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Stopping Lawsuits, Garnishments and Bank Levies

When a person doesn’t earn enough money to cover his or her expenses, life can be stressful enough. Unfortunately, this financial stress can become overwhelming when one or more of an individual’s creditors threaten to take legal action to collect money from a debtor.

For example, credit card companies and medical providers often bring civil lawsuits against debtors who do not pay their bills. Once a creditor obtains a judgment against a debtor, the creditor can begin garnishing the debtor’s wages or seizing money the debtor has in his or her bank accounts. This can have serious negative consequences for some debtors, who may not be able to afford to put food on the table or pay their monthly rent if all of the money in their bank account is suddenly seized.

Fortunately, bankruptcy can offer relief for people who are being threatened with lawsuits, garnishments or bank levies by creditors. Once a person files a bankruptcy petition, an automatic stay goes into effect. The automatic stay prohibits creditors from taking any further action to collect debts from the petitioner for the duration of the bankruptcy proceeding. As a result, creditors must immediately stop from garnishing a person’s wages or seizing his or her bank accounts.

In addition to stopping wage garnishments and bank levies, the automatic stay can benefit debtors in many other ways, such as by delaying evictions or utility shut-offs, stopping repossessions and can even be used to prevent a home foreclosure in certain circumstances. If you have questions about whether the automatic stay could help you, contact a local bankruptcy attorney.

Written by Hoglund Law

The attorneys of Hoglund law are licensed in Minnesota, Wisconsin and Ohio. Hoglund, Chwialkowski & Mrozik, PLLC is based in Roseville, Minnesota. In addition to handling cases involving bankruptcy & social security, Hoglund, Chwialkowski & Mrozik, PLLC handles faulty drugs and toxic exposure.

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Mixed Feelings on the Current Housing Market

Some economic experts and analysts contend that there is little chance for a housing recovery.  That extremely pessimistic outlook is not based on feelings, but upon solid economic data.  The year of 2011 was a sad story for the housing market.  The market saw record low 30-year mortgage rates with few people taking advantage of the rates to buy new homes.  The New Year is likely to bring much of the same.  Doug Duncan, vice president and chief economist at Fannie Mae, contends that there might be a slight uptick in houses sold but the home prices likely will be down.  This means that although more houses will be sold in 2012, the total amount of money spent on purchases is likely to be the same as in 2011.

Despite the fact that the Federal Reserve has pledged to keep rates low through 2013, many content that because of the high unemployment and the historically low home prices, there will be no recovery of the housing market for the foreseeable future.  Last year saw a total of $1.3 trillion in home lending, which is down from $1.7 trillion in 2010 and $3.3 trillion in 2005.  Another disturbing figure is the fact that much of the $1.3 trillion in home lending last year did not result in new home purchases.  Approximately 4 out of 5 mortgage applications were for refinancing current mortgages.  Borrowers were taking advantage of the historically low rates, which averaged less than 4%, not to purchase new houses, but to refinance their current homes.

Not all analysts predict such doom and gloom for the housing market.  Others are optimistic about the future of the market.  Former top economics advisor to the White House and Wells Fargo & Co., Sung Won Sohn states, “Housing has hit the bottom and has begun to heal slowly.”  The events that have taken place over the past few years have “set the stage for a rebound” as Sung contends.  Whether or not we are to see a recovery in the near future most would contend that given the extreme damage that was inflicted on the housing market any form of recovery is likely to be slow.

 

Source:

E. Scott Reckard, Low mortgage rates likely to continue through 2012, experts say, https://www.latimes.com/business/la-fi-mortgage-rates-20120103,0,2240865.story (accessed 12/4/12)

Written by Hoglund Law

The attorneys of Hoglund law are licensed in Minnesota, Wisconsin and Ohio. Hoglund, Chwialkowski & Mrozik, PLLC is based in Roseville, Minnesota. In addition to handling cases involving bankruptcy & social security, Hoglund, Chwialkowski & Mrozik, PLLC handles faulty drugs and toxic exposure.

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Historic Low for Mortgage Rates

In the 40-year history of Freddie Mac’s Primary Mortgage Market Survey, interest rates on a 30-year fixed-rate loan is the lowest it has ever been.  Just in time for the holidays, the mortgage rate on a 30-year mortgage is now 3.94%.  Mortgage rates have been falling over the entire year, and since the beginning of the year, the rate has fallen .9%.  Frank Nothaft, Freddie’s chief economist notes the decrease in rates over the year results in a savings of $1,200 a year for a homeowner with a $200,000 mortgage.

These low rates are resulting in an increase in home sales, which is a good sign for the economy.  This past month saw the greatest new home sales since January.  Senior financial analyst at Bankrate.com, Greg McBride, contends that mortgage rates should remain low for much of 2012.  “For well-qualified buyers, interest rates should be no impediment to home buying in 2012,” said McBride.

Existing homeowners are taking advantage of these historic rates by refinancing their old loans into more affordable ones.  Nearly 80% of all mortgage applications last week came from existing homeowners.  McBride expects that lenders will ease up on borrowing requirements only slightly.  Some lenders are starting to require only a 720 credit score, where previously a 740 credit score was required for the best mortgage rates.  These baby steps will, however, help more people gain access to these historic rates.

 

Source:

Les Christie, Mortgage rates hit another record low, https://money.cnn.com/2011/12/22/real_estate/mortgage_rates/index.htm?iid=HP_LN (accessed 12/22/2011)

Written by Hoglund Law

The attorneys of Hoglund law are licensed in Minnesota, Wisconsin and Ohio. Hoglund, Chwialkowski & Mrozik, PLLC is based in Roseville, Minnesota. In addition to handling cases involving bankruptcy & social security, Hoglund, Chwialkowski & Mrozik, PLLC handles faulty drugs and toxic exposure.

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Late Mortgage Payments Increase

According to the Mortgage Bankers Association, the number of borrowers who were late on their mortgage payments rose to 12.87% in the second quarter of 2011. Prior to the second quarter of this year, the number of homeowners who were delinquent on their mortgage payments had been decreasing for over a year.

The 12.87% refers to mortgages that were at least 30 days overdue or in the foreclosure process. The second quarter figure represents a decrease from the 14.4% in the second quarter of 2010, but a slight increase from the 12.84% at the end of the first quarter of this year. The figure corresponds to 6.3 million homeowners who are behind on their mortgages.

The actual foreclosure rate is near its lowest in four years. However, this is largely due to government assistance programs and an investigation into foreclosure documents that has caused lenders to delay foreclosing. The increase in late mortgage payments illustrates how the rise in unemployment can affect the struggling housing market.

 

 

Source:

Maggie Shader, Delinquent Mortgage Payments on the Rise (accessed August 25, 2011).

Written by Hoglund Law

The attorneys of Hoglund law are licensed in Minnesota, Wisconsin and Ohio. Hoglund, Chwialkowski & Mrozik, PLLC is based in Roseville, Minnesota. In addition to handling cases involving bankruptcy & social security, Hoglund, Chwialkowski & Mrozik, PLLC handles faulty drugs and toxic exposure.

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