Archive for November, 2011

Personal Property and Homestead Mix-Up

Wednesday, November 16th, 2011

It has been ruled that homestead exemption pertains to the profits that come from personal property that has been sold with a house with the exception that the money was set apart from the sale or it was used to repay creditors. This means that money that comes from personal items is classified under a homestead exemption, while a house is not exempt. This ruling alters a decision that had previously been made by a judge who realized that the earnings from the individual property were not connected to the homestead.

Thus, the judge agreed that the exemption was not applicable. The person in debt sold his home along with several items of personal property and combined the money. He paid off the first mortgage and the rest was placed in his savings account. When he filed for bankruptcy, the declared homestead exemption in order to keep the remaining money that was left in his savings. There was an objection that they money in the savings account was mixed in with the profits from the personal property that was not exempted through the law. The objection was sustained, and the court found that a small portion of the savings came from personal property, and thus, the decision was reversed.

The U.S. Bankruptcy Appellate Panel established that the man in question had proven that there was enough evidence to warrant an investigation regarding the intent to change his non-exempted funds to homestead property. This was because he combined the money in one account without any separation between the two. The only error was that they were not able to find evidence of a definite conversion of money.

There was also an error when the BAP said that the person in question had meant to convert the property funds that were not exempt, because it had not proven it as a fact. The court agreed that the decision had to be reversed. However, the court said that the trustee did not show that the money from the house and personal property were ever truly divided or that the proceeds of the homestead were used to reimburse the mortgage. It was decided that the trustee did not show the man’s money that was put in savings came from the profit of personal property that was not exempted, and the case was returned to court for continued arrangements.

Rosenstein Law Group has the experienced staff that knows your struggles, and they are ready and waiting to help you find a solution. Their answers are straightforward, and their solutions are effective. At Rosenstein Law Group, they have people waiting 24 hours a day, every day to take your phone call. Their number is 480-248-7666. They are knowledgeable, skilled, and waiting for you to call so that they may help you through this time of hardship and back on the path to prosperity.

 

Student Debt On The Rise

Tuesday, November 15th, 2011

In this day in age, people are desperately looking to education to secure their future and ensure job security. They look to colleges as a way to move up in the world and to start a new life. Due to this increasing competition, college students have to specialize more and receive higher degrees. Employees have to go back and take classes to be able to compete with the others entering the workforce. Because of this, more and more people have resorted to taking out student loans in order to pay for college, and college isn’t cheap.

They have the intention of paying the loans back once they have a job and are financially stable. This idea has caused student loans to rise to an all time high. Last year, the student loan debt rose to $100 billion for the first time. The total loan expenses are expected to go even higher. The Federal Reserve Bank of New York projects that loans will surpass $1 trillion this year. College students are now taking out two times what they were borrowing a decade ago.

The outstanding debt has doubled over the past five years. The credit card debt has an inverse relationship student loans. Credit card and home loan debts are going down while student loan debt is steadily increasing. It is important to be aware that home loans and credit card debts are not like student loans. Mortgages and credit card debt can be removed if bankruptcy is filed. That is not the case with student loans. Lenders now have the permission to make student loans less likely to be erased through defaults. This is important because it affects the future of our economy.

Other areas such as new car sales and home sales are being put on hold so that people can pay off student loans or other loans that cannot be discharged. The numbers of people who are defaulting on loans are increasing. That number has increased to 2.1% in the past two years. Many of these defaults are coming from the increase of for-profit schools that are online based. One example of this type of school is the University of Phoenix. The University of Phoenix gets 88% of its profits from governmental student loans. With more of these types schools coming into being, debt will continue to grow and our economy will be what suffers.

Rosenstein Law Group has the experienced staff that knows your struggles, and they are ready and waiting to help you find a solution. Their answers are straightforward, and their solutions are effective. At Rosenstein Law Group, they have people waiting 24 hours a day, every day to take your phone call. Their number is 480-248-7666. They are knowledgeable, skilled, and waiting for you to call so that they may help you through this time of hardship and back on the path to prosperity.