Attorney Blogs|Monmouth County|Middlesex County NJ

Wells Fargo to Issue Refunds After its Mortgage Rate-Lock Scandal

Wells Fargo is in the middle of another scandal involving its business practices. According to the bank, it will reach out to 110,000 customers who might have been charged improper “rate-lock extension fees” while finalizing their mortgage paperwork. Wells Fargo will issue refunds to some of these customers. Rate-lock extension fees are what borrowers pay if they miss their mortgage paperwork deadline but still want to keep their quoted interest rate. However, borrowers are only supposed to be charged these fees if they are responsible for missing the deadline. It turns out that Wells Fargo was responsible for the late paperwork filings in some of these cases. Rate-lock extension fees can be costly for borrowers with expensive mortgages. According to Wells Fargo, it assessed $98 million in rate-lock fees for 110,000 customers between September 2013 and February 2017. The bank believes it will issue less than $98 million in refunds…
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Can I Convert My Chapter 13 Bankruptcy to a Chapter 7 Bankruptcy?

In a Chapter 13 bankruptcy, creditors are paid back through a payment plan that lasts for three to five years. During this time, you must make timely payments to the Trustee, who then distributes the funds to your creditors. Once you complete the repayment plan, you may keep your secured debts such as a home or vehicle. However, there are instances where you may want to convert your Chapter 13 bankruptcy to a Chapter 7 bankruptcy. This typically happens when debtors can no longer afford Chapter 13 payments or if they wish to surrender property. For example, you could experience job loss or severe illness during your three to five-year repayment period. You may also decide that you no longer want to keep your home or vehicle. In other cases, the court may force you into a Chapter 7 bankruptcy because you missed payments for your Chapter 13 repayment plan….
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Can a Small Business File for Chapter 11 Bankruptcy?

Chapter 11 bankruptcy is one of several ways businesses can seek debt relief. Although Chapter 11 cases are typically associated with large companies, smaller business owners can also take advantage of its protections. If you want to restructure your debts and continue operating your business, then this is an option to consider. If your business has less than $2,566,050 in debt (as of 2016), then you are considered a small business debtor. As a small business debtor, there are differences from a typical Chapter 11 case. These differences include: No committee: When a large business files Chapter 11, a committee is assigned to represent the interests of creditors. This is not the case when a small business debtor files for Chapter 11. A reorganization plan deadline: Large business do not have a deadline to present a reorganization plan. As a small business owner, you must present your plan within 300…
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