June 2015 Archives

The Fair Debt Collection Practices Act and filing a lawsuit

For people in Minnesota who are confronted with overwhelming debt, trying to catch up while simultaneously dodging calls from debt collectors can be difficult. There is often no respite from aggressive debt collection practices. Some of these attempts at collection cross the line from following the rules to breaking them by violating the Fair Debt Collection Practices Act. There are a few circumstances in which it is possible to move forward with a lawsuit due to questionable practices by debt collectors.

Bankruptcy and foreclosure

Cash-strapped homeowners in Minnesota may have deep concerns about the possibility of foreclosure. This is particularly true in situations where unemployment is a factor and making mortgage payments becomes increasingly difficult. In such instances, they may wonder about whether any options exist for saving their home in the face of financial challenges.

Minnesota homeowners less likely to default, report says

A new report suggests that homeowners in Minnesota and elsewhere are less likely to lose their homes to foreclosure than at any time since September 2010. Completed foreclosure rates have dropped over 65 percent from September 2010 to March 2015 and nearly 16 percent from March 2014 to March 2015. Additionally, the delinquency rate on mortgaged homes has reached its lowest level since May 2008. However, completed foreclosures increased 7 percent from February to March 2015.

Filing for bankruptcy after retirement

Retired people in Minnesota may want to consider filing for bankruptcy as a way to get rid of debt and protect their retirement assets. Qualifying for Chapter 7 bankruptcy is easy for some retired people, as this type of filing is based on the last six months of the filer's income and not what they have in savings. Social Security income is considered protected income and does not count in the calculation.

Second liens may be secured debt in Minnesota bankruptcy cases

On June 1, the Supreme Court ruled that junior mortgages could not be stripped during a Chapter 7 bankruptcy if the owner was underwater on the property. The ruling further clarified that this was the case so long as the loan was secured by the home and the claim was allowed under bankruptcy law. It is expected that this ruling will help mortgage lenders who are junior lien holders.

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