TAMPA FORECLOSURE DEFENSE ATTORNEY
At the Galewski Law Group, P.A. we have extensive experience in helping people stop foreclosure, file
for bankruptcy and otherwise workout and restructure their debt. If you are facing foreclosure, do not
take a risk with your investment, call and ask how we can stop the foreclosure or help you file
bankruptcy. We are a debt relief agency, our foreclosure attorneys and bankruptcy lawyers help
people file for relief under the Bankruptcy Code.
In foreclosure defense we take a goal oriented approach to helping your defend your home. If you want
to save your home, short sell your home or expunge your mortgage, we need to create a strategy with
your goal in mind.
UPDATE: Galewski Law Group, P.A. Bankruptcy Lawyers are following a recent change in
politics in DC, the one thing that both sides of the isle may agree on is helping people save
their home. Currently only a chapter 11 can change a mortgage value, but it is expected that
Congress will find a way to modify Chapter 13 to allow people to reduce principal due on
their mortgage.
Question of the week:
Can Chapter 13 bankruptcy reduce the amount due on my mortgage to the value of the home
as told on NBC Action News and Bay News 9?
Chapter 13 bankruptcy may be able to remove a second mortgage or reduce a the value of a mortgage
on investment property the value of the property, but Congress has specifically excluded the ability to
reduce the value of a mortgage on homestead property. Regardless, Orlando Courts have started a
mediation program that is now moving to Tampa, where banks are being forced to mediate, negotiate
and possibly modify mortgages in Chapter 13. A part of this mediation and modification may involve
principal reduction or debt forgiveness.
I am surrendering a home to a mortgage lender to help consolidate my debt, may I still
collect rent on the home, and does this change after filing a chapter 7?
If you have rental income from property but are planning on surrendering the property to the mortgage
lender, either in bankruptcy or foreclosure, the rental income may belong to the mortgage lender.
Please refer to your mortgage and note for details, but often rental income is assigned as part of the
mortgage. If you were to file a chapter 7 or 13 bankruptcy, you may still not be able to keep the rental
income. In a chapter 7 bankruptcy, the bankruptcy estate would own the rental property and they
would be the proper party to collect the rent. Even if the rent is paid to you, you may be required to
turn over the rent to the bankruptcy trustee. If you file a chapter 13 or reorganization, the rental
income may be used in calculating your income for purpose of determining your discretionary income
and ultimately your chapter 13 plan payments.
I am up-side-down or have negative equity in my home, can bankruptcy help me?
If you owe more than your house is worth, you typically have three options: pay for the house the home
value increases, return the home to the bank or sell the home. If you sell the home, a Tampa
bankruptcy attorney may help you to negotiate a short sale with the bank, so you do not need to bring
money to sell. If you decide to give the house to the bank, this may be done, with or with out a
bankruptcy. If you do not file a bankruptcy the Court may grant the bank a deficiency judgment against
you for the difference between the sale price and the amount owed. The bank may attempt to collect
the difference from your personally or may file a 1098/1099 with the IRS, and treat the deficiency
amount as earned income. You would then be personally liable for the difference as if it were earned
income from that tax year. A bankruptcy or reorganization may save you from the deficiency judgment
and the 1099 taxable gain. Call your Tampa bankruptcy lawyer for more information.
Under the New Bankruptcy Rules,a Chapter 13 Bankruptcy may help compel the bank to entertain a
Mortgage Modification.
Chapter 13 Bankruptcy Mortgage Modification overview
At the Galewski Law Group, P.A. we have extensive experience in helping people stop foreclosure, file
for bankruptcy and otherwise workout and restructure their debt. If you are facing foreclosure, do not
take a risk with your investment, call and ask how we can stop the foreclosure or help you file
bankruptcy. We are a debt relief agency, our foreclosure attorneys and bankruptcy lawyers help
people file for relief under the Bankruptcy Code.
In foreclosure defense we take a goal oriented approach to helping your defend your home. If you want
to save your home, short sell your home or expunge your mortgage, we need to create a strategy with
your goal in mind.
UPDATE: Galewski Law Group, P.A. Bankruptcy Lawyers are following a recent change in
politics in DC, the one thing that both sides of the isle may agree on is helping people save
their home. Currently only a chapter 11 can change a mortgage value, but it is expected that
Congress will find a way to modify Chapter 13 to allow people to reduce principal due on
their mortgage.
Question of the week:
Can Chapter 13 bankruptcy reduce the amount due on my mortgage to the value of the home
as told on NBC Action News and Bay News 9?
Chapter 13 bankruptcy may be able to remove a second mortgage or reduce a the value of a mortgage
on investment property the value of the property, but Congress has specifically excluded the ability to
reduce the value of a mortgage on homestead property. Regardless, Orlando Courts have started a
mediation program that is now moving to Tampa, where banks are being forced to mediate, negotiate
and possibly modify mortgages in Chapter 13. A part of this mediation and modification may involve
principal reduction or debt forgiveness.
I am surrendering a home to a mortgage lender to help consolidate my debt, may I still
collect rent on the home, and does this change after filing a chapter 7?
If you have rental income from property but are planning on surrendering the property to the mortgage
lender, either in bankruptcy or foreclosure, the rental income may belong to the mortgage lender.
Please refer to your mortgage and note for details, but often rental income is assigned as part of the
mortgage. If you were to file a chapter 7 or 13 bankruptcy, you may still not be able to keep the rental
income. In a chapter 7 bankruptcy, the bankruptcy estate would own the rental property and they
would be the proper party to collect the rent. Even if the rent is paid to you, you may be required to
turn over the rent to the bankruptcy trustee. If you file a chapter 13 or reorganization, the rental
income may be used in calculating your income for purpose of determining your discretionary income
and ultimately your chapter 13 plan payments.
I am up-side-down or have negative equity in my home, can bankruptcy help me?
If you owe more than your house is worth, you typically have three options: pay for the house the home
value increases, return the home to the bank or sell the home. If you sell the home, a Tampa
bankruptcy attorney may help you to negotiate a short sale with the bank, so you do not need to bring
money to sell. If you decide to give the house to the bank, this may be done, with or with out a
bankruptcy. If you do not file a bankruptcy the Court may grant the bank a deficiency judgment against
you for the difference between the sale price and the amount owed. The bank may attempt to collect
the difference from your personally or may file a 1098/1099 with the IRS, and treat the deficiency
amount as earned income. You would then be personally liable for the difference as if it were earned
income from that tax year. A bankruptcy or reorganization may save you from the deficiency judgment
and the 1099 taxable gain. Call your Tampa bankruptcy lawyer for more information.
Under the New Bankruptcy Rules,a Chapter 13 Bankruptcy may help compel the bank to entertain a
Mortgage Modification.
Chapter 13 Bankruptcy Mortgage Modification overview
Tampa's Best Foreclosure Defense Lawyers: 1112 E. Kennedy Blvd. * Tampa, FL 33602 * T 813.222.8210 * F 813.222.8211
www.Galewski.com
www.GalewskiTitle.com
www.Galewski.com
www.GalewskiTitle.com
Tampa Bankruptcy Attorney’s Update to the Bankruptcy Mortgage Reduction or Bankruptcy Mortgage Modification
Amendments:
Senate Rejects Mortgage Cramdown Provision
The Senate defeated by 51 to 45 votes an amendment to the Helping Families Save Their Homes Act that would have granted bankruptcy judges broad
authority to modify the mortgage terms for at-risk homeowners.
Assistant Senate Majority Leader Dick Durbin, D-Ill., chief sponsor of the ‘cramdown’ provision, said he was disappointed with the vote but would continue to
bring the issue to the floor “until the Senate decides to put the interests of homeowners above the interests of bankers.” Durbin noted that the number of
homeowners at risk of losing their homes now stands at over eight million, compared to nearly two million only two years ago.
“We’ve given the bankers who got us into this crisis every opportunity to responsibly address this crisis and they have failed,” Durbin said.
The White House said that notwithstanding the Senate vote on the Durbin amendment it looks forward to working with Congress to craft “appropriately tailored
legislation to provide a mechanism for homeowners who are out of other options to file for bankruptcy and implement a responsible plan to pay the debts that
they are able to pay.”
Meanwhile, Senate Minority Leader Mitch McConnell, R-Ky., said the provision would have lead to higher interest rates and even greater uncertainty in the
housing and credit markets. “It’s clear that we cannot fix the housing problem by implementing bad policies,” he said.
The American Bankers Association agreed, noting that Congress and the administration have taken several strong steps to help troubled borrowers and get
the economy back on track. “Giving bankruptcy judges broad cramdown authority would work against those efforts and effectively undermine the goal of
stabilizing the housing market,” the association said.
Analysis: Your Tampa Bankruptcy Lawyer notes that this means that for the time a Bankruptcy cannot be used to
reduce the principal amount due on a first mortgage, but since the House has passed the Bankruptcy Reform Bill,
it is possible that a Bankruptcy Judge may have the authority to cramdown or modify a mortgage in the near
future.
Amendments:
Senate Rejects Mortgage Cramdown Provision
The Senate defeated by 51 to 45 votes an amendment to the Helping Families Save Their Homes Act that would have granted bankruptcy judges broad
authority to modify the mortgage terms for at-risk homeowners.
Assistant Senate Majority Leader Dick Durbin, D-Ill., chief sponsor of the ‘cramdown’ provision, said he was disappointed with the vote but would continue to
bring the issue to the floor “until the Senate decides to put the interests of homeowners above the interests of bankers.” Durbin noted that the number of
homeowners at risk of losing their homes now stands at over eight million, compared to nearly two million only two years ago.
“We’ve given the bankers who got us into this crisis every opportunity to responsibly address this crisis and they have failed,” Durbin said.
The White House said that notwithstanding the Senate vote on the Durbin amendment it looks forward to working with Congress to craft “appropriately tailored
legislation to provide a mechanism for homeowners who are out of other options to file for bankruptcy and implement a responsible plan to pay the debts that
they are able to pay.”
Meanwhile, Senate Minority Leader Mitch McConnell, R-Ky., said the provision would have lead to higher interest rates and even greater uncertainty in the
housing and credit markets. “It’s clear that we cannot fix the housing problem by implementing bad policies,” he said.
The American Bankers Association agreed, noting that Congress and the administration have taken several strong steps to help troubled borrowers and get
the economy back on track. “Giving bankruptcy judges broad cramdown authority would work against those efforts and effectively undermine the goal of
stabilizing the housing market,” the association said.
Analysis: Your Tampa Bankruptcy Lawyer notes that this means that for the time a Bankruptcy cannot be used to
reduce the principal amount due on a first mortgage, but since the House has passed the Bankruptcy Reform Bill,
it is possible that a Bankruptcy Judge may have the authority to cramdown or modify a mortgage in the near
future.
LATEST REPORT ON BANKRUPTCY MORTGAGE MODIFICATION:
The Senate voted down the bill proposing to give Bankruptcy Courts the ability to modify
Representatives in the two houses of Congress are looking for new ways to allow your
bankruptcy lawyer to help you save your home:
"People in the servicing industry and in the broader financial industry must understand that if this
last effort to produce significant modifications fails, the argument for reviving the bankruptcy
option will be extremely strong," said Frank.
But Durbin told The Progress Report in an interview that, ultimately, "I think we're going to
beforced into alternatives." One alternative option is taking away the tax advantage enjoyed by
trusts that hold mortgage-backed securities "if the investors refuse to allow modifications."
There is also mandatory mediation, a very successful program requiring that lenders and
borrowers meet and try to work out an agreement before a foreclosure can proceed. Congress
could also "temporarily change the rules on foreclosure to give people facing foreclosure the
right to rent their homes" at the market price, giving banks an incentive to modify mortgages, in
order to avoid becoming landlords.
The Senate voted down the bill proposing to give Bankruptcy Courts the ability to modify
Representatives in the two houses of Congress are looking for new ways to allow your
bankruptcy lawyer to help you save your home:
"People in the servicing industry and in the broader financial industry must understand that if this
last effort to produce significant modifications fails, the argument for reviving the bankruptcy
option will be extremely strong," said Frank.
But Durbin told The Progress Report in an interview that, ultimately, "I think we're going to
beforced into alternatives." One alternative option is taking away the tax advantage enjoyed by
trusts that hold mortgage-backed securities "if the investors refuse to allow modifications."
There is also mandatory mediation, a very successful program requiring that lenders and
borrowers meet and try to work out an agreement before a foreclosure can proceed. Congress
could also "temporarily change the rules on foreclosure to give people facing foreclosure the
right to rent their homes" at the market price, giving banks an incentive to modify mortgages, in
order to avoid becoming landlords.
Free Bankruptcy Information
Chapter 7
Chapter 13
Chapter 7
Chapter 13
Tampa Foreclosure Attorney 1112 E. Kennedy Blvd, Tampa Fl 33602, Galewski Law Group, P.A.
Foreclosure attorneys at the Galewski Law Group provides bankruptcy, foreclosure defense and loan modification representation to clients throughout the Tampa Bay Area in cities that include
Tampa, Clearwater, Tarpon Springs, St. Petersburg, Palm Harbor, Dunedin, Lutz, Holiday, Safety Harbor, Oldsmar, Sarasota, Crystal Beach, Bradenton, Brandon, Plant City, Trinity, Lakeland,
Spring Hill, New Port Richey, Port Richey, Largo, Seminole, Pinellas Park, Ozona and throughout Hillsborough County, Pinellas County, Manatee County, Pasco County, Polk County, Sarasota
County and Hardee County.
Tampa, Clearwater, Tarpon Springs, St. Petersburg, Palm Harbor, Dunedin, Lutz, Holiday, Safety Harbor, Oldsmar, Sarasota, Crystal Beach, Bradenton, Brandon, Plant City, Trinity, Lakeland,
Spring Hill, New Port Richey, Port Richey, Largo, Seminole, Pinellas Park, Ozona and throughout Hillsborough County, Pinellas County, Manatee County, Pasco County, Polk County, Sarasota
County and Hardee County.
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