Great reminder from a great attorney and fellow NACBA member that how you look at your situation and the words you speak have power in your life. Let your words echo your attitude and have faith and hope and look at Bankruptcy as a new beginning.

http://www.legalquestion.com Attorney Richard Baker

http://www.bankruptcylawnetwork.com/2010/08/07/isaiah-5719-and-bankruptcy/?utm_source=twitterfeed&utm_medium=twitter

Principal Reduction on Mortgages.  This Reuters Article/Blog finally discusses principal reduction being on the table for Fannie Mae and Freddie Mac...about time!

http://blogs.reuters.com/james-pethokoukis/2010/08/05/an-august-surprise-from-obama/?cp=5#comment-8818

Look folks...the blame game is pointless.  Stabilizing the US Housing Market is the KEY to ending the recession.  If the cramdown bankruptcy bill would have passed in May 2009, the real estate market would already be stable and more people would have kept their homes...this is just an executive version of that bill.  

Hey, we've already paid Fannie & Freddie the $75billion.  The bankruptcy cramdown would have done the same except not on the backs of taxpayers.  Thank Republicans for the extra TAX! 

Many members of Congress already got their $$$ from the banks so cramdown failed.  Wanna blame somebody, blame the GOP, Big Banks and their stranglehold on Congress for many years before President Obama.

The irony is when we try help THE PEOPLE, it's a handout....when we help the banks, its a bailout!  This is non-sense.  Moral problem if it's a US Citizen but no moral problem when a bank walks away from a bad investment.  The only reason people are walking away from their homes is they are now thinking like bankers...it's a business decision.  This gives them a reason to keep paying and keep their home!  Consumer Bankruptcy Attorney Richard R. Baker, Orlando, Florida www.legalquestion.com

How much do I have to pay unsecured creditors in my Chapter 13?

A less experienced Bankruptcy Lawyer I know recently asked me about his Chapter 13 Bankruptcy client who owned a rental property that actually had some equity in it; very rare these days.

He wanted to know whether it would have to be liquidated (sold) to pay unsecured (usually credit card) debts in the case? 

The real question is not whether it has to be sold, as Chapter 7 is liquidation whereas Chapter 13 is an individual reorganization and no liquidation occurs.  The real question is if he keeps the rental property and it has non-exempt equity, what does that mean?

The answer is that the non-exempt equity in the rental house establishes the “floor” or minimum amount required to be paid pro rata to all allowed unsecured claims but no liquidation occurs.

My less experienced Bankruptcy Attorney friend forgot or did not realize that there are actually two (2) tests to determine how much gets paid to the unsecureds in a Chapter 13 bankruptcy case. 

The above example of non-exempt equity establishing the minimum payout to the unsecureds is called the liquidity test.  The other test is whether there is any excess disposable income left for the unsecureds after payment of priority and secured debts in the Plan.

A new third test may result soon based on the recent U.S. Supreme Court decision of Hamilton v. Lanning; more to come on that one.

This issue points out an advantage to filing Chapter 13 Bankruptcy.  The Debtor remains in control of assets and can keep them.  They may have to repay some portion of their debts but it could be pennies on the dollar relative to what they gain in keeping assets. I call these cases “Liquidity 13s.” 

The rule is that the unsecured creditors have to come out as well in Chapter 13 as they would in a Chapter 7 case where assets are liquidated to pay unsecureds.  The advantage of the 13 is control over the asset is not in the hands of a Chapter 7 Trustee.  By Consumer Bankruptcy Attorney Richard R. Baker at BAKER LAW, PLLC. www. LegalQuestion.com

 http://www.facebook.com/pages/Winter-Park-FL/BAKER-LAW-PLLC/12498355753631

 www.Twitter.com/BakerLawFL 

Offices in Winter Park, Florida.

The Court System’s Latest Headache: Debt-Collection Suits - Law Blog WSJ:http://bit.ly/bOe1E1 

As Pete Barry said at NACBA in San Francisco in May, Debt Collectors in a recession are like dogs you don't feed...they start chewing on the furniture.  Who's the furniture?  Consumers!  My Clients!  Due to the increased number of debt buyers, the lawsuits are now coming in greater numbers, putting even more pressure on cash strapped consumers trying their best to keep current.

As Dick Rubin states in this article (a longtime expert just like Pete Barry from Minnesota), it is a factory approach to practicing law.  Note the NY firm mentioned files 80,000 lawsuits a year!

So what does this mean?  It means that if you are behind on debts and can't catch up, a debt collector lawsuit is more likely than ever.  With more debt collectors suing first and asking questions later, get PROACTIVE!  Explore your options and speak with an experienced Consumer Bankruptcy Attorney.

At BAKER LAW, I serve, counsel and represent clients in Greater Central Florida, including counties of Orange, Seminole, Osceola, Lake, Brevard, Volusia and Polk.  We serve many cities including, Winter Springs, Winter Park, Maitland, Altamonte Springs, Sanford, Oviedo, Orlando, Fern Park.  

As a federal debt relief agency law firm, we help people solve debt problems so visit us at www.legalquestion.com and read some of my blogs that may help you.  You can also follow me on Twitter at twitter.com/BakerLawFL for the latest information on these issues.

Three Reasons Why Upside Down Homeowners Should Consider Bankruptcy http://bit.ly/9fXgln 

Another good blog that ties in with a recent blog I wrote on this very issue.

Three Personal Finance Mistakes That Lead To Bankruptcy http://bit.ly/9u2fAC  

Please become a Fan if you are interested in useful and interesting information on debt and foreclosure issues.  For up to the minute updates become a fan at

http://www.facebook.com/pages/Winter-Park-FL/BAKER-LAW-PLLC/124983557536315

Central Florida Consumer Bankruptcy Attorney Richard R. Baker www.legalquestion.com

You have options and you have rights so...KNOW your options!

http://ezinearticles.com/?New-Federal-Loan-Modification-Rules-To-Now-Work-With-Chapter-13-Bankruptcy-Laws-&id=4353662

Fight to save your Home or Walk Away? Why hiring an experienced Attorney Matters

The decision to fight to save your home or to walk away or surrender in a bankruptcy case is not an easy one.  The important thing to remember is that you should not make your decision based on the skill level of your Attorney.

With so many new and inexperienced Bankruptcy Attorneys, the easy advice is to file Chapter 7 Bankruptcy and surrender your home and start fresh.  Sometimes, this is the smart decision…sometimes it is not.  The truth is that many new Bankruptcy Attorneys know very little about your true options and do not even handle Chapter 13 Bankruptcy cases so unfortunately, they may try to direct you to what they do handle…Chapter 7 Bankruptcy.  This may not be the best option for you and they may not be able to competently advise you on your real options.  This is why experience matters.

The factors you want to closely consider are:

Your Current Income

The amount of your Mortgage Payment

The Market Value of your Home

Whether you have a Second Mortgage

These factors drive the advice I give clients on whether to hold on to their home or to let it go.  What I find is that some people are “DONE” with it all.  I understand that; however, don’t let your current frustrations drive your decision to keep or not keep your home. 

When speaking with an experienced Consumer Bankruptcy Attorney (not an Attorney who files bankruptcy cases…know the difference?) you may learn of other alternatives you had no idea existed and may help.  If your lawyer has never filed a Chapter 13 case, you must realize that so ask them if they only do Chapter 7 cases!  You have a right to know so you can make the smart decision. To learn more, contact Consumer Bankruptcy Attorney Richard Baker at www.legalquestion.com