 Nick Rayes
and his associates are available for all chapters of bankruptcy.
Only individuals can file a chapter 13 reorganization, but a corporation, LLC, or partnership can file for chapter 7 liquidation or chapter 11 reorganization. Individual or husband and wife wage earners and individuals doing business in their own name may reorganize in chapter 13
On January 6, 2009, the new congress began work on a stimulus package to be ready for President Obama to sign on January 21, 2009.
It is believed that the 2005 bankruptcy reform act, which was very unfair to middle class America, may be repealed, or if not, it is sure to be modified drastically.
One additional amendment, if enacted, will be of great benefit to homeowners and the real estate industry as a whole. The amendment will provide for modification of real estate mortgages on a persons residence.
For example, if a homeowner owes $300,000 on his house and the value is $150,000, in a chapter 13 reorganization, an individual may petetion the court to reduce his mortgage to the value of the home with a 40 year term at market rate interest.
If this amendment is enacted, thousands of foreclosurers can be averted, individuals will be able to save their house, the real estate industry will be more stablized, neighborhoods will be protected, and prices should stablize or at least bottom out.
Nick Rayes has been filing bankruptcies since 1970 and is available for consultation upon appointment.
Please contact Nick by phone at 480-424-7000 or by email at rayes1@cox.net for any questions that you may have concerning bankruptcy or for an appointment.
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On January 6, 2009 Senator Richard Durbin, IL, introduced a bill in the
United States Senate to allow bankruptcy judges to modify first position
security interests on a debtor's principal residence, S.61. Rep. John
Conyers, MI, introduced an identical bill in the House the same day.
This amendment to the Bankruptcy Code has been strongly opposed by the
banking and mortgage industry ever since it was initally proposed a
number of years ago.
This week Citigroup, to the surprise and gratitude of many on Capitol
Hill, announced it was supporting the new legislation prompting Sen.
Durbin to say, "I want to congratulate Citi for being open-minded about
this and playing a major leadership role". Today, 1/15/09 Jamie Dimon,
CEO, JP Morgan Chase, came out strongly against the amendment stating the
standard industry reasons for the opposition, which reasons have never
been proven correct. In November 2008, Chase received $25 Billion in
TARP funds. Shame on Chase and Jamie Dimon for their lack of social
responsibility. They gladly accept a bailout along with 100 other
financial institutions but deny the same to deserving individuals.
It is estimated that there could be several millon more foreclosures
between now and 2012 and at least 600,000 could be averted with the new
bankruptcy amendment during that time. Many people who bought homes the
last four years owe more on their houses than they are worth. There is
no incentive for them to stay in the house when there is negative equity,
re-setting mortgage payments and no hope on the horizon for a turnaround.
Enacting the new law will provide needed relief to families to save their
home, aid in stablizing neighborhoods and real estate prices, and, help
soften the recessionary crash being suffered by many.
The modification of the security interest can only be accomplished in
Chapter 13, must be for the debtor's primary residence and the 3 to 5
year plan must be completed and the discharge entered. After the
financial industries bought and paid for 2005 Bankruptcy Reform Act went
into effect, completion of a Chapter 13 plan became much harder. It is a
real hardship to be in and complete a Chapter 13, contrary to the
financial industries propaganda that bankruptcy filers are abusing the
system and getting a free ride.
The issue is social responsibility and the need for the financial
industry to start practicing it. Jamie Dimon and Chase could help lead
the way by showing more gratitude and fairness to the beaten up consumer,
which in turn would help right the economy. Unwillingness to help the
consumer with a bailout, even after the banks big TARP windfall, is
socially irresponsible and greedy.Nick Rayes, Esq.
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