Bankruptcy Mortgage


Bankruptcy Mortgage

Articles: (Updated Frquently)

The bankruptcy code acknowledges the validity of the homestead exemption.

By: John E. Roush

Many times the subject of bankruptcy seems baffling in its complexity. Actually the basic principals of bankruptcy are fairly simple even though the federal statuses on bankruptcy are extensive. The reason that the statutes are so complex is because in as effort at social engineering, the lawmakers want to cover every possible contingency. The very complexity of the Bankruptcy Code gives the lawyers ample opportunity to try to obtain interpretation of the law which best serves their clients interest. This results in extensive litigation and occasionally in interpretations of the Code which were not what legislature intended. This on turn results in additional legislation, which results in additional litigation and on and on. Nevertheless, the underlying principals are not as complex as the Code makes them seem. Here we will discuss the personal nature of bankruptcy.

The concept of bankruptcy is an old one in the English common law. If a person could not pay his debts, his creditors hauled him into court, took all of his assets, and used those assets to satisfy their debts. If the assets were insufficient to satisfy the debts, the debtor was taken from the bankruptcy court to debtors' prison. Since this is a rather extreme remedy, Article 1 Section 8 of the U.S. Constitution gives the Congress the right to establish "?.uniform Laws on the subject of Bankruptcies throughout the United States."

As the popularity of debtors' prison declined, the concept of giving the debtor a fresh start became one of the primary purposes of the bankruptcy process. It is important to remember that a bankruptcy is a personal action which at time of discharge gives the petitioner (formerly the debtor) a fresh start. The property owned by the petitioner does not get the fresh start, the individual does.

The fact that bankruptcy is a personal action may shed some light on the effect of a homestead exemption in a bankruptcy proceeding. The bankruptcy code acknowledges the validity of homestead exemption. A homestead exemption is a personal exemption which, in an effort to preserve a person's home, protects a certain amount of an individual's equity in the homestead property. State law determines the extent and effect of a homestead exemption. Thus, if state law says that a person can declare a homestead up to $45,000 and if there is less than $45,000 equity in the property, that equity in the property is protected by the homestead exemption. This principal operates without regard to the Federal Bankruptcy Code.

About the Author

By John E. Roush, Broker-Owner Atrium Real Estate Investments. John is a full-time real estate agent specializing in real estate investment and real estate investment education. To contact John send all correspondence to Johnr@investorloft.com © 2005 www.InvestorLoft.com

Keywords: bankruptcy principals of bankruptcy, bankruptcy, homestead, homestead exemption, bankruptcy seems baffling, exemption, subject of bankruptcy, bankruptcy code, real estate

Bankruptcy News: (Updated Frquently)

A financial primer for Gen Y
Gen Y seems like a savvy and entrepreneurial generation that can capitalize on what it already knows to get ahead. Here's how to get started.

Self-help guide for consumers
Homeowners, savers and investors shouldn't feel bad if they are confused by the trend of banks collapsing. It's obvious the experts are confused, too.

Marriage and money
How you handle money at the beginning of your marriage can have an enormous impact on the rest of your lives together. Or your lives not together.

Tips for retirement home buyers
Real estate prices have taken a tumble in the most favored vacation and retirement home markets, making it tempting for buyers scouting for getaways.

Keep watch on your credit file
There are easy, genuinely free ways to stay on top of your credit files and use them to save money. Here's what you need to know to do that.

Helpful Links:

Getting a mortgage after bankruptcy
Mortgage newsgroup message forum- Mortgage Talk from Interest.com. The place to ask and learn about home loans and more. Mortgage knowledge is one click away.

Bankruptcy & Mortgage Financing
Bankruptcy & Mortgage Financing. Calculate payments. Review amortization table. Consider prepayment options ... Bankruptcy & Mortgage Financing. Mortgage Calculator & Amortization Table ... It is possible to avoid bankruptcy, regardless of the severity of a person's financial situation ...

Mortgage Options for Borrowers Currently or Recently in Bankruptcy
... Bankruptcy & Mortgage Options. It is possible to avoid bankruptcy, regardless of the severity of a person's ... After a bankruptcy discharge, the mortgage account, as well as many auto ...

Home Equity Loan, Refinancing, New Home Purchase - LowerMyBills.com
Get a home equity loan or refinance with a lender you can trust! Use our easy mortgage calculator, compare low home equity rates, and get the loan that's right for you.

Optimization Page - Bankruptcy Chapter 13 Mortgage
Mortgage Solutions offers a number of mortgage programs for Bankruptcy Buyouts l 24 hour loan line 1-800-331-4715 ... Optimization Page - Bankruptcy Chapter 13 Mortgage. We can refinance your house while your going through a Chapter 13 Bankruptcy. ...

Bankruptcy Exemptions and the Market for Mortgage Loans*
... 1. Bankruptcy Exemptions and the Market for Mortgage Loans* ... We implicitly assume that foreclosure is equally costly in or out of bankruptcy. Mortgage ...

Finding the Right After-Bankruptcy Mortgage - Daily Mortgage
Current averages interest rates from home mortgage loans such as fixed, jumbo, ARM, FHA and more. Interest.com, the financial rates resource since late 1994. ... that people who have just gone through bankruptcy could get a mortgage "if they had enough equity and a large ...

Bankruptcy Exemptions and the Market for Mortgage Loans
... Center. Bankruptcy Exemptions and. the Market for Mortgage Loans ... Abs tract: The recent explosion in personal bankruptcy filings has motivated research into ...

Additional Links >>

Click here to add your link to our directory >>

online-bankruptcy-lawyer.com