TSA Guidelines for CBD Oil 2022

Cannabidiol (CBD) oil is a product used today by many people for many different reasons. For some people who are facing serious and significant medical conditions, CBD oil is quite literally a life saver.

Each state in America has different rules and regulations when it comes to who is allowed to possess and use CBD oil, where it can be purchased and where it can be transported. If you’re flying on a plane within the U.S., it’s important to understand what you are and aren’t allowed to do, so that you abide by all the laws pertaining to CBD oil.

Here are the TSA guidelines for CBD oil in 2022.

The Federal Status of CBD

The 2018 Farm Bill made all CBD oil that is derived from hemp legal on the federal level. CBD oil that comes from marijuana is still considered illegal on the federal level.

You can tell the difference between the two by reading the label on the product. Any CBD product that contains 0.3% or less of THC is considered federally legal. This means that as long as the product you are transporting contains less than this amount, you will not be subject to prosecution on a federal level. 

State laws

Another thing to consider is what the state laws are in regard to CBD. Some states may have stricter standards, while others might be more lenient. These are the laws that will come into play on a local basis. 

For example, if you get through security at your destination, you should be following the local CBD laws of the state(s) you’ll be traveling to or through. Keep in mind that these laws may be different than the ones that dictated what you were allowed to purchase, and how much you were allowed to possess, in the state from which you came.

Airport rules

Airports need to abide by local laws in the jurisdictions in which they reside. Some airports are located in cities that have more liberal policies in regard to CBD than the rest of the state, and the opposite also may be true. 

So, if you plan to travel with CBD oil, it’s important to research not only the states’ laws but also the laws of the jurisdictions of where the airports are located. Keep in mind, too, that the airports in some cities are not always located within the confines of the city.

Also keep in mind that if you are traveling internationally, you’ll need to research the laws of the foreign countries you’re traveling to. CBD is actually illegal in a number of countries.

Does the TSA Check for CBD?    

As the Transportation Security Administration, the TSA is focused more on overall security of planes and passengers. The screening procedures used, then, attempt to identify threats to the passengers and overall aviation. This means that TSA won’t specifically be looking for CBD through security checkpoints.

Can Airport Scanners Detect CBD?

Airport scanners are not designed to detect CBD. They are used to see through bags and clothing for threats to safety.

What Happens if TSA Finds CBD on You at the Airport?

Even though TSA won’t be specifically searching for CBD through security checkpoints, they are required to report a suspected violation to local, state or federal authorities. If, for instance, a TSA official believes you are carrying a CBD product that is illegal on either a local, state or federal level, they may force you to speak with law enforcement officials.

This is why it’s important to know all the local and federal laws in regard to the specific product you want to transport. It’s also important that you are able to prove what the product you are transporting is. If you can prove that you’re meeting all applicable laws, you should have no problem in the end.

Can You Fly with CBD Oil in Carry-On?

Yes, you can fly with CBD oil in your carry-on luggage. If you choose to do so, make sure that it’s properly packed so that it doesn’t shatter and spill. Make sure that the original label is on it, and that it lists the ingredients in case someone asks you what it is. Finally, make sure it meets the regulations for liquids, which is typically 3 ounces.

Can I Fly with CBD in My Checked Bag? 

   

You can also fly with CBD oil in your checked bag. The same basic rules apply to a carry-on bag. Pack it in a safe and secure way so that it doesn’t break. Make sure that an airport official can easily access it if need be, and that you have all the pertinent information to prove you’re not breaking any laws.

You won’t need to abide by the limit on liquids if you’re flying with CBD in your checked bag.

Bringing Different Types of CBD on a Plane

CBD comes in a number of different forms. It’s important to understand how each form applies to flying on a plane with it.

CBD Oil

CBD oil is one of the most common forms. Because it is a liquid, it will need to conform to TSA’s standards if you are keeping it in your carry-on luggage. If it exceeds that limit, it can be confiscated.

CBD Tinctures

Since a CBD tincture is alcohol-based, it’s a liquid that will be subject to TSA’s limits and guidelines. Further, because of its alcoholic nature, you may have a much tougher time flying with it than you would other forms of CBD.

CBD Creams

CBD creams may also be subject to the above TSA limits for liquids. To be safe, you should either place it in your checked luggage or ensure it doesn’t exceed the limit.

CBD Vapes

CBD vapes fit into the same category as CBD Oil in terms of flying. It should meet the TSA limits for carry-on luggage.

CBD Gummies (Edibles)

You’ll have more leeway with CBD edibles because they are not liquid. As such, you won’t be subject to the same limits as the liquid or cream versions of the product. This is why many people prefer to fly with gummies if they want to bring CBD with them.

CBD Drinks

As a liquid, CBD drinks are subject to TSA’s limit. Because most individual drinks are well above this limit, it’s often difficult to travel with CBD drinks. You may want to consider a different form if you want to bring CBD with you on a plane.

CBD Flower

Flying with CBD flower can sometimes be a tricky situation, if only because the product itself looks like an illicit drug. TSA agents who aren’t well-versed on CBD flower may give you problems if they find it in your luggage, even if you aren’t breaking any laws. 

 

What Are Some Alternatives To Foreclosure?

If a homeowner falls behind on mortgage payments and cannot catch up, the lender may take back the home. The bank can take the property away from the homeowner if they do not pay back the money they owe. This is called foreclosing the property.

A foreclosure is when a lender, especially a mortgage lender, takes back the property being used as collateral on a loan after payments have not been made or if the borrower defaults.

Fortunately, there are several alternatives to foreclosure that may be available to you, depending on your situation. Here we are going to discuss a few of the more common alternatives to foreclosure.

Forbearance

Forbearance refers to stopping the exercise of a statutory right, such as the pursuit of a debt. This option allows you time to make up for any shortfalls while temporarily suspending payments. If you can agree to the conditions and fulfill them, the lender should not pursue foreclosure against you.

For example, your typical mortgage payment might be $500 monthly. With a lump-sum forbearance plan, your first payment could be anywhere from $400-$700. Each month following that until you’re caught up on payments would then be $800 ($500+$300). Most forbearance plans last from three to six months.

Repayment plans

If you have fallen behind on payments, you can negotiate a repayment plan with the lender that will allow you to catch up. The lender will add a percent of the overdue amount to each of your monthly payments for some time.

Loan modification

A mortgage loan modification is often the most popular alternative to foreclosure. This is a long-term solution for a homeowner who cannot make the required installments.

A loan modification is when you and the mortgage company agree to change the terms of your loan. This can make it so you have to pay over a longer period of time, which makes the monthly payment amount lower.

 Loan modifications can also reduce the mortgage interest rate, and principal balance and even defer a portion of the principal balance to the end of the loan.  The purpose of this is to give the borrower a second chance to honor the mortgage loan agreement since the homeowner suffered a previous or even ongoing hardship.

Quitclaim deed 

By signing a quitclaim deed, you give up any ownership interest in a specific piece of property. The buyer accepts all risks by accepting such a deed. Such a document makes no warranties regarding the title; rather, it transfers whatever ownership rights the donor has to the buyer.  This option, however, does not alleviate the homeowner/borrower of the personal liability from the mortgage note.

Refinance

Refinancing will have a less harmful impact on your credit report, but it’s something you should do before your lender starts the foreclosure procedure. By the time a bank files a foreclosure, it generally wants you off its books, and your best option is to seek a loan modification.

 

Short sale

A short sale occurs when a borrower sells their property for an amount that is less than the full amount they owe, and it is often used when property values have declined since the mortgage was first taken out.  

The mortgage company needs to approve the final short sale, since the mortgage company is the one taking less than what they are owed.  The borrower will also be responsible for potential tax liability to the IRS for any debt forgiveness associated with the short sale.

 

Deed in lieu

A deed in lieu of foreclosure occurs when the borrower deeds the property back to the investor or government instead of going through with a foreclosure. This relinquishes their obligations under the mortgage.

Although you may be forced to sell your home due to a mortgage default, it is typically preferable to foreclosure because of the financial and psychological strain that comes with it. It has a lesser effect on your credit rating.

Chapter 13 Bankruptcy

By filing for bankruptcy you can stop a foreclosure in its tracks by invoking the automatic stay.  If the mortgage company forecloses on your home anytime after you filed bankruptcy, then they will be required to set aside the foreclosure to make it as if it never happened. 

 

Chapter 13 bankruptcy offers an array of options to assist in reorganizing a person’s debt obligation and while in bankruptcy you can even apply for a loan modification with the assistance of your attorney from start to finish. 

 

There you are. You’ve got a handful of options to stay in your home and keep it from going into foreclosure. You can use these foreclosure alternatives to avoid the negative consequences that come with a foreclosure on your credit report.

FAQ

What is the simplest solution for a foreclosure?

The easiest way to stop a foreclosure is to request the total amount you owe to the mortgage company and pay it. This is called reinstatement.

How can I stop a foreclosure auction immediately?

If a foreclosure sale is scheduled to occur in the next day or so, the best way to stop the sale immediately is by filing for bankruptcy. The automatic stay will stop the foreclosure in its tracks. Once you file for bankruptcy, an “automatic stay” goes into effect.

Can you recover from a foreclosure?

A foreclosure may significantly impact your credit scores, but it is feasible to recover from one. You can begin taking action to repair your credit the moment your house is foreclosed upon.

 

Can A HUD Partial Claim Be Forgiven?

The Federal Housing Administration provides mortgage insurance for single-family houses, multistory dwellings, hospitals, and residential care facilities. The FHA collaborates with authorized lenders in the United States and organizations like the US Department of Housing and Urban Development (HUD) to provide HUD partial claim forgiveness. 

Homeowners might fall behind on their mortgage payments, and these alternatives could assist those who are having difficulty.

What is a HUD partial claim payoff?    

The Federal Housing Administration (FHA) has a program called the partial claim mortgage. This program is designed to help FHA mortgage borrowers reduce their payments and avoid foreclosure.

It’s become increasingly important as lower-income homeowners have struggled to overcome the economic consequences of the COVID-19 epidemic.

A Partial Claim is a zero-interest subordinate lien that will cover part of the amount to be settled and if you fulfill the criteria, a principal deferment.

The leftover amount is tacked onto the first mortgage’s principal loan balance and renewed the term for 30 years (360 months) at a fixed interest rate.

Can you subordinate a HUD lien?

Yes, any government-secured second mortgage should be subordinated using the Subordination Agreement (HUD-92420M). This includes mortgages that are owned by the government, like those used to finance restructuring or notes from Partial Payment of Claim.

Can I refinance with a HUD partial claim? 

 

The answer to the question of whether you can refinance with a HUD partial claim depends on the situation. HUD may allow you to refinance your mortgage with a partial claim, but this is not always possible.

If you have a HUD partial claim loan, you can’t refinance your home until you pay off the loan in full.

If you’re interested in refinancing options, it likely means that your financial situation has improved. If you have the money, you can ask HUD to pay off your home in full. This will usually be done without any early payoff penalties.

Who pays lenders who mortgage borrowers qualify for partial claims?

HUD can help you get partial payments by issuing a zero-interest promissory note.

If the borrower wants to sell or refinance their home, they must pay off the partial claim in addition to the FHA loan.

Borrowers can make payments on a part-sized claim at any time without paying penalties.

Are HUD partial claims interest-free?   

Yes, a “partial claim” is an interest-free loan from HUD to catch up on past-due installments.

A partial claim does not have to be repaid until the first mortgage is paid off, for example when you sell the property. Partial claims are occasionally completed in addition to a loan modification.

Can I sell my home if I have a HUD partial claim?

Yes. Even if you have a HUD partial claim, you can sell your home. The partial claim is treated like a second mortgage in this case, though, which means it must be paid off at the time of the sale in addition to the first mortgage.

Does a partial claim hurt credit?

If you are late on your payments or if you don’t make timely payments, then a partial claim can hurt your credit. Compared to other loans, a partial claim application generally won’t damage your credit as much. It’s usually less harmful to your credit than a foreclosure.

 

FAQ

Does HUD forgive loans?

Unfortunately, FHA is not legally allowed to provide principal forgiveness for any of its insured loans. Depending on your situation, a forbearance may be a good way to get caught up on your payments without incurring additional fees or interest. You should talk to your lender about your options and what type of forbearance may be available to you. With careful planning and communication, forbearance can help you weather financial challenges and remain in your home.

How is a partial claim calculated?

If you do not have the cash to make a full insurance claim and still owe the mortgage on your FHA loan, FHA will pay part of the principal balance as mortgage insurance benefits. It then restates the remaining principal balance of the mortgage under HUD’s supervision.

For HUD to accept a PPC, the mortgagee and the owner must first agree to take on the terms of this Chapter for a partial payment of the insurance claim. The mortgagee must also waive any prepayment and lock-out clauses in the loan.

How long does it take to get a payoff from HUD?

For a Housing and Urban Development payout, it may take up to 6 business days for the application to be processed.

 

Can You Remove A Name From A Mortgage?

If you’re pondering about taking someone’s name off a mortgage, a significant life event is likely unfolding. There are many reasons why you might want to change the name on your mortgage. This could include getting a divorce, splitting up with a partner, or just wanting to give the other person more financial flexibility. But the circumstances are different now than when you first got the mortgage.

Having a co-signer in a mortgage can be helpful. This is because you can use two incomes to find out how much money you can borrow and/or use the credit scores of two people to get a lower interest rate.

When you originally took out the mortgage, it made sense. But now, life has changed and you need to remove someone from the mortgage agreement. Though it’s not simple, here are a few steps that will assist you in getting it done attorneys recommend.

You and your co-borrower may ask the lender for an assumption or modification to remove your name from the mortgage. If the lender refuses to modify the existing loan, your co-borrower will need to refinance the property into a new mortgage.

How do I get my name taken off a mortgage?

 

Lenders are hesitant to remove a borrower’s name from a mortgage. The loan was approved based on each person’s credit score and two sources of income at first.

The fact that both borrowers had a joint income was a major deciding factor in whether or not the bank offered them a home loan.

If you want to get rid of a co-borrower, then it could be beneficial to seek a replacement for the co-borrower who would be assigned the rights and obligations of the mortgage.

Can you remove someone’s name from a mortgage without refinancing?

It’s possible to get a person’s name off of your mortgage without refinancing them. You can get a former co-owner’s name off of the mortgage using either loan assumption or loan modification. Speak to your lender about which strategy would be best for you. Meanwhile, read about four possible solutions.

Loan assumption as a solution

Theoretically, loan assumption is the easiest solution. You contact your lender and let them know you will be taking over the mortgage payments and assuming full responsibility for the debt. This removes your co-borrowerfrom any future obligation regarding the payment of this debt.

The difficulty is that many lenders will refuse to consider a loan assumption. Loans that do accept you may ask for proof that the remaining borrower can afford the payments. Your co-borrower may be required to sign off on the assumption.

Keep in mind that a loan assumption may cost you some money. One percent of the loan amount, plus administrative fees ranging from $250 to $500.

Loan modification to avoid refinancing

A loan modification is an act of changing the terms of your mortgage loan, achieved without having to refinance.

A mortgage loan modification is a technique to lower the borrower’s interest rate or extend their repayment period to make the debt more manageable.

Generally, modification is only possible if you’re experiencing financial difficulties. Nevertheless, some lenders might accept divorce or legal separation as proper justification for a loan modification.

You have the authority to remove names from your mortgage by either contacting your lender or servicer and inquiring about modification, or working with a mortgage lawyer.

Sell your house

If neither borrower can pay the mortgage on their own, the only alternative may be to sell the property.

In many areas of the nation, there is presently a strong seller’s market because housing has been in short supply for some time. Thus, homeowners may be able to get a great offer on their property.

A “short sale” is a property sale in which the net proceeds don’t cover all the liens on the property. This may become necessary if your mortgage debt exceeds the value of your home.

On the other hand, if real estate prices have decreased rather than increased, selling your home could pose more of a challenge — especially if you bought it recently and made only the minimum down payment.

If your mortgage lender sells your house in foreclosure, they can sue you for the deficiency which is the difference between what was owed on the mortgage and what the property sold for. In many cases though, lenders do not pursue the borrowers for this balance.

Although if the mortgage lender does release the borrower from this liability, their credit score as well as their spouse’s will be impacted negatively by a short sale.

Keep the mortgage

Both of you could agree to pay the mortgage. This may work, especially if both people choose to stay in the home. As a result, both individuals have an incentive to keep up with the payments.

However, if you stop making payments, the house could go into foreclosure and your credit score will plummet. If you have to remain joint borrowers with your co-borrower, talk to a lawyer first. A lawyer may be able to help safeguard your finances if your former partner stops paying.

Do I need an attorney to remove my name from a mortgage?

If you are splitting up with your partner and own a property together, you may need a conveyancing solicitor to carry out what is known as a property settlement.

Selling equity, regardless of whether money changes hands, necessitates the changing of paperwork and the deed to your property’s name by an attorney.

It does not necessarily imply that any cash changes hands when one partner’s equity is transferred to another. Couples might decide what value they wish to trade the marital propertyfor themselves.

Equities can also be exchanged for items such as vehicles or housewares. An ex-partner might even agree to have his name removed from the deeds for free.

If a property exchange is being suggested, you should speak with your attorney so that he or she can help you calculate the value of your home’s equity as well as the potential risks involved with such an arrangement.

FAQ

What happens when you have a joint mortgage and split up?

If you and your partner jointly invest in a mortgage, both of you have an equal say over the property. This means that if you are no longer together, each party still has the right to live there. A joint mortgage also implies that you are equally responsible for your mortgage payments. If you have a joint mortgage with someone, each of you has an equal stake in the property. This implies that if you separate, each of you retains the right to live there. It also means that you are equally liable for repayments on your loan.

 

What Does Having A Felony Prevent You From Doing?

If you are convicted of a felony in Michigan, it will have long-lasting effects on your life. Although a felony conviction might make it hard to get specific jobs and lose some civil rights, remember that this does not have to be the end of your life.

There are many ways to overcome the challenges posed by a felony conviction. You can get help from many resources.

You can overcome your conviction by putting in the effort and hard work required.

How do you find work if you have a felony conviction?

Many corporations will instantly reject job applicants because of a felony conviction, but there are methods to work around it. Some firms may make it clear that anyone who applies must have a clean criminal record, but others may be prepared to give you a second chance if you explain your circumstances.

There are steps you can take to increase your chances of getting hired, even if you have a criminal record. First, it’s important to understand the regulations. Many employers are not allowed to ask about your criminal history, and there are laws in place to protect your rights.

Volunteer work can be a great way to show that you’re committed to turning your life around. It can also help you develop new skills and improve your chances of getting hired.

Get training in the field you’re interested in. This will show employers that you’re serious about your chosen career path. Gather references from people who can vouch for your character. Finally, don’t give up. It might take longer to find a job if you have a criminal record, but it’s not impossible.

How can you get a felony expunged from your record in Michigan?

An expungement is a process of removing criminal records of past convictions from one’s public record. The Clean Slate expansion laws make individuals with up to three felonies and unlimited misdemeanors eligible for amnesty, depending on the crime. Some exceptions include assault, weapons offenses, or any felony carrying a life sentence in prison.

To have a felony expunged, apply, and obtain a court-certified order of conviction.

People in Michigan who want their records sealed must go through the state’s expungement process. The application costs $50 and entails about a dozen procedures that include getting fingerprints taken, notarizing the application, and sending copies to prosecutors and law enforcement.

What are some things you can’t do if you have a felony conviction in Michigan?

A felony conviction can also result in an enhanced or extended sentence for a subsequent felony conviction under Michigan Habitual Felony Offender Laws.

A felony conviction prevents you from enlisting in the military. Felons are also not allowed to carry any type of concealed weapon, regardless of its size.

Another consequence is that Michigan does not give liquor or gaming licenses to felons, meaning that they cannot own any business that sells alcohol or gambling permits.

Finally, a person who has been convicted of a felony in Michigan is not eligible to serve as a juror in Michigan Judicial Courts or on a Federal Grand Jury.

FAQ

Can you vote in Michigan if you have a felony conviction?

Felons in different states have varying degrees of voting rights. Depending on the state, felons may or may not be able to vote in elections. In Michigan, a felon has an absolute right to vote unless they are incarcerated in jail or prison at the time of the election.

There are no voting booths in jail. Despite Michigan law, many convicted felons feel they have lost their right to vote as a consequence of their criminal activity, so they do not participate.

All citizens, regardless of their past, are entitled to have a say in our elections. If given the chance, encourage those with felony convictions to vote.

Can you own a gun if you have a felony conviction?

A felony conviction precludes a person from lawfully possessing a firearm under both state and federal law. In Michigan, it is also unlawful to carry a concealed weapon by persons who have been convicted of a felony. Felons may, in certain cases, have their state gun rights restored. Expungement could help you with this as well.

 

Differences Between Pre-foreclosure And Foreclosure

What is the difference between pre-foreclosure and foreclosure? Pre-foreclosure occurs when a homeowner falls behind on mortgage payments and the lender threatens to repossess the home. Foreclosure occurs when the lender sells the home at auction or forecloses through the courts.

Both pre-foreclosure and foreclosure can be stressful for homeowners. In both cases, it is essential to understand your rights and options. If you are facing either situation, you may consider speaking with an attorney.

What is pre-foreclosure?

Pre-foreclosure is the beginning of the process that leads to foreclosure. If you’ve missed mortgage payments but haven’t yet gone through foreclosure proceedings, you’re in pre-foreclosure. You might still be able to avoid losing your home if you act quickly.

A pre-foreclosure sale is one method that, like a short sale, an assumption, or deed-in-lieu, can prevent homeowners from facing foreclosure. However, it should be noted that this option still leads to the loss of home ownership.

What is a short sale?

A short sale is when the lender agrees to take less than they are owed and absolves the lien.  This requires a third-party purchaser to buy the property. Since the lender is accepting less than the actual mortgage balance, the difference is considered forgiven debt by the IRS and results in a taxable event that you will be required to pay income taxes on.

What is an assumption?

When the lender permits a qualified applicant to assume the mortgage, and release the borrower from the mortgage obligations, this is referred to as an assumption.

What is a deed-in-lieu?

A deed in lieu is another way to prevent a foreclosure, in which upon the agreement of the lender and the borrower, the lender accepts a return of the title as payment for the debt.

 

What is a loan modification?

 

A loan modification is when the borrower asks the lender at least 30 days before the scheduled foreclosure sale date to modify the terms of the mortgage to make the borrower current and to also make the payment more affordable.  The borrower will be required to submit an application with supporting documents showing they can afford a modified payment, and the lender will have to provide final approval. 

How does the pre-foreclosure process work?

If you stop making your mortgage payments, your lender might file a notice of default on your property. This is called pre-foreclosure.

The notice of default warns the borrower that the lender is calling the entire balance of the mortgage note due immediately and plans to take back the property if the borrower does not catch up on missed payments.

 

How does a pre-foreclosure happen in Michigan?

To be considered for pre-foreclosure prevention, also known as loss mitigation in Michigan, the borrower must request an application from the Loss Mitigation Dept. of their mortgage servicer.

If the borrower’s financial information shows that they can afford to make their monthly payments, they might be able to find a way for them to stay in their home.

Loss-of-home options must be considered if it appears that the borrower can no longer afford their home. The borrower must explain why they are behind on their payments and provide documentation to support this claim to the Loss Mitigation Department.

What is foreclosure?

Foreclosure is the legal process whereby a person with a mortgage loses their rights to the property they have mortgaged, should they fail to make payment at the specified time or meet other conditions mentioned in their bond or mortgage.

The lender asks the court for permission to sell the property or in Michigan the lender can foreclose on the property by simply advertising the notice of the sale date. The funds obtained from the sale of the property are used to pay off any associated liens in the priority of their recording with the county, including money owed to them.

Not only do foreclosures take a toll on families, but they also have detrimental effects on entire communities. Missed mortgage payments often show up on credit reports and negatively affect borrowers’ abilities to take out short-term loans and even reduce property values for neighboring homes.

What are the disadvantages of foreclosing your house?

Foreclosure can have significant social and emotional consequences for families, who lose their property and are forced to relocate.

It also can result in a black mark on your credit report that will make it difficult to qualify for loans in the future.

The repercussions of foreclosure also linger in surrounding communities. During the default and foreclosure procedure, houses generally deteriorate.

Homes that have been foreclosed upon are often sold at lower prices than other homes in the area, which decreases the value of all properties in the neighborhood.

An increase in the number of homes foreclosing results in a decrease in value for an entire neighborhood. If homes are abandoned during this process, they become prime locations for criminal activity, adding to the negative effects forecasted for the area.

Does pre-foreclosure affect credit score?

There is no special mark on a credit report that indicates that a mortgage is in pre-foreclosure. When the borrower’s mortgage is sold, it has no bearing on their credit scores.

Even though pre-foreclosure is often only initiated after a borrower has missed three mortgage installments in a row, it does happen. This might result in an erosion of the borrower’s credit score.

A single missed loan payment can have a major negative impact on credit scores, and three consecutive missed payments may result in significant damage to credit. This effect is exacerbated if the borrower has previously defaulted on other bills, such as credit card payments or automobile loans.

Does foreclosure affect credit score?

Borrowers who lose their homes to foreclosure or declare bankruptcy may have credit records that are severely damaged, making it more difficult for them to obtain loans in the future.

If you’ve been put in foreclosure as a result of pre-foreclosure, your credit reports will reflect it. Foreclosure has a greater negative influence on your credit scores than missed payments, and it remains on your report for seven years.

Furthermore, these individuals suffer economic damages as a result of the home’s demise.

 

No matter what stage of foreclosure your property is in, an attorney can help you guarantee that agreements with the lender will cover the loan and allow you to avoid pre-foreclosure or foreclosure altogether.

FAQ

How to exit a pre-foreclosure scenario?

If you’re a homeowner who is in danger of foreclosure, don’t fret– there may be some hope for you yet. For instance, one way to avoid going into full-fledged foreclosure is by requesting a loan modification from your lender. This process involves negotiating new and more favorable terms on the mortgage agreement that takes into account the borrower’s current situation. If you need to sell your home quickly, you may want to consider a short sale. This is when you sell the home for less money than what is owed on the loan.

What are the advantages of pre-foreclosure?

Pre-foreclosure means that you still have a chance to save your home. You will need to fix the problems that led to this situation. Lenders are more likely to help borrowers when they are still in the pre-foreclosure stage, compared to when borrowers have already started the foreclosure proceedings.

Is buying a home in foreclosure a good real estate investment strategy?

There are many reasons why investing in foreclosure is often a wise real estate investment strategy.  Foreclosures generally have the potential to offer a much higher return on investment than non-foreclosed properties. This is because foreclosures are often sold at a significant discount, allowing investors to buy low and sell high. Additionally, investing in a foreclosure can be an excellent way to create value-added properties; by renovating and repairing a foreclosed property, you can significantly increase its value, leading to handsome profits when you ultimately sell it. 

 

What Are FCRA Dismissed Bankruptcies?

Bankruptcy is a legal process that helps individuals or businesses eliminate or repay their debts. In some cases, however, bankruptcy may be dismissed. A dismissal can happen for several reasons, such as if the debtor does not follow the rules of the bankruptcy process or if the debtor’s creditors object to the discharge of the debt.

The FCRA was created to protect consumers’ rights. This law also requires credit agencies to ensure the information they have about you is correct. The regulation says what information should be in consumer reports. It also says that if people think this information is wrong, they can ask to have it changed.

What is the FCRA?

The Fair Credit Reporting Act (FCRA) is a federal law that sets rules for obtaining and viewing credit reports. It was passed in 1970 to assure the fairness, accuracy, and privacy of personal information stored by the credit reporting agencies files.

The Fair Credit Reporting Act is a law that sets rules for how credit information about consumers can be collected, kept, and shared. This includes managing how long information can be kept and how it can be shared with consumers.

What does FCRA mean on a credit report?

The Fair Credit Reporting Act (FCRA) is a federal law that promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. The FCRA regulates how these agencies collect, use, and share consumer credit information.

 

When bankruptcy is dismissed, the debtor will still be responsible for repaying their debts. In some cases, the dismissal may be reported to the credit reporting agencies, which could impact the debtor’s credit score.

 

If you’re considering filing for bankruptcy, it’s important to understand the process and the potential consequences, including a dismissal. An experienced bankruptcy attorney can help you navigate the process and protect your rights.

Who is covered under FCRA?

Consumer reporting agencies must follow the stipulations of the FCRA. A consumer reporting agency collects and sells information about you to third parties.

The most well-known consumer reporting agencies in the United States are:

  • Equifax
  • Experian
  • TransUnion

 

The FCRA guarantees that you are informed if information in your credit file is used against you to prevent you from obtaining credit, getting a job, or collecting insurance benefits.

You are allowed by the FCRA to request all the information a credit reporting agency has on you. This is called a “file disclosure.”

What is an FCRA adverse action letter?

An adverse action letter is a notice that informs you that your credit application, job application, insurance application, or other applications for benefits have been rejected due to information in a credit report.

It should state which credit reporting agency was used and how to contact them.

You have the right to know why you were denied based on information in your credit report. You also have the right to get a free copy of your credit report from the credit reporting agency if the denial was due to information in your credit report.

What is FCRA disclosure?

 

The disclosure is the first stage in performing an FCRA-compliant background check, and it is the process of notifying an applicant about the intent to conduct a background check on them.

A clear statement that a background check will be utilized to influence an employment choice is required.

The name of the vendor must be stated if the recruiting business is outsourcing the evaluation to a third party, such as a Consumer Reporting Agency (CRA).

The Fair Credit Reporting Act (FCRA) is a federal statute that requires you to inform prospective employees or applicants that their credit reports will be obtained by a credit reporting agency. This is so they can inform their prospective employers ahead of time if there are any issues with their credit, allowing them to address them before being hired.

What does it mean when it says “FCRA requirements”?    

After an inquiry has been conducted, credit agencies can add a note to the account stating it was disputed, as well as “FCRA requirements” at the end of the statement.

Why? If a consumer disputes information on their credit report and the credit bureaus find that it is correct, a statement claiming that the account “meets FCRA requirements” may be added.

It can also be inferred that all data is correct and in compliance with federal rules.

What are your rights under the FCRA?

First, you have the right to be told if someone has used your credit report to deny you credit, insurance, or a job. If this happens, the person who denied you must tell you the name, address, and phone number of the agency that provided the information.

Second, you have the right to know what is in your file. You have the right to access and obtain all of the information about you in a consumer reporting agency’s files.

Third, you are entitled to a free file disclosure if you have been the target of adverse action due to material in your credit report.

If you were a victim of identity theft, placed a fraud alert in your file, have incorrect information as a result of fraud, are on public assistance and expect to apply for work within 60 days, or if you’re currently unemployed but plan to seek employment in the next six months you can also have a free file disclosure.

Fourth, you have the right to obtain a credit score, a numerical summary of your creditworthiness based on data supplied by credit bureaus.

Last but not least, you have a legal right to challenge incorrect or incomplete information.

You should also be aware that only those with a genuine need have access to your file. Employers will be informed of your records only if you give consent.

Who enforces the FCRA?

Since the moment the legislation was approved, the FTC has had exclusive enforcement power under the FCRA. The Federal Trade Commission is an agency of the United States government that helps people by enforcing antitrust laws and promoting consumer protection.

The FTC is the federal government’s only consumer protection and competition agency in a number of sectors. The FTC pursues effective and aggressive law enforcement, as well as consumers’ interests. 

FAQ

Can you remove dismissed bankruptcies from your credit report? 

The answer is no. You will not be able to remove a bankruptcy from your credit report. It will be removed automatically after seven or 10 years, depending on the kind of bankruptcy you filed.

Can credit repair companies remove bankruptcies?

Not necessarily. There is no such thing as a “quick fix” for credit problems. Credit repair businesses can dispute negative items on your credit reports to fix them. Many, though, are fraudulent and disappear when you pay them.

Remember that you can take similar actions as a credit repair firm for free or with the help of a bankruptcy lawyer. Obtaining copies of your credit reports from the three national credit bureaus Equifax, Experian, and TransUnion is a wonderful first step.

How much will the credit score increase after Chapter 7 falls off?

If you have a Chapter 7 bankruptcy fall off your credit report, you can expect your credit score to go up by around 50-150 points after two to three months. Then it generally hovers around 500 to 550 for the typical debtor.

 

Is Alimony Dischargeable in Bankruptcy?

Alimony, also called spousal support, domestic support obligation, or maintenance, is a payment from one ex-spouse to another. The payments are typically made after a divorce or legal separation. Alimony can be ordered by a court or agreed upon by the divorcing parties. The spouse who is paying the bills is called the “supporting spouse” that contributes funds to the “dependent spouse”.

Alimony, like child support, is a domestic support obligation that cannot be eliminated in bankruptcy. How can a person afford alimony? Filing Chapter 7 or Chapter 13 bankruptcy might allow an alimony payer to get other debts erased and make the alimony payment more affordable.

How is alimony paid?

Alimony is money paid to a spouse or former spouse after a divorce to assist with ongoing living expenses, such as food. It may be paid in one lump sum or regularly, such as weekly or monthly.

Typically, alimony is paid every month. A judge will sometimes command a spouse to pay a specific sum of money to the other spouse as maintenance, such as in cash or through the transfer of property (separate from the regular process of dividing the couple’s marital property).

Is alimony an unsecured debt?  

Unsecured debt is debt that does not have any collateral pledged to the creditor. In certain loans, such as mortgages and automobile loans, if payments are not made on time, the lender has the legal right to seize the debtor’s property.

An obligation to pay alimony is not suspended or halted by filing for bankruptcy. Whether a divorce decree-determined duty is dischargeable depends on whether it is classified as support or property settlement.

In many cases, obligations for property settlement may be canceled in bankruptcy, but alimony payments can’t. Whether an obligation is a support or property settlement obligation is made by federal bankruptcy legislation rather than state law.

How does debt affect alimony?

A judge will consider numerous factors when determining whether or not to award alimony, including the paying party’s financial situation.

In certain circumstances, a judge will demand one spouse to reimburse the debts of the other as alimony. In other situations, a judge will forgo ordering alimony if the paying spouse would incur greater debt paying alimony.

If you’re receiving alimony, you must reveal how much money you receive each month. Take the last six months of receipts and calculate the average monthly amount if your payments fluctuate.

Means test and alimony

The means test is based on your income, which alimony payments may impact. Alimony obligations aren’t discharged in bankruptcy. The automatic stay, however, might influence a debtor’s obligation to pay alimony during a pending bankruptcy case. Filing for bankruptcy may also impact any changes to alimony terms.

In any case, there are a few exceptions to the application of the automatic stay. One such exception is alimony claims in court. As a result, the automatic stay will not prevent the commencement or extension of a legal action related to alimony payments in civil or family court as long as it does not involve the non-filing spouse seeking to distribute property that is part of the bankruptcy estate.

If a debtor’s income is being withheld as the consequence of an administrative or judicial order for family support duties, it will continue even if he or she files for bankruptcy. Wage garnishments will not be stopped by the automatic stay in this instance.

FAQ

What debts are not dischargeable in Chapter 13?

The following debts are not discharged in a chapter 13 bankruptcy:

  • A home purchase or mortgage is one of the most important long-term financial commitments you’ll make.
  • Certain debts for alimony or child support, income taxes that have been assessed within the 3 years before your bankruptcy filing, government-funded or guaranteed educational loans, and benefit overpayments are not dischargeable.
  • Personal expenses resulting from death or personal injury caused by a driver who was intoxicated

Can you go to jail for not paying alimony in Michigan?

Failure to pay spousal support may result in a host of penalties, including civil and/or criminal ones. A person can be charged with a felony in Michigan and face up to four years in prison if they do not pay alimony on time or in the amount set by the court.

Spousal support is not always given in a divorce case, according to Michigan divorce law. If one spouse asks for spousal support and the couple cannot agree on assets or property division, the court must rule on whether spousal support is required.

 

Gambling While in Chapter 7

Technically, you are allowed to gamble while in Chapter 7 bankruptcy. However, there are a few things that you need to keep in mind if you do choose to gamble while amid your bankruptcy case.

First and foremost, any money that you win while gambling will become part of your bankruptcy estate. This means that your creditors will be able to take a portion of your winnings to pay off your debts.

Additionally, if you have a gambling addiction, it is important to get help for this before you file for bankruptcy. This is because gambling can lead to even more debt, which can make it more difficult to get a discharge in your bankruptcy case.

How good is gambling for your wallet?

The gambling industry claims that the gambling business is a socially beneficial one with both economic and non-economic benefits. It is claimed that gambling creates wealth through job creation, consumer spending, and increased tax revenue. However, the economics of gambling are debatable.

The correlation between gaming and gambling debts to bankruptcy filings is unclear. Some studies claim that gambling is either a major reason or a contributing factor in bankruptcy filings. It also says that 10% to 26% of problem gamblers file for bankruptcy.

Regulations on gambling

Gambling is not mentioned in the US Constitution, and therefore it does not fall under federal jurisdiction. The 10th Amendment reserves the right to regulate gambling in the states.

Congress has enforced the Interstate Commerce Law to limit both interstate and international gambling.

Each state has the authority to prohibit or legalize the practice within its boundaries. Almost every state, if lotteries are run by the government, can be considered to allow some degree of gambling.

 

Gambling and bankruptcy

The goal of bankruptcy is to separate the innocent but unfortunate debtors from those who have committed various types of culpable actions.  This is accomplished by forgiving the debts of the former and holding the latter accountable through different types of bankruptcies.

If the debtor has lottery tickets or other similar gambling property, they must be reported. Gambling winnings that were acquired at the time of filing are a part of the estate’s assets and must be disclosed.

Difference between non-gambling debt and gambling debt

Unsecured debt, such as gambling debts, is unsecured and should be written off completely in a chapter 7 bankruptcy and placed behind secured debts in a chapter 13 repayment.

Sometimes, creditors may fight back and protest the debt being forgiven.

Gambling debts are frequently defined as unsecured debt since they are not secured by any property. This makes them comparable to credit cards or medical expenses. As a result, gaming debt is typically dischargeable in bankruptcy.

However, there are some exceptions to this rule. If you incurred your gambling debt while you were intoxicated or if you gambled intending to incur debt, then your gambling debt may not be discharged in bankruptcy.

 

Gambling addiction

Additionally, if you have a gambling addiction, you may want to consider getting help for this before you file for bankruptcy. This is because gambling can lead to even more debt, which can make it more difficult to get a discharge in your bankruptcy case.

Are gambling debts dischargeable in bankruptcy?

It wasn’t long ago that bankruptcy courts routinely rejected gambling debts as non-dischargeable. However, more recently, and perhaps as a result of the increase in permitted gambling in many states, the courts have begun allowing debt discharge.

Gambling debts are dischargeable in bankruptcy, just like other types of unsecured debts such as credit cards and personal loans. Certain gambling debts, on the other hand, may be exempt from discharge under certain circumstances.

 

In conclusion, gambling is not illegal while in Chapter 7 bankruptcy, but there are some things that you need to keep in mind if you do choose to gamble. Any money that you win while gambling will become part of your bankruptcy estate and your creditors will be able to take a portion of your winnings to pay off your debts. Additionally, if you have a gambling addiction, it is important to get help for this before you file for bankruptcy.

FAQ

Can I get charged with fraud for declaring bankruptcy due to gambling debt?

A creditor may challenge your bankruptcy filing if they believe that you incurred your debt under pretenses or by fraud. Gambling is viewed as fraudulent for debtors if they intend to use it to avoid creditors from getting money. When a debtor gambles during bankruptcy, all of his or her debts become non-dischargeable. As a result, the debtor will be required to pay off all of his or her post-bankruptcy obligations, not just gaming debts.

Do I have to report my gambling debts or wins?

All winnings from lotteries, raffles, horse races, casinos, and other forms of gaming are taxable. Non-cash awards such as automobiles or holidays are valued at their market value.

Gambling losses are also tax-deductible to the extent of your winnings, but they must be declared as taxable income on your tax return. Gambling profits are completely taxed and must be shown on your income tax return.

Who can help me understand bankruptcy and gambling?

If you have any questions about gambling while in Chapter 7 bankruptcy, be sure to speak with your bankruptcy attorney. They can give you specific guidance on how to handle this issue in your particular case.

 

All You Need To Know About The 90-Day Clawback Period

When you file for bankruptcy, the court issues an automatic stay. This means that creditors are no longer allowed to contact you or try to collect debts. The automatic stay is in place for the duration of your bankruptcy case.

However, there is one exception to the automatic stay: the 90-day clawback period. It is the time frame during which a bankruptcy trustee attempts to recoup cash from creditors.

Read on to find out more about how the 90-day clawback period works.

What is the clawback period?

This 90-day period begins on the date that you file for bankruptcy. During this time, the trustee has the right to demand payment from creditors. If a creditor does not comply with the trustee’s request, the trustee can take legal action to recover the money.

Section 547 of the Bankruptcy Code allows a trustee to sue creditors who were paid by the debtor before filing for bankruptcy. The aim is to regain any unlawful benefit that the creditor acquired.

Why does the clawback period exist?

The power to reclaim money that the debtor has previously given away improperly is known as “clawback.”

The beneficiary is liable for any excess or unauthorized payments made during the bankruptcy proceedings. This clawback allows the trustee to recoup assets that should have been part of the debtor’s bankruptcy estate but were eliminated or hidden from the trustee by fraudulent transfers or preferential transfers.

It’s not a question of whether the debtor committed a crime or that the debt was fraudulent. It’s about seeking fairness for both secured and unsecured creditors in the end.

A trustee may usually ask for the return of money paid by the debtor to third parties within 90 days of the bankruptcy filing.

What are preferences?

 

Preferential transfers (also referred to as preferences) happen when one individual’s debt is paid off ahead of time so that it benefits one creditor above others. This includes both a secured creditor, a family member, a business partner, or anyone else.

For example, if a debtor repays $1,000 owed to his credit card debt 60 days before filing for bankruptcy, it will be considered a preference,  since the credit card debt got paid first.  If a debtor repays $1,000 owed to his father 200 days before filing for bankruptcy, then it will be considered an insider preference. The Trustee can clawback up to one year to recover any insider preferences.

A court-appointed trustee or the other creditors in the case have the power to request that all payments made by the debtor to third parties 90 days before the case’s commencement be returned or “clawed back.”

Are most payments preferences?

The preference recipient’s bankruptcy law provides some protections.

A contemporaneous exchange is not a preference. So, if you pay for the food you ate at a restaurant and the goods and payment for those goods change hands at the same time, there is no preference.

How much money is considered a preference?

Payments totaling more than $600 in the 90 days before filing are avoidable by law. However, it is not worth pursuing creditors for $600.

The sum is undoubtedly more than $600, but each trustee has her guideline for when a preference can be recovered to provide a dividend to creditors.

What is the preference period?

The bankruptcy trustee does not have an infinite amount of time to work in. The 12 months leading up to the date you file bankruptcy for payments made to friends and relatives, known as “insiders,” is your “preference period.”

For other unsecured creditors, such as past-due utility payments or an unsecured credit card, the period for preference payment is even shorter.

The debtor’s bankruptcy estate

If a debtor decides to transfer the title of an asset before filing bankruptcy, the item may be reclaimed from the estate under the clawback provision.

In some instances, the bankruptcy trustee assigned to manage the debtor’s financial affairs can get these pre-bankruptcy belongings back from people or businesses who received them.

In bankruptcy, the clawback provision allows trustees to look at financial transactions made by the debtor before filing bankruptcy to see whether he or she transferred or gave away any assets in violation of the “look-back period.”

The trustee can reclaim these assets, or their value, for the debtor’s bankruptcy estate from any other creditors who received them.

Not all preferences are the same everywhere

Keep in mind that preferential payments are a bankruptcy-specific law. This means that the rules may vary from state to state. For example, according to California state law, a debtor has the right to choose and select among his creditors. In Michigan, Chapter 7 trustees can claw back up to 6 years on fraudulent real estate transfers. 

It is advisable to seek the counsel of a bankruptcy attorney in your area to discuss your particular circumstances and the law as it applies in your jurisdiction. Establishing a safe attorney-client relationship can help you understand nuances in the bankruptcy code that are only known to a professional law firm.

How does the bankruptcy trustee recover preference payment?

The trustee has the authority to void or “clawback” certain payments made by the debtor in the 90 days before bankruptcy. This includes payments to friends, family, and businesses owned or controlled by the debtor within the last year. The trustee can also recover assets transferred by the debtor during this period.

When a transfer was made in return for anything that adds to or does not deplete the debtor’s assets, it will be avoided by a trustee.

The new value is something that can be given in exchange for a property. It can be cash or a release of a judicial lien. It doesn’t include the swap of an existing obligation for a new one.

Will a bankruptcy filing help my financial distress?

Bankruptcy may help you if you are struggling to pay your credit card company, car loans, or any antecedent debt. It can give you a fresh start by discharging some of your debt and reorganizing your remaining debt.

Although you can do a bankruptcy filing on your own, it can be extremely helpful to hire a bankruptcy lawyer or law firm to be by your side when going to bankruptcy court.

Attorneys evaluate your case, investigate your pre-bankruptcy payments, check your total debt owed, and help you see if you qualify for debt relief.

An attorney-client relationship keeps sensitive or confidential information safe and many debtors feel better than using any other self-help services when facing a complicated bankruptcy case.

 

Will the clawback period necessarily secure money for the debtor in bankruptcy?

If you’re considering filing for bankruptcy, it’s important to understand how the clawback provision works and how it may affect you.

In many circumstances, payments made within the 90-day preference period were not preferential, as recognized by most trustees.

Debtors may try to move property or cash to family members or “insiders,” intending to hide the assets “safe” until the bankruptcy case is over. The trustee may suspect a preferential payment and investigate the transfers.

If it is determined that this preferential transfer is a fraudulent conveyance, the trustee can void the transfer and get the property back for the benefit of the debtor’s creditors.

So beware of realizing any preferential or fraudulent transfers to save either your business or financial affairs when you pay creditors.

What can a creditor do not to lose money?

Typically, creditors must engage legal help to defend or settle preference claims, although various defenses may be used by creditors.

A lender who makes preferential payments has the right to file an unsecured proof of claim against the bankruptcy firm, but typically receives a minor portion of his or her money back.

 

In conclusion, the clawback can help the debtor in bankruptcy by getting assets back that were transferred during the 90 days before filing. The trustee may investigate and void any fraudulent conveyances. Creditors can use a variety of defenses to protect themselves from losing money, including the ordinary course of business defense or the new value defense.