Is There A Foreclosure In Your Future?

  By fcoxwell | February 28, 2012 - 10:52 pm | Chapter 13 Bankruptcy, Foreclosure, General Bankruptcy Answers
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Mississippi is leading when it comes to mortgage delinquencies. In October 2011, there were more homeowners in Mississippi behind on house notes than in any other state of the union.

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 foreclosurStop foreclosuree 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.

Did You Get a 1099 From Your Mortgage Company?

  By fcoxwell | February 27, 2012 - 6:28 pm | Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, General Bankruptcy Answers
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If you filed had your home foreclosed or surrendered it in bankruptcy last year you will be receiving a 1099 from your mortgage company.  Do not ignore this.   Deal with it now, otherwise it will cause you problems in the future.

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.

Did You Get a 1099 From One of Your Creditors?

  By fcoxwell | February 27, 2012 - 6:23 pm | Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, General Bankruptcy Answers
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If you filed bankruptcy last year you will be receiving 1099 forms from your creditors.  Do not ignore this.   Deal with it now, otherwise it will cause you problems in the future.

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.

Do I have to list all my debts if I file bankruptcy?

  By fcoxwell | February 10, 2012 - 2:22 am | Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, General Bankruptcy Answers
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QuestionYes…but let me explain why you want to list everyone.  The bankruptcy rules require you list all of your creditors so the court can get an accurate picture of your financial situation.  Listing everyone you owe does not mean you will lose your house or car or other property.  Listing everyone you owe does not mean all your debt will be wiped out.  You want to have all your creditors listed so they get notice of the bankruptcy and they leave you alone while you take the time to decide who you want to pay and who you want to get rid of.  You can always pay back the creditors you listed after the bankruptcy if you wish.

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.

Training Family Law Attorneys

  By fcoxwell | January 26, 2012 - 10:37 pm | Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Events
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Speaker Frank Coxwell Today I had the privilege of being one of the guest speakers at the MS Family Law Update seminar in Jackson, Mississippi.  I educated the attending family law attorneys on the many ways that bankruptcy can effect the divorce, child support, and custody matters that they routinely address.  My  presentation covered methods the attorneys need to use to properly protect their clients settlement and support claims when a spouse files for bankruptcy and as well, how bankruptcy could in turn protect the spouse that owes the support and other obligations.  I emphasized that timing is critical and discussed the possible benefits to filing bankruptcy before the divorce proceedings.