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December 2017 Archives

Homeowners pay more credit card interest than renters

For many Massachusetts residents, owning their own home is an important part of achieving the American Dream. However, a recent study from the consumer finance company NerdWallet suggests that house, apartment and condominium buyers run up far higher credit card bills than those who rent their homes. While homeowners are usually able to deduct mortgage interest and certain other expenses on their income tax returns, they also pay almost twice as much each year in revolving debt interest, according to the study.

Changes to bankruptcy rules

Massachusetts creditors and debtors alike should know about the modifications made to the Federal Rules of Bankruptcy Procedure. The changes, which became effective on Dec. 1, 2017, pertain to Chapter 13 bankruptcy cases and can impact creditors who have judgment liens and secured and unsecured claims against the debtors in bankruptcy.

National Chapter 13 form not a big hit

Although a new national Chapter 13 plan form went into effect on Dec. 1, Massachusetts residents may not have to worry about using it. This is because 81 of the 94 judicial districts decided that they aren't going to use the national form. Instead, they are going to use a local form. This is allowable under Rule 3015, which states that the official form must be used unless a local one has been established.

Changes in bankruptcy rules

Massachusetts residents who are filing for Chapter 13 bankruptcy should be aware of the new bankruptcy rules that became effective on December 1, 2017. The changes include modifications to federal rules regarding proper bankruptcy procedure and a new plan form.

Steps to getting a mortgage after bankruptcy

Bankruptcy does not permanently prevent people in Massachusetts from getting a home mortgage. The passage of time and a diligent effort to rebuild credit could allow someone to finance a home purchase. As a general rule, people need to wait two to four years after bankruptcy before expecting a lender to even consider a mortgage application. The waiting period begins from the date of bankruptcy discharge or dismissal.