Using The Power Of Chapter 13 Bankruptcy To Thwart A Foreclosure
Lately there's been a lot of talk about Chapter 13 bankruptcy.
The main reason for this is there are a large number of Americans that are facing foreclosure.
Many of these people are the ones that still have a job and make a decent income, but got caught up taking out lines of credit against their home and getting high limit credit cards to buy all of their wants.
Many individuals could afford their homes before they piled all this credit on top of their mortgage.
I guess everyone needs a pool and a boat in the driveway to fulfill the American dream.
As foolish as it sounds, this is what was seen across the nation in suburbia over the last 10 years.
After the mortgage crisis in 2008, housing prices dropped like a rock.
Most of these individuals thought if they got in trouble they could sell their home and buy something smaller while using the equity to pay off the debts.
Well, Einstein it didn't work out like you planned, did it? Today, these Americans have tried everything on TV from debt consolidation to loan modifications with no avail.
Debtors usually go to the bankruptcy attorney as a last resort to see if there is any help there.
With so many people being at the end of their rope, a trip to the bankruptcy attorney has enlightened them with Chapter 13 bankruptcy.
This group of people usually doesn't qualify for Chapter 7 bankruptcy, because their household income is way above the median for their state.
When it comes to taking care of debt problems of this magnitude, a Chapter 13 bankruptcy is just what the doctor ordered.
The Chapter 13 bankruptcy shares the power of the automatic stay just as in Chapter 7.
Once the bankruptcy is filed, the creditors will be forced to contact the bankruptcy attorney for any kind of negotiations.
To file Chapter 13, the debtor and their bankruptcy attorney will be required to create a feasible repayment plan for the 3 to 5 year time frame.
The beauty of a Chapter 13 bankruptcy is how the debts are organized to be repaid.
At the top of the list to be paid is secured debts, sliding down the list we come to the unsecured debts that end up being paid with the crumbs left over.
Filing Chapter 13 allows a debtor to protect any property they can afford to keep, while allowing the debtor to get caught up on back payments if necessary.
Lately, Chapter 13 bankruptcy has gotten a lot of attention because of the real estate market and foreclosure.
As I touched on earlier, many debtors have put their family home at risk taking out lines of credit using their home as collateral.
This is where Chapter 13 shows its true power.
A bankruptcy attorney can ask the court to strip the liens of any second and third trust deeds if there is no longer any equity securing them.
This will make these loans unsecured and at the bottom of the list to be repaid.
In many cases, the individual filing bankruptcy might be able to afford his original mortgage but the added debt is what is collapsing their finances.
It's important to use a bankruptcy attorney that has a lot of experience in Chapter 13 filings.
This type of bankruptcy attorney will know the ins and outs of the law providing the maximum results possible.
The main reason for this is there are a large number of Americans that are facing foreclosure.
Many of these people are the ones that still have a job and make a decent income, but got caught up taking out lines of credit against their home and getting high limit credit cards to buy all of their wants.
Many individuals could afford their homes before they piled all this credit on top of their mortgage.
I guess everyone needs a pool and a boat in the driveway to fulfill the American dream.
As foolish as it sounds, this is what was seen across the nation in suburbia over the last 10 years.
After the mortgage crisis in 2008, housing prices dropped like a rock.
Most of these individuals thought if they got in trouble they could sell their home and buy something smaller while using the equity to pay off the debts.
Well, Einstein it didn't work out like you planned, did it? Today, these Americans have tried everything on TV from debt consolidation to loan modifications with no avail.
Debtors usually go to the bankruptcy attorney as a last resort to see if there is any help there.
With so many people being at the end of their rope, a trip to the bankruptcy attorney has enlightened them with Chapter 13 bankruptcy.
This group of people usually doesn't qualify for Chapter 7 bankruptcy, because their household income is way above the median for their state.
When it comes to taking care of debt problems of this magnitude, a Chapter 13 bankruptcy is just what the doctor ordered.
The Chapter 13 bankruptcy shares the power of the automatic stay just as in Chapter 7.
Once the bankruptcy is filed, the creditors will be forced to contact the bankruptcy attorney for any kind of negotiations.
To file Chapter 13, the debtor and their bankruptcy attorney will be required to create a feasible repayment plan for the 3 to 5 year time frame.
The beauty of a Chapter 13 bankruptcy is how the debts are organized to be repaid.
At the top of the list to be paid is secured debts, sliding down the list we come to the unsecured debts that end up being paid with the crumbs left over.
Filing Chapter 13 allows a debtor to protect any property they can afford to keep, while allowing the debtor to get caught up on back payments if necessary.
Lately, Chapter 13 bankruptcy has gotten a lot of attention because of the real estate market and foreclosure.
As I touched on earlier, many debtors have put their family home at risk taking out lines of credit using their home as collateral.
This is where Chapter 13 shows its true power.
A bankruptcy attorney can ask the court to strip the liens of any second and third trust deeds if there is no longer any equity securing them.
This will make these loans unsecured and at the bottom of the list to be repaid.
In many cases, the individual filing bankruptcy might be able to afford his original mortgage but the added debt is what is collapsing their finances.
It's important to use a bankruptcy attorney that has a lot of experience in Chapter 13 filings.
This type of bankruptcy attorney will know the ins and outs of the law providing the maximum results possible.
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