Simmons & Schiavo Blog

Will my credit be ruined if I file Chapter 7 Bankruptcy?

More information: I live in Everett and have been considering filing for a Chapter 7 Bankruptcy because I cannot afford my credit card payments.  Someday I would like to buy a new home and I am concerned about my credit score after I file the Bankruptcy.  Will my credit be ruined?

Answer: That is a very good question. Actually, it’s one that most people ask during the initial consultation. Here is a well written article directly on point:

By Douglas Jacobs, California Bankruptcy Attorney

Not really.  The greatest effect on your Credit Score (Fico score) Is the number of late payments on your accounts.  More late payments – worse scores.  Certainly there are other factors, and filing bankruptcy may have the immediate effect of lowering the score.

But why do you care?  That’s the truly important question.

First of all, if you have months of missing credit card or house payments, your  credit score is none too good at the moment. Filing bankruptcy won’t hurt it that much.  And it will give you a fresh start – a clean slate to build your credit back from where it is and in far less time than it takes struggling to pay off those credit cards. [Read more...]

New disability access requirements will take effect in early 2012

The Americans With Disabilities Act was passed 20 years ago and required retail and other commercial business owners to renovate their properties to make them accessible to the disabled. For the first time since then, the U.S. government has comprehensively revised the requirements. The new requirements will go into effect on March 15, 2012.

The changes include new rules for the following: van-accessible parking, maximum height and “reach ranges” for certain objects, service animals, communication devices for the hearing-impaired, seating requirements in theaters and other assembly areas (including access to stages), pool access, hotel reservations, wheelchair accessibility for employees, the use of mobility devices other than wheelchairs (such as Segways), and more.

In addition, the U.S. Justice Department has updated its list of modifications that all building owners are expected to consider, including ramps, curb cuts, access to vending machines, widening doors, accessible door hardware, rearranging toilet partitions, grab bars and raised toilet seats, and insulating pipes under sinks to prevent burns.

Higher standards are required for new construction and for older properties that are undergoing substantial renovations.

Exactly what is required varies and depends on the nature of the property and the expense involved in making it more accessible, but all commercial property owners need to be aware that new requirements are taking effect soon.

The Massachusetts real estate attorneys concentrate in Massachusetts real estate law and serve the entire Greater Boston North Shore region including the communities of Everett, Revere, Chelsea, Somerville, Cambridge, Medford, Arlington, Winchester, Woburn, Burlington, Stoneham, Melrose, Wakefield, Saugus, Lynn, Peabody, Salem, Marblehead, and Swampscott. Our real estate lawyers speak and provide legal services in Spanish and Italian.

Buying or selling real estate at an auction can be complicated

A small but growing percentage of real estate is being sold at auction. The advantage of an auction for a seller is that the property will definitely be sold quickly, although usually at a lower price. So auctions often attract sellers who simply want to unload a property, such as a lender that has foreclosed on it, or an executor whose heirs want cash and not real estate.

Auctions often attract buyers who are looking for a deal – although auctioned properties are usually sold “as is” with no guarantees, so unless you’ve done careful homework and had everything inspected thoroughly, the property might not be as good a deal as you first thought.

Auctions require special contracts and agreements that aren’t part of a traditional real estate transaction.

Because auctions are unusual and require special contracts and agreements, a seller will definitely want to work with an attorney as well as an auctioneer.

[Read more...]

How Long After Filing Bankruptcy Can You Buy A Home?

A very common question that most potential bankruptcy clients ask during the initial meeting with a bankruptcy attorney is “After I file for bankruptcy, when can I buy a new home?”    Below is an excellent article that gives you  some tips to save some money and quickly improve your credit after a bankruptcy.

How Long After Filing Bankruptcy Can You Buy A Home?
by Jay Fleischman, New York Bankruptcy Lawyer

Buy a home after bankruptcy?  Seems like a stretch for all but those who win the lottery once the discharge is issued.  But play your cards right and you could be worrying about scheduling a closing date sooner than you ever thought possible.

After filing bankruptcy, you’re debt free.  No more calls, no more lawsuits.  Suddenly, the world feels a bit brighter and filled with possibilities.  You start looking around your rental and thinking you might want to buy a home.

In order to buy a home after filing bankruptcy, you’re going to need to worry about two things.  They are:

  1. Your level of savings; and
  2. Your credit score.

Your Savings Account (The Downpayment)

In order to buy a home, you must have a downpayment.  Though the land of $0 down mortgages was wonderful for a time, it’s gone now.  And if there’s a broker willing to do the deal for you, run the other way.  When you don’t have a downpayment, you run the risk of going upside down on your mortgage the first time the Federal Reserve Bank chairman catches the sniffles.  Definitely bad idea. [Read more...]

Time Line for Evictions in Massachusetts

If you have a tenant who is obligated to pay their rent on a monthly basis on the first of the month but fails to do so, as a landlord you are entitled to commence an eviction on the second day of that very month.

The first step is to serve a fourteen day notice to quit for non-payment of rent. The fourteen days runs from the time that the notice is served upon the tenant. After fourteen days have passed (expiration date), the next step is to serve a summary process summons and complaint upon the tenant by the first Monday after the 14 day Notice to Quit expires. Thereafter, the complaint with proof of service must be filed with the court no later than the second Monday after the expiration of the 14 day Notice to Quit. The tenant has until the following Monday (being the third Monday after the expiration of the 14 day Notice to Quit) to file an Answer with the court. If the tenant fails to file an Answer, the hearing will most often times be the third Thursday after the expiration of the Notice to Quit. If the tenant files an answer, the hearing is postponed by two weeks. In total it takes a minimum of five weeks to get into court after the tenants fails to pay their rent.

If you are evicting a tenant for no cause, such as in cases were the tenant is month to month, it takes longer to get into Court. The tenant is entitled to a thirty day notice to quit, which must be served before the next rental period. So for example if you want to serve a tenant on April 1 to vacate by May 1 the tenant must be served no later than March 31. Thereafter it is similar to the time line above and takes about an additional three weeks to get into court. In total in no fault types of eviction it takes a minimum of about seven weeks to get into court or more, depending on when the Notice to Quit is served.

Choosing the proper Notice to Quit and strict adherence to the Court filing procedure is critical to having your case heard in a timely manner.  Any error could cause you to restart the process and double time necessary to evict your tenant.   For assistance with your Landlord/Tenant matter, please contact us for a free consultation.

Gifts made in 2012 can reduce state estate taxes

Some 22 states have a state estate tax or a state inheritance tax. These taxes are in addition to the federal tax. For some people, it’s possible to reduce or eliminate these state taxes by making gifts before the end of 2012.

Ordinarily, you can give up to $13,000 each year to as many people as you like without paying gift tax. Through the end of 2012, you can also make total lifetime gifts in addition to these amounts of up to $5 million. You won’t have to pay gift tax on these additional lifetime gifts, although they will reduce your estate tax exemption when you die.

That means that if you make gifts before the end of 2012 of up to $5 million (such as, for instance, gifts to trusts that will benefit your children), it will have a neutral effect on your federal estate tax – your estate won’t owe more or less as a result.

By making lifetime gifts rather than bequests in a will, you may be able to lower or even eliminate the amount of state estate taxes that will be owed.

[Read more...]

How to get a better appraisal value for your property

Winter 2012 Real Estate Newsletter

Home appraisers are the unofficial umpires of residential real estate sales, deciding whether offering prices are fair or foul. But much more often than in the past, they’re striking out deals and sending buyers and sellers back to the dugout. Each month, between 10 and 20 percent of real estate agents are seeing accepted offers to buy a home founder or collapse as a result of appraisals that came back too low, according to recent surveys by the National Association of Realtors.

Low appraisals hurt both buyers and sellers. When an appraisal comes back lower than expected, buyers usually can’t qualify for as large a mortgage. That means they have to put up a larger down payment to buy the house – something they often can’t do. As a result, the sale might fall through, or the seller will have to lower the price in order to salvage the deal.

There are ways to improve your chances of a good appraisal. But first, it’s important to know why this problem has arisen lately.

[Read more...]

Ten Financial Scams Targeting the Elderly

Financial scams targeting the elderly have increased significantly over the past decade.  The individuals creating these scams, which sometimes are even members of the senior’s family, target what they view as vulnerable people with access to money.  It is eye opening to see how simple, yet dangerous, these scams can be.  Below is a list put out by the National Council on Aging highlighting ten common financial scams targeting seniors.  This article can be found on their website at:  www.ncoa.org.

1. Health Care/Medicare/Health Insurance Fraud

Every U.S.citizen or permanent resident over age 65 qualifies for Medicare, so there is rarely any need for a scam artist to research what private health insurance company older people have in order to scam them out of some money.

In these types of scams, perpetrators may pose as a Medicare representative to get older people to give them their personal information, or they will provide bogus services for elderly people at makeshift mobile clinics, then use the personal information they provide to bill Medicare and pocket the money. [Read more...]

As a landlord, do I need to provide lead paint disclosure to my tenants?

Additional Information:

I own a three family home in Somerville, MA  and I have a new tenant.  A friend of mine mentioned that he provided a lead paint disclosure to his tenant.  Do I need to do this?

ATTORNEY ANSWER:

Yes.  Federal law requires that property owners, property managers and real estate agents leasing or selling housing built before 1978 provide certain information to tenants and buyers, including: an EPA-approved lead hazard information pamphlet, called “Protect Your Family from Lead in Your Home;” a lead warning statement; statements disclosing any known lead-based paint and/or lead-based paint hazards; and copies of all available records or reports regarding lead-based paint and/or lead-based paint hazards. This information must be provided to tenants and buyers before they enter into leases or purchase and sales agreements. Property owners, property managers and real estate agents equally share responsibility for providing lead disclosure information and must keep copies of records regarding lead disclosures for three years. [Read more...]

If I file for bankruptcy can I transfer title of my car to my sister?

More information: I live here in Malden and I am considering filing for bankruptcy. I own an 2010 Toyota Camry in my own name with no loan. Can I transfer it to my sister to have her name on the title instead of mine?

Answer: No. Transferring an asset with the intent to defraud creditors is fraud. When considering filing for bankruptcy, there are some things you must avoid. Here are some examples by Justin Harelik at Bankrate.com:

Many people find themselves in financial turmoil and finally decide that enough is enough; it’s time to file bankruptcy. The goal is for a fresh start from the monthly burden of trying to pay bills when there is not enough income to do so.

Bankruptcy happens. When it happens to you, try to avoid the following 12 common mistakes.

[Read more...]

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