Attorney Frank Coxwell joins the show to tell the truth behind bankruptcy. Does it ruin your credit and life or save it? Which chapter should you file? Who should you consult?

I had the priviledge of being invited as a guest to the Mississippi Public Broadcasting (MPB) show - Money Talks – on April 3, 2012.  We spent an hour discussing bankruptcy and taking calls/emails from listeners. I highly recommend this show for anyone interested in the topic of finances.  Save this link to their home page as a favorite – you’ll gain a lot of very useful information and you’ll enjoy the hosts!   Thank you Kevin, Chris, and Nancy!  Hope to join you again soon.  

Money Talks focuses on personal finance as it applies to Mississippians. In any given week, we’ll talk about anything from preparing your taxes to saving for college or investing in the stock market. Chris Burford, financial education specialist for Consumer Credit Counseling and Nancy Lottridge-Anderson, Assistant Professor of Finance at Mississippi College, President of New Perspectives, Inc. and author of Tough Talk for Tough Times, join Kevin Farrell in the studio to answer your personal finance questions about family budgeting, retirement savings, Social Security, investments, debt management and more. Email the show at anytime at money@mpbonline.org. Money Talks airs Tuesday mornings at 9 on MPB Think Radio. 

Frank w/host Kevin Farrell

Frank live on Money Talks

“Who Owns your Home? Mortgage Securitization in Mississippi” will be a 2 class session

April 5 & April 12 from 6:00pm – 8:00pm. Millsaps Tuition Cost: $40.00 per person.

I will present an overview of today’s home mortgage loans. You will learn about the note, deed of trust, mortgage securitization, and modification programs.  You will also discover who really owns your loan and why your mortgage company would rather foreclose than continue to accept your monthly payments.

“The Truth About Bankruptcy” will be 1 class session

April 14 from 10:00am – Noon.  Millsaps Tuition Cost: $25.00 per person.

Bankruptcy is one of the most powerful sets of consumer protection laws in this country.  You have heard all the myths about bankruptcy and now you can hear the truth.  This course will cover the various types of bankruptcy with emphasis on Chapter 7 and Chapter 13. We will review the advantages of each type.

Why am I doing this? I have practiced law in Jackson, helping Mississippians for over 33 years. I have limited my practice to consumer protection matters, consumer bankruptcy & foreclosure defense.  I am a frequent speaker at seminars for attorneys on bankruptcy & mortgage issues and feel that offering education to the public on the protection available to them in these areas was very much needed. I am a firm believer that knowledge is power.

The Mortgage Bankers Association reported that there are 4.2 million homeowners across the nation more than 90 days late on their house note or are already in foreclosure status. Is this the indication of us being on the road to recovery that the media would us believe?

The fact is that mortgage service companies are not willing to provide modifications to help homeowners and as a result, foreclosures continue to rise. If you want to save your house, you cannot wait until the last minute, thinking a modification will come through.  Get your documents together and meet with a lawyer now that handles bankruptcy and foreclosure defense to learn what options you have available.  Get the information now  – before you need it.  Be prepared.  Plan ahead.  Think about it – what good is buying car insurance after the wreck? I continually meet with people that come in after the foreclosure sale date is set trying to figure out what they can do. In most cases we can still help and save the house, but it would have benefited the people so much more to have met with me as soon as their payments started falling behind.  Timing matters – and knowing your options is worth it’s weight in gold.  If you’re online, researching foreclosure because you’re worried about losing your home, the time is NOW to speak with someone. The most important thing is to save the home. There are options – the longer you wait, the less options there may be.

Here is what you need to do. There is a special tax relief available called the “Mortgage Forgiveness Relief Act of 2007″.   This will forgive the debt and you will not owe any tax on the amount listed on the 1099 form.  Make sure your tax preparer knows you suffered a foreclosure or filed bankruptcy.   If you have already filed your 2011 tax return then you will need to file an amended return.

Here is what you need to do. Make sure your tax preparer knows you filed bankruptcy and have them attach IRS Form 982 to your tax return.   They should check the box in Part 1 that says  “Discharge of indebtedness in a title 11 case”.  Title 11 is bankruptcy.   Attach a copy of your bankruptcy discharge to the form 982.

If you have already filed your 2011 tax return then you will need to file an amended return.

Leaving off a credit card because you want to continue to use the credit card is not a good idea and it won’t work anyway.  Credit card companies and other creditors are constantly checking your credit reports in national databases and they will find out about the bankruptcy.   They will  cancel the card anyway, whether you owe a balance or not, no matter how good your payment record may have been.

Intentionally leaving a creditor off your bankruptcy papers may result in perjury or it may make the debt non-dischargeable and you will have to pay it.   Let’s play it safe and list everyone.  That way you are protected from them and you can always pay them later if you desire.

The idea of bankruptcy came from the Old Testament.  It was created for your protection - to ensure your right to a fresh start.

 The most important thing is to save your home.

The mortgage loan servicers that must participate in this review process are:

1)  America’s Servicing Co. 2) Aurora Loan Services 3) Bank of America 4) Beneficial 5) Chase 6) Citibank 7) CitiFinancial 8 ) CitiMortgage 9) Countrywide 10) EMC 11) EverBank/EverHome Mortgage Company 12) GMAC Mortgage 13) HFC 14) HSBC 15) IndyMac Mortgage Services 16) MetLife Bank 17) National City Mortgage18) PNC Mortgage 19) Sovereign Bank 20) SunTrust Mortgage 21) U.S. Bank 22) Wachovia Mortgage 23) Washington Mutual/WaMu 24) Wells Fargo Bank, N.A.