Posts Tagged ‘bankruptcy’

Is There A Legal And Effective Alternative To Bankruptcy To Settle Your Credit Card Debt?

Saturday, December 5th, 2009

You are not alone!
Are you up to your neck in credit debt and there doesn’t seem to be any way out? Bankruptcy used to be a forbidden subject spoken about in hushed whispers. But nowadays it’s so widespread, that it’s much more common to hear the lament that ‘I’m just not making it and I might have to consider bankruptcy’. It is so familiar now to be overburdened by massive credit that the topic is no longer taboo. Bankruptcies affect more than 1 out of every 100 households across the nation, (not to mention the huge increase in foreclosures), involving every economic and social sector. In our effort to help people in these dire straits, we find it is usually the entrepreneur and forward thinker, working hard and trying to leverage a better life for themselves and get ahead, that is the one most often struck down by the current economic climate. The individuals caught up in this debt crisis are definitely not the lazy deadbeat profile that the current stigmas would have you think, but are more typically hard working individuals looking for real debt freedom.

But they say things are getting better!
When the politician says things are getting better, it really means that we are not going backward as fast as we were – only losing 400,000 jobs a month (July 2009) instead of 467,000 (June 2009). This is great news except to the 400,000 people who just lost their job! Don’t be fooled into thinking that debt problems will go away soon and everyone will have plenty of money to pay their bills. The effects of this recession will be felt for many years and we are just at the beginning of the coming meltdown in credit card defaults. How long will it take 400,000 people who lost their jobs, in July 2009, to get caught up on rent, mortgages, and food, and then to pay off their debt?

Bailing out the credit card companies was supposed to be good for us, but was it?
Banks and Credit Card companies are in the business, not to help us make our lives better, but to make as much money as they possibly can! At the time a credit card company offers us the money and debt we think we need, they are in turn using that credit to enhance their own portfolio, borrowing nine (9) times that amount. Nowadays, as soon as a credit company even thinks you are in trouble, your interest rate can be doubled (we’re just starting to see 40% rates), and the minimum monthly payment being raised from 2% to 5%. So a monthly payment of $500 could now rise to $1300 or more. And this may happen after you’ve lost your job, had a pay cut, a major illness, or experienced some other downturn in your situation.

But, at least, I can file for bankruptcy and get a fresh start?
Sadly, this is no longer the case. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was anything but what it was labeled. This bill was a dream come true for your creditors and the banks. In fact, they have been trying to pass a bill like this for years! If you are anything but dead broke, without any hope of future income, you will be forced into a Chapter 13 (court ordered repayment plan) rather than a Chapter 7 (most debts forgiven) by the bankruptcy judge. (By the way, the bankruptcy attorneys selling bankruptcy to you do not control who qualifies for a Chapter 7.) Chapter 13 is a court ordered repayment plan for individuals with regular income and unsecured debt of less than $290,525 and secured debt less than $871,550. You will become a ward of the court system and required to repay your debt. Any change in your financial situation for the better will be rewarded with an increase in your debt payments to your creditors. Add to this the long term negative effect on your credit score of filing bankruptcy and the resulting added costs in higher interest rates for any new credit purchases, this filing has lifetime effects. In fact, for the rest of your life, whenever you are asked on a credit, financial, mortgage, or employment application if you have ever filed bankruptcy, you will have to answer, “Yes”! This may cost you significant lost opportunities and thousands of dollars. This kind of bankruptcy “relief” could be a disaster for you for years to come.

There are many credit relief companies out there that promise they can help you out, but very few of them have a strategy that will do more than add to your debt (by paying a built in fee to a third party company) or consolidating your debt into one payment, with some lowered interest rates.

There is another alternative to Bankruptcy (the only one that we found to be successful, legal, and cost effective) where you can actually stop your credit card payments now, have the courts protect your assets and income, and have your credit profile restored, all while you are obtaining a legitimate debt negotiation for as little as ten cents on the dollar. This provides you a second chance and the opportunity for a new financial fresh start! (In fact, over 2,000 customers have freed themselves from credit nationwide over the last six years with this attorney authored and monitored program!).

And, once you have legally resolved your debt and restored your credit, there are many other cutting edge strategies to get you back in tip top financial shape quickly and help you streamline your path to retirement: top-quality passive income systems to help your IRAs and portfolio rebound from stock market and real estate collapses.

Good luck,
consumersdebthelp.com

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Technorati Tags: Bankruptcies, bankruptcy, Better Life, chapter 13, chapter 7, Credit Card Debt, Credit Card Defaults, Credit Debt, Debt Crisis, Debt Freedom, Debt Problems, debt relief, Dire Straits, Economic Climate, Forward Thinker, Great News, Households, Hushed Whispers, Lament, Meltdown, Politician, Recession, Social Sector, Stigmas

Tags: Bankruptcies, bankruptcy, Better Life, chapter 13, chapter 7, Credit Card Debt, Credit Card Defaults, Credit Debt, Debt Crisis, Debt Freedom, Debt Problems, debt relief, Dire Straits, Economic Climate, Forward Thinker, Great News, Households, Hushed Whispers, Lament, Meltdown, Politician, Recession, Social Sector, Stigmas
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Learn How Does Foreclosure Work So You Can Use Efficacious Yet ‘Little Known’ Techniques To Avoid It!

Wednesday, October 7th, 2009

Considering the question how does foreclosure work, is an important part of beginning to try to put off the foreclosure process. When you understand how the system works , you will be better equipped to get yourself more time. This time is too valuable , especially considering that a lot of families do not qualify for aid through President Obama’s Mortgage Modification Plan.

Your first aim as a homeowner is to understand the process of foreclosure, and the timeline it follows . The process varies depending on what state you dwell in, who your lender is, and what type of mortgage you have.

The process is generally the same, and is supported by Federal Real Estate Laws that dictate the definite procedure. There is a specific set of steps that must be done by the lender when they foreclose on your property. Typically the process starts when they file the foreclosure after several defaults on the mortgage payments .

Next, you will get a notice of foreclosure explaining that your lender has filed a foreclosure judgment against you. This is the item at which you can begin working out a deal with your lender to settle your best opportunity for saving your home: a repayment agreement.

Once you have your notice, you might consider making an appointment in court. This at the very least can buy you some months or even probably more time, dependent on how long it takes the court to hear your case.

How does foreclosure work if I am unable to come to an agreement with my lender and if my hearing fails? One variant is to file for bankruptcy. This will also collide the foreclosure process, by probably delaying foreclosure for years. This is, however, a drastic measure and you could stay in your home for years before doing that.

If you are not able to win your hearing, like the numerous majority of people, then the bank will be able to take your property and sell it at auction. You will only win a few weeks to vacate the property, or you will be forced to leave .

There are no guarantees with battling a foreclosure, but you can increase your chances of keeping your home for a longer term by using some very effective yet little known techniques .

Foreclosure is a process and there are methods for you to delay that process and remain in your home mortgage-free for a few years even if you do not qualify for The Obama’s Loan Modification Plan or any other Program, even if you have not income at all. Unfortunately , a lot of people don’t know about the great number of tricks and strategies available for fighting foreclosure.

To stop foreclosure and remain in your home is of up-most importance not only because it can potentially save you thousands of dollars, but because it will ensure that you maintain the possibility to get the right for future programs.

For the info about foreclosed homes FL and foreclosed Florida homes – visit this foreclosure Florida homes.

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Technorati Tags: Aim, Appointment, Auction, bankruptcy, Drastic Measure, Federal Real Estate, finance, foreclosed Florida homes, foreclosed homes FL, Foreclosure, Foreclosure Process, Judgment Against, Mortgage Payments, Mortgage Process, Obama, real estate, Real Estate Laws, Repayment Agreement, Timeline

Tags: Aim, Appointment, Auction, bankruptcy, Drastic Measure, Federal Real Estate, finance, foreclosed Florida homes, foreclosed homes FL, Foreclosure, Foreclosure Process, Judgment Against, Mortgage Payments, Mortgage Process, Obama, real estate, Real Estate Laws, Repayment Agreement, Timeline
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What Are My Choices To Prevent Foreclosure?

Friday, July 10th, 2009

You may not know it, but there are many options available to you to prevent the sale of your home. Can bankruptcy prevent a foreclosure? Yes. Can a mortgage modificationstop foreclosure? Yes. Are there government programs available to stop foreclosure? Yes. Let’s examine each of these options, and which option may be the wisest decision for you.

A Chapter 13 bankruptcy can stop foreclosure, and if you have a 2nd mortgage that values more than your home is worth, there may be an opportunity for the bankruptcy judge to wipe away the second mortgage. This is because a Chapter 13 bankruptcy is designed to restructure your unsecured debt and allow you to pay back your creditors at a discounted rate. The courts will bundle all of your credit card and medical debts and give you one monthly payment to keep up with throughout the life of the bankruptcy. Because your second mortgage may no longer be ‘secured’ by the value of the property, the judge has the option to absolve the debt, or enter into a reduced payment plan.

The drawbacks of using a bankruptcy to stop foreclosure are that the 1st mortgage will not be touched or modified (you will continue payments under the original loan terms), your credit is blemished for 7 years, bankruptcy is a public record, and the hassles and headaches of the bankruptcy process.

You may need to Need to refinance to stop foreclosure. This is only an option if you have not made a late payment on your mortgage in the past 12 months AND if your mortgage amount does not exceed your home value by more than 5%. There are great government programs to consider for a refinance if you meet these criteria.

Thegovernment program put in place by the Obama administration has created a great opportunity to refinance, as long as you are not too ‘upside down’ and you are current on your mortgage.

Another option for you to consider is a loan modification. A loan modification is the changing of the terms of the loan to affordable levels. This can be done through the reduction of interest rate, extending the length of the mortgage, converting to an interest only, and even reducing the principal loan amount on the mortgage. Whereas a bankruptcy will not change the terms of your mortgage, a loan modification will.

If your mortgage is owned by Fannie Mae or Freddie Mac, you may even qualify for the Making Home Affordable Mortgage Modification plan. Through this government modification plan, the bank must follow certain guidelines. Here are the rules: Your bank must modify the terms of your mortgage to achieve a ‘target debt to income’ ratio. The target DTI is 37%. This means that your mortgage payment must not exceed more than 37% of your monthly net income. The bank can achieve this target DTI by first lowering your interest rate to as low as 2%, and secondly by extending the terms of your loan to as long as 40 years. If neither of these actions achieves the target DTI, then the bank ‘may’ reduce your principal loan amount.

LoanModUS.com is here to help you determine which fit to stop foreclosure is best for you. Whether it is through loan modification, refinance, or bankruptcy, LoanModUS.com is here to help. You can reach us on the LoanModUS.com website, or call 1-888-500-2414 for a FREE financial evaluation and home loan modification help.

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Tags: 12 Months, bankruptcy, Bankruptcy Judge, Bankruptcy Process, Chapter 13 Bankruptcy, Choices, Credit Card, Creditors, Foreclosure, Government Foreclosure, Government Programs, Hassles, Headaches, Home Value, loan modification, Loan Terms, Medical Debts, modification, Money, Mortgage Amount, Mortgage Foreclosure, Public Record, real estate, Second Mortgage, Unsecured Debt
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