The Economy -Jobs, Unemployment and Debt
What are the debt solutions for you?
Although the politicians continually claim to have the answers, it does not appear that our National Debt problems will get better anytime soon. Of course over the last several years we have all learned that our government seems to have unlimited credit and will borrow from China whenever the whim is felt. [pullquote align=”left|center|right” textalign=”left|center|right” width=”30%”]Can’t Borrow Your Way Out?[/pullquote] Once a person or family has maxed out the credit card limit, and no more offers are coming in the mail, that’s it. Going to the local bank for a loan? Debt ratio or credit score are not in the proper range? The bank will say NO!
[important]The protesting, heated political debates, blaming one political party or the other, and talking heads of the media – round tables, etc. – certainly have American’s talking about the economy and the negative impact on the lives of individuals. But, will protesting in the streets provide you debt relief? At the end of the day many people still have no job, or are working at a low wage job, part time, and have less money. Many people are in heavy credit card debt, facing the possibility of home foreclosure, and have no idea where to turn. It by no means the purpose of this article to discourage the national conversation or in anyway to stifle the peaceful protests against the greed and bad policies of our national leaders (Wall Street and Washington) However, individual budget and debt issues can not usually be resolved by such measures, certainly not immediately. So these are not debt solutions for you.[/important]
Stop Creditor Harassment End Debt Crisis
[pullquote align=”left|center|right” textalign=”left|center|right” width=”30%”][notice]Bankruptcy provides immediate and complete debt relief[/notice][/pullquote]
All day and all night long, work, home, cell phone the creditors keep calling. You check the mail – yet another letter from a debt collector, an attorney offering to let you settle your debt for a lump sum payment threatening to file a lawsuit. Creditor harassment irritates and emotionally drains a person. The home mortgage is past due, you are behind and you start to ask yourself is it worth paying $1000 $1500 $2000+ every month for a house that is now worth much less than you paid for it maybe less than you owe on it. Debt crisis can be very frightening, sometimes over zealous credit collectors even threaten things like arrest or coming to your home to take all that you own.
If this situation describes you, then you need immediate debt relief. A bankruptcy lawyer can ease your mind and explain what options are available to you under Chapter 7 or Chapter 13 bankruptcy. The only immediate and complete debt relief option comes from filing for bankruptcy which provides every debtor the benefit of the automatic stay. Debt repayment programs do not provide you with an automatic stay, and don’t always end creditor harassment or other collection practices. Mortgage modification usually does little to help and can even push you closer to foreclosure.
Bankruptcy Options and Benefits
There are two options for individuals who file bankruptcy chapter 7 and chapter 13. While both chapters of bankruptcy provide immediate relief from debt collections and harassment the options and benefits are different. The reasons for filing chapter 7 or chapter 13 bankruptcy are also different. A bankruptcy attorney will review your debts your income, and your property – both incumbered and assets free from secured debt. You and your lawyer will also need to discuss your goals for bankruptcy and the relief from your debt.
Some questions will need to answered before your attorney for bankruptcy can properly advise you as to proceeding with either a chapter 7 or 13 filing: Do you want to save your home or keep it?; Is your home mortgage current or in arrears?; Do you want or need to keep your vehicle and its payments? Do you want preserve your ability to file chapter 7 bankruptcy in the near future? These are just a few examples of what needs to be discussed with a lawyer before deciding what chapter of bankruptcy is best for you. In order to file either chapter 7 or chapter 7 you must be able meet certain pre bankruptcy requirements like means testing and credit counseling.
Chapter 7 Bankruptcy Benefits and Options for Debt Relief
You need to have a complete and thorough discussion with a bankruptcy attorney before knowing what Chapter 7 can do for you. However, in short chapter 7 bankruptcy is also known as complete or fresh start bankruptcy. When filing chapter 7 you will be able to discharge all of your debt, with some limited exceptions. Chapter 7 discharges credit card debt, medical bills, personal loans, most cash advances, civil court judgments, and other unsecured debts. Under a chapter 7 bankruptcy you have the option to reaffirm your home mortgage and keep your home, your car, or other secured debts. Or you can choose to surrender secured property back to the creditor and have the debt completely discharged. Most of your assets, property, will be exempt from the bankruptcy Trustee – most people can keep all of their property.
Options and Benefits of filing Chapter 13
Chapter 13 bankruptcy involves repayment of some or all of your debts under a chapter 13 plan. You and your lawyer for bankruptcy will put together a plan to repay your debts in a period of up to five years to be approved by the bankruptcy court. If you are facing foreclosure, but can now make your mortgage payments and repay the arrears, chapter 13 will allow you to stop foreclosure and save your home. You can also save your car from repossession. Chapter 13 stops all interest on unsecured debt, so you can then repay only the credit card balance as of the date of bankruptcy filing. Depending upon your income and the chapter 13 means test you may be able to repay only a percentage of your unsecured debt. For example, you owe $30,000 total credit card debt and you propose a 70% chapter 13 plan you would repay $21,000 at no interest over five years (note there is a 3.5% trustee fee- $735 for this example) at a payment of approximately $362.00.
Speak to A Chattanooga Bankruptcy Attorney
Before you decide what bankruptcy or debt relief option is best for you. Before you spend another week not answering your phone for fear that it is yet another harassing collection call. Before you spend another sleepless night worrying if you are going to be foreclosed upon and kicked out of your home tomorrow. Consult with a bankruptcy attorney about the debt relief available to you and whether you qualify to file chapter 7 or chapter 13 bankruptcy. Get a free online bankruptcy evaluation from a bankruptcy attorney in Chattanooga.