Hello, this is Jeff Kelly. And in this podcast, I would like to address a lot of fears that people have about losing their home during this Coronavirus pandemic. Let me just say this, I don’t believe there’s going to be a flood of foreclosures that are going to be caused by this. and I would like to explain why. Number one, the mortgage industry is not super interested in killing the United States real estate market, which is what would happen if every single person who missed a payment in April got foreclosed on. So from talking to clients and from talking to other bankruptcy attorneys, it’s my understanding, then in most cases, the mortgage companies are willing to defer up to about four months of payments. Now the problem and challenges at the end of those four months, they want their money back they want all those payments made. So I’m guessing that when we get to that point, after the pandemic is hopefully over or subsided, or maybe the quarantine will be modified to get most people back to work.
I believe that the mortgage industry is going to be doing a lot of loan modifications. Again, they there don’t want to kill the entire United States real estate industry, which they would do if they foreclosed on everyone. So I think there’s going to be a lot of loan modifications. But for those people who can’t get a loan modification, the people who are truly in a pickle, Chapter 13 might be a good option for catching up those urges.
So, I would like to talk about two different hypothetical here, hypothetical situations here, one where chapter 10 would be a good option and then to give you another illustration of where it would not be a good option.
So let’s start with a good one first. Let’s say you have somebody they’ve been out of work because of Corona. Six months goes by mortgage company is not bending the foreclosure process has started, and this person files chapter 13 because now they’re back at work. Now the key is they’re back at work, and so we can take the six month arrearages and we can spread it out, over, you know, up to a five year period.
Now, contrast that with a different situation. Let’s say somebody’s six months behind on work, and nobody in the household is working, there’s no source of income. Chapter 13 is not going to work to help save that house. You’ve got to have income in order to be able to pay back those arrears to save it. Now, when is it too late? When is the house gone? And the answer is if in Georgia after is illegally foreclosed.
So, I want to talk a little bit about the foreclosure process and how that works. In most cases, a mortgage company is going to send you a certified letter about six weeks before the foreclosure takes place. Under Georgia law, they have to advertise your house for four consecutive weeks before the foreclosure date. Foreclosures in Georgia typically take place on the first Tuesday of every month. So what that means is, for example, Today is April the 20th 2020. So what that means is, if they wanted to start the foreclosure process against you immediately, they’ve already missed advertising for the month of April. So foreclosure in May is out. So what would have to happen is they would advertise your house for the entire month of May, and then foreclose the first Tuesday of June.
If you’ve got any questions about your situation is chapter 13 a good option? Give us a Call at 770-881-8449. It’s a free consultation. It is a no brainer. It is smart to and it’s just the obvious smart choice to explore all of your options. If you get a chance, check out my website, www.kellycanhelp.com. We’ve got a lot of blog posts there. And also I’ve written a book on chapter 13 and chapter 7. And you can get a free copy, just go to my website, scroll down to the bottom, type in your email address and boom, we’ll get that delivered to you in your inbox.
Thank you so much for tuning in.
Hello, this is Jeff Kelly and Today is August the 13th 2020. And today I want to talk about, are you legally liable for your spouse’s medical bills just by virtue of the fact that you’re married? And in Georgia as a general rule, the answer to this question is no. Now, this question usually arises when one spouse has suffered an extreme trauma traumatic event, like COVID-19, Corona hospitalization, cancer, diabetes, heart attack, or some other health catastrophe that forces a person to accumulate a large amount of medical debt. Earlier this year, I met with an elderly lady who for purposes of this illustration, we’re going to call her Marjorie Okay, now Marjorie, was about five feet tall, about 95 pounds, married to the same husband for over like 40 years. Supersweet lady worked so hard. And at one point in her life, she had probably at least $300,000 saved up in her 401k when her husband passed away, he had an insurance policy. But what neither one of them ever anticipated, was just the exorbitant through the roof cost of medical treatment. And he had a huge, long battle with cancer and ended up leaving behind this overwhelming mountain of debt. Now what did the sweet lady do? She did honestly what most people do, and she made payments for years and years, until there was no more money left from the 401k and no more money from the life insurance proceeds. This is tragic and horrible on so many levels. Because all of that life insurance and all of that 401k money should ...
Transcript: Hello, this is Georgia bankruptcy attorney, Jeff Kelly and this evening I am going to talk about a motion for relief. Okay, if you are in an active chapter 13 case, and you receive a motion for relief, as a general rule, this is not a good thing. Let me tell you why. Let’s say you are in a chapter 13 and you are making payments on your house, but you know, hours get cut back at work, maybe some type of emergency pops up out of nowhere and you miss a few payments. Well, the creditor is going to respond by filing a motion for relief. Basically, a motion for relief from the automatic stay is a request from a creditor to the bankruptcy court for permission to take back collateral. In other words, if the creditor has rights to your house, they want permission to get out of bankruptcy court and start foreclosure. proceedings. Oftentimes we’ll have a client, they’ll come in and they say, Well, you know, I’m not sure I buy all this stuff about how chapter 13 protects you because I had a friend who filed, but they still lost their house. How does that happen? Well, here’s how it happens. Somebody files chapter 13. They put the IRS in the plan, and all they have to do is make the future mortgage payments. But like I said earlier, sometimes things happen. And when you miss ...
Transcript: Intro Speaker: It’s time for KellyCanHelp hosted by Jeff Kelly, Attorney at Law with the Law office of Jeffrey B. Kelly. And now here’s Jeff Kelly. Jeff Kelly: Go Alright, ladies and gentlemen, we’ve got a fun guest today on the radio show. Lee Treadaway, somebody I used to work with many many many years ago. And Lee I just love that story. many months ago when I used to work at Fuller McKay. And and before I ever met you, I felt like I knew you because Ken Fuller would say that he’d go shopping for groceries at the old Piggly Wiggly that was over there behind what is now Stanley’s. And I used kana have got hired this boy when he gets out of law school named Lee Treadaway. Every time he went grocery shopping your mother was your fan brother. You got a good mother, don’t you? Lee Treadaway: Absolutely. Absolutely. She. Yes, she stayed after Ken until he really had no choice. But for McKay, those were some fun times. They were they were fun. We all work together. Jeff Kelly: So So now you’re you’re doing elder law. Is that right? Lee Treadaway: Well, I’m doing I’m doing some wills and estates and Okay, trying to focus on Elder Law within that, and also a little bit on special needs trust as well. Jeff Kelly: Yeah. Lee Treadaway: What there’s a lot of overlap in that. Jeff Kelly: Excellent. Excellent. Jeff Kelly: So how many years? How many years you’ve been practicing now? It’s been a while? Lee Treadaway: Yeah, let’s see. Um, gosh, I Lee Treadaway: I became a member ...