Mortgages and Chapter 7: Getting back into the housing market

After bankruptcy, how can you get a mortgage in New York? Interestingly, each kind of bankruptcy will affect you differently, and if you applied for bankruptcy protection during the U.S. recession, then you may be able to apply for a new mortgage now. The recession officially ended in 2009, and the mandatory time you had to wait to get a mortgage backed by either the Federal Housing Administration or Fannie Mae only lasts two to four years. In 2010, the number of bankruptcies in the United States peaked. At that time, there were approximately 1.5 million Americans who had filed for protection. Some households chose to go through Chapter 7 liquidation bankruptcy. Those who did needed to wait four years after the elimination of their debts before they could reapply for a loan through Fannie Mae. Chapter 13 participants only had to wait two years. Luckily, Federal Housing Administration loans had only a two-year wait for those who went through Chapter 7, and it had a one-year wait for Chapter 13 participants, allowing more people to get back into the housing market. It’s estimated that it could take up to five years for those who went through bankruptcy to get… Continue reading

Your obligations: Chapter 13 bankruptcy in New York

Although bankruptcy does eliminate your debts at least to some degree in New York, you do still have obligations during the process. When you’ve filed for Chapter 13 bankruptcy, you have agreed to pay back your creditors within three to five years. If your income is higher than your state’s median income, you may have up to five years to repay the debt, while you will only have three years if you earn less than the median income in your state. You must file several documents and forms with the court as part of your bankruptcy petition. First, you need a credit counseling certificate of completion. If you’ve made a repayment plan, then that also needs to be included. Next, you must show a copy of your most recent tax return along with proof that you filed taxes over the last four years. Finally, you need to show the court your Chapter 13 repayment plan. You do have to pay to enter into bankruptcy, which is why it should be reserved only for people with higher amounts of debt or debt that is completely unaffordable. The filing fee is $235, and this is accompanied by an administrative fee of $39…. Continue reading

Dendreon files for Chapter 11 Bankruptcy after falling into debt

In New York, you may have heard about the company, Dendreon, which has now filed for Chapter 11 bankruptcy protection. The company, a prostate cancer drug developer, has decided to seek bankruptcy protection with a plan that will lead to the sale of the company or a takeover by its current lenders. The company, which is based in Seattle, has listed over $664 million in debt with only $364.6 million in assets. Its largest creditor is Bank of New York Mellon, which it reportedly owes $620 million. The company is known for the prostate cancer treatment Provenge. One of the main concerns with a drug company going out of business or going bankrupt is the risk to patients who are benefitting from the use of the company’s drug. The company has reported that because of the way it’s restructuring the business, patients will still be able to receive the drug. The drug creator has also reported that it has enough money to support itself throughout the restructuring process. The goal of this Chapter 11 bankruptcy is to eventually sell the company to a buyer who would produce Provenge for patients and medical care in the future. If the sale is… Continue reading

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