Mortgage Loan Modification–5 Questions and Answers

I get a lot of questions from folks concerning mortgage loan modifications.   Note that a loan modification is not a refinancing, and homeowners do not have the legal right to a modification.   In other words, your mortgage company isn’t required to offer you a loan modification.  And if you’re lucky enough to get a modification. you still have … Read More

Substitute for Return from the IRS–What is it?

An average of 900,000 Americans each year fail to file their federal tax returns.  So, what exactly does the IRS do in response?   Basically, the IRS has established the Substitute for Return Program to establish (“assess”) tax amounts owed by the non-filer, and to also calculate non-filing penalties and interest. A Substitute for Return (SFR) is a tax return … Read More

Student Loan Default–3 Reasons to Get Out Of It

How do you know you’re in federal student loan default?   It’s been 270 days since you last made a payment.  You can determine your status and see if you’re in default by going to the National Student Loan Database. So what’s the big deal about being in default? Automatic Wage Garnishment (AWG) First, federal student loan lenders can always … Read More

Student Loan Reform Voted Down

Senator Elizabeth Warren’s Student Loan Reform bill was just voted down today by the Senate.  This would have permitted student loan borrowers to refinance their loans at a lower interest rate.   This was largely voted down in partisan voting.   Republican Senators voted overwhelmingly no. So, how do you get yourself heard?   Here is a list of the … Read More

What Happens if You Get Sued by a Creditor?

Being Served with a Lawsuit by the Sheriff Here in Allegheny County, Pennsylvania (Pittsburgh), anywhere between 100 and 150 credit card lawsuits are filed each week. So, what usually happens and what’s your best response? Well, a sheriff’s deputy will be required to come to your house to deliver the actual lawsuit paperwork to you personally. This can be unnerving … Read More

How to Prepare to Meet with a Bankruptcy Attorney

Income Information is Essential! Many bankruptcy attorneys offer a free consultation for those who are looking into bankruptcy as an option. So, how best to prepare for that meeting? The most important issue is to determine your total household income, particularly over the past 6 months. This is due to the “means test” requirement of the Bankruptcy Code, which spells … Read More

Does My Spouse Need to File Bankruptcy With Me?

Does My Spouse Need to File Bankruptcy With Me? This is a frequent question, so here are the pros and cons. Please remember that my answer is written only for those people living in Pennsylvania. The short answer is no, your spouse does not necessarily need to file. If your spouse doesn’t want to file, then they won’t be required … Read More