Bad credit is the norm for many people these days, unfortunately.  There are ways, however, to clean up your credit and raise your credit score.  Have you checked your credit lately?  Many people have incorrect information on their credit reports that is lowering their score.  There are ways to get this misleading information removed and to give your credit score a boost.  Hernandez Law Group has been working with our clients to clean up their credit and the results have been very rewarding.  We have had several clients who could not get qualified for a home loan but after working with them they were able to get their credit cleaned up and were qualified to purchase a home.  If you need help with your credit, give us a call!

In early May another on of our clients was offered a principal balance reduction on their first mortgage from Ocwen of over $100,000.  This client lives in Elk Grove, California where the real estate market is improving steadily. It is important for homeowners struggling with high mortgage payments to know that, even though prices are improving, there are still opportunities for excellent loan modification available with many lenders. If you are struggling to make your mortgage payment and interested in learning about the quality of loan modification currently being offered by your lender, consider calling our office for a free consultation with one of our attorneys. We track all loan modification received by our clients, so we can give you a good idea of the likely outcome of your loan modification if you apply. All first consultations are free!

Bank of America just approved a permanent Department of Justice modification for my client that not only lowered her interest rate but also forgave a significant amount of principal.  Her payment dropped from around $1,600 a month to $1,123 which includes principal, interest, taxes and insurance.  The interest rate went from 4.875% to 3.625% for the remaining 275 month term.  The principal balance was $384,028 but Bank of America forgave $174,385 bringing the principal balance down to $209,643.  The client is very happy because now she can afford to stay in her home and is no longer facing foreclosure!

If you answered “yes” to this question you may be entitled to monetary compensation.   In January 2013 an agreement was reached between 13 mortgage servicers and federal banking regulators that ended the Independent Foreclosure Review.  What this means to you is that you may be getting a check in the mail.   We have seen checks in amounts of $300 to $1,000.  The checks will be coming from Rust Consulting so don’t throw out that envelope thinking it is junk mail!  If you want to see if your servicer is part of this agreement you can check it out here:

www.independentforeclosurereview.com   or call 888-952-9105

One of the hot topics of 2013 is the U.S. Supreme Court’s anticipated determination of the constitutionality of the Defense of Marriage Act.   The Defense of Marriage Act (“DOMA”) defines marriage in federal law as a union between opposite sex persons only. 1 USC Sec. 7. It prevents the filing of joint bankruptcy petitions by same sex partners because the debtors are not “spouses” under DOMA.  Joint bankruptcy cases are filed pursuant to 11 USC Sec. 302(a), which states “a joint case under a chapter of this title is commenced by the filing with the bankruptcy court of a single petition…by an individual that may be a debtor under such chapter and such individual’s spouse.”  Therefore, by strictly reading these two descriptions in conjunction, same sex couples are prevented from filing a joint bankruptcy petition.

One of the earliest bankruptcy cases addressing this issue was filed in the Western District of Washington (In re Kandu, 315 B.R. 123 (Bankr. W.D. Wa 2004).  A same-sex couple filed a joint Chapter 7 bankruptcy petition, but was quickly met with a court order to “show cause for improper joint filing of unmarried individuals.”  Although the couple zealously advocated for the right to file jointly, the Court held that DOMA should be strictly applied to this case as it does not violate either the Due Process or Equal Protection Clause of the 5th Amendment.  The Debtors were forced to either dismiss their case or bifurcate their case into two before the dismissal date.

However, there are new legal developments aside from the U.S. Supreme Court’s review.   The leading Ninth Circuit case is in In re Balas, 449 B.R. 2011 (Bankr. CD CA 2011). The bankruptcy court refused to dismiss a joint petition filed by two same sex partners, finding DOMA unconstitutional.  In the end, the Court found that DOMA violated the equal protection rights of the Debtors as recognized under the Due Process Clause of the 5th Amendment.  Therefore, this same-sex couple was given a discharge of their debts after the filing of their joint bankruptcy petition.

One of the most interesting facts about the Balas case is that 20 bankruptcy judges in the Central District of California signed the order approving the joint filing of a same-sex couple!  This is highly unusual.

Although this is a major statement by the Bankruptcy Court, there are no appellate decisions that consider the matter and the cases above are not strong precedent for other judges to follow.   So we’re all waiting to see how the U.S. Supreme Court’s decision related to DOMA effects same-sex couple’s rights under the Bankruptcy Code.

In our law firm, all bankruptcy cases are charged on a flat-fee basis. This means that you are not charged an hourly rate every time you call or come in to the office. Our law firm bases its prices on the attorney time a case will take, and the complexity of the case. When you come in to the office, an attorney will evaluate our circumstances and give you a firm price quote. All of our cases start with only $250 down.

Be wary of law firms that charge very low fees. If it sounds too good to be true, it probably is! Our firm makes sure that every client gets continuous attorney attention throughout the case. You are certain to meet with a licensed attorney at least three times when you work with our office: at the initial intake, at the time that you review and approve your case for filing, and at the court appearance. Many law firms have paralegals and clerks deal with the clients and the client never even meets the attorney until the court hearing. If you are paying law firm prices, you should have a relationship with your attorney.

Although there is not one set price for every case, we do try to be transparent about our fees. The cost of most Chapter 7 bankruptcy cases with our firm is usually between $1,500 and $3,000. Low income families and the unemployed are almost always quoted the $1,500 fee unless there are other complicating factors. If the cost of your case is more than $1,500, our attorneys will explain why. Chapter 13 clients usually pay between $3,500 and $5,000.

Our office begins all bankruptcy work with only $250 down. We offer affordable monthly payment plans to make attorney services more affordable to our clients. If you are trying to determine the fair cost of your case, bear in mind that people who own their own business or are self employed often have more complicated cases than people who are salaried wage earners. Also, if you own more than one home, are a landlord with rental property, or need assistance preparing bookkeeping records, your case will likely cost more than the base price. Discounts for the military and the elderly are also available.

We offer a free one hour consultation for all new clients to come in and learn about their bankruptcy qualifications. There is no obligation to hire the law firm at that consultation. In that appointment, our attorneys will quote you a price and you can decide based on that meeting if it makes sense for you to hire our firm to represent you.

If you lost your home to foreclosure between January 1, 2008 and December 31, 2011 you may be eligible for a cash settlement.  The Department of Justice has reached an agreement with Ally/GMAC, Bank of America, Citi, JP Morgan/Chase and Wells Fargo to compensate distressed borrowers to the tune of roughly $25 billion.   If you are part of this group all you need to do is send an email to:

administrator@nationalmortgagesettlement.com   or Call 866-430-8358

Be sure to completely explain what happened in detail, with dates and your account number.

Here is a recommendation you can use from me:

I am grateful to the Law office of Kristy Hernandez in Newark. Special thanks to Waqas and Cara. We used their services for debt settlement negotiation and for short sales. The debt settlement saved us an enormous amount of money, especially on the HELOC. We also got huge debt forgiveness on the short sales. Everything went smoothly. The prices were reasonable.

Regarding trust, here are some reasons I trust them. First we had great results at a reasonable price. Thank you! Second, the last time I checked they had an A+ rating with the Better Business Bureau. Third, there is this: The first go around, they suggested we go to a bankruptcy lawyer instead. That did not work, so a year later we tried the Kristy Hernandez law office again, and this time they were able to help us. That made me believe that they were honest–only taking our money if they can help us.

Thanks Waqas and Cara!

Thank you

Eric