Filing Credit Card Bankruptcy

Credit card offers seem to arrive each day in the mail. And they offer such sweet deals. Go to a retailer and they will give you a 10% discount if you will sign up for a credit card and use it for your purchase. It is no wonder that a lot of people have large amounts of credit card debt. For some people the amount gets to be so large and difficult to pay that they begin to think of filing credit card bankruptcy. It sounds so simple, but is it?

First, there is no such thing as credit card bankruptcy. There are two types of personal bankruptcy – Chapter 7 bankruptcy and Chapter 13 bankruptcy. Whenever you file for either of these types of bankruptcy, you must list all of your debts – credit cards, mortgage, medical bills, car loans, etc. You cannot simply select which debts you want to list. By federal law, you must list all of your debts.

Next, there are generally two types of credit cards that consumers use. There are the standard, multi-purpose, multi-location type of cards. These are primarily the master card(tm) and visa(tm) type of credit cards. The second type are the store credit cards which are designed to be used only in a specific company’s stores. A good example of this is a Sears credit card.

There are also two types of debt – unsecured and secured. Most of the time when the multi-purpose, multi-location type of credit cards and store credit cards are used, they create unsecured debt. This means that you did not put anything up as collateral for the credit card loan with which you make the purchase. However, with some store credit cards, when you purchase durable goods, such as appliances, jewelry, etc., the store will retain a security interest in the items that you purchased. This means that if you do not pay the credit card debt for the item, the store can seek repossession of the items that you purchased.

If your credit card debt is primarily from the multi-purpose, multi-location type of credit cards and is unsecured debt, then filing bankruptcy under Chapter 7 may be your best bet because it will discharge unsecured debt. Of course, you must consider all factors because you could lose property in a Chapter 7.

If your credit card debt is primarily from the store type of credit card where the store retains a security interest in the items purchased, you can try filing bankruptcy under Chapter 13. Depending on a number of factors, you may be able to pay for the value of the items instead of the original price of the items.

It is important to remember that when you file bankruptcy, you file against all of your creditors, not just against credit cards. It is also important to remember that personal bankruptcy has disadvantages such as possibly losing property and long term negative affects on your credit. Filing bankruptcy should not be taken lightly. Consider all factors and not just your credit card debt.

This is general information. If you need specific information or have any questions of any nature whatsoever, talk with a lawyer licensed in your state.

This article may be republished, but the wording must not be changed and the author links must remain active.

Claiming maximum benefits under Chapter 7 & 13, for low cost, is easier than you now think. Find out how the pros use their options wisely and beat creditors at their own game.

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Stop! Did you know that bankruptcy was created to give people a fresh start? Find out more at bankruptcy information. And click here for more insights on credit card bankruptcy.

Top 10 Bankruptcy Questions Answered

Bankruptcy is an option for those who find themselves in debt so far over their heads, they will never see financial daylight. There are many things to consider, ie, a chapter 7 total liquidation or a chapter 13 reorganization of debt and whether you want to do it yourself or hire an attorney. Before you make a decision, there are some bankruptcy questions you need to look at. We have compiled a list that our attorneys are most frequently asked.

Before 2005, filing bankruptcy was not a big deal. Even though the bankruptcy laws have gotten stricter there are still do-it-yourself bankruptcy packages available. You may find yourself faced with bankruptcy questions that you will very likely not be able to answer. This could be very detrimental to your situation.

The new bankruptcy code is stricter and more inhibitive than ever before. Filing bankruptcy on your own is not as easy as it once was, but it is still doable using many online services. many services incorporate high-tech software that helps you fill out the bankruptcy documents and upon completion you can print them and file them with the court.Some courts even allow you to submit your bankruptcy forms electronically.There is a wealth of information available on the web about the new bankruptcy laws and how they could affect your situation.

Even though these laws have become complex, bankruptcy questions are definitely going to pop up somewhere along the way. If you decide to do it yourself you should probably look in to one of the low cost online services to help you. They should be able to answer questions regarding debts that might not be able to be discharged and other questions that arise about your personal financial situation.


1. What is Bankruptcy?

This is one of the most common bankruptcy questions. There are a number of myths about bankruptcy and as a result many people misunderstand the process of filing for bankruptcy. Essentially, bankruptcy is a type of legal proceeding in which you legally declare that you are not able to pay all of the money that you owe. It grants consumers a fresh financial start while also providing the opportunity to potentially repay creditors in an orderly fashion.

2. What are the Advantages of Bankruptcy?

Bankruptcy makes it possible for consumers to stop foreclosure on their home and provides an opportunity to catch up on payments that have been missed. It may also prevent a vehicle or other property from being repossessed. In addition, bankruptcy can stop wage garnishment and harassment by debt collectors. Bankruptcy can also provide a discharge of debts.

3. What Won?t Bankruptcy Do For Me?

This is another of the most frequently asked bankruptcy questions and it is important to understand that bankruptcy will not cure all of your financial problems. It is not the right choice for everyone, so it should be understood that bankruptcy will not eliminate certain types of debts, especially those that are secured. Secured types of debt include mortgages and car loans. In addition, bankruptcy will not discharge special treatment debts such as alimony, child support, certain student loans, criminal fines and certain taxes.

4. How Often Can You File For Bankruptcy?

It depends on the type of bankruptcy that is filed. You can file for Chapter 7 bankruptcy 8 years after the date of the last time you filed. Chapter 13 bankruptcy can be filed again at any time.

5. What is Chapter 7 Bankruptcy?

Ultimately, the goal of this type of bankruptcy is to discharge your debts. In order to wipe out those debts; however, you will need to give up all non-exempt property. Exemptions will need to be applied and it is important to speak with your bankruptcy attorney ahead of time to determine exactly what property is exempt and which is non-exempt before your bankruptcy petition is filed.

6. What is Chapter 13 Bankruptcy?

This type of bankruptcy gives you the opportunity to legally create a plan by which you will repay your debt. Under this type of bankruptcy, you will pay into the plan on a regular basis. This type of bankruptcy offers advantages over Chapter 7 by helping you to avoid foreclosure, offering a lower cost than Chapter 7, remaining on your credit for fewer years than Chapter 7 and avoiding the confiscation of and sale of property in order to satisfy debts.

7. Who Should Consider Filing Bankruptcy?

Bankruptcy is ideally designed for individuals who feel as though they are overwhelmed by financial problems.

8. Will my Credit be Ruined if I File for Bankruptcy?

While your credit will not be completely ruined when filing bankruptcy, it will remain on your credit report for up to ten years. If you have a regular, decent income you will typically find that you can receive credit even after filing for bankruptcy. Most people find they can still purchase an automobile after filing for bankruptcy and can then begin rebuilding their credit from there.

9. What is an Automatic Stay?

An automatic stay is a restraint that prevents your creditors from taking any subsequent action to collect debts. The automatic stay is filed immediately after your bankruptcy petition is filed.

10. Will My Employer Know I Filed for Bankruptcy?

It should be understood that bankruptcy petitions are public records. Normally; however, your employer will not know you have filed a petition for bankruptcy unless you owe him or her money and they are a creditor.

Getting answers to your bankruptcy questions is an excellent way to determine whether filing for bankruptcy may be the right option for you.

http://DIY4LAW.Com it is a attorney assisted do-it-yourself bankruptcy service. We have online software that gives people an inexpensive alternative to hiring an attorney.

When is Bankruptcy the Best Option?

Is bankruptcy a good option? Take a look at the following video to get a good idea as to when filing bankruptcy(Chapter 7 or Chapter 13) may be the right option for you.


How to Determine If Chapter 13 Bankruptcy Makes Sense For You

The reality of not being able to make ends meet in corporate and personal financial obligations has never rung more true than in the year 2009. Many business doors closed, foreclosure notes forced families out of their homes, unemployment rate was the highest it has been in over 20 years, and a financial global crisis unraveled before our very own eyes. So what is a business or home owner to do? How do you gain back your pride and build financial stability after it has been shred to pieces? Many Americans turn to filing bankruptcy, specifically, Chapter 13. But what does that mean? How do you know if it is the right option for you? Here is a brief explanation of Chapter 13 so you may see if it is the correct choice for you.

There are many forms of bankruptcy available to address your business and personal dilemmas. For instance, if you were in an accident leaving you unable to work then bills pile up. Moreover, creditors are calling threatening to take away your standard of living due to unpaid bills. What do you do in this situation? Filing for Chapter 13 Bankruptcy might be the right answer for you. For Chapter 13 Bankruptcy filings stop and prevent foreclosure actions from occurring. It may allow you to breathe easier preventing your from being physical removed by authorities from your house.

Chapter 13 Bankruptcy tends to be appealing to businesses as well. For what if you are no longer able to pay mortgage on your restaurant property. Does the government come knocking on your door and take everything away, including the restaurant equipment located inside the business dwelling? What about the kitchen supplies, are the utensils taken away too? In most cases, the answer is yes unless you file for a Chapter 13 Bankruptcy. Chapter 13 Bankruptcy filings do not require the liquidation of assets. In Chapter 7 Bankruptcy liquidation of assets does occur. Therefore, perhaps Chapter 13 Bankruptcy is more suitable to match your needs than a Chapter 7 filing.

Another benefit to filing Chapter 13 Bankruptcy is that the collection efforts must cease during the bankruptcy process. Collectors are not permitted to call, harass and/or disrupt your business and personal life under this process. It is a relief not having to deal with creditors, banks, and businesses who are hounding you nonstop for the sake of collecting. It is surprising to people who are suffering in debt what a relief it is to eliminate this one factor from the situation. It makes a difference allowing people to think more clearly and a chance to gain footing again bouncing back stronger, and wiser than before.

There are many other factors of Chapter 13 that you need to be sure are suitable in resolving your financial woes. But to be sure about the overall understanding of Chapter 13 Bankruptcy, then you need to contact an attorney who specializes in Chapter 13 filings. Ask questions. Do not be shy and gather as much information as possible on the subject so you may make a smart decision for you, your business, and/or your family.

Claiming maximum benefits under Chapter 7 & 13, for low cost, is easier than you now think. Find out how the pros use their options wisely and beat creditors at their own game.

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Find an Arizona bankruptcy attorney that specializes in Chapter 13 Bankruptcy today.

By Tony Mandarich and Reda Abouleish

How to Know Whether You Qualify For Bankruptcy

This past year was a tough time economically for many people, and 2010 does not appear to be any different. Many people have bills piling up and no means to pay. Unemployment rates and foreclosures are at an all-time high. Businesses are closing, and people are in desperate economical shape. However, how does one determine if it is time to file bankruptcy or not? How do you know when enough is enough? There are various factors determining if bankruptcy is suitable for a person or not. Here is an outline of what aspects needed to qualify.

Chapter 7 Requirements

If you are someone who was recently unemployed and has no other means of income, then you may qualify for Chapter 7 Bankruptcy. The way it is determined is via a Means Test. It is a tool administered by the courts to see how your income compares to other families of same size and location. For instance, if your income is lower than the average median income in your area and no other means to pay your bills and creditors then the courts may approve you under Chapter 7 rules.

Once accepted, the courts will assign a trusted appointee who compiles a list of all of your non-exempt assets. These non-exempt assets are sold to pay off creditors. The rest of your debt is dismissed by the courts. As a result, many people are much more relieved after the process is complete. For it leaves a clean slate to start fresh without the constant worry of past financial mistakes looming overhead.

Chapter 13 Requirements

If your application is rejected due to exceeding the income requirements for a Chapter 7 filing, then Chapter 13 is suitable for you. Additionally, if you have debt legally unreleased by the courts and personal and/or business assets then Chapter 13 would be the best plan to follow. For in Chapter 13, courts will establish a repayment schedule to pay off your debts in an average of 3-5 years. Therefore, Chapter 13 is for someone who has a steady means of income, and assets available.

Chapter 13 will stop your home from going into foreclosure. For once Chapter 13 Bankruptcy is filed the foreclosure process stops. However, it is temporary. You must bring the past-due payments current over a reasonable time. If not, you shall lose your house. Thus, do not think you are completely off the hook. Keep making your regular mortgage payments as explained by the courts and/or attorney. Repaying your missed mortgage payments is part of the process.

Filing for bankruptcy is not a simple process. The emotional ties people have towards monetary belongings are taxing. These emotions easily arise during these times, and the best way to handle the procedure is with support. You need to inform your family and friends what is unfolding. Find yourself a reputable attorney with experience in Bankruptcy law. Do research online to gather as much information about it before proceeding forth.

By Tony Mandarich and Reda Abouleish

Check out an Arizona Bankruptcy Attorney or a Scottsdale Bankruptcy attorney today.

What You Need to Know Before Filing Bankruptcy

Some people have a misconception when it comes to Bankruptcy. They do not have a clear understanding regarding what preparation must occur before filing. Does Bankruptcy mean you still owe debts? What requirements must unfold before filing? Here is a basic guideline regarding what to do before signing any Bankruptcy paperwork.

Provide Thorough Lists of Property and Assets

When filing for Bankruptcy, it is common to wonder what will happen to your home, cars and businesses during the process. Will the courts take your belongings away? Will the courts obtain control of your accounts and monetary items? The court will do nothing if you provide a thorough list of all property and assets. For the listed items are protected under Bankruptcy law. On the other hand, if you fail to provide a complete list of belongings, the left out items are unprotected and courts may take seize of those items at any moment. Therefore, be meticulous and list everything to ensure law protects the items.

Be Prepared for Your Credit Report to Remain in Shambles

Filing for Bankruptcy does not mend your damaged credit report. Your credit report will continue to exhibit a negative mark. Do not be fooled by myths that claim otherwise. In addition, Bankruptcy shall stay on your credit report for 10 years. Hence, evaluate if Bankruptcy is the right option for you before tinkering with the process.

Fibbing Leads to Case Dismissals

During any court proceedings, if a person is caught cheating, stealing and/or lying then, most likely, the case will result in dismissal. Therefore, why should filing Bankruptcy be any different? Be honest. Do not hide facts or misrepresent yourself. Do not leave out information regardless if the information is seemingly insignificant. For what may be insignificant to you may be pertinent to the courts. Provide the courts with ample information. Consequently, if you have legal representation, be upfront with him/her. The more you give your Bankruptcy attorney, the more prepared he/she shall be while in court.

Do Not Accumulate New Debts

Do not build any new debts while undergoing the process. If you purposely accrue new debts, thinking filing for Bankruptcy will avert from forcing to pay it back, a jail cell will be your next stop. It is illegal to proceed forth thinking in this manner. Thus, do not think about it. It will only get you into legal, and further financial, trouble.

Silence Bill Collectors

As soon as you file for bankruptcy, then creditors, including tax collectors become quiet. They are not permitted to contact you for any purpose and the harassing phone calls and letters stop immediately. The protection is permanent discharged debts. Keep in mind, Bankruptcy does not halt you from enduring criminal or governmental regulatory proceedings.

Bankruptcy Filings are Brutal

It is not an easy, simple process to undergo Bankruptcy filing procedures. There may be court dates to attend, additional information requested by the courts, and legal requirements difficult to comprehend. Your life may be shook up for a while. As a result, do your research and find someone who is a Bankruptcy expert able to handle and manage your case until the end.

by Tony Mandarich

Check out an Arizona Bankruptcy Attorney and a Scottsdale Bankruptcy Attorney today!

10 Warning Signs You Need to File For Bankruptcy

Bankruptcy is a serious matter that can affect your credit rating for up to ten years. There are many factors that come into play when a consumer is making the decision to file for bankruptcy. Use these signs to recognize when it is time to file for bankruptcy:

  1. You are unable to make routine minimum payments required for credit cards and loans. This is a sign that you are in severe financial distress and should not be ignored.
  2. When you examine your expenses it is determined that you have been spending much more than you earn on a regular basis. This means that you have been accumulating debt each month. Each month the debt gains interest – making the debt more expensive as you add on to it. This is a vicious cycle and it’s called "financial suicide". This type of spending has to come to an end or your credit score is going to die miserably.
  3. You are over your limit or at the limit on your credit cards. To maintain a healthy financial situation, it is important to remain under thirty percent of the credit limit on your credit cards and loans. If you are teetering at the limit, unable to pay down the debt this can lead to trouble.
  4. You are unable to pay each bill every month and therefore skip bills for one to two months at a time and are facing notices for collection on a regular basis.
  5. You are not making enough money. Are you making enough money to cover your expenses each month while contributing to a savings account or an emergency fund? This can lead to financial distress and bankruptcy.
  6. Expenses can bring panic – there are many unexpected expenses that can occur such as vehicle repairs which can occur and are mostly covered by an emergency fund. For those consumers facing bankruptcy, these expenses can cause upheaval in the finances along with high levels of stress. With credit cards at the limit and no savings account, an accident or repair can seem like a nightmare.
  7. You receive countless phone calls from credit agencies that are seeking bills for collection. When creditors are calling, it can be detrimental to the credit report – as collections are the worst thing that your credit report can face. If you are unable to afford these payments then it may be time to consider bankruptcy.
  8. You are afraid to speak to your partner about money issues or avoid the topics altogether. This can be a sign of financial disarray and should not be ignored. Ignoring the problem can only make it worse as time passes.
  9. You have no idea about all the accounts on your credit report. You are unsure about which debts are paid – or even how much you owe to creditors.
  10. You have thought about bankruptcy or were considering filing with a bankruptcy attorney. When you have had these thoughts, chances are that meeting with a bankruptcy attorney is the next logical step.

Use the above as guidelines for considering filing for bankruptcy. If you are experiencing one of the signs above then it doesn’t necessarily mean you are in need of bankruptcy. You may want to first consult a financial guru before filing, but if you are experiencing two or more of the signs above then you are more likely to be a perfect candidate for filing bankruptcy. At this point you should consult a bankruptcy attorney to understand your options and what bankruptcy can do for you. Learn how to choose your bankruptcy attorney.

Michael David is an expert writer with years of experience writing and producing quality content. Before filing for bankruptcy you should read Dave Ramsey’s Total Money Makeover, it will change your life and help you avoid bankruptcy altogether.

Bankruptcy Claim And Community Debts

If you are divorced and are filing for bankruptcy claim, you might be thinking whether you will be able to wipe out your obligation of paying community debts. In normal circumstances, it is quite likely that filing the court petition regarding the same will free you from all community debts that are dischargeable. However, in some cases, you may be liable to pay the same even after you have been declared as belly-up under chapter 7 bankruptcy. Therefore, it is important for you to be aware of certain kinds of debts that may or may not be discharged. Always remember, if granted, bankruptcy is going to be there in your financial card for the next 10 years at the very least. Therefore, if you plan everything beforehand, things would definitely be much easier for you.

Filing Petition When A Dissolution Action Is Pending

However, in such cases, you are recommended to discuss the matter with your family law attorney. The attorney is an expert person and they know about the intricacies involved in the laws associated with bankruptcy claim. They will get you the real picture based on your specific circumstances and lots of other factors associated with the same. There can be several implications of filing bankruptcy during the period when a dissolution action, such as a divorce case etc, is pending. Your family law attorney will help you understand those implications and take the right step based on that. What is more, it is also important for you to note that in case the court discharges you from community debts, your spouse will become liable to pay off the entire balance on those debts. In other words, if you file your petition at a time when a dissolution action is pending and community debts are considered as dischargeable debts, the liability will be shifted on to your spouse.

Debts That Can Not Be Discharged In Any Case

Insolvency under this chapter is usually considered as freedom from all kinds of debts. However, there are certain kinds of them that cannot be discharged in any case even after you have won the bankruptcy claim under chapter 7. It depends upon the judgment of the court and your specific circumstances regarding which debts are dischargeable and which ones are not. In normal circumstances, the bankruptcy court considers the following debts as non-dischargeable.

# Penalties and forfeitures,
# Criminal fines,
# Student loans,
# Non-dischargeable debts from a prior bankruptcy,
# Liability for injury or death from driving while intoxicated,
# Debts caused by the malicious or willful misconduct by the debtor,
# Liability associated with spousal and child support, and
# Taxes (except in certain cases).

However, the debtors sometimes are not able to get even the dischargeable debts removed because the creditors have filed an appeal against the same. Still, in usual circumstances, once the debtors win the bankruptcy claim, and the equity interest in the property is exempt, they can retain the property by redemption or reaffirmation.

Filing for bankruptcy claim might be easy, but it is certainly not a simple task to live with the tag of being insolvent for 10 long years. Therefore, if you are filing under chapter 7 bankruptcy, make sure that you are well aware of the ins and outs associated with the same. For example, you must know the outcomes of filing bankruptcy when a dissolution action is pounding.

By Saurabh K Jain

Differences in Bankruptcy Chapters

by Alan Lester van der Reinje

No matter how much we prepare for disasters it never seems to be quite enough. Most people live from paycheck to paycheck and only make the minimum payments on their credit cards or loans. When disaster strikes, such as unforeseen unemployment, many find themselves accumulating debt they cannot pay off. The option of choosing a bankruptcy chapter becomes a pressing decision and one that can change lives.

There is a distinctive difference in bankruptcy chapter 7, 11, and 13. Bankruptcy laws have also changed within recent years so it is especially important to know which changes in law are the most applicable to the given situation. A bankruptcy chapter, regardless of which one, is under the regulation of The United States Bankruptcy Courts and is governed by federal laws determining the rules and guidelines for each bankruptcy chapter.

Chapter 7 bankruptcy is where the individual is unable to pay anything towards his or her creditors. The judge and attorney will compile a list of all debts owed and look at whether or not the individual will be able to pay them back the money that is owed. If the person is not fiscally able to repay the debts then the assets not covered under exemption will be sold or returned and any extra monies paid to the creditors.

Chapter 11 bankruptcy and chapter 13 bankruptcy are where the debtor and his or her attorney makes arrangements through the court system to pay back the debts in monthly installments that will not overburden the individual. There are some assets, such as retirement, that cannot be touched by creditors so this provides some measure of relief for those nearing retirement age who do not want their 401k or retirement saving plans wiped out.

Bankruptcy chapter laws also prohibit certain types of behavior from creditors and collection agencies. These vary slightly from state to state but are generally a list of rules and regulations that prevent collectors from harassing individuals. One provision in bankruptcy chapter laws prevents creditors, after bankruptcy proceedings have been initiated, to contact the individual again directly regarding the debt.

Other bankruptcy chapter laws might cover a debt collector making harassing or threatening statements to an individual, his or her friends and family. There are also laws protecting a person’s place of work from receiving phone calls if it jeopardizes their job.

All of the bankruptcy chapters leave a mark on credit reports. It is one decision that definitely should not be taken lightly. Jobs, cars, bank accounts and even insurance premiums are all affected by bankruptcy. It will not be a permanent mark and there is a chance for a new life if valuable lessons are learned. Overspending must be curtailed and responsibility taken for bills, otherwise the vicious cycle can begin again.

7 Steps to a Fresh Start after Bankruptcy

Bankruptcy is one option to consider in order giving yourself a “fresh start,” when you have more debts than you have assets. There are in fact many types of bankruptcy provided under the law but the most common is Chapter 7 bankruptcy, which is also known as liquidation.

When filing under Chapter 7 bankruptcy, all your assets, excluding those that are exempt under the law of your state, are dissolved and liquidated. Generally, the person tasked to do this is the court-appointed official, called a trustee.

All in all, the vital task of the trustee is selling your properties and using the proceeds to pay your creditors. After doing such, the court will then cancel many of your remaining debts, thus affording you a “fresh start” to life.

Here is a step-by-step guide to filing a bankruptcy under Chapter 7 bankruptcy:

Step 1: [Read more...]

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.

[Read more...]

Chapter 13 Bankruptcy – Stop Mortgage Foreclosure

Yes, you can save your home!

Using the chapter 13 can strategically help you cure your mortgage default, protect your equity and eliminate your other debts to help you right the ship.

Several years ago, we saw a boom in mortgage lenders offering low adjustable rate mortgages (ARMS) 100% to 110% mortgage loans, and no money down mortgages.

Today, we have seen these ARMS increase from 5% to 8%, 9% or more depending on the lender. Homeowners are being bombarded with a mortgage payment that is almost double than it had been previously before the interest rates have started to rise.

What is a homeowner to do? With the soft real estate market, homes have not appreciated in value, or not enough to allow homeowners to refinance and use some of their equity to help with the higher rates. [Read more...]