If you are facing foreclosure and you are not able to work out a deal with your lender, you are not without options. Bankruptcy can be used as a way to either save your home or to buy time before the lender will take back the property.  Here are some examples of how bankruptcy could be used to deal with foreclosure.

The Automatic Stay

The automatic stay gives you a way to delay foreclosure because when you file for Chapter 7 or 13 bankruptcy, all creditors, including your mortgage lender, are required to stop all collection actions and postpone all pending foreclosure sales. However, the postponement will not be permanent and the lender will still be able to file a motion to lift the stay. Also, if the lender has already filed a foreclosure notice then filing for bankruptcy will not help you.

Chapter 13 Bankruptcy

If you are behind on your mortgage payments and at risk of losing your home that you want to keep, you can file for Chapter 13 bankruptcy. In Chapter 13 bankruptcy you will have the opportunity to pay back your arrears under the Chapter 13 plan while keeping up your mortgage payments to the lender. In order to qualify for this type of bankruptcy, you should have adequate income to cover both your regular mortgage payments and the plan payments as required by law.

Lien Stripping

If the value of your property is fully secured by your first mortgage, Chapter 13 bankruptcy can help you strip off the second and third mortgage by turning these mortgages into unsecured debt. Unsecured debt does not always have to be paid back in Chapter 13 bankruptcy. This can help you if you have multiple mortgages and you are not able to keep up with all of your mortgage payments.

Call us for a free evaluation to see if bankruptcy can help you prevent or avoid foreclosure.

When you file for bankruptcy, all the property that you own becomes property of the estate, and unless it is exempt, the trustee has the right to liquidate it and give the proceeds to creditors.  The homestead exemption applies to real property that is considered to be your primary residence. After the 2005 bankruptcy law amendments, the New York bankruptcy law homestead exemption rose to $50,000.00 for individuals and $100,000.00 for those filing jointly.

If you want to file for bankruptcy in New York State and you own a home which is your primary residence, you should determine the amount of equity that exists in the property. If the equity is $50,000.00 or $100,000.00 (depending on if you are filing alone or jointly), then you can file for chapter 7 bankruptcy without losing your home. If on the other hand, the equity in your real property is over the exemption limit, you still have the option of filing for chapter 13 bankruptcy if you qualify.

What are some of  the benefits of Chapter 13 bankruptcy if you own real property?

Under chapter 13 bankruptcy you can keep real property even if the equity is greater than the exemption limit by making regular payments to mortgage lenders. Also, chapter 13 bankruptcy allows you to cure any arrears that you may have to your mortgage lender. These arrears can be paid as a part of the chapter 13 plan.

To get more information on the impact of bankruptcy on your real property, contact us at drevzin@revzinlaw.com.

All of these questions will help you address the topics that need to be mentioned in the website privacy policy. However, keep in mind that the website privacy policy must only discuss privacy issues related to the website and not the general privacy policy of the company, even though these policies may overlap.

What are some of the clauses that your website privacy policy should contain?

You should include a list of required and optional information that your company collects during website registration. This may include the name, address, telephone number, email address and any interests of the registrant.

A disclosure about how the registrant’s information is used and whether it is disclosed to third parties is necessary as well.

Depending on the type of business that the company engages in, there may be specific privacy regulations that apply. For example, financial companies have extensive regulations that require strict compliance under the Gramm-Leach-Bliley Act. Companies that target children must comply with the Children’s Privacy Protection Act or COPPA.

Furthermore, you must mention if your company gives registrants the option to opt-out of information sharing and provide a disclosure regarding cookies and other forms of information collection methods that your company uses.

Finally, creating and maintaining a privacy policy should be an ongoing task. It should always reflect the actual practices of your company and comply with appropriate regulations.

For more information on website and other types of privacy policies please contact us at drevzin@revzinlaw.com

A source code escrow agent takes custody of the source code from the Licensor and releases it to the Licensee only if the conditions specified in the Escrow Agreement are met.

A comprehensive Escrow Agreement will ensure that the Licensor is protected in the following ways:

• Licensor retains the copyright protection to the source code even after it is released to the Licensee;
• The agreement limits the circumstances in which the source code is released to the Licensee. For example, the source code will be released when a Licensor files for bankruptcy protection or fails to update the software as necessary;
• The agreement requires that a demand for the source code be made to and approved by the Licensor before it is released;
• The agreement contains a confidentiality clause or an accompanying confidentiality agreement that requires the Licensee to keep the source code confidential, and
• The agreement places restrictions on how the source code can be used by the Licensee after it is released.

Filing for bankruptcy does impact your credit and your FICO score negatively and may discourage some lenders from extending loans. However, if you are considering filing for bankruptcy, it is likely that you are behind on your bills and that your credit has already been negatively impacted.

How Long  Bankruptcy Remains on your Credit Report

Bankruptcies remain on your credit report anywhere from seven to 10 years. You can start rebuilding your credit right after you’ve filed for bankruptcy. While there are no laws prohibiting creditors from granting credit, your ability to obtain credit will depend on the creditor.

Tips on Restoring Credit after Bankruptcy

• Obtain a secured credit card. A secured credit card allows you to deposit funds into the account and make purchases and withdrawals. While the credit limit depends on the amount of funds that you deposit  some banks may add a credit line if you have been making good payments.
• Try to get an installment loan. Even though the loan will have a high interest rate, it will help you improve your credit.
• Pay off credit card debt fully each month. This will show your creditors that you are a responsible consumer and have changed your habits.
• Regularly review your credit report to ensure that all the information that is reported is accurate.

A bankruptcy filing brings all of the debtor’s assets and debts under the protection and management of the bankruptcy court. While the court evaluates the bankruptcy estate and determines the dischargeability of debts, before the debtor gets a discharge, the code offers a debtor peace of mind that creditors will stop all collection actions.

Specifically, certain creditors are prohibited from the following actions: all attempts to collect a debt through telephone calls and other correspondence; repossessions; foreclosure sales of real property; garnishments and liens, and beginning or continuing law suits.

In a chapter 13 bankruptcy case, the Automatic Stay also protects co-debtors in consumer cases that are liable for debts together with the debtor.

A Few Limitations of Automatic Stay

Below, I will list some of the limitations of the Automatic Stay. For more information or if you have additional questions, please do not hesitate to contact us at drevzin@revzinlaw.com

1) Debts with no Automatic Stay Protection

Depending on the nature of the debt owed by a bankrupt debtor, certain creditors may pursue their debt claims even after a bankruptcy case is filed. Such claims include, but are not limited to, collection of educational loans, actions for family support, criminal proceedings, and certain actions by taxing authorities.

2) Creditor requests to lift the stay

A creditor may also request the bankruptcy judge to lift the Automatic Stay, through a motion, based on several theories afforded by the bankruptcy code. For example, a secured creditor may request that the Automatic Stay be lifted in order to pursue an action for real property with no equity. If the bankruptcy judge permits the Automatic Stay to be lifted, the creditor can pursue the action allowed under state law.

3) Time Limitations

Debtors who had one pending case dismissed within the last year only get the benefit of the Automatic Stay for 30 days after filing for bankruptcy.