Student Loan Payments Are Restarting. See the below link for what Borrowers Need to Know https://edtrust.org/resource/student-loan-payments-are-restarting-heres-what-borrowers-need-to-know/Jim Shenwick, Esq  917 363 3391  jshenwick@gmail.com Please click the link to schedule a telephone call with me. https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!

In the program Who Killed the Company? Tips and Trends in Claims and Defenses, Judge Marvin Isgur and his fellow panelists confronted issues such as in pari delicto, insurance coverage and waiver of fiduciary duties. However, one discussion led by Judge Isgur focused on whether solvency should be determined based on what was known at the time of the valuation or what was known at a later date. The discussion highlighted that valuation can be a moving target based on what is known at a given point in time. Judge Isgur gave an example from his life before he became a lawyer. In 1984, the price of oil took a precipitous drop causing Houston to lose 300,000 residents. The day before oil collapsed, an apartment complex might be valued at $10 million based on comparable sales. However, there were no comparable sales for the next two years. When property started moving again, the same apartment complex would sell for $1.5 million. So what was the complex worth during the intervening years? If viewed based on the latest comparable sales, it would be worth $10 million. However, there were no willing buyers and willing sellers at this or any other price. A cynic might say that the apartment complex was worth $0 since there were no buyers at any price. However, this was clearly wrong because the real estate and the improvements clearly had some value. When real estate started moving again, it had a value of $1.5 million. Did it drop 85% in one day or was there a curve of declining value which only became apparent in retrospect?Judge Isgur gave a second example of an unknown liability. A company sold tainted grape juice which ultimately killed many people. If a solvency analysis were prepared on the day the first toxic juice hit stores, the company might appear solvent because the nature of the liability was unknown. Once the claims were liquidated years later, the extent of the liability and its impact on solvency would become known. However, how would a solvency analysis value the company while the crisis was still ongoing?Perhaps an epidemiologist could extrapolate the total number of expected deaths and injuries from the number of gallons sold and then a litigation expert could estimate the value of each type of injury. However, the true nature of the liability would only be known in retrospect. I think that the point Judge Isgur was making (and this is my interpretation) is that sometimes valuation can only be seen in hindsight and will change as more information is received. In the absence of an efficient market, valuation at different points in time may be little more than an educated guess until sufficient information is received.  He gave another example of a case where he performed a valuation at one point and then after the case was reversed, he made another finding of valuation on remand. Both valuations were based on the same point in time. However, because he had more information at the time of the second valuation, the amounts differed. The first valuation wasn't wrong; it was simply based on incomplete information. As more information was developed, the valuation would become more refined. Thus, the valuation of a specific asset at a specific point in time might vary dramatically based on the information available. While there may only be one "true" valuation, that number might only become apparent some time after the fact.The same theme was picked up in the panel on The Next Generation of Bankruptcy Cases. While there is a general presumption that cases should proceed swiftly, in a case filed during a period of economic uncertainty, delay may be the best course.  The Covid pandemic turned the world on its head. Hertz filed its bankruptcy case on May 22, 2020 during the early days of the pandemic. Had the case gone to a prompt resolution, there probably would not have been enough funds to pay all creditors. Because the case was allowed to move more slowly, the case paid all creditors in full and returned money to equity. What this illustrates is that at the time Hertz filed its bankruptcy, its true value was unknown due to the unprecedented event of a once in a century pandemic. Its value was always there but it couldn't be seen at the time. Because Hertz was not required to be valued at a time when the true value was unknown, it avoided a negative result. On the other hand, if the company had not had the resources to weather the Covid storm, it could have crashed and burned before its true value was realized.It seems like valuation is a bit like Shrodinger's Cat.

The threat of looming foreclosure can be a scary thought for many New Jersey residents. It can be seen as an attack on your home or place of business – two of the things many people work incredibly hard to get and maintain. When faced with the prospect of foreclosure, it can be even more intimidating and stressful if you do not know the process of foreclosure in New Jersey. Foreclosure cannot happen right away. You must miss multiple payments and be unable to work out a restructured payment plan with your lender. Only at that point can foreclosure proceedings begin. The first thing to happen in such proceedings is that the lender files a complaint with the court stating why they are foreclosing on your property. Then, you are given notice that a foreclosure is underway. After that, the lender can go to court and, if you do not fight back, can win by default and foreclose on your property. If you do decide to fight against foreclosure in court, there are other options available to you. If you need help with your foreclosure-related matters, call Young, Marr, Mallis & Associates’ New Jersey foreclosure defense lawyers at (609) 755-3115 for a free analysis of your case. What is Foreclosure in New Jersey? Foreclosure is a process by which a lender, called a mortgagor, takes the mortgaged property after the property owner, called the mortgagee, misses several mortgage payments, and “defaults” under the terms of the mortgage. A default simply is something that is not allowed by the mortgage. Usually, this means that the mortgagee missed a payment or two. However, a default can be anything prevented by the terms of the mortgage. For example, if there is a mortgage on a building housing a coffee shop that, in its terms, says that it cannot be used for residential purposes, the owner cannot put an apartment or two above the shop. Foreclosures happen specifically when you miss payments on a mortgage. Other kinds of defaults may trigger consequences other than foreclosure. For example, these other defaults could include using a building for something that is not allowed under the terms of the lease. Usually, this exists to make it so that a residence cannot also be used as a place of business or vice versa. Important Terms to Know for Foreclosure in New Jersey Foreclosure, and indeed real estate law in general, can be very complicated, even for attorneys. Part of the reason for all the confusion is that there are quite a few archaic, nonstandard terms that are frequently used in real estate and foreclosure proceedings. Although it is primarily the concern of our Trenton, NJ foreclosure defense lawyers to know these terms and what they mean, it is also useful for you to have a general understanding of some terms that will be used in foreclosure legal proceedings so that you can know what is going on to a greater degree. We’ve compiled a list of some important terms to know for the foreclosure process in New Jersey below. Mortgagor and Mortgagee Often, the parties involved in a mortgage are called the “mortgagor” and “mortgagee.” These are just fancy terms that mean “lender” and debtor.” The mortgagor is the borrower of the loan. In this case, that would mean you. A mortgagee is the lender for the loan. In most cases, this will be a bank, but it could be any entity that loaned you money to purchase the property secured by the mortgage. Liquid and Non-Liquid Assets In law and economic terms, the term “liquid” refers to cash. Therefore, a liquid asset is simply money. A non-liquid asset is something of value that is not money. In a foreclosure context, this will include the property in question. If an asset is “liquidated,” it is being sold for cash. In some circumstances, some of your assets may be exempt from liquidation. Check with our lawyers to see if you can have your property at risk for foreclosure be made exempt. Loss Mitigation Loss mitigation refers to steps that are taken by the mortgagor and mortgagee to try and prevent a foreclosure from happening in the first place. Loss mitigation can take many forms, but one of the most common is a restructuring of the payment plan so that the mortgagee can get the payments they are entitled to. Sherriff’s Sale If a foreclosure does happen, a sheriff’s sale is the term for the sale of the property. The sale is carried out by law enforcement personnel, hence the name. If worst comes to worst, you may be able to place a bid on your property at a sheriff’s sale. However, doing this can be complicated, so speak to our lawyers about this possibility. Things that Happen Before Foreclosure in New Jersey Contrary to what some people may think, foreclosure cannot happen immediately after a mortgage payment is missed. There are a number of what could be considered safeguards in place to try and let individuals who are at risk of foreclosure get their affairs in order and, hopefully, prevent a foreclosure from happening at all. This process is known as “pre-foreclosure.” Below, we will go into some of the important things that happen before a foreclosure can take place in New Jersey. Grace Period Generally, when you miss mortgage payments, you are given a “grace period” to pay them before any real consequences can happen. This grace period is usually somewhere between ten and 15 days. Consult your mortgage (or have our lawyers look at it) to determine what the exact grace period is for you. The grace period exists because, ultimately, lenders want to get paid. Having a grace period lets the unexpected happen without immediately destroying what may have been a perfectly normal mortgagor-mortgagee relationship. Default Because of Missed Payments The first real point at which there is a real risk of foreclosure on your property is after you have defaulted under the terms of the mortgage by missing a certain amount of mortgage payments. Once you default under the terms of the loan, the lender is required to try and work with you and see if a new plan can be made so that you can pay them what you owe them. That being said, some lenders will be more cooperative than others. It may be the case that your lender does not want to work things out and will only present terms as lip service to the law rather than as a good-faith effort to work things out. How Many Mortgage Payments Can You Miss Before Foreclosure in New Jersey? Foreclosure proceedings can only begin after you miss a certain number of payments on your mortgage. You can only be foreclosed on after you have not made payments for 120 days. Since payments are generally made every 30 days, this means that your property cannot be foreclosed on until you have missed four mortgage payments. However, that does not mean that there are no consequences or downsides if you have missed less than four payments. The First Missed Mortgage Payment After you miss your first mortgage payment, you have a grace period of about ten to 15 days, depending on the terms of your mortgage, to send payment to your lender. If you are able to get the payment in within that timeframe, you cannot be foreclosed on. However, you may be charged a late fee or other extra surcharge for the late payment. The Second Missed Mortgage Payment After your second missed payment, your lender is required by Federal law to try and contact you about how to fix the situation per 12 C.F.R. § 1024.39. This notice must be in writing. While many lenders will provide multiple notices of missed payments, they are only required by law to do so once. The Third Missed Mortgage Payment After your third missed payment, you are very likely to receive written or phone contact from your lender. This letter will likely be more strongly worded than any prior letters sent. This is called a “breach letter” because it lets you directly know that you are in breach of the terms of your mortgage by not making the payments you are supposed to. The Fourth Missed Mortgage Payment After the fourth missed payment, mortgagees can begin foreclosure proceedings. At this point, they will likely be contacting court officials to start foreclosure proceedings rather than contact you directly. The Start of Foreclosure Proceedings in New Jersey Foreclosure is a long, stressful, and complicated process with many steps. The good news is that means that there are many points at which you can try and work out the situation with your lender or try and challenge the foreclosure altogether. Our New Jersey foreclosure defense lawyers can help you with whatever path you choose during the difficult process of facing foreclosure on your home, business, or other property. Foreclosure Complaint Once the lender decides to foreclose on your property, they will file what is called a foreclosure complaint with the court. This complaint will state the facts of the situation as the lender understands them and sets forth why they believe they have the right to foreclose on your property. Summons and Foreclosure Complaint The next step is that you are “served,” or delivered, a summons or foreclosure complaint. This is a formal notice that you are the subject of court proceedings and that your lender is trying to foreclose on your property. While getting this information in person from one individual’s hand to another is ideal, you could also be told about foreclosure through a public ad in the newspaper or by physical or electronic mail. Response to the Complaint Once you know that you are being foreclosed against, it is very important that you respond to the complaint and do so quickly. If you do not respond, the lender can ask for what is called a “summary judgment” against you. Essentially, the opposing attorney is asking that you lose by default because you did not respond or show up to court, and your property will be foreclosed. Generally, you will have about 35 days to respond to the initial complaint. After that time, a default judgment will be issued, which means that you will lose automatically. It is incredibly important that you retain legal counsel by this point so that you are given your fair shake in the legal system. Depending on how you respond to the complaint, a number of outcomes could happen. As previously stated, if you do not file an answer, the lender will win by default. If you file a counterclaim, the case will proceed further in the court system. If the lender has committed a violation of your loan agreement, which could include not honoring a loan modification, refusing payments, or other unpermitted actions, the foreclosure may be stopped in its tracks. Other Ways to Stop Foreclosure Proceedings in New Jersey Fighting a foreclosure directly in court is not the only way to stop proceedings. Once of the most commonly used ways to prevent foreclosure is to file for bankruptcy. When you file for bankruptcy, the court places what is called an “automatic” stay on any debt collection, which includes any foreclosure proceedings. Depending on what chapter of bankruptcy you file under, the property could still be able to be liquidated, so it is important that you speak with our lawyers so that you choose the best option for your situation. Call Our New Jersey Foreclosure Defense Lawyers If you need help with your foreclosure situation, call our Cherry Hill, NJ foreclosure defense lawyer from Young, Marr, Mallis & Associates at (609) 755-3115.

 Rite Aid files for bankruptcy amid slowing sales, opioid litigationThe story can be found at https://www.cnbc.com/2023/10/16/rite-aid-files-for-bankruptcy-amid-slowing-sales-opioid-litigation.htmlJim Shenwick, Esq 917 363 3391 jshenwick@gmail.com Please click the link to schedule a telephone call with me. https://calendly.com/james-shenwick/15minWe held individuals & businesses with too much debt!

 The National Conference of Bankruptcy Judges came to Austin for its 2023 conference with the slogan Blues, Barbecue and Bankruptcy. Here are some images from the conference.    Sheriff Ronnie King was the Master of Ceremonies for the Conference.   Chief Judge Craig Gargotta welcomed conference goers to Austin.   The Western District delegation    Judge Shad Robinson  Judge Ronnie KingLaw Clerk Bach Norwood                    The Rockestra                       That's a lot of bull                      Ouch

Tax Foreclosure: A Far Too Common Reality How many times have you heard the story about the elderly homeowner who lost their house because someone paid their delinquent taxes for a small sum of money – far less than the value of the home that they had paid off in full many years ago? Tax lien foreclosure frequently happens to elderly people who are having difficulty keeping up with their finances, even though they are totally capable of paying the bills. As people get older the sheer complexity of paperwork sometimes becomes overwhelming – and that’s when the scavengers swoop in, pay the delinquent taxes, and a few years later get a tax deed to the elderly person’s home and threaten to evict them unless they pay an extortionate amount of money. How The Supreme Court Saved a 94-Year Old Woman from Home Equity Theft Geraldine Tyler purchased a small condo in Minnesota back in 1999. Her family decided it was safer for her to move into an assisted living community in 2010. Over five years time, she accrued $2,300 in unpaid taxes and $13,000 in interest and penalties. Hennepin County had seized her property in 2015 and sold it for $40,000, paying the outstanding $15,300 debt and pocketing the rest for themselves. A putative class action brought up by Tyler went all the way to the Supreme Court, who unanimously ruled against this practice, stating that it violated the Takings Clause of the Fifth Amendment to the United States Constitution and was an unconstitutional taking of the homeowner’s property without just compensation. This means that the Minnesota tax officials  are out of luck and the homeowner will get to keep their home. Read the entire brief of the 21-166 Tyler v. Hennepin County case. Bankruptcy Law: Your Front-Line of Defense Against Deed Theft If the tax deed purchaser has accomplished an unconstitutional taking without just compensation, it also has received a fraudulent transfer. In bankruptcy, fraudulent transfers can be avoided and the property can be restored to the homeowner.  In such cases, Chapter 13 is an ideal remedy for the homeowner who finds themselves in debt and at the same time is facing eviction from their home because of failure to pay a minimal real estate tax bill. How many bankruptcy lawyers do you know that are up to date with Supreme Court decisions that might affect your rights? You don’t have to worry about that here at Lakelaw, Your Financial Lifesaver. David P. Leibowitz is admitted to practice before the Supreme Court and has briefed cases that have been decided in the Supreme Court in issues affecting bankruptcy cases. You can depend on Lakelaw to represent you fearlessly and zealously. When your house is on the line, we will do everything it takes within the bounds of the law to protect your interests. Contact us today to schedule a free confidential consultation. The post How Bankruptcy Law Can Protect You from Home Title Theft appeared first on Lakelaw.

Before you can file for bankruptcy in Pennsylvania, there a few things you must do. So, will your pre-bankruptcy checklist include completing debt relief? Completing debt relief is not mandatory before an individual can enter into bankruptcy in Pennsylvania. Debtors do have to complete credit counseling courses, which provide guidance on money management and budgeting, among other financial matters. Debt relief programs are handled by companies whose primary concern it is to lower the debt you owe in exchange for a fee. These programs are not guaranteed to be successful, nor do creditors have to negotiate with debt relief companies. Compared to bankruptcy, debt relief is not necessarily a reliable way to fully address your outstanding debt in Pennsylvania. To have the Pennsylvania bankruptcy lawyers of Young, Marr, Mallis & Associates assess your case for free, call our team today at (215) 701-6519. Do I Need to Complete Debt Relief Before Filing My Bankruptcy Case in Pennsylvania? Debtors do not have to work with debt relief companies before filing Chapter 7 or Chapter 13 in Pennsylvania. That said, debtors do have to complete a credit counseling course in order to be able to declare bankruptcy. Debt relief programs and credit counseling courses are different things. Debt relief companies will negotiate with creditors on behalf of a debtor in an attempt to reorganize debt or lower the amount a debtor owes. This is not the same as enlisting our Philadelphia bankruptcy lawyers to negotiate with your creditors to avoid bankruptcy. Working with debt relief companies is somewhat risky, depending on the size and category of debt an individual has. Completing credit counseling before bankruptcy is mandatory, however. In Pennsylvania, debtors must complete credit counseling within 180 days of filing a bankruptcy petition. If you do not complete credit counseling before filing, your case will likely be dismissed. In rare situations, debtors might be permitted to complete credit counseling while in bankruptcy. Credit counseling courses will provide debtors with advice and assistance regarding how to handle their finances properly. These courses generally cover subjects like budgeting and money management. Taking credit counseling courses is not the same as working with debt relief companies. Credit counseling will help you after you exit bankruptcy, as you will be better equipped to handle your finances once your debt has been addressed. Should I Complete Debt Relief Before Filing for Bankruptcy in Pennsylvania? Although completing debt relief is not mandatory before entering bankruptcy in Pennsylvania, it is an option. But is it a good one? When considering the possible outcomes debt relief can lead to, it is also important to consider the negative ones. Debt relief companies typically charge high fees, which debtors might not be able to pay, causing them to fall further into debt. Furthermore, some creditors might not want to work with debt relief companies, whereas they might be more likely to negotiate with our attorneys. Because debt relief companies simply aim to lower the debt you owe, they might not be concerned with safeguarding your credit score or protecting your assets. Suppose you are interested in debt consolidation to avoid bankruptcy or believe some of your creditors might be open to negotiations. In that case, it is best to work with our lawyers instead of a company that offers debt relief services. Our attorneys can identify errors on a creditor’s behalf, such as predatory lending practices or other inappropriate behaviors, that might ultimately help your case. Furthermore, our attorneys can negotiate a debt consolidation plan that more accurately meets your needs and is financially practical so that you can complete your repayment plan and avoid further financial distress. Comparing Debt Relief and Bankruptcy in Pennsylvania Like credit counseling and debt relief, debt relief and bankruptcy are two separate things. Bankruptcy is a legal process individuals can use to address debt that happens through the courts in Pennsylvania. Debt relief is a service companies provide and is not guaranteed to help you repay your debts. Addressing Debt When comparing debt relief programs and bankruptcy, bankruptcy is generally the surest way for debtors to begin rebuilding their financial stability. When working with debt relief companies, there is no way to for debtors to know if their efforts will be successful. Instead, individuals might incur expensive fees from debt relief companies and still have all their debt to repay. Bankruptcy, on the other hand, can allow you to tackle your debt in full. The way in which your debt will be repaid will depend on the bankruptcy chapter you file in Pennsylvania. Automatic Stay When you file a bankruptcy petition, an automatic stay will take effect. This puts a stop to any debt collection activities from creditors, including upcoming mortgage foreclosures, sheriff’s sales, and wage garnishments. An automatic stay is not afforded to debtors when they engage in debt relief programs in Pennsylvania. Debt Discharge Furthermore, in bankruptcy, some of your debts might be erased. Popular debts, like credit card and medical debt, are dischargeable in bankruptcy, meaning you will have no responsibility to repay them. While debt relief companies might negotiate a lower payment on your behalf, they cannot discharge debts in the same way that bankruptcy can. Protection of Assets Among its other benefits for debtors in Pennsylvania, bankruptcy also allows you to protect your assets from liquidation or repossession. Our attorneys can help you use federal or state exemptions when you file Chapter 7 so that you do not lose your home or car to creditors. If you file Chapter 13, your debt will be consolidated under the same interest rate, and you will make payments toward your debt according to your income and expenses. Call Our Lawyers About Your Pennsylvania Bankruptcy Case Call our Bucks County bankruptcy lawyers at (215) 701-6519 to schedule a free analysis of your case from Young, Marr, Mallis & Associates.

A “wage garnishment” order is a court order that allows creditors to take money directly out of your income to pay off debts you have to them. For many people, a wage garnishment can be a difficult arrangement. Garnished wages can make it tough to manage monthly expenses or participate in activities you enjoy. If you have garnished wages in New Jersey, you may be wondering whether your job or employer will be able to find out that your wages are being cut into to pay off creditors. Employers will always know that your wages are being garnished. This is because the portion of your pay that is used to pay off creditors is taken directly from your paycheck before you ever get it. Therefore, your employer knows that you have a garnishment because they need to know how much to take out of your pay to transfer to your creditors. If you need legal assistance, call our New Jersey bankruptcy lawyers from Young, Marr, Mallis & Associates at (609) 755-3115. Do New Jersey Employers Know About Wage Garnishment? Your employer will always know that your wages are garnished in New Jersey. However, this will not necessarily put your job in jeopardy. Making sure that wage garnishments are complied with can be demanding and frustrating for employers. The natural inclination, then, is to let go of the employee with garnished wages. Because of this, there are Federal laws that prohibit employers from firing people because they have garnished wages. 15 U.S.C. § 1674 prevents employers from laying off employees for “any one” indebtedness. So, it is undisputed that if you have one wage garnishment, you will not be able to be fired. However, if you have multiple garnishments from multiple creditors, the situation may be more complicated and should be examined by our New Jersey wage garnishment lawyers. How Do Wage Garnishments Work in New Jersey? Wage garnishments are when the court orders a portion of your paycheck to be directly paid to creditors to satisfy debts. To get a wage garnishment against you, creditors first have to go to court. What happens is that the creditor files a complaint with the court alleging that you owe them money and have not paid them. In order to have a garnishment put in place, the creditor needs a “money judgment” from the court, which is essentially the judge stating that the creditors are allowed to take your money (in ways that the law allows, of course). A creditor can get a money judgment for a number of reasons. The two main reasons are that you did not show up to court to contest the complaint or lost at trial. Now, if creditors had their way, they would probably try to take as much money as possible out of every paycheck you were supposed to get. However, New Jersey wage garnishment laws prevent creditors from taking above a certain percentage of your income. 15 U.S.C. § 1673 prevents any wage garnishment from exceeding 25% of that week’s disposable earnings. Your “disposable earnings” are what is left after your employer has removed what needs to be paid in taxes and some other fees. While 25% of a week’s earnings is a high amount, there are some other restrictions on what creditors can take out of your pay. Creditors cannot garnish your wages to such an extent that you are not able to pay for basic necessities like food or rent. Additionally, some forms of income, like military payments, cannot be garnished. How to Prevent Wage Garnishment in New Jersey If you are concerned about the effects of garnished wages, there are several ways that you can mitigate the effects of wage garnishment or prevent garnishment entirely. When you meet with our lawyers, we can determine which method is best for your particular situation. File for Bankruptcy One way to very quickly prevent wage garnishment from happening is to file for bankruptcy under the chapter that is most appropriate for your situation. When you file for bankruptcy, something called an “automatic stay” is immediately put in place that prevents creditors from taking money or assets from you. The idea behind automatic stays is to let debtors take a breather and have debts paid off in a way that is fair to both debtor and creditor. Bankruptcy has different chapters that work differently and will benefit people in different situations. For example, Chapter 7 bankruptcy is designed to pay off creditors as quickly as possible. The trade-off is that very few assets can be protected and made off-limits from creditors under Chapter 7. Therefore, Chapter 7 bankruptcy is tailored to people who do not have many assets. Chapter 13 bankruptcy, on the other hand, lets debtors earmark certain things as protected from liquidation. However, Chapter 13 bankruptcy takes significantly longer to resolve itself than Chapter 7. It is important to consider your situation and weigh the benefits and drawbacks of filing for bankruptcy when considering that option. Pay Debts The most obvious, but also realistically the most difficult, way to prevent or stop wage garnishment is to pay the debt. If creditors are not owed anything, they cannot take your income. That being said, the reality is that people facing wage garnishment may not be able to pay a debt right away, so it is not incredibly likely that this is a practical option. It is, however, an option nonetheless. Talk With Our New Jersey Wage Garnishment Lawyers Today Our Ocean County, NJ bankruptcy lawyers are ready to give free case reviews when you call Young, Marr, Mallis & Associates at (609) 755-3115.

The prospect of foreclosure is worrying to home and business owners across the United States. If a home or business owner is worried about a foreclosure on their property, they may be wondering how long they have to try and either remedy the situation or prepare to fight against foreclosure proceedings. Fortunately, there is a built-in time period before foreclosure called “pre-foreclosure,” where property owners can try and fix things or prepare for foreclosure proceedings. In Pennsylvania, “pre-foreclosure” refers to all of the processes that need to take place before a property is officially in foreclosure. Lenders/creditors cannot initiate foreclosure proceedings right away. They need to give you time to try and get things in order before trying to foreclose on your property. If problems have not been resolved by the end of the pre-foreclosure period, then the lender can foreclose on your property. To get a free case review from our Pennsylvania foreclosure lawyers, call Young, Marr, Mallis & Associates at (215) 701-6519. Explaining Pre-Foreclosure in Pennsylvania Pre-foreclosure refers to the time period after you are behind on mortgage payments but before foreclosure has officially started. Pre-foreclosure gives homeowners the opportunity to try and work things out with their lender before they officially foreclose on the debtor’s property. It may be a good idea to contact your lender to try and work out a deal to avoid foreclosure. There are several ways to do this with varying side effects that may or may not be acceptable to you for your situation. Our Philadelphia foreclosure lawyers can help you try and work something out with your lender or, if they do not want to cooperate, help you through the foreclosure process. How Long Does Pre-Foreclosure Last in Pennsylvania? If allowed, creditors with unpaid dues would foreclose on a house immediately. However, federal regulations do not let them. 12 C.F.R. §1024.41(f)(i) prevents creditors from initiating foreclosure unless a mortgage payment is more than 120 days overdue. It is within this timeframe that pre-foreclosure takes place. What Happens During Pre-Foreclosure? There are some steps and procedures that lenders need to go through during pre-foreclosure. Lenders cannot immediately start filing the foreclosure paperwork until some time has passed. Additionally, they must try to work something out with you where you can pay the debt in a reasonable fashion. Finally, you also have options that can reduce the likelihood of foreclosure or stop the process entirely. It is important to weigh the costs and benefits of those options with our lawyers since while they all can effectively stop a foreclosure from happening, some of them may have consequences that can be undesirable if you do not know them beforehand. Contact about Missed Payments Before initiating foreclosure proceedings, creditors must try to contact you and work with you to try and come up with a plan to remedy the situation. A creditor or lender must try and contact you within 36 days of a missed mortgage payment to discuss “mitigation options.” These are steps that you and your lender can take to try and “cure” the missed payments and avoid foreclosure. Some common options that may be discussed during these conversations are a loan modification, a short sale, or a deed in lieu of foreclosure. Modification A loan modification is a written document that permanently changes the original terms of a mortgage or other loan document. Generally, a modification will lower interest and monthly payments but increase the duration of the loan. You will have to provide certain documentation to your lender if you want to get a loan modification, and they may not agree to it. This can be complicated, but our lawyers can help you with this situation. Short Sale A “short sale” is when a property owner sells that property for less than what is left in mortgage debt. The bank/lender accepts the proceeds of the sale as payment for any outstanding debts, and there are no liens on the property. Although a short sale is something you can do to avoid foreclosure, it is a drastic option, and you should carefully consider your situation before committing to a short sale. Deed in Lieu of Foreclosure Another thing that can happen in pre-foreclosure to prevent foreclosure is a “deed in lieu of foreclosure.” This is a transaction where the homeowner voluntarily gives ownership of their mortgaged property to the bank/lender in exchange for wiping out any indebtedness. This is similar to a short sale. However, in a short sale, you need to work through selling your property. In a deed in lieu, that is the bank’s concern since they have the property now. Again, this is a decision with serious consequences to things like credit scores, but it is an option on the table during pre-foreclosure to fix the situation. File for Bankruptcy During the pre-foreclosure period, you may also consider filing for bankruptcy. While filing for bankruptcy may feel like you are giving up, that is hardly the case. Bankruptcy can act as a reset button to start over afterward free of debts or monetary obligations. When you file for bankruptcy, the court puts something in place called an “automatic stay,” which prevents creditors from taking any action whatsoever to collect debts from you. This includes threatening and initiating foreclosure proceedings. During bankruptcy, the court puts together a plan for you to sell assets and pay off debts. When bankruptcy ends, you come out the other side with a “clean slate.” Depending on the chapter of bankruptcy you file under, you may be able to exempt the property being foreclosed on from liquidation. Call Our Pennsylvania Foreclosure Lawyers Today Our Upper Darby foreclosure lawyers from Young, Marr, Mallis & Associates can review your case for free when you call us at (215) 701-6519.

10 Helpful Tips for Getting Business Loans After BankruptcySmallBizTrends features an informative article on securing a business loan post-bankruptcy. From our experience, individuals often become more creditworthy after filing for bankruptcy, because their personal balance sheet is improved (liabilities are discharged). and  one can only file for Chapter 7 Bankruptcy once every 8 years. The article is accessible at https://smallbiztrends.com/2023/09/loans-after-bankruptcy.html. Businesses or individuals overwhelmed with debt should reach out to Jim Shenwick, Esq. You can contact him at 917 363 3391 or jshenwick@gmail.com. To schedule a telephone call, please click the following link: https://calendly.com/james-shenwick/15min. We assist individuals and businesses struggling with excessive debt!