Recent Posts in bank Category

Starting today, June 1, 2010, HAMP Home Loan Modifications cannot be denied because you are in an active chapter 7 or 13 bankruptcy.

This is significant for many consumers. Many consumers facing foreclosure need both bankruptcy and a modification.

A bankruptcy filing will automatically stay a foreclosure on your home and a modification of the terms of the mortgage will make the home more affordable.

For more information about this important change please visit https://www.hmpadmin.com/portal/docs/hamp_servicer/sd1002.pdf

When you stop paying your credit card bill the bank will want to find a way to get you to start paying again. The first step will likely be making phone calls and sending letters. If that does not work the bank may hire a debt collector to turn up the heat on you.

The collection agency will call, a lot. And send many letters. If still you are not paying your bank will likely hire a local debt collection law firm to attempt to collect.

The law firm will likely again send more letters and make more phone calls. If still not payment is made then they are likely to bring a lawsuit against you.

In order to start a law suit the bank will have to file a complaint and serve a summons on you.  

In my experience it typically takes 10 - 12 months from the time of the first missed payment and the time of the law suite.

Filing for bankruptcy will likely stop all collection calls, letters, and law suits the moment the case is filed.

As you may have heard there are several new credit card regulations. One such regulation prohibits banks from charging over draft fees unless you “opt in.”

If you chose not to “opt in” to the service your credit card or debit card transactions will be declined if they exceed your limit or would over draw your bank account. However you cannot be charged an over draft fees.

Before this change banks allowed most customers to over draw their accounts or exceed their credit limit and then charge fees for exceeding the limit.

Banks will no longer be able to do this UNLESS you tell them it is okay to allow you to over draft your account and to charge you over draft fees. Some banks are currently undertaking marketing campaigns to convince customers to opt into over draft fees.

Banks make a lot of profit on over draft fees and they do not want to lose them.

It’s up to you to opt in or not but it will cost you if you do. In my humble opinion, do not opt in save your money and do not pay banks extra fees.

Leave it there.

An individual filing a chapter 7 bankruptcy case you may be able to exempt up to $11,200 ($22,400 for a married couple) of cash and bank deposits.

If the money is exempt it will not be touched by the bankruptcy court, trustee, or your creditors. Simply put you can keep.

If you are filing a chapter 13 case there is no liquidation of your assets, unless you want there to be, so here again you can keep the money in your bank.

If you have cash and bank deposits that exceed the exemptions, fear not, you may be able to protect some of the non-exempt money by placing it into an IRA or putting a new roof on your home. I strongly encourage you to meet with a lawyer prior to planning any exemption.