Welcome to Bankruptcy Guide
Bankruptcy Mortgage Loan Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Figuring the Value of Your Bankruptcy Car Loan
from: Deb St. George - HomelessInKingCounty.comMost people have a car loan when they file bankruptcy, so the old and new bankruptcy laws address loans on vehicles. Unfortunately, the new laws are tougher on debtors in terms of how much you must repay on your outstanding loan. This forces the debtor to pay the full amount for loans that even have excessive interest rates.
Under the old bankruptcy laws, debtors only had to repay the value of the vehicle they owned. That meant you only had to pay back the current resale value and not the retail value of the vehicle. Under the new law, if you have had a loan placed on the car within the last 3 years, you will have to pay the full amount of the loan.
This is one of the most significant changes in the new bankruptcy law. Under the old law, the courts would have determined the real value of the car and then figured up what you had paid to date and what you would owe in payments to reimburse to that value. Under the new law, you have to pay the full amount or lose the car.
This means that if you took out a loan at a high interest rate, you will still have to pay back the full loan. In effect, you are paying 2 or 3 times what the car is worth. This law change made it most difficult on those who had to accept less than desirable car loans in order to obtain a vehicle. Of course, under a chapter 7, you can surrender the car if you simply cannot afford to make the payments. But once again, that makes it difficult to recover from a bankruptcy when you have no car to drive. Under a chapter 13, the car loan payment is included in your repayment plan.
Speaking of bankruptcy car loans, you will probably be inundated with car loan offers once your bankruptcy is discharged. You won’t ask for the information, but plenty will show up in your mailbox. Auto dealers know many people surrender their cars and need a vehicle, and so they track bankruptcy court records to find out who has filed. The letters claim to want to help you rebuild your credit, but you must be very careful. Odds are the car loan will be charged a premium interest rate because of your credit rating.
The good news is that if you can afford to buy a car, and don’t have one, the bankruptcy will not stop you from finding interested lenders. It’s important to remember though that you don’t want to start creating new debt that you cannot afford to pay. You cannot file another chapter 7 for 8 years or a chapter 13 for 4 years. New creditors see themselves as first in line again in terms of collection status.
Bankruptcy Mortgage Loan News
Foreclosure Lawsuit Questions Dog Mayor - LoanSafe
Foreclosure Lawsuit Questions Dog Mayor LoanSafe The exact timing of his last payments to GMAC is part of the current dispute with the lender, he added. GMAC Mortgage is the mortgage unit of Ally Financial Inc. It is now known as ResCap and filed for Chapter 11 bankruptcy earlier this month. |
Fortress Seeks Servicing Rights From $4 Trillion Sale: Mortgages - San Francisco Chronicle
Fortress Seeks Servicing Rights From $4 Trillion Sale: Mortgages San Francisco Chronicle May 23 (Bloomberg) -- Fortress Investment Group, whose funds own 77 percent of mortgage servicer Nationstar Mortgage Holdings Inc., is leading the race for $4 trillion in home loan collection rights as banks exit the business. |
A Danger Lurking in the Shadows - Huffington Post (blog)
A Danger Lurking in the Shadows Huffington Post (blog) First, Congress has carved out a special exemption for repo transactions from the usual requirements of federal bankruptcy law. Traditionally, if a borrower goes bankrupt, the lender has to compete with other creditors in the bankruptcy process to ... |
OneUnited squares off with church in bankruptcy court - Boston Herald
OneUnited squares off with church in bankruptcy court Boston Herald By Jerry Kronenberg The historic Charles Street AME Church's lender argued in court today that the Roxbury congregation can't avoid foreclosure by filing bankruptcy because it's just an arm of the cash-rich African Methodist Episcopal movement. |
Ally's mortgage unit files for bankruptcy - CNNMoney
 USA TODAY | Ally's mortgage unit files for bankruptcy CNNMoney The company said that it expects GMAC to continue to make and service mortgage loans while the bankruptcy process is completed. The portfolio of home loans it holds, now valued at less than half its original value, will be auctioned off as part of the ... ResCap Judge Says Request for Bankruptcy Loan 'Unfair' Former subprime lender ResCap files for Ch. 11 Former GMAC puts mortgage unit in bankruptcy |
Homeowners vent anger at PTSB's 'moral bankruptcy' - Irish Independent
 Irish Independent | Homeowners vent anger at PTSB's 'moral bankruptcy' Irish Independent Those were the feelings amongst outraged Permanent TSB (PTSB) mortgage holders who gave the bank's bosses a roasting at the annual general meeting yesterday. Describing the bank as "morally bankrupt", they lambasted management for their "extortionate" ... |
Ally to Sell Non-US Units as ResCap Goes Bankrupt - BusinessWeek
 Bloomberg | Ally to Sell Non-US Units as ResCap Goes Bankrupt BusinessWeek By Dakin Campbell on May 14, 2012 Ally Financial Inc. (ALLY) (ALLY), the auto lender whose mortgage unit went bankrupt, may sell international car- finance and insurance operations to help repay a $17.2 billion US bailout, Chief Executive Officer ... Ally to Sell Non-U.S. Units as ResCap Goes Bankrupt Ally hopes to end mortgage woes with ResCap bankruptcy Ally Fincl: ResCap Mortgage Subsidiaries File Chapter 11 |