These  banks is general  have concentrated on creating an internal blame trail that focuses on lower level employees and the vast volume of foreclosures after the market collapse and weakened economy back in 2008. Federal investigators have concluded that bank management was indeed cognizant of problems and did little or nothing to correct them, excepting a recent general settlement with the major banks which did little or nothing for the general public.

The shortcuts were often directed by these very same managers. The practices of these banks have been documented by the Department of Housing and Urban Development (HUD). This extensive report recently created headlines and it prompted a settlement between the banks and the Federal Government. David Montoya, Inspector General of HUD, discussed recently at length the concerns of blatant misconduct and greed that were shown by these high level bank officials.

The investigation assessed both the internal bank processes and the general chain of command. Figures, facts, and improper notarization were found have moved through the process; the only checking being done was on both spelling errors and punctuation.

In even more startling revelation, document departments were understaffed. Within Bank of America, the foreclosure process was never managed with complete control. And at Wells Fargo, review periods that were typically supposed to be five to seven days, were shortened to just 48 hours in many cases.

In conclusion, the five banks in the study, all involved in foreclosures from 2008 to 2010, were found to have possibly violated state laws that govern the foreclosure process.

For homeowners across the Metro Detroit area and within Michigan where high levels of foreclosure took place, it might not come as a surprise that any of this has indeed taken place.

This post is brought to you as a client service by the legal team of Gudeman & Associates, P.C.

It is informational in nature and is not intended as legal advice.

For legal advice please visit our website at: http://www.gudemanlaw.com/

Contact us at 248 546 2800

We are located at:

26862 Woodward Ave.

Royal Oak, MI 48067

You can send us an e-mail inquiry: ejgudeman@gudemanlaw.com

Gudeman & Associates, P.C.

This is a scam that has hit high speed in the Detroit area.  Representatives from an alleged “official” government agency are on the line and they state they are calling from, “The Bureau of Crime Identification” or “The Federal State Bureau of Michigan.”  It is a  fraud!  These con artists, driving this new scam called “phantom debt collection,” can only be stopped through your awareness.   The callers can even put in a fake caller I.D. that looks legitimate.  Beware!

Remember the acronym S.C.A.M.

• S: (Stress) There is intensity in the message.
• C: (Call for Cash) The telephone call references a debt from a short-term payday loan.
• A: (Amount) There is a set amount owed; anywhere from $100 up to $2000.
• M: (Mean) The caller is hostile, threatening and aggressive.

If you get a call like this do the following:

• Ask the caller for his full name, business, street address (NOT Post Office Box) and phone number.
• Ask the caller to MAIL you a statement with the amount owed and the name and address of the creditor.
• The caller might threaten you with imprisonment or state that he or she is from the law enforcement.
• Never give bank, social security, or any personal information out over the phone.
• Never wire money or give credit card information to the caller.

Immediately go to www.ftc.gov to file a complaint.

Remember that once you send anyone money for any reason, it will be gone because the likelihood of your recovering it is nil

This post is brought to you as a client service by the legal team of Gudeman & Associates, P.C.

It is informational in nature and is not intended as legal advice.

For legal advice please visit our website at: http://www.gudemanlaw.com/

Contact us at 248 546 2800

We are located at:

26862 Woodward Ave.

Royal Oak, MI 48067

You can send us an e-mail inquiry:

ejgudeman@gudemanlaw.com

Gudeman & Associates, P.C.

Many ownership problems now possibly include:

• Continually falling behind on mortgage payments.

• Knowing your home is worth less than what you owe on first mortgage or both a first and second.

• Having higher payments and interest each month than you can afford in this economy.

• Facing possible foreclosure in the future.

We know, as a responsible person, you have done some homework and have been trying to do the right thing. We warn you that you must  not make the following mistake. Let’s say that you have you have been in discussions with your financial institution to work out a loan modification of your first mortgage.  If your lender gives you an adjustment that reduces your principal balance and the house now shows some modest equity, this new amount can become a big problem for you financially. This action gives your second mortgage a new life. Once that happens, the Bankruptcy Code will not allow you to avoid that second mortgage as you start over and gain the possible benefit of a Chapter 13 case.

Fresh starts are critical for individuals with both primary and secondary loans. In considering your alternatives, competent lawyers here at Gudeman & Associates, P.C. can give you guidance. For example, a Chapter 13 Bankruptcy filing can remove second mortgage responsibilities if the balance due on your first mortgage, including payments in arrears, is greater than the home’s value. In this area of the country, this is critical to know. Chapter 13 can reclassify those wholly unsecured second mortgage loans or HELOC’s (in a process called lien stripping) into the same category as credit cards and can discharge them at the end of your payment plan.

Do not get yourself into a “trick bag”. We can help; call us today.

This post is brought to you as a client service by the legal team of Gudeman & Associates, P.C.

It is informational in nature and is not intended as legal advice.

For legal advice please visit our website at: http://www.gudemanlaw.com/

Contact us at 248 546 2800

Photo credit: elizafrye.com

It is indeed tax time and all of us are looking for deductions that will help lower both our State of Michigan and our IRS taxes. If you look hard enough, you can find critical deductions hidden in a variety of places.

• Deductible Mortgage Interest: If your Chapter 13 plan involves your mortgage or home loan, then it is essential that you look at your trustee’s annual report to see if there is any deductible interest. In a good number of circumstances, the lender’s proof of claim filing in the bankruptcy case contains loan interest which was accrued but was never paid before the case filing.

• Doing Your Homework: In most 30 year mortgage structures, a large amount of each monthly home payment can be 100% interest. If you itemize all of your deductions, the mortgage interest can be deducted in many cases.

• Get Help: Mortgage lenders usually do not provide tax statements for mortgage interest paid through a Chapter 13 trustee. Tax experts can help you assess what can be deducted. Most loan services do not have that as part of their overall accounting process.

• Finding the Correct Deductibles: All Chapter 13 trustees have online records for all the debtors they are administrating; your case information and how to access it is provided in the 341 meeting. Find the section on the trustee’s site that shows (disbursements) payments. Locate your lender’s (or servicer’s) claim. It should show what has been disbursed. Isolate what has been paid in 2011. If you cannot sort for the information in a given period of time, look at the complete disbursement ledger where you can flag and total the collective payments.

• Keeping your Records: The IRS relies ONLY on what is sent in to them and counts on its accuracy. It is recommended that you get a full copy of your financial institution’s proof of claim. Print and scan (backup) the trustee’s disbursement records and maintain them with a copy of your individual plan. These are considered supporting tax documents to prove your tax deductions. Keep in mind that lenders simply do not seem to acknowledge Chapter 13 payments as interest, so creating your own portfolio is critical.

• Everything Counts: The payments made by your trustee are payments that reflect you as the taxpayer. This applies to any deductible taxes and business expenses that the trustee has disbursed. Every tax deduction counts!

This post is brought to you as a client service by the legal team of Gudeman & Associates, P.C.
It is informational in nature and is not intended as legal advice.
For legal advice please visit our website at: http://www.gudemanlaw.com/
Contact us at 248 546 2800
We are located at:
26862 Woodward Ave.
Royal Oak, MI 48067
You can send us an e-mail inquiry:
ejgudeman@gudemanlaw.com
Gudeman & Associates, P.C.

- Stop Foreclosure, Save Your Home.

- Eliminate, either in whole or in part, your second mortgage.

- Stop repossession of cars and/or other collateral.

- Usually you can retain all personal property.

- Stop Federal, State or Local Income Tax Collection,

- Discharge certain Federal, State or Local Income Taxes.

- Provide a payment plan for otherwise non-dischargeable student loans. (Co-Debtors are protected.)

- Stop Creditor Harassment.

- Eliminate, either in whole or in part, all unsecured debt.

- Provide a payment plan for child support and alimony (avoid possible incarceration for failure to pay).

- Stop lawsuits; prevent collection of judgments by garnishment or execution (taking of property to satisfy judgment.

- Cram Down non-primary real estate debt to the fair market value of the property.  (The difference between what you owe and the fmv becomes unsecured debt and paid in accordance with other bankruptcy rules.)

- Save your business from the consequences of our economy and avoid its loss by filing Chapter 11.

We know that every case is unique.  We can analyze your situation and make recommendations.

THERE IS A WAY OUT!!  DON’T RELY ON MYTHS AND RUMORS, LEARN THE TRUTH ABOUT BANKRUPTCY TODAY, HAVE A BETTER FUTURE TOMORROW!  GET THE FRESH START YOU NEED, STARTING TODAY! CALL US TO ARRANGE FOR A NO OBLIGATION CONSULTATION.

We wish you well. Remember we are just a call away. Contact us now at 248.546.2800

When facing foreclosure, Gudeman & Associates will be there for you. Arrange for your free no obligation consultation with one of our attorneys today!

For further information: http://www.gudemanlaw.com/bankruptcy/chapter-13/

Our website is: http://www.gudemanlaw.com/

Contact at 248 546 2800

We are located at:

26862 Woodward Ave.

Royal Oak, MI 48067

You can send us an e-mail inquiry:

ejgudeman@gudemanlaw.com

This article was brought to you by Gudeman & Associates, P.C.

Many have applied for modifications of their mortgage loans a number of times, only to be turned down after completing their timely schedule of “temporary payments”. They have attempted “short sales” of their homes and have been turned down by their lenders.  They have run out of unemployment benefits and have not yet found employment. These people are being ruined by forces beyond their control that involve the on-going mortgage crisis, the unavailability of credit, and the associated devaluing of real estate. Add job loss, wage reduction, soaring fuel costs and increases in the costs of living, including food and energy; and it all points to a huge problem for which even the word “crisis” seems insufficient.

Sadly, these same individuals are now being told that filing for bankruptcy gives them a bad reputation and makes them social outcasts.  They are also told that bankruptcy filing can destroy their credit forever.

This is the social standing that is suggested for good people who exercise their rights to file for bankruptcy in the State of Michigan.  Interestingly, those who create this reputation are the same people who have the most to gain from depriving people of their federal civil rights.

We must remember that second to the right to vote, the privilege to file bankruptcy is arguably the most important right granted to us by the federal government.  Congress, under direction of the U. S. Constitution, has provided for the existence of bankruptcy since our independence.

It is time that the negative aspects of filing bankruptcy are dispelled and eliminated.  In Southeast Michigan, bankruptcy should be elevated to a position of sound strategy within financial planning. In many circumstances, it should be considered a perfectly legal, moral and ethical remedy to relieve financial pressures. It is the prudent approach to an individual’s personal and professional financial problems. We can help, and headquartered in Royal Oak, we are close and local.

This post is brought to you as a client service by the legal team of Gudeman & Associates, P.C.

It is informational in nature and is not intended as legal advice.

For legal advice please visit our website at: http://www.gudemanlaw.com/

Contact us at 248 546 2800

We are located at:

26862 Woodward Ave. Suite 103

Royal Oak, MI 48067

You can send us an e-mail inquiry:

ejgudeman@gudemanlaw.com

Gudeman & Associates, P.C.

1. You know you are behind on your mortgage and you cannot catch up by writing a check your missed payments.  Chapter 13 will allow you to keep your home and catch up on the deficiency over 36-60 months.

2. The mortgage company had a notice taped to your door letting you know you were now in foreclosure.

3. You start getting calls and letters from attorneys and realtors who say they read about your house being in foreclosure and offering to help.

4. Although rare in Michigan, you were served with a Summons and Complaint for foreclosure.

5. You received a letter from a law firm representing your mortgage company which gives you a deadline to catch up your delinquent mortgage payments and threatening foreclosure if you don’t make them.  The letter states that you have 14 days to respond by making an appointment to determine whether you can work things out with your mortgage company.

6. Your mortgage company sends you a letter stating that that your payments are in default. The next letter you will receive will be from the mortgage company’s lawyer.

7. You can’t pay both your mortgage(s) and your regular monthly payments.

8. You are thinking of using IRA, SEP or §401(k) monies to pay your bills.  These funds are exempt from bankruptcy.  And, tax free monies are virtually impossible to replace.

9. You applied for a loan modification that was ultimately rejected, leaving you further in arrears than when you started the modification process.

So  call a bankruptcy attorney and develop your Plan to deal with the problem before it is too late.  If the Sheriff’s Sale occurs, you will not be able to use bankruptcy to protect your home!  It will be gone.

For further information: http://www.gudemanlaw.com/bankruptcy/chapter-13/

Our website is: http://www.gudemanlaw.com/

Contact us at 248 546 2800

We are located at:

26862 Woodward Ave.

Royal Oak, MI 48067

You can send us an e-mail inquiry:

ejgudeman@gudemanlaw.com

This blog article was brought to you by Gudeman & Associates, P.C.

TAGS: Legal, Michigan, Gudeman, Law, Chapter 13, Detroit, Metro Detroit, opportunity, attorney, bankruptcy, Gudeman Law, proceedings, bills, debts, payments, invoices, plan, process, Oakland, Wayne, County, Foreclosure, home bankruptcy

We all wish that money grew on trees, but since it doesn’t, a budget can help ensure you don’t overspend. Designing a budget is easy; sticking to it is another matter. Here are some tips:

Write It Down
Understanding where your money goes is the starting point. So gather your bank statements and credit card bills, and use a spreadsheet or financial program, such as Quicken or Microsoft Money, to document your expenses. Divide them into two categories: Fixed (rent, student loans, credit card minimum payments) and Discretionary (food, clothing, entertainment). For small cash expenses, spy on yourself for a week and write down each transaction. Then multiply by 4.3 for the monthly figure. How much you spend on nonessential things (those daily double lattes, for example) may surprise you.

Make Adjustments
Your take-home pay (net pay) should cover your fixed expenses with enough left over for discretionary spending and savings. If not, you have some hard decisions to make. Unplug the cable TV, get a roommate or contact your student loan provider about alternative payment plans.

Pay Yourself First
The Golden Rule of budgeting is this: Take care of your debt repayment and savings before anything else. Establish a fixed percentage of your income for this purpose. If you have credit card debt, pay off the card with the highest percentage rate first, and then the next highest and so on. At the same time, put some money aside in savings. If your company has a 401(k) plan with matching contributions, start there. Otherwise, consider an IRA. Or establish an emergency fund with enough for at least three months’ expenses. Got a raise? Add some or all of it to your savings.

Make It Automatic
Once you know what you absolutely must spend each month, consider paying your fixed expenses and your savings account automatically through your bank’s bill payment service or by a utility’s or creditor’s direct debit service. Out of sight, out of mind.

Give Yourself an Allowance
Take your monthly net pay, subtract savings and fixed expenses, and what’s left is spending money. Divide the monthly figure by 4.3 for your weekly allowance.

Cash Is King
If you can, only use credit cards for emergencies and use a debit card instead to track your expenses.

The bottom line? Create a realistic budget that fits the way you live. Too strict and you’ll be tempted to cheat. Too lenient, and you might find yourself in financial hot wate

This post is brought to you as a client service by the legal team of Gudeman & Associates, P.C.

For further information: http://www.gudemanlaw.com/bankruptcy/chapter-13/

Our website is: http://www.gudemanlaw.com/

Contact us at 248 546 2800

We are located at:

26862 Woodward Ave.

Royal Oak, MI 48067

You can send us an e-mail inquiry:

ejgudeman@gudemanlaw.com

Gudeman & Associates, P.C.

*photo credit: http://www.partnershipforhumanservices.org

Personal Bankruptcy in Madison Heights, MI

Business Bankruptcy in Madison Heights, MI

After years of creditor harassment and facing foreclosure on our home, we decided to contact a bankruptcy specialist. Gudeman and Associates were able to stop the harassing calls from creditors and save our home.

J. Davis – Birmingham, MI

When You Can Discharge Past Due Income Taxes?
You can discharge federal income taxes in bankruptcy when: Your liability is has not been caused by your commission of fraud or willful evasion. For instance, if you filed a fraudulent tax return or otherwise willfully attempted to evade paying taxes, such as using a false Social Security number on your tax return, a discharge in bankruptcy is not available.

1. Your liability qualifies for discharge under “Three Year Rule.” The Three Year Rule means that to discharge a eliminate a tax debt, the tax return must have been timely filed at least three years before you filed for bankruptcy. This usually means April 15th (sometimes this date is changed because the 15th for the applicable year falls on a weekend and the IRS changes the filing date to the 17th) of the year the return was due. If you requested an extension, then timely filed may mean August 15 or October 15 of the applicable year.

2. You also qualify under the “Two Year Rule.” The “Two Year Rule” provides that you must have also actually filed the tax return which has resulted in the tax liability that you seek to discharge at least two years before filing the bankruptcy. If the IRS filed a return for you, the filing does not count to qualify you under the “Two Year Rule” unless you agreed in writing that they could file a return for you. If you never file a tax return, you can never discharge the taxes you owe for that year in a Chapter 7 bankruptcy.

3. In the event that the IRS has assessed your tax liability against you, they did so more than 240 days prior to your filing for bankruptcy. This is the so-called “240 Day Rule.” The “240 Day Rule provides that your income tax debt must have been assessed by the IRS at least 240 days before you file your bankruptcy petition, or must not have been assessed yet.

Certain events toll the time periods provided for above. If you have done any of the following, the time periods discussed above will have to be extended:

• OIC. You attempted to settle your debts by means of an “Offer in Compromise.” An offer in compromise delays the 240-day rule by the period from the time from when the offer is made until the IRS rejects it or you withdraw it, plus 30 days.
• TAO. You obtained a “Taxpayer Assistance Order” from the IRS ombudsman. If a TAO was issued preventing the IRS from collecting, the bankruptcy court may require that you add the same amount of time that the IRS’s collection was suspended.
• Prior Bankruptcy Case. If you filed for bankruptcy to prevent collection, you must add the time that your case was open to the applicable periods described above.

What you are considering to be “taxes” may, in fact, be a “penalty.” Penalties are not dischargeable. By way of example, if you owe money to the IRS due to a pass through penalty for your business’s failure to pay payroll and FICA withholding, those are deemed to be penalties and totally non-dischargeable per U.S. Supreme Court decision. The same goes for any fraud penalties; they can never be discharged in bankruptcy. You should contact your attorney regarding these obligations. Sometimes they can be dealt with through an Offer in Compromise. Obligations owing to the State of Michigan must be dealt with separately and remember that there is no formal offer in compromise procedure with the State of Michigan, so any settlement must be arranged with the Department of Treasury.

If you need copies of back tax returns, but do not want to have to pay the fees required by the IRS’s Form 4506, $57.00 per return, you can obtain a complete transcript of your returns for free by filing a Form 4506 T with the IRS. To find Form 4506T, go to www.irs.gov and type 4506T into the search box at the top of the page. On the form, ask for the returns to be sent to your home, either by mail or by fax, or to your attorney’s office.

What If The IRS Has Filed A Tax Liens Against My Property?
If you qualify for a discharge of your debts in a Chapter 7 bankruptcy it may wipe out only your personal obligation to pay the debt, but any lien recorded before you file for bankruptcy remains for ten (10) years. Usually, the debt has to be reported in your bankruptcy petition as a secured obligation. So even if the taxes qualify for and are discharged, the IRS’s lien is unaffected and the IRS can still take your property. In other words, if you want to keep your property, you still have to make arrangements with the IRS to pay them. If you fail to contact the IRS or, if your attorney does not do so, assuming you retain cousnel to represent you with respect to your tax issues, and file he or she files a Form 2848, the IRS may attempt to seize your property.
If you have non-dischargeable tax obligations you should strongly consider filing a Chapter 13 or Chapter 11 bankruptcy because the U.S. Bankruptcy Code allows you to include your tax obligations in the payment plans that are included in filings under those chapters.

Lastly, a few words of warning: If you are thinking about filing for protection under the U.S. Bankruptcy Code, file your income tax returns on time and file any delinquent returns ASAP! Timely filing may make the difference between discharge of the taxes and their non-dischargeablity. Also, many trustees will not conduct §341 meetings without copies of current returns. In effect, your tax returns become the “price of admission” to bankruptcy. If you have not filed them, get them filed now!

We wish you well. Remember we are just a call away. Contact us now at 248.546.2800

When facing foreclosure, Gudeman & Associates will be there for you. Arrange for your free no obligation consultation with one of our attorneys today!

For further information: Chapter 13 Bankruptcy
Our website is: www.gudemanlaw.com
Contact at: 248 546 2800
We are located at:
26862 Woodward Ave.
Royal Oak, MI 48067
You can send us an e-mail inquiry:
ejgudeman@gudemanlaw.com
This article was brought to you by Gudeman & Associates, P.C.