In bankruptcy, debtors often wish to discharge their unsecured debt but keep their secured collateral. This is generally allowed in bankruptcy, but a practice commonly employed by credit unions makes this process more complicated and often more expensive. The reason is because credit unions often include cross-collateralization clauses in their loan documents. Cross-collateralization means that […]
THE TROUBLE WITH LOAN MODIFICATIONS
A quick search of the internet will show that loan modification programs have been generally unsuccessful. In my practice as a bankruptcy attorney, I encounter debtors every day who are trying to save their home through a loan modification. After months of submitting and resubmitting documents, jumping through one hoop after another, they are usually […]