Lone Tree, CO Bankruptcy Law Firms & Lawyers

Since you have an unreaffirmed debt, you're not personally liable but the bank still has a lien on the house. They can make any charges that are permitted in the mortgage. So if they're allowed to charge PMI by the terms of the mortgage, it's not prohibited. It's illegal to reaffirm after your bankruptcy case has closed. It's illegal for change the terms of the mortgage, even if you agree, after your bankruptcy case is closed. The bank is also prohibited from taking any action to collect from you, some banks refuse to even communicate with you to avoid any possible allegation that it was a veiled collection action. Generally, I advise clients in your position to refinance with a different lender (a refi might be interpreted as an illegal reaffirmation so the same lender can't do it).

Chapter 13 is often, but not always an option for someone who does not qualify under the means test for a Chapter 7 bankruptcy. There are, however, exceptions. An individual debtor seeking relief from creditors under the bankruptcy code may find herself unable to satisfy the requirements of the means test where her income is above the median income (after all allowable deductions) in her home state. In those cases, if her debts are primarily consumer debts (as opposed to debts incurred as a result of business dealings), she will not have the option of a discharge under Chapter 7. Most similarly situated individuals who wish to go forward with a Bankruptcy filing will choose to do so under Chapter 13. However, Chapter 13 has strict debt limitations for both unsecured debt (typically credit cards, medical bills and other debts with no pledged collateral) and secured debt (mortgage loans, car loans and other debts with collateral pledged). If the debts are over the limit for either unsecured (including priority debts) or secured debt, the debtor will not be able to choose Chapter 13 but will be forced consider either Chapter 7 or 11. Given our scenario, Chapter 11 will be the only viable option. Even if the debtor qualifies for Chapter 13, the option might not be right for everyone, due to an individual debtor's specific circumstances. For instance, a debtor who is forced out of Chapter 7 due to the means test will find that her minimum plan payment will be the lessor of 100% of her debts or the disposable monthly income for a prescribed five year plan of repayment. While this option works for a large number of debtors, in many cases an alternative to bankruptcy might be a better option. It is extremely important that anyone considering a Chapter 13, particularly because of means test qualification issues carefully consider all options with the advice and counsel of a qualified Bankruptcy lawyer before committing to any bankruptcy filing.

It is very common in Chapter 13 for the attorney fee to be paid from the first year or so of payments. The end result is a complete discharge of debts. If you are saying that her total debt was less than $5,400, I agree she should not have filed any form of bankruptcy, but should have arranged to pay her bills directly. However, I can't believe that anyone would be lured into filing bankruptcy from just a TV commercial. The person would have had to have not been willing to look at reality or the entire bankruptcy petition, which included the total amount of debt being paid. I am not aware of a service called file storage fee and you may want to find out what that fee is about.