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Kovacs Law Office
News letter
June 29, 2011 |
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Law Office of Robert W Kovacs, Jr.
172 Shrewsbury Street
Worcester, Massachusetts 01604
(508) 926 - 8833
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Greetings!
Welcome to our e-newsletter! The purpose of this newsletter is to keep you informed about bankruptcy and other areas of law. Please feel free to share this and future newsletters with your others. If you would prefer not to receive this e-newsletters in the future please click the link at the bottom of the page. I welcome any comments or suggestions for future newsletters.
I hope everyone has a great 4th of July!
Thank you for taking the time to read our newsletter. Sincerely, Robert Kovacs Law Office of Robert W Kovacs, Jr. |
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Rental Property - Mortgage Cram Down - Reduce your principle balance on your mortgage loan

bankruptcy you may be able to reduce the outstanding principle balance on your mortgage loan to the current value of the property.
In today's economy many properties
have seen a large decline in value; this includes rental and commercial property. Owners of owner occupied multi-family homes, rental property and commercial property can reduce the value of the outstanding principle mortgage loan balance.
Here is how it works:
Your property is currently worth $200,000;
You are behind on payment $10,000 (or better yet not at all);
You have a first mortgage of $400,000; and
A second mortgage of $50,000.
In this example you can
- Completely eliminate the second mortgage through your bankruptcy and never have to pay it again.
- Catch up the arrears on the first mortgage over a 60 month Court approved Plan; and
- Reduce the principle balance on the first mortgage from $400,000 to $200,000
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Bankruptcy Court Declares Defense of Marriage Act Unconstitutional
Recently the U.S. Bankruptcy Court for the Central District of California, the nation's largest bankruptcy court, ruled that the federal Defense of Marriage Act violates the equal-protection clause of the U.S. Constitution. In a decision signed by 20 judges, the court found that "there is no valid governmental basis for DOMA." The case is
In re: Balas and Morales, and can be read here.
The Balas case centers on a gay male couple in California who filed a joint Chapter 13 bankruptcy case seeking federal protection from their creditors as a married couple. Gene Balas and Carlos Morales were legally married in California in 2008 and are still legally married, despite the enactment of Proposition 8 in California. The Bankruptcy Code provides that any individual and his or her spouse may file a joint bankruptcy case. However, the U.S. Trustee's office sought dismissal of the case, citing the Defense of Marriage Act which does not recognize same sex marriages.
The Central District of California Bankruptcy Court found that there is "no valid governmental basis for DOMA," and that the law "violates the equal protection rights of the debtors as recognized under the due process clause of the Fifth Amendment." The Obama administration has stated that it believes the Defense of Marriage Act (DOMA) violates the Constitution, and has reportedly ordered the Justice Department and bankruptcy trustees to stop
defending the DOMA in court.
While other federal judges around the country have declared DOMA unconstitutional, this 20 judge signed opinion sends a clear and powerful message. This decision may have a far-reaching impact on similar cases in Massachusetts, Connecticut and Washington, D.C., where same-sex marriage is legal.
The federal law is not always clear, and is constantly changing. If you are struggling
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| About Our Law Firm
Law Office of Robert W Kovacs, Jr. 172 Shrewsbury Street Worcester, Massachusetts 01604 Telephone: 508-926-8833
E-mail: Robert@RKovacsLaw.com
Website: www.RKovacsLaw.com
The Law Office of Robert W. Kovacs, Jr. is a debt relief agency; helping people file for bankruptcy relief under the Bankruptcy Code. |
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Attorney Spotlight
Attorney Kovacs
Attorney Kovacs was born in Worcester Massachusetts and graduated from Auburn High School. |
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