Indiana Attorney General Sues Mortgage Aid Companies

A Chapter 13 bankruptcy provides relief from creditors and can halt foreclosure proceedings.

2012-11-17

November 17, 2012 (Press-News.org) Indiana Attorney General sues mortgage aid companies

Recently, the Indiana Attorney General filed five lawsuits suing mortgage aid companies for deceptive practices. This is not solely a problem in Indiana. The Federal Trade Commission announced in October that it also had sued three companies. The FTC suits sought to shut down the companies.

The mortgage aid companies are accused of scamming financially distressed homeowners with claims that they could help the homeowners avoid foreclosure. In many cases, these companies ask for upfront fees that can reach thousands of dollars. The FTC, in 2010, passed a rule banning mortgage foreclosure rescue and loan modification companies from collecting fees until providing proof a lender was willing to work with the borrower. The federal lawsuits charge that the companies requested advance payment for mortgage relief services.

Unfortunately, these companies can make matters much worse for struggling homeowners. In contrast, a Chapter 13 bankruptcy is a way to stop creditor harassment, pay mortgage arrears and eliminate or reduce unsecured credit card debt.

Bankruptcy protections

In bankruptcy, an automatic stay prohibits collection efforts and freezes the foreclosure process on a home. In some cases, however, a homeowner may be too late to benefit from the protection of the automatic stay.

If the foreclosure process is nearing a sheriff sale, a homeowner may be too late in seeking bankruptcy relief. In a New York case, a couple filed for Chapter 13 relief two hours late. Their home was sold at a foreclosure sale before they received an automatic stay. Because they no longer owned the home when they filed for Chapter 13 bankruptcy protection, they were not allowed to keep their home or propose a plan to deal with the mortgage.

How Chapter 13 works

A Chapter 13 payment plan allows for repayment of mortgage arrears and other debts over a fixed period. When it comes to a mortgage on a principal residence, a plan may not be able to modify the rights of the bank, but will allow time to pay past due balances and reinstate regular installment payments.

If a home is underwater and subject to a second mortgage or home equity line of credit, Chapter 13 may allow the debt to be "stripped." The second mortgage or line of credit may be treated like unsecured credit card debt, because there is no longer home equity securing the debt.

If your home is going into foreclosure, you may need to file for bankruptcy sooner than planned to ensure your home is included in the bankruptcy estate. The decision to pursue a Chapter 13 rather than a Chapter 7 bankruptcy will vary on your individual circumstances. Consulting with an experienced Indiana bankruptcy attorney is the best way to determine which option best suits your needs.

Article provided by Redman Ludwig, P.C.
Visit us at www.redmanludwig.com

ELSE PRESS RELEASES FROM THIS DATE:

Understanding Potential Liability In Alaska Aviation Accidents

2012-11-17

Understanding potential liability in Alaska aviation accidents In July of 2012, former Alaska State Representative Cheryll Heinze died from injuries she sustained in a small-plane crash during a fishing trip. The Cessna 206 in which the 65-year-old was riding crashed while landing on a southern Alaska lake. The other four passengers escaped with only minor injuries. Though the National Transportation Safety Board (NTSB) has preliminarily ruled the crash to be an accident, the exact cause of this tragedy remains unknown. Strong wind was blowing across Beluga Lake when ...

Do Aging Doctors Put Patients' Safety at Risk?

2012-11-17

Do Aging Doctors Put Patients' Safety at Risk? As much as we don't always want to admit it, the unfortunate truth is some abilities decline with age. For some people, the biggest challenges come from physical changes, like impaired coordination, loss of strength, increased fatigue or trouble with vision and hearing. For others, cognitive problems like memory loss or dementia can take a huge toll. This loss of functioning can bring serious safety risks. Most people have heard stories about elderly drivers who cause serious accidents and the resulting calls for new ...

Review of Oregon Alimony Case Denied by U.S. Supreme Court

2012-11-17

Review of Oregon alimony case denied by U.S. Supreme Court Complex financial factors can challenge the smooth resolution of any divorce case, even if the spouses generally agree on issues of property division, child support or spousal support. More often, there is some disagreement over issues such as one spouse's obligation to pay or how a fair division of marital debt should be accomplished. An Oregon divorce dispute that originated in Linn County in 2009 has finally come to a conclusion after the U.S. Supreme Court refused to hear the case. Both the Oregon Court ...

Discrimination Against Obese People In The Workplace

2012-11-17

Discrimination against obese people in the workplace Even though more than one third of the adult population in the U.S. is obese, social and workplace discrimination against obese people is persistent and pervasive. Obesity is medical condition in which a person accumulates excessive body fat to the extent that it may have an adverse effect on health. It is determined by a person's body mass index (BMI.) In general, a BMI of 25 to 29 is overweight, a BMI of 30 to 35 is obese, and a BMI of 35 or greater is considered morbidly obese. According to a recent online ...

Study: New Nursing Home Patients At Heightened Risk Of Falling

2012-11-17

Study: New nursing home patients at heightened risk of falling Usually, when someone ends up in a nursing home it is because their health is so fragile that living at home is no longer a safe option. When a loved one is admitted to a nursing home, most of us expect that they will be well-cared for. Unfortunately, nursing home neglect and abuse are real problems. Too often, nursing home patients do not get the care and attention they deserve. This problem is highlighted by a recent study showing that 21 percent of all newly-admitted nursing home residents suffer a ...

New York Participates In National Safe-Driving Campaign

2012-11-17

New York participates in national safe-driving campaign On October 14, 2012 New York State Police, the Federal Motor Carrier Safety Administration and the Commercial Vehicle Safety Alliance held a press conference in Westchester County, N.Y to launch a nation-wide safety campaign targeting unsafe driving practices in commercial vehicles called Operation Safe Driver. Operation Safe Driver The week-long safety program is a partnership between federal safety agencies and state authorities aimed at reducing motor vehicle accidents involving commercial vehicles. Officials ...

Can the Police Draw Your Blood Without a Warrant? Supreme Court to Decide

2012-11-17

The United States Supreme Court recently decided to hear a case that could have an impact on the approximately 1.4 million people who are arrested nationwide for driving while intoxicated each year. The legal issue before the court is whether those who have been stopped on suspicion of DWI have Fourth Amendment protection against forced blood tests. The case, Missouri v. McNeely, began when a highway patrol officer in Missouri pulled over Tyler McNeely for speeding. During the stop, the officer claimed that McNeely's behavior gave him cause to believe that he was intoxicated. ...

How Can Workers Ensure On-the-Job Safety?

2012-11-17

According to the U.S Bureau of Labor Statistics, private employers reported almost 3 million non-fatal injuries and illness among their employees in 2011. While laws exist to help provide safe workplaces for workers in the U.S., employees themselves can take steps to help protect themselves while on the job. Education One of the most important things that employees can do to help promote workplace safety is to educate themselves. Workers should be aware of the Occupational Health and Safety Administration's industry-specific safety standards for the fields in which ...

Georgia Woman Contracts Meningitis from Contaminated Steroid Injection

2012-11-17

Consumers put a lot of trust in drug companies to produce and sell drugs that they believe will cure our ailments. But when things go wrong consumers and patients may end up with more problems than they may have started with. In Macon, Georgia, an elderly woman contracted fungal meningitis after using contaminated steroid injections to treat her back pain. Georgia's first steroid injection meningitis case The elderly woman had received an epidural injection of preservative-free methylprednisolone acetate at the Forsyth Street Ambulatory Surgery Center in Macon, the ...

New Study Reasserts the Importance of PSA Testing for Men

2012-11-17

Recent controversy over prostate-specific antigen (PSA) testing for prostate cancer has left many men confused. In May 2012, a report was released with new government guidelines regarding PSA testing. The guidelines discouraged the use of the blood test that looks for PSA in high levels as an indication of prostate cancer. This controversial statement has been challenged by many medical professional who reassert the need for this testing. The new guidelines In the new guidelines, the concern was that with routine PSA testing, men were being unnecessarily treated for ...

Inhibition of cyclooxygenase-2 upregulates the nuclear factor erythroid 2-related factor 2 signaling pathway to mitigate hepatocyte ferroptosis in chronic liver injury

Indiana Attorney General Sues Mortgage Aid Companies

ELSE PRESS RELEASES FROM THIS DATE:

LAST 30 PRESS RELEASES: