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Mohammad Ahmed Faruqui

Mohammad Faruqui’s Answers

100 total


  • Do mortgage companies have the right to harass customers who are not delinquent and not facing foreclosure?

    I have two mortgages and I'm current with both. I make my payments within the time frame before late charges are assessed due to my payroll schedule; and I have not missed a monthly payment in two years I have been in my home. However, my 2nd mo...

    Mohammad’s Answer

    Write them a stern letter telling them to stop harassing you, especially since you are current. Certified mail. Make sure you send it to the correct address since some lenders have 40 different addresses. If they continue to harass, look for an attorney who specializes in Fair Debt Collection Practices Act, Fair Consumer Credit Report Act and other related laws. Write a letter to the U.S. Office of the Comptroller explaining the situation, and an identical one to the Florida Attorney General's Office.

    Why should they leave nasty messages if you're current? Doesn't make sense.

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  • Had a chapter 7 discharge of mortgage. Does wait time for new mtg. start from discharge or when bank gets around to taking title

    What counts? The discharge date from which I no longer owe the note - or when the bank finally feels like processing a foreclosure. Double Jeopardy? My credit already took a big hit from the BK. Have now built it back up. I'm planning on a new mtg...

    Mohammad’s Answer

    If you are still incurring HOA fees and are worried that the lender still has not taken the property, ask your attorney about filing a "Motion to Compel Possession or Transfer of Title." The purpose of the motion is to get a court order forcing the lender to finish the foreclosure, take the house, and transfer the title on time.

    This is not a well-established motion nor is it routine. A few judges might grant it. Here's why some homeowners may want to force the bank to take the hous:

    1) Around summer 2009 in South Florida, a homeowner surrendered his property in bankruptcy and moved out. Bank still didn't foreclose even after bankruptcy discharge. Neighborhood child invaded the backyard, drowned in the swimming pool and died. Homeowner was liable for the death because title was not yet transferred. Homeowner cannot discharge himself of that liability obligation because he already used up his bankruptcy.

    2) You may still be liable for property taxes (in addition to HOA fees) until the transfer of title.

    3) You may be interested in moving on, and this house might be blocking your way.

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  • Umemployed with $17,000 in CC debt that I'm having trouble paying. Is filing chapter 7 my best solution?

    I lost my job March of this year, my house was sold in a short sale last month. I have $17,000 in cc debt, unemployment benefit of $1050 per month, with no other resources. I'm actively looking for a job but I'm in non-profit fundrasing and it's d...

    Mohammad’s Answer

    I partly agree with Mr. Hankins. What if you incur new credit card debts while you're still unemployed? There's no telling how long you'll be unemployed, and at this time you might have to take whatever job you can get. You can only do one Chapter 7 bankruptcy in 8 years.

    On the other hand, if no job prospects are out there and you need to start your own business... you have old debt over your head.

    First figure out what will be your next step. New job? or start a business?

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  • I worked for Jackson Hewitt for the past 10 years, this year I opened my own tax office, can I say formerly of in my ad?

    I want to say formerly of Jackson Hewitt Tax Service on my advertising post card. Can I do that with out causing trouble?

    Mohammad’s Answer

    As long as Jackson-Hewitt does not prohibit you from nominative use. Look at your old employment contracts.

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  • (FL) Filed Chapter 7 BK & was discharged in June 09. Now I receive "Motion for summary final judgement of foreclosure & taxation

    (Florida) I filed Chapter 7 BK & it was discharged in June 09. In it I included a piece of property that I was way upside down on. My business slowed WAY down, wife had a baby and could not work, so I filed to protect my self and my fam., or so I ...

    Mohammad’s Answer

    You usually have two options in a Chapter 7 Bankruptcy when it comes to your house - A) Surrender the house and get the mortgage discharged or B) Reaffirm the debt to keep the house.

    In Chapter 7 bankruptcy, you do NOT get to discharge the mortgage AND keep the house. That's two bites to the apple. At best you get a delay in the foreclosure by several months so you can put your life back together and get a fresh start, and at the same time discharge your debts.

    The purpose of a Chapter 7 bankruptcy is to discharge all your debts in exchange for liquidation (giving up) some or all of those assets that are not exempt. Even though your home may be a homestead property, it is not exempt from the mortgage because the mortgage was for the purchase of the house.

    Please do not get the false impression that a Chapter 7 bankruptcy was supposed to save your house. It only delayed the inevitable, but at the same time discharged you of your debt obligations. You are lucky. Countless people lost their homes to foreclosure but did not do a bankruptcy, and there is a deficiency judgment hanging over them for the next 10 to 20 years. Some people may get garnished on those deficiency judgments.

    In a Chapter 13 payment plan bankruptcy, you would have been able to save your house but you would still be paying your mortgage, and you would have to have steady income to do it successfully.

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  • I am filing for bankruptcy in Florida. Can they keep my tax refund for this year? Should I wait to file after my taxes?

    I am afraid that if my case is in court before December 31, 2009 that when I file for taxes in January2010 that I will not be able to get my refund and that the state will keep that. I need to find out what are the risks and if I should wait until...

    Mohammad’s Answer

    Since you are filing a Chapter 7 bankruptcy, the attorney fee is capped unless your case is complex enough that the court grants your attorney's motion for more fees.

    With that being said, whether the trustee is entitled to seize your tax refund or not really depends on "how much you owe in unsecured debts" versus "how much non-exempt properties" you own. Since you are not a homeowner and since you are a Florida resident, your exemption limits for personal property increase from $1,000 to $4,000. This means that your clothes, furniture, kitchenware, jewelry, tv, electronics and any other personal property including anticipated tax refund are more likely to fall within the exemption limit..... unless the total value of all your personal properties are more than $4,000. So this totally depends on your situation.

    Bear in mind that if you have some other property that you are willing to give up, and is worth enough that the trustee is willing to take so he can liquidate it, then the trustee will let you keep your tax refund. But assuming that your personal properties exceed the value of $4,000, and assuming that your tax refund will be about $2,500.... What do you own that could sell for $2,500? Is it a diamond ring or an expensive watch? Would you rather keep that and give up the tax refund? Or would you rather keep the tax refund and give up the watch? You will have to give up something in EXCHANGE for a bankruptcy discharge!!!!

    Also, typical Chapter 7 bankruptcy cases last about 3 to 4 months? If you file this month and have the 341 meeting by December, you might get your discharge by February or March. This is way before you even file your tax returns, so I'm not sure why you are so concerned about timing.

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  • Can a judgement be turned into a lien when it was orginally included in a CH7 bankruptcy?

    I filed CH7 bankruptcy in 07/09, with Citibank listed as one of my creditors. Now I have been informed that they are going to turn their previously filed judgements into a lien on property. My house was not included in my bankruptcy. Can they do t...

    Mohammad’s Answer

    Not enough pertinent information. You did not state whether your house has homestead status. You did not state whether the judgments are related to your home as a mortgage, construction loan, home improvement loan, etc.

    If your house is a homestead, and if your judgments are not related to the purchase of the house, improvement of the house or taxes owed on the house, then Citi cannot file a lien against your house... as long as it remains to be your homestead. The minute it loses homestead status, the house is fair game. There are other properties that are protected as long as you're a Florida resident, such as 401(k), IRAs and so on. The list is long. In this scenario, it doesn't matter if the house was not included in the Ch 7 bankruptcy.

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  • Help on Form 982 - CH7 personal bankruptcy discharged; received 1099-C on credit debt.

    I have searched all over the web, read the IRS publications, and am still totally confused. I contacted my BK attorney and they said not to file the 982 form but everything I have read says to do it. I should not have received these forms as the ...

    Mohammad’s Answer

    There is not enough precise information. When was the Ch 7 filed and when was the discharge? Last week or a couple of years ago?

    I am unclear as to whether your 1099's were issued for being paid as an independent contractor or as a pensioner, or whether your 1099's were issued for forgiveness of debt.

    If for forgiveness of debt, was the debt forgiven before the bankruptcy petition? Or was it new debt after a bankruptcy discharge a few years ago, and you were forgiven of those post-discharge debts?

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  • We are having trouble getting a payoff amount from the lenders attorney

    We are in pre-foreclosure..no summary judgement against us, this is not a short sale and we have a pre-approved buyer. We are set to close in 3 weeks. I have twice requested a payoff amount and have yet to receive. Spoke to lender customer service...

    Mohammad’s Answer

    Your attorney will literally have to do battle to get a payoff amount. Three weeks is cutting it close.

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  • What happens if I already filed chapter 7 in 2004? What can they do just go back and garnish my wages?

    I went through a divorce in 2008 with my ex-wife. We had a business together and I shut it down. We were only married for 6months then we seperated. Now she is wanting me to pay for her credit cards that were hers before we ever got married they ...

    Mohammad’s Answer

    1) Ask your bankruptcy lawyer if you might be able to get a modification of the chapter 13 plan. But bear in mind that you can only get it if there's been a substantial change in your financial circumstances since the time you filed the original 13 plan.

    2) Unless you're a co-signor to your ex-wife's credit card, you are not obligated to pay her credit cards.

    3) You must act quickly. If you default on your 13 plan, then the trustee will move to dismiss your bankruptcy case.

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