Talk to Your Bank to Keep Your House Out of Foreclosure

How about a dirty word that is not four letters long - "foreclosure." It certainly is not a word that engenders happy feelings. In general, people finding themselves in a foreclosure situation have suffered a substantial change in their life like divorce, serious illness or job loss. During these times in can be difficult to muster the energy to take proper steps to avoid a home going into a foreclosure. There are, however, proactive measures that can be taken to maximize the chances of keeping your home.

The first rule is overarching - talk to your lender. It can be difficult to actually reach out the bank or lending institution for a variety of reasons. You might be embarrassed that you are having money trouble and missed payments or you might be really angry at the bank if you perceive they are unjust in some fashion. Overcome your inertia no matter what its cause, give the bank a call and explain what is going on in your life and why you have missed payments. They may be willing to work with you during your difficult time.

The fist way a bank might accommodate you is by forgiving the missed payments. In this instance, the bank will simply waive the money due. Although this is a great solution for a borrower, it is rarely granted.

A second method is forbearance. The bank might be willing to give you a period of several months to become current on your loan before they file legal proceedings. In this fashion, you are given breathing room and the opportunity to make things right. This method can be coupled with changing the terms of your loan.

Your loan can become more manageable by changing its terms. The two common methods are by lowering your interest rate or by extending the timeframe of the loan. Both methods cause your monthly payment to be lower. How much and to what degree will vary depending on your specific circumstances.

With all three methods the key is actually calling your bank. Unfortunately, not every bank is willing to work with its borrowers and you may end up in foreclosure proceedings regardless of your efforts. In the end, talking to your banker sooner rather than later can't hurt and may help quite a bit. Don't be shy - call your bank as soon as you miss a payment. Keeping your house may depend on it.

For more information on foreclosure please visit www.kanzerlaw.com.

Article independently authored by Eric Parish. The content herein may or may not reflect the views and opinions of Kanzer Law.

Chapter 13 Bankruptcy - Need to Knows and Basics

With the large number of bankruptcies being performed it is important to know the basic facts about the kinds of bankruptcies out there. Whether you are about to go through the process or just know someone who is, it is important to stay informed in such pivotal matters.
A chapter 13 bankruptcy, also known as a debt repayment or wage earners bankruptcy, requires that you put together a plan to repay all or portions of the debt you owe in the form of installments that are taken from your income. Under these bankruptcy laws you are allowed to keep your property and possessions and promise to pay back debts over a period of time usually ranging from 3-5 years. Below are some more detailed answers to common questions:
How Do I Know If I Am Eligible for A Chapter 13 Bankruptcy?
The biggest eligibility requirement is simply to have a regular and steady income. Furthermore the income must exceed what the court determines to be 'reasonable' living expenses and must be financially able to perform a repayment. If you are living off of your credit cards you may need to make some serious life changes in order for this to happen. A second requirement is that you must be below a certain threshold of secured and unsecured debt, a number which your lawyer can provide you more accurately.
What are the Benefits of Chapter 13?
In my opinion, the biggest benefit of such a program is that is teaches financial responsibility. Through repayment many learn the lesson of financial ignorance through required programs such as credit counseling and the formation of a formal budget. Many view the largest benefit as the permission of the court to keep your possessions as opposed to starting from scratch, and in some cases, with nothing other than the clothes on their back. This makes Chapter 13 greatly appealing to those who have debts in the form of homes and cars.
Are There Any Disadvantages?
Obviously the largest disadvantage is the fact that the bankruptcy can stay on your credit report for up to ten years. During this time the debtor is not permitted to incur additional debt or obtain more credit without permission from the bankruptcy court. Furthermore creditors are mush less likely to extend any form of credit to a person that they consider to be of such high risk.
While any form of bankruptcy is extremely hurtful they are sometimes necessary, and a Chapter 13 offers some desirable traits. During times of temporary financial trouble is when most choose this form, and because the debtor is permitted to keep his/her belongings a complete feeling of loss can be avoided. As always, professional advice is key and can prevent further headaches, so if you are thinking about filing bankruptcy talk to a professional credit counselor or lawyer to determine the best fit for you.

Visit www.kanzerlaw.com for more details and guidance on bankruptcy information.

Posted by WebDrafter.com, Inc. with permission.

Article independently authored by Matthew Eddington. The content herein may or may not reflect the views and opinions of Michael F. Kanzer Law & Associates

What You Should Know If You Are Considering Filing Bankruptcy - Chapter 7

Throughout the years bankruptcy has often been a confusing and heartbreaking process for thousands of people. The questions that come with such a detailed process are many, and even the answers may not always be as simple as one may like. This article will focus on four simple questions, and provide simple and effective answers to the biggest questions.

What is a Chapter 7 Bankruptcy?

When considering bankruptcy as a solution, it is important to know the difference between the two main forms: Chapter 7 and Chapter 13. A Chapter 7 bankruptcy, often referred to as a straight bankruptcy is basically a liquidation of the debtors property in order to pay for debt owed to different creditors. In this form, the debtor usually has no losable assets and therefore is given a relatively quick 'new start' to life, which is one of the main purposes of having bankruptcy laws.

What is a Discharge in a Chapter 7 Bankruptcy?

Within three to five months of the bankruptcy process the debtor is usually given a 'discharge' of all non-exempt debts, meaning that any debts included are no longer the responsibility of the debtor to repay. Effectively a discharge prevents a creditor from performing any kind of collection (be it letters, phone calls, or personal contact) on debts that have been discharged, and all personal liability is released, with the exception of any liens that may not be incorporated into the proceedings.

Why Do People File A Chapter 7 Bankruptcy?

The most frequent reasons for this form of bankruptcy are overextending medical expenses or credit, marital problems, and any other large and unexpected bills. Unemployment is often a reason that leads to many of these problems, and therefore is sometimes included in explanations. A Harvard study published online in February of 2005 by Health Affairs stated that illness and medical expenses caused 50.4% of personal bankruptcies in 2001, and affect around 2 million Americans annually.

How Does the New Bankruptcy Law Affect a Chapter 7?

While the new bankruptcy laws have been given a negative slant since their release, many are still eligible and can still file. Basically the new law stops some citizens with higher incomes from using a Chapter 7 and instead makes them file under a Chapter 13. In addition, credit and budget counseling is required before bankruptcy filing is possible, and more counseling is required before any debts can be erased.

Money education has sometimes been blamed for ones credit crises, and the new law aims to solve that problem. New requirements have also been placed on bankruptcy lawyers, such as the lawyers' accountability for accuracy of all information submitted.

All in all bankruptcy is a very serious matter, and while you can do a large amount of research on your end, it is always necessary to seek professional advice and counseling in these situations. While the new laws may make bankruptcy lawyers harder to find, it also has weeded out many who were not serious about helping people who find themselves in hard situations. Call around and find a lawyer you are comfortable with and one that you fell will make this hard situation seem just a little easier.

For more information and guidance about financial laws and financial protection, visit http://www.kanzerlaw.com. Kanzer Law specializes in bankruptcy information.

Bankruptcy - Filing on Your Own May Be Ruinous to Your Lifestyle

Foreclosures are rising daily, as people become less able to keep up with the economic downturn. Many families are at risk every day of losing the houses they worked so hard to make into homes. A little known area of bankruptcy can stop these foreclosures from happening.

A chapter 13 bankruptcy filing is a process that can stop foreclosure proceedings and enable homeowners time to catch up on past mortgage payments. Under a chapter 13 bankruptcy, the process will stop as long as the homeowners can make the current payments while the bankruptcy proceedings are occurring. Chapter 13 can also enable other debts to be rolled into the plan, allowing payments to be made over the course of the agreement.

Chapter 13 bankruptcy may be considered a type of debt consolidation. Typical repayment plans through chapter 13 bankruptcy last between three to five years. The range is based on income level, not on amount of debt being filed. The process of a chapter 13 bankruptcy can be confusing.

First, the bankruptcy petition is filed&. After the filing, the debtor is issued a stay and all potential legal action from creditors is halted. The plan for repayment is usually filed with the petition, but may be filed up to 2 weeks after the initial filing. A meeting between debtor and creditors are held and a plan for repayment is agreed upon. The case then goes to the bankruptcy court where a judge determines if all parties are satisfied and that the plan is within the bankruptcy code standards. Within one month of the plan being filed, the repayments begin. Once all repayment is complete, the debts are discharged.

The similarities between chapter 13 and traditional chapter 7 bankruptcy lie with the paperwork. There are many forms and documents to be submitted and the process can become quite overwhelming. Married couples must submit both parties information, even if filing alone. A competent and experienced bankruptcy attorney can help the process be less of a hassle. The attorney will instruct the debtor on what forms and information are needed to file and the amount of court costs.

Even though chapter 13 bankruptcy is more of a debt consolidation plan, it will remain listed on the individual's credit history. This will most likely prevent the average citizen from obtaining a personal loan or even a car loan. If the individual is able to obtain a loan, the interest rate will be exceptionally high, but this is a small price to pay for saving a family's residence from foreclosure.

For more information and guidance about debt recovery, foreclosure avoidance, and bankruptcy protection, visit websites in your state that are like http://www.KanzerLaw.com. Among other professionals, Kanzer Law specializes in helping individuals protect their assets from creditors during times of personal economic crisis.

Declare Bankruptcy Protection

The Financial Answer to Foreclosure and Credit Card Debt

Despite the country experiencing a slowing economy, riddled with skyrocketing unemployment and financial assistance at all time highs, one would assume that the overly aggressive and predatory lending habits of diminishing banks would have abated. Unfortunately that has not been the case. As more and more lending institutions are filing for bankruptcy or being swallowed up by larger, but still troubled financial institutions, these same agencies are gambling with future possible revenue that has not been paid to them. In essence, these failing banks racing the clock.

Individuals and homeowners alike are experiencing the same type of financial stresses and burden, only there isn't another agency swooping in to bail them out. Instead foreclosure, disastrous credit history, and bankruptcy are what looms on the horizon. Even those families which had been enjoying a well off living a few years ago, are now being reduced to a single car family or having to downsize to a rental home in order to make ends meet.

Late night television which features financial investment wizards and advice columnists have risen dramatically in popularity as the public searches for any information and hope that economic instability will turn around or can be weathered. These shows, though, can not give specific advice to any one individual's or family's situation.

The wisest course of action is to seek out an experienced financial consultant. Many banks offer financial advising for their clients. If a homeowner's bank does not offer these services, the bank may be able to refer a particular company or help point the customer in the right direction.

Sometimes the financial devastation is just too great and declaring bankruptcy is the only logical choice remaining. When is filing for bankruptcy the right thing to do? Only a qualified attorney can make that determination and recommendation. The majority of attorneys specializing in bankruptcy offer free consultations. It is at this point which an individual will learn the ins and outs of bankruptcy and how bankruptcy protection is able to help get the individual or family's feet on financial solid ground.

For more information and guidance about debt recovery, foreclosure avoidance, and bankruptcy protection, visit http://www.KanzerLaw.com. Among other professionals, Kanzer Law specializes in helping individuals protect their assets from creditors during times of personal economic crisis.

The Mortgage is Close to 90 Days Past Due - Foreclosure Imminent - Consult a Bankruptcy Attorney

It is true that history repeats itself. In search of a fresh start, the early American settlers and founding fathers, many of whom were bankrupt and penniless, came to the new world. Bankruptcy today is exactly that, a fresh start, but without the cruise across the Atlantic. Bankruptcy protection is no longer a shameful experience of which to take advantage. A few of the nation's most trusted and respected professionals and corporations have taken advantage of this same bankruptcy protection, such as GM, Northwest Airlines, Delta, Lehman Brothers Holding, Inc., Chrysler, and countless more.

Unfortunately, those private citizens that are filing for bankruptcy will not be receiving bailout funds from the U.S. Government as will those major corporations. Because of this lack of extra financial backing, it is imperative that private individuals and families unable to pay debts or losing their home to foreclosure consult an attorney specializing in bankruptcy protection.

Should a family be 90 days past due with the mortgage payment, it is essential to consult a bankruptcy attorney immediately. Many bankruptcy attorneys will make recommendations that will allow a homeowner to continue making payments in order to prevent losing the home.

Shortly after filing bankruptcy, a hearing will be set. One instant benefit of filing for bankruptcy is that every harassing collection call will stop once each lender has been notified of the intent to declare bankruptcy has taken place. Should any lender which is owed money fail to appear at the hearing, will generally forfeit any claim to monies owed. This is not an absolute certainty, though. Certain loans and debts are not forgiven and must be paid back to the lender regardless of declaring bankruptcy or not.

Once the bankruptcy hearing has taken place, many attorney's offices will be able to refer the client to a reputable financial advisor so that the road to financial recovery may be smooth and efficient. Within a year, it will be possible to begin building a positive credit history once again through a credit card. The interest rate will be exceptionally high, but will fall as the client proves financial responsibility.

For more information and guidance about declaring bankruptcy and protecting assets through the bankruptcy process, visit http://www.gallerlaw.com . The Galler Law Firm, LLC. specializes in bankruptcy and debt consolidation, as well as, worker's compensation and motor vehicle accident representation.

Bankruptcy is a New Financial Start to Build Credit

Not the Shameful End All it Used to Be

When a person is young, they are vibrant and indestructible. Nothing can keep them down. Inexperience is what contributes to this myth. As this person gains more experience, time tempers the myth and belief that every aspect of the world is awaiting them to discover and conquer. Thoughts turn from the present to that of what the future holds.

Hindsight being what it is, if the average 22 year old had only financially planned for the future instead of just focusing in on the present, the future would be much brighter. Instead, the average middle aged man or woman is finding themselves jockeying debts and living from paycheck to paycheck with little relief in sight.

With mounting credit card debts, car payments, the expense of raising children, and a sizable death pledge, also commonly referred to as a mortgage, most of the country has not experienced this much financial stress in over 50 years. Bankruptcy then was an extreme taboo. To declare bankruptcy then was completely ruinous and few if any ever recovered. Fortunately today, that same stigma of absolute failure and worthlessness has been replaced with understanding, but tempered with caution. A bankruptcy will stay listed on a person's credit report for 7 to 10 years depending on the type of bankruptcy declared. In other countries such as Britain or Australia, the period is a shorter 6 years and 7 years respectively.

It is still a very realistic expectation to succeed and prosper after claiming bankruptcy, however, the majority will find it challenging to adhere to a disciplined financial regimen where once the youthful carefree approach reigned supreme. Very few individuals or families can do this alone without some financial advisor or planning.

A large number of financial advisors will say to pay off enormous debts through debt consolidation and loan counseling assistance. Depending upon the type of debt and amount, it may not be a logical or realistic endeavour. Reputable bankruptcy attorneys also may recommend paying off one's debt if possible.

If an individual or family has been struggling with making on time payments only to keep edging further and further into late fees for a year or more, bankruptcy may be a recommended alternative in order to preserve ownership of any vehicles and home from repossession and foreclosure. They key phrase to recognize is bankruptcy protection. The complexities of filing for bankruptcy should never be attempted without a qualified attorney which specializes in bankruptcy cases. By consulting and hiring an attorney, an individual or family stands the best chance to return to a normal and prosperous life in the near future.

For more information and guidance about debt recovery, foreclosure avoidance, and bankruptcy protection, visit http://www.KanzerLaw.com. Among other professionals, Kanzer Law specializes in helping individuals protect their assets from creditors during times of personal economic crisis.