Credit card and Car loan defaults hit 10-year high as inflation squeezes FamiliesThe New York Post is reporting that credit card and car loan defaults have hit a 10 year high, due to inflation and other economic issues. Will personal bankruptcy filings increase in near term? Very likelyThe article can be found at https://nypost.com/2023/09/04/credit-card-and-car-loan-defaults-hit-10-year-high-as-inflation-squeezes-families/?utm_source=gmail&utm_campaign=android_nypJim 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 signal changes in California foreclosure law in 2021 are bearing unexpected fruit: a bankruptcy filing AFTER the foreclosure auction can save the house for the homeowner. Under CC 2924m, instead of the foreclosure sale being final at the drop of the auction hammer, now the sale is not final, and the trustee’s deed not […] The post Stop Foreclosure With Stunning Timeline Change In CA Foreclosure Law appeared first on Bankruptcy Mastery.

 Chiang Rai Times has an interesting article about Chapter 7 Bankruptcy. The article can be found at https://www.chiangraitimes.com/learning/what-you-should-know-about-chapter-7-bankruptcy/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!

 Business Insider has a very informative article about how often a person can file for Bankruptcy.The article can be found at https://www.businessinsider.com/personal-finance/how-often-can-you-file-for-bankruptcyIndividuals with questions about personal bankruptcy should contact Jim Shenwick, EsqJim 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! 

Many people prefer to file for Chapter 13 bankruptcy as it helps them avoid the liquidation of their homes and other assets. Unfortunately, keeping up with Chapter 13 payment plans can be difficult, and converting to Chapter 7 might be a good idea. Depending on your situation, you may convert an existing Chapter 13 bankruptcy case to Chapter 7. Generally, you might be able to do so as long as the court has not discharged any debts. Many people want to convert their bankruptcy cases because they cannot keep up with their payment plans under Chapter 13. These payment plans tend to be rigorous, and keeping up with payments for 3 to 5 years might not be as feasible as you once believed. To convert your case, you and your lawyer must file a Notice of Conversion with the appropriate court and possibly pay a fee. You might be able to protect certain assets after converting to Chapter 7 if they are exempt from liquidation. If you are thinking about changing your bankruptcy case, call our bankruptcy lawyers at (215) 701-6519 and schedule a free review of your situation with the team at Young, Marr, Mallis & Associates. Converting Your Chapter 13 Bankruptcy Case to a Chapter Case After Filing While filing for bankruptcy can be a great solution to financial troubles, it is known for being a bit complicated. Perhaps the most commonly filed chapters for individuals filing for bankruptcy are Chapters 7 and 13. Many initially choose Chapter 13 over Chapter 7 to protect assets like homes and vehicles. However, Chapter 13 bankruptcy cases tend to last for years, and keeping up with payments might become too difficult. In such a situation, a switch might be necessary. Chapter 13 focuses on reorganizing your finances and sticking to a strict payment plan for about 3 to 5 years. Ultimately, your creditors should be paid off, and certain remaining debts might be discharged. Under Chapter 7, the process takes only a few months, and assets might be liquidated to pay your creditors. People often choose Chapter 13 because their assets are not seized and sold off to pay creditors. However, many Chapter 13 petitioners find that keeping up with their payment plans is not feasible. In that case, you should talk to your lawyer about converting to Chapter 7. While converting to Chapter 7 might not be ideal, it can help you get out from under your debts and get a fresh start. Talk to our bankruptcy lawyers sooner rather than later. It is typically easier to convert your case before you fall behind on your Chapter 13 payment plan. Why Convert Your Chapter 13 Bankruptcy Case to Chapter 7? As mentioned before, many people choose to convert because they find keeping up with the payment plan under Chapter 13 is harder than they expected. Alternatively, your financial situation might have changed since you filed. For example, perhaps your Chapter 13 payment plan was feasible because you were steadily employed. If you recently laid off from work, you might be unable to keep up with the payment plan, and converting to Chapter 7 might be wise. Another possibility is that your personal plans have changed. People often file for Chapter 13 bankruptcy to protect assets like their homes and vehicles. However, your plans for the future might have changed. Maybe you plan on moving and no longer need to protect your home. In that case, it might be best to convert to Chapter 7, liquidate your house, pay back creditors, and move on from the ordeal before you relocate. Sometimes, people simply decide that worrying about their payment plan for the next several years, even if they can keep up with it, is not what they want. Maybe you would rather just cut your losses and convert to Chapter 7, even if it means losing important assets. How to Convert Your Chapter 13 Bankruptcy Case to Chapter 7 Converting might be fairly simple, depending on where you are in your Chapter 13 bankruptcy case. Converting your case may be as simple as submitting some paperwork. You and your lawyer must fill out and submit a Notice of Conversion to the courts. If your case can be converted and the court approves, you can change to Chapter 7. Before you fill out any forms, talk to your lawyer about whether you can convert to Chapter 7 from Chapter 13. It might be too late if debts have already been discharged under Chapter 13. Also, the court might not approve if you want to convert to Chapter 7 when you are close to the end of your Chapter 13 case. It is best to switch sooner rather than later. You also might have trouble converting your case if you have fallen behind on your Chapter 13 payment plan. While many people want to convert because they believe keeping up with their plan is too difficult, you should be current on your plan when you convert. Can I Protect My Assets When Converting to Chapter 7 Bankruptcy from Chapter 13? Converting from Chapter 13 to Chapter 7 does not mean your assets will be vulnerable. In many cases, people converting their bankruptcy cases can claim state or federal exemptions that allow them to protect certain assets from being seized and liquidated by bankruptcy trustees. Remember, the federal exemptions are not the same as state exemptions, and, depending on where you live, you might not have a choice as to which one you can claim. Some states do not permit people to claim federal exemptions. These states, sometimes called “opt-out states,” require residents to claim state exemptions. Other states allow bankruptcy petitioners to choose which exemptions they wish to claim. Check with your lawyer first before making any final decisions. Homestead exemptions allow bankruptcy petitions to protect the equity in their home up to a certain limit. If you file for bankruptcy jointly with your spouse, this limit might be higher. Similar exemptions exist for vehicles, retirement accounts, property used for business purposes, and personal items like jewelry or household items. Call Our Bankruptcy Attorneys to Discuss Converting Your Case Call our bankruptcy lawyers at (215) 701-6519 and arrange a free evaluation of your situation with the team at Young, Marr, Mallis & Associates.

Individuals commonly pursue Chapter 7 and Chapter 13 bankruptcy, which are among the various types of bankruptcy available. Despite the type of bankruptcy chosen, it is important to note that not all debt can be eliminated through the bankruptcy process. Bankruptcy does not allow for the discharge of certain types of debts, such as taxes, spousal support, child support, alimony, and government-funded or backed student loans. However, filing for bankruptcy can give you the room to get back to financial security. While not all debts will be erased, several types of debts will be discharged, which could account for a significant amount of the filer’s debt. Call our bankruptcy attorneys at Young, Marr, Mallis & Deane at (609) 755-3115 for a free case review today. Which Debts Cannot Be Discharged By Filing for Bankruptcy? Unfortunately, not all debts can be eliminated through bankruptcy proceedings. The specific debts that fall under this category and the reasons for their exclusion might differ depending on the type of bankruptcy being pursued. Often, these debts are deemed ineligible for discharge due to public policy considerations. However, determining which debts will follow in each case depends on a close evaluation of the facts. Fortunately, our Philadelphia bankruptcy attorneys can help you understand which debts will be discharged through a bankruptcy filing and which will remain. The following are debts that usually follow you after filing for bankruptcy: Tax Debt Certain types of taxes are not able to be eliminated through bankruptcy, but there are some exceptions to this rule. It is possible to discharge tax debt that meets certain qualifications. In Chapter 7 cases, federal or state income taxes might be wiped out if they are associated with a return that was due at least three years before the bankruptcy case. This three-year timeline includes any extensions that might have been granted by the state or federal government for tax payment. Non-income tax debts, such as property taxes and tax liens that are attached to your property cannot be eliminated through a bankruptcy filing. Child and Spousal Support/Alimony In many bankruptcy cases, any money owed for spousal or child support, as well as alimony, cannot be discharged. This means that these legal obligations cannot be eliminated through the bankruptcy process. Therefore, after your bankruptcy case is completed, any remaining balance you owe for these types of obligations will still be required to be paid. Student Loans It is rare for student loans to be discharged, regardless of whether they were obtained from the government, private lenders, or a university. There are only a few exceptions to this rule, such as if the borrower can no longer work due to a disability and can provide evidence of this. Another exception would be if the borrower is facing undue hardship and can prove that they have made every effort to repay the loan. However, qualifying for a discharge based on these exceptions is a challenging process. The borrower must demonstrate that repaying the loan would prevent them from maintaining a basic standard of living. Other debts that are typically not eligible for discharge through bankruptcy include fines or penalties imposed by government agencies, as well as personal injury debts arising from driving under the influence. Debts resulting from fraud, embezzlement, larceny, or breach of fiduciary duty, as well as any debts or creditors that were not included in the bankruptcy petition, are also unlikely to be discharged. Which Debts Can Be Discharged By Filing for Bankruptcy? The primary objective of filing for bankruptcy is to eliminate as much debt as possible and begin anew financially. During this process, various types of debts will be discharged either immediately or at the end of the bankruptcy process. Once the debts are discharged, you will no longer be obliged to pay them. This is a permanent order, and creditors are not allowed to pursue collection. Credit Card Debt In the event that you opt for Chapter 7 bankruptcy, your credit card debt will typically be discharged immediately. On the other hand, Chapter 13 bankruptcy is designed to restructure your debts, which might entail integrating your credit card debt into a repayment plan. Once all the obligations within the plan have been fulfilled, any remaining debt can then be discharged based on your individual financial circumstances. Medical Debt If you are facing overwhelming medical debt, you might be wondering if bankruptcy is an option for you. The good news is that medical debt, which is an unsecured debt, can be discharged under Chapter 7 bankruptcy. This means that the debt is not backed by any collateral, making it easier for you to get rid of it. However, if you choose to file for Chapter 13 bankruptcy, only a portion of your medical debt might be included in your repayment plan, just like with credit card debts. In this case, you will need to complete the repayment portion of your bankruptcy case before any remaining debts, including medical bankruptcy, can be discharged. Keep in mind that bankruptcy should always be considered a last resort, and you should consult with a qualified attorney to determine if it is the right option for you. But if you are struggling with medical debt, know that there are options available to help you regain control of your finances. Personal Loans It is possible to eliminate or discharge unsecured personal loans through the process of filing for bankruptcy. Unsecured loans are loans that are not secured by your personal property. Furthermore, loans received from friends, family, or employers that are considered to be personal loans are also eligible for discharge through bankruptcy. In addition to unsecured personal loans, there are other types of debt that might be discharged through bankruptcy. For instance, condominium fees, cooperative fees, or Homeowner Association fees can be discharged through Chapter 13. Similarly, loans taken out from retirement plans can also be discharged under Chapter 13. Should I File for Bankruptcy If All My Debts Are Not Discharged Declaring bankruptcy can have significant and lasting consequences. Your credit score might plummet by as much as 100, 150, or 200 points, and the bankruptcy will remain on your credit report for ten years in the case of a Chapter 7 filing and seven years for a Chapter 13 filing. Despite this, filing for bankruptcy can still be advantageous in certain circumstances, even though it might not discharge all of your debts. The primary goal of bankruptcy is to provide filers with a fresh start in their financial lives. Depending on which type of bankruptcy you choose, a payment plan might be established to address many of your outstanding debts, or non-exempt assets might be liquidated to pay off what you owe, which can help you regain control of your finances. Our Bankruptcy Attorneys Can Help For a free case review, contact our Pennsylvania bankruptcy lawyers at Young, Marr, Mallis & Deane today at (609) 755-3115.

It is important to know that if you are unable to make your mortgage payments, your lender will need to take action. However, a deed in lieu of foreclosure could potentially prevent the negative consequences of a foreclosure. There are both benefits and drawbacks to pursuing a deed in lieu of foreclosure, and seeking guidance from our knowledgeable lawyers is recommended. While a deed in lieu of foreclosure will be reflected on the homeowner’s credit report, it is a more favorable outcome than foreclosure. Additionally, this option would put a stop to foreclosure proceedings if they have already begun and prevent the homeowner from enduring a prolonged wait before losing their home. For a free case evaluation with our Pennsylvania deed in lieu of foreclosure lawyers, contact Young, Marr, Mallis & Deane today at (215) 701-6519. What Is a Deed in Lieu of Foreclosure in Pennsylvania? If a homeowner in Pennsylvania wants to avoid foreclosure proceedings or a final judgment of foreclosure, there are various methods available. One possible option is a deed in lieu of foreclosure, which can assist the homeowner in escaping a difficult financial situation. However, the homeowner must exercise caution while navigating the process to avoid being liable for any outstanding debts once it is completed. Through a deed in lieu of foreclosure, the homeowner and the mortgage lender come to an agreement where the homeowner surrenders the property’s deed to the lender. In exchange, the lender will cease any foreclosure proceedings and cancel the mortgage loan. After the lender receives the deed, they can sell the property to offset the loan. If you experience a foreclosure, it can have a lasting impact on your ability to buy another home in the future due to its appearance on your credit report. However, our Pennsylvania deed in lieu of foreclosure attorneys can help you navigate the complex process to ensure you make the best choice. A deed in lieu of foreclosure can release you from your mortgage obligations and prevent a foreclosure from negatively affecting your credit report. To complete a deed in lieu of foreclosure, you will need to surrender the deed to the lender. This will allow the lender to remove their lien on the property and recoup some of their losses. Additionally, this action will release you from any remaining mortgage debt. Homeowners who find themselves with an underwater mortgage, where they owe more than the home is worth, often seek out this type of agreement. What Is the Difference Between a Deed in Lieu and a Foreclosure in Pennsylvania? It is important to note that a deed in lieu and a foreclosure are not interchangeable terms. When you enter into a deed in lieu agreement, it means that you and your lender have come to the realization that you can no longer afford to make your mortgage payments. The lender agrees not to initiate foreclosure proceedings as long as you willingly transfer ownership of the property to them. In return, the lender releases you from your mortgage obligations and might even provide you with financial assistance to maintain the property until you vacate. While a deed in lieu will be reflected on your credit report, it will not have as severe an impact as a foreclosure. If your lender goes through the foreclosure process, they must follow legal procedures to regain control of the property. However, this process can have negative consequences for you, such as a damaged credit score that lasts for up to 7 years. Buying another home during this time might be challenging unless you can pay for it in cash. Additionally, your lender might or might not offer you financial compensation to vacate the property if it goes into foreclosure. Keep in mind that foreclosure proceedings are both lengthy and costly for both you and the lender. It is crucial to consider all options before agreeing to give up ownership of your home. In many instances, restructuring your mortgage might be the best solution for both parties instead of moving forward with a foreclosure. Reasons Why a Lender Will Accept a Deed in Lieu of Foreclosure in Pennsylvania There are several advantages that can motivate a lender to agree to a deed in lieu of foreclosure. If you are considering this option in Pennsylvania, it is helpful to know some of the benefits that your lender can receive by accepting your deed in lieu of foreclosure. Property Conditions Lenders often prefer to gain possession of well-maintained properties since they are more likely to fetch a higher price and sell faster. In such cases, a lender might require the borrower to maintain the property in good condition through a deed in lieu agreement. Control Over the Property When a borrower fails to make timely mortgage payments, the lender has the option to seek legal action to take possession of the property through foreclosure. This process involves hiring attorneys to represent the lender in court and prove that the borrower has not been meeting their financial obligations. Even after obtaining court approval, the lender must still go through the legal process of evicting the borrower from the property. However, an alternative option for lenders is the deed in lieu. This option allows the borrower to voluntarily transfer property ownership to the lender, saving both time and money for all parties involved. Reasons Why a Lender Will Deny a Deed in Lieu of Foreclosure in Pennsylvania As a borrower, it is crucial to remember that your lender is not obligated to accept a deed in lieu agreement. There are several reasons why a lender might choose to reject a deed in lieu request, including the following: Tax Judgments or Liens Against the Property Clearing a secondary lien or judgment can make relinquishing your property deed more difficult. However, some lenders might be willing to collaborate with you to remove the lien if they notice any other claims on the property. Depreciated Home Value Your home’s value might decrease, which could result in owing more on your loan than your home is worth. If this happens, a lender might offer a deed in lieu agreement. However, the lender might require you to pay the difference between the appraised value and what you owe in order to agree to the deed in lieu agreement. It is important to note that Rocket Mortgage does not participate in this practice. Poor Property Conditions It is important to note that if the condition of your home is subpar, it is possible that your lender might decline any proposed deed in lieu agreement. It is recommended that you ensure the condition of your home meets the necessary requirements before proposing such an agreement to your lender. Our Pennsylvania Deed in Lieu of Foreclosure Lawyers Can Help Our Philadelphia foreclosure attorneys at Young, Marr, Mallis & Deane are here to provide you with a free review of your case by calling us today at (215) 701-6519.

One of the scariest parts about filing for bankruptcy is not knowing what will happen to valuable assets like your house. While many states have legal exemptions that protect a person’s home during bankruptcy, Pennsylvania does not. A homestead exception allows people to shield a certain amount of equity in their home from the bankruptcy process. For many, this is the difference between keeping their house or losing it to bankruptcy. While Pennsylvania does not offer such an exemption, there is a federal homestead exemption you might claim. Pennsylvania is one of a few states that allows people to choose between state and federal exemptions, meaning you can claim the federal homestead exemption since Pennsylvania does not offer one at the state level. Homestead exemptions might be greater if you are filing jointly with your spouse. If you do not claim any homestead exemption, your home might be vulnerable to liquidation by the bankruptcy trustee for your case. For help protecting your home, call our Pennsylvania bankruptcy lawyers at (215) 701-6519 and set up a free assessment of your finances and claims with us at Young, Marr, Mallis & Associates. What is Pennsylvania’s Homestead Exemption for Bankruptcy? Bankruptcy exemptions vary across states. Different states might have different exemptions you can take advantage of, and the monetary limits of these exemptions may also vary. While many states offer homestead exemptions to help protect your house, Pennsylvania is not one of them. While there is no homestead exemption in Pennsylvania, you might still be able to protect your house when you file for bankruptcy. Numerous states might have state homestead exemptions, but so does the federal government. In many states, you are required to claim only state exemptions, even if federal ones might be more generous. Pennsylvania does not follow this rule. Instead, it allows residents to choose either state or federal bankruptcy exemptions. Since there is a federal homestead exemption, you can claim it if you file for bankruptcy in Pennsylvania. Under 11 U.S.C. § 522(d)(1), you may claim up to $27,900 in your home’s equity under the federal homestead exemption. This limit might be higher if you file for bankruptcy jointly with your spouse. You must also be living in the home to claim this exemption. A landlord could not claim the federal homestead exemption to protect a rental property. How Homestead Exemptions Work in Pennsylvania Bankruptcy Cases You can claim the federal homestead exemption when you initially file for bankruptcy. The process can be as simple as naming the exemption and the property you wish to protect in your paperwork when you and your attorney submit your bankruptcy paperwork to the court. If you mistakenly leave this information, your attorney can help you contact the court to correct the information. If caught early, the mistake might be easily fixed. While Pennsylvania allows bankruptcy filers to choose their exemptions, you cannot pick exemptions from both state and federal levels. For example, you may not claim federal homestead exemptions while also claiming state exemptions related to retirement accounts. You must pick entirely federal or state exemptions. This means that if you wish to claim the federal homestead exemption, you cannot claim any state exemptions, no matter how helpful they might be. Before submitting anything to the court, you should call our Philadelphia bankruptcy lawyers. We can review your finances and help you figure out which exemptions are best for your case. You might benefit from federal or state exemptions depending on your assets and your home’s equity. Deciding Between Pennsylvania and Federal Bankruptcy Exemptions As mentioned before, you cannot cherry-pick from both state and federal bankruptcy exemptions. You must select all federal or all state exemptions. As such, you have a big decision to make, and you should talk to your lawyer before making any final choices. Which category is the best choice depends on the assets you want to protect. Considering that Pennsylvania has neither a homestead exemption nor a vehicle exemption, many bankruptcy petitioners elect federal exemptions, allowing for both home and vehicle protections. However, those who do not own homes or vehicles might choose differently. Perhaps you are a renter who uses public transportation. In that case, you would not need to claim the federal homestead or vehicle exemptions. At that point, reviewing the available state exemptions would be wise, as they might help in ways federal exemptions do not. On the other hand, you and your attorney might decide that federal exemptions other than the homestead exemption are in your better interest. What Happens If I Do Not Claim Homestead Exemptions in a Pennsylvania Bankruptcy Case? Bankruptcy exemptions are available, but you must actively claim them. They do not kick in automatically. Normally, claiming exemptions involves listing them in your petition when you file with the courts. If you leave out the exemptions by mistake, the bankruptcy trustee may seize the unprotected assets and sell them to pay back your creditors. If you did not claim the homestead exemption because of a mistake on forms – specifically, Schedule C forms – the bankruptcy trustee might allow you to correct the mistake before moving forward. However, the trustee might assume you did not intend to claim any exemptions and process your case. At that point, it might be hard to fix the error. Corrections might be made informally. If the trustee notices you did not claim the homestead exemption, and you have a valuable home, they might double check with you or your lawyer before finalizing anything. If you believe you might have filled out the incorrect information, call your lawyer immediately so they can get in touch with the bankruptcy trustee. Call Our Pennsylvania Bankruptcy Lawyers for Help Now To determine what exemptions are best for you, call our Bensalem, PA bankruptcy lawyers at (215) 701-6519 and schedule a free assessment of your case with us at Young, Marr, Mallis & Associates.

I was the third attorney on this lien avoidance matter. Instead of it being “third time’s the charm”, it came close to being “three strikes and you’re out.” All because of FRBP 7041. One This was the set up: original counsel filed a number of lien avoidance actions, including the one against a landlord with […] The post Rule 41 Threatens Strike Out appeared first on Bankruptcy Mastery.

Wet funding and dry funding states handle mortgage loans differently. So, what is Pennsylvania, a wet or dry funding state? Wet funding is a faster lending process, allowing borrowers to receive mortgage funds on the day mortgage documents are signed in Pennsylvania. While it is faster than dry funding, wet funding is also riskier. Predatory lending practices and bad faith acts are more common with wet loans. If you have fallen behind on mortgage payments after getting a wet loan, you can defend yourself against foreclosure with proof of predatory lending. Suppose you do not have a defense against foreclosure. In that case, you can file for bankruptcy, allowing you to repay your lender according to a more manageable payment schedule in Pennsylvania. Call our Pennsylvania bankruptcy lawyers at (215) 701-6519 to have Young, Marr, Mallis & Associates review your case for free today. Is Pennsylvania a Wet Funding State? Pennsylvania is a wet funding state, meaning prospective homeowners will receive funds immediately after a loan is approved, allowing them to purchase a home right away. All other processes and documentation regarding a property are completed after the funds are dispersed. Wet funding states are more common than dry funding states. With a wet loan, borrowers will receive funds more quickly. With dry loans, the process is slower. Although that can seem less preferable initially, it does provide additional protections for borrowers. That is why some states prohibit wet funding altogether. If you get a wet loan in Pennsylvania, your mortgage will be closed faster. This means you will be tied to a mortgage more immediately, which can become risky in certain situations. Because Pennsylvania is a wet funding state, borrowers do not have the increased protections that come with getting loans in dry funding states. What Are the Risks with a Wet Funding State Like Pennsylvania? Although wet loans can speed up the process of getting a mortgage and purchasing a property, there are risks involved. It is important to understand the lack of protections afforded with wet loans so that you do not become the victim of fraud or predatory lending in Pennsylvania. In dry funding states, the loan is not officially closed when mortgage documents are signed, and funds are not dispersed at that time. Although receiving a dry loan is a longer process, it allows borrowers to do their due diligence and ensure they are not being taken advantage of. The same is not true of wet funding states. Because the loan will be closed the same day you sign mortgage documents, it is crucial to review the terms of your loan before that date. Our Philadelphia bankruptcy lawyers can assess the proposed mortgage agreement to ensure that you are not agreeing to an arrangement that causes you financial distress. With wet loans, it is easier for banks and lenders to prey on borrowers. Because the process is much faster, borrowers might be more likely to agree to high-interest rates and mortgage payments that are outside of their financial ability just so they can purchase a property as soon as possible. This can lead to homeowners defaulting on their mortgages in the future, causing them to lose their homes. When this happens, the bank can foreclose on your property. If predatory lending practices were involved in you receiving your wet loan in Pennsylvania, you may be able to prevent mortgage foreclosure. Identifying Predatory Lending Practices with Wet Loans in Pennsylvania With wet loans, there is an increased risk of predatory lending practices. To better protect yourself from such activity, it is important that you are able to identify predatory lending practices so that you do not fall victim to them in Pennsylvania. Federal and state laws protect borrowers from predatory lending practices and govern the rules banks must follow when lending funds to borrowers. Those laws might be broken when lenders use bad faith in giving loans. Tell-tale signs of bad lending practices include balloon payments, excessive fees, high-interest rates, expensive monthly payments, and pressure from a lender to agree to a mortgage. If you feel your lender is urging you to sign a mortgage agreement too quickly and that unnecessary fees are involved in the process, consult our attorneys. Sometimes, predatory lending is unclear, and homeowners might be left with a mortgage they cannot pay based on their incomes. This is more common in wet funding states like Pennsylvania because the process is much quicker. Fortunately, our lawyers can use proof of predatory lending as a defense against mortgage foreclosure, allowing you to keep your home even though you have fallen behind on payments. Dealing with a Bad Wet Loan in Pennsylvania If you got a wet loan to purchase your home in Pennsylvania and cannot repay it according to your current agreement with your bank, you can protect your home from foreclosure with bankruptcy. The first step will be negotiating with your lender. Our attorneys may be able to restructure your current mortgage agreement to make monthly payments more manageable for you. You can defend yourself in court if your lender is not open to negotiations and plans to foreclose upon your home because you have entered into mortgage default. However, you may have to file for bankruptcy if you cannot prove predatory lending practices. With bankruptcy, homeowners can combat bad wet loans by consolidating all of their debts under the same low-interest rate. This can reduce the interest on your missed mortgage payments, allowing you to catch up without paying too much additional interest. This is achievable through Chapter 13 bankruptcy. With Chapter 7 bankruptcy, dischargeable debts will be erased. This can allow you to focus on repaying a wet loan. If you have other assets you can liquidate, doing so can settle your outstanding mortgage payments in Pennsylvania. Call Our Lawyers to Learn About Bankruptcy in Pennsylvania The Allentown, PA bankruptcy lawyers at Young, Marr, Mallis & Associates can assess your case for free when you call (215) 701-6519.