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Christina Latta Henry

Christina Henry’s Answers

11 total


  • Personal bankruptcy while owning 50% of a business.

    I own 50%of a mobile DJ company i have some money invested in to this company. I am considering filing for Chapter 7 due to personal financial burdens mostly medical. What i am worried about is there is about $10,000.00 worth of equipment that i d...

    Christina’s Answer

    You raise several issues here that are unanswered by the question. 1) Do you have more than 50% total business debt? If so, you may qualify for a business Chapter 7 bankruptcy as opposed to a Chapter 7 consumer bankruptcy - which, depending on your household income, may be to your advantage, 2) Is your partner planning to continue the DJ company and keep paying on the equipment? Are you still remaining a full 50% partner in the DJ Company? Is the company incorporated or is is a partnership without a separate entity status? Any attorney you seek should go through these questions with you even for a personal bankruptcy.

    Christina Henry

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  • Can Sallie Mae take a lien against a mortgage we hold.

    My husband and I co-signed on some "private" student loans for our son. The loans are about to enter into default. My son is unemployed as am I . My husband is still employed and we rent a home. But, we co ow an aartment building with some othe...

    Christina’s Answer

    If you are resigning to let your son's Sallie Mae private loans go into default its my guess that the balance and monthly payment must be unmanageable for your son and probably too high for you and your husband to take over for him. To answer your question, I Sallie Mae could pursue a lawsuit after default and obtain judgment against your son, your husband, and the marital community. Then this judgment could be recorded as a lien against the apartment building, but it will sit behind any existing consensual mortgage.

    Before pursuing anything in court, I would encourage you to go to the website for the Consumer Financial Protection Bureau, www.crpg.org. They have just recently starting giving help through a Private Student Loan Ombudsman, The Ombudsman may be able to help you negotiate a reasonable payment

    If your son were working, I would advise him to seek out a Chapter 13 bankruptcy attorney to file a case that pays Sallie Mae and/or other creditors a reasonable payment for three to five years. Since your husband co-signed the loan, he is a co-debtor on the loan and your son's Chapter 13 bankruptcy would stay any collection actions against you and your husband without the need for your own bankruptcy filing. This solution would avoid the messy issues with family members that could be caused by your own bankruptcy filing to stop a Sallie Mae lawsuit. Your son's Chapter 13 plan payment would be as low as $100 to $200 a month, depending on his income and situation. If he gets a job before Sallie Mae sues both of you, i would recommend filing a Chapter 13.

    If you and your husband would consider the possibility of filing bankruptcy, you would be able to stop collection activities by Sallie Mae without involving your son. Unfortunately I cannot give you specific advice about whether that is a good option without knowing more details about the fair market value of the apartment building, the amount of the mortgage and the percentage of ownership of the other family members. It would also be important to know whether or not you the apartment is held in an LLC or some other form of incorporation.

    In any case, if there is little to no equity in the apartment building - because it is encumbered by a mortgage or some other lien - a chapter 13 bankruptcy filing would solve your problem and not affect your family members. The only fear of a bankruptcy filing is if there is lots of equity in the apartment building.

    I should clarify that a Chapter 13 bankruptcy filing by you or your son will not actually help "discharge" your husband's obligation on the Sallie Mae debt because the private loan is non-dischargeable. So the loan may actual grow during the duration of the Chapter 13 bankruptcy case, but you would be able to stave off collection for up to five years with the hope that you and your son are in a better financial position in the future and that Congress changes the law to fix this private student loan problem.

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  • Should I file chapter 13?

    i have a irs garnishment and am really close to paying off i also have a second garnishment and medical bills and debt collectors that are piling up.Is there something I can do to stop the garnishments and stop the phone calls and fees and set up ...

    Christina’s Answer

    From your post it seems that you are trying to avoid bankruptcy or you would not be struggling with all this pressure from the IRS, garnishments and so forth. Without more information it is hard to give you the advice you want. If you are avoiding bankruptcy because of the credit implications a bankruptcy might cause you, you may be surprised to learn that pursuing the path you have chosen may actually be worse for your credit than a bankruptcy. As a rule of thumb, if it takes you more than two years to settle out debt and pay everything off, the scales tip toward filing a bankruptcy because you will have a reasonable payment plan that prioritizes some debts over others and will stop all collection costs while you are in the plan.

    However, if you have a business, a pending inheritance, a large personal injury lawsuit or some other asset that you are trying to protect, a payment plan or settlement may be an alternative. In any case, a competent attorney should help you work out the options and lay out the choices with the pros and cons of each decision.

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  • Can i convert from a chapter 13 bankruptcy to a chapter 7 bankruptcy

    i am no longer working and i am on social security now and my medical bills have drastically gone up and I am unable to make the payments on my chapter 13 bankruptcy so i was just wondering is if it is possible to convert to a chapter 7 bankruptcy

    Christina’s Answer

    You have a right to convert to Chapter 7 that is almost absolute. The only thing that could prevent a conversion is making too much money. From the facts you present, it seems that a conversion would not pose a problem but everything relates back to your original Chapter 13 filing date. Depending on the date and the circumstances of your situation when you filed a dismissal of the Chapter 13 and the filing of a new Chapter 7 may be a better route. In any case, you should consult with your current Chapter 13 attorney or seek advice from a new attorney before just converting on your own. I have learned from experience that a situation should be examined before just converting.

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  • MERS Mortgages Can't Be Foreclosed - Federal Judge Rules...What about in Washington State?

    Tried to get loan mod through my bank in 2009 several times over a year, was wrongfully denied and gave up. Out of the blue I receive a poor excuse of a modification shipped overnight. It stated there is no other paperwork and I just have to sign ...

    Christina’s Answer

    In WA state the MERS issues is sitll in flux. However, Judge Coughenour ( a federal judge in the District Court) recently certified a question on MERS to the State supreme court. A link to the case is below to see the status of what judges are thinking about MERS in this state.

    http://stopforeclosurefraud.com/2011/03/22/wa-state-judge-puts-hold-on-sj-so-called-beneficiaries-like-mers-pending-consumer-protection-act-outcome-bain-v-onewest/

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  • Behind On Hoa, Lien Place.....

    Now they are threatning foreclosure. What woudl be the benefit of foreclosing if i am underwater. Does the HOA get paid before the mortgage lender? I am considering just filing bankruptcy as this seems the only way to get on a repayment plan. I wa...

    Christina’s Answer

    HOA dues are big problem the laws in WA state are pro condo board. What this means is that Bankruptcy may or may not solve your issues with the HOA. In a foreclosure, if the 1st mortgage lender forecloses the HOA will get a 6 month payment of HOA dues above the mortgage - but you are responsible for all the remaining HOA dues if there is more than a 6 month delinquency. If you file bankruptcy after the foreclosure, the HOA dues will be discharged. The tricky situation is where you file bankruptcy before the property has foreclosed. In that situation, you will still be liable to pay the HOA dues until the property forecloses. In some cases, it could take over a year. I have many clients who are living in their condos paying only the condo dues and just waiting for the 1st mortgage to foreclose. Its complicated and you need a bankruptcy attorney that understands the issues, but the HOA does not just go away.

    One other caveat. When the HOA files its own foreclosure, the HOA dues will get paid in full.. however this usually only happens when there is equity in the property.

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  • What are the implications of having a creditor report 'account paid in full for less than the full balance' to the credit bureau

    My home was foreclosed last month by the 1st loan. My Home Equity Loan lender (Wells Fargo) has agreed to accept 20% of current payoff balance as a settlement and said that the reamaining balance of the obligation will be forgiven and my account w...

    Christina’s Answer

    Paying off your second mortgage will affect your credit report. As the prior attorney said, the actual credit hit is unknown but the mark will be on your credit report for 7 years from the date of the settlement. The good thing is that there will not be any future negative credit marks concerning this debt. Right now, every month that goes by without payment is generating a negative mark on your credit. Also, under Washington law, you would be looking over your shoulder for 6 years from the date of last payment, because they could sue you. That alone is the reason to settle regardless of the credit impact. Lastly, if this was your home loan, there is a possibility that a settlement of this debt will not generate a 1099 for forgiveness of debt because there was a provision in the Dodd-Frank bill that extended the Bush tax exemption for short sales on homes. You may also qualify as insolvent under the tax code to avoid the tax. This was not a short sale so you will have to discuss the tax implications with your CPA because I am not sure if it applies on settlements of 2nd mortgages after a foreclosure.

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  • Adding debts and getting married before chapter 13 is discharged.

    I filed a chapter 13 twoyears ago in Washington state. It is set to discharge May of 2012. I have recently been diagnosed with a medical condition and I need to have a very expensive surgery. My medical insurance is horrible and will still end u...

    Christina’s Answer

    If you are certain that you will incur new debt from the medical procedure, you don't want to complete your chapter 13 and get a discharge. You would be better off dismissing and re-filing if that is possible, however, getting married may put you in a new income bracket that may make bankruptcy more difficult. Since you are already in a Chapter 13, ask your current attorney for some help. Your situation should be analyzed in detail before the appropriate advice can be given.

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  • Help! Creditors are coming after me for debt my ex-husband incurred in my name!

    My ex-husband incurred debt in my name during our separation and after our divorce was finalized. Also, my ex-husband decided to declare me as a dependent without my knowledge after the divorce was finalized. I don't have the money to take him to ...

    Christina’s Answer

    This is the worst kind of debt. Washington is a community property state which means that debt is community debt. Even if the state court awarded him the debt in a divorce, since the cards are still open in your name, the credit cards will look to you to pay. You may have a claim to sue him in state court to enforce the divorce decree and argue that he made the charges after the divorce, etc.. but as long as your name is still on the credit cards, the credit card companies will hold you responsible. I agree that bankruptcy may be your best choice. Consider it part of the divorce and be done!

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  • Law firm garnished bank account, under WA debtor creditor law should i have been served or given notice

    I had money taken out of my bank account from (law firm name omitted) on Friday, August 1st for 1,167 dollars. I had been paying them from garnishments from my paycheck. They didn't want to do that anymore. I don't have any money whatsoever in ...

    Christina’s Answer

    They do have the ability to garnish wages and from your bank accounts... How much do you owe total? If you owe much more, they may continue to garnish and it will never. It sounds like you are being forced into a bankruptcy.

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