Randolph Goldberg's Stream

Foreclosure Rule Upheld by Courts

2009-12-09T15:01:00.001-08:00

Good news for people trying to avoid foreclosure in the U.S.

Judge upholds rule on foreclosure - Business - ReviewJournal.com

Homeowners struggling to avoid foreclosure got some good news Tuesday.

U.S. District Judge Kent Dawson upheld a bankruptcy court ruling that makes it harder for lenders to foreclose on home mortgages.

The case, which was heard by a panel of federal judges in November, concerned whether Mortgage Electronic Registration Systems Inc., or MERS, could foreclose on residences on behalf of lenders. The electronic system records the ownership of residential mortgages for the mortgage banking industry.

Dawson said the company could not foreclose on a home because it did not provide evidence that it held the note on the residence and didn't show that it was an agent of the lender.

About half of all U.S. mortgages "whose loans have been securitized, sliced and diced are now held by (MERS)," according to a blog posted by securities analyst Barry Ritholtz.

The case started in bankruptcy court two years ago.

MERS asked bankruptcy Judge Linda Riegle for permission to start foreclosure proceedings against a property owned by Lisa Marie Chong. Bankruptcy trustee Lenard Schwartzer objected, saying the electronic system was not a "real party in interest" in the mortgage loan.

Like many mortgages, Chong's loan had been securitized, meaning it had been pooled or packaged into a security held by investors.

MERS was unable to show that it had possession of the note. The bankruptcy judge ruled in Schwartzer's favor. The decision was appealed to federal court.

In his decision Tuesday, Dawson said the registration system does not lose money when borrowers fail to make payments on home mortgages.

Dawson ruled that Mortgage Electronic Registration Systems must at least provide evidence that it was a representative of the mortgage loan holder, which it failed to do.

"Since MERS provided no evidence that it was the agent or nominee for the current owner of the beneficial interest in the note, it has failed to meet its burden of establishing that it is a real party in interest with standing," Dawson said, affirming the bankruptcy court ruling.

Real estate attorney Tisha Black-Chernine said the ruling is good news for struggling borrowers and home-owners.

"It will have a dramatic effect on lenders being able to foreclose," she said.

Because the decision makes it more difficult to foreclose, she hopes lenders will be more willing to negotiate with homeowners struggling to meet mortgage payments by approving short sales or making other concessions.

In a short sale, a lender agrees to let a homeowner sell his home for less than is owed. This is particularly helpful, because many homeowners owe far more than their homes are worth since home prices have fallen.

Houses sold in short sales typically go for 30 percent more than homes sold after foreclosure, Black-Chernine said.

Appraisers looking at the short sale price will use it in determining the market value. Thus, avoiding foreclosure results in higher market values for other houses, she said.

"It should help buoy home prices," Black-Chernine said.

Bill Uffelman, chief executive officer of the Nevada Bankers Association, a trade group, predicted that most foreclosures will be able to proceed because the real mortgage owners and notes will be able to be identified in most cases. However, he said many homeowners facing foreclosure may be able to stay in their homes longer because of the delay.

"In the end in 99.9 percent of the cases, ownership of the note will be proved," he said.

Although the decision is believed to be the first of its kind in Nevada, the Kansas Supreme Court made a similar finding in a similar case.

An attorney for the electronic system did not return a call for comment on whether it will appeal.

Contact reporter John G. Edwards at jedwards@reviewjournal.com or 702-383-0420.

bankruptcy, foreclosure

Technorati Verification

2009-11-24T17:25:00.001-08:00

HQPW923U6N35
Sorry guys but this has to be done

Pimco’s Gross Increases Holdings of U.S. Government Securities

2009-11-23T13:45:00.001-08:00

If only a country could file for bankruptcy, this whole mess might be solved quite easily.

Pimco’s Gross Increases Holdings of U.S. Government Securities - Bloomberg.com
By Susanne Walker and Daniel Kruger

Nov. 23 (Bloomberg) -- Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., increased his holdings of government debt to 63 percent, the highest amount in at least five years.

Gross boosted his $192.6 billion Total Return Fund’s investment in Treasuries, so-called agency debt and other U.S. government-linked bonds from 48 percent of assets in September, according to Pimco’s Web site.

Gross said in his December investment outlook last week that the “systemic risk” of new asset bubbles is rising with the Federal Reserve keeping interest rates at record lows. Under what Pimco has termed the “new normal,” investors should be prepared for lower-than-average historical returns with heightened government regulation, lower consumption, slower growth and a shrinking global role for the U.S. economy.

With unemployment at a 26-year high of 10.2 percent, Gross said the central bank is unlikely to raise interest rates until nominal gross domestic product increases 4 percent to 5 percent for another 12 months.

“With unemployment in the double digits and likely to stay close to that for the next six months despite job creation ahead, the Fed has no where to go,” Gross, co-founder and co- chief investment officer of Pimco, said in a Bloomberg Television interview on Nov. 19 from Newport Beach, California.

Fed Chairman Ben S. Bernanke said after a Nov. 16 speech in New York that it’s “not obvious” that asset prices in the U.S. are out of line with underlying values after a 64 percent jump in the Standard & Poor’s 500 Index from its March low.

Treasury three-month bill rates turned negative on Nov. 19 for the first time since financial markets froze last year on concern that the rally in higher-yielding assets has outpaced the prospects for economic growth.

Government Debt

Mark Porterfield, a Pimco spokesman, has said the company doesn’t comment on fund holdings. He didn’t immediately return a call today.

Pimco’s government-related debt category can include conventional and inflation-linked Treasuries, agency debt, interest-rate derivatives and bank debt backed by the Federal Deposit Insurance Corp., according to the Web site.

The Total Return Fund returned 19.7 percent in the past year, beating 54 percent of its peers, according to data compiled by Bloomberg. The one-month return is 1.04 percent, outpacing 85 percent of its competitors. Pimco is a unit of Munich-based insurer Allianz SE.

Cash and equivalent securities comprised negative 7 percent of holdings in October. These assets can include commercial paper, short-term government and mortgage-backed securities, short-term company bonds and money market derivatives.

The fund can have a so-called negative position by using derivatives, futures or by shorting.

Derivatives are financial obligations whose value is derived from an underlying asset such as debt, stocks or commodities. Futures are agreements to buy or sell assets at a later specific price and date.

Shorting is borrowing and selling an asset in anticipation of making a profit by buying it back after its price has fallen.

To contact the reporter on this story: Susanne Walker in New York at swalker33@bloomberg.net

Pimco, U.S. Debt, bankruptcy

Golden Nugget's Parent Company to go Private

2009-11-04T15:41:00.001-08:00

CEO of Landry's Resturants, Tilman Fertitta, has had his offer to buyout the company approved by the bored. Why anyone would want to buy a company almost $1 Billion in debt is a mystery, lets just hope it is not a mistake.

Buyout to take casino parent private - Business - ReviewJournal.com
Landry's Restaurants on Tuesday announced a buyout deal with its top executive to take the parent company of the Golden Nugget private in a transaction valued at $1.2 billion including debt.

Landry's Restaurants Chairman and Chief Executive Officer Tilman Fertitta had his offer of $14.75 per share in cash accepted by the company's board of directors, a 37 percent premium on Monday's closing price of $10.76 per share.

Click here to find out more!

Most Popular Stories
# INSIDE GAMING: Echelon could use some tarp assistance
# Chase makes takeover official
# Buyout to take casino parent private
# AIRLINE INDUSTRY: US Airways cutting LV flights
# CASINO COMPANIES: Herbst reorganization plan gets OK
# A FEW OF THE PAST YEAR'S BIG LEGAL CASES: Recession leaves lawyers rethinking strategies
# Observers see hopeful signs for real estate
# WORLD SERIES OF POKER: November Nine
# ALTERNATIVE ENERGY: $90 million steaming to Nevada
# CityCenter licensing gets own hearing

Fertitta, who owns nearly 55.1 percent of the company's stock, would acquire all shares of Landry's that he does not own. The transaction is subject to Landry's refinancing a portion of its $915.3 million debt load.

The buyout is subject to approval by the majority of Landry's stockholders controlling the stock not held by Fertitta.

Bond analyst Barbara Cappaert of KDP Investment Advisors priced Fertitta's out-of-pocket expense to acquire the stock he does not already own at $108 million.

She added that $437.1 million in debt coming due in 2011 needs to be addressed whether Fertitta buys the company or not.

"We have been down this road before," Cappaert said in a note to investors. "Funding has always been an issue."

The buyout agreement comes nearly three weeks before the downtown Golden Nugget opens its new $150 million, 500-room hotel tower. If the expanded hotel-casino survives the economic downturn, the new Fertitta-owned company would benefit from higher valuations, Cappaert said.

But if the gaming property defaults on its separately held $495 million in term loans, Cappaert said Fertitta would still control a significant restaurant portfolio, much of which comes with significant real estate underlying the assets.

"Not a bad move for Mr. Fertitta," Cappaert said in the investors note. "We think in either event that the buyout price is cheap" and shouldn't affect the company's debt ratings.

An initial offer of $21 per share fell apart in October 2008 after Hurricane Ike damaged some of the company's restaurants in Texas.

Fertitta made a second offer of $13.50 per share that was abandoned in January because of a reluctance to disclose certain details to the Securities and Exchange Commission.

In September, Fertitta told a special directors committee to begin go-private discussions that would have had a subsidiary, Saltgrass Inc., spun off into a separate company. Landry's shareholders would receive shares in the new company in exchange for shares of Landry's. That offer was rejected by Landry's directors as being inadequate.

A special committee of the board can continue to solicit other buyout offers for the Houston-based company until Dec. 17, or until the debt refinancing is complete.

The transaction is expected to close in the first half of 2010 pending regulatory approval.

Landry's stock rose $2.93, or 27.23 percent, Tuesday to close at $13.69 on the New York Stock Exchange.

Station Casinos Asks For More Time

2009-10-27T15:22:00.001-07:00

The largest local casino company files for a four month extension in its Chapter 11 Bankruptcy case.

Las Vegas Sun
Station Casinos Inc. of Las Vegas has asked its bankruptcy judge for more time to exclusively propose a plan to reorganize its finances -- not a simple task given the recession and the competing demands of creditors.

In a motion filed Friday in U.S. Bankruptcy Court in Reno, Station asked Bankruptcy Judge Gregg Zive to extend by four months the period in which Station can exclusively file a reorganization plan. The current deadline is Nov. 25.

Such extensions are common in big corporate bankruptcies.
A key issue in the bankruptcy case is the 2007 going-private deal in which the Las Vegas locals gaming leader was taken over by affiliates of investment firm Colony Capital of Los Angeles and members of the founding Fertitta family.Certain creditors are complaining about a provision in the deal in which Station now leases four properties from itself, with the rental payments assigned to cover mortgage costs.

In its filing Friday, Station said it's studying potential changes to that lease arrangement, called the Master Lease.

"Resolution of the Master Lease undoubtedly will be a critical component of Station Casinos Inc.'s plan of reorganization."
A hearing on Station's motion to extend the reorganization plan filing deadline is set for Nov. 20, the same day Zive is scheduled to rule on a request by certain lenders that an examiner by appointed to study Station's finances -- a request opposed by Station.In filings last week, the company reported the book value of assets involved in the bankruptcy was $4.756 billion as of the end of the July vs. liabilities of $5.596 billion.

Station Casinos

Developer hopes to solve debt with bankruptcy

2009-10-15T16:52:00.001-07:00

More Las Vegas developer woes. This time the project hardly broke ground before they file for bankruptcy

Developer hopes to solve debt with bankruptcy - Business - ReviewJournal.com

A bankruptcy case filed by a company affiliated with developer John Ritter shows another way to unravel the finances of busted real estate projects in the Las Vegas area.

B-PVL1, a limited liability company, on Monday filed for Chapter 11 bankruptcy with a prepackaged plan of reorganization for 354 acres of land in central Pahrump and water rights.

bankruptcy, developer bankruptcy, B-PVL1

Can City Center Save Las Vegas?

2009-10-01T16:46:00.001-07:00

With the unemployment rate above 13 percent and foreclosures and bankruptcies going through the roof, it would seem like a hard time to keep a business running much less start one. But can the soon to be opened City Center save Las Vegas?

Can Restaurants Save New York City or Las Vegas Economies?
Which makes it strange that Las Vegas is counting on upscale restaurants to bail it out of the doldrums. The $8 million CityCenter opening in December certainly has attracted new players to the Vegas dining scene, including restaurant moguls from New York and Paris. It could certainly be a boost to a city where unemployment levels have reached 13.1 percent, as officials are saying it will create 12,000 permanent jobs.

On the other hand, someone has to buy those rooms and meals to keep the jobs. The Las Vegas Convention & Visitors Authority says tourist traffic was down by 6.8 percent — and that was only through June. And current plans at CityCenter call for more high-end dining establishments than casual meals.

“The last thing we need is 17 more restaurants in the inventory,” Elizabeth Blau, a partner at restaurants Society at the Wynn, Simon at Palms Place and Cathouse at the Luxor resort, told Nation’s Restaurant News. Here’s the current rundown on the interlopers … er, new restaurants:

ARIA Resort & Casino – December 16, 2009
ARIA has assembled many of the best and brightest chefs and restaurateurs from around the country, uniting a pair of remarkable Las Vegas newcomers with those who have played integral roles in the development of Las Vegas’ culinary scene: Masayoshi Takayama, Shawn McClain, Michael Mina, Julian Serrano, Jean-Georges Vongerichten, Sirio Maccioni, Jean-Philippe Maury and The Light Group. Each will deliver a concept totally new to their repertoire.

Vdara Hotel & Spa – December 1, 2009

Martin Heierling, the acclaimed innovator behind Bellagio’s renowned Sensi, will serve as executive chef for Vdara. Inspired by the ancient trade route spanning from Venice to the Far East, Silk Road will incorporate subtle spices and exotic ingredients to create modern trans-ethnic cuisine. Silk Road will transform as the day evolves, from fresh and lively at daybreak to chic and sexy at nightfall.

Crystals retail and entertainment district – December 3, 2009

Restaurants opening their first Las Vegas locations at Crystals include Eva Longoria Parker’s BESO and
Mastro’s Ocean Club, joining an exciting new pub concept by Todd English. Wolfgang Puck will open two innovative new restaurant concepts, including a contemporary interpretation of a traditional French brasserie with tastes of the Mediterranean region. Many more luxury brands and dining concepts will be announced at a later date.

Mandarin Oriental, Las Vegas – December 4, 2009

Situated on the 23rd floor will be the first U.S. restaurant by world-renowned, three-star Michelin Chef Pierre Gagnaire. Twist by Pierre Gagnaire will infuse the simplicity of classic French cuisine with a modern spin, relying on a pairing of flavors and textures for which Gagnaire is renowned. Guests also can enjoy small bites and high tea rituals at the Tea Lounge; fresh preparations of world-class cuisine at MOzen Bistro; and gourmet pastries, sandwiches and more at Amore Patisserie, located directly on Las Vegas Blvd.

Perhaps it’s merely a case of old habits die hard. After, the new owner of Tavern on the Green was reportedly willing to offer New York officials a huge 20 percent of his sales for a chance to see if he could make a profit from the landmark sitting on the parks and recreation district’s land.

City Center, Las Vegas, bankruptcy, financial trouble

Homebuild Jim Rhodes Turns Over Southern Nevada Operations to Lenders

2009-10-01T16:39:00.001-07:00

The foreclosure crisis hit not only the homeowners hard, but also the developers themselves.

Developer Jim Rhodes to turn over operations to lenders - Wednesday, Sept. 30, 2009 | 11:32 a.m. - Las Vegas Sun
Las Vegas homebuilder Jim Rhodes has agreed to turn over most of his Southern Nevada residential development operations to lenders to close his companies' bankruptcy cases, court records show.The plan was filed by lenders led by Credit Suisse Group AG that say they are owed $325 million. The Southern Nevada assets they are picking up include Rhodes' Rhodes Ranch and Tuscany developments.Rhodes is the founder and president of Rhodes Homes and will not be part of the new Nevada homebuilding company emerging from the bankruptcy.since Credit Suisse and the other lenders aren't in the home-building business, they're likely to be looking for buyers for the Rhodes Homes assets and other real estate assets they control in Southern Nevada.Those developments included more than 6,000 homes in the Las Vegas Valley.Objections to the plan are due by Dec. 3 and a Dec. 17 confirmation hearing in U.S. Bankruptcy Court in Las Vegas has been scheduled.Besides the golf communities Rhodes Ranch in southwest Las Vegas and Tuscany in Henderson, court records show the Rhodes assets include Spanish Hills, a high-end development in southwest Las Vegas. As of March 31, Spanish Hills had two partially-developed single-family estate lots, two finished lots remaining to be sold and 10 acres of undeveloped land.

bankruptcy, Rhodes Homes, Rhodes bankruptcy

Bankruptcy Hits Fontainbleau Las Vegas

2009-09-30T13:17:00.001-07:00

aAnother Las Vegas hotel is filing for bankruptcy. This time it is a project that is not even close to being completed.

Bankruptcy judge sets hearing on changing Fontainebleau Las Vegas bankruptcy to liquidation
A federal bankruptcy court in Miami will hear a motion Oct. 28 by lenders of the Fontainebleau Las Vegas seeking to convert the resort’s bankruptcy case to a liquidation.

The U.S. Bankruptcy Court for the Southern District of Florida set the hearing Tuesday, four days after lenders said selling the partially built casino-hotel was the only way to realize any value on loans they’ve made on the project.

Fontainebleau developers have told the court they are negotiating to sell the 24-acre project to an unnamed buyer.

But analysts say the buyer would need $1.5 billion to finish the resort; Fontainebleau already owes $1.6 billion.

Bank lawyers say no progress has been made in Fontainebleau’s reorganization.

FAQs about Bankruptcy

2009-09-30T10:04:00.001-07:00

Do you have unanswered questions about bankruptcy, or just want to be more informed before you visit an actual attorney? Here are some of the questions that you are asking about bankruptcy.

How long will my bankruptcy appear on my credit report?
When will I be able to get credit again?
Will I be able to keep my bank accounts?
Can I pay the debts I owe my doctor, or my family members?
What will I have to pay after bankruptcy.

All of these and more are answered at my official blog, just click on the link.
Bankruptcy FAQs

A Bankruptcy Story

2009-09-28T10:56:00.001-07:00

I found this story about a family on the brink. It just shows how hard it is for people to get help and file for bankruptcy

”I was always torn when the kids begged me to play Monopoly”, Jackie H. owned during a recent conversation. “I desperately wanted to share in their fleeting childhood fun but I literally didn’t have the stomach for that particular game at that moment in my life.”...The delicate thread of maintaining minimum payments on maxed out revolving credit was broken the night Jim fell at work on his shift and ended up in the hospital for several days with a head injury...“During my first meeting with the attorney, I kept apologizing for our pathetic financial statement. My attorney simply handed me the tissue box and let me spill my guts... Then he said the magic words: “There is light at the end of the tunnel.”
Source: http://findingmypassioninlife.com/bankruptcy-a-family-safety-valve/

The family filed a chapter 7 bankruptcy. This is a perfect example of how bankruptcy can help you in the most dire of situations.

bankruptcy, chapter 7 bankruptcy, financial trouble

Chapter 7 Bankruptcy: Video

2009-09-22T15:39:00.000-07:00

Chapter 7 Bankruptcy

Learn more about Chapter 7 Bankruptcy

Government Programs for First Time Homebuyers

2009-09-08T12:40:00.000-07:00

Government programs for new homeowners in the United States are available through Home Affordable Mortgage Program, President Obama's housing stimulus package. This particular program is titled First Time Home Buyers Stimulus and is a great opportunity for qualified buyers. The current housing market in the United States is quite depressed. President Obama structured this program to help boost housing sales, and also to help individual families obtain their own home. Market values of homes have fallen significantly, and with the current economic slump, foreclosures are at an epidemic level. However, there are a few requirements that must be met before anyone can receive funding from this program.

“Do I qualify?”

First off, you must have not owned a home in the past three (3) years. Also, the home must be your primary residence, meaning that vacation homes, summer homes, or rental properties do not qualify. There is also an income qualification, for a single person, you can only make $75,000 or less, and for a couple, $150,000 or less is the requirement. If your income does not fall under this level, you still may qualify for a partial credit through this program. To take advantage of the First Time Home Buyers Stimulus, you must close on the home between January 1, 2009, and December 1, 2009. This is quite important. There was another original stimulus program attempted for purchases in the last half of 2008, but it was more of a loan. There has been discussion about including these home purchases under this program in a modified way.

“How do I get this assistance?”

This stimulus funding is in the form of an income tax credit. You can obtain 10% of the purchase price of the home, up to $8000. This is a refundable tax credit that you file on your income tax return. You do not have to owe this much in taxes to take advantage of the program; it is refundable. You don't need to apply anywhere, and you don't have to contact anyone. You just need to be absolutely certain that you meet all of these application requirements if you are planning on filing for this income tax credit, documenting with all necessary paperwork. To make sure that all of this is done correctly it would be best to contact a tax professional.

Obama's programs for new homeowners allow you to take full advantage of the current financial situation. You will be making a purchase in a time when it is certainly a buyer's market. You will get more house for your money than ever before possible. And, if you apply the tax credit to the principal, you will increase your equity and financial strength even further. This is especially helpful for people whose credit was damaged by the recession.

-Randolph Goldberg

The Forgotten Foreclosures

2009-09-03T17:08:00.000-07:00

With all of the talk of new government programs to help homeowners in foreclosure, such as Hope Now and Project Lifeline, slightly more people in danger of losing their homes may have an extra option. At the very least, media coverage of these programs may inform more owners that it would be best to contact their mortgage companies in order to attempt to work out a solution. But for those who have already lost their homes to foreclosure, in some cases months ago, there will be no consolation prize to be found in these programs to help them regain their previous properties.

Unfortunately, the people who have lost their homes, either due to poor lending guidelines, financial hardships, or otherwise, are simply out of luck with all of these government programs to help in the foreclosure crisis. However, they did contribute to the rise of these programs in at least one significant manner: it took all those people losing their homes to persuade Congress that foreclosures were becoming such a large issue that they needed to be addressed in some manner. Of course, it took legislators an additional six months to get around to doing anything and creating these plans, which helped push even more homeowners into foreclosure. But it would not be a good idea for any homeowner currently or previously facing foreclosure to put too much faith in these government-sponsored plans. They involve only the largest banks in the country voluntarily helping out homeowners behind on their payments to create mortgage modifications or establish repayment plans to stop foreclosure. Not all mortgage companies are involved, which makes these programs much less effective, and the lenders that are participating can already voluntarily help put together payment plans or modify loan terms, hold off on a sheriff sale, or freeze the foreclosure process for a month or more.

Being a part of one government plan or another will not dramatically alter the ways that the banks and mortgage companies do business, and only the press coverage of these programs will help inform homeowners of their existence. For instance, most mortgage companies have a foreclosure or loss mitigation department already; the problem is that homeowners are simply not aware of their existence and do not utilize the resources the bank offers. Many end up selling, refinancing, or giving up on their homes, rather than attempting to qualify for a solution through the loss mitigation department at the bank. Thus, the government programs are not adding anything really new or devising creative solutions to any part of the foreclosure crisis, which makes the plans more a public relations stunt than anything. Homeowners who are unable to work with their banks now or do not qualify for a workout program will not find any additional help from the government programs than they could have found in their absence. The best bet is that, if homeowners lost their property before the government programs were created, nothing in the programs will help them get their houses back after they have been foreclosed.

Of course, there are numerous ways to regain a house after foreclosure, but they have nothing to do with the current plans put forth. In fact, homeowners who have already gone through foreclosure without the benefits of these government-sponsored solutions most likely would have lost the home even with the programs. They are voluntary for the lenders and not all lenders are involved in the programs and lenders can already do everything in the programs without government intervention.

-Randolph Goldberg

MySpace and Taxes

2009-08-27T13:47:00.000-07:00

According to The Wall Street Journal, the taxman may be checking MySpace and Facebook to find tax evaders.

In an article released on Aug. 27 by The Wall Street Journal¹, several state tax agencies have started mining social networks to find tax evaders. These evaders are found by looking at publicly posted information such as posts about them moving, or starting a new job. In several cases tax collectors have collected several thousand dollars from individuals.

Now, when a tax dodger can't be found, said Nebraska tax official Steven Schroeder, agents often turn to Google. One agent collected $30,000 of unpaid tax from a resident after a Google search found him listed as a high-ranking local marketing rep for a national firm. If a Google online search isn't productive, agents use the social sites or chat rooms in a last-chance hunt for their quarries.

However, there are limits to what these tax agents can do. In Nebraska and California, agents can only look at public information and cannot “’…’friend’ someone using false information.’…” Because of this, agents tend to turn to MySpace instead of Facebook because of the default settings on MySpace make adult profiles public whereas Facebook makes them viewable to only friends.

Not every state is using this method, although several states are considering using the social networks to help find tax evaders. Massachusetts said that is has “no systematic program” for mining the social media networks. The Wisconsin Department of Revenue and the Oregon Department of Revenue said that will consider using the web to help with collection. Many state tax authorities have access to social networks blocked on the workplace computers so that employees will not spend personal time on them, however they may now change their minds.

Other states are looking to the internet to aide them in audits and negotiations. In Minnesota, they use the web by checking businesses websites when they try to claim that they are cash strapped and cannot make payments. “At the time one tanning business was crying poverty to the state, agents pointed out that its site boasted of supplying all the tans for participants in a big body-building contest.”

This is just one example of how what people post on the web can actually come back to hurt them in the long run, not that people should be avoiding paying their taxes anyway. For those who may be avoiding paying their taxes, consider filing for a Chapter 13 bankruptcy. This can allow you to make affordable payments on back owed taxes.

-Randolph Goldberg

¹Saunders, Laura “Is 'Friending' in Your Future? Better Pay Your Taxes First.” The Wall Street Journal Aug 2009: 1 Dow Jones & Company The Wall Street Journal 27 Aug 2009 <http://online.wsj.com/article/SB125132627009861985.html>

Chapter 13 Bankruptcy

2009-08-21T14:30:00.000-07:00

Chapter 13 bankruptcy is a repayment plan, sometimes called a “wage earners’” plan. It allows people that have a regular income to repay all or part of their debts. With a chapter 13, a repayment plan is proposed that will make payments to the creditors over a three to five year period. The court will approve the plan, or revise it based on the debtor’s situation and eligibility. A chapter 13 also has its own advantages compared to a chapter 7.

The Advantages

There are several advantages that a chapter 13 offers over a chapter 7. One of the most significant advantages is that a chapter 13 allows people the opportunity to save their homes from foreclosure. A chapter 13 can stop the foreclosure process and may resolve past due mortgage payments. A chapter 13 also allows the individual the ability to pay other secured debts they may have incurred over the span of the bankruptcy (3-5 years). This may also lower the monthly payments of those debts. This chapter may also protect co-signers of those debts. The final advantage of a chapter 13 is that it acts as a consolidation loan. This means that the debtor will make payments to a trustee overseeing the bankruptcy and distribute those payments to the individual creditors. As a result the debtor will have no contact with the creditors which may prevent many financial headaches in the long run.

Eligibility Requirements

A chapter 13 is, however, not for everyone. There are several eligibility requirements that the debtors will have to meet. The first is that the unsecured debts must be less than $336,900 and the secured debts must be less than $1,010,650 (11 U.S.C. § 109(e)). These amounts are changed periodically due to changes in the consumer price index and inflation. A person is not eligible for a chapter 13 if, in the past 180 days, a prior bankruptcy petition was dismissed due to failure to appear in court, comply with orders, or was dismissed voluntarily after the creditors sought relief from the courts to recover property which the held liens upon (11 U.S.C. §§ 109(g), 362(d) and (e)). The debtor must have also, in the past 180 days, attended credit counseling from an approved credit counseling agency to file any kind of bankruptcy (11 U.S.C. §§ 109, 111). Any debt management plan made during credit counseling must be filed with the court.

To learn more about chapter 13 bankruptcy and how to file one visit Randolph Goldberg or US Bankruptcy Court.

A chapter 13 is defiantly a long process, but unlike a chapter 7, you get to keep all of your personal property. Although you should always sit down with an attorney and look at all of your options before filing any kind of bankruptcy to see if there is any other way to resolve your debt problems.

-Randolph Goldberg

Your Credit After Bankruptcy

2009-08-19T11:23:00.000-07:00

The decision to file bankruptcy is not an easy one. Although a bankruptcy can relieve a person from most of their debt, it is often a last resort for many people in this trying economic time. People often worry how a bankruptcy will affect their financial future. There are many myths about bankruptcy floating around that may deter someone from filing a bankruptcy that would be more beneficial than harmful.

One question people have about bankruptcy is, “Will my credit be ruined forever?” Although a bankruptcy is tough to go through and stays on your credit for 10 years, it does not ruin your credit. Many people, in fact, obtain higher credit scores after a bankruptcy due to successful changes in spending habits. A good first step to reestablishing credit after a bankruptcy is to actually watch your credit. There are dozens of companies that advertise that if you sign up for their program you can check your credit as often as you chose. This is great, but generally unnecessary. Anyone can get a copy from each of the three credit bureaus once a year. What many people do not know is that all three of these reports can be staggered so instead of receiving three reports once a year, you can receive one report every four months. This is especially helpful in post bankruptcy years because it allows you to check for errors like debt that is listed more than once, or accounts that are closed and still listed as open. These reports can be ordered online at annualcreditreport.com or by phone at (877) 322-8228.

Another misconception people have about bankruptcy is that after filing they will never qualify to buy a house or a car. This is not entirely true. The trick is that you have to rebuild your credit over time. An easy way to do this is to obtain a credit card with a low limit and pay it off every month. Also you should make sure that your new credit card reports to at least two, if not all three credit bureaus every month. Many people are overwhelmed with credit offers after filing bankruptcy. However, you should only charge what you can afford to pay off at the end of the month to avoid being considered as still being a credit risk to the credit card companies. This rebuilding process can take 2-5 years, but some people come out of a bankruptcy with a higher credit score than before due to better spending habits.

Whether you decide to file a chapter 7 or a chapter 13 bankruptcy, it is the decision that you make in the years to come that will affect your credit more than the bankruptcy itself. A bankruptcy is a chance to start fresh so take full advantage of it.

-Randolph Goldberg

Chapter 7 Bankruptcy

2009-08-17T13:04:00.000-07:00

Chapter 7 bankruptcy, sometimes called a “straight bankruptcy”, is one of the simpler chapters to file under. In short it is the liquidation of the debtor’s property in order to pay off their outstanding debts. However, there are several alternatives to a chapter 7 which should be looked in to before filing.

Alternatives

Alternatives to a chapter 7 include filing a chapter 13 or a chapter 11 if you own a business and wish to stay in business. A chapter 13 allows you to save your home from foreclosure and to catch up on outstanding debts by making a repayment plan. A chapter 11 bankruptcy is generally for business owners who wish to say in business. This is done by either adjusting the debt that is owed by reducing it or extending the repayment time. The owner may also seek reorganization, which is more comprehensive.

Eligibility

To be eligible to file a chapter 7 bankruptcy your income must be below average for your area. If this is not the case then you must pass a means test to determine whether you are eligible to file a chapter 7, or if you must file a chapter 13 instead. This will be determined when you meet with your attorney to file for bankruptcy. A chapter 7 also does not take care of all debts. Debts that it does not cover include taxes, child support, student loans, fines and restitution, and alimony. Filing a chapter 7 also does not mean you will lose everything.

“Will I Lose Everything?”

A common concern that people have is whether or not they will lose everything. The answer is no, some of your property is exempt from liquidation. These include your car, your home, clothing, and anything else necessary for survival and to earn a living. This comes as a relief to a lot of people worried that they may lose their home and general livelihood due to a bankruptcy. This is one of the many benefits of filing a chapter 7 bankruptcy.

Benefits of Chapter 7

There are many benefits to filing a chapter 7 other than just keeping your house and car. Speed is a big factor when it comes to chapter 7. As opposed to a chapter 13 which can take up to 5 years to complete, a chapter 7 only takes about 5 months. There is also no repayment plan to deal with which means less hassle in the long run. While filing you are also protected from annoying creditors. This means no more phone calls, wage garnishment, repossessions, and foreclosure proceedings. Also you will benefit from an improved credit rating. This may sound weird, but it’s true, most people come out of a bankruptcy with a higher credit rating in the long run. For tips on how to do this see “Your Credit After Bankruptcy”

Cost

In addition to attorney’s fees, a chapter 7 does not cost much. There is a required filing fee of $300 due to the bankruptcy court, and a credit counseling course before and financial management course after filing as required by the new bankruptcy law in 2005. These can cost anywhere from $35 to $50 per course.

-Randolph Goldberg

Loan Modification

2009-08-10T11:42:00.000-07:00

We hear about loan modification all the time, but what is it exactly?
When borrowers are unable to make their loan payments due to fiscal hardship, the bank has a few options. These options are not pretty for anyone, but the best option is usually loan modification.
Loan modification means negotiating with your bank in an effort to come up with a more realistic payment plan. A successful loan modification also means that you don’t lose your home to foreclosure.
Loan modifications allow the bank to make loan payments more affordable for borrowers. They may change interest rates, loan terms, loan balances, or other parts of the loan agreement.
A loan modification allows the bank to make the loan more affordable for the borrower. They may change the payment amount, loan balance, interest rates, loan terms, or other parts of the loan agreement.
Come visit my site to learn more about loan modification and how it can benefit you.