Posted by Sterling on April 17, 2005 at 15:28:36:
… with phone # deleted…
QUOTE
to get information on the legislation right away, please don’t hesitate to call us toll free at 1 (877) XXX-XXXX, or use our free online case evaluation form to schedule a no obligation consultation with one of our attorneys. Whatever you do, don’t delay; time may be of the essence.
END OF QUOTE
Bankruptcy News - Posted by Craig-OH
Posted by Craig-OH on April 15, 2005 at 03:14:22:
It was great meeting everyone at the conference. Thanks to all for sharing information and for the great discussions. I thought you might be interested in reading this news release that was recently posted on MSNBC website. The article was titled “House passes bankruptcy bill”.
Re: Bankruptcy News - Posted by banker
Posted by banker on April 15, 2005 at 20:33:11:
If there’s doubt on the front-end on the deal, then have a relative or friend of theirs sign a Personal Guaranty for payment. I adapted one from a loan guaranty agreement I got my hands on. Now I have a form for a lease, a contract, and a rental agreement. With the right wording, if they default or go bankraupt, you just turn to the Guarantor and say “Pay up!”
Re: Bankruptcy News - Posted by Ben_V(LA)
Posted by Ben_V(LA) on April 15, 2005 at 09:47:32:
That is definately good news for people like us. If a person qualified to buy a MH from you then they are almost assured to be forced into Ch 13 by the means test if they try to file bankruptcy. You still get paid, even if it is slower.
Re: Bankruptcy News - Posted by Sterling
Posted by Sterling on April 15, 2005 at 20:04:29:
You won’t necessarily get paid just because the debtor files Ch 13
instead of Ch 7. In an actual Ch 13 case the debtor owed $40,000.
His repayment plan called for 37 payments of $410 each or $15,170
total. That means that approximately $25,000 of his debt was
discharged without payment. In the end the debtor made only 34
payments, not 37, because some of the creditors ignored the notice
from the court and simply wrote off the debts. Not only that but after
the case was discharged the debtor got a refund from the trustee.
Ch 7 may be better for the creditor than Ch13. Suppose you hold a
$4,800 note, zero interest, payable in 24 installment of $200 each.
After 3 payments, still owing $4,200, the maker defaults and files for
BK. Under Ch 7 you MIGHT be able to repo the collateral and be none
the worse off after finding a new buyer.
If the debtor files for CH 13 he gets to keep all assets so repo is out.
Plus the creditor may get only 10 cents on the dollar, meaning that
instead of getting back $4,200 he gets $420 payable in 60 installments
of $7 each.
Ch 13 trustees have great discreation in deciding who gets paid first.
Some creditors with secured loans still get some interest and they
usually get paid first. Those with unsecured loans get paid last.
As far as I know the new law simply imposes a means test without
changing the rules of who gets paid and how much. If the new law
brings pre 1970s rules back, when Ch 13 filers paid back everything,
albiet without interest, then the above scenario could not happen
again.
The bill was first introduced during the first Bush administration. Its
immediate impact was an increase in bankruptcies filed, fueled by
bankruptcy lawyers advertising “this may be your last chance.”
Re: Bankruptcy News - Posted by JohnP
Posted by JohnP on April 16, 2005 at 07:26:58:
Well, here is another law that helps big business and lines our politician’s pockets. The credit card companies are probably the ones who will benefit from this, since they where the contributors to the politcian’s campaigns. Anyway a bunch of baloney, that is why it is important to screen your buyers well. You can not tell who will file for bankruptcy, but you can at least put the odds in your favor with good screening.
JohnP
JohnP
May not effect Lonnie dealers much - Posted by Sterling
Posted by Sterling on April 17, 2005 at 14:30:48:
Looking into this I think it may not effect Lonnie dealers much. The core of the legislation is the “means test” which lets the court determine if the debtor could pay off his debts under Ch 13. I have a feeling that most Lonnie buyers, who come from the lower income classes, will be able to pass the test with flying colors and still file Ch 7.
I’m unable to find a precise date on when the new law goes into effect but parts of it do not go into effect for 18 months. Banks are gearing up (i.e., planning to raise interest rates and setting aside contingency funds) for a flood of new bankruptcies as debtors rush to get in under the wire. Watch for a new flood of ads from bankruptcy lawyers.