Thursday, May 4, 2017

May Bankruptcy Special

For the month of May I am running a special on chapter 7 bankruptcy fees.

$600 total and complete bankruptcy ($335 filing fee and $265 attorney fees) You cannot beat that price anywhere. Call or email today for your free confidential informational packet.

visit my new VLO website at

Tuesday, February 7, 2017


Paying interest in your student loans may amount to a tax deduction, it is $2,500 max or whatever is less that you paid in 2016

How to qualify?

Well, it has to be legally your debt, and your interest on that debt. You DON'T file separate tax returns while married, and as a household your income is less than $130,000, $65,000 if single.

You can take this deduction whether you itemize your deductions or not, which is a huge deal, because they are really not tax breaks, but rather adjustments in income.

Any break that you can get on your taxes is a plus, and this one does not take long to figure out, since the student loan company must send you documentation indicating how much interest you paid on student loans for 2016, you could gain up to $1,000 added to your refund, not bad!

Keep pushing your congressman to amend the bankruptcy code to allow certain reductions in student loan debt and forgiveness in a Chapter 13 Plan, this would greatly reduce the nearly 1.5 TRILLION in federal student loan debt!!

Charles L Basch II, attorney and counselor at law

Monday, November 28, 2016

Obtaining a Mortgage Post Bankruptcy

Getting a Mortgage After Bankruptcy

Buying a house after a bankruptcy takes a little research to find a bad credit mortgage with reasonable rates and terms. But it can be done with the help of online lenders. By comparing financing offers, you can quickly find a home loan with good terms. As a general rule, the longer you wait after your bankruptcy is over, the better chance you will increase your score, and have better success. A benchmark is about two years after discharge.

Finding The Right Mortgage

With a credit score less than 650, you will need to apply for sub-prime financing with rates slightly higher than conventional home loans. Sub-prime financing is offered by traditional lenders, as well as specialized bad credit lenders. To get the most borrowing power, choose an adjustable rate or interest only mortgage. To further reduce your rates, plan on a down payment of 20% or more. Large cash reserves or a low debt ratio will also help you qualify for lower rates. But researching lenders is the surest way to find the lowest rates. Remember too that with sub-prime lending, you don’t pay for private mortgage insurance, even with less than 20% equity.

Before You Start Your Search

Before you start your sub-prime mortgage search, get a copy of your credit report. Check it for accuracy after your bankruptcy, and then use it to get loan quotes. That way lenders won’t have to access your report and further lower your credit score with unnecessary credit inquires. Each time a credit report is ordered it will impact your score, unless they do a “soft pull.”

Securing Mortgage Terms For The Future

When you start comparing mortgage offers, make sure the terms are favorable for your future financial goals. If you plan to refinance when your credit score improves, makes sure there aren’t any fees for early payment. This is also a benefit if you move before the loan is paid off. Another important factor to consider are closing costs, especially if you are planning a future refinance. Paying extra thousands for a slightly lower rate doesn’t make sense if you don’t keep the loan for seven years or more. Even with the lower interest charges, you won’t see a savings. So take a look at the APR for a general idea of the total loan costs. But then look at the breakdown of the closing costs and interest rate to find the financing that works best for you and your financial situation.

Thursday, November 10, 2016


Having a garnishment on your wages is a tough go. And there is little or nothing you can do, short of quitting your job or paying it off in full that can get you relief. Except, bankruptcy! If you have heard of bankruptcy, but have written if off as the worst possible scenario, don’t. If you qualify for a chapter 7 you can have your garnishment stopped, and your debt eliminated, and even get some of it back!

Your employer is required to take out that garnishment by court order, and disobeying it could have disastrous consequences on them. To get a judgment, a creditor must sue, win and obtain a judgment, which is typically then reduced to a writ or garnishment sent to your employer. Most states have a cap at 25% of your take home pay.

Regardless of the stage of the garnishment, a bankruptcy can stop that process dead in its tracks and get that money back in your paycheck, the next pay period.  

Thursday, November 3, 2016

Student Loans and Bankruptcy

Student Loans, Bankruptcy, and Alternatives

There are a wide variety of reasons why you could be considering filing bankruptcy to eliminate student loans as a solution to your student loan debts. Even though this should be your last resort to paying off your student loans, you might find yourself in a situation that could require you to file for bankruptcy to try and eliminate your student loans.

Can You Declare Bankruptcy For Student Loans?

You can, but there are certain laws, rules and policies that you must follow. There are also certain qualifications that you must be able to prove in order to even qualify for a student loan bankruptcy. As far as qualifying to declare bankruptcy, this could be different for almost everyone and very difficult to prove.

Undue Hardship Under Chapter 7: You must be able to show that you have an undue hardship in order to qualify for this type of bankruptcy. The only way you can prove an undue hardship to declare bankruptcy for your student loans is if you are physically unable to work and you will not be able to work for the rest of your life. This is a rare occurrence, and difficult to prove to a court. You should choose this method of applying for bankruptcy if you meet the qualifications for it.

Chapter 13 Bankruptcy: You shouldn't expect to be able to get rid of all of your student loan debts by filing under a chapter 13 bankruptcy, but you could get rid of some or most of it. The best way to apply for this one will be to expect to have your student loan debt consolidated, because that is likely what the court will do (as well as eliminate some of it). To qualify for chapter 13 you will need to prove that you have the disposable income available to pay back at least most of your student loan debt.

Are There Any Alternatives To Bankruptcy?

There are many alternatives available to you instead of filing for bankruptcy. Here is an outline of those alternatives:

Repayment Plan: Work out a payment plan with your current lender that will help lower your monthly payments now and increase as your income does. Your lender wants to work with you and would be happy to help you find a repayment plan that will work for both of you.

Payment Deferment: Contact your lender to ask for an application to apply for payment deferment. If you qualify this will put off any payments you would otherwise have to make and keep you out of collections until you are able to make the monthly payments.

Student Loan Consolidation: Work with another lender to get all of your student loans put into one loan with one monthly payment to make. This will decrease your monthly payments and your interest rate, saving you money now and later.

As mentioned before, filing bankruptcy to eliminate your student loans should be considered as a last resort if you can't simply find anything else that will work for you and your financial situation. There are many alternatives to filing for bankruptcy and your lenders can help you with this as they do want you to pay back the loan even if they have to make some adjustments.

Call Charles L Basch II at 313-343-9930 today.