Areas of Practice

Bankruptcy Law
Family Law
 
 

6525 East 82nd Street
Suite 102
Indianapolis, Indiana 46250

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888.523.0165 office
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Bankruptcy

Helping People Get the Debt Relief They Need

Many different circumstances lead people to file bankruptcy. Maybe job loss or health issues have made it impossible to both support your family and pay back your debts. Maybe you are getting older and you are concerned that you will not be able to retire due to your debt burden. Or maybe you have found it impossible to pay off college loans and meet your other financial needs.

These and many other situations are good reasons to consider whether the bankruptcy law provides the right solution for you. I am Indiana attorney Lawrence C. Arany, and I can help you make an informed decision about bankruptcy and represent you if you choose to file. Contact me at my offices in Indianapolis to learn more.


Addressing Bankruptcy Concerns Effectively
I have found over the years that different clients have different concerns about bankruptcy law. Some have not decided whether filing bankruptcy is the right debt solution. Others want to file but want to make sure they are going to benefit from the bankruptcy process without losing everything.
Whatever your concerns are, I will work hard to address them. Among the major topics I frequently address with clients are the following:

  • Foreclosure and garnishment: The threats of foreclosure and/or garnishment are major reasons why people consider bankruptcy. Filing bankruptcy can stop these serious threats in their tracks. More...
  • Should I file bankruptcy?: The decision to file bankruptcy should be made based on an understanding of your eligibility and the potential consequences of filing for bankruptcy relief, as well as the potential consequences of not filing. More...
  • Which chapter?: The most common types of bankruptcy for individual consumers are Chapter 7 and Chapter 13. Which chapter is best for you depends on your specific circumstances and goals. More...
  • The bankruptcy process: It is always best to go into bankruptcy with an understanding of what to expect during the process. Each case is different, and an experienced lawyer can help you understand what is likely to happen.
I have been devoting a large portion of my practice to bankruptcy for more than a decade. I have been through changes in legislation, especially the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), and I have been very successful at getting fair results for my clients under evolving legal standards.

Filing bankruptcy is a serious decision, and if you decide to file, you should make sure you are doing so in a way that will allow you to pursue the best possible results. To discuss your options under U.S. bankruptcy law, contact us today.


Can You Get A Mortgage After Filing Bankruptcy?

September 20, 2013

Many debtors who lose their homes due to a foreclosure, short sale, or bankruptcy discharge wonder whether they can obtain a mortgage after filing for bankruptcy. Due to a major policy change, the Federal Housing Administration (FHA) has created rules making it easier for people to obtain a mortgage after bankruptcy.

The FHA recognized that many people encountered severe hardships resulting from the recent recession, such as unemployment, loss of health insurance coverage, other significant reductions in income, or huge jumps in mortgage payments under adjustable rate mortgages. As a result, borrowers were unable to pay their mortgages and lost their homes due to foreclosure or bankruptcy. Recession-related events such as these have negatively affected borrowers' credit. However, the FHA realizes that credit histories many not fully reflect a borrower's true ability to repay a mortgage.

Under the new FHA rules, a bankruptcy debtor can obtain a mortgage backed by the FHA one year after a bankruptcy discharge, so long as minimum criteria are met. This one year period applies to foreclosures and short sales as well. After a year has elapsed, a borrower will be considered by the FHA if the borrower experienced an 'Economic Event' and can prove the following factors: 1) The borrower had good credit before the Economic Event and the borrower's loss of employment or other loss in income resulting in credit impairment was beyond the borrower's control; 2) The borrower has demonstrated a full recovery from the event; and 3) The borrower has completed housing counseling.


As defined by the FHA, an 'Economic Event' is "any occurrence beyond the borrower's control that results in loss of employment, loss of income, or a combination of both, which causes a reduction in the borrower's household income of 20% or more for a period of at least 6 months." While this rule shows that the FHA is willing to help people obtain a mortgage after bankruptcy, the FHA's definition of an 'Economic Event' still doesn't consider people whose incomes have remained the same, but their expenses have increased by 20% or more for a period of at least 6 months. There are many events beyond a borrower's control resulting in increased expenses. For example, people can become sick or disabled or need to care for a family member or relative who became sick or disabled, resulting in a significant increase in expenses.

Therefore, although the FHA's definition of an 'Economic Event' needs to be expanded, it is still a great start by the FHA in helping people obtain a mortgage after bankruptcy. If you would like to learn more about the FHA.

 

 
 
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