by Dan Dodds on May 18, 2012
Tax day has come and gone, now the refunds are being sent out to anxious taxpayers. Many will use their tax refund for a fun vacation or to make a big purchase, but many others will use the money to pay for their bankruptcy filing.
According to a new study by the National Bureau of Economic Research (NBER), more than 200,000 struggling households will fund their bankruptcy filing by using their tax refunds this year. The NBER research confirms that during the first part of the year, when many individuals receive their tax refund, there is usually an increase in personal bankruptcy filings.
The cost of filing a bankruptcy case increased dramatically when the bankruptcy laws were changed in 2005. The law was changed in order to prevent bankruptcy abuse. The theory was that too many individuals were taking advantage of the system to get out of paying bills they could actually afford to pay. One of the results is that it takes more time for lawyers to handle bankruptcy cases now, so legal fees have increased.
Many argue that the law change, rather than preventing bankruptcy abuse, made it more difficult for those who really need bankruptcy protection to afford it. Receiving a cash infusion, such as a tax refund, is often the only way consumers can file their case.
If you have received a tax refund and you would like to use it to seek bankruptcy protection, contact an experienced bankruptcy attorney like Dan Dodds to represent you!
If you would like a down-to-earth approach and a lawyer who will listen carefully to all your questions and concern, call The Dodds Law Firm, PLC at 623-209-8923. Dan Dodds serves clients primarily in the areas of Chapter 7 and Chapter 13 bankruptcies, real estate issues, violations of the Fair Debt Collection Practices Act, and issues of Unfair or Deceptive Business Practices. Mr. Dodds and his staff know how to listen carefully, and how to explain the law and procedures involved in a legal matter, as well as your rights and options, so that you can make informed choices. If you live in the area of Surprise, Arizona, call The Dodds Law Firm, PLC.
by Dan Dodds on May 17, 2012
Homeowners across our nation have come close to losing their homes due to the mishandling of foreclosure actions by mortgage lenders. As a result, the Independent Foreclosure Review program, overseen by federal bank regulators, was created. The foreclosure review procedure was a stipulation of consent orders that 14 loan servicers agreed to in a deal with the federal banking regulators in April of 2011.
The program was designed to grant cash payouts to homeowners who prove that their loan was mismanaged during the foreclosure process. The Independent Foreclosure Review program is designed to give borrowers a chance to have their loan file reviewed by an impartial third party if their mortgage was involved in any stage of foreclosure from 2009 to 2010 and they believe that they suffered financial harm as a result of mortgage servicer errors or misconduct. If a homeowner can demonstrate that he suffered financial injury and should receive compensation (or some other remedy) due to the mistakes made during the foreclosure of their home, the homeowner may receive a significant payment.
Unfortunately, the majority of eligible borrowers have not applied for relief from the program. The Office of the Comptroller of the Currency, one of the regulators overseeing the program, reports that a mere 3% of qualifying borrowers have requested a loan audit. Some view the low application rate as an indication that the government’s response to the foreclosure crisis has been inadequate.
If you believe that you qualify for the Independent Foreclosure Review program, but you need further assistance, contact an attorney like Dan Dodds to assist you.
If you live in the area of Surprise, Arizona, contact The Dodds Law Firm, PLC, at 623-209-8923. The Dodds Law Firm, PLC, serves clients primarily in the areas of Fair Debt Collection Practices Act violations, Chapter 7 and 13 bankruptcies, and issues of Unfair or Deceptive Business Practices. Mr. Dodds and his staff know how to listen carefully, and how to explain the law and procedures involved in a legal matter, as well as your rights and options, so that you can make informed choices.
Tax day has come and gone, now the refunds are being sent out to anxious taxpayers. Many will use their tax refund for a fun vacation or to make a big purchase, but many others will use the money to pay for their bankruptcy filing.
