Matt Berkus - Part 2

The Biggest Mistake You Don’t Know You Are Making During Financial Crisis!

December 16th, 2011 by Matt Berkus

I can’t tell you how many times I have heard this story from a prospective client:

I ask: “Do you have any retirement accounts or 401(k)?”

Response: “No, we liquidated those to stay afloat.”

I feel sad when I hear that because I know that if he had the courage to visit the office 6 months ago or a year ago when his finances started going south, he would be out of debt and still have that money. Too many debtors are sacrificing their future and treating their 401(k) or IRA as a piggy bank instead of a retirement fund. (more…)

Am I Too Young To File Bankruptcy?

December 15th, 2011 by Matt Berkus

Although not common, we are seeing more and more twenty-something’s in need of bankruptcy relief. A concern that is sometimes voiced is whether the client is too young to file bankruptcy. I don’t mean in a legal sense—anyone of legal-adult age may file bankruptcy (in fact, even someone under the legal-adult age can file bankruptcy with a representative) —but in a practical sense the client often feels like they should stick it out and see if they can solve their financial challenges without bankruptcy. They think by filing bankruptcy so young, that they are somehow doubly cursed or won’t be able to have the American Dream of home ownership. Such thinking is folly! (more…)

NOT a Good Idea to Transfer Student Loans to Credit Cards

November 19th, 2011 by Matt Berkus

As the looming crisis of student loan debt nears, some enterprising debtors are no doubt getting desperate. Student loan debtors are being hounded by collection agencies night and day, tax refunds are being intercepted, and wage garnishments are inevitable. So some enterprising debtors are getting the idea to transfer their student loan debt to credit cards with the idea of either getting a better deal on interest or later discharging that debt in bankruptcy. Don’t do it! (more…)

Matt Berkus, Cited As Authority On E-how!

November 18th, 2011 by Matt Berkus

Okay, this post is obviously self serving, but it is interesting to see how my content has filtered through the World Wide Web. Here is a list of articles at e-how.com where my articles have been cited as an authority. (more…)

Mortgage After Bankruptcy, A Success Story!

November 5th, 2011 by Matt Berkus

As much as you try to tell people that there is life and credit after bankruptcy, there is always doubt, but here is short success story I found. (more…)

Settling a Second Mortgage, What Should I Watch Out For?

November 4th, 2011 by Matt Berkus

Question:

Hello Matt, I discharged both my first and second mortgages under chapter 7 bankruptcy in 2009 and I did not reaffirm those debts. I wanted to keep the house, so I kept paying on both loans. House is worth about $150,000; the first mortgage is $151,000 and the second is $70,000. I stopped paying on the second 6 months ago and they sent me an offer to settle the $70,000 for $7,000. The letter states upon receipt of the funds, the lender will release its lien and cancel the agreement. This is such a great offer but I wanted to ask a few questions. When they receive the money, do they send me back the original loan papers? How do I ensure they remove their lien? Will I have do follow up with them to make sure they don’t double cross me? Any help is appreciated. Thanks. (more…)

Bankruptcy Student Loan Debt Proposal That Will Help, Make Student Loans Priority Claims!

November 2nd, 2011 by Matt Berkus

An entire generation is emerging from college, graduate school, and professional school already behind the financial eight ball with loads of student loan debt and questionable job prospects. Student loan debt is set to exceed one trillion dollars in the U.S.; that is 200 billion more than the outstanding revolving credit card debt in this country. The sad fact is that it is actually easier to resolve back taxes than it is to resolve back student loan debt. Delinquent borrowers have essentially no options and are allowed to suffer at the whim of collection agencies with the power to garnish tax refunds and sometimes wages and bank accounts without judicial notice or over sight. What I call for is consistency in our law about how we treat student loan debt.

Proposal: Amend bankruptcy code section 507 to make student loans a priority debt. Do not require priority student loan debt to be paid in full within a chapter 13 plan; require all payments to priority student loan debt in chapter 13 bankruptcy be applied to principal only, the student loan shall stop accruing interest, fees, penalties, charges, and expenses during the chapter 13 bankruptcy, and that upon chapter 13 discharge, the student loan borrower shall be deemed current and the loan rehabilitated if a balance is still owed. (more…)

Foreclosure Crisis, Why it is So Difficult to Talk to the Right Person for Help?

October 30th, 2011 by Matt Berkus

2010 saw 2.9 Million foreclosures (source Realty Trac); to put that number in perspective, imagine displacing the entire population of Arkansas, Kansas, or Mississippi! That displacement statistic simply assumes 1 person per household. The average U.S. household size is 2.6; so in reality, just in 2010, upwards of 7,540,000 people became refugees of the housing crisis. Now imagine taking EVERYONE from West Virginia, Nebraska, Idaho, Hawaii, Maine and New Hampshire and move them some place else, the U.S. mortgage system caused that population displacement. In contrast, Hurricane Katrina displaced about 1 million people. The U.S. foreclosure crisis is worse than any natural disaster or war. How did we get here? (more…)

The Biggest Mistake You Don’t Know You Are Making During Financial Crisis!

Am I Too Young To File Bankruptcy?

NOT a Good Idea to Transfer Student Loans to Credit Cards

Matt Berkus, Cited As Authority On E-how!

Mortgage After Bankruptcy, A Success Story!

Settling a Second Mortgage, What Should I Watch Out For?

Bankruptcy Student Loan Debt Proposal That Will Help, Make Student Loans Priority Claims!

Foreclosure Crisis, Why it is So Difficult to Talk to the Right Person for Help?

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