Because of some reasons or others, if you have caught yourself in the heavy piles of various kinds of debts, you might be thinking about filing bankruptcy to relieve the pressure of debt. However, have you explored all your options or bankruptcy alternatives? You should note that the bankruptcy is going to be there on your financial record for the next seven to ten years. In this age where many things run on credit, a person with a bad credit score will have a hard time. So, are you sure that filing bankruptcy is the only thing that can bring for you the much desired debt relief? If you are not sure, it is advisable that you work out all your options before you go ahead and file a court petition for bankruptcy. It will help you decide whether your decision of filing bankruptcy is a right step towards earning you a debt-free life. It is important because of the fact that bankruptcy comes with lots of severe negative impacts on your future financial life.
Review Your Income And Expenses
The first thing that you have to do is to do an extensive review of your income and expenses. Your objective should be to figure out how much money will be left to you on a monthly basis after deducting all the necessary expenses – the day-to-day expenses that you cannot live without.
Work Out The Possibilities Of The Loan Repayment With The Money Left
Now with the money left, you will have to work out whether it is possible for you to repay all the loans that you owe in the next three years. It does not matter whether you have taken loans for one year or six months, if you are sure that you can repay the loans in the next three years, you can negotiate with your creditors regarding that. Here, you should note that even your creditors will not like you to file for bankruptcy because that will risk the money they have lent and they may not be able to get their money back. Therefore, it is very likely that the creditors will readily agree to extend the loan tenure. However, they may increase the amount of interest payable, but again, the bottom line is that paying a higher interest rate is better than filing bankruptcy.
Availing The Services Of An Expert Credit Counselor
If you are not able to work out all these things yourself and you find things a bit complicated, it is recommended for you to avail the valuable services of an expert credit counselor. They will show you the way to avoid filing bankruptcy and pay off all your debts with the means available to you. They will teach you how to manage your finances accordingly in an effective manner.
When you are neck deep in debt, filing bankruptcy seems the only option. It is true that bankruptcy helps you to get rid of debt burden and collection calls, but at the same time, it creates an indelible blot on your creditworthiness. This is why experts believe that one should consider all bankruptcy alternatives and ways to avoid bankruptcy. If you have decided in favor of filing for bankruptcy, contact a bankruptcy lawyer or bankruptcy attorney to give you advice on filing bankruptcy.
Article Source: http://EzineArticles.com/?expert=Saurabh_K_Jain
Tuesday, September 11, 2007
Bankruptcy: What To Expect If You File For Bankruptcy
First, understand that filing bankruptcy should be a last resort if you have borrowed money and have absolutely no way or repaying it. Filing for bankruptcy will have a negative effect on your credit history for 10 years or longer and may also adversely impacts your quality of life.
If you do declare bankruptcy, here are some things to expect. First, you will need to be prepared to explain to a bankruptcy judge or trustee how you got yourself into such a financial pickle. You will be asked some very tough questions and need to be ready with good answers. It will not be an easy or fun task.
The only credit cards you will probably be allowed to keep are those that were completely paid off before you declared bankruptcy. You will most likely lose all others.
Once you file for bankruptcy, you will have trouble getting a mortgage, a loan, new credit cards, life insurance and even some jobs. This is because there are employers who are skittish about hiring people who have filed for bankruptcy as they feel it demonstrates a lack of restraint or self-discipline.
Some of your debts will not be discharged. This includes child support, student loans and back taxes. So if you think filing for bankruptcy will relieve you of that $12,000 you owe Uncle Sam, think again.
Keep in mind that a bankruptcy will stay on your credit report for at least 10 years. This means that if you’re 35, you’ll be 45 before you can apply for a credit card, a mortgage, a loan or a job without the potential lender or employer seeing that you were once bankrupt.
The good news
Despite what you may have been told, it is possible to get a loan after filing for bankruptcy. It is called a bankruptcy loan and its purpose is to help you get back on your feet and reestablish your finances.
A bankruptcy loan is usually available only after your creditors have been paid and your bankruptcy dismissed. If you filed a Chapter 13 (reorganization) bankruptcy, your creditors must be paid in full before you apply for a large loan. And if you filed a Chapter 7 bankruptcy, you must wait at least two years after the bankruptcy to apply.
The best way is to prove to potential creditors that you are no longer a bad risk is by paying all your bills on time, and showing that you can now handle a credit card. Once you have a track record for paying your bills on time, and have successfully maintained a credit card, you can ask your creditors for reference letters to prove to potential lenders that you have become credit worthy.
You should also know that there are lenders out there who will offer you a loan while you are still in bankruptcy as a way of paying off your creditors. Don’t be lured into this. It usually just paves the way for further disaster as you are simply adding debt to debt. As a wise man once said, you just can’t borrow your way out of debt.
Going through bankruptcy can be a painful and embarrassing experience. Be sure you consider all possible alternatives before filing. You might find that bankruptcy is easy to get into but very, very difficult to get out of.
Here's a good idea. If you're looking for a great place to vacation, choose Denver. Denver is pretty unique in that it offers the best of two worlds -- the fun things to do and see that you find only in a big, sophisticated city, and the breathtaking scenery, unforgettable vistas and amazing wildlife you find only in our nearby Rocky Mountains. To learn more about the best Denver vacation, just go to Just go to http://www.best-denver-vacation.com
Douglas Hanna has lived in the Denver area for nearly 35 years and is an expert on both Denver and Colorado. He is also the author of more than 120 articles on Denver and Internet marketing.
Article Source: http://EzineArticles.com/?expert=Douglas_Hanna
If you do declare bankruptcy, here are some things to expect. First, you will need to be prepared to explain to a bankruptcy judge or trustee how you got yourself into such a financial pickle. You will be asked some very tough questions and need to be ready with good answers. It will not be an easy or fun task.
The only credit cards you will probably be allowed to keep are those that were completely paid off before you declared bankruptcy. You will most likely lose all others.
Once you file for bankruptcy, you will have trouble getting a mortgage, a loan, new credit cards, life insurance and even some jobs. This is because there are employers who are skittish about hiring people who have filed for bankruptcy as they feel it demonstrates a lack of restraint or self-discipline.
Some of your debts will not be discharged. This includes child support, student loans and back taxes. So if you think filing for bankruptcy will relieve you of that $12,000 you owe Uncle Sam, think again.
Keep in mind that a bankruptcy will stay on your credit report for at least 10 years. This means that if you’re 35, you’ll be 45 before you can apply for a credit card, a mortgage, a loan or a job without the potential lender or employer seeing that you were once bankrupt.
The good news
Despite what you may have been told, it is possible to get a loan after filing for bankruptcy. It is called a bankruptcy loan and its purpose is to help you get back on your feet and reestablish your finances.
A bankruptcy loan is usually available only after your creditors have been paid and your bankruptcy dismissed. If you filed a Chapter 13 (reorganization) bankruptcy, your creditors must be paid in full before you apply for a large loan. And if you filed a Chapter 7 bankruptcy, you must wait at least two years after the bankruptcy to apply.
The best way is to prove to potential creditors that you are no longer a bad risk is by paying all your bills on time, and showing that you can now handle a credit card. Once you have a track record for paying your bills on time, and have successfully maintained a credit card, you can ask your creditors for reference letters to prove to potential lenders that you have become credit worthy.
You should also know that there are lenders out there who will offer you a loan while you are still in bankruptcy as a way of paying off your creditors. Don’t be lured into this. It usually just paves the way for further disaster as you are simply adding debt to debt. As a wise man once said, you just can’t borrow your way out of debt.
Going through bankruptcy can be a painful and embarrassing experience. Be sure you consider all possible alternatives before filing. You might find that bankruptcy is easy to get into but very, very difficult to get out of.
Here's a good idea. If you're looking for a great place to vacation, choose Denver. Denver is pretty unique in that it offers the best of two worlds -- the fun things to do and see that you find only in a big, sophisticated city, and the breathtaking scenery, unforgettable vistas and amazing wildlife you find only in our nearby Rocky Mountains. To learn more about the best Denver vacation, just go to Just go to http://www.best-denver-vacation.com
Douglas Hanna has lived in the Denver area for nearly 35 years and is an expert on both Denver and Colorado. He is also the author of more than 120 articles on Denver and Internet marketing.
Article Source: http://EzineArticles.com/?expert=Douglas_Hanna
Do It Yourself Bankruptcy - Some Things to Know First
Bankruptcy, although necessary for many individuals, should be utilized as a last resort once all other options have been reviewed first. One of the first things that a person can do is review their own spending patterns or habits before seeking help. If acted upon before the problem reaches the point of no return it is conceivable that there may be no need for outside intervention.
There are several resources available online that are designed to help an individual create a household budget without any cost. Also most credit counseling agencies should be able to provide you with a household budget at no cost. There are also bankruptcy attorneys that will assist in this as well, however it is paramount that these services remain free of cost. Be leery of Credit Counselors or Bankruptcy Attorneys that charge upfront for assisting in the creation of a household budget, as it seems to me that if someone is willing to charge you in order to help you get out of debt on your own then it might be that there intentions go beyond wanting to help you and fall more in line with wanting to help themselves. Now don’t get me wrong, if there is a continual service that they provide then by all means there should be some fee charged.
So before attempting a “Do it yourself bankruptcy” you may want to seek advice from an actual Bankruptcy Attorney or a certified Credit Counseling Agency first. Just be sure that the initial advice is provided at no cost. Also if continual assistance is needed remember to shop around, fees for practically the same services can vary widely from one organization to another. Also make sure the organization that you choose to work with has the support services available to make your experience with them the best it can be.
Written by Rick Munster
Rick Munster is the Media Planner for http://www.DebtReductionServices.com.
Article Source: http://EzineArticles.com/?expert=Rick_Munster
There are several resources available online that are designed to help an individual create a household budget without any cost. Also most credit counseling agencies should be able to provide you with a household budget at no cost. There are also bankruptcy attorneys that will assist in this as well, however it is paramount that these services remain free of cost. Be leery of Credit Counselors or Bankruptcy Attorneys that charge upfront for assisting in the creation of a household budget, as it seems to me that if someone is willing to charge you in order to help you get out of debt on your own then it might be that there intentions go beyond wanting to help you and fall more in line with wanting to help themselves. Now don’t get me wrong, if there is a continual service that they provide then by all means there should be some fee charged.
So before attempting a “Do it yourself bankruptcy” you may want to seek advice from an actual Bankruptcy Attorney or a certified Credit Counseling Agency first. Just be sure that the initial advice is provided at no cost. Also if continual assistance is needed remember to shop around, fees for practically the same services can vary widely from one organization to another. Also make sure the organization that you choose to work with has the support services available to make your experience with them the best it can be.
Written by Rick Munster
Rick Munster is the Media Planner for http://www.DebtReductionServices.com.
Article Source: http://EzineArticles.com/?expert=Rick_Munster
Bankruptcy Attorney - Why You Need a Bankruptcy Attorney
A bankruptcy attorney is one that specifically works in the area of law surrounding the various types of bankruptcy one can file for. They have to be licensed to practice as a professional legal advisor in the state they represent. They also have to represent the Federal jurisdiction they are under. Since they focus on keeping up with the laws that pertain to bankruptcy they are considered to be experts in that field.
A bankruptcy attorney has a very challenging job though because that world of bankruptcy is one that is quite complicated. While many states give individuals and businesses the option of representing themselves in filing their bankruptcy claim, it is not recommended. Almost every case where the individual has represented themselves the result has been a filing that is delayed, dismissed, or they are charged with contempt of court for their actions.
Another issue that arises from representing yourself in a bankruptcy is the possibility of being charged with a crime. The result of that can be a lengthy prison term. It is best to have proper legal council advising you every step of the way. They need to be the one to file the petitions on your behalf.
Your bankruptcy attorney will first take a close look at your particular issues. They will have to determine if you are eligible to file for bankruptcy or not. This is done during a consultation where an assessment is completed at no charge to you. There is a great deal of paperwork that has to be completed prior to this assessment by the individual. This paperwork is a legally binding document that both parties will continue to consult during the bankruptcy process. If inconsistencies are noted then they will have to be investigated by the bankruptcy attorney.
The assessment process is the best information any bankruptcy attorney will have available to make the determination for bankruptcy. If there is enough to base it one then the next step is deciding which chapter to file under for debt relief. Most people file under Chapter 11 because it involves liquidating the debt. Of course the particular laws for the state where the petition is being filed have to be considered as well.
This article is not to provide you with any legal advice. It is only to explain to you the value of a bankruptcy attorney should you be considering filing for bankruptcy. They are experts in the field and they can help you make sense of the laws surrounding the filing process.
If you found this information on Bankruptcy Attorney useful, you'll want to read this article about Filing Bankruptcy
Article Source: http://EzineArticles.com/?expert=Caleb_Liu
A bankruptcy attorney has a very challenging job though because that world of bankruptcy is one that is quite complicated. While many states give individuals and businesses the option of representing themselves in filing their bankruptcy claim, it is not recommended. Almost every case where the individual has represented themselves the result has been a filing that is delayed, dismissed, or they are charged with contempt of court for their actions.
Another issue that arises from representing yourself in a bankruptcy is the possibility of being charged with a crime. The result of that can be a lengthy prison term. It is best to have proper legal council advising you every step of the way. They need to be the one to file the petitions on your behalf.
Your bankruptcy attorney will first take a close look at your particular issues. They will have to determine if you are eligible to file for bankruptcy or not. This is done during a consultation where an assessment is completed at no charge to you. There is a great deal of paperwork that has to be completed prior to this assessment by the individual. This paperwork is a legally binding document that both parties will continue to consult during the bankruptcy process. If inconsistencies are noted then they will have to be investigated by the bankruptcy attorney.
The assessment process is the best information any bankruptcy attorney will have available to make the determination for bankruptcy. If there is enough to base it one then the next step is deciding which chapter to file under for debt relief. Most people file under Chapter 11 because it involves liquidating the debt. Of course the particular laws for the state where the petition is being filed have to be considered as well.
This article is not to provide you with any legal advice. It is only to explain to you the value of a bankruptcy attorney should you be considering filing for bankruptcy. They are experts in the field and they can help you make sense of the laws surrounding the filing process.
If you found this information on Bankruptcy Attorney useful, you'll want to read this article about Filing Bankruptcy
Article Source: http://EzineArticles.com/?expert=Caleb_Liu
Information For Filing Bankruptcy
If you are looking for information for filing bankruptcy, you have come to the right place. This article intends to explore the simple steps in filling bankruptcy.
There Is No Other Solution
The first step is to make sure that filing bankruptcy is the only option left. You have worked out all the other solutions but nothing is working. What it means is that you will have try to avoid filing bankruptcy as much as possible. For example, before you go ahead and file for bankruptcy, it is important that you avail the services of an expert credit counselor. With the addition of the new bankruptcy laws under the Bankruptcy Abuse Prevention and Consumer Protection Act, it is now mandatory for the debtors to obtain some consumer credit counseling from an entity approved by the U.S. trustee. You have to do it within six months of filing bankruptcy. This will convince the court that you have tried all the other alternatives beforehand. This way, it will make it easier for you to defend your bankruptcy claim.
Hiring A Bankruptcy Attorney
The next step is to hire a bankruptcy attorney. In fact, the bankruptcy laws are very complicated ones and it is not easy for a common man to understand the intricacies involved in the same. Therefore, it is important that you hire a bankruptcy attorney to handle your specific bankruptcy case. You must shop around for the best bankruptcy lawyers. Do your research thoroughly. You should also note that the bankruptcy laws are interpreted in various states in various ways. Therefore, make sure that the bankruptcy attorney you have chosen is specialized in the specific bankruptcy laws of your state.
Type Of Bankruptcy
The next step is to choose the right type of bankruptcy. There are various types of bankruptcy as defined in the different chapters of the bankruptcy code, including chapter 7, 11,12, 13 etc. Your bankruptcy attorney will help you in this regard. He or she will study the details of your case and then suggest you the best type of bankruptcy depending upon your specific case.
Review The Cost Of Filing Bankruptcy
There are various types of expenses associated with filing bankruptcy. The very fact that you are filing bankruptcy is a clear indication that you are into deep financial trouble. Even the filing fees have risen to a much higher amount in the past few years. Other than the filing fees, you have to pay Attorney fees and other expenses. Therefore, it is very important for you to assess the cost of filing bankruptcy beforehand.
If you are looking for information for filing bankruptcy, visit Filing Bankruptcy. This site guides you with simple steps involved in the procedure for filing bankruptcy, role of bankruptcy lawyers, tips for using the services of a bankruptcy attorney and all the information you need to know about bankruptcy code.
Article Source: http://EzineArticles.com/?expert=Apurva_Shree
There Is No Other Solution
The first step is to make sure that filing bankruptcy is the only option left. You have worked out all the other solutions but nothing is working. What it means is that you will have try to avoid filing bankruptcy as much as possible. For example, before you go ahead and file for bankruptcy, it is important that you avail the services of an expert credit counselor. With the addition of the new bankruptcy laws under the Bankruptcy Abuse Prevention and Consumer Protection Act, it is now mandatory for the debtors to obtain some consumer credit counseling from an entity approved by the U.S. trustee. You have to do it within six months of filing bankruptcy. This will convince the court that you have tried all the other alternatives beforehand. This way, it will make it easier for you to defend your bankruptcy claim.
Hiring A Bankruptcy Attorney
The next step is to hire a bankruptcy attorney. In fact, the bankruptcy laws are very complicated ones and it is not easy for a common man to understand the intricacies involved in the same. Therefore, it is important that you hire a bankruptcy attorney to handle your specific bankruptcy case. You must shop around for the best bankruptcy lawyers. Do your research thoroughly. You should also note that the bankruptcy laws are interpreted in various states in various ways. Therefore, make sure that the bankruptcy attorney you have chosen is specialized in the specific bankruptcy laws of your state.
Type Of Bankruptcy
The next step is to choose the right type of bankruptcy. There are various types of bankruptcy as defined in the different chapters of the bankruptcy code, including chapter 7, 11,12, 13 etc. Your bankruptcy attorney will help you in this regard. He or she will study the details of your case and then suggest you the best type of bankruptcy depending upon your specific case.
Review The Cost Of Filing Bankruptcy
There are various types of expenses associated with filing bankruptcy. The very fact that you are filing bankruptcy is a clear indication that you are into deep financial trouble. Even the filing fees have risen to a much higher amount in the past few years. Other than the filing fees, you have to pay Attorney fees and other expenses. Therefore, it is very important for you to assess the cost of filing bankruptcy beforehand.
If you are looking for information for filing bankruptcy, visit Filing Bankruptcy. This site guides you with simple steps involved in the procedure for filing bankruptcy, role of bankruptcy lawyers, tips for using the services of a bankruptcy attorney and all the information you need to know about bankruptcy code.
Article Source: http://EzineArticles.com/?expert=Apurva_Shree
Buying A Home After Bankruptcy - Get A Mortgage Loan After Bankruptcy
If you have a recent bankruptcy on your credit and are looking to get financing for a home, there is hope. Buying a home with bad credit will just put more emphasis on the other two factors needed to get a mortgage loan, which are; income verification and a down payment.
After bankruptcy most lenders want you to wait at least 2 years from the time of the bankruptcy discharge before they will consider you for a mortgage loan. After the two year waiting period is over, you should be able to get financing easily. You should also be able to get 100% financing as well. You can usually achieve this as long as at least most of your payments have been reported to the credit bureau as having been paid on time since the discharge of your bankruptcy.
If you are looking to get a mortgage loan after bankruptcy sooner than the 2 years from the time of discharge, you will need to have almost flawless payment history since your bankruptcy discharge. Also, you may need to have a down payment. If you have even 3-5% to use as a down payment, that may be enough to help you get approved.
There are ways to get a down payment for your mortgage besides having the money saved in the bank. Here are some ideas of ways to do that:
1. Borrow or ask for a gift from relatives. After you have financed the house, you can usually go and take out a 2nd or 3rd mortgage up to the full value of your house, and then you could repay the relatives. Keep in mind that if you intend the money to be as a loan only from the relatives, you would need to disclose that to the lender before you close. Lenders usually have regulations about where the down payment is coming from and if you are not honest, it could be considered defrauding a lender.
2. There are down payment assistance programs like Neighborhood Gold or the Nehemiah program. These programs basically aid the seller in helping you with a down payment. Receiving a down payment from the seller of the property is illegal, but through these programs, it is legal. There are also other down payment assistance programs which are grants and do not need to be repaid or paid for by anyone. To find out about these, do a search on “down payment assistance” with your favorite search engine.
3. You could cash out a 401K or another investment and like in the first example, repay yourself with a 2nd or 3rd mortgage after the loan has closed.
Mortgage loans after bankruptcy are getting to be much easier to obtain these days. If you would like to see a list of our preferred bad credit mortgage lenders, visit this page: After Bankruptcy Mortgage Lenders.
Carrie Reeder is the owner of ABC Loan Guide. ABC Loan Guide is an informational loan website with informative articles and helpful lists of recommended lenders for bad credit mortgage loans.
Article Source: http://EzineArticles.com/?expert=Carrie_Reeder
After bankruptcy most lenders want you to wait at least 2 years from the time of the bankruptcy discharge before they will consider you for a mortgage loan. After the two year waiting period is over, you should be able to get financing easily. You should also be able to get 100% financing as well. You can usually achieve this as long as at least most of your payments have been reported to the credit bureau as having been paid on time since the discharge of your bankruptcy.
If you are looking to get a mortgage loan after bankruptcy sooner than the 2 years from the time of discharge, you will need to have almost flawless payment history since your bankruptcy discharge. Also, you may need to have a down payment. If you have even 3-5% to use as a down payment, that may be enough to help you get approved.
There are ways to get a down payment for your mortgage besides having the money saved in the bank. Here are some ideas of ways to do that:
1. Borrow or ask for a gift from relatives. After you have financed the house, you can usually go and take out a 2nd or 3rd mortgage up to the full value of your house, and then you could repay the relatives. Keep in mind that if you intend the money to be as a loan only from the relatives, you would need to disclose that to the lender before you close. Lenders usually have regulations about where the down payment is coming from and if you are not honest, it could be considered defrauding a lender.
2. There are down payment assistance programs like Neighborhood Gold or the Nehemiah program. These programs basically aid the seller in helping you with a down payment. Receiving a down payment from the seller of the property is illegal, but through these programs, it is legal. There are also other down payment assistance programs which are grants and do not need to be repaid or paid for by anyone. To find out about these, do a search on “down payment assistance” with your favorite search engine.
3. You could cash out a 401K or another investment and like in the first example, repay yourself with a 2nd or 3rd mortgage after the loan has closed.
Mortgage loans after bankruptcy are getting to be much easier to obtain these days. If you would like to see a list of our preferred bad credit mortgage lenders, visit this page: After Bankruptcy Mortgage Lenders.
Carrie Reeder is the owner of ABC Loan Guide. ABC Loan Guide is an informational loan website with informative articles and helpful lists of recommended lenders for bad credit mortgage loans.
Article Source: http://EzineArticles.com/?expert=Carrie_Reeder
New Bankruptcy Law Makes it Harder to Stop Foreclosure
On October 17, 2005 President Bush’s sweeping bankruptcy reform law goes into effect forever changing the rules of debt collection in this natiion. Consumer advocates and the public appear to be completely unaware of the total and complete victory of the creditors under the new legislation. This article opens the door to the Trogan Horse so that consumers can prepare themselves for the worse.
The most important aspect of the bankruptcy code was the “automatic stay” provision. This allowed consumers to file for bankruptcy at anytime during the creditor’s collection process putting an immediate stop to all contact and collection activities from the creditor. The new law requires that a debtor receive credit counseling from an approved non-profit credit counseling agency for 180 days prior to filing Chapter 7 or Chapter 13 bankruptcy.
While this may sound benevolent, a much closer look at the practical effect of this provision reveals the crafty peeling of the debtor’s rights. The 180 day requirement is to provide the credit counseling agency the opportunity to work out payment plans with creditors. However, during this same period of time the creditor is not restrained from collection efforts. For example, Margaret is a homeowner in Jacksonville, Florida and is six months behind on her mortgage. As a rule, credit counseling agencies only work with credit card companies and have little or no training with dealing with mortgage companies.
After receiving foreclosure papers, Margaret goes to see her attorney to file for bankruptcy and is told that she must first seek credit counseling before filing for bankruptcy protection. Meanwhile, the foreclosure proceeds on schedule and a sale date is set 120 days later. However, Margaret still has not completed her 180 day requirement. What will happen to Margaret’s home? That’s right! The home will be sold and she cannot stop the sale by filing bankruptcy.
This is the most sweeping shift in debt collection in the past 50 years. Margaret’s only hope will be to work out a repayment plan or a loan restructure with her mortgage company. This is a process called loss mitigation and is explained in great detail to consumers in our new book, How to Save Your Home, ISBN#09753754-0-7, $19.95, SYH University, LLC, 2005 which is sold at Amazon.com.
Loss Mitigation works because lenders lose an average of $28,000 to $50,000 per foreclosure nationwide. It is a myth that the lender wants your home and makes a profit off of foreclosure. A lender has to pay attorney fees, court and collection costs, maintain fire insurance, hire a real estate professional, repair structural and other damage to the home, and pay property taxes. The homeowner can work out an agreement with the lender in over 90% of cases. Our company has provided housing counseling service to thousands of homeowners and loss mitigation absolutely works.
In conclusion, it is up to the consumer to educate and prepare themselves for worse case scenarios. How to Save Your Home is an excellent training tool and will teach homeowners how to protect themselves under the new bankruptcy law. Most Americans do not have health or disability insurance and are vulnerable to job layoffs because of a stagnant economy. Who amongst us is immune to heart attacks, business failure, strokes, law suits, tax liens or other challenges that life sometimes presents. One pay check is literally what separates many families from home security and despair and the new bankruptcy law will severly punish those who slip behind on their mortgage payments.
Herbert Addison, JD, CHC is a Certified Housing Counselor and a member of the Virginia Association of Housing Counselors. Mr. Addison is co-author of the new book, How to Save Your Home, and has helped thousands of families to save their homes from foreclosure sales.
Article Source: http://EzineArticles.com/?expert=Herbert_Addison
The most important aspect of the bankruptcy code was the “automatic stay” provision. This allowed consumers to file for bankruptcy at anytime during the creditor’s collection process putting an immediate stop to all contact and collection activities from the creditor. The new law requires that a debtor receive credit counseling from an approved non-profit credit counseling agency for 180 days prior to filing Chapter 7 or Chapter 13 bankruptcy.
While this may sound benevolent, a much closer look at the practical effect of this provision reveals the crafty peeling of the debtor’s rights. The 180 day requirement is to provide the credit counseling agency the opportunity to work out payment plans with creditors. However, during this same period of time the creditor is not restrained from collection efforts. For example, Margaret is a homeowner in Jacksonville, Florida and is six months behind on her mortgage. As a rule, credit counseling agencies only work with credit card companies and have little or no training with dealing with mortgage companies.
After receiving foreclosure papers, Margaret goes to see her attorney to file for bankruptcy and is told that she must first seek credit counseling before filing for bankruptcy protection. Meanwhile, the foreclosure proceeds on schedule and a sale date is set 120 days later. However, Margaret still has not completed her 180 day requirement. What will happen to Margaret’s home? That’s right! The home will be sold and she cannot stop the sale by filing bankruptcy.
This is the most sweeping shift in debt collection in the past 50 years. Margaret’s only hope will be to work out a repayment plan or a loan restructure with her mortgage company. This is a process called loss mitigation and is explained in great detail to consumers in our new book, How to Save Your Home, ISBN#09753754-0-7, $19.95, SYH University, LLC, 2005 which is sold at Amazon.com.
Loss Mitigation works because lenders lose an average of $28,000 to $50,000 per foreclosure nationwide. It is a myth that the lender wants your home and makes a profit off of foreclosure. A lender has to pay attorney fees, court and collection costs, maintain fire insurance, hire a real estate professional, repair structural and other damage to the home, and pay property taxes. The homeowner can work out an agreement with the lender in over 90% of cases. Our company has provided housing counseling service to thousands of homeowners and loss mitigation absolutely works.
In conclusion, it is up to the consumer to educate and prepare themselves for worse case scenarios. How to Save Your Home is an excellent training tool and will teach homeowners how to protect themselves under the new bankruptcy law. Most Americans do not have health or disability insurance and are vulnerable to job layoffs because of a stagnant economy. Who amongst us is immune to heart attacks, business failure, strokes, law suits, tax liens or other challenges that life sometimes presents. One pay check is literally what separates many families from home security and despair and the new bankruptcy law will severly punish those who slip behind on their mortgage payments.
Herbert Addison, JD, CHC is a Certified Housing Counselor and a member of the Virginia Association of Housing Counselors. Mr. Addison is co-author of the new book, How to Save Your Home, and has helped thousands of families to save their homes from foreclosure sales.
Article Source: http://EzineArticles.com/?expert=Herbert_Addison
NJ Bankruptcy Law
Under NJ bankruptcy law, there are two exemption schemes that you can use to keep your personal property. An exemption scheme allows you to keep up to a certain dollar amount of some personal property and the entire amount of other personal property. You can choose the exemption scheme that will benefit you the most based on your current circumstances.
First Exemption Scheme
The first exemption scheme allows you to claim fewer exemptions than the second exemption scheme. Under NJ bankruptcy law, you can exempt the property included in this scheme so that it is not taken away from you to pay your debts. Under the first scheme, you can exempt the following property:
Tools of your trade valued at up to $1,850 - This allows contractors, mechanics, and other professionals who need tools to keep them on hand so that they can continue earning an income.
Motor vehicle valued at up to $2,950 – This is helpful if you need to keep your vehicle to get to work or transport your family to school, medical appointments, and other locations.
Health and medical devices – You are allowed to keep all of the devices that help you maintain your health. This can include canes, walkers, diabetic supplies, and oxygen tanks.
Your home up to $18,450 – This allows you to keep your primary home so that you still have a place to live after you have filed for bankruptcy.
The first exemption scheme also allows you to exempt life insurance payments for the person who supported you financially, unmatured life insurance contracts, alimony and child support needed for support, ERISA-qualified benefits needed for support, household goods up to a total of $9,850 (limited to $475 maximum per item), jewelry up to $1,225, and a wild card that is $925 of any personal property or up to $9,250 of any unused homestead exemption.
Second Exemption Scheme
The second exemption scheme allows you to keep additional personal property. Under the second scheme, you can exempt the following property in accordance with NJ bankruptcy law.
Clothing – This gives you the opportunity to keep clothing needed for work, school, and special events.
Crime victims’ compensation – This allows you to keep any compensation you received due to being the victim of a crime.
Burial plots – This allows you to retain the interest you have in any burial plots designated for you or your family members.
Annuity contract proceeds – This exemption allows you to continue receiving up to $500 per month of annuity contract proceeds.
Other exemptions available under the second exemption scheme and NJ bankruptcy law include up to $1,000 of shares of stock or interest in a corporation, household goods and furniture up to $1,000, public employees’ pensions, ERISA-qualified benefits, property of a business partnership, health or disability benefits, disability or death benefits for military personnel, disability or death benefits for civil or government employees, group life or health policy proceeds, and wages and allowances received by military personnel.
NJ bankruptcy law can be difficult to understand. If you need more information, contact a local bankruptcy attorney for more details.
Looking for the best NJ Lawyer ? Look no further, check out our New Jersey Lawyers website today!
Article Source: http://EzineArticles.com/?expert=Michael_Tasner
First Exemption Scheme
The first exemption scheme allows you to claim fewer exemptions than the second exemption scheme. Under NJ bankruptcy law, you can exempt the property included in this scheme so that it is not taken away from you to pay your debts. Under the first scheme, you can exempt the following property:
Tools of your trade valued at up to $1,850 - This allows contractors, mechanics, and other professionals who need tools to keep them on hand so that they can continue earning an income.
Motor vehicle valued at up to $2,950 – This is helpful if you need to keep your vehicle to get to work or transport your family to school, medical appointments, and other locations.
Health and medical devices – You are allowed to keep all of the devices that help you maintain your health. This can include canes, walkers, diabetic supplies, and oxygen tanks.
Your home up to $18,450 – This allows you to keep your primary home so that you still have a place to live after you have filed for bankruptcy.
The first exemption scheme also allows you to exempt life insurance payments for the person who supported you financially, unmatured life insurance contracts, alimony and child support needed for support, ERISA-qualified benefits needed for support, household goods up to a total of $9,850 (limited to $475 maximum per item), jewelry up to $1,225, and a wild card that is $925 of any personal property or up to $9,250 of any unused homestead exemption.
Second Exemption Scheme
The second exemption scheme allows you to keep additional personal property. Under the second scheme, you can exempt the following property in accordance with NJ bankruptcy law.
Clothing – This gives you the opportunity to keep clothing needed for work, school, and special events.
Crime victims’ compensation – This allows you to keep any compensation you received due to being the victim of a crime.
Burial plots – This allows you to retain the interest you have in any burial plots designated for you or your family members.
Annuity contract proceeds – This exemption allows you to continue receiving up to $500 per month of annuity contract proceeds.
Other exemptions available under the second exemption scheme and NJ bankruptcy law include up to $1,000 of shares of stock or interest in a corporation, household goods and furniture up to $1,000, public employees’ pensions, ERISA-qualified benefits, property of a business partnership, health or disability benefits, disability or death benefits for military personnel, disability or death benefits for civil or government employees, group life or health policy proceeds, and wages and allowances received by military personnel.
NJ bankruptcy law can be difficult to understand. If you need more information, contact a local bankruptcy attorney for more details.
Looking for the best NJ Lawyer ? Look no further, check out our New Jersey Lawyers website today!
Article Source: http://EzineArticles.com/?expert=Michael_Tasner
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