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3rd October 2008

Cram Downs for Mortgages in Chapter 13

October 2, 2008

In the Vice Presidential debate tonight between Sarah Palin and Joe Biden, the topic of bankruptcy was brought up in regard to the housing market. Joe Biden mentioned that regulations are being discussed in order to provide relief to debtors filing a Chapter 13 bankruptcy. The relief would occur in the form of several methods, the major being the creditor’s claim amount being reduced to the current appraised value. In other words, if a debtor owes $100,000 to their mortgage company, but the appraised value is only $80,000; the pay back amount in the Chapter 13 Plan would be crammed down to $80,000.

Most people hearing this would be elated to know this Bill was being considered, but believe me folks; attorneys are already doing this and the mortgage companies are accepting it. There is no reason to spend time and money changing the bankruptcy law when this relief is already being implemented. Besides, if you think about it; why would a mortgage company try to repossess a home if they would only get the appraised value anyway? It would be worthless and the creditors know it. Therefore, if a home is appraised less than what is owed on it, the debtor only pays back the appraised value. Plain, simple and easy to understand. I don’t think we need additional intervention from the government on this one folks.

Besides, this cram down opens up additional benefits for the debtor also. When the loan value is reduced, the payments are also reduced as well as the interest rate. I recently worked on a Chapter 13 petition where the debtor had four properties that were mortgaged through Washington Mutual. As you know, Washington Mutual went out of business and was purchased by J.P. Morgan last week. Not only did the attorney I was working with lower the amount owed to the appraised value on each property, he also stripped out the arrearages, lowered the monthly payments and reduced the interest rate more than 50%. Of course the debtor was very happy and I also was happy that I worked on the good side of the bankruptcy law that benefits the average person.

Additionally, foreclosure mediation is another way to help borrowers. I talked with James Kline of Advanced Mediation in Michigan tonight. He said that just in the state of Michigan there is an average of 3,200 foreclosures being filed every DAY! The staff and James work daily with lenders to negotiate loans as a last step to filing bankruptcy. He told me that if a debtor is several months behind he can normally help them if they have only two months of mortgage payments to pay the lender. This is fantastic for the borrowers because by the time a Complaint for Foreclosure is filed, the borrowers are 7, 8, 9 or even more months behind in their mortgage payments. To be able to stay in their home paying only two months of arrearages is a lifesaver for borrowers and it is another way to help them without involving government regulations and changes in the law.

I personally have no opinion in the Presidential race. My focus is on the fact that God will put the right person in power to usher in the Antichrist; so I could care less who God chooses to put in the White House. I think God knows what He is doing and I do not question His decision. But I am concerned with the world of bankruptcy and changes in the law that effect you and me working as virtual bankruptcy assistants. My radar goes up every time someone mentions the word; and when I know something is factual, I report it to you. Have a great weekend!

Ref:

James Kline, Phone: 877-631-8408, Email: advancedmediation@sbcglobal.net

Bankruptcy Cram Down Article
http://www.inman.com/news/2008/02/1/bankruptcy-cram-downs-rolled-foreclosure-relief-bill

The Foreclosure Prevention Act of 2008
http://www.sourcewatch.org/index.php?title=Federal_housing_and_mortgage_legislation_(U.S.)

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2nd October 2008

Free Spanish Client Intake Forms

Download your set now

I just released the Spanish version of the Bankruptcy Client Intake Forms. To download your free copy,visit:
http://www.713training.com/intake_forms/client_intake_forms_spanish.pdf

I hope these help you provide services to attorneys you work for with Spanish-speaking clients. You may want to make a copy downloadable from your website.

If you want to personalize these Client Intake Forms and you have the purchased version of Adobe Acrobat, you can edit the Header and Footer.

Victoria Ring
713Training.Com

posted in Bankruptcy Office Tips | Comments Off

1st October 2008

The Current Financial Crisis and How it Affects Our Jobs as Virtual Bankruptcy Assistants

Every time you watch the news and see the country in a worse financial crisis, you can rest assured that the bankruptcy filings will increase. When the bankruptcy filings increase, more and more people like you who are skilled in the preparation of Chapter 7 and Chapter 13 bankruptcy petitions will increase.

Current Conversations Among Attorneys

I subscribe to a number of bankruptcy related newsletters that places me in contact with bankruptcy attorneys. I also talk with bankruptcy attorneys in person and on the telephone daily. The topic of all conversations right now is the state of the United States economy and how it will affect bankruptcy. I know attorneys who are in the process of totally converting their entire practice to bankruptcy because they are expecting a tidal wave of filings. Other attorneys who have never practiced bankruptcy before are opening new law firms and many of them are seeking to hire virtual assistants to keep their overhead costs low. The attorneys who are solely practicing bankruptcy are hiring more staff, looking for virtual assistants to use as their backup systems and gearing up for a large workload in the near future.

Therefore, if attorneys are upgrading and expanding their practices, there is no doubt that your job as a virtual bankruptcy assistant is more than secure. The only problem is that many of you do not have a lot of experience. You have purchased my training materials and learned the basics, but in order to improve on that knowledge you need bankruptcy petitions to work with and learn from. It’s kind of like a Catch 22 situation and I certainly understand your problem. However, it is up to each and every one of you to stand up, take the bull by the horns and put your knowledge to the test by working directly for bankruptcy attorneys.

I know it is hard for you to believe; but once you get out there and start working, you will discover that because you purchased training materials from 713Training.Com, you have more knowledge than most of the law firm staff. Why? Here are only two reasons: (1) Most debtor bankruptcy personnel are burned out after 2 years and bankruptcy law firms have high turnover rates when it comes to keeping employees; and (2) Most attorneys know the law but they do not know how to properly prepare a well-detailed bankruptcy petition, let alone a Chapter 13 Plan. This means that the law firm staff receives little or no training in preparing the actual petition.

If you have not purchased any training materials at this time, visit:
http://www.713training.com/shop/cart.php

If you have purchased training materials, be sure and get the new book: How to Market Your Virtual Bankruptcy Assistant Business at:
http://www.713training.com/shop/cart.php?m=product_detail&p=88
and get started working for attorneys as soon as possible.

Take Advantage of Training and Support

When I talk with many of you, you tell me that you are afraid to start marketing to attorneys because you do not believe you have enough experience to do a petition. First of all, read the new marketing book (see link above) because this will convince you to move forward. Secondly, I have developed a wide range of services that provide you with ongoing training and support so you cannot fail. One excellent service is to provide you with a Bankruptcy Petition Review. This means that 713Training.Com will review your bankruptcy petition, correct any errors and teach you how to improve your skills. Then, when you return the first draft to your attorney, he or she will be pleased with your detail and accuracy. In other words, we make you look good. After a few times, you should pick up most of the skills and only need to contact us in the future when you encounter unique situations that need addressing. Until you get out there and start working as a virtual bankruptcy assistant you may not be able to understand how beneficial and crucial this service is for you. But keep in mind that 713Training.Com is here to help you. You are never alone. Now, get out there and start working for attorneys!

Bankruptcy Petition Review
http://www.713training.com/shop/cart.php?m=product_detail&p=86

Today History Was Made

On October 1, 2008, at 9:00pm Eastern Standard Time, the United States Senate passed the Financial Markets Bill with a vote of 74 (yes) and 25 (no). Senators McCain, Clinton, Obama and Biden all voted yes.

As I watched history unfold on C-Span tonight I learned a great deal about the new Financial Markets Bill that was designed to stabilize the economy. However, before the votes were taken, Senator Bernie Sanders of Vermont spoke. He held up a large amount of paper showing the signatures of 48,000 people who opposed the new Financial Markets Bill. He said that the financial crisis was made by greedy lenders and credit card companies who fraudulently trapped the average American into more debt and created the situation the United States is currently in. Mr. Sanders did not believe that the average American taxpayer should pay for the $700 billion dollar debt because they could not afford to pay more taxes. Instead, Mr. Sanders proposed that the $700 billion dollar problem should be paid by the big companies who were responsible for the crisis. He showed an example of how Stanley O’Neal, a former CEO of Merrill Lynch was paid a $161 million dollar severance package. As Mr. Sanders pointed out; he did not know one single American taxpayer who received this type of severance package when they retired.

You can go on Senator Sander’s website and read more of his comments (see below). Personally, I agree with him as do almost 99.9% of the American public. But the problem is, the average America has no choice. If the government raises our taxes, we can’t do anything about it. The government takes their money before we get our paychecks; and for those of us who own a business, the government dictates how our income is taxed and we do not have a choice either. Therefore, we suffer again and have no choice in the matter.

Although the passing of the new Financial Markets Bill will temporarily solve the economic problem and temporarily stabilize the market; it is only a band-aid for the problem. If anyone reading this article is dependent upon credit to buy and sell, you are in for some bad days ahead. Senator Mitch McConnell of Kentucky (another speaker at the Senate tonight) said: “Credit is the life blood of our economy and right now our life blood is frozen.” This is a very frightening statement. Less than 30 years ago, the average American was not living on credit. The majority of people paid for goods and services when they purchased them. In the 1960s the average American was only in debt for their home or car. Today, I am involved in bankruptcy cases where people are using their credit cards just to buy food and gasoline. Without credit cards many people would starve or be unable to get to work.

I strongly urge you to take the time to research the links below and read this information for yourself. Once you begin to understand the huge impact of the current financial crisis, you will be convinced that your job as a virtual bankruptcy assistant is in high demand and will continue to escalate in the coming days, weeks and months. It is up to you to take responsibility in training and educating yourself so that you can help American citizens through the financial burden that is now upon them and will continue for many years to come. In doing so, you will be spared many of these burdens the average American will encounter because people like you and me will continue to have an income.

I hope you seriously consider the information in this message. The decision you make today may be one of the most important decisions you will make in your lifetime; all because the United States economic problems will now be paid for by the people who cannot afford it. I am sure Senator Bernie Sanders was correct in his statements and I urge you to read the article on his website (see below.)

References:

Financial Markets Bill, H.R. 1424
http://www.c-span.org/pdf/hr1424_100108.pdf

C-Span
http://www.c-span.org/

Senator Bernie Sanders
http://www.sanders.senate.gov/

Senator Mitch McConnell
http://mcconnell.senate.gov/

Author: Victoria Ring, Certified Paralegal
http://www.713training.com
http://www.navba.org
http://www.vbacertification.com
http://www.713bankruptcy.com

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