LIEB BLOG

Legal Analysts

Friday, December 24, 2010

Merry Christmas says Santa Paterson - Governor increases Bankruptcy Homestead Exemption

Long Islanders filing bankruptcy can now protect $150,000 for individuals and $300,000 for couples in home equity if they file for bankruptcy. This is in contrast to the $50,000 and $100,000 previously available. This is a huge change and a huge chance for a fresh start for many homeowners with equity. If you haven't considered bankruptcy because your house has a lot of equity, but you are otherwise strapped with bundles of credit card debt, this one is for you. Thank you Santa Paterson.

To read the law, click here.

Also, for all you contractors out there, the new law also increases the exemption from bankruptcy for tools of the trade from $600 to $3,000. So, now you can keep working after a bankruptcy with your tools by your side.

Wednesday, December 22, 2010

Hey California - borrowers need lawyers too

In an almost crazy move, California has enacted a new law where lawyers who work on loan modifications cannot receive any money until the work is complete.

Now, don't get me wrong, I have many clients who were previously swindled by a loan modification company who inaccurately made promises of grandeur in their success in getting a modification. Yet, lets look at it another way. Why would an attorney want to trust that their client will eventually pay them when they are in default on their current obligations to make payments before they have even met the lawyer.

To read a NY Times article on the topic, click here.

My opinion is that instead of preventing borrowers from receiving legal help, our society may want to make lawyers more readily available with public funding and public oversight of ethics. Now, that would solve the problem of lawyers making themselves into liars while also providing access to reputable attorneys who can actually help clients save their homes.

Tuesday, December 21, 2010

Having a problem negotiating a modification with your bank?

Often the people on the front lines for the banks inaccurately address your situation under the MHA guidelines. Click here to escalate your case to get answers and results.