Recently, the San Diego Bankruptcy Court allowed debtors with income of $14,500 per month and over $8000.00 in housing expenses related to their “McMansion” to receive a chapter 7 discharge. To read more about this amazing result and see if you qualify, please visit my National Blog here.
Written by Michael G. Doan
Recently, the District Court located in San Diego ruled that a student loan was discharged in a Chapter 13 Bankruptcy. In that case over $75,000 in student loans were eliminated and the debtor was entitled to a refund of payments made after discharge! Moreover, the debtor did nothing out of the ordinary to eliminate the student loan, which was automatically eliminated simply by a plan provision and discharge. To read more about this amazing result and see if you qualify, please visit my National Blog here.
Written by Michael G. Doan
On June 15, 2009, new legislation went into effect that could extend the foreclosure process by an additional 90 days. To see if you qualify, please see my National Blog here.
Written by Michael G. Doan
In a crushing blow, the Cramdown legislation advocated by the Obama administration which would allow Bankruptcy Judges to modify mortgages in Bankruptcy has been voted against. This legislation would have reduced principal balances to fair market value, lowered interest rates, amortized the loan over 40 years, and reduced payments. Despite the measure failing, the Obama administration has been silent. Indeed, it was also silent and stopped advocating for bankruptcy legislation in the days leading up to the vote when it appeared likely of not passing. To read more about the failed legislation, click here. Debtors from here on out will either need to walk from their homes or obtain modification of their loans at their lenders’ discretion. Alternatively, they might try to sue their lenders, but California Courts have been very hostile to most lawsuits in this regard.
Written by Michael G. Doan
Recently, a Ventura Judge denied a request to dismiss a lawsuit under 2923.6 which requires lenders to modify mortgages. The transcript of that ruling can be found here. To read more about 2923.6, please click my National Blog here.
Written by Michael G. Doan
Legislation to allow Judicial modificaiton of mortgages in Bankruptcy seemed like almost a done deal in February, 09. Now it seems the opposite may ensue. If this is the case, the housing market will surely not stabalize for quite some time. Below is an excerpt from CQ Today on April 22, 2009: (more…)
New Bankruptcy Laws may soon go into effect to provide much needed and over due relief for San Diegan’s upside down on their residences. Last week, legislation cleared the House and is on its way to the Senate. To read more about this and how it may play out for a typical homeowner in San Diego, please click my National Blog here.
Written by Michael G. Doan
It looks like the “Cram Down” Bankruptcy Reform will not be part of the economic stimulas package presently before Congress. But good news, is that President Obama will push for the Cram Down soon thereafter. Per a recent email I just received:
I wanted to keep you in the loop on judicial modification, one of our legislative priorities. As some of you may already know, the judicial modification of mortgages legislation (S. 61 by Durbin, HR 200 by Conyers et al, and HR 225 by Brad Miller et al.) will NOT be part of the economic recovery package now under consideration in the House and Senate. My understanding, confirmed by reporting on the same, is that President Obama in a meeting on Friday specifically asked Democratic leaders not to include it in the package as he seeks to build Republican support for the recovery package. The good news is that in the same meeting President Obama reaffirmed his support for the legislation and said that the Administration will look for a quick moving vehicle to which the legislation would be attached. Among other possibilities is the 2009 omnibus appropriations bill, which congressional leaders hope to pass in the short term. We will keep you posted on new developments in this regard.
In the meantime, the House Judiciary Committee is marking up H.R. 200 at 1 p.m. today. Chairman Conyers will offer a manager’s amendment at that time that will include language reflecting the agreement reached with Citi.
Written by Michael G. Doan
Probably because the creditor still wants their money! Unless that creditor did not get notice of bankruptcy, reporting a balance is a very power debt collection tool and a popular tool by the debt collection industry to collect debts previously discharged in bankruptcy. In prior articles, I had written how such acts will subject the creditor to liability. Recently, on January 12, 2009, the Ninth Circuit ruled in Gorman v. Wolpoff & Abramson, LLP, 2009 U.S. App. LEXIS 585 (9th Cir. Cal. Jan. 12, 2009), that California Civil Code 1785.25(a) may also now be used to sue creditors who continue to report incomplete or inaccurate information. No doubt, reporting a balance after discharge without bankruptcy notation is definitely incomplete and inaccurate! To read more, please click my National Blog.
Written by Michael G. Doan
San Diego is on track to set a record number of bankruptcy cases filed for 2009. With the softening real estate market and struggling economy, San Diego is likely to have a higher increase in bankruptcy filings than most other bankruptcy courts across the Nation. If you are experiencing financial difficulties, you are not alone. Please click here to read more from my National Blog.
Written by Michael G. Doan
Over the past two weeks, new legislation has been introduced into both the Senate and House which would allow mortgages to be modified on personal residences. Such new sweeping bankruptcy reform would drastically change current laws which presently only provide for modification of junior mortgages. To read more about this new legislation, please click my National Blog here.
Written by Michael G. Doan
For the past year, our local courts have reduced our fees requested when we prevail against suing creditors and providing other bankruptcy services. While we did not agree with these decisions, we also purposely chose not to appeal since we were waiting for the decision of Moreno v. City of Sacramento, 2008 U.S. App. LEXIS 15951 (9th Cir. Cal. July 28, 2008). Well, the Ninth Circuit has now ruled, and as expected, the District Court ruling reducing attorney fees was wrong. Instead, attorney fees must be paid as requested by the losing party, unless sufficient evidence exists by an objecting party. The days of the “gut feeling” reductions by judges are OVER! So what does this mean? The bottom line is that our firm and other firms are once again motivated to represent our clients to the fullest extent allowable by law without any undue influence by a Court reducing our fees based upon their arbitrary opinion. To read more, please click my national blog here. Written by Michael G. Doan
No! California and Federal Law are two different animals and Federal Law always trumps state law.
The Supremacy Clause of the United States provides
“This Constitution, and the Laws of the United States which shall be made in Pursuance thereof; and all Treaties made, or which shall be made, under the authority of the United States, shall be the supreme Law of the land; and the Judges in every State shall be bound thereby, any Thing in the Constitution or Laws of any State to the Contrary notwithstanding.”
Accordingly, when it comes to Bankruptcy, same-sex couples are still not entitled to file a joint Bankruptcy Petition. For more information, please click my National Blog here.
Written by Michael G. Doan