Dieppa Law Blog

Understanding exemptions in bankruptcy

Eduardo E. Dieppa III — Thu, 10 May 2012 00:42:14 +0000

Under Florida law, when an individual files for bankruptcy, he or she is entitled to certain “exemptions”, basically a limit of amounts and types of assets the individual can keep or protect from creditors when they file. The most commonly known is Florida’s unlimited homestead protection which entitles the individual to keep their home regardless of the amount of equity in the home. Florida also provides for a $4,000 wildcard exemption for individuals who have no home or are abandoning their interest in their home because it’s underwater or they cannot afford the mortgage. The law also gives individuals $1,000 for personal property, unlimited protection for retirement plans and pensions, and $1,000 for a single automobile. Where there are two individuals filing jointly (husband and wife), the amounts are doubled. Whether the filing individual will be asked to pay to “buy back” his or her assets will ultimately depends on these exemptions and what they own at the time they file.

Foreclosure settlement brings possibility of principal reductions

Eduardo E. Dieppa III — Sun, 06 May 2012 13:11:49 +0000

Five major banks and the U.S. Government reached an agreement worth as much as $26 billion. The banks agreed to streamline foreclosures, provide principal reductions, and stop abusive practices by the lenders.The following banks are participating: Ally Financial Inc., Bank of America Corp., Citigroup Inc., J.P. Morgan Chase & Co and Wells Fargo & Co.

Biggest problem in Ch. 7? Buying back your assets from the Trustee

Eduardo E. Dieppa III — Sun, 26 Feb 2012 15:08:09 +0000

The most frequent issue I experience in closing a Ch. 7 bankruptcy case with discharge is the valuation of the client’s automobile. The trustee may object to valuations provided by the client. The trustee will insist on using “clean retail” value, which is several thousand dollars higher than the price a seller would receive from a third party buyer. As a result, a client may be asked to buy back the vehicle from the bankruptcy estate at an amount that shocks the client, given today’s economic environment and local employment conditions. Dismissing the case in that setting is difficult as the trustee may object to the voluntary dismissal of the case and judges prefer that the discharge be issued, even if assets must be turned over to the trustee to settle case.

Bankruptcy law requries full disclosure

Eduardo E. Dieppa III — Thu, 23 Feb 2012 13:43:41 +0000

Bankruptcy law requires full disclosure of recent transactions to family members or other “insiders.” If you made a gift or sold something to a family member within past two years, you must disclose it. The trustee may move to set aside or void that gift/sale or hire an expert to determine if the sale was at fair value. Some clients decide that they do not want to provide this information and request dismissal of the case. Unfortunately, in a Ch. 7 bankruptcy, dismissal is a matter that must be brought before the judge and the trustee may object to dismissal. More often than not, the bankruptcy judges are denying motions to dismiss these Ch.7 cases. If you are considering filing for bankruptcy and have made such a gift or completed a sale to a family member, keep in mind this two year rule.

Mandatory mediation canceled by Florida Supreme Court

Eduardo E. Dieppa III — Tue, 20 Dec 2011 13:49:20 +0000

Horrible news for homeowners arrived yesterday when the Florida Supreme Court terminated mandatory mediatons. This is another nail in the coffin in homeowners’ efforts to save their home after the real estate market crash. Mediations are one of the few chances a homeowner has to sit down with the bank and get a real timely response to their modification requests.

Here is the link from the Court’s website:

http://www.floridasupremecourt.org/pub_info/documents/foreclosure_orders/12-19-2011_Order_Managed_Mediation.pdf

Modifications failing to be solution to foreclosure mess

Eduardo E. Dieppa III — Mon, 19 Dec 2011 20:31:15 +0000

CNBC reported that modification of defaulted loans were actually decreasing while new foreclosures are on the rise. As a foreclosure defense practitioner, I can speak from personal experience on this issue. The reality is this: banks do not want to modify loans. This has been forced on them by the government, but it is not supported internally. Modifications are no easier to complete today than they were two years ago. Short sales on the other hand are getting done phenomally faster. The proof is in the pudding.

http://www.cnbc.com/id/45587864/

HAFA short sales offer timely relocation assistance

Eduardo E. Dieppa III — Tue, 13 Dec 2011 16:35:47 +0000

Home Affordable Foreclosure Alternative is a government sponsored program that provides for no deficiency judgments, no cash contributions required from the seller(s) at closing, no request for a promissory note from the seller, and some relocation assistance. Only sellers short selling a primary residence qualify for this program. The first mortgage cannot be a government loan and the loan must have originated prior to January 1, 2009. Some banks are now offering assistance at closing of a short
sale. This amount may range from $3,000 to $20,000. However, the sale must qualify under the bank’s program for relocation assistance. Usually, the bank requires that the property to be a primary residence. Contact us if you have questions regarding HAFA. We have closed several transactions where the seller has avoided foreclosure and received a substantial relocation payment at closing from the foreclosing lender.

4th DCA of Florida Reverses Judgment for Bad Affidavit

Eduardo E. Dieppa III — Wed, 21 Sep 2011 14:33:39 +0000

On September 7, 2011, Florida’s Fourth District Court of Appeal reversed a summary judgment against the defendants, Gary and Anita Glarum, due to a robo-signed affidavit. Under deposition, the bank official could not swear to having personal knowledge of the facts attested to in the affidavit. The Court ruled that the affidavit was inadmissible.

The case number is 4D10-1372.

New Proposal for Ending The Crisis

Eduardo E. Dieppa III — Mon, 12 Sep 2011 13:27:57 +0000

Bloomberg reported that Fannie Mae and Freddie Mac are considering proposal from the Obama administration that would permit borrowers to refinance. If put in place, it would permit borrowers to take advantage of the extremely low interest rates currently offered. The lack of equity in homes has been an obstacle to refinancing. For details go through this link:

http://www.bloomberg.com/news/print/2011-09-09/fannie-mae-and-freddie-mac-regulator-considering-obama-s-refinancing-plan.html

Must Read on BOA Settlement Talks

Eduardo E. Dieppa III — Wed, 24 Aug 2011 02:13:33 +0000

If you wonder why heads won’t roll as a result of the mortgage mess, read this article from Yahoo news and Forbes:

http://news.yahoo.com/bank-americas-no-good-very-bad-enablers-170931303.html