Grossbart on Bankruptcy Law

Forensic analysis of your mortgage for married couples 101

The most important investment a consumer makes is usually their home. If your married and you purchased your home, you get a special protection from your creditors. That is because your home is titled as tenants by the entirety (t by e). That means under common law, only creditors of both spouses can pursue a claim against that t by e property. Thus when a mortgage (Deed of Trust or DOT) is obtained, it creates a lien that collateralizes the residence. If both spouses signed the DOT, but only one spouse signed the note, the lien is still valid against the property but the note is only owed by the signing spouse. What happens if the DOT, is signed by one spouse and the property is owned t by e? No lien and property is potentially owned free and clear! Big!

Thought for the day - check your mortgage documents before, during and after bankruptcy.  

 

 

Bankruptcy Bedside Manner

Who wants to file bankruptcy? Nobody. Who needs to file bankruptcy? That is a different question.

When a client comes to your office typically you are their last hope. They have explored a variety of other options. They have borrowed money from friends, family or their employer. They have borrowed or depleted their pension. They have borrowed from their credit card line of credit. They have attempted to settle their own debts. They have taken pay day loans. They have borrowed against their home or car. They have gone to debt settlement. They have attempted a loan modification.They have called their congress person.

In short. a bankruptcy lawyer shouldn't just know the law but also needs to be a therapist who through experience understands what the client is saying but also provides what they need to hear emotionally.