Tampa's Best Bankruptcy Attorneys * 1112 E. Kennedy Blvd, Tampa, FL 33602 * 813.222.8210
813.222.8121-www.Galewski.com
www.GalewskiTitle.com
813.222.8121-www.Galewski.com
www.GalewskiTitle.com
TAMPA REAL ESTATE, FORECLOSURE & CONSTRUCTION
Tampa Real Estate Lawyers: at the Galewski Law Group we provide complete coverage of all of your real
estate needs,including short sales, mortgage modifications, expunge mortgages or remove an equity line,
or forgive a deficiency mortgage. On the Corporate side we have worked with full and part-time real
estate investors, developers and contractors to assure that our clients have confidence in their business
dealings. We have helped solve problems and moved to advance development with the U.S.
Environmental Protection Agency, the Florida Department of Environmental Protection and with
neighborhood enhancement programs. We have helped motivate otherwise neglectful and
non-responsive contractors, and we have helped contractors to defend their work and get the money due
them.
We also represent individuals and families to bring peace of mind into what may be their most prized
investment -- their homes. We understand the problems and worries in purchasing and selling a home or
investment property. Our goal is to make your home buying experience a pleasure. We work closely with
the Galewski Title Company to make certain that your closing day is a moment of pride.
Question of the week:
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.
Tampa Real Estate Lawyers: at the Galewski Law Group we provide complete coverage of all of your real
estate needs,including short sales, mortgage modifications, expunge mortgages or remove an equity line,
or forgive a deficiency mortgage. On the Corporate side we have worked with full and part-time real
estate investors, developers and contractors to assure that our clients have confidence in their business
dealings. We have helped solve problems and moved to advance development with the U.S.
Environmental Protection Agency, the Florida Department of Environmental Protection and with
neighborhood enhancement programs. We have helped motivate otherwise neglectful and
non-responsive contractors, and we have helped contractors to defend their work and get the money due
them.
We also represent individuals and families to bring peace of mind into what may be their most prized
investment -- their homes. We understand the problems and worries in purchasing and selling a home or
investment property. Our goal is to make your home buying experience a pleasure. We work closely with
the Galewski Title Company to make certain that your closing day is a moment of pride.
Question of the week:
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.
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.
Tampa Foreclosure and Short Sale Attorney 1112 E. Kennedy Blvd, Tampa Fl 33602, Galewski Law Group, P.A.
The Galewski Law Group provides Chapter 7, Chapter 11 and Chapter 13 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.
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.
| Home Practice Areas Tampa Lawyers Contact Disclaimer Links Tampa Bankruptcy Forum Tampa Divorce Forum Privacy Policy |