or a person of suitable age or discretion cannot be

found there, by posting a copy in a conspicuous place on the trust

property, delivering a copy to a person there residing if the person

can be found and mailing a copy to the grantor or the person who

holds the title of record at the place where the trust property is

situated;

or the person who holds the title of record a notice inor the person who holds the title ofby[;] or the person who holds the title ofand

– 9 –
-
(b) In substantially the following form, with the applicable

telephone numbers and mailing addresses provided on the notice

and a copy of the promissory note attached to the notice:

NOTICE

YOU ARE IN DANGER OF LOSING YOUR HOME!

Your home loan is being foreclosed. In

home will be sold and you will be forced to move. For help, call:

Consumer Credit Counseling _______________

The Attorney General __________________

The Division of Financial Institutions ________________

Legal Services ______________________

Your Lender ___________________

Nevada Fair Housing Center ________________

. This section does not prohibit a judicial foreclosure.

unfair lending practice described in NRS 598D.010 to 598D.150,

inclusive.

not less than 60 days your

Sec. 3.5.

7.095 1. The notice of default required by NRS 107.080

must also be sent by registered or certified mail, return receipt

requested and with postage prepaid, to each guarantor or surety of

the debt. If the address of the guarantor or surety is unknown, the

notice must be sent to the address of the trust property. Failure to

give the notice, except as otherwise provided in subsection 3,

releases the guarantor or surety from his obligation to the

beneficiary, but does not affect the validity of a sale conducted

pursuant to NRS 107.080

surety to whom the notice was properly given.

. Failure to give the notice of default required by NRS

7.090, except as otherwise provided in subsection 3, releases the

obligation to the beneficiary of any person who has complied with

NRS 107.090 and who is or may otherwise be held liable for the

debt or other obligation secured by the deed of trust, but such a

failure does not affect the validity of a sale conducted pursuant to

NRS 107.080

notice was properly given pursuant to this section or to NRS

7.080 or 107.090.

to this section if:

NRS 107.095 is hereby amended to read as follows:
[nor] or the obligation of any guarantor or[nor] or the obligation of any person to whom the

– 10 –
-
(a) The required notice is given at least 15 days before the later

of:

(1) The expiration of the 15- or 35-day period described in
paragraph (a) of subsection 2 of

NRS 107.080;
[or]

(2)

owner-occupied housing as defined in section 1 of this act, the

expiration of the period described in paragraph (b) of subsection 2

of NRS 107.080; or

(3)

beneficiary; or

(b) The notice is rescinded before the sale is advertised.

In the case of any trust agreement which concernsAny extension of [that] the applicable period by the

Sec. 4.

a new section to read as follows:

Chapter 2 of NRS is hereby amended by adding thereto

The Supreme Court may adopt rules providing for voluntary

mediation with respect to a homeowner who is not in default but is

at risk of default.
Sec. 5.

management of a parcel of real property, holds or is the beneficiary

of evidence of title to the property primarily to protect a security

interest in the property is not a responsible party with respect to a

release of a hazardous substance on the property if:

(a) The owner of the property is relieved from liability under

NRS 459.610 to 459.658, inclusive, with respect to the release;

(b) The owner or holder of evidence of title did not cause the

release; and

(c) The owner or holder of evidence of title does not participate

actively in decisions concerning hazardous substances on the

property.

. A lender to a prospective purchaser who has filed an

application to participate in the program pursuant to NRS 459.634

or a lender who forecloses his security interest in property pursuant

to NRS 40.430 to 40.450, inclusive, or 107.080 to 107.100,

inclusive,

after the foreclosure, not to exceed 2 years, sells, transfers or

conveys the property to a prospective purchaser who has filed an

application to participate in the program pursuant to NRS 459.634 is

not a responsible party solely as a result of:

(a) Foreclosing a security interest in the property; or

(b) Making a loan to the prospective purchaser if the loan:

(1) Is to be used for acquiring property or removing or

remediating hazardous substances on property; and

NRS 459.646 is hereby amended to read as follows:
and section 1 of this act, and within a reasonable period

– 11 –
-
(2) Is secured by the property that is to be acquired or on

which is located the hazardous substances that are to be removed or

remediated.
Sec. 5.5.

agreements which concern owner-occupied housing, as defined in

section 1 of this act, apply only with respect to such agreements for

which a notice of default is recorded on or after July 1, 2009.

The amendatory provisions of this act governing trust

Sec. 5.7.

contrary and in recognition of the emergency situation confronting

this State concerning mortgage foreclosures and the need to

implement the provisions of this act quickly, any rules adopted by

the Supreme Court pursuant to subsection 8 of section 1 of this act

take effect on the date specified by the Supreme Court in the order

adopting the rules, which in no event may be less than 30 days after

entry of the order.

Notwithstanding any provision of NRS 2.120 to the

Sec. 6.

This act becomes effective on July 1, 2009.

~~~~~ 09