AT LEAST THE COLLEGE TUITION IS PAID…OR IS IT?

This is a common scenario in this economy. Parents struggling to make ends meet,  try to make sure to pay their children’s college tuition first,  so their kid gets a good education.    Parents then have to choose what to pay next and sometimes,  have to let the rest of the bills take a back seat.   They end up amassing huge credit card debt and/or second mortgaging their home, losing the equity.  And sadly, when things get badly out of control,  the parents might have to file for bankruptcy.   Even though the tuition has long been paid to the university, and 

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The Walking Debt

No, the title of this article does not contain a typo and it is not about the popular television series. It is about debt that will not die: the so-called “zombie” debt. You think it is dead but just when you least expect it the debt rears its ugly head, usually as a blemish on your credit report that you learn about from the finance manager at the car dealership or the mortgage broker after you have applied for a loan to buy a new house or refinance your mortgage. Old and forgotten, but old is new for the debt buyer. In some instances 

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Never Ending Saga of Creditor Bad Behavior – Continued…

I Filed My Bankruptcy Case And Now My Payments Are In A Suspense Account, What is that? You were behind on your mortgage but you solved the problem by filing a Chapter 13 Bankruptcy Case.  Now the Bankruptcy Trustee is paying your mortgage arrearage through the Chapter 13 Plan and you are making your current monthly mortgage payments on time outside the Plan.  Your situation should be improving but an examination of your monthly statement reveals new charges to your account and your monthly payments are not being applied to your mortgage, the payments have been deposited into a “suspense 

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More Bad Creditor Behavior – Mortgage Servicers Attempt Collection of Discharged Debt.

 We have written about debt collection by debt buyers and the issues that arise in this context (http://bit.ly/1db3ofX ), but collection by mortgage servicers raises issues as well, especially if you have concluded a short sale or filed a bankruptcy case and are no longer legally responsible for the debt. What is a mortgage servicer and why should you care? You have a mortgage and you are making monthly payments but really, who are you paying?  In many instances, the answer is that you are paying a mortgage servicer.  These companies have acquired the right to receive payments on your 

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What does the Detroit bankruptcy have in common with your small business case?

 There has been a great amount of discussion about a classic car collection and the value of the old masters housed at the Detroit Institute of Arts.  Does that mean these assets will be sold to pay creditors? Will your business assets be sold?  Not necessarily. Every bankruptcy starts with a liquidation analysis. In simple terms, the liquidation analysis informs the decisions you must make concerning reorganization in bankruptcy.  You prepare the analysis by listing all of your assets of any nature, along with their respective values, and then you apply the available federal or state exemptions depending upon the 

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