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December 7 ~ 21, 2010

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More on Bankruptcy and Foreclosures, Kern County

Do-It-Yourself Debugging Machines, Myths & Misconceptions

By Stephen F. Rudin, Esq.

The last article looked at the simple case of a mortgage in default. As discussed, in a non-judicial foreclosure, filing for Chapter 7 bankruptcy will delay but will not prevent foreclosure. Under Chapter 13 bankruptcy, foreclosure is also delayed. In addition, Chapter 13 can provide the means to cure the default and keep the house with a court approved payment plan. If there are additional loans secured by the property (second mortgage, home equity loan), the option to file for bankruptcy may apply. Typically in the case of multiple mortgages, it will most likely be the senior creditor (first mortgage holder) to foreclose. Foreclosure leaves no recourse for the senior mortgage creditor. That creditor cannot come after you for any deficit value on your mortgage. The foreclosure also removes all junior liens. What it does not remove are personal obligations. The person’s obligation is created by the promissory note. In contrast to the mortgage or trust deed that secures the property to the loan. In short, the junior creditors can still have recourse as in the case of a home equity line of credit (HELOC) or second mortgage. In short the junior creditors can still have recourse, including any home equity line of credit (HELOC). Bankruptcy can discharge these junior debts. In summary, bankruptcy can provide relief when faced with foreclosure. Foreclosure is not going to happen overnight. When problems meeting your mortgage payments are imminent contact your lender. Seek assistance from a HUD approved counselor, real estate attorney or other trusted professional. Bankruptcy or foreclosure will both impact your credit score. However, bankruptcy can be preferable when trying to rebuild credit. A foreclosure harms your credit score and does nothing for other debts. Bankruptcy harms your credit score, but rebuilding your score will be quicker. Bankruptcy leaves you solvent and debt-free. It is the best way to provide a fresh start and to begin rebuilding a good credit score.

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by Alexander Kunstmann, A-OK Computers

Home owners, encouraged by the government and creditors, have been treating the equity in their homes like a private bank. Creative loans allowed more people to buy a home and those already with a home to tap into equity. Interest only loans, great teaser rates and other loan practices that greased the wheels of the mortgage machine. While home prices increased there were no problems. Loans were easy to get and the increasing value covered any default. Now that prices have fallen, the problems are apparent and making it very difficult to qualify for a loan. The economic problems rippling through the economy have hurt us all in one way or another. Again, you are not alone, over a million and half families face foreclosure this year. Kern County has been hit worse than most. Bankruptcy is the better way to eliminate mortgage debt and associated tax liability when forced with the loss of your home. Bankruptcy also presents a way to save money to use for an alternate place to live. This is intended to provide general information and not to be relied upon as rendering legal advice about your particular situation. No attorney-client relationship is created by this article. Consult with an attorney before taking any action that would affect your personal or business matters. We are a debt relief agency pursuant to Federal Law §524 of Title 11 of the US Code. We provide legal assistance and help people file for bankruptcy relief under the Bankruptcy Code.

With the holiday season being… well, here, I wanted to clear up a few ideas that have missed the mark a bit. PC vs MAC: It doesn’t matter anymore. Honestly, they’re 95% the same now. Mac’s used to be better for art & graphics. PC’s used to be better at networking. Thanks to inter-changeable parts & the need for networking standards, they both measure about the same. Mac’s can get viruses, don’t think you’re protected just because you’re not using a PC. There is only one large determining factor as to whether you should use a Mac or PC: your personal taste. Which ever you are more comfortable with, use that. A slow computer means it has a virus: Not true. Most of the time, a computer slows down because it is “dirty.” This can mean dust & hair have literally built up on the inside, or it may mean that your system has too much going on in its software (even if you’re not doing all that much). Get some canned air to clean out your system, or have it optimized to make sure it’s running properly. If your computer dies you lose all your data: This only happens with your hard drive. A computer is a machine, just like a car is. Parts can break and it will still sort of work. At the same time, there are several parts that, if they fail, the system will stop working. However, 85% of these can simply be replaced & the computer will be functional again, most of the time with next to no work needed other than the replacement. If the hard-drive dies, however, you will lose all the data on that drive. There are ways to get data off a dead hard-drive, but the price goes up rather quickly, usually starting at around $1000. Installing a larger power supply will over-load a computer: The power supply is really more of a power regulator. The wattage it

We hope you're able to dash away from your hectic workload and enjoy a happy holiday with the ones you love!

Happy Holidays,

is rated at is not how much it lets through, but how much it can handle at any one time. When its demands are lower, it restricts how much power is passing through. Having a power supply too weak can risk damaging the supply, or even the computer itself. The general rule of thumb: bigger is better (or at least, a safer bet). Upgrading my video card will allow me to play newer games: This is partially true. This really depends on the game you’re playing, or any program for that matter. Most games require beefy video or graphics cards to make all the visuals in those games. However, the very core of the game (the “rules” to the game, tracking what is where, figuring out where it’s going, etc.) doesn’t use the graphics card at all. Most systems, even if slightly outdated, have enough power to run today’s games, but not necessarily the power to properly display them, hence the need to upgrade video cards. Thankfully, getting a new video card isn’t really expensive, unless someone wants a card on the cutting edge of technology. I have anti-virus software installed on my computer, so I’m safe no matter what: Unfortunately, no matter how good it is, there is no absolute guarantee. Think of an anti-virus for your computer like an anti-virus for a person. That is, a vaccine. Before a vaccine can be made for a virus, a sample of that virus needs to be obtained, and the place to get that is from the first people infected by it. A computer anti-virus works the same way. When a computer gets infected, anti-virus software sends a message back to their “headquarters” so the company can then tell all the other systems out there how to protect themselves against it. So, if you happen to be one of those first people to find a new virus, there’s nothing your system can do about it but try to help everyone else. I’m not trying to make everyone paranoid, or say that anti-virus software is useless. The big message here would just be; it’s wise to exercise caution, no matter how much protection you have. I’ve lived in Tehachapi for 16 years, and have finally started my own business up here. As part of my business, this column is a recurring feature in The Loop newspaper. If you have any questions related to computers, feel free to call or send me an e-mail. Phone: (661) 972-9385, Email:, Facebook: No matter what the problem, I make sure that everything is A-OK.

The Loop newspaper ~ December 7-21, 2010  

Tehachapi, California's Source for Community News & Entertainment. Our publication contains articles on local businesses and members of our...

The Loop newspaper ~ December 7-21, 2010  

Tehachapi, California's Source for Community News & Entertainment. Our publication contains articles on local businesses and members of our...