heather: fox business alert for you, a popular bridal chain abruptly closing stores after nearly 80 years in business and that left a lot of the brides to be and wedding parties without any dresses. rob: ridiculous panic. the company finally responding. tracee carrasco from sister network fox business. good morning, tracee. tracee: brides are a group of people that you do not want to mess with. angelo bridal abruptly closed 60 stores after filing for chapter 7 bankruptcy. the company s whose headquarters is in delray beach, florida sells gowns at different locations. brides were sent into a frenzy trying to track down those dresses they paid for. i have three months, i can figure something out, i paid for something and i don t know if i m getting a refund, i don t know if they ll get a dress. tracee: alfred angelo s website
went to the bank to see if we could get a loan remodification or whatever processes they had at the time. they contacted the lenders. they wanted to try to save their homes. people who, their whole life, had great credit ratings they were being told, the only way to save your home is go late on payments. we were pretty much told that we were making our payments on time, so there was nothing they could do for us, but if we went delinquent and stopped paying, after six months, they d reassess the situation and go from there, but they still couldn t give us a guarantee that there d be something they could do to help us. so many good people that bought the homes in good faith in 06 are now being asked to ruin their credit in the hopes only the hopes of saving their home. so, what did they do? mark and yessenia contacted a lawyer, looking and hoping for help. we were told it was in our best interest to file a chapter 7 bankruptcy, to surrender both properties, and begin to
they filed a chapter 7 bankruptcy. they thought at that time that once a bankruptcy was over that they could move on with their life and eventually buy a home. so they moved in to a rental property and spent three years saving money and repairing their credit before trying to start over. look, cruz. want to play? we figured that houses would be sold and would be out of our name and we would wait our appropriate amount of time before we started searching for another house. but, suddenly, they discovered a problem. the home they gave up in the bankruptcy three years ago was never actually sold by the bank. the title of the house lists mark as the property owner. when i contacted bank of america, they said that bank of america rescinded on the foreclosure process. the title to the property was never taken out of their name. it s what we call a zombie foreclosure or zombie title. in other words, the lender, to this day, still has not foreclosed on that property, and
bankruptcy. which is basically what they call a wage earner s reorganization. correct, so we re paying the creditors back at full, less the interest. over a five-year period? mm-hmm, yeah. if there were no other options left, bankruptcy tended to be your hail mary to get you out of that debt, and not everybody it wasn t a great situation or a resolution for everyone. now, chapter 7 bankruptcy is a liquidation. all the debts are wiped out. chapter 13, on the other hand, is a method of paying your debts back over time. it s 100% paid back. what they re letting you go for is this interest, cause they freeze everything at that point and it s a full payback of what you owe. and it basically it made you feel better because you re responsible citizens. right, right. so why was a bankruptcy needed? because short sales could still leave money that is owed. even if the banks agree to write off the debt, which they don t
lost my job. once we realized my job alone wasn t going to handle both the mortgages on the properties, we went to the bank to see if we could get a loan remodification or whatever processes they had at the time. they contacted the lenders. they wanted to try to save their home s people, their whole life had great credit ratings. they were being told the only way to save your home is go late on payments. we were pretty much told that we were making our payments on time, so there s nothing they could do for us. if we went dmrink went and stopped paying after six months they would reassess the situation and go from there, but they still couldn t give us a guarantee that there would be something they could do to help us. sfroo so many good people that bought the homes in good faith in 2006 are now being asked to ruin their credit in the hopes, only the hopes, of saving their home. what did they do? they contacted a lawyer looking and hoping for help. we were told it was in our bes