By Alan Steven Wolf of The Wolf Firm (Winter 1995 - USFN Network News)
By Alan Steven Wolf of The Wolf Firm
(Winter 1995 - USFN Network News)
The new bankruptcy legislation was passed on October 22, 1994. It makes a number of changes which are directly relevant to mortgage loan servicers. All USFN members and mortgage servicers are encouraged to carefully review the complete legislation. The USFN office can provide you with a copy upon request.
A summary of the major changes is as follows:
· Cramdowns in Chapter 11 plans have been eliminated where the property is the principal residence of the debtor.
· There is no interest allowed on Chapter 13 plans for loans created after October 22,
1994, unless the loan documents specifically
provide for such interest.
· The Chapter 13 plan can deaccelerate a loan until termination of the equity of the redemption.
· The court must decide a motion for relief from stay within 30 days of the preliminary hearing.
· There are substantial penalties for typing services that improperly prepare bankruptcy petitions.
· Bankruptcies filed to enhance a fraudulent scheme are both a crime and a predicate act under RICO.
· The Chapter 13 limits have been increased to $250,000 unsecured and $ 7 50,000 secured.
For further information please contact:
The Wolf Firm, A Law Corporation, is an "AV" rated law firm which concentrates on providing superior legal services to the mortgage banking industry. The firm's national clientele includes many of the largest mortgage bankers in the country, as well as a variety of savings banks, commercial banks, commercial finance companies, credit unions, and the Resolution Trust Corporation. With a staff of approximately forty individuals, including attorneys, certified paralegals, legal secretaries, administrators, clerical personnel, and a full time computer systems analyst, the firm represents its clients on a wide range of matters including all aspects of both residential and commercial/multifamily mortgage loan origination and servicing, securitization, regulatory compliance, bankruptcy, and litigation related to the foregoing in both federal and state courts throughout California. For more routine matters, such as residential bankruptcies, evictions and receiverships, The Wolf Firm has developed extremely cost-effective and efficient programs using specially trained paralegals and computer technology to assist its attorneys in handling these matters at rates that are the most competitive in the State of California and, through its membership in the USFN, the Firm is able to arrange similar services in virtually every state in the nation.
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