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Archive for August, 2010|Monthly archive page

Do You Need Help Saving Your Home?

In Uncategorized on August 30, 2010 at 12:54 pm

If you are behind on your mortgage payments, and cannot get current, Chapter 13 bankruptcy may be a good way to save your home. In Chapter 13 bankruptcy, you pay all or a portion of your debts over time through a repayment plan. Chapter 13 bankruptcy lets you pay off a mortgage “arrearage” (late, unpaid payments) over the length of the repayment plan — usually three or five years, depending on your income and the time it will take you to meet all the plan’s requirements.

New Report Paints Mixed Picture of Consumer Debt

In Uncategorized on August 23, 2010 at 9:29 am

The Federal Reserve Bank issued a report that paints a mixed picture about consumer debt. People are no longer spending like they used to. Overall debt is dropping. That’s the good news. But people are having a difficult time getting rid of the debt they have. In the U.S, the average debt per person is $49,000. Foreclosures and delinquent payments are on the rise. Many people had to file bankruptcy to deal with their debts. Consumer bankruptcies jumped in the last quarter by 34%.

Added to high unemployment and a slowing recovery, the outlook for consumers is not encouraging. Expect expect to see even more bankruptcies for the remainder of the year.

The Home Equity Loan Trap

In Uncategorized on August 13, 2010 at 4:02 pm

The default rate on home equity loans is higher than all other types of consumer loans, according to the American Bankers Association. Home equity delinqencies exceed the defaults on auto loans, personal loans and credit cards. Lenders wrote off $30 billion in home equity loans in 2009.

Some people think they don’t have to worry about the banks collecting on these loans. I think that is a big mistake. Its true that the banks seldom foreclose on home equity loans. But the banks can still obtain a judgement and garnish wages and bank accounts. Or they can sell the account to one of many companies that buy bad debts and try to collect them.

A bankruptcy is the best way to protect yourself on these debts. In some cases, people can get rid of the home equity loans by filing a chapter 13.

Check Your Credit Report

In Uncategorized on August 6, 2010 at 12:50 pm

Once you complete your bankruptcy, you need to check your credit report. The report should state that debts were “discharged in bankruptcy.” Sometimes debts discharged in bankruptcy continue to appear as unpaid on the report. What should you do if the debt does not show it was discharged? You need to send a letter to to the credit reporting agency. The letter should dispute the accuracy of the debt. If you don’t, the inaccurate information can lower your credit score. That makes it harder to rebuild your credit standing following bankruptcy.